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1-800-743-cnbc. you want to get a sense of just how important this -- i hate to even say it anymore -- fiscal cliff is? today we got an incredible employment report from the labor department. with 146,000 new jobs. i was looking for 90,000. the unemployment rate dropping to 7.7. i thought it might be 8%. and all this despite the effects of hurricane sandy. who knows how high we could have been if it weren't for that darn hurricane? yet the market barely blinked. yet the potential layoffs if we go over the cliff make these rearview numbers seem almost irrelevant to the market. hence the mixed performance of the averages today. sure, dow gained 81 points, but the s&p barely budged, edging up 29%. and the nasdaq actually declined .38%, led once again by the slip sliding away apple, which you know i like, but how many times during a particular show can i say i like it? so with that in mind, what's the game plan for next week? first off, perhaps the most important day of the week is monday. but not for any earnings. not for any releases. that's when we process the results of the weekend talk shows, which you now have to watch as if we were instead of watching, you know, college gameday, i'm watching like some of those other news stations -- and then of course sunday morning whoever -- you don't even pay attention -- football means nothing now, right? it's all this. last week we saw the positions harden on both sides of the aisle. the market didn't like it. we will watch "meet the press" with david gregory and the others to gauge the real opportunities for a deal. is the administration out to break the pledge republicans made to never raise taxes on the rich as per major domo grover norquist, who rivals the congressional leadership control over the very thought patterns of those who signed his pledge. grover's bound to go after republicans with impure thoughts who are being seduced, i heard these words myself on "meet the press," by the democrats. well, of course i was sitting about three feet from him. i wonder, are there enough members of the gop who study higher tax pornography with that seduce stuff? maybe this weekend have the impure thoughts thing we ought to call old-time supreme court justice potter stewart. "i will know it when i see it." sometimes i feel bad for the speaker, speaker boehner. he's caught between the elected obama and the ufrn elected norquist crossfire. there's not a lot of room to maneuver in that space. tuesday we've got two big investor meetings. first there's dell world. dell world? i like kirby's fourth world. there's dell world. is the risk taken out of this one now? it's down so low. or does it even matter? deleveraged buyout as goldman hinted in its sell-buy research upgrade this week? second, there's a -- how many times can you tell us that monster drinks aren't any worse and may actually be better than a cup of joe from starbucks? let us count the ways that this analyst meeting slash lovefest, they will tell you that there's no better way to preserve your heart than to drink a taste of monster every morning. now, analysts will be plenty hopped up when they come out of this meeting because they'll be recommending this stock in high-speed fashion. next on wednesday we're going to get the results from joy global. here's the company that has the best read on chinese growth of all the companies i follow. in fact, joy global called the bottom in the slide over there by analyzing data on chinese electricity use. can't be jiggered. people think this is an original equipment business, but i've got to tell you once again we're going to hear from the straight-shooting ceo michael sutherland that maintenance is more important. maintaining it is the equivalent. i'm going to listen to what he says about india. we don't talk bindia enough. they are like coal junkies over there. it's like get me the kingsfords. after the close wednesday we hear from restoration hardware. we've all been gaga lately for housing plays but this one seems to be overlooked. i urge you to take a fresh look at the restoration ahead of the quarter because i think the comps, so to speak, ethan allen and williams-sonoma, have been very strong. i like when companies just came public because they give you the first numbers. they tend to be good ones. very rarely do you get a real stinker right out of the chute. speaking of housing plays, cramer fave pier one comes out on thursday morning. will pier one continue to deliver? did sandy hurt them? they've got a lot of stores in the northeast. probably want to know that. right? they sell a lot of seasonal merchandise. that's where i get my turkey napkin holders. you know those little things that -- they'll let us know. we've been behind pier 1 ever since alex smith turned it around and then he went out of the niners and they pulled -- no, it's a different alex smith. this is a british one. i bet this time will be no different. i think pier 1 delivers. then telco equipment maker ciena reports thursday morning. spending by the big firms, att, verizon, sprint, it has been inordinately geared toward cell phone towers and not only optical and software build-up. the starting we've seen in this group which includes juniper and even cisco tells us we should be worried about little cree yeba. even a fellow optical traveler had good things to report this week. stay away. also we list a number of important arnlts' meetings on thursday. remember we told you to by the starbucks, that was a really good trade. okay. we've got cvs caremark. i think that's going to be a very interesting session. cvs. right? you use them. sorry, i didn't mean to cross out cvs. i meant to highlight cvs. phillips 66. get your kicks from that analyst meeting. and united technologies. cvs is the cheapest and best drugstore play p i would be willing to buying ahead of the meeting, particularly if you have a little fiscal cliff panic before thursday. which person's going to come on wednesday and create the buying opportunity for cvs? phillips 66 reminds uz house smart it was to break up the old conoco phillips and perhaps put some focus on how hess could be next. united technologies will give us aw fiscal cliff update and a sense of how aerospace is doing now that goodrich, a premium supplier to 'o'space, is part of the family. on friday scotts miracle grow. endless excuse making for missed quarters. can they explain the poor execution? i'll listen, but frankly i doubt it. also on friday we get november industrial production and capacity utilization numbers. did november really matter or was it all sandy? i think prices were stagnant. but i want to try to figure out whether the new boom in cars and homes could impact industrial production and capacity utilization no matter what. i'm trying to understand the unemployment number today. after these numbers that we get now, after those we're going to be officially on recession watch going forward, meaning that we expect all the good numbers to kind of let's say peter out because of the fiscal cliff and what it's doing for hiring, or the lack of it. and speaking of the fiscal cliff, let me say to washington, no vacation without legislation. we will be virtually monitoring airports to see which legislators are leaving town now that the vacation is supposed to begin. you know what? if we don't have a deal by this vacation, or a pledge not to go away, then the odds go to -- down to 50-50 that we'll get one before the end of the year. and then we may only get one when people look at their take-home play and have a collective bout of nausea from a recognition that there was a fiscal cliff all along and we were just pushed over it. that's how much your paycheck's going to shrink. here's the bottom line. let's hope for the best that our politicians move in the right direction. something we can see as early as sunday morning when they appear on the major political talk shows like "meet the press." but we'll be preparing for the worst. >> the house of pain! >> that our lawmakers go home for the holidays, meaning we will likely go over the cliff and nothing will be done about it until after taxpayers actually feel the real pain. let's go to r.w. in nevada, please. r.w. >> caller: jim, a big fan of yours. thank you for helping people like me. >> i appreciate that. that's why i do the show. how can i help? >> caller: i've had dole stock since its september high. and now that david delorenzo is leaving and selling his packaged goods and asian fresh produce to japan, what's your take on the stock? >> yeah, i saw the change in management. and i've got to tell you, i continue to think it's a good story to hold. i know that people feel that somehow it's going to be magic. @jimcramer on twitter i immediately saw a ton of things about isn't this it, now that murdoch's returning to chairman and ceo? no. murdoch's a great businessman who's getting up in years. i think you own the stock because the business model's good. and i like fresh fruit. let's go to bob in california, please, bob. >> caller: boo-yah, jim. >> boo-yah, bob. >> caller: what's wrong with fan in it's down again today after their decent earnings report. is there a possible the new ceo's performance causing a wait and see attitude in spite a spectacular performance in sales and profits? unusual in many retail stocks to see many new store openings and healthy profits going on simultaneously. fran seems to be able to do it. >> i know. you know what? here's what we're going to do with fran, because i read the numbers, like you, i saw -- because i wasn't on the conference call. but i read the numbers. i said better than expected top line, better than expected earnings. how much will the stock be up? and the stock was down. what that means is i owe you an explanation and i will come up with one for fran next week. hope for the best. but when you're dealing with washish, prepare for the worst. pay close attention to the talk shows on sunday and the roundup monday. only washington would listen. here's my call to you. no vacation without legislation. "mad money" will be right back. >> announcer: coming up, the wow factor. innovation. it's what drives our economy forward. and tonight cramer's got his eyes on a solution to a life-altering problem. whether you're stranded after a storm like sandy or one of the billion people in the world who don't have electricity, this device lets you create your own power. don't move. you've got to see this. and later, data and dollars. as companies head to the cloud, the business of big data becomes all the more crucial. cramer's found one stock at the center of finance and figures that could be attracting some potential suitors. the takeover talk is just ahead. plus -- >> we're going to do some work on this. >> announcer: you sent cramer back to the books. now he's got the answers you need. plus, jim responds to your tweets @jimcramer #madtweets. and your e-mails just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] this december, remember -- ♪ you can stay in and like something... ♪ [ car alarm deactivates ] ♪ ...or you can get out there with your family and actually like something. ♪ the lexus december to remember sales event is on, offering some of our best values of the year. this is the pursuit of perfection. offering some of our best values of the year. when you take a closer look... ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. here on "mad money" we ordinarily only talk about publicly traded companies. after all, this is a show that's all about helping to try to make you money in the stock market. but lately there's a lot of innovation happening at private companies, companies that are doing really cool things. and you know what i? don't want you to be behind the curve anymore on a big idea just because there isn't yet a way to trade it. that's why i want to introduce you to biolite. it's a private company with an genious product. biolite makes a little portable wood-burning camp stove that not only cooks your food in a way that's clean and safe as petroleum, petroleum-based fuels, but i think this is huge. the energy from the stove can also be used to charge your cell phone or other electronic devices. can you imagine the millions of people in the northeast that were without power and gasoline in hurricane sandy had these camp stoves handy? the blackout would have been a lot more pleasant and i wouldn't have had to worry every minute that my phone would die, which was really my chief -- when i was trying to do this phone downtown. my phone kept dying. plus of course there are billions of people in the developing world who don't have access to power but they do have access to cell phones that need charging and they cook using wood-burning fires every day. which is why biolite's also testing a large stove for homes that produce electricity. this is an amazing invention and i think it could change the lives of billions of people. which is why i'm thrilled to have biolight's ceo and its chairman here with us tonight to talk about the revolutionary products. mr. sear, mr. levy, welcome to "mad money." >> thanks very much. >> good to see you. >> good to sigh. >> okay, guys, you're from brooklyn. you're doing this device. this device could change the world. if you were a publicly traded company we'd have to talk about how's the quarter -- no. i just want you to walk me through how you came up with it, what it does, and what it did in hurricane sandy because that was an amazing story. >> great. sure. absolutely. so biolite stoves as you mentioned are wood-burning stoves that generate electricity from the heat of the fire. this yellow part here is an electrical generator. it's kind of like a solar panel for heat instead of light. it plugs into the stove. you set it up. you dumb a bunch of twigs in it. and you light them on fire. and when the fire is hot, you can plug your phone in. >> right. i'm going to plug my phone in now. because my phone needs charging. this is a cool thing. there we go. that's 75. it will be at 100 very shortly. >> here we go. if we want to, we can put an l.e.d. light in here and you can see that we're generating light. so in a lot of places this is what people need. they need small amounts of electricity to do really practical things. >> right. so sandy, i had -- out of gasoline. >> right. >> no grid is working. people needed this, right? >> not only that, but right near our office in dunbar we had water that was pouring through. the national guard came through to help people out. we made coffee for them, tea for them. we charged all their cell phones. and we did this all over new york. we did it downtown. we did it in washington square park. all over. and then we started distributing the stoves to people in the rockaways. so they could do this at home. >> okay. great service. now, everybody on our crew who has seen this immediately wants to buy one. because they all want to put it, set in in their trunk so if you go camping you can be able to charge your phone and your ipad. are they available yet? >> they are available. they're for sale through our website, biolitestove.com. we have sold tens of thousands of them this year. and then next we're we'll be in wholesale locations in the u.s. and about ten countries internationally. >> r.e.i. and eastern mountain sports, that kind of thing? >> yeah. companies like that. >> we've shipped these to now 70 countries around the world. and if you go onto our site or go on to youtube you'll see all the videos people are making about how they're using them in every language you can imagine. >> let's talk emerging markets. those people -- i talked to somebody who came back from cambodia. they said it's the strangest place in the world, everybody uses wood-burning fireplaces, it's the most dangerous thing, they're polluting the sky, but that's all they have. and they also have cell phones. but they're nowhere able to charge them. >> i was in kenya not long ago and i was in a rural village, people living in traditional garb. i said how many of you have cell phones? every one of them have it. i said where's the electricity? 15 kilometers away. and when they walk there they pay 25 cents to get their cell phone charged. >> so this would be the answer. >> right. not only that, but also it's a much cleaner burn. you'll see with these fires that there's no smoke coming out of it. most people in the developing world are cooking indoors and they're generating tremendous amount of fumes. they're actually killing three times as many people as who die from malaria, and we get rid of 95% of the smoke. so it's much cleaner. we use less wood. and we can give them electricity. >> so i spent a lot of time thinking about apple. everybody does. apple down another 14, up 50. people worry about apple because is it doesn't have an omg factor. that's the word. when you show this around, do not people just -- jaws drop, right? >> well, it's amazing. especially our customers are our best advertisers, right? they're the people who are posting hundreds of youtube videos. but it's the psalm thing in emerging markets. so we go to do a demonstration in india, and really cooking is traditionally a woman's task in those communities and we have the men pushing to the front and center of the circle because they want to charge their cell phones. so it creates this really great dynamic where at one time it's a health intervention that's hopefully going to save a couple million lives every year, but the draw is for the same commercial reasons that we would want to have them here. >> now, i would want one of these in my trunk, right? >> right. >> little plastic bag. if i ever got in a jam at the side of the road, i'd stay warm and charge my phone. >> and not only that, it's on-demand energy. we think of it as energy everywhere. >> on demand energy. >> because here we are. it's a rainy day. if we had a solar panel, what would happen? it's not working. but we're generating electricity and you're charging your phone right now. >> so you have the patents. what do you have? what do you own about this? >> sure. absolutely. so we do have patents in the u.s. and in asia, africa, and europe. but in addition to that we have an incredible team of engineers and scientists who are not only developing cook stoves but a whole range of energy technologies. and so where we really see our role as a company is in providing personal scale energy access that's affordable and safe and reliable. >> talk about affordability. how much is this? >> these stoves are $130. >> okay. now, you are in brooklyn, new york. but you don't make these here, right? >> we don't. >> you have a factory -- >> we manufacture -- we manufacture in asia. and then -- but it's all based on the designs and the engineering of the team right here in new york. >> now, i've looked at this in the videos. how long does it take me to make a pot of tea? >> four minutes. >> it takes us four minutes to boil a liter of water. that's it. >> four minutes? >> four minutes. >> well, guys, look, it is omg. i'm thrilled you that came here. this is jonathan cedar. okay? and john levy. biolite's chairman and ceo. thank you so much, gentlemen. >> thank you. >> stick with "mad money." >> announcer: coming up, data and dollars. as companies head to the cloud, the business of big data becomes all the more crucial. cramer's found one stock at the center of finance and figures that could be attracting some potential suitors. the takeover talk is just ahead. and we can save you 10% on ground shipping over the ups store. look this isn't my first christmas. these deals all seem great at the time... but later... 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[ male announcer ] break from the holiday stress. save on ground shipping at fedex office. just because we're stuck in a real tough environment right now with that darn fiscal cliff deadline looming, three weeks away, our political leaders getting absolutely nowhere -- >> buy buy buy! >> sell sell sell! >> it doesn't mean we stop searching for opportunities to make money. even in the most dismal markets there are always stocks that have the ability to go higher. just got to find them. takes a lot of work. one i've been doing a lot of work on, it's called dst systems. dog sam tom. now, dst is not a great business. hmm. but i think it could be a terrific stock. the reason? i see number signs suggesting that dst could be preparing itself for a sale. and if not, it sure as heck should be. but even if dst doesn't get bought out, it has a fabulous story. it's a tale that we've repeated over and over again. it's one that's made big money in a number of stocks for us. see, dst, which is just a terrible name for a company, but that's what they call themselves, is a company where the whole is currently worth a lot less than the parts. now, in recent months dst has started to get aggressive about selling off those parts in order to unlock this hidden value. that's one of the reasons why i think it could be preparing itself for a transaction, and i think they could keep selling all these spare parts until only the core business remains. do i have you intrigued? now we can talk about what this company is. let me explain. dst systems is kind of like a cats and dogs company. no insult to petsmart, which is a real cats and dog company. dst provides in the core business informationg and software services. mainly to financial firms like mutual funds and brokers. and it also has a smaller division which does billing statement printing and mailing services for all sorts of businesses. but especially telecom and health care companies. on the financial side, broker-dealers outsource their mutual fund accounting services to dst, which is by far the largest player in this. they've got 50% market share. the company provides transfer agency services to more than 181 million shareholder accounts. however, this financial business, it's been in decline for several years now. it was down 12% in 2011. expected to shrink by another 9% thisser. though this division is expected to stabilize in 2013, hence why i'm willing to do this piece. and even though dst has had a tough couple of years this side of things still throws off a ton of cash. but the real reason i like dst is because the company has a substantial portfolio of investments that really have nothing to do with that business. they don't get nearly enough credit for these holdings. why should they? they have nothing to do with the business. dst has a large stake in state street, the custodial bank. they have significant real estate holdings. major investments in private equity funds. and some direct investments in private companies. when you add up all these disparate assets on top of the core business you get a sum of the parts valation pour dst that's worth a heck of a lot more than the current $62 and change share price. credit suisse says the sum of the parts is worth $75 or a 21% increase over where the stock is now. stern a.g. just upgraded the stock today. again, i would not recommend stocks unless the fundamentals are good before i ever say they can be taken over. stern a.g.'s got a very conservative analysis. it pegs some of the parts at $71 a share. that's still 14% more than the current price. so it's kind of like a floor. all right? because know that there's value to the assets. yes, there's real value that can be unlocked. i strongly believe that it will be unlocked. and here's why. dst has already started selling off some of its non-core assets. they sold its stake in the computer share last quarter. they just unloaded the position in euronet worldwide for 45 million last week. these are some of the assets when i was first working on this i thought i can't get that much for it. this may be the first steps to taking dst private or maybe selling it to an acquirer. you sell off the non-core assets, sell off the printing and mailing business, which as an industry is way too competitive. and you're left with a pure play financial services company that a private equity buyer might find very attractive. or a financial services acquirer might be intrigued by. given how little growth there is right now in financial services. not only that but i think dst could be a motivated seller, meaning the people running this conditioner seem like they're willing to sell, even eager to sell this whole darn thing. long-time ceo tom mcdonald, guy that's worked at this company for more than 40 years, he stepped down in september. he's 65 years old. but he's staying on as chairman of the board. and he owns 1.7% of the company. meanwhile, there's another board member, george aguires, he's 72 and he owns 22% of the expect to me these guys seem like they might want to cash out. possibly before the end of the year so they can avoid paying higher capital gains tax rates which we will see if we go over the cliff or the president gets his way. a lot of experience in the financial services side of things. he's exactly the guy you bring in if you want to sell off dst's cats and dogs assets in order to turn into a pure play in the financial industry. third i bet the cash flow that's dst's main business as well as all the easily monetized non-core assets would look really attractive to a private equity firm. and even if dst systems doesn't catch a bid this company has gradually been taking itself private for years. do you know this company has bought back an astounding 60% of its outstanding shares in the last decade. 40% just since 2006. remember i tell you most buybacks are illusory, they don't really matter? not this one. here's the bottom line. dst's fundamentals are stabilizing and the company has given a number of signs that it could be preparing itself for a -- >> sell sell sell! >> if dst catches a bid, i think this stock could easily go to 75. talk about a quick 21% gain. and even if it doesn't, the company's already set itself on a path of unlocking its hidden value, something that should drive the stock higher even if the company stays public. as usual, i would not recommend a stock on the basis of its takeover value. it's got to be worth something on its earnings on its own. in this case dst's finally ready to meet the numbers the exact same time that it's worth much more in the private market than it is in the public one. i need to start with celeste in connecticut. celeste. >> caller: hi, jim. from connecticut. first-time caller. i'm excited. >> thank you. >> caller: back in january you said you like catamaran, ctrx, when it was under its old name, xsa, up 72%. thank you so much. i heard it just signed with target. so how does that look? is it a hold or a sell? >> no, i don't think it's -- you own it. i know it's up a lot. so i understand it is hard to taking capital gains if capital gains go up. but i like the pharmacy benefits business. i also like cvs, reports next week. i want you to stay in this. i think it's a really, really good company. i'm glad that you bought it on our recommendation. let's go to sylvia in florida. sylvia. >> caller: hi, jim. it's so great to hear your voice. i'm a regular. >> thank you. >> caller: and i have a question for you about ibm. i've owned it since the beginning of the year and it's gone down significantly. although today it's gone up just a bit. and i understand that the company is changing what they give to the employees for their 401(k) interest. is that going to be a negative for the company? >> no. sylvia, we're fine. ibm, we started -- we owned it for a long time for actionalertsplus.com, my charitable trust, sold it after it had a big run. now buying again. steph ewing, co-director with me, we both think this is one of the cheapest stocks out there. don't forget, warren buffett agrees with us. you know i never recommend stocks on this show on takeover rumors, but i think there's more to dst. it's unlocking its value, even if it doesn't catch a bid. i think it is work a lot. dog sam tom. dst. don't move. "lightning round" is next. >> announcer: coming up -- >> we're going to do some work on this. >> announcer: you sent cramer back to the books. now he's got the answers you need. plus, jim responds to your tweets @jimcramer #madtweets. and your e-mails. just ahead. welcome to chevy's year-end event. so, the 5.3-liter v8 silverado can tow up to 9,600 pounds? 315 horsepower. what's that in reindeer-power? [ laughs ] [ pencil scratches ] [ male announcer ] chevy's giving more. get the best offer of the year -- 0% apr financing for 60 months plus $1,000 holiday bonus cash. plus trade up for an additional $1,000 trade-in allowance. hurry. bonus cash ends january 2nd. customer erin swenson bought so, i'm happy. today. sales go up... i'm happy. it went out today... i'm happy. what if she's not home? (together) she won't be happy. use ups! she can get a text alert, reroute... even reschedule her package. it's ups my choice. are you happy? i'm happy. i'm happy. i'm happy. i'm happy. i'm happy. happy. happy. happy. happy. (together) happy. i love logistics. it is time. it's time for the "lightning round." say the name of the stock, i tell you whether to buy buy buy or sell sell sell. play until you hear this sound [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." start with phillip in mississippi. >> caller: boo-yah from biloxi, the gambling capital of the south. >> agreed. >> caller: here is the stock. pdce. pdc energy. >> good oil and gas company. marcellus shale operations. utica where we went to with chesapeake. >> buy buy buy! >> let's go to randy in my home state of new jersey. randy. >> caller: hi, jim. boo-yah from the u.s. airways in philly. >> good to have you on the show. what's up? >> caller: i want to know what you think about finesar. >> people thought the quarter was good which is why it's had the great rounding pattern. starting to go up. in general, i don't like that group that much because i don't like the companies who are their customers. they're not paying up. let's go to ali in pennsylvania. >> caller: ba-ba-ba-boo-yah jim cramer from your home town philly. >> get out of town, man. we've got a big game, going to beat the bucs. what's up? >> caller: no one wants to talk this but unh, united health group. >> i'll see unh and go with aetna. could close the coventry deal. let's go to tom in new jersey. tom. >> caller: big jim, how are you tonight? >> couldn't be better, thank you. what about you? >> caller: great. a big montclair state university boo-yah to you. >> how about the high school championship go to the championship tomorrow. coach liberato at the meadowlands 4:00 be there, boo-yah. >> caller: hovnanian, long? >> no. not going to buy hovnanian. not when kohl brothers htoll br unbelievable quarter and can't lift. rob in new jersey. >> caller: hi, jim. a sexy boo-yah to you from new york city. i love you and everything that you do on your show, and i subscribe to everything you have. >> yes! thank you! >> caller: you're welcome. a few months ago you mentioned merrimack pharmaceutical, mrck, as a good biotech stock. i'm in at age 50. what is your opinion -- >> i think you have to buy more. i feel very good about that. remember, these specs don't necessarily pan out, but i do believe in merrimack, and i would urge you to stick with it. i'm going to rick in kentucky. rick. >> caller: rick in louisville, kentucky, home of the kentucky derby. race horse boo-yah. >> sweet. >> caller: my question is a retail company opened up location close to me. i think it's the best location in the city called cabela's. and to me that store is like a disneyland for grown-ups. >> i totally agree with you. unfortunately, they've had a spate of warm weather weather. it's a cold weather stock. as they told you in the conference call. but i do think cabela's is terrific. it may not explode yet but i think cabela is very good. and i totally agree with you. there's not much as fun as going to a cabela's. now we're going to go to mark in pennsylvania. mark! >> caller: hey, cramer. second-time caller, mark from wayne. >> oh, wayne. love it. what's up? >> caller: how about that -- >> i think that that has now surprised analee. remember with the fiscal cliff it is going to be difficult to figure out what these stocks are going to do from here. and that, ladies and gentlemen, is the conclusion of the lightning round. >> caller: the lr . >> announcer: the "lightning round" is sponsored by ameritrade. ♪ tweedly tweedly dee ♪ >> cisco, broadcom, and santand santander. >> i wanted to leave "squawk on the street" because they offered me three mani pedis in a half day but i didn't know what it is so i stayed and did the job. that's a stock joke. >> i think we're probably okay. i don't want the hollywood censors to crack down on me. >> whoo! >> and now jim cramer explains twitter. >> @jimcramer on twitter, 600,000 followers. >> thanks for tuning in to this week's edition of "jim cramer explains twitter." >> let's go to art, also from my home state of pennsylvania. art. >> caller: i'm a recovering eagles fan now living in steelers country. i told you last week about 360 on the "lightning round." >> yeah. sorry. i did have to momentarily wipe the tear from my eye. ♪ whatever's going on with the eagles is just -- well, they went off their own sports cliff. let's just put it that way. we're going to hear from one of my absolute favorite companies. that company is starbucks. when the company has its biannual, annual analyst day. can't have a biannual annual. let me start again. [ bleep ] i'm still paying $5.07 for my triple cappuccino each morning from the stock exchange. want one? just ask for the cramer. ♪ >> there's an awful lot of coffee in brazil. >> this deal's become a real hot button with the short selling community. smells good to me. it's the minlial semi-biannual annual -- now, that could be a good week that was. whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade. [ male announcer ] this december, remember -- what starts with adding a friend... ♪ ♪ ...could end with adding a close friend. ♪ the lexus december to remember sales event is on, offering some of our best values of the year. this is the pursuit of perfection. that makes watching tv even better. if your tv were a hot dog, zeebox would be some sort of fancy, french mustard. just like adding fancy mustard to a hotdog makes you go "woah!," zeebox adds video, info, and playalongs to spice up your favorite shows. download zeebox free and say "woah" every time you watch tv. before we answer your tweets it's time to go over some homework we're stockpiling here. on the last day of november kelly in pennsylvania wanted to know about micro systems, symbol mcrs. i sawed i'd get back to her because i was surprised the stock was doing so poorly. the leading developer of enterprise applications serving hotels, restaurants, retailers. the company provides complete information management solutions by simplified the cash register linking it back to the office. leading it back to the back office i should say. at first glance micro seems rather cheap, 15 times next year's earnings with a 15% growth rate. hold it. given the fact that the company has $7 in cash, it's not cheap. it's extremely cheap. plus we like the new ceo's strong computer services background. now, the business seems to stabilize if the stock is down 11% for the year, which gives you a nice entry point. buy buy buy! now, if you buy this one, do it with your eyes peeled for lower prices if case we go over the fiscal cliff. i almost need to do that a boilerplate warning for everything. fiscal cliff, the stock's he going to go lower because all stocks are going to go lower. but you can pick at micro systems for weakness. kelly in pennsylvania, this is the best idea a viewer has sent in in a very long time. another great one. raymond in florida wanted to know about xylen. the company, symbol xyl, not to be confused with the xylem with us a key part of the anatomy of plants which you may have learned when you were smoking that a.p. biology exam. now, raymond discovered that xylem's equipment was involved in pumping out the flooded brooklyn battery tunnel. 11 feet of water in that thing after superstorm sandy. i postponed giving him an answer because i hadn't looked at this company since it was spun out from itt last year. i always knew they had this great plumbing pipe division. xylem is an exciting pure play water company with products involved in the transportation, treatment of water. is there a way to play water? i'm using xylem from now on. this one sells water and waite water pumps along with filtration, disinfection, and biological treatment equipment primarily for utilities. stock's only up 3% for the year. but there's a reason. there's always a reason when the good ones aren't working. right? always a reason. and the answer is europe accounted for 37% of sales. >> the house of pain. >> yeah. that's last year. so we're concerned the weakness over there will dampen any positive effects from sandy. the president's asking for a huge ton of money now for sandy. if you want to own xylem i think you have to wait for a pullback maybe down to 24. that's a couple bucks below where it is now. but i am intrigued by this one. intrigued for certain. another great idea from the people who watch this show. and call it. last night kenny in illinois, he asked me what i thought about private bancorp. pvtp. a regional bank that operates in the u.s., also some exposure to atlanta and colorado. it's up 40%. a bank stock. thanks to improving credit quality and an exit from the bank's tarp overhang via an equity raise. what should we do with private bancorp before the fiscal cliff? i think the positives are clearly baked into the stock right here. this bank could do really well in an environment of rising interest rates, but the fed has made it very clear that rates will stay low until at least 2015. so you know what? let's take a pass on that one. let's do some tweets. thank you, viewers, for making it so that i have more than 600,000 followers. thank you very much. happened just the other day. let's take our first tweet from @nfalex who says what's your take on -- it's the old part of kraft. the stock price has been trading down sinced the old spinoff. it drives me crazy when stephanie link and i buy for the charitable trust. the charitable trust follows stocks. you can follow along with actionalertsplus.com. and they don't immediately pop. this is the p.m. of philip morris when altria split. it's the fast-growing snacks business overseas, it's going to be great. now here's the problem. it acts terribly. so wa you can say is therefore it's bad or you can do the homework like we did, recognize we've got a terrific restructuring, recognize it's going to have great growth, and you buy it and be a little patient. it is not going to run to 30 anytime soon. but p.m. didn't run to the 90s immediately either. and altria was stuck at 50 or 60 before it doubled. now, our second tweet comes from @tunderscore nathan 95. he says is it time to ring the register on j&j or keep holding? same question with epd, enterprise product partner partners, #boo-yah. when i see these it drives me crazy. why would you ring the register? did something happen? did the thesis go bad? are there fact changes? j&j is a company i think can split up and immediately go to 75, 80. and i think it will. and i've got to tell you something. there's no way you should sell epd. that's got one of the best, safest yields, and -- >> buy buy buy! >> -- i'd be a buyer. "mad money's" back after the break. >> announcer: keep up with cramer all day long. follow @jimcramer on twitter and tweet your questions. #madtweets. ♪ ♪ mom? dad? guys? [ engine turns over ] [ engine revs ] ♪ he'll be fine. [ male announcer ] more people are leaving bmw, mercedes and lexus for audi than ever before. take advantage of exceptional values during the season of audi event. take advantage of exceptional values when we got married. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule. who, who might i ask is really doing well in retail? i've heard the latest out of macy's, walmart, kohl's, and last time on "mad money" acena. don't laugh. courtesy of acquisitions. we know things have gotten real tough, like no thanks. my feeling is with the fiscal cliff looming to the point where it's now mainstream that your take-home pay is going to be reduced by a shocking amount in one month if there's no deal. things ain't getting better. which is why this lulu lemmon number yesterday was astounding. it's so astounding. we have to go through the usual rigamarole to see it, though. first they had a spectacular 18% comparable same-store sales gain. the stores last year, they beat them by 18%. the best i've seen from any company that has hit my eyes in the last three months. by the way, that's coupled with some terrific gross margins. it looked like it was enough to send the stock to the low 70s instantly from the high 60s before it reported. but the downbeat high single-digit comp store projections, mentioned later in the earnings release, stopped the elf in its tracks, reversed it, and the stock dropped to the mid 60s almost instantly, again, all before the market was open. and there it lay until the conference call began. on that call you realized very quickly five things about lulu that no other company has. first the runway here is simple ji gigantic. they have about 200 stores in the u.s. they could triple that if they want, maybe even more. secondly, in the men's business, it was an afterthought. now coming on strong even though it's only 12% of the total revenues. the international ram subpoena just beginning. frankly you think it's going to be much bigger outside the united states. lulu itself a real proselytizer for the activities for which its clothes are meant. yoga. they have a great anecdote about what 457d in columbus, ohio after lulu lemon opened. a corncombia of yoga studios opened afterward. it doesn't seem like a fad. it is remarkable what they teach you at a lulu lemmon. and fifth they have clean inventory. that means even if it appeals to those who are wealthy, the proos points are ridiculous, i think, and they wouldn't have to take a lot of markdowns because they don't have a lot of inventory. lulu is in an enhave iable position that is shared by chipotle and whole foods. it's growing so much faster than anyone else that it gets a multiple that's tough to justify. 40 times next year's earnings. 4-0. that's because they're deciding it might be inexpensive on a price teernings multiple in the out years. looks expensive now but in 2015 it will be cheap. eventually that game ends. it did for whole foods when the large number made it possible for them to keep blowing away the estimates. and tended for chipotle with the rapid deceleration of same-store sales. i'm telling you in the true fashion of my good friend herb greenberg, both could happen to lulu. 14% of its shares have been sold short. shoerz you how the bears keep betting the momentum will stall and the stock will plummet. but that bet was unrequited this quarter because luol lou lemon even at $10 billion has more going for it in a secular fashion, the strength of the health movement with which it's heavily identified, and the technology of the clothes. technology. which is regarded as unique and more innovative than any other clothier out there, including technology-laden under armour. the ardor continues, the shorts get confounded ander, once again the quick draw types who don't bother to wait until the conference call get smoked to smithereens. it's not too late to buy lululemon. stick with cramer. >> announcer: it's a brutal full-contact sport. >> from the time the whistle blows -- >> traders bracing for what could turn out to be a wild session. >> -- to the last play of the game. >> markets absolutely getting hammered today. >> i know it's not easy, but i promise to keep fighting for you. >> announcer: jim cramer. leveling the playing field for all. >> the road is a tough one. but the payoff can be your greatest win of all. >> join "mad money's" training camp weeknights. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. sven gets great rewards for his small business! how does this thing work? oh, i like it! [ garth ] sven's small business earns 2% cash back on every purchase, every day! woo-hoo!!! so that's ten security gators, right? put them on my spark card! why settle for less? testing hot tar... great businesses deserve great rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? here's your invoice.
New-yorkUnited-statesJapanAustraliaNevadaMeadowlandsPennsylvaniaBrooklynBrazilKentuckyTurkeyFlorida my job is not just to entertain you but i'm trying to educate and teach you. call me. 1-800-743-cnbc. you want to get a sense of just how important this -- i hate to even say it anymore -- fiscal cliff is? today we got an incredible employment report from the labor department. with 146,000 new jobs. i was looking for 90,000. the unemployment rate dropping to 7.7. i thought it might be 8%. and all this despite the effects of hurricane sandy. who knows how high we could have been if it weren't for that darn hurricane? yet the market barely blinked. yet the potential layoffs if we go over the cliff make these rearview numbers seem almost irrelevant to the market. hence the mixed performance of the averages today. sure, dow gained 81 points, but the s&p barely budged, edging up 29%. and the nasdaq actually declined .38%, led once again by the slip sliding away apple, which you know i like, but how many times during a particular show can i say i like it? so with that in mind, what's the game plan for next week? first off, perhaps the most important day of the week is monday. but not for any earnings. not for any releases. that's when we process the results of the weekend talk shows, which you now have to watch as if we were instead of watching, you know, college gameday, i'm watching like some of those other news stations -- and then of course sunday morning whoever -- you don't even pay attention -- football means nothing now, right? it's all this. last week we saw the positions harden on both sides of the aisle. the market didn't like it. we will watch "meet the press" with david gregory and the others to gauge the real opportunities for a deal. is the administration out to break the pledge republicans made to never raise taxes on the rich as per major domo grover norquist, who rivals the congressional leadership control over the very thought patterns of those who signed his pledge. grover's bound to go after republicans with impure thoughts who are being seduced, i heard these words myself on "meet the press," by the democrats. well, of course i was sitting about three feet from him. i wonder, are there enough members of the gop who study higher tax pornography with that seduce stuff? maybe this weekend have the impure thoughts thing we ought to call old-time supreme court justice potter stewart. "i will know it when i see it." sometimes i feel bad for the speaker, speaker boehner. he's caught between the elected obama and the unelected norquist crossfire. there's not a lot of room to maneuver in that space. tuesday we've got two big investor meetings. first there's dell world. dell world? i like kirby's fourth world. there's dell world. is the risk taken out of this one now? it's down so low. or does it even matter? deleveraged buyout as goldman hinted in its sell-buy research upgrade this week? second, there's a -- how many times can you tell us that monster drinks aren't any worse and may actually be better than a cup of joe from starbucks? let us count the ways that this analyst meeting slash lovefest, they will tell you that there's no better way to preserve your heart than to drink a taste of monster every morning. now, analysts will be plenty hopped up when they come out of this meeting because they'll be recommending this stock in high-speed fashion. next on wednesday we're going to get the results from joy global. here's the company that has the best read on chinese growth of all the companies i follow. in fact, joy global called the bottom in the slide over there by analyzing data on chinese electricity use. can't be jiggered. people think this is an original equipment business, but i've got to tell you once again we're going to hear from the straight-shooting ceo michael sutherland that maintenance is more important. maintaining it is the equivalent. i'm going to listen to what he says about india. we don't talk about india enough. they are like coal junkies over there. it's like get me the kingsfords. after the close wednesday we hear from restoration hardware. we've all been gaga lately for housing plays but this one seems to be overlooked. i urge you to take a fresh look at the restoration ahead of the quarter because i think the comps, so to speak, ethan allen and williams-sonoma, have been very strong. i like when companies just came public because they give you the first numbers. they tend to be good ones. very rarely do you get a real stinker right out of the chute. speaking of housing plays, cramer fave pier 1 comes out on thursday morning. will pier one continue to deliver? did sandy hurt them? they've got a lot of stores in the northeast. probably want to know that. right? they sell a lot of seasonal merchandise. that's where i get my turkey napkin holders. you know those little things that -- they'll let us know. we've been behind pier 1 ever since alex smith turned it around and then he went out of the niners and they pulled -- no, it's a different alex smith. this is a british one. i bet this time will be no different. i think pier 1 delivers. then telco equipment maker ciena reports thursday morning. spending by the big firms, att, verizon, sprint, it has been inordinately geared toward cell phone towers and not only optical and software build-up. the starting we've seen in this group which includes juniper and even cisco tells us we should be worried about little ciena. even a fellow optical traveler had good things to report this week. stay away. also we list a number of important analysts' meetings on thursday. remember we told you to by the starbucks, that was a really good trade. okay. we've got cvs caremark. i think that's going to be a very interesting session. cvs. right? you use them. sorry, i didn't mean to cross out cvs. i meant to highlight cvs. phillips 66. get your kicks from that analyst meeting. and united technologies. cvs is the cheapest and best drugstore play p i would be willing to buying ahead of the meeting, particularly if you have a little fiscal cliff panic before thursday. which person's going to come on wednesday and create the buying opportunity for cvs? phillips 66 reminds us how smart it was to break up the old conoco phillips and perhaps put some focus on how hess could be next. united technologies will give us aw fiscal cliff update and a sense of how aerospace is doing now that goodrich, a premium supplier to aerospace, is part of the family. on friday scotts miracle grow. endless excuse making for missed quarters. can they explain the poor execution? i'll listen, but frankly i doubt it. also on friday we get november industrial production and capacity utilization numbers. did november really matter or was it all sandy? i think prices were stagnant. but i want to try to figure out whether the new boom in cars and homes could impact industrial production and capacity utilization no matter what. i'm trying to understand the unemployment number today. after these numbers that we get now, after those we're going to be officially on recession watch going forward, meaning that we expect all the good numbers to kind of let's say peter out because of the fiscal cliff and what it's doing for hiring, or the lack of it. and speaking of the fiscal cliff, let me say to washington, no vacation without legislation. we will be virtually monitoring airports to see which legislators are leaving town now that the vacation is supposed to begin. you know what? if we don't have a deal by this vacation, or a pledge not to go away, then the odds go to -- down to 50-50 that we'll get one before the end of the year. and then we may only get one when people look at their take-home play and have a collective bout of nausea from a recognition that there was a fiscal cliff all along and we were just pushed over it. that's how much your paycheck's going to shrink. here's the bottom line. let's hope for the best that our politicians move in the right direction. something we can see as early as sunday morning when they appear on the major political talk shows like "meet the press." but we'll be preparing for the worst. >> the house of pain! >> that our lawmakers go home for the holidays, meaning we will likely go over the cliff and nothing will be done about it until after taxpayers actually feel the real pain. let's go to r.w. in nevada, please. r.w. >> caller: jim, a big fan of yours. thank you for helping people like me. >> i appreciate that. that's why i do the show. how can i help? >> caller: i've had dole stock since its september high. and now that david delorenzo is leaving and selling his packaged goods and asian fresh produce to japan, what's your take on the stock? >> yeah, i saw the change in management. and i've got to tell you, i continue to think it's a good story to hold. i know that people feel that somehow it's going to be magic. @jimcramer on twitter i immediately saw a ton of things about isn't this it, now that murdoch's returning to chairman and ceo? no. murdoch's a great businessman who's getting up in years. i think you own the stock because the business model's good. and i like fresh fruit. let's go to bob in california, please, bob. >> caller: boo-yah, jim. >> boo-yah, bob. >> caller: what's wrong with fan in it's down again today after their decent earnings report. is there a possible the new ceo's performance causing a wait and see attitude in spite a spectacular performance in sales and profits? unusual in many retail stocks to see many new store openings and healthy profits going on simultaneously. fran seems to be able to do it. >> i know. you know what? here's what we're going to do with fran, because i read the numbers, like you, i saw -- because i wasn't on the conference call. but i read the numbers. i said better than expected top line, better than expected earnings. how much will the stock be up? and the stock was down. what that means is i owe you an explanation and i will come up with one for fran next week. hope for the best. but when you're dealing with washington, prepare for the worst. pay close attention to the talk shows on sunday and the roundup monday. only washington would listen. here's my call to you. no vacation without legislation. "mad money" will be right back. >> announcer: coming up, the wow factor. innovation. it's what drives our economy forward. and tonight cramer's got his eyes on a solution to a life-altering problem. whether you're stranded after a storm like sandy or one of the billion people in the world who don't have electricity, this device lets you create your own power. don't move. you've got to see this. and later, data and dollars. as companies head to the cloud, the business of big data becomes all the more crucial. cramer's found one stock at the center of finance and figures that could be attracting some potential suitors. the takeover talk is just ahead. plus -- >> we're going to do some work on this. >> announcer: you sent cramer back to the books. now he's got the answers you need. plus, jim responds to your tweets @jimcramer #madtweets. and your e-mails just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. here on "mad money" we ordinarily only talk about publicly traded companies. after all, this is a show that's all about helping to try to make you money in the stock market. but lately there's a lot of innovation happening at private companies, companies that are doing really cool things. and you know what i? don't want you to be behind the curve anymore on a big idea just because there isn't yet a way to trade it. that's why i want to introduce you to biolite. it's a private company with an ingenious product. biolite makes a little portable wood-burning camp stove that not only cooks your food in a way that's clean and safe as petroleum, petroleum-based fuels, but i think this is huge. the energy from the stove can also be used to charge your cell phone or other electronic devices. can you imagine the millions of people in the northeast that were without power and gasoline in hurricane sandy had these camp stoves handy? the blackout would have been a lot more pleasant and i wouldn't have had to worry every minute that my phone would die, which was really my chief -- when i was trying to do this phone downtown. my phone kept dying. plus of course there are billions of people in the developing world who don't have access to power but they do have access to cell phones that need charging and they cook using wood-burning fires every day. which is why biolite's also testing a large stove for homes that produce electricity. this is an amazing invention and i think it could change the lives of billions of people. which is why i'm thrilled to have biolite's ceo and its chairman here with us tonight to talk about the revolutionary products. mr. sear, mr. levy, welcome to "mad money." >> thanks very much. >> good to see you. >> good to sigh. >> okay, guys, you're from brooklyn. you're doing this device. this device could change the world. if you were a publicly traded company we'd have to talk about how's the quarter -- no. i just want you to walk me through how you came up with it, what it does, and what it did in hurricane sandy because that was an amazing story. >> great. sure. absolutely. so biolite stoves as you mentioned are wood-burning stoves that generate electricity from the heat of the fire. this yellow part here is an electrical generator. it's kind of like a solar panel for heat instead of light. it plugs into the stove. you set it up. you dumb a bunch of twigs in it. and you light them on fire. and when the fire is hot, you can plug your phone in. >> right. i'm going to plug my phone in now. because my phone needs charging. this is a cool thing. there we go. that's 75. it will be at 100 very shortly. >> here we go. if we want to, we can put an l.e.d. light in here and you can see that we're generating light. so in a lot of places this is what people need. they need small amounts of electricity to do really practical things. >> right. so sandy, i had -- out of gasoline. >> right. >> no grid is working. people needed this, right? >> not only that, but right near our office in dunbar we had water that was pouring through. the national guard came through to help people out. we made coffee for them, tea for them. we charged all their cell phones. and we did this all over new york. we did it downtown. we did it in washington square park. all over. and then we started distributing the stoves to people in the rockaways. so they could do this at home. >> okay. great service. now, everybody on our crew who has seen this immediately wants to buy one. because they all want to put it, set it in their trunk so if you go camping you can be able to charge your phone and your ipad. are they available yet? >> they are available. they're for sale through our website, biolitestove.com. we have sold tens of thousands of them this year. and then next we're we'll be in wholesale locations in the u.s. and about ten countries internationally. >> r.e.i. and eastern mountain sports, that kind of thing? >> yeah. companies like that. >> we've shipped these to now 70 countries around the world. and if you go onto our site or go on to youtube you'll see all the videos people are making about how they're using them in every language you can imagine. >> let's talk emerging markets. those people -- i talked to somebody who came back from cambodia. they said it's the strangest place in the world, everybody uses wood-burning fireplaces, it's the most dangerous thing, they're polluting the sky, but that's all they have. and they also have cell phones. but they're nowhere able to charge them. >> i was in kenya not long ago and i was in a rural village, people living in traditional garb. i said how many of you have cell phones? every one of them have it. i said where's the electricity? 15 kilometers away. and when they walk there they pay 25 cents to get their cell phone charged. >> so this would be the answer. >> right. not only that, but also it's a much cleaner burn. you'll see with these fires that there's no smoke coming out of it. most people in the developing world are cooking indoors and they're generating tremendous amount of fumes. they're actually killing three times as many people as who die from malaria, and we get rid of 95% of the smoke. so it's much cleaner. we use less wood. and we can give them electricity. >> so i spent a lot of time thinking about apple. everybody does. apple down another 14, up 50. people worry about apple because is it doesn't have an omg factor. that's the word. when you show this around, do not people just -- jaws drop, right? >> well, it's amazing. especially our customers are our best advertisers, right? they're the people who are posting hundreds of youtube videos. but it's the psalm thing in emerging markets. so we go to do a demonstration in india, and really cooking is traditionally a woman's task in those communities and we have the men pushing to the front and center of the circle because they want to charge their cell phones. so it creates this really great dynamic where at one time it's a health intervention that's hopefully going to save a couple million lives every year, but the draw is for the same commercial reasons that we would want to have them here. >> now, i would want one of these in my trunk, right? >> right. >> little plastic bag. if i ever got in a jam at the side of the road, i'd stay warm and charge my phone. >> and not only that, it's on-demand energy. we think of it as energy everywhere. >> on demand energy. >> because here we are. it's a rainy day. if we had a solar panel, what would happen? it's not working. but we're generating electricity and you're charging your phone right now. >> so you have the patents. what do you have? what do you own about this? >> sure. absolutely. so we do have patents in the u.s. and in asia, africa, and europe. but in addition to that we have an incredible team of engineers and scientists who are not only developing cook stoves but a whole range of energy technologies. and so where we really see our role as a company is in providing personal scale energy access that's affordable and safe and reliable. >> talk about affordability. how much is this? >> these stoves are $130. >> okay. now, you are in brooklyn, new york. but you don't make these here, right? >> we don't. >> you have a factory -- >> we manufacture -- we manufacture in asia. and then -- but it's all based on the designs and the engineering of the team right here in new york. >> now, i've looked at this in the videos. how long does it take me to make a pot of tea? >> four minutes. >> it takes us four minutes to boil a liter of water. that's it. >> four minutes? >> four minutes. >> well, guys, look, it is omg. i'm thrilled you that came here. this is jonathan cedar. okay? and john levy. biolite's chairman and ceo. thank you so much, gentlemen. >> thank you. >> stick with "mad money." >> announcer: coming up, data and dollars. as companies head to the cloud, the business of big data becomes all the more crucial. cramer's found one stock at the center of finance and figures that could be attracting some potential suitors. the takeover talk is just ahead. just because we're stuck in a real tough environment right now with that darn fiscal cliff deadline looming, three weeks away, our political leaders getting absolutely nowhere -- >> buy buy buy! >> sell sell sell! >> it doesn't mean we stop searching for opportunities to make money. even in the most dismal markets there are always stocks that have the ability to go higher. just got to find them. takes a lot of work. one i've been doing a lot of work on, it's called dst systems. dog sam tom. now, dst is not a great business. hmm. but i think it could be a terrific stock. the reason? i see number signs suggesting that dst could be preparing itself for a sale. and if not, it sure as heck should be. but even if dst doesn't get bought out, it has a fabulous story. it's a tale that we've repeated over and over again. it's one that's made big money in a number of stocks for us. see, dst, which is just a terrible name for a company, but that's what they call themselves, is a company where the whole is currently worth a lot less than the parts. now, in recent months dst has started to get aggressive about selling off those parts in order to unlock this hidden value. that's one of the reasons why i think it could be preparing itself for a transaction, and i think they could keep selling all these spare parts until only the core business remains. do i have you intrigued? now we can talk about what this company is. let me explain. dst systems is kind of like a cats and dogs company. no insult to petsmart, which is a real cats and dog company. dst provides in the core business information processing and software services. mainly to financial firms like mutual funds and brokers. and it also has a smaller division which does billing statement printing and mailing services for all sorts of businesses. but especially telecom and health care companies. on the financial side, broker-dealers outsource their mutual fund accounting services to dst, which is by far the largest player in this. they've got 50% market share. the company provides transfer agency services to more than 181 million shareholder accounts. however, this financial business, it's been in decline for several years now. it was down 12% in 2011. expected to shrink by another 9% this year. though this division is expected to stabilize in 2013, hence why i'm willing to do this piece. and even though dst has had a tough couple of years this side of things still throws off a ton of cash. but the real reason i like dst is because the company has a substantial portfolio of investments that really have nothing to do with that business. they don't get nearly enough credit for these holdings. why should they? they have nothing to do with the business. dst has a large stake in state street, the custodial bank. they have significant real estate holdings. major investments in private equity funds. and some direct investments in private companies. when you add up all these disparate assets on top of the core business you get a sum of the parts valuation for dst that's worth a heck of a lot more than the current $62 and change share price. credit suisse says the sum of the parts is worth $75 or a 21% increase over where the stock is now. stern a.g. just upgraded the stock today. again, i would not recommend stocks unless the fundamentals are good before i ever say they can be taken over. stern a.g.'s got a very conservative analysis. it pegs some of the parts at $71 a share. that's still 14% more than the current price. so it's kind of like a floor. all right? because know that there's value to the assets. yes, there's real value that can be unlocked. i strongly believe that it will be unlocked. and here's why. dst has already started selling off some of its non-core assets. they sold its stake in the computer share last quarter. they just unloaded the position in euronet worldwide for 45 million last week. these are some of the assets when i was first working on this i thought i can't get that much for it. this may be the first steps to taking dst private or maybe selling it to an acquirer. you sell off the non-core assets, sell off the printing and mailing business, which as an industry is way too competitive. and you're left with a pure play financial services company that a private equity buyer might find very attractive. or a financial services acquirer might be intrigued by. given how little growth there is right now in financial services. not only that but i think dst could be a motivated seller, meaning the people running this conditioner seem like they're willing to sell, even eager to sell this whole darn thing. long-time ceo tom mcdonald, guy that's worked at this company for more than 40 years, he stepped down in september. he's 65 years old. but he's staying on as chairman of the board. and he owns 1.7% of the company. meanwhile, there's another board member, george aguires, he's 72 and he owns 22% of the expect to me these guys seem like they might want to cash out. possibly before the end of the year so they can avoid paying higher capital gains tax rates which we will see if we go over the cliff or the president gets his way. a lot of experience in the financial services side of things. he's exactly the guy you bring in if you want to sell off dst's cats and dogs assets in order to turn into a pure play in the financial industry. third i bet the cash flow that's dst's main business as well as all the easily monetized non-core assets would look really attractive to a private equity firm. and even if dst systems doesn't catch a bid this company has gradually been taking itself private for years. do you know this company has bought back an astounding 60% of its outstanding shares in the last decade. 40% just since 2006. remember i tell you most buybacks are illusory, they don't really matter? not this one. here's the bottom line. dst's fundamentals are stabilizing and the company has given a number of signs that it could be preparing itself for a -- >> sell sell sell! >> if dst catches a bid, i think this stock could easily go to 75. talk about a quick 21% gain. and even if it doesn't, the company's already set itself on a path of unlocking its hidden value, something that should drive the stock higher even if the company stays public. as usual, i would not recommend a stock on the basis of its takeover value. it's got to be worth something on its earnings on its own. in this case dst's finally ready to meet the numbers the exact same time that it's worth much more in the private market than it is in the public one. i need to start with celeste in connecticut. celeste. >> caller: hi, jim. from connecticut. first-time caller. i'm excited. >> thank you. >> caller: back in january you said you like catamaran, ctrx, when it was under its old name, xsa, up 72%. thank you so much. i heard it just signed with target. so how does that look? is it a hold or a sell? >> no, i don't think it's -- you own it. i know it's up a lot. so i understand it is hard to taking capital gains if capital gains go up. but i like the pharmacy benefits business. i also like cvs, reports next week. i want you to stay in this. i think it's a really, really good company. i'm glad that you bought it on our recommendation. let's go to sylvia in florida. sylvia. >> caller: hi, jim. it's so great to hear your voice. i'm a regular. >> thank you. >> caller: and i have a question for you about ibm. i've owned it since the beginning of the year and it's gone down significantly. although today it's gone up just a bit. and i understand that the company is changing what they give to the employees for their 401(k) interest. is that going to be a negative for the company? >> no. sylvia, we're fine. ibm, we started -- we owned it for a long time for actionalertsplus.com, my charitable trust, sold it after it had a big run. now buying again. steph ewing, co-director with me, we both think this is one of the cheapest stocks out there. don't forget, warren buffett agrees with us. you know i never recommend stocks on this show on takeover rumors, but i think there's more to dst. it's unlocking its value, even if it doesn't catch a bid. i think it is work a lot. dog sam tom. dst. don't move. "lightning round" is next. >> announcer: coming up -- >> we're going to do some work on this. >> announcer: you sent cramer back to the books. now he's got the answers you need. plus, jim responds to your tweets @jimcramer #madtweets. and your e-mails. just ahead. ico it is time. it's time for the "lightning round." say the name of the stock, i tell you whether to buy buy buy or sell sell sell. play until you hear this sound [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." start with phillip in mississippi. >> caller: boo-yah from biloxi, the gambling capital of the south. >> agreed. >> caller: here is the stock. pdce. pdc energy. >> good oil and gas company. marcellus shale operations. utica where we went to with chesapeake. >> buy buy buy! >> let's go to randy in my home state of new jersey. randy. >> caller: hi, jim. boo-yah from the u.s. airways in philly. >> good to have you on the show. what's up? >> caller: i want to know what you think about finesar. >> people thought the quarter was good which is why it's had the great rounding pattern. starting to go up. in general, i don't like that group that much because i don't like the companies who are their customers. they're not paying up. let's go to ali in pennsylvania. >> caller: ba-ba-ba-boo-yah jim cramer from your home town philly. >> get out of town, man. we've got a big game, going to beat the bucs. what's up? >> caller: no one wants to talk this but unh, united health group. >> i'll see unh and go with aetna. could close the coventry deal. let's go to tom in new jersey. tom. >> caller: big jim, how are you tonight? >> couldn't be better, thank you. what about you? >> caller: great. a big montclair state university boo-yah to you. >> how about the high school championship go to the championship tomorrow. coach liberato at the meadowlands 4:00 be there, boo-yah. >> caller: hovnanian, long? >> no. not going to buy hovnanian. not when toll brothers has an unbelievable quarter and can't lift. rob in new jersey. >> caller: hi, jim. a sexy boo-yah to you from new york city. i love you and everything that you do on your show, and i subscribe to everything you have. >> yes! thank you! >> caller: you're welcome. a few months ago you mentioned merrimack pharmaceutical, mrck, as a good biotech stock. i'm in at age 50. what is your opinion -- >> i think you have to buy more. i feel very good about that. remember, these specs don't necessarily pan out, but i do believe in merrimack, and i would urge you to stick with it. i'm going to rick in kentucky. rick. >> caller: rick in louisville, kentucky, home of the kentucky derby. race horse boo-yah. >> sweet. >> caller: my question is a retail company opened up location close to me. i think it's the best location in the city called cabela's. and to me that store is like a disneyland for grown-ups. >> i totally agree with you. unfortunately, they've had a spate of warm weather. it's a cold weather stock. as they told you in the conference call. but i do think cabela's is terrific. it may not explode yet but i think cabela is very good. and i totally agree with you. there's not much as fun as going to a cabela's. now we're going to go to mark in pennsylvania. mark! >> caller: hey, cramer. second-time caller, mark from wayne. >> oh, wayne. love it. what's up? >> caller: how about that -- >> i think that that has now surprised annaly. remember with the fiscal cliff it is going to be difficult to figure out what these stocks are going to do from here. and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the "lightning round" is sponsored by ameritrade. ♪ tweedy tweedly dee >> cisco, broadcom, and santander. >> i wanted to leave "squawk on the street" because they offered me three mani pedis in a half day but i didn't know what it is so i stayed and did the job. that's a stock joke. >> i think we're probably okay. i don't want the hollywood censors to crack down on me. >> whoo! >> and now jim cramer explains twitter. >> @jimcramer on twitter, 600,000 followers. >> thanks for tuning in to this week's edition of "jim cramer explains twitter." >> let's go to art, also from my home state of pennsylvania. art. >> caller: i'm a recovering eagles fan now living in steelers country. i told you last week about 360 on the "lightning round." >> yeah. sorry. i did have to momentarily wipe the tear from my eye. ♪ whatever's going on with the eagles is just -- well, they went off their own sports cliff. let's just put it that way. we're going to hear from one of my absolute favorite companies. that company is starbucks. when the company has its biannual, annual analyst day. can't have a biannual annual. let me start again. [ bleep ] i'm still paying $5.07 for my triple cappuccino each morning from the stock exchange. want one? just ask for the cramer. ♪ >> there's an awful lot of coffee in brazil. >> this deal's become a real hot button with the short selling community. smells good to me. it's the millennial semi-biannual annual -- now, that could be a good week that was. she also likes to ride her bike. she knows the potential for making or losing money can pop up anytime. that's why she trades with the leader in mobile trading. so she's always ready to take action, no matter how wily... or weird... or wonderfully the market's behaving... which isn't rocket science. it's just common sense. from td ameritrade. if we want to improve sense. our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. before we answer your tweets it's time to go over some homework we're stockpiling here. on the last day of november kelly in pennsylvania wanted to know about micro systems, symbol mcrs. i sawed i'd get back to her because i was surprised the stock was doing so poorly. the leading developer of enterprise applications serving hotels, restaurants, retailers. the company provides complete information management solutions by simplified the cash register linking it back to the office. leading it back to the back office i should say. at first glance micro seems rather cheap, 15 times next year's earnings with a 15% growth rate. hold it. given the fact that the company has $7 in cash, it's not cheap. it's extremely cheap. plus we like the new ceo's strong computer services background. now, the business seems to stabilize if the stock is down 11% for the year, which gives you a nice entry point. buy buy buy! now, if you buy this one, do it with your eyes peeled for lower prices if case we go over the fiscal cliff. i almost need to do that a boilerplate warning for everything. fiscal cliff, the stock's he going to go lower because all stocks are going to go lower. but you can pick at micro systems for weakness. kelly in pennsylvania, this is the best idea a viewer has sent in in a very long time. another great one. raymond in florida wanted to know about xylem. the company, symbol xyl, not to be confused with the xylem with us a key part of the anatomy of plants which you may have learned when you were smoking that a.p. biology exam. now, raymond discovered that xylem's equipment was involved in pumping out the flooded brooklyn battery tunnel. 11 feet of water in that thing after superstorm sandy. i postponed giving him an answer because i hadn't looked at this company since it was spun out from itt last year. i always knew they had this great plumbing pipe division. xylem is an exciting pure play water company with products involved in the transportation, treatment of water. is there a way to play water? i'm using xylem from now on. this one sells water and waite water pumps along with filtration, disinfection, and biological treatment equipment primarily for utilities. stock's only up 3% for the year. but there's a reason. there's always a reason when the good ones aren't working. right? always a reason. and the answer is europe accounted for 37% of sales. >> the house of pain. >> yeah. that's last year. so we're concerned the weakness over there will dampen any positive effects from sandy. the president's asking for a huge ton of money now for sandy. if you want to own xylem i think you have to wait for a pullback maybe down to 24. that's a couple bucks below where it is now. but i am intrigued by this one. intrigued for certain. another great idea from the people who watch this show. and call it. last night kenny in illinois, he asked me what i thought about private bancorp. pvtp. a regional bank that operates in the u.s., also some exposure to atlanta and colorado. it's up 40%. a bank stock. thanks to improving credit quality and an exit from the bank's tarp overhang via an equity raise. what should we do with private bancorp before the fiscal cliff? i think the positives are clearly baked into the stock right here. this bank could do really well in an environment of rising interest rates, but the fed has made it very clear that rates will stay low until at least 2015. so you know what? let's take a pass on that one. let's do some tweets. thank you, viewers, for making it so that i have more than 600,000 followers. thank you very much. happened just the other day. let's take our first tweet from @nfalex who says what's your take on -- it's the old part of kraft. the stock price has been trading down since the old spinoff. it drives me crazy when stephanie link and i buy for the charitable trust. the charitable trust follows stocks. you can follow along with actionalertsplus.com. and they don't immediately pop. this is the p.m. of philip morris when altria split. it's the fast-growing snacks business overseas, it's going to be great. now here's the problem. it acts terribly. so wa you can say is therefore it's bad or you can do the homework like we did, recognize we've got a terrific restructuring, recognize it's going to have great growth, and you buy it and be a little patient. it is not going to run to 30 anytime soon. but p.m. didn't run to the 90s immediately either. and altria was stuck at 50 or 60 before it doubled. now, our second tweet comes from @t underscore nathan 95. he says is it time to ring the register on j&j or keep holding? same question with epd, enterprise product partners, #boo-yah. when i see these it drives me crazy. why would you ring the register? did something happen? did the thesis go bad? are there fact changes? j&j is a company i think can split up and immediately go to 75, 80. and i think it will. and i've got to tell you something. there's no way you should sell epd. that's got one of the best, safest yields, and -- >> buy buy buy! >> -- i'd be a buyer. "mad money's" back after the break. >> announcer: keep up with cramer all day long. follow @jimcramer on twitter and tweet your questions. #madtweets. who, who might i ask is really doing well in retail? i've heard the latest out of macy's, walmart, kohl's, and last time on "mad money" ascena. don't laugh. courtesy of acquisitions. we know things have gotten real tough, like no thanks. my feeling is with the fiscal cliff looming to the point where it's now mainstream that your take-home pay is going to be reduced by a shocking amount in one month if there's no deal. things ain't getting better. which is why this lulu lemmon number yesterday was astounding. it's so astounding. we have to go through the usual rigamarole to see it, though. first they had a spectacular 18% comparable same-store sales gain. the stores last year, they beat them by 18%. the best i've seen from any company that has hit my eyes in the last three months. by the way, that's coupled with some terrific gross margins. it looked like it was enough to send the stock to the low 70s instantly from the high 60s before it reported. but the downbeat high single-digit comp store projections, mentioned later in the earnings release, stopped the elf in its tracks, reversed it, and the stock dropped to the mid 60s almost instantly, again, all before the market was open. and there it lay until the conference call began. on that call you realized very quickly five things about lulu that no other company has. first the runway here is simply gigantic. they have about 200 stores in the u.s. they could triple that if they want, maybe even more. secondly, in the men's business, it was an afterthought. now coming on strong even though it's only 12% of the total revenues. the international ram subpoena just beginning. frankly you think it's going to be much bigger outside the united states. lulu itself a real proselytizer for the activities for which its clothes are meant. yoga. they have a great anecdote about what 457d in columbus, ohio after lulu lemon opened. a cornucopia of yoga studios opened afterward. it doesn't seem like a fad. it is remarkable what they teach you at a lulu lemmon. and fifth they have clean inventory. that means even if it appeals to those who are wealthy, the price points are ridiculous, i think, and they wouldn't have to take a lot of markdowns because they don't have a lot of inventory. lulu is in an unenviable position that is shared by chipotle and whole foods. it's growing so much faster than anyone else that it gets a multiple that's tough to justify. 40 times next year's earnings. 4-0. that's because they're deciding it might be inexpensive on a price to earnings multiple in the out years. looks expensive now but in 2015 it will be cheap. eventually that game ends. it did for whole foods when the large number made it possible for them to keep blowing away the estimates. and tended for chipotle with the rapid deceleration of same-store sales. i'm telling you in the true fashion of my good friend herb greenberg, both could happen to lulu. 14% of its shares have been sold short. shows you how the bears keep betting the momentum will stall and the stock will plummet. but that bet was unrequited this quarter because lululemon even at $10 billion has more going for it in a secular fashion, the strength of the health movement with which it's heavily identified, and the technology of the clothes. technology. which is regarded as unique and more innovative than any other clothier out there, including technology-laden under armour. the ardor continues, the shorts get confounded ander, once again the quick draw types who don't bother to wait until the conference call get smoked to smithereens. it's not too late to buy lululemon. stick with cramer. >> announcer: it's a brutal full-contact sport. >> from the time the whistle blows -- >> traders bracing for what could turn out to be a wild session. >> -- to the last play of the game. >> markets absolutely getting hammered today. >> i know it's not easy, but i promise to keep fighting for you. >> announcer: jim cramer. leveling the playing field for all. >> the road is a tough one. but the payoff can be your greatest win of all. >> join "mad money's" training camp weeknights. 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New-yorkUnited-statesJapanNevadaMeadowlandsPennsylvaniaBrooklynBrazilKentuckyTurkeyFloridaSonoma you want to get a sense of just how important this -- i hate to even say it anymore -- fiscal cliff is? today we got an incredible employment report from the labor department. with 146,000 new jobs. i was looking for 90,000. the unemployment rate dropping to 7.7. i thought it might be 8%. and all this despite the effects of hurricane sandy. who knows how high we could have been if it weren't for that darn hurricane? yet the market barely blinked. yet the potential layoffs if we go over the cliff make these rearview numbers seem almost irrelevant to the market. hence the mixed performance of the averages today. sure, dow gained 81 points, but the s&p barely budged, edging up 29%. and the nasdaq actually declined .38%, led once again by the slip sliding away apple, which you know i like, but how many times during a particular show can i say i like it? so with that in mind, what's the game plan for next week? first off, perhaps the most important day of the week is monday. but not for any earnings. not for any releases. that's when we process the results of the weekend talk shows, which you now have to watch as if we were instead of watching, you know, college gameday, i'm watching like some of those other news stations -- and then of course sunday morning whoever -- you don't even pay attention -- football means nothing now, right? it's all this. last week we saw the positions harden on both sides of the aisle. the market didn't like it. we will watch "meet the press" with david gregory and the others to gauge the real opportunities for a deal. is the administration out to break the pledge republicans made to never raise taxes on the rich as per major domo grover norquist, who rivals the congressional leadership control over the very thought patterns of those who signed his pledge. grover's bound to go after republicans with impure thoughts who are being seduced, i heard these words myself on "meet the press," by the democrats. well, of course i was sitting about three feet from him. i wonder, are there enough members of the gop who study higher tax pornography with that seduce stuff? maybe this weekend have the impure thoughts thing we ought to call old-time supreme court justice potter stewart. "i will know it when i see it." sometimes i feel bad for the speaker, speaker boehner. he's caught between the elected obama and the unelected norquist crossfire. there's not a lot of room to maneuver in that space. tuesday we've got two big investor meetings. first there's dell world. dell world? i like kirby's fourth world. there's dell world. is the risk taken out of this one now? it's down so low. or does it even matter? deleveraged buyout as goldman hinted in its sell-buy research upgrade this week? second, there's a -- how many times can you tell us that monster drinks aren't any worse and may actually be better than a cup of joe from starbucks? let us count the ways that this analyst meeting slash lovefest, they will tell you that there's no better way to preserve your heart than to drink a taste of monster every morning. now, analysts will be plenty hopped up when they come out of this meeting because they'll be recommending this stock in high-speed fashion. next on wednesday we're going to get the results from joy global. here's the company that has the best read on chinese growth of all the companies i follow. in fact, joy global called the bottom in the slide over there by analyzing data on chinese electricity use. can't be jiggered. people think this is an original equipment business, but i've got to tell you once again we're going to hear from the straight-shooting ceo michael sutherland that maintenance is more important. maintaining it is the equivalent. i'm going to listen to what he says about india. we don't talk about india enough. they are like coal junkies over there. it's like get me the kingsfords. after the close wednesday we hear from restoration hardware. we've all been gaga lately for housing plays but this one seems to be overlooked. i urge you to take a fresh look at the restoration ahead of the quarter because i think the comps, so to speak, ethan allen and williams-sonoma, have been very strong. i like when companies just came public because they give you the first numbers. they tend to be good ones. very rarely do you get a real stinker right out of the chute. speaking of housing plays, cramer fave pier 1 comes out on thursday morning. will pier one continue to deliver? did sandy hurt them? they've got a lot of stores in the northeast. probably want to know that. right? they sell a lot of seasonal merchandise. that's where i get my turkey napkin holders. you know those little things that -- they'll let us know. we've been behind pier 1 ever since alex smith turned it around and then he went out of the niners and they pulled -- no, it's a different alex smith. this is a british one. i bet this time will be no different. i think pier 1 delivers. then telco equipment maker ciena reports thursday morning. spending by the big firms, att, verizon, sprint, it has been inordinately geared toward cell phone towers and not only optical and software build-up. the starving we've seen in this group which includes juniper and even cisco tells us we should be worried about little ciena. even a fellow optical traveler had good things to report this week. stay away. also we list a number of important analysts' meetings on thursday. remember we told you to buy the starbucks, that was a really good trade. okay. we've got cvs caremark. i think that's going to be a very interesting session. cvs. right? you use them. sorry, i didn't mean to cross out cvs. i meant to highlight cvs. phillips 66. get your kicks from that analyst meeting. and united technologies. cvs is the cheapest and best drugstore play p i would be willing to buying ahead of the meeting, particularly if you have a little fiscal cliff panic before thursday. which person's going to come on wednesday and create the buying opportunity for cvs? phillips 66 reminds us how smart it was to break up the old conoco phillips and perhaps put some focus on how hess could be next. united technologies will give us aw fiscal cliff update and a sense of how aerospace is doing now that goodrich, a premium supplier to aerospace, is part of the family. on friday scotts miracle grow. endless excuse making for missed quarters. can they explain the poor execution? i'll listen, but frankly i doubt it. also on friday we get november industrial production and capacity utilization numbers. did november really matter or was it all sandy? i think prices were stagnant. but i want to try to figure out whether the new boom in cars and homes could impact industrial production and capacity utilization no matter what. i'm trying to understand the unemployment number today. after these numbers that we get now, after those we're going to be officially on recession watch going forward, meaning that we expect all the good numbers to kind of let's say peter out because of the fiscal cliff and what it's doing for hiring, or the lack of it. and speaking of the fiscal cliff, let me say to washington, no vacation without legislation. we will be virtually monitoring airports to see which legislators are leaving town now that the vacation is supposed to begin. you know what? if we don't have a deal by this vacation, or a pledge not to go away, then the odds go to -- down to 50-50 that we'll get one before the end of the year. and then we may only get one when people look at their take-home play and have a collective bout of nausea from a recognition that there was a fiscal cliff all along and we were just pushed over it. that's how much your paycheck's going to shrink. here's the bottom line. let's hope for the best that our politicians move in the right direction. something we can see as early as sunday morning when they appear on the major political talk shows like "meet the press." but we'll be preparing for the worst. >> the house of pain! >> that our lawmakers go home for the holidays, meaning we will likely go over the cliff and nothing will be done about it until after taxpayers actually feel the real pain. let's go to r.w. in nevada, please. r.w. >> caller: jim, a big fan of yours. thank you for helping people like me. >> i appreciate that. that's why i do the show. how can i help? >> caller: i've had dole stock since its september high. and now that david delorenzo is leaving and selling his packaged goods and asian fresh produce to japan, what's your take on the stock? >> yeah, i saw the change in management. and i've got to tell you, i continue to think it's a good story to hold. i know that people feel that somehow it's going to be magic. @jimcramer on twitter i immediately saw a ton of things about isn't this, now that murdoch's returning to chairman and ceo? no. murdoch's a great businessman who's getting up in years. i think you own the stock because the business model's good. and i like fresh fruit. let's go to bob in california, please, bob. >> caller: boo-yah, jim. >> boo-yah, bob. >> caller: what's wrong with fan, it's down again today after their decent earnings report. is there a possible the new ceo's performance causing a wait and see attitude in spite a spectacular performance in sales and profits? unusual in many retail stocks to see many new store openings and healthy profits going on simultaneously. fran seems to be able to do it. >> i know. you know what? here's what we're going to do with fran, because i read the numbers, like you, i saw -- because i wasn't on the conference call. but i read the numbers. i said better than expected top line, better than expected earnings. how much will the stock be up? and the stock was down. what that means is i owe you an explanation and i will come up with one for fran next week. hope for the best. but when you're dealing with washington, prepare for the worst. pay close attention to the talk shows on sunday and the roundup monday. if only washington would listen. here's my call to you. no vacation without legislation. "mad money" will be right back. >> announcer: coming up, the wow factor. innovation. it's what drives our economy forward. and tonight cramer's got his eyes on a solution to a life-altering problem. whether you're stranded after a storm like sandy or one of the billion people in the world who don't have electricity, this device lets you create your own power. don't move. you've got to see this. and later, data and dollars. as companies head to the cloud, the business of big data becomes all the more crucial. cramer's found one stock at the center of finance and figures that could be attracting some potential suitors. the takeover talk is just ahead. plus -- >> we're going to do some work on this. >> announcer: you sent cramer back to the books. now he's got the answers you need. plus, jim responds to your tweets @jimcramer #madtweets. and your e-mails just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. here on "mad money" we ordinarily only talk about publicly traded companies. after all, this is a show that's all about helping to try to make you money in the stock market. but lately there's a lot of innovation happening at private companies, companies that are doing really cool things. and you know what? i don't want you to be behind the curve anymore on a big idea just because there isn't yet a way to trade it. that's why i want to introduce you to biolite. it's a private company with an ingenious product. biolite makes a little portable wood-burning camp stove that not only cooks your food in a way that's clean and safe as petroleum, petroleum-based fuels, but i think this is huge. the energy from the stove can also be used to charge your cell phone or other electronic devices. can you imagine the millions of people in the northeast that were without power and gasoline in hurricane sandy had these camp stoves handy? the blackout would have been a lot more pleasant and i wouldn't have had to worry every minute that my phone would die, which was really my chief -- when i was trying to do this phone downtown. my phone kept dying. plus of course there are billions of people in the developing world who don't have access to power but they do have access to cell phones that need charging and they cook using wood-burning fires every day. which is why biolite's also testing a large stove for homes that produce electricity. this is an amazing invention and i think it could change the lives of billions of people. which is why i'm thrilled to have biolite's ceo and its chairman here with us tonight to talk about the revolutionary products. mr. sear, mr. levy, welcome to "mad money." >> thanks very much. >> good to see you. >> good to see you. >> okay, guys, you're from brooklyn. you're doing this device. this device could change the world. if you were a publicly traded company we'd have to talk about how's the quarter -- no. i just want you to walk me through how you came up with it, what it does, and what it did in hurricane sandy because that was an amazing story. >> great. sure. absolutely. so biolite stoves as you mentioned are wood-burning stoves that generate electricity from the heat of the fire. this yellow part here is an electrical generator. it's kind of like a solar panel for heat instead of light. it plugs into the stove. you set it up. you dump a bunch of twigs in it. and you light them on fire. and when the fire is hot, you can plug your phone in. >> right. i'm going to plug my phone in now. because my phone needs charging. this is a cool thing. there we go. that's 75. it will be at 100 very shortly. >> here we go. if we want to, we can put an l.e.d. light in here and you can see that we're generating light. so in a lot of places this is what people need. they need small amounts of electricity to do really practical things. >> right. so sandy, i had -- out of gasoline. >> right. >> no grid is working. people needed this, right? >> not only that, but right near our office in dunbar we had water that was pouring through. the national guard came through to help people out. we made coffee for them, tea for them. we charged all their cell phones. and we did this all over new york. we did it downtown. we did it in washington square park. all over. and then we started distributing the stoves to people in the rockaways. so they could do this at home. >> okay. great service. now, everybody on our crew who has seen this immediately wants to buy one. because they all want to put it, set it in their trunk so if you go camping you can be able to charge your phone and your ipad. are they available yet? >> they are available. they're for sale through our website, biolitestove.com. we have sold tens of thousands of them this year. and then next year we'll be in wholesale locations in the u.s. and about ten countries internationally. >> r.e.i. and eastern mountain sports, that kind of thing? >> yeah. companies like that. >> we've shipped these to now 70 countries around the world. and if you go onto our site or go on to youtube you'll see all the videos people are making about how they're using them in every language you can imagine. >> let's talk emerging markets. those people -- i talked to somebody who came back from cambodia. they said it's the strangest place in the world, everybody uses wood-burning fireplaces, it's the most dangerous thing, they're polluting the sky, but that's all they have. and they also have cell phones. but they're nowhere near able to charge them. >> i was in kenya not long ago and i was in a rural village, people living in traditional garb. i said how many of you have cell phones? every one of them have it. i said where's the electricity? 15 kilometers away. and when they walk there they pay 25 cents to get their cell phone charged. >> so this would be the answer. >> right. not only that, but also it's a much cleaner burn. you'll see with these fires that there's no smoke coming out of it. most people in the developing world are cooking indoors and they're generating tremendous amount of fumes. they're actually killing three times as many people as who die from malaria, and we get rid of 95% of the smoke. so it's much cleaner. we use less wood. and we can give them electricity. >> so i spent a lot of time thinking about apple. everybody does. apple down another 14, up 50. people worry about apple because is it doesn't have an omg factor. that's the word. when you show this around, do not people just -- jaws drop, right? >> well, it's amazing. especially our customers are our best advertisers, right? they're the people who are posting hundreds of youtube videos. but it's the same thing in emerging markets. so we go to do a demonstration in india, and really cooking is traditionally a woman's task in those communities and we have the men pushing to the front and center of the circle because they want to charge their cell phones. so it creates this really great dynamic where at one time it's a health intervention that's hopefully going to save a couple million lives every year, but the draw is for the same commercial reasons that we would want to have them here. >> now, i would want one of these in my trunk, right? >> right. >> little plastic bag. if i ever got in a jam at the side of the road, i'd stay warm and charge my phone. >> and not only that, it's on-demand energy. we think of it as energy everywhere. >> on demand energy. >> because here we are. it's a rainy day. if we had a solar panel, what would happen? it's not working. but we're generating electricity and you're charging your phone right now. >> so you have the patents. what do you have? what do you own about this? >> sure. absolutely. so we do have patents in the u.s. and in asia, africa, and europe. but in addition to that we have an incredible team of engineers and scientists who are not only developing cook stoves but a whole range of energy technologies. and so where we really see our role as a company is in providing personal scale energy access that's affordable and safe and reliable. >> talk about affordability. how much is this? >> these stoves are $130. >> okay. now, you are in brooklyn, new york. but you don't make these here, right? >> we don't. >> you have a factory -- >> we manufacture -- we manufacture in asia. and then -- but it's all based on the designs and the engineering of the team right here in new york. >> now, i've looked at this in the videos. how long does it take me to make a pot of tea? >> four minutes. >> it takes us four minutes to boil a liter of water. that's it. >> four minutes? >> four minutes. >> well, guys, look, it is omg. i'm thrilled you that came here. this is jonathan cedar. okay? and john levy. biolite's chairman and ceo. thank you so much, gentlemen. >> thank you. >> stick with "mad money." >> announcer: coming up, data and dollars. as companies head to the cloud, the business of big data becomes all the more crucial. cramer's found one stock at the center of finance and figures that could be attracting some potential suitors. the takeover talk is just ahead. just because we're stuck in a real tough environment right now with that darn fiscal cliff deadline looming, three weeks away, our political leaders getting absolutely nowhere -- >> buy buy buy! >> sell sell sell! >> it doesn't mean we stop searching for opportunities to make money. even in the most dismal markets there are always stocks that have the ability to go higher. just got to find them. takes a lot of work. one i've been doing a lot of work on, it's called dst systems. dog sam tom. now, dst is not a great business. hmm. but i think it could be a terrific stock. the reason? i see number signs suggesting that dst could be preparing itself for a sale. and if not, it sure as heck should be. but even if dst doesn't get bought out, it has a fabulous story. it's a tale that we've repeated over and over again. it's one that's made big money in a number of stocks for us. see, dst, which is just a terrible name for a company, but that's what they call themselves, is a company where the whole is currently worth a lot less than the parts. now, in recent months dst has started to get aggressive about selling off those parts in order to unlock this hidden value. that's one of the reasons why i think it could be preparing itself for a transaction, and i think they could keep selling all these spare parts until only the core business remains. do i have you intrigued? now we can talk about what this company is. let me explain. dst systems is kind of like a cats and dogs company. no insult to petsmart, which is a real cats and dog company. dst provides in the core business information processing and software services. mainly to financial firms like mutual funds and brokers. and it also has a smaller division which does billing statement printing and mailing services for all sorts of businesses. but especially telecom and health care companies. on the financial side, broker-dealers outsource their mutual fund accounting services to dst, which is by far the largest player in this. they've got 50% market share. the company provides transfer agency services to more than 181 million shareholder accounts. however, this financial business, it's been in decline for several years now. it was down 12% in 2011. expected to shrink by another 9% this year. though this division is expected to stabilize in 2013, hence why i'm willing to do this piece. and even though dst has had a tough couple of years this side of things still throws off a ton of cash. but the real reason i like dst is because the company has a substantial portfolio of investments that really have nothing to do with that business. they don't get nearly enough credit for these holdings. why should they? they have nothing to do with the business. dst has a large stake in state street, the custodial bank. they have significant real estate holdings. major investments in private equity funds. and some direct investments in private companies. when you add up all these disparate assets on top of the core business you get a sum of the parts valuation for dst that's worth a heck of a lot more than the current $62 and change share price. credit suisse says the sum of the parts is worth $75 or a 21% increase over where the stock is now. stern a.g. just upgraded the stock today. again, i would not recommend stocks unless the fundamentals are good before i ever say they can be taken over. stern a.g.'s got a very conservative analysis. it pegs some of the parts at $71 a share. that's still 14% more than the current price. so it's kind of like a floor. all right? because know that there's value to the assets. yes, there's real value that can be unlocked. i strongly believe that it will be unlocked. and here's why. dst has already started selling off some of its non-core assets. they sold its stake in the computer share last quarter. they just unloaded the position in euronet worldwide for 45 million last week. these are some of the assets when i was first working on this i thought i can't get that much for it. this may be the first steps to taking dst private or maybe selling it to an acquirer. you sell off the non-core assets, sell off the printing and mailing business, which as an industry is way too competitive. and you're left with a pure play financial services company that a private equity buyer might find very attractive. or a financial services acquirer might be intrigued by. given how little growth there is right now in financial services. not only that but i think dst could be a motivated seller, meaning the people running this conditioner seem like they're willing to sell, even eager to sell this whole darn thing. long-time ceo tom mcdonald, guy that's worked at this company for more than 40 years, he stepped down in september. he's 65 years old. but he's staying on as chairman of the board. and he owns 1.7% of the company. meanwhile, there's another board member, george aguires, he's 72 and he owns 22% of the expect to me these guys seem like they might want to cash out. possibly before the end of the year so they can avoid paying higher capital gains tax rates which we will see if we go over the cliff or the president gets his way. a lot of experience in the financial services side of things. he's exactly the guy you bring in if you want to sell off dst's cats and dogs assets in order to turn into a pure play in the financial industry. third i bet the cash flow that's dst's main business as well as all the easily monetized non-core assets would look really attractive to a private equity firm. and even if dst systems doesn't catch a bid this company has gradually been taking itself private for years. do you know this company has bought back an astounding 60% of its outstanding shares in the last decade. 40% just since 2006. remember i tell you most buybacks are illusory, they don't really matter? not this one. here's the bottom line. dst's fundamentals are stabilizing and the company has given a number of signs that it could be preparing itself for a -- >> sell sell sell! >> if dst catches a bid, i think this stock could easily go to 75. talk about a quick 21% gain. and even if it doesn't, the company's already set itself on a path of unlocking its hidden value, something that should drive the stock higher even if the company stays public. as usual, i would not recommend a stock on the basis of its takeover value. it's got to be worth something on its earnings on its own. in this case dst's finally ready to meet the numbers the exact same time that it's worth much more in the private market than it is in the public one. i need to start with celeste in connecticut. celeste. >> caller: hi, jim. from connecticut. first-time caller. i'm excited. >> thank you. >> caller: back in january you said you like catamaran, ctrx, when it was under its old name, xsa, up 72%. thank you so much. i heard it just signed with target. so how does that look? is it a hold or a sell? >> no, i don't think it's -- you own it. i know it's up a lot. so i understand it is hard to taking capital gains if capital gains go up. but i like the pharmacy benefits business. i also like cvs, reports next week. i want you to stay in this. i think it's a really, really good company. i'm glad that you bought it on our recommendation. let's go to sylvia in florida. sylvia. >> caller: hi, jim. it's so great to hear your voice. i'm a regular. >> thank you. >> caller: and i have a question for you about ibm. i've owned it since the beginning of the year and it's gone down significantly. although today it's gone up just a bit. and i understand that the company is changing what they give to the employees for their 401(k) interest. is that going to be a negative for the company? >> no. sylvia, we're fine. ibm, we started -- we owned it for a long time for actionalertsplus.com, my charitable trust, sold it after it had a big run. now buying again. steph ewing, co-director with me, we both think this is one of the cheapest stocks out there. don't forget, warren buffett agrees with us. you know i never recommend stocks on this show on takeover rumors, but i think there's more to dst. it's unlocking its value, even if it doesn't catch a bid. i think it is worth a lot. dog sam tom. dst. don't move. "lightning round" is next. >> announcer: coming up -- >> we're going to do some work on this. >> announcer: you sent cramer back to the books. now he's got the answers you need. plus, jim responds to your tweets @jimcramer #madtweets. and your e-mails. just ahead. it is time. it's time for the "lightning round." say the name of the stock, i tell you whether to buy buy buy or sell sell sell. play until you hear this sound [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." start with phillip in mississippi. >> caller: boo-yah from biloxi, the gambling capital of the south. >> agreed. >> caller: here is the stock. pdce. pdc energy. >> good oil and gas company. marcellus shale operations. utica where we went to with chesapeake. >> buy buy buy! >> let's go to randy in my home state of new jersey. randy. >> caller: hi, jim. boo-yah from the u.s. airways in philly. >> good to have you on the show. what's up? >> caller: i want to know what you think about finesar. >> people thought the quarter was good which is why it's had the great rounding pattern. starting to go up. in general, i don't like that group that much because i don't like the companies who are their customers. they're not paying up. let's go to ali in pennsylvania. >> caller: ba-ba-ba-boo-yah jim cramer from your home town philly. >> get out of town, man. we've got a big game, going to beat the bucs. what's up? >> caller: no one wants to talk this but unh, united health group. >> i'll see unh and go with aetna. could close the coventry deal. let's go to tom in new jersey. tom. >> caller: big jim, how are you tonight? >> couldn't be better, thank you. what about you? >> caller: great. a big montclair state university boo-yah to you. >> how about the high school championship go to the championship tomorrow. coach liberato at the meadowlands 4:00 be there, boo-yah. >> caller: hovnanian, long? >> no. not going to buy hovnanian. not when toll brothers has an unbelievable quarter and can't lift. rob in new jersey. >> caller: hi, jim. a sexy boo-yah to you from new york city. i love you and everything that you do on your show, and i subscribe to everything you have. >> yes! thank you! >> caller: you're welcome. a few months ago you mentioned merrimack pharmaceutical, mrck, as a good biotech stock. i'm in at age 50. what is your opinion -- >> i think you have to buy more. i feel very good about that. remember, these specs don't necessarily pan out, but i do believe in merrimack, and i would urge you to stick with it. i'm going to rick in kentucky. rick. >> caller: rick in louisville, kentucky, home of the kentucky derby. race horse boo-yah. >> sweet. >> caller: my question is a retail company opened up location close to me. i think it's the best location in the city called cabela's. and to me that store is like a disneyland for grown-ups. >> i totally agree with you. unfortunately, they've had a spate of warm weather. it's a cold weather stock. as they told you in the conference call. but i do think cabela's is terrific. it may not explode yet but i think cabela is very good. and i totally agree with you. there's not much as fun as going to a cabela's. now we're going to go to mark in pennsylvania. mark! >> caller: hey, cramer. second-time caller, mark from wayne. >> oh, wayne. love it. what's up? >> caller: how about that agnc. >> i think that that has now surprised annually. remember with the fiscal cliff it is going to be difficult to figure out what these stocks are going to do from here. and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the "lightning round" is sponsored by ameritrade. ♪ tweedy tweedly dee >> cisco, broadcom, and santander. >> i wanted to leave "squawk on the street" because they offered me three mani pedis in one day but i didn't know what it is so i stayed and did the job. that's a stock joke. >> i think we're probably okay. i don't want the hollywood censors to crack down on me. >> whoo! >> and now jim cramer explains twitter. >> @jimcramer on twitter, 600,000 followers. >> thanks for tuning in to this week's edition of "jim cramer explains twitter." >> let's go to art, also from my home state of pennsylvania. art. >> caller: i'm a recovering eagles fan now living in steelers country. i called you last week about 360 on the "lightning round." >> yeah. sorry. i did have to momentarily wipe the tear from my eye. ♪ whatever's going on with the eagles is just -- well, they went off their own sports cliff. let's just put it that way. we're going to hear from one of my absolute favorite companies. that company is starbucks. when the company has its biannual, annual analyst day. can't have a biannual annual. let me start again. [ bleep ] i'm still paying $5.07 for my triple cappuccino each morning from the stock exchange. want one? just ask for the cramer. ♪ >> there's an awful lot of coffee in brazil. >> this deal's become a real hot button with the short selling community. smells good to me. it's the millennial semi-biannual annual -- now, that could be a good week that was. 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[singing] hoveround takes me where i wanna go. call or log on to hoveround.com to find out where a hoveround can take you! before we answer your tweets it's time to go over some homework we're stockpiling here. on the last day of november kelly in pennsylvania wanted to know about micro systems, symbol mcrs. i said i'd get back to her because i was surprised the stock was doing so poorly. the leading developer of enterprise applications serving hotels, restaurants, retailers. the company provides complete information management solutions by simplifying the cash register linking it back to the office. leading it back to the back office i should say. at first glance micro seems rather cheap, 15 times next year's earnings with a 15% growth rate. hold it. given the fact that the company has $7 in cash, it's not cheap. it's extremely cheap. plus we like the new ceo's strong computer services background. now, the business seems to stabilize if the stock is down 11% for the year, which gives you a nice entry point. buy buy buy! now, if you buy this one, do it with your eyes peeled for lower prices in case we go over the fiscal cliff. i almost need to do that a boilerplate warning for everything. fiscal cliff, the stock's going to go lower because all stocks are going to go lower. but you can pick at micro systems for weakness. kelly in pennsylvania, this is the best idea a viewer has sent in in a very long time. another great one. raymond in florida wanted to know about xylem. the company, symbol xyl, not to be confused with the xylem with us a key part of the anatomy of plants which you may have learned when you were smoking that a.p. biology exam. now, raymond discovered that xylem's equipment was involved in pumping out the flooded brooklyn battery tunnel. 11 feet of water in that thing after superstorm sandy. i postponed giving him an answer because i hadn't looked at this company since it was spun out from itt last year. i always knew they had this great plumbing pipe division. xylem is an exciting pure play water company with products involved in the transportation, treatment of water. is there a way to play water? i'm using xylem from now on. this one sells water and waste water pumps along with filtration, disinfection, and biological treatment equipment primarily for utilities. stock's only up 3% for the year. but there's a reason. there's always a reason when the good ones aren't working. right? always a reason. and the answer is europe accounted for 37% of sales. >> the house of pain. >> yeah. that's last year. so we're concerned the weakness over there will dampen any positive effects from sandy. the president's asking for a huge ton of money now for sandy. if you want to own xylem i think you have to wait for a pullback maybe down to 24. that's a couple bucks below where it is now. but i am intrigued by this one. intrigued for certain. another great idea from the people who watch this show. and call it. last night kenny in illinois, he asked me what i thought about private bancorp. pvtp. a regional bank that operates in the u.s., also some exposure to atlanta and colorado. it's up 40%. a bank stock. thanks to improving credit quality and an exit from the bank's tarp overhang via an equity raise. what should we do with private bancorp before the fiscal cliff? i think the positives are clearly baked into the stock right here. this bank could do really well in an environment of rising interest rates, but the fed has made it very clear that rates will stay low until at least 2015. so you know what? let's take a pass on that one. let's do some tweets. thank you, viewers, for making it so that i have more than 600,000 followers. thank you very much. happened just the other day. let's take our first tweet from @nfalex who says what's your take on -- it's the old part of kraft. the stock price has been trading down since the old spinoff. it drives me crazy when stephanie link and i buy for the charitable trust. the charitable trust follows stocks. you can follow along with actionalertsplus.com. and they don't immediately pop. this is the p.m. of philip morris when altria split. it's the fast-growing snacks business overseas, it's going to be great. now here's the problem. it acts terribly. so what you can say is therefore it's bad or you can do the homework like we did, recognize we've got a terrific restructuring, recognize it's going to have great growth, and you buy it and be a little patient. it is not going to run to 30 anytime soon. but p.m. didn't run to the 90s immediately either. and altria was stuck at 50 or 60 before it doubled. now, our second tweet comes from @t underscore nathan 95. he says is it time to ring the register on j&j or keep holding? same question with epd, enterprise product partners, #boo-yah. when i see these it drives me crazy. why would you ring the register? did something happen? did the thesis go bad? are there fact changes? j&j is a company i think can split up and immediately go to 75, 80. and i think it will. and i've got to tell you something. there's no way you should sell epd. that's got one of the best, safest yields, and -- >> buy buy buy! >> -- i'd be a buyer. "mad money's" back after the break. >> announcer: keep up with cramer all day long. follow @jimcramer on twitter and tweet your questions. #madtweets. squougsz you who, who might i ask is really doing well in retail? i've heard the latest out of macy's, walmart, kohl's, and last time on "mad money" ascena. don't laugh. courtesy of acquisitions. we know things have gotten real tough, like no thanks. my feeling is with the fiscal cliff looming to the point where it's now mainstream that your take-home pay is going to be reduced by a shocking amount in one month if there's no deal. things ain't getting better. which is why this lulu lemmon number yesterday was astounding. it's so astounding. we have to go through the usual rigamarole to see it, though. first they had a spectacular 18% comparable same-store sales gain. the stores last year, they beat them by 18%. the best i've seen from any company that has hit my eyes in the last three months. by the way, that's coupled with some terrific gross margins. it looked like it was enough to send the stock to the low 70s instantly from the high 60s before it reported. but the downbeat high single-digit comp store projections, mentioned later in the earnings release, stopped the elf in its tracks, reversed it, and the stock dropped to the mid 60s almost instantly, again, all before the market was open. and there it lay until the conference call began. on that call you realized very quickly five things about lulu that no other company has. first the runway here is simply gigantic. they have about 200 stores in the u.s. they could triple that if they want, maybe even more. secondly, in the men's business, it was an afterthought. now coming on strong even though it's only 12% of the total revenues. the international ramp up is just beginning. frankly you think it's going to be much bigger outside the united states. lulu itself a real proselytizer for the activities for which its clothes are meant. yoga. they have a great anecdote about what happened in columbus, ohio after lulu lemon opened. a cornucopia of yoga studios opened afterward. it doesn't seem like a fad. it is remarkable what they teach you at a lulu lemmon. and fifth they have clean inventory. that means even if it appeals to those who are wealthy, the price points are ridiculous, i think, and they wouldn't have to take a lot of markdowns because they don't have a lot of inventory. lulu is in an unenviable position that is shared by chipotle and whole foods. it's growing so much faster than anyone else that it gets a multiple that's tough to justify. 40 times next year's earnings. 4-0. that's because they're deciding it might be inexpensive on a price to earnings multiple in the out years. looks expensive now but in 2015 it will be cheap. eventually that game ends. it did for whole foods when the large number made it possible for them to keep blowing away the estimates. and tended for chipotle with the rapid deceleration of same-store sales. i'm telling you in the true fashion of my good friend herb greenberg, both could happen to lulu. 14% of its shares have been sold short. shows you how the bears keep betting the momentum will stall and the stock will plummet. but that bet was unrequited this quarter because lululemon even at $10 billion has more going for it in a secular fashion, the strength of the health movement with which it's heavily identified, and the technology of the clothes. technology. which is regarded as unique and more innovative than any other clothier out there, including technology-laden under armour. the ardor continues, the shorts get confounded and, once again the quick draw types who don't bother to wait until the conference call get smoked to smithereens. it's not too late to buy lululemon. stick with cramer. >> announcer: it's a brutal full-contact sport. >> from the time the whistle blows -- >> traders bracing for what could turn out to be a wild session. >> -- to the last play of the game. >> markets absolutely getting hammered today. >> i know it's not easy, but i promise to keep fighting for you. >> announcer: jim cramer. leveling the playing field for all. >> the road is a tough one. but the payoff can be your greatest win of all. >> join "mad money's" training camp weeknights.
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(blowing sound) ask your doctor about spiriva. >> i'm jim cramer, welcome to my world. >> you need to get in the game. firms are going to go out of business and he's nuts, they are nuts, they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer, welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to help you make some money. my job is to educate and coach you, teach you about how all of this works, call me at 1-800-743-cnbc. when i used to teach selling stocks at goldman sachs, i told trainees you have to be ready to rebut the objections. expect challenges and meet them with good answers that put to rest the worries, concerns that would keep you from buying the stocks you want them to own. today the market put on a virtual rebuttal clinic and it led to a terrific day where the dow soared 179 points and the nasdaq surged 1.04%, as every important objection was silenced. no wonder we're closing in on those all-time highs. what are the negative presumptions that got rebutted? the u.s. economy must be slowing. right? i mean, on account of all that negative stuff people keep talking about. guess what. today made the notion seem fanciful. we got good macro, meaning we saw durable goods data, showing demand for machinery rose the most in two years. how does that happen? it comes on top of the recent increase in container board, the corrugated box stuff that your packages come in, fedex and stuff. one of the most sensitive economic indicators out there and then a $50 increase in sheet steel, it fell from a match by ak steel. and you cannot put through container board and steel price hikes in a weak economy. you would say, no, no. i need more evidence. take a look at transports, incredibly sensitive to commerce. today they rallied the most since july last year. jb hunt, almost up four points, 52-week high. i don't talk about the truckers enough, my bad. i spend too much time on transporters like ups. a name my charitable trust bought more of. and fedex. but the truckers are a fabulous indicator of economy strength or weakness. jb hunt, saying all systems go. and cramer fave kansas city southern, ksu, $103, all-time record and it may be in talks to build a major hub to bring domestic oil to texas refineries. they're shipping by train. and it is so important to get an outlet for the domestic oil, and ksu is the preferred way to play it. a terrific stock because of the smoking hot mexican trunk line. how do we know this isn't a transport blip? would you see companies make truck engines and components for trucks like cummins, $2.39 and remarkable runs all, nowhere near as amazing as boeing. the supposedly hobbled pitiful helpless giant maker of planes that isn't supposed to be able to fly any time soon, if you read the press reports. why the heck is it 66 cents from the 52-week high, how about because they place huge orders with the company, because it may be, despite what the press reports you hear and see the finest manufacturer in the world. they will fix this problem faster than anyone believes possible. that abundance of orders makes sense given that the airlines are the most solvent i have ever seen them and i think -- get this. stop trading for a moment. i think united continental, delta, and u.s. air are all buy, buy, buy. that's right. screaming buy. did i just recommend three airline stocks? you bet i did. just like the rental car companies, which i always despised because they used to compete against others so aggressively, and consolidating to a slap happy oligopoly, for the first time airlines are doing so too. i like the pending u.s. airways amr combination. a blessedly anti competitive home run. unless, of course, you are a frequent flier. you are still worried. still worried, i get that. this time about the possibility that italy could cause ripples to the banking system because of the interconnectedness of the financials. it spell-checked okay. didn't that cause us to be down 200 points on monday? i've got a big rebuttal. jpmorgan. a truly international bank that ran 1.68 after an analyst meeting. this country is not to be derailed by anything happening in italy. yeah. at last we see it for what it is. italian politics as opposed to our politicians won't bring down our banks anymore, which means we should stop focusing on their errant elections, if you don't mind. it's a mistake to do so. that's what the pep in jpm stock is saying. jpmorgan, let's say it took care of its nasty european whale problem, stop sweat sweating the jpm program. but captain jamie dimon got that moby sucker. how about china? how about china? another reason we got crushed last week was china. aren't we petrified that china is stalled? break out the handbook here, and china stalled, that means commodities stalled, which means the strength is chimerical. i told you we want to listen to michael sutherland, the biggest pure play in mining equipment. he said china is coming on strong, a demand for commodities around the globe. another issue neutered by today's evidence. but isn't the consumer -- i got the whole litany, isn't the consumer tapped out by higher gasoline prices? by the end of the payroll tax holiday, by increased taxes for the rich. by the bad weather lately. i don't know, but our newly created gatsby index was on fire today. so were dollar stores. dollar tree, and great gatsby nick caraway. and how about the all-time high, home depot. three-point jump macy's moving up another buck and walmart continuing to run, despite endless attempts by bears portraying the company having a dim view of the future. something i'll discuss later in the show, saying jcpenney stinks, oh, i threw that out there, more at the end of the show. why did darden zoom higher? the parent of chili's goes up a buck? and great chicken burrito at cbc, opened up the whole studio, a big chipotle bar, it was fabulous. do you think you get these kinds of moves in stocks when the people at home bemoaning the stuff they better be bemoaning? woe is me, you get the check this time. isn't housing peaking? remember toll brothers? i say look out. and new cramer speculative fave radiant. priced 33 million shares at 8 bucks today and managed to close at $8.45. this one goes much higher. much, much higher, the kind of offering that has added to earnings at the company fixes its balance sheet. how on earth can i recommend a housing stock when we're in an any day situation with the fed? when the fed will stop keeping rates down and take away the punch bowl as last month's fed minutes showed? that's bad news for you there. the bears. the fed chief spoke again on the hill. if anything, more aggressive on the bond buying front. guy is spiking the punch bowl. and we'll be blind for three days. talk about a blown call. sure, you say, all right, and don't get too confident, the sequestration is coming. that's got to be brutal, right? how about the fact that huntington ingals, hii, reported a fantastic quarter today, $6 billion in new business in 2012, a billion awarded last quarter. just off its 52-week high. and l3 communications, lockheed martin, among the strongest stocks in today's session. so much for sequestration worries. if this is what happens when we sequester and slash the military budget i say let's go sequester all the time. and on a day like today, they become gentle bens and lick their boo-boos. today's robust rally and blissful session if you are long, rebutted the negative presumptions head on and did so in the kind of spectacular fashion that reminds you just how wrong the panickers were when they fled this market just seven days ago. >> the house of pain. laurine in california. >> caller: booyah from san francisco. thank you for sharing the vast knowledge of the ins and outs of stock trading with us. will we see a greater future for netflix with the new capabilities they have coming down the pipeline, such as streamlining the search options? >> i got to tell you, if apple said they were going to buy netflix for cash. apple is $4.44. probably some bad luck sign, down 4 bucks. apple would be $550, netflix would be at $250. netflix is doing fabulous with the people at reed hastings doing a fabulous job. stick with netflix. let's go to mike in new york. >> caller: booyah, mr. cramer. thank you for giving me a shoutout during the adt segment last week. i was watching with my wife at the time and she was very impressed with me, so i need to thank you for that. >> i was thinking of you the whole piece. >> caller: i bought coach back in mid-january. >> why, mike? >> caller: i got in just under $52, and it just plummeted from $62. i was hoping make a quick buck in a few days. and you know, in and out, flip it real quick and it didn't quite work. the stock just kept on dropping on me. >> it did that most certainly. too late to sell, mike. >> i was about to give up. >> that website says it's going to be some bid. look. too low to sell, but you're watching the show, you got the adt shoutout which somehow was related to you, i haven't figured that out. why not buy adt instead of coach? that was the play. coach, no. adt, yes. al in new jersey. al. >> caller: yes, jim. a big philadelphia booyah to you. >> done your way. making some big changes. we managed to get alex smith -- no, that's andy reid. go ahead. >> caller: i want to check in 3-d printing, the biggest stock going next to google and apple. should i invest or not? the stock rebounded slightly. >> it's trading like apple. look this is a market that's reverted to the fundamentals, and the fundamentals say that stock is too expensive. when there is a lot of other -- look, honestly, google, some guy raised his price target. but $800, google is cheaper than the triple d right here. there is always a reason to keep you out of stocks, but right now, the bears aren't always right and why didn't they come on and say they don't like the market? they are in hiding, they are in hibernation. "mad money" will be right back. >> coming up, approved for takeoff? ariad pharmaceuticals anti cancer drug ahead of the fda. is now the time to get behind this company? cramer finds out when he talks to its ceo. and, later, final frontier? the latest sight of america's energy revolution is the golden coast of california. new finds are churning out black gold. after making a big acquisition, could it be right for the pickings? >> and alchemy. the guidance raised for the third time. don't miss cramer's exclusive with its ceo, all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send an e-mail to madmoney@cnbc.com or call 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. tonight i want to talk about a speculative biotech stock that has recently gone from a purely speculative prospect to a company with a real product on the market that could be on the road to earning real profits. aria pharmaceutical. a global commercial oncology company that this past december received fda approval for their very first drug which treats two rare blood and bone marrow diseases. chronic myeloid leukemia and philadelphia chromosome lymphoblastic leukemia. these are orphan diseases. if you have these conditions and none of the other drugs in the market work with you, that's a 20% or 30% of the population, you could die if you don't take this medicine. it's not like that's an unreasonable price. it's run up 33% since we spoke to the ceo in june. since then, the story changed dramatically. back then, it's about getting the drug approved. now it's about developing new treatments in the pipeline. let's talk with dr. harvey let's talk with dr. harvey berger and find out more about what's next for his company. welcome back to "mad money." >> hey, jim. >> you made a bold call, i thought at the time it would be approved. you say it's only been five years that you had to work on this. that somehow that's not a long period of time. >> well, five years from the first time we started clinical trials to approval is very, very short for any new medicine, and frequently in the past it took ten years easily. five years really speaks a lot to how this new medicine has made a difference in patients with various types of leukemias. >> you put numbers out. the u.s. launch december 2012. this could be a billion dollar drug in five years. you've been selling it for seven weeks now. is that too pie in the sky? >> we really don't think so, we've looked hard at how the drug is being used today and how we envision it will be used in the future, as its applications and use grows. we really believe that in a five year period, iclusig can grow to be an $800 million product and growing to a billion in global revenues. >> doesn't it have to become a first-line treatment for many more people than it is currently? >> certainly. the current focus of the trials and approval is in patients that have failed other medicines for leukemia. to get to the billion dollar plus level without question, it will need to be used in the newly diagnosed cml patient. we have a big trial currently looking specifically at that. >> okay. when i know asco comes up in the fall, will we have some information about that big trial then or is it too soon? >> the trial started last year. we will have information about iclusig and other medicines, but we won't have results on the epic trial, the trial for newly diagnosed patients until best case next year. >> there are other drugs on the market from the literature is clear, i don't think they are as effective as yours. what is the sales pitch to convince doctors? you have a big sales force. you're an up and running commercial operation. have you a big sales force. what do you tell the doctor, given that they have established drugs they might be using? >> i think that's the challenge is the sales representatives, the account executives going to talk to physicians. what really will drive the use of iclusig are the clinical data that show the efficacy and safety of this new medicine and how long it's been shown to be useful in patients who have failed the other medicines, failed the other drugs and virtually every patient eventually fails the other medicines for cml. >> really? virtually every patient? >> yes. >> pfizer is up. they are a big company. how do you compete? >> pfizer has the newest from among the large companies, the two leaders in the field are bristol meyers squibb and novartis. we think we have an advantage. our entire sales and commercial organization is focused on iclusig. we really do believe we have a new medicine that will make a real difference in the lives of cancer patients. >> a lot of viewers are worried about europe. they think europe is in terrible shape. a lot of literature says are you going into europe. $115,000, is that something the europeans thought was okay, but now there's not enough money? >> pricing in europe is different than the pricing in the u.s. without question, the pricing in europe will not be the same as the u.s., but it will be a premium to the other medicines that are available, because of the clinical results. >> now, one last thing, and i don't want to get visions in people's heads, we have seen a couple of biotech companies that once they have the drug that's selling, they have been snapped up. you have a chance to build a giant company, but at the same time, your company does not reflect a billion dollars in sales right now. is this something that could happen? i said it's speculative. you have approval. you spend five years, and, you know, they didn't lose that money, but they can buy you and not have to pay a penny of that research? >> well, you know, you build a company, either to be bought, or you build a company to be a sustained long-term business. we have focused entirely on building a global sustainable business. one of the only biotech companies in the cancer field that discovers new medicine, develops them globally and can commercialize them as well. >> this isn't the only indication. this is much, much bigger or else you wouldn't be using that billion there. >> also, not only iclusig. other medicines in clinical development that are moving into pivotal trials as well. we have really tried to position the company in quite a distinguishable way with capabilities that are quite different than most other companies. >> a man of your word. when you came on, i was very worried this would not be approved. you said it would be. a gutsy move. go read what i did. stay with cramer. thank you. coming up, final frontier? the latest site of america's energy revolution is the golden coast of california where new finds are beginning to churn up black gold. after making a big acquisition, could linn energy be ripe for the picking? find out in cramer's exclusive. hey. they're coming. yeah. british. later. sorry. ok...four words... scarecrow in the wind... a baboon... monkey? hot stew saturday!? ronny: hey jimmy, how happy are folks who save hundreds of dollars switching to geico? jimmy: happier than paul revere with a cell phone. ronny: why not? anncr: get happy. get geico. fifteen minutes could save you fifteen percent or more. i don't have to leave my desk and get up and go to the post office anymore. 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[ engine turns over ] [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. this is the pursuit of perfection. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ sure, we had another terrific rally today, but after the vertigo inducing roller coaster act of last week, i don't blame you if you feel a little nervous. this increasingly volatile market has you on edge, time for you to double down on a stock that gives you a sky-high energy yeild. i'm talking about linn energy, the 12th largest independent gas exploration company in the company. it has a big 7.7% yield. if you want to own this for a tax favored account like a 401(k) or i.r.a. you can buy linn co. that's the subsidiary. it doesn't come with the tax baggage. i always tell you to go to your tax accountants in the mlps. linn announced it is buying barry petroleum. this is a brilliant deal. in the first year after the deal closes, expect to to add more than 40 cents to the cash flow power. we want yield to go higher and to come from a higher distribution. that's what could happen from berry. i think this is huge for linn's future. they have come under fire for its hedging program. they used a mix of swap contracts and put options. some don't like the way the company accounts for hedges. they have a chance to explain the hedging on air. let's talk to mark ellis of linn energy to dig deeper into the story. welcome back to "mad money." >> good to see you. >> before we get to the acquisition, which i praised on air numerous times, no shock to you, andrew berry from town, really nice, writes in an article in barron's that linn doesn't deduct the cost of the derivatives from hedging gains. that suggests cash flow is overstated. does it? >> yeah, jim. we saw that article. a week and a half ago we actually did our response to that. we put a presentation out there. >> saw it on the web if anybody wants to see it. >> clearly explains how we do that. misunderstandings in the way we deal with nongap accounting. we stand strong behind our hedge. it's critical to the success of our business. it allows to us pay distribution some 28 quarters in a row, and by the way, those are cash distributions. >> no fasbe commentary, no s.e.c. inquiry. >> none whatsoever, no challenge to our nongaap accounting. >> the reason i recommend the stock, is because you do it. too many cowboys that wouldn't be near the 52-week low if they did your hedging program. >> the hedging part is part of the cost of doing the deal. >> you say it up front. >> absolutely. the day we sign the agreement, we lock in hedges as many as five years. we take very little commodity price risk, and manage the operational risk with the types of assets we buy. we buy mature assets, development drilling, we don't do exploration, so it's very secure. take commodity price out of play and build stability in distribution and you give -- you give the strength also to be able to raise distribution in the future with outstanding operational performance. >> and a series of acquisitions. so people know at home, what you are trying to do, unlike most of the ceos that come on here, you are not making a directional bet on the price of oil. you're just making a bet on the volume you can get and hedging it out so you don't get surprised by a sudden downdraft. >> correct. what we know we don't know is to predict prices. we hedge for five years. the cycle is three to five years. we hedge for five years. not good at predicting prices. >> i thought natural gas was going to go higher except for you. >> last year we bought a lot of gas assets. it allowed us to be more competitive. we buy the margin, lock it in for five years, move on to the next transaction. >> i want to talk about barry and the bp assets. >> okay. >> barry is a great operator. bp, i will tell you, didn't think that was a great operator. new technology may be using far more oil than we may have thought or has been found so far. >> okay. let me split that in two places. as it relate to bp, high quality assets. well trained individuals that work those assets. the problem there is they just weren't core assets for bp. not spending money. current technology or care and feeding will make them perform better. we're already seeing results and we'll put rigs to work. and berry on the other hand, very talented workforce, as much the assets are important to us, the people that run those assets are critical to us, the knowledge in terms of steam plating in california, which is half the production base there and about three quarters of the value in this transaction is critical to the success of the deal and very good at what they do. >> david demshur came on the show, telling us about a couple possible prudhoe bay like sized fields. i believe they are in california. do you think california has that possibility and are you anywhere near where some of the big technological finds can be? they all know them. >> they are right in the backyard now we have it. couple of key fields and more mature steam plays are really interesting. we have a tremendous play in a small acreage position. barry has that play figured out. the steam cycles are down to the point where they have optimized production. >> i have been talking about the mismatch. oil where it can't be refined easily. natural gas not being used effectively because of crazy energy policy. do you think any time in our lives, will we have a rational energy policy and be able to be domestically or continental secure in our energy? >> we have the technology to get there. i would love to see us have an energy policy at some point in time. hopefully we'll get there. >> i got to tell you, again, i want everyone to go to the website, everything is public. not anything i didn't know about linn beforehand. i don't know why anyone is shocked. they are not trying to bet on natural gas going to $7. i don't want to make that bet. they don't either. thank you, mark ellis, president and ceo of linn energy. >> thank you, jim. >> stay with cramer. >> coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round. it is time. time for the lightning round. where i tell you to buy, buy, buy, sell, sell, sell. and then when my staff makes this sound the lightning round is over. we'll start with beverly in new york. >> caller: hi, jim. love your show. i need your opinion on amerigas partners. as a dividend play. >> i didn't like this particular niche of natural gas liquids. but i'm warming up to it. i think you're in fine shape. i say own it. tom in massachusetts. >> caller: yes, jim, tom from cape cod. >> what's happening? >> caller: up 120% on phillips 66, wondering if i should lighten up or get my base back or hold for the long term? >> take out half, let the rest run. i like refiners, but i don't like greed. you be greedy. let's go to grey in california. >> caller: hey, jim. my stock, i notice it's been down like 20 points the last couple weeks. >> come on, we did the fxi a little bit, but we're not messing with the chinese. i got it tell you, their accounting, not crazy about it. sonny in illinois, please. >> caller: a big stock market rally booyah to you, my friend. love your show, your books. what do you think about a juicy dividend stock called penn growth energy? >> i don't trust these oil trusts, not delivered. not going to go there. i would rather see you honestly in linn co, 401(k), or linn otherwise. richard in kentucky. go ahead richard. you are from kentucky, must be lucky. >> caller: am i on? >> you're on, absolutely. >> caller: a great big kentucky booyah, mr. cramer. >> a university of kentucky on the bubble booyah back to you. >> caller: thank you for your great knowledge and wisdom to us home investors. my shock is ship financial international. >> too risky. i'm trying to see if baltic dry freight goes up. i would feel better if nordic american tanker does better. but they are not, so i can't stick my neck out. monisha in florida. >> caller: hi, i wanted to check about facebook. >> i like facebook, but, boy, it's -- i am getting faced on this thing. i liked it, low 20s, liked it in the high 20s, does not distinguish my charitable trust. i've been wrong, i believe in the stock, i was right, then i got wrong and now i'm not sure. not sure i'm going to be right that quickly. but i do like the company. let's go to jerry in north carolina. jerry. >> hey, jim. love your show. i want to tell you that right away. hpsi, i have about 200 shares, went down without 18%. >> it has been the era of safeway, harris teeter, kroger and the downfall of whole foods. i think harris teeter has had a very good run. i would rather be in whole foods. let's go to stacey in colorado. >> caller: hey, jim, it's stacey. >> i had a feeling. >> caller: i'm doing really good, i hope you are too. after getting the ball and chain of apple from wrapped around my neck, i did my homework, did everything and i decided to pick up qualcomm. >> you got horse sense. i interviewed mr. jacobs last week, and they are into samsung and apple, buy, buy, buy, they are mr. 4g. i like qualcomm, certainly more than apple. and that is the conclusion of the lightning round. >> the lightning round sponsored by td ameritrade. coming, healthy habit? biotech alkermes off to a strong start in 2013 after it raised its guidance for the third time on better than expected sales. could its breakthrough treatments for addiction keep your portfolio healthy? don't miss cramer's exclusive with its ceo. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. living with moderate to semeans living with pain.is it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira, to help relieve your pain and stop further joint damage. ♪ let's go. ♪ ♪ ♪ [ male announcer ] introducing the all-new cadillac xts... another big night on the town, eh? ...and the return of life lived large. ♪ listen up, if you are going to speculate on pharma stocks, you don't just want a company that's a one-drug wonder, you want multiple shots on goal. that's why i like alkermes. it is behind the diabetes drug that only needs to be injected once a week. and a monthly injection that helps treat alcoholism and opiate addiction. and they are in partnership with john & johnson. that helps keep people with severe mental illness on their medication which is hard to do. they are working on an extended release version of abilify. the alkermes version would only have to be injected once a month without making people think they don't need to swallow a pill once or twice a day. rival otsuka is working on a once a month injectable drug that could get fda approval as soon as tomorrow. i'm worried about the competition but the fda approval could be good for them. the company reported a fabulous quarter at the end of january, raised guidance the third time in a row and after spiking up to 23, the stock is below 23. smells like an opportunity to me. let's check in with richard pops. chairman and ceo of alkermes. welcome back. >> good to see you. >> i want to let viewers in the kitchen. i was very intrigued by the drug we're talking about, this drug that you are working on in phase three, the one otsuka is competing against, the antipsychotic. you wanted to make sure that i knew this rival company could be approved tomorrow. >> tomorrow. >> but a lot of your literature is about how good the drug is. if someone is coming in against you, why is that a focus? would why would you talk about it? >> there's two schools of thought. more competition is better. in the u.s., 2% of patients with schizophrenia end up on long acting medications, despite the fact that data show it's better for them to remember taking their medications each day. in spain, that number is 30%. >> 30%. >> the potential for this market to grow -- >> spain, they don't have any money. >> you save money by keeping patients out of hospital. we are big fans of them getting approved and getting more doctors and payers in medicaid systems that we should use these medicine. right now, j & j with our drugs. and we will come with our drug, it has its own advantages. we want more patients to get access to these important medicines. >> drugs like abilify. there are always drugs in the market that didn't get big until doctors felt this was worth prescribing. > the reason for lipitor was because everybody was selling statins. wasn't the first. you need a bunch of pharmaceutical companies educating a lot of doctors and payers. >> we understand this is not the end of the world, could be the beginning of the world. >> absolutely. >> one really important thing that you mention as an example. the oral antipsychotic that could be used to augment zyprexa. it's an amazing drug. the best there is. you gain 7% weight almost immediately. yours does not cause weight gain? >> here is the deal. zyprexa, it's very efficient and for some patients they can gain 50 pounds, 60 pounds. we asked ourselves, is there a way of making the zyprexa without the same metabolic or weight gain liability? because of our work in opiods, and we tested this, and we announced a month or so ago, we are taking this drug into expanded phase two studies. >> that brings me to an interesting point. it seems like have you been able to stem craving. if i take this, will i not be hungry? >> no, in fact, we tested that in otherwise healthy volunteers to see if it would affect food intake. it doesn't. if you take zyprexa, is there is an intensified desire for food. the volume has been dialled up, and this helps dial it down. >> vivitrol deals with craving. a year ago, we did the criminal justice system trials going on. >> that's right. >> you say that's not driving sales right now. it's personal. >> we think that's the drumbeat in the distance. a year ago, when we first talked about this, there were seven states in the country doing pilot programs in criminal justice. today, 21. drug offenders. or somebody coming out of prison still addicted to opioids and as a condition of parole, be on vivitrol. you will not relapse. it's indicated for prevention of relapse to opioid dependence. >> and same thing with alcohol? >> alcohol is slightly different mechanism. put people have reported the craving comes down. >> now, my doctor is cbs' doctor and he did a piece recently and said that there were 4,000 people addicted to opiates in 1998. this is the fastest growing addiction in the world. is yours the antidote? >> there are 2.5 million people in treatment for opioid addiction in the u.s. now. >> i'm sorry, yes. >> ten years ago, opioid addiction meant heroin. today it's oxycontin, vicodin, percocet. because you tolerized opioids, you need more and more of a dose to get the high. you will always end up in the criminal justice system, by doctor shopping, buying illicit drugs or moving to heroin. this blocks those receptors in the brain so you know for a month at a time. >> why doesn't everybody know this? >> it's new science. it's always been treated by drugs like methadone. you never lose your dependence on the opioid. >> every time you are on, i learn more. >> thank you for having me. >> the chairman and ceo of alkermes. more to popularize how hard it is to get drugs through fda. richard, thank you so much. >> thank you, jim. >> stay with cramer. we call it thesis investing, and i always hated it. when i ran my hedge fund, i heard these guys that thought they were so smart on air and print and at meetings, talking about top-down economics and shoehorn individual stocks into views from the top down, oh, the economy is negative, let's short this, short that. frankly, it rarely worked and when it went awry, it produced spectacular losses for anyone who attempted these trades. you saw the residue of the thesis playing out on their very screens. the thesis has been the hobbling of the american consumers, higher payroll taxes, higher gasoline prices and dysfunctional behavior in washington. job cutting sequester and delayed tax refunds from the irs, said on the autozone call to total more than $30 billion, all added up to what have been tremendously disappointing earnings to the retailers, the thesis makes since, so easily applied. and right after we were certain, every consumer should have been blown out by what were referred to as headwinds. how could the retailers duck the headwinds? the thesis investors put on short after short after short to profit from the headwinds and the etfs shorted, the discounters, retailers, and the big housing derivative retailers, and the facts got in the way of the story and the shorts were forced to cover. walmart started off much better quarterly report and some tried to seize on the outlook which was muted. and they were trying to short the spreading of the bad word. let me go to home depot and macy's. two of the powerful retailers, and there was not only spending weakness, but spending might be accelerated. when we last left the dollar stores, it was a total debacle. lots of chatter about declining gross margins, kiss of death. dollar tree reported beautiful numbers and guidance wasn't blown away, it reported a dramatic increase in gross margins, extraordinary reversal, and believe me, they were lying in wait for these firms, oh, man, 10% gain. and not everyone executing well enough to take advantage of consumer strength. target and lowe's got beaten by the other guys. if there were headwinds, they were from the front door of their stores. jcpenney, gale force winds if you get near their place. lowe's did come roaring back and it's time to circle back and buy both michael kors and whole foods. the facts just refuse to comply, and the consumer refused to listen to the news or realize how poor she had become. she accelerated spending the exact time she was supposed to curtail it. a good short spoiled. stick with cramer. [ male announcer ] this is not my home. there. i said it. they don't have pictures of my kids. they don't have my yoga mat. and still, i feel at home. could it be the flat screen tv? the not so mini fridge? ♪ the different free dinner almost every weeknight? or maybe, it's all of the above. and all the rest. am i home? nope. but it almost feels that way.
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"mad money," you can't afford to miss it i'm cramer, welcome to cramerica. welcome to "mad money." my job is to educate and coach you, teach you about how all of this works, call me at 1-800-743-cnbc. when i used to teach selling stocks at goldman sachs, i told trainees you have to be ready to rebut the objections. expect challenges and meet them with good answer that put to rest the worries, concerns that would keep you from buying the stocks you want them to own. today the market put on a virtual rebuttal clinic and a terrific day where the dow st y soared 170 points and the nasdaq surged 1.04%. as every important objection was silenced. no wonder we're closing in on the all-time highs what are the negative presumptions that got rebutted. the u.s. economy must be slowing. right? i mean, on account of all the negative stuff people keep talking about. guess what? the notion seemed fanciful. we got good macro, meaning we saw durable goods data, showing demand for machinery rose the most in two years. how does that happen? it comes on top of the recent increase in container board, the corrugated box stuff that your packages come in, fedex and stuff. one of the most sensitive economic indicators out there and a $50 increase in sheet steel, it fell from a match by ak steel. and you cannot put through container board and steel price hikes in a weak economy. i would say, no, no. i need more evidence. take a look at transports, incredibly sensitive to commerce. they rallied the most since july last year. jb hunt, almost up four points, 50 2-week high. i don't talk about the truckers, my bad. i spent too much time on ups. a name my charitable trust bought more of. but the truckers are a fabulous indicator of economy strength or weakness. jb hunt, saying all systems go. and cramer fave kansas city southern, ksu, $103, all-time record and it may be in talks to build a major hub to bring oil to texas refineries. shipping by train. and important to get an outlet for the domestic oil, and ksu is the preferred way to play it. a terrific stock because of the smoking hot mexican trunk line. how do we know this isn't a blip? you see companies make truck engines and components like cummins, $2.39 and remarkable runs all, nowhere near as amazing as boeing. the supposedly hobled pitiful helpless giant maker of planes that isn't supposed to be able to fly any time soon, if you read the press reports. why the heck 66 cents from the 52-week high, how about because they play huge orders with the companies, because it may be, despite what the press reports you hear and see the financest manufacturer in the world. they will fick this problem faster than anyone believes possible. that abundance of order makes sense given airlines are the most solvent i have ever seen them and i think -- get this. stop trading for a moment. i any united continental, delta, and u.s. air are all buy, buy, buy. that's right. screaming buy. did i just recommend three airline stocks? you bet i did. just like the rental car companies, which i despised because they compete against others so aggressively, and consolidating to a slap happeny, for the first time airlines are doing so too. i like the pending u.s. airways amr combination. a blessedly anti competitive home run. unless, of course, are yyou are frequent flier. you still -- are you still worried. still worried, i get that. this time about the possible that italy could cause ripples to the banking system because of the interconnect edness of the financials. it fell spell-checked okay. didn't that cause us to be down 200 points on monday? a big rebuttal. jpmorgan. this ran 1.68 after an analyst meeting. this country is not to be derailed by anything happening in italy. yeah. at least we see it for what it is. a main italian politics as opposed to our politicians won't bring down our banks anymore, which means we should stop focusing on the errant elections, if you don't mind. that's what the pep in jpm stock is saying, jpmorgan, let's say it took care of its nasty european whale program, stop sweat sweating the jpm program. but captain jamie dimon got that moby sucker. how about china? how about china? another reason we got crushed was china. aren't we petrify thad china is stalled. break down the handbook here, and china stalled, that means commodities stalled, which means the strength is khmer call. i told you we want to listen to michael sutherland, the biggest pure play in mining equipment. china coming on strong, a demand for commodities around the globe. another issue neutered by today's evidence. but isn't the consumer -- i got the whole litany, isn't the consumer tapped out by higher gasoline prices? by the end of the payroll tax holiday, by increased taxes for the rich. by the bad weather lately. i don't know, but newly created gatsby index was on fire. dollar tree, and great gatsby nick caraway. and how about the all-time high, home depot. three-point jump macy's moving up another buck and walmart continuing to run, despite endless attempts by portraying the company having a dim view of the future. something by the end of the show saying jcpenney stinks, oh, i threw that out there, more at the ends of the show. why did darden, zoom higher? the parent of chilchile's goes buck? and great chicken burrito at cbc, opened up the whole studio, a big chipotle bar, it was fabulous. you think you get these kinds of moves in stocks when the people at home be moneying? whoa is me, you get the check this time. isn't housing peaking? remember toll brothers? i say look out. and new cramer speculative fave radiant. priced 33 million shares at 8 bucks and managed to close at 8.45. this one goes much higher. much, much higher, the kind of balance sheet. how on earth can i recommend a housing stock when we're in annie day situation with the fed? when the fed will stop keeping rates down and take away the bunch bowl as last month's fed minutes showed? that's bad news for you there. the bears. the fed chief spoke again on the hill. if anything, more aggressive on the bond buying front. guy is spiking the punch bowl. and we'll be blind for three days. talk about a bloub call. sure, you say, all right, and don't get too confident, the sequestration is coming. that's got to be brutal, right? how about the fact that huntington edge engals, hii, red a fantastic quarter, $6 billion in new business in 23012, a billion awarded last quarter. and 52-week high. and l 3 communications, lockheed martin, among the strongest stocks in today's session. so much for sequestration worries. if this is what happens when we sequester military stocks i say let's go sequester all the time. and on a day like today, they become gentle bens and lick their boo-boos. today's robust rally and blissful session if you are lock, rebutted the negative presumptions head on and did so in the kind of spectacular fashion that reminds you just how wrong the panickers when when they fled the market just seven days ago. >> the house of pain. horry in california. >> caller: booyah from san francisco. thank you for sharing the vast knowledge of the ins and outs of stock trading with us. will we see a greater future for netflix with the new capabilities they have coming down the pipeline, such as streamlining the search options? >> i got to tell you, if apple said they were going to buy netflix for catch. apple 4.44. probably some bad luck sign, down $4 bucks. apple would be 550, netflix would be at 250. netflix doing fabulous with the at reed hastings doob a fabulous job. stick with netflix. mike in new york. >> caller: booyah, mr. cramer. thank you forgiving me the shoutout during the adt segment last week. i was watching with my wife at the time and she was very impressed with me, i need to thank you for that. >> i was thinking of you the whole piece. >> caller: i bought coach back in mid-january. >> why, mike? >> caller: i got in just under 52, and it just plummeted from 62. i was hoping make a quick buck in a few days. and you know, in and out, flip it legal quick and it didn't quite work. the stock just kept on dropping on me. >> did that most certainly. >> caller: too late to sell, mi mike. about to give up. >> that website says it's going to be some bid. look. too low to sell, but you watching the show, you got the adt shoutout which somehow was related to you, i haven't figured that out. why not buy adt instead of coach. that was the play. coach, no. adt, yes. al in new jersey. al. >> caller: yes, jim. a big philadelphia booyah to you. >> done your way. making big changes. we managed to get alan smith -- no, that's andy reid. go ahead. this is al in new jersey. >> caller: i want to check in 3-d printing, the biggest stock next to google and apple. should i invest or not? >> it's trading like apple. look this is a market that's reverted to the fundamentals, and the fundamentals say that stock is too expensive. when there is a lot of other -- look, honestly, google, some guy raised his price tag target. but 800, google is cheaper than the triple d right here. there is a reason to keep you out of stocks, but right now, the bears show you the bears arou aren't always right and why didn't they come on and say they don't like the market? they are in hiding, they are in hibernation. "mad money" will be right back. >> coming right up, approved for takeoff? ariad, anti cancer drug ahead ahead of the fda. is now the time to get behind this company? cramer finds out when he talks to its ceo. and, later, final frontier? the latest sight of america's energy revolution, the goldest coast of california. new black gold. after making a biga accident contributio accusation, could it be right for the pickings? >> and alchemy. the guidance thiraised for the third time. don't miss cramer's exclusive with its ceo, all coming up on "mad money." don't miss a second of "mad mope." got @jimcramer on twitter. have a question? tweet cramer @madtweets. send an e-mail to madmoney@cnbc.com or call 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. tonight i want to talk about a speculative biotech stock that has gone from a purely speculative product to a company with a real product on the market that could be on the road to earning real profits. ar aria pharmaceutical. this past december it received fda approval for their very first drug which treats two rare blood and bone marrow diseases. chronic myeloid leukemia and philadelphia chromium mihm no bla lymphoblastic leukemia. these are orphan disease drugs. if you have these conditions and none of the other drugs in the market work with you, that's a 20% or 30% of the population, you could die if you don't take this medicine. it's not like it's an unreasonable price. it's run up 33% since we spoke to the ce often since june. since then, stoert changed. back then, it's about getting the drug approved. now it's about developing new treatments in the pipeline. let's talk with dr. harvey berger. and find out more about what's next for his company. welcome back to "mad money." >> hey, jim. >> you made a bold call, he i thought at the time it would be approved. you say it's only been five years that you had to work on this. that somehow that's not a long period of time. >> well, five years from the first time we started clinical trials to approval is very, very short for any new medicine, and frequently in the past it ten years easily. five years speaks a lot to how this new medicine has made a difference in patients with various types of leukemias. >> you put a lot of numbers out. the launch december 2012. this could be a billion dollar drug in five years. been selling it for seven weeks now is that too pie in the sky? >> we really don't think so, we've looked hard at how the drug is being used today and how we think it will be used in the future, its applications and use grows. we really believe this a five year period, iclusig can grow to be an $800 million and growing to a billion in global revenues. >> doesn't it have to become a first-line treatment for many people more than it is currently? >> certainly. the current focus of the trials and approval is in patients that have failed other medicine for leukemia. to get to the billion dollar plus level without question, it will need to be used in the newly diagnosed cml patient. a big trial currently looking specifically at that. >> okay. when i know asco comes up in the fall. will we have information about the big trial then or too soon? >> the trial started last year. we will have information about iclusig and other medicine, but we won't have results on the epic trial, the tryly for newly diagnosed patients until best case next year. >> other drugs on the market from the literature is clear, i don't think they are as effective as yours. what is the sales pitch to convince doctors. you have a big sales force. an up and running commercial operation. have you a big sales force. what do you tell the doctor, given that they have established drugs they might be using? >> i think that's the challenge is the sales representatives, the account executives going to talk to physicians. what will drive the use of iclusig, the clinical data that show the efficacy and safety of the new medicine and how long it's been shown to be useful in patient who's have failed the other medicine, failed the other drugs and virtually every patient eventually fails the other medicine for cml. >> really? virtually every patient? >> yes. >> fizer is up. they are a big company. how do you compete? >> fizer has the newest from among the large companies the two leaders in the field are bristol meyers squibb and novartis. we think we have an advantage. our entire sales and commercial organization is focused on iclusig. we believe we have a new medicine that will make a real difference in the lives of cancer patients. >> a lot of people are worried about europe. you think europe is in terrible shape. a lot of literature says are you going into europe. $115,000, is that something the europeans thought would be okay, but now there's not enough money? >> pricing in europe is different than the pricing in the u.s. without question, the pricing in europe will not be the same as the u.s., but it will be a premium to the other medicine that are available, because of the clinical results. >> now, one last thing, and i don't want to get vision in people's heads, we have seen a couple of biotech companies once they have the drug that's selling, they have been snapped up. you have a chance to build a giant company, but at the same time, your company does not reflect a billion dollars in sales right now. is this something that could happen? i said it speculative. have you approval. you spend five years, and, you know, they didn't lose that money, but they can buy you and not have to pay a penny of that research? >> well, you know, you build a company, either to be bought, or you build a company to be sustained long-term business, we have focused entirely on building a sustainable business. one of the only biotech companies in the cancer field that discovers new medicine, develops them globally. >> this isn't the only indication. this is much, much bigger or else you wouldn't be using that billion there's. >> also, not only iclusig. other medicine in clinical development that are moving into pivotal trials as well. we have really tried to position the company in quite a distinguishable way with capabilities that are quite different than most other companies. >> a man of your word. when you came on, i was very worried this would not be approved, you knew it would by . go read what i did. stay with cramer. thank you. coming up, final frontier? the latest site of america's energy revolution is the goldest coast of california where new finds are bigging to churn up black gold. after making a bigach zigs could linn energy be right for the pickings? find out in cramer's exclusive. this is america. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] one pill each morn24 hour. sure, we had another terrific rally today, but after the verdict inducing roller coaster act of last week, i don't believe you if you feel a little nervous. this increasingly volatile market has you on edge, time for you to double down on a stock that gives you a sky-high energy play. i'm talking about linn energy, the 12th largest independent gas exploration company in the company. it has a big 7.7% yield. if you want to own this for a tax favored account like a 401(k) or i.r.a. you can buy linn co. i always tell you to go to your tax accountants even the mlps. linn announced it is buying barry petroleum this is a brilliant deal. in the first year after the deal closes, expect to to add more than 40 cents to the cash flow power. we want yield to go higher and from a higher distribution. that's what could happen from berry. i think this is huge for linn's future. they have come under fire for hedging. they use a mix of swap contracts and put options. some don't like the way the company accounts for hedges. they have a chance to explain the hedging on air. let's talk to mark ellis of linn energy to dig deeper into the story. welcome back to "mad money." >> good to see you. >> before we get to the acquisition, which i praised on air numerous times. no shock to you, andrew berry from town, really nice, writes in an article in barron's that lin doesn't deduct the cost of the derivatives from hedging gains. that suggests that cash flow is overstated. does it? >> yeah, jim. we saw that article. a week and a half ago we actually did our response to that put a presentation out there. >> saw it on the web if anybody wants to see it. >> clearly spains how we do that. misunderstandings in the way we deal with nongap accounting. we stand strong behind our hedge. it's critical to the success of our business. it allows to us pay distribution some 28 quarters in a row, and by the way, those are cash distributions. >> no fasbe commentary, no s.e.c. inquiry. >> none whatsoever to our nongap accounting. >> the reason i recommend the stock, is because you do it. too many cowboys that wouldn't be near the 52-week low if they did the hedging program. >> the hedging part is part of the cost of doing the deal. >> you say it up front. >> absolutely. we lock in hedges as many as five years. we take very little commodity price risk, and manage the operational risk with the types of assets we buy. buy mature assets, development drilling, so it's very secure. take commodity price out of play and build stability in distribution and you give -- you give the strength also to be able to raise distribution in the future with outstanding operational performance. >> and a series of acquisitions. so people know at home, what you are trying to do, unlike most of the ceos that come on here, you are not making a directional bet on the price of oil. just making a bet on the volume you can get and hedging it out so you don't get surprised by a sudden downdraft. >> correct. what we know we don't know is to predict prices. we hedge for five years. it is three to five years. we hedge for five years. not good at predicting prices. >> i thought natural gas was going to go higher except for you. >> last year we bought a lot of gas assets. it allowed us to be more competitive. we buy the margin, lock it in for five years, move on to the next transaction. >> i want to talk about berry and the bp assets. >> okay. >> bp, i will tell you, didn't think that was a great operator. berry is a great operator. new tech nog they may be using far more oil than we may have thought or has been found so far? >> okay. let me split that in two places. as it relate to bp, high quality assets. well trained individuals that work those assets. the problem there is they just weren't core assets for bp. not spending money. current technology or care and feeding will make them perform better. we're seeing results and we'll put rigs to work. and berry on the other hand, very talented workforce, as much the assets are important to us, the people that run the assets are critical to us, the knowledge in terms of steam plating in california, which is half the production base there and 3/4 of the value in this transaction is critical to the success of the deal and very good at what they do. >> david dempster came on the show, telling us about a couple possible prudhoe bay like sized fields. i believe they are in california. do you think california has that possibility and are you anywhere near where some of the big -- some of the big technological finds can be. they all know them. >> they are right in the backyard now we have it. couple of key fields and more mature steam plates are really interesting. we have a tremendous play she in a small acreage position. berry has that play figured out. the steam cycles are down to the point where they have great production. >> i have been talking about the mismatch. oil where it can't be refined easily. natural gas not being used effectively because of crazy energy policy. any time in our lives, will we have a rational energy policy and be able to be continental secure in our energy? >> we have the technology to get there i would love to see us have an energy policy at some point in time. hopefully we'll get there. >> i got to tell you, again, i want everyone to go to the website, everything is public. not anything i didn't know about linn beforehand. i don't know why anyone is shocked. they are not trying to bet on natural gas going to 7. i don't want to make this bet. they don't either. thank you, mark ellis, president and ceo of linn ener >> thank you, jim. >> stay with cramer. >> coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round. it i time. time for the lightning round. where i tell you to buy, buy, buy, sell, sell, sell. and then when my staff makes this sound the lightning round is over. we'll start with beverly in new york. >> caller: hi, jim. love your show. i need your opinion on amerigas partners. >> i didn't like this particular niche of natural gas liquids. but i'm warming up to it. i think you're in fine shape. i say own it. tom in massachusetts. >> caller: yes, jim, tom from cape cod. >> what's happening? >> caller: up 120% on phillips 66, wondering if i should lighten up or get my hold for the long term? >> take out half, let the rest run. i like refiners, but i don't like greed. you be greedy. let's go to grey in california. >> caller: hey, jim. my stock, i notice it's been down like 20 points the last couple weeks. >> come on, we did the fxi a little bit, but not messing with the chinese. i got it tell you, their accounting, not crazy about it. sonny in illinois, please. >> caller: a big stock market rally booyah to you, my friend. love your show, your books. what about a juicy dividend called penn grove energy? >> i don't trust these oil trusts, not delivered. not going to go there. i would rather see you be honest. linn co, 401(k), or line otherwise. richard in kentucky. go ahead. richard. you are from kentucky, must be lucky. >> caller: am i on? >> you're on, absolutely. >> caller: a great big kentucky booyah, mr. cramer. >> a kentucky on the bubble booyah back to you. >> caller: thank you for your knowledge and wisdom to us home investors. my shock ship financial international. >> too risky. and i'm trying to see if fright goes up. i would feel better if north american tanker sdooz better. but they are not, so i can't stick my neck out. moniesha in florida. >> caller: hi, i want to check about facebook. >> i like facebook, but, boy, it's -- i am getting faced on this thing. i -- i liked it, low 20s, liked it in the high 20s, does not distinguish my charitable trust. i've been wrong, i believe in the stock, i was right, then i got wrong and now i'm not sure. not sure i'm going to be right that quickly. but i like the company. let's go to jerry in north carolina. jerry. >> hey, jim. love your show. i want to tell you that right away. hpsi, and 200 shares, went up without 18%. >> the era of safeway, harris teeter, kroger and the downfall of whole foods. i think harris teeter has had a good run. i would rather be in hole foods. let's go to stacey in colorado. >> caller: hey, jim, it's stacey. >> i had a feeling. >> caller: i'm doing really good, i hope you are too. after getting the ball of chain of apple wrapped around my neck, did i my homework, did everything and i decided to pick up qualcomm. >> you got horse sense. i interviewed mr. jacobs, and they are into samsung, buy, buy, buy, mr. 4g. i like qualcomm, certainly more than apple. and that is the conclusion of the lightning round. >> the lightning round sponsored by td ameritrade. cominging, healthy habit? alkemes off to a strong start in 2013 after it raised its guidance for the third time on better than expected sales. could its break through treatments for addiction keep your portfolio healthy? don't miss our exclusive interview with its ceo. [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still going to give me a heart attack. that's health in numbers. unitedhealthcare. is moving backward. [ engine turns over, tires squeal ] and you'll find advanced safety technology like an available heads-up display on the 2013 lexus gs. there's no going back. i know what you're thinking... transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. listen up, if you are going to speculate on pharma stocks, you don't want a company that's a one-drug wonder, you want multiple shots on goal. that's why i michael like alkermes. it is behind the diabetes drug that only needs to be injected once a month. and it helps treat alcoholism and opiate addiction. and they are in partnership with john & johnson. that helps keep people with severe mental illness on their medication which is hard to do. they are working on an extended release version of abilify. the version would only have to be injected once a month without making people think they don't need to swallow a pill once or twice a day. rival otsuka is working on a once a month injectable drug that could get approval as soon as tomorrow. but the fda approval could be good for alkermes. the company reported a fabulous quarter at the end of january, raised guidance the third time in a row and after speculating up to 23, the stock is below 23. smells like an opportunity to me. let's check in with richard pops. chair and ceo of alkermes. welcome back. >> good to see you. >> i want to let viewers in the kitchen. i was very intrigued by the drug we're talking about, this ch is this drug that you are working on in phase three, the one otsuka is completing against, the antipsychotic. you wanted to make sure that this rival company could be approved tomorrow. >> tomorrow. >> but a lot of literature is about how good the drug is. if someone is coming in against you, why is that a focus? would why would you talk about it? >> two schools of thought. more competition is better. in the u.s., 2% of patients with schizophrenia end up on long acting medications, despite the fact that it's better for them to remember taking their medication each day. >>? spain, that number is 30%. >> 30%. >> the potential for this market to grow -- >> they don't have any money. >> you save money by keeping people out of hospital. >> we are big fans of them getting approved and getting more doctors in medicaid systems that we should use these medicine. right now, j & j with our drugs. and we will come with our drug, it has its own advantages. we want more patients to get more access to the important medicine. >> like abilify. there are always drugs in the market that didn't get big until doctors felt this was worth prescribing. > the reason lipitor was because everybody was selling statins. wasn't the first. you need a bunch of pharmaceutical companies educating doctors and patients. >> we understand this is not the end of the world, could be the beginning of the world. >> absolutely. >> one really important that you mention as an example. the antipsychotic that could be used to augment zyprexa. it's an amazing drug. the best there is. you gain 7% weight almost immediately. yours does not cause weight gain? >> here is the deal. zyprexa, it's very efficient and for some patients they can gain 50 pounds, 60 pounds. we thought is there a way of making the drug without the same metabolic or weight gain liability? because of our work in opiods, and we tested this, and we announced a month or so ago, we are taking this to expanded phase two studies. >> that brings to an interesting point. it seems like have you been able to stem craving. if i take this, will i not be hungry? >> no, in fact, we tested that in otherwise healthy volunteers to see if it would affect food intake. if you take zyprexa, is there is an intensified volume for food. the volume has been dialled up, and this helps dial it down. >> vivitrol deals with craving. a year ago, we did the criminal justice system trials going on. >> that's right. you say that's not driving sales right now. it's personal. >> we think that's the drum beat in the distance. a year ago, when we first talked about this. seven states in the country doing pilot programs in criminal justice. today, 21. >> drug offenders. >> or somebody coming out of prison still addicted to opiods and on a condition of parole, be on vivitrol. you will not relapse. it's indicated for prevention of relapse to opiod dependence. >> and same thing with alcohol? >> alcohol, slightly different mechanism. put people have reported the craving comes down. >> now, my doctor is cbs' doctor and did a piece recently and said that there were 4,000 people addicted to opiates in 1998. this is the fastest growing addiction. >> there are 2.5 million people in treatment for opiate addiction in the u.s. now. >> i'm sorry, yes. >> ten years ago, opiate addiction meant heroin. now it's oxycontin, vicodin, percocet. because you tolerated it, you need more and more of a dose to get the high. you will always end up in the criminal justice system, by doctor shopping, buying illicit drugsor moving to heroin. this blocks those reseptemberors in the brain so you know for a month at a time. >> why doesn't everybody know? >> it's new science. it's always been treated by drugs like methadone. you never lose your dependence. >> every time you are on, i learn more. >> thank you for having me. >> the chair and ceo of alkermes. more to show how hard it is to get drugs through fda. richard, thank you so much. >> thank you, jim. >> stay with cramer. recognize me. but i am your market data. i know what you're looking for. i'm not chained to your desk anymore. i'm faster and smarter now. and so much less expensive. i am your market data. and if i do say so myself, i have never looked better. superderivatives introduces dgx. data done differently. we call it thesis investing, and i always hated it. when i ran my hedge fund, i heard these guys that thought they were so smart and on air and print and at meetings, talking about top-down economics and shoehorn individual economics to views from the top down, oh, the economy is negative, let's short this, short that. frankly, it rarely worked and when it went awry, it produced spectacular losses for anyone who attempted these trades. you saw the residue of the thesis playing out on their very screens. they has been the hobbling of the american consumers higher payroll taxes, higher gasoline prices and dysfunctional behavior in washington. and job cutting sequester and delayed tax refunds from the irs, said on the autozone call to total more than 30 billion, all added up to what have been tremendously disappointing earnings to the retailers, the thesis makes since, so easier applied. and right after we were certain, every consumer should have been blown out by what we refer to as headwinds. how could the retailers duct the headwinds? the thesis investors put up short after short after short from the headwinds and the etfs she shorted, the discounters, retailers, and the big housing derivative retailers, and the facts got in the way of the story and the shorts forced to cover. walmart started off much better quarterly report and some tried to seize on the outlook muted. and they were trying to short the spreading of the bad word. let me go to home depot and macy's. two of the powerful retailers, and there was not only spending weakness, but spending might be accelerated. when we last left the dollar stores, it was a total debacle. lots of chat about the climbing gross margins, kiss of death. dollar tree reported beautiful numbers and guidance wasn't blown away, it reported a dramatic increase in gross margins, extraordinary reversal, and believe me, they were lying in wait for the firms, oh, man, 10% gain. and not everyone executing well enough to take advantage of consumer strength. target and lowe's got beaten by the other guys. if there were headwinds, from the front door of their stores. jcpenney, gale force winds if you get near their place. and lowe's did come roaring back and it's time to circle back and buy both michael kors and whole foods. they just refuse to comply, and the consumer refused to listen to the news or realize how poor we are come. she accelerated spending the exact time she was supposed to curtail it. a good short spoiled. stick with cramer.
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