Transcripts For CNBC Mad Money 20131213 : vimarsana.com

CNBC Mad Money December 13, 2013

Ugly week, lets look forward and talk about the game plan for next week. This business isnt about the past. Its about the future. Now, we start off next week worried. Worried about the rest of the world. The numbers out of europe and china are okay. I hope that can change monday. The pmi is coming over the weekend. Along with the why is it so important . Give the main Portfolio Managers looking for a resurgence of International Industrial that is are based in the u. S. The profit taking in this has been down right horrendous. Maybe strong numbers from europe and china over the weekend could allow for a nice oversold rally. One that may have started the last half hour of trading today ask kind of gave up the ghost in the last ten minutes. We hope it see more news on chatter that spring theyve been preparing a bid for t mobile, like them both. Something my friend david faber said could be in the works many times in the last few weeks. Now, this potential deal would help sprint get heft, which is why its stock ran up too on the rumor. I like both stocks. Tuesday kicks off the last big event for br the end of the year. The federal reserves meeting to set policy for the foreseeable future. We want we wont know the results until 2 00 p. M. Wednesday. At least when it comes to hiring, housing, and autos that the fed has a good case for getting less accommodative. Thats what a great deal of the selling thats been going on lately is about. Also, of course, people are liking gains. You know i dont fear this socalled taper like so many others. The fed knows the stock market as well as the bond market. The fed knows that there comes a time when sales and earnings for corporations will be good enough that the stock market wont flinch all that much when it starts buying fewer bonds than it can recover. Perhaps with different leadership of the stock market still. Some of you believe its the end of the world that this meeting is taking on a huge level of gravity and anxiety. I because of the potential deal between republicans and democrats. Why im chattering on about the fed meeting, lets take a moment to wish ben bernanke a happy birthday today. Congratulate him for getting the economy as far as he has, certainly without much help from the president or congress. We had two deals that remind me of how good he has done. Burton and knee taken down so much debt during the bad times that can you argue they might have been declared bankruptcy, laying off tens of thousands of people if not for bernankes easy money policies. Now, look, we may in in for a real rocker when the fed tapers, but ben has been known for saving millions of jobs that would have otherwise been lost if he hadnt decided stay accommodative. Yes, he was late and initially complicity. Once he saw how wrong he was, he changed courses radically, and that was genius, the swreenus that helped us get this market to where it stands. I never mind a guy thatted mitts he is wrong and changed his mind and gets it right. Thats called good investing too. Tuesday jay bill. This Contract Manufacturing used to be an amazing stock, but not any longer. Now i use it as a barometer of the customers demand, including apple, which i cant correctly talk about because apple wont let do you that. I look for apple to trade off of jbil even if we arent sure how much business jbil is doing. Tuesday is a huge day. Starts out with federal express, when ch has had an amazing journey. Up through the 130s where it went out today. The rallys accommodation of rebounding Global Growth as well as brilliant restructuring and produced some pretty darn good earnings. Fedex is going to give us the overall window we need to find out how asia is doing as well as the nice give a peek at internet commerce. Even if the company doesnt say everything right. Then again the transports have been incredible performers, including the rails, and it maybe too much the owners arent going to part with this stock unless we also hear from General Mills. Short while going along kellogg against it, and thats a real life trade that was suggested earlier this week. I think General Mills is marking time here. It doesnt have i ton of up side, despite deflation thats good for the company because the stock uses a bond market equivalent, and now that were probably near the end of the ultra low cycle it might end up getting sold no matter what. Lets get insight into one of the great problems of this moment wednesday. Why are the Home Builders why are the Home Builders not doing that well . I mean, thats largely because these stocks were fantastic performers in the anticipation of the turn, and theyve done next to nothing since then. Len ar, the stock is down 9 for the year. When len ar towards wednesday, i bet its going to be a decent number. When toll reported and it then went into the red when managers said sales lately had been okay. I think len ar tells a better story. These stocks dont have any believers left, and theyre considered public enemy number one when it comes to tapering. Be careful if lennar opens up because it could be another toll and head right back down. Before the close wednesday we hear from many of the executives conference regarded as the evil empire. Oracle. This Huge Software firm sold so much legacy business that i doubt it can stop reason, but i dont want to own it in a world where the technology has moved on and away from them. If if you wonder what im talking about, go to the archives and read about every interview i have with the exec alan dream its force that are carving up oracles client base. Thursday brings in more food. This one is from conagra. Im starting to think they bit off more than they can chew. I want to hear that things are going well with that acquisition, and that could ignite the stock. Im not going to look that the beforehand. Too risky. We get results from darden, which is more from being a slow to no real growth dividend play to being an activist investors dream as the insurgents are making a strong case for new management. Be careful. The one thing darden is not is an earnings story. Prepare for another disappointment and then buy it when it gets hit. After the close we hear from nike. I think it will be terrific. Stocks come down nicely ahead of the report. Lets take a look. Plus, pier one reports, and they missed the quarter last time. If you recall alex smith, the ceo came on mad money after that last quarter. He said that the fault was his own, and his ebbing cougs lack the its usual precision. I think its bankable. He is one of my bankable 21. I bet will he deliver this time. I think both nike and pier one are buys ahead of the quarter. Remember, this is the day after the fed meeting. Its important. Remember, market on wednesday. We get our chance for terrific trade on friday. Ceo of macys said finish line Stores Within macys remember he gave them that concession are doing fabulously. Why not take a shot at finish line before it reports friday but after the fed meeting. This would be the day that you would buy some finish line for friday. That i am blessing as a good trade. Heres the bottom line. These are all important important earnings reports, but we have to get through the big bad event of the meeting. Thats going to define the week. Im not denying that. That could make any trade suspect. Be sure you have conviction enough to pull the trigger. Any stock in e market except for perhaps finish line, because that doesnt report until friday. Lets go to annette in california. Caller boo yeah, mr. Cramer. Hey, first of all, i would like to thank you for all you do for us smalltime investors. Because of you, your books, and now your alerts, im starting to see profits in my portfolio. I cant wait until your new release of your new book comes out. Hey, my stock has a lot of legal issues with dma patents and what not. Its called myriad. Myriad genetics. Mydm. Should i buy it into weakness, hold, or sell it . Boy, you know, you said all the things that i am most worried about. It does have Cancer Research, and Cancer Research is working. As long as you understand its a speculative stock, i will bless it. Boy, ive got to tell you, thank you for all those nice comments about action alerts, my books and stuff. We have a great staff. Thats why i look good, believe me. Never forget that. Nate from texas. Nate. Caller boo yeah from university of texas. Fantastic. Whats up . Prirchlgts. Caller i would like to know what the current transition in the fed how will that impact one of my investments to bso . I wouldnt worry about it. The main thing is the metric you need to worry about is west texas versus brent. This is a play that socalled ash trauj between the two. Theres big glut of oil in this country. They can refine it and sell it to you. They got a big umbrella between what they buy it for and what they refine it at. I like it. Lots of important numbers next week, but what will set the tone . The big, bad event. Darden gets hit. You buy it. Finish line, bought thursday. Stay with cramer. Coming up, healthy forecast. Metadata solutions harness the power of the cloud. Its stock soared nearly 200 this year. Can it stay healthy . And, later, market blockbuster. Movie chain amc is set to roll out the red carpet on wall street next week for its public premier. Should you book a ticket, or will this Silver Screen opportunity turn into a Box Office Flop . Plus, smell of success. From french fries to fabric softener, International Flavors and fragrances is the company that puts the aroma in it all. Is it time to take a whiff, or will this run turn sour . Cramer talks to the ceo. All coming up on mad money. I love having a free checked bag with my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. When it comes to the Cloud Computing games with turbo chashlged down right growth rates, sometimes have you to hold your nose and buy. If the stocks seem but not be ridiculously expensive by traditional valuation metrics, if are you trying to make money, and thats what the goal is all about, then you cant afford to cough at the moves of the cloud stocks. Especially this close to the end of the year when so many Money Managers are chasing performance andotology buy anything with momentum regardless of the price, which brings me to the Metadata Solutions. A company i like to call the sales force. Com of the its the leading player in whats known as the clinical cloud. Being they provide Cloudbased Software as a service, thats saas, and helps pharma and biotech firms run their Clinical Trials allowing them to save money and improve the product drug trials. I think it will get an err larger piece of the 50 billion pie the Drug Companies spend on Critical Development every year. Man, the stocks run. Its a real nose bleed valuation even with the 23 growth rate. Metadatas report was fabulous. Stock jumped 21 points to 123 single session. Heres the thing, you could have pulled those negative articles about the valuation or avoid the stock. The last time we got the stock some 50 since then. You could have said the same thing in early jin. Then it was another 7 run. Can the momentum continue . Lets take a look with tariq shareef. This is an expensive stock. I say that because i like it, but i want everyone to know, and he is the cofound, chairman, and ceo of Metadata Solutions to hear more about his companys prospects. Welcome back to mad money. How are you . Good to see you. Great to be here. I have to tell you, i have to get the cavat about the expense because a lot of people said how could you recommend a stock, jim, kind of hack have you become . What im saying is i see accelerating Revenue Growth from your company. I look at the total addressable market, and i realize that the opportunity may be much bigger than your current market cap. Our customers spend 90 billion a year developing new drugs sxshs we are going through a massive transformation of the industry currently where theres a lot of innovation going on, there are a lot of folks trying to push productivity and efficiency in their operations. You saw what gillead is doing bringing innovative drugs to market. We help them to get those drugs to market in a safer way, less risk, more quality, and at a lower cost. If we can get them to market sooner, that means a lot more revenue for those companies, so our road is a very long one. Youve got a great slide and terrific presentation. Mid 70s cost how much does it cost for a drug to come to market. You can reverse that process. You think you can fwet it back to what it used to be to some degree . I think we can actually help Drug Companies get 20, 30, maybe more than that percent decrease in the overall cost of bringing a new drug to market, and importantly, we can help them to fwet the drugs to market faster. It means getting them into patients hands sooner, which has huge beneficial affect for you and me and for all the folks we love. Okay. I think that were going to say, wait a second, what is currently gone wrong . I love this quote that we do Clinical Trials that Premise Software versus Cloudbased Software. Why is one so much faster, cheaper, and better than the other . So its a combination of things. You have a massive amount of complexity in developing new drugs, and you have a lot of process, a lot of safety concerns, a lot of regulation, and the way drugs are developed takes a long time. Its very expensive now that you have genomics coming on, its getting more complicated. You are constantly fighting with upgrades, with changes in how you want to run your Clinical Trials because its getting more complicated. They are global. So we provide a huge amount of flexibility in the software that we develop and deliver through the cloud. You talk about how were early on ms, but you only have 50 of the you are touching, as you call it, 50 of the companies already. How do we know that were so early on if you already have 50 of them looking at so our customers we touch about 50 of all the electronic trials that are being started today. However, theres an enormous process of how you first develop those trials. If you think about how they evolve in terms of how you run the Clinical Trials and so were probably at a 3 or 4 penetration rate with the platform that we provide for our customers, and so theres so much value that we provide to them that we think theres a long road of adoption ahead of us. You have something a quote in your Credit Suisse we help their customers manage their entire process while writing your protocols and you didnt always do that, right . Now you are just soup to nuts . Thats Just Technology that weve evolved over the last three or four years. Why would anyone not want to do it or are they locked in . I do some work with oracle. Its very hard to get them out and bring in a Software Service provider. I think part of the growth story that youve seen from us over the last couple of years and that you will continue to hear quite a bit about over the next three to five years is that we are getting them off the Old Technology and on to our platform, but theres another part to the story. Its not just a replacement market. Its also a huge Growth Market because were constantly ino vating. Some of the things that are changing today in the trial market or in the way drugs are being developed is you are starting to use things like fit bits or activity monitors. That brings us closer to the patient. It also moves us further into the whole health care ecosystem. A big road for us ahead. I know i have to break, but it must also eliminate a lot of the dead end trials. Much shorter before. That is part of the value equation, absolutely. Every time you come on, you amaze me. Cofound and ceo of Metadata Solutions. Sometimes you have to look at the total aaddress of a market and Revenue Growth and make a decision that the companys market cap does not include all the great opportunities, and thats the case with metadata. Stay with cramer. Coming up, market blockbuster . Movie chain amc is set to roll out the red carpet on wall street next week for its public premier. Should you book a ticket or will this Silver Screen opportunity turn into a Box Office Flop . Ya know, with new fedex one rate you can fill that box and pay one flat rate. How naughty was he . Oh boy. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] fedex one rate. The United States population is going to grow by over 90 ovemillion people,ears and almost all that growth is going to be in cities. 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