Advancing. Nasdaq climbing. The dow dipped 26 points, still if striking distance, nevertheless, you foe what i want to do . I want to layout the case for owning individual stocks. Isnt that a given . I can already see the cat calls on jim cramer. No kidding, you do a stock show on a network that covers stocks. The amazing think, though, is its not a given anymore. Even with stocks blowing past unheard of levels an generating extraordinary returns. In fact, its the opposite. We dont have much new money coming into the market. What does come in tends to flow into etfs or infex decks fiechls owning individual stocks, dont i know it . Youd want to settle for average, something they wont expect in any other walk of life. I love my average team. Hey, the playoffs, who cares, people dont seem to understand that richs can be had right in front of them, if things go right. Plus, its like the whole world is against stocks, people claiming they are rigged. Or the fed is keeping stocks dangerously higher. The fed dumps social media. Isnt it always due for a collapse over geopolitical troubles . I know stock versus had big moves. I said i want to use pullbacks rather than throw. At the market. Tonight we are talking to the ceo of xilinx, making me feel like it havent worth investing, because you wouldnt have spotted it the. So with the risk of insensing the, what itself the point crowd, i want to talk about two situations today that exemplified what can go right with individual stock. I want to make the case that you can make money in traditional growth stocks, that you know, and speculative stocks that you may not know and the risks, indeed, are far outweighed by the rewards. I want to talk about pepsico and puma biotech. I told you to do homework and hold on to them as richs, thats been the theme for nine years on mad money. I said you need to buy the stocks of companies with products that you know and like and can be justified on the basis of the fundament also, but a Company Might earn and how the stock is valued versus other stocks in the same space. Thats how you lower your risk and boost your potential. One of my chief executives is the ceo of pepsico. She has been taking heat from nelson peltz at the delivering alpha conference. If you own the stock, pepsico, i bet you are more thankful today. Thats because they reported a trick number this morning and guided up its earnings trajectory and stock jumped a buck skiefr and was higher at a certaint point. Partf this rally is managements sheer grip, fabulous cost controls and manufacturing food thats good tasting and, yes, occasionally good for you. And thats all around the globe. I know dozens and dozens of ceos. I think they dont need to be prodded by any money manager. She is tough enough on herself. It was a very strong quarter. More important, though, i. You to understand how modern. Management works, most managers are trying to beat the benchmark, which is most of the time the s p 500. They start with the presumption that represents the index. They ten typically try to find the best stocks in each cohort. Sometimes a sector is so anemic the managers. To make it a smaller portion of their portfolio. When it comes to the sectors, they have to own at leefrt one stock, no matter how lousy that sector might seem. That is the ruchl pepsico belongs to the consumer package group, which, frankly, among the worst sectors out there. You know the growth is anemic. We seen the food stocks along wish. Many can use a fellson peltz to get it going, not the leefrt of which is cocacola. We seen the supermarkets, the middle of the stores they call it do very badly, lots of Consumer Package Goods Companies that have reported have had their numbers shut. In short, this is a group masqueradeing at a sleep at night sector. Along comes pepsico, sure, 8 isnt mump versus the rapid growth you get in a tech or a biotech or independent oil and gas stocks, for that matter. You look at the rest of the groups, remember this, Portfolio Managers need to own at least one consumer packages goods, because the sector is too good not to have any exposure or endumpl buy the best t. Best is pepsico. Lets say you are a jelly stone and there is a wild grizzly bear on the loose. You dont have to outrun the grizzly in order to survive. You just need to by the way, the same ting could be said about chipotle. Theyve outrun the other countries, hence, its outperformance. Lets talk about another one, lets talk about puma biotech flg. First, i bought a fair of these. I bought out these. These are pairs of puma sneakers. Some people who own the stock because they think it sells shoes. And they like the pumas. Puma is the kind of stock janet yellin took the task last week when she told the senate the valuations were small, biotechs and small pedia stocks were looking substantial stretched. Right . Clearly, she should have exempted puma, the stock rose 2. 5 high tore a value otherwise 7 billion. It was valuation overstretched yesterday, it was small. Today, hmm, not. The compound to land the rekirns of cancer in a trial if 2001 with early stage breast cancer, pumas trial, meant to be taken is reviewed as a long shot, according to the stuff i like from the street doak. Bus a similar drug from the class if so smith klein failed to reveal tests earlier this year. While ive memorial dayed the stock in the past, ill admit i havent been thinking about puma lately. I didnt know how it was doing when it got slammed earlier this year. Ever since merck shield out money for a company last month, idenix. I encouraged you to own one biotech stock even if you agreed with janet yellin they are stretched. Honestly, pumas success is so startling. Oh, fed chief yellin, i am so glad you knocked only more Capital Media companies, because facebook, a very big capitalized social Media Company is roaring in after hours because of some astonishing good numbers reported this very evening the bottom lean, i know the conventional wisdom now says its impossible to make money in individual stocks with any regularity. Its accepted gospel. But as you stroll down the supermarket aisle past lays, fritos, pepsi, gator aid, quaker cereals, think, was it all that hard to find the stock of pepsico . Sure, maybe youre more likely to own puma if you went to a dicks sportling good rather than the lab. The company was opt mick about the drug. You could have been too, how about pat in new york . Caller pat from staten island. Good to have you on the show. Caller booyah a get rich capital, its great info. Thank you, man. We had a lot of the stocks of the ceos who have been knocked. Stocks are going higher. The biotech chapter is worth the price of admission. Caller it sure is. Thank you. Caller my stock is rh, rest rakes hardware, do i buy or wait for a full pullback . The stock is still down from its high, tow, i think those guys like spectrys. They have superb management. I dont care where a stock has come from. I care where its going to. Now i need to go to irma in new york. Please. Caller yes, jim, im calling regarding a plug. I know its been moving a lot the last few days. I wonder what your opinion was, boy, hold, sell . Contractor, i know people are excited. I have found this company has done a series of secondaries. The stock goes down, its much more of a bark tan a bite play, meaning i think they issue a lot of press releases. For my money, no, there is a lot of speculations elsewhere. Dick. Hi, jim, your staff is great. My staff is brilliant. They make me look good on da days caller my question is coming engine. Its trading off the high of 162. Its on your action alert. Goldman took them off their conviction but still kept them on the buy list with a target of 165. And im wondering, when goldman does stuff leak that, does the stock usually do better, worse, or does it ma itself . I think its very subjective. The stock has been a winner, dont forget, not so big. This is a play you shouldnt trade this on the earnings. You have to just believe their engines will take share for multiple years, theyre proenvironmental. The company is doing well. Couple min cummins goes to 230 if they dont turn around. Please, im asking you not settle for average, owning individual stocks could be worth it. Case in point. Pepsico and puma biotech. I will help you find more on mad money, chipotle blew away the quartersied the stock got a serious shot of spice. Can it keep the heat . I got the big enchilada heempbd bo he moth. Im betting on the players leaving tear competition in the dust and is a pullback lurking . Find out the best way to stay protected as we hit another all time high. Stick with kramer. Maybe its all a giant s. A. T. Style analogy test. Here, take it. Mcdonalds is to chipotle as glass so smith kline is to a celgene, gilead, c, biogen ideck or d regreen ron or e all of the above. There is only one chipotle meaning one fast growing quebec serve restaurant cheney that is doing unbelievably well when it comes to the drug business we have the four horsemen of biotech. All breaking out, both mcdonalds and glass so smith kline stumble. Its a quick quiz, these really are the correct analogies for todays market. Hey, think about this. We got a host of mcdonald downgrades, courtesy of the total lack of growth at the golden arches. Perhaps because i believe the world caught onto the fact that keep tasty food may be no bargain at all if in the long run its really bad for you. The Natural Organic craze isnt a craze anymore. Its not even a phase, its an actual real leak mindset, expanding beyond the United States to the rest of the world, hence by the International Numbers if you save pittsburgh donalds couldnt do it and chin ottley called out team as a loving organic, seiss pick. The only ting that saves mcdonalds is the outside gifd and it spews cash it can grow ever bigger. The Balance Sheet allows for flexibility as they say in the research business. Thats keeping more exasperated people from dumping the stock. Its down from 103. A couple bucks above this year. The ceo of chipotle never ceases to amaze. It wasnt originally spun off from mcdonalds. Chipotle is not only selling mexican food. Theyre selling an ideology of food with integrity and the farmed and dangerous ways fast food people apply their wares. How about the fact that 13 Million People watch the scarecrow, chipotles animated short that condemns the very industry that allows mcdonalds to have food. They akeefd same store sales and i think it contributed to the weakness of mcdonalds. Glaxo smith kline, they seed a advar and its like chicken mcnuggets. One worries about health in the food kane are driving away patrons from mcdonalds. Thats what is wrong t. Big Companies May feed reimbursements, the patented products, gilead with its blowout earnings tonight from its help c and the drug cancer for blood cancers and the macular degenerations, too es are all Game Changers have have mump longer patent protection and earnings numbers ahead of them. Speaking of earnings, its now unthinkable mcdonalds would buy a pack of chipotle. However, one time i would have suggested the 122 billion Glaxo Smith Kline buy a four horsemen, they have mark caps as well as the shrinking of the energy value. Celgene are 17 respectively. Gilead is 15 billion larger than glaxo. That will probably go up tomorrow. Regeneron. Has a big stake in it t. Four horsemen and the lone gunman of fast food are the withiners. Er that making losers out of the old guard titans like glaxo and pittsburgh donalds, right before our very eyes. Jonathan. Hey, jim. What do you think its going to do next . Zoes kitchen . Yeah, were doing work on zoes kitchen. I dont want to point blank say what i think. Its not going to be chipotle. I think its okay. I like the ped trainian tlooem theme. Lets go to mo fla in home. Please. Caller hi, this is mona from United States voun town, ohio. I believe in longterm i time investment. I node to know if its good to buy Boston Scientific. I like Boston Scientific and ped tronic, my favorite has been point brampg santa jude. I think rather than do Boston Scientific, a terrific now investment not a spec, i think st. Jude has the best 2015 of all those three companies, skaent jude meds for you. Courtesy of major street, things are changing. Out with the giants, mcdonalds, and in with gilead and there is more ahead. Can the stock stay in place . Im talking to the big enchilado. Shares of xilinx had double digits on truly terrible results. Plus another day another alltime high, dont sucker pun were your from. Thats why we play am i diversified on wednesdays. Stay with kramer. Sometimes the numbers are so good they speak to themselves, thats how i feel about chipotle. When they reported after the close on monday, it drifrd a spectacular out of this world result. The Company Earned 3. 50 a share. Thats a 41 percent beat. The biggest i seen this season. Revenues rose 26. 6 year over year, most important, analysts were looking at 10. 6 same store sales growth. Chipotle reported a 17 . Amazing, they rose on beef and avacodos. They are experiencing more traffic. They have great strides, meaning they can move people more quickly him on top of Everything Else nk management gave guidance, same sales store forecast from the high single digits. Thats how the stock rallies 70 in a single session. At this point for the one should doubt the consumer wants Higher Quality and theyre willing to pay a premium for it. We last spoke to pangment if early february. Stock isnt cheap. It will go higher. Lets check in with jack hartung, chipotles kre eo. Welcome to mad. Its great to be here. When you get a 17 number, one, you are killing it. Two, you are taking it from the other people. Is this the water shed number that shows farms and companies, we know, mcdonalds, are really losing share to their brethren International Organic . You foe, jim, its hard to say that will happen in one quarter. I think its a lot more subtle. It happens overtiempl i think people are a lot more curious where their food comes from. They are more aware of the impact on their environment, on health, animals, depending on how the food is raised. Theyre a lot more deserving about where they will dine or going to shop at which grocer they will shop at. We have always felt the more people understood where their food came from and how its prepared, that would be got for chipotle. We are seeing the benefits right now. If my chipotle, we have signs. I say we, i go there all the time. Were using not the beaver that i reich. But i listen to the call and it sounds like you pay have sofrld that problem with the australian beef situation, all those coming down soon . Are those signs coming down . We hope so. We had to make an important choice. We really want to support the cattle ranchers in the u. S. , but there just isnt if you have supply for the failure raised beef we want to serve to every single customer. We have to go to australia to get the beaver. Its grass fed beaver. Its really tafrty. Its really delicious we love the idea we can get access to beef. Its a notches above the raised beef we traditionally do sell. With rehoping its supplied from australia. We hope that american ranchers will continue to keep up with our growth and we will be able to take all those signs down very, very soon. It has not hurt stores where you have those signs, thats my understanding . No, jim, some customers come in and say, thank you, instead of buying the steak, i will buy the chicken. Other customers will come in and say, okay, i really would rather have a naturally raised steak, thank you for letting me know i love it. Ill have it. The important thing is we put it in the customers hands, we respect their intelligence and weve had customers do either one of the things i just mentioned. Let me ask a question, i saw apple. Especially i talked with the people, too many people say i love apple. I cant afford it. Its a dollar am. Apple did it. You cant say one or the other i know so many people go to chipotle and say, jim, i cant afford a share, what would be so fwad you split it 17to1 the way apple did. Most of our investors dont have an interest in a stock split at all. I have been looking for people leak google. They do have a reason. They have a structural reason. Apple, im not sure yooit quite why they did i. Er with not finding a reason, the appetite from our investors isnt there. One good reason could be our employees couldnt afford it. If they want to invest in chipotle. We came up with an Employee Stock plan where they can take as little as 5 or 10 out of each check, pool tear money and based on that pool of money buy a bunch of chipotle stock, they can own a portion. We have removed that barrier. Right now, we are not thinking seriously about a stock play at this time. I have to say, many people would love to take advantage of that. Okay, they have as to work through chipotle. Throughput is something a lot of people dont understand, i read through the conference call, eight more people her e per hour, you can that be so important . How can eight people mean that much . Well, its on top of record throughput. Every year, all teams, this is all the teams. Their training be great people. Theyre empowering them to provide a great experience for the customer. When we deliver throughput. We have our crew looking our customers in the eye. Theyre focused on theyre meeting the needs of the customer. It happens to result in faster throughput and service to our customer and our customers lover almost everything about clip ottley. One thing doi dont love is waiting if a slow, long lean. One they have a confidence when it gets in line, it will favourite. When it gets favouriter, they dont mind either. Our customers love that about chipotle. What can we do if terms of using google that i dont have to wait so long . The catering business has gotten so good. You know that order is coming up. I dont want a midtown i stop going to. Im not kidding. Its too long. You have to open another one down the block. Well, whole get on that one as soon as possible. But we do have an opportunity to order outside the restaurant through an iphone or android as well. Can you go and order online. Your order will be ready when you come to the restaurant. You go right to the register. You pay for it. We are experimentening we are still in the beta test. We dont know if that will speed up throughput or not. If it doesnt, were not going to be that interested in it. We are always interested in, if we can make the Customer Exp