It colored a lot of the good news and sent the averages higher. The s p advanced. 38 . The nasdaq 1. 34 . The chief example, theres nothing more positive for the consumer than price competition. Consumers get so much good out of companies that compete with each other. We often forget, for example, just how fantastic the internet is to price competition. I remember when i was growing up as a teenager, if you took a rival ad in the paper to Lafayette Radio in philadelphia, they would match the price equal to any stereo. That was just a marvel to me. Back then they would cut price just because they wanted your business so badly you brought in an ad. These days you simply go on amazon, look at who has the lowest prices for the same equipment, and you click to buy it and it comes to your door. Of course, while this is amazing for consumers, its totally not just for a defunct store like Lafayette Radio. It disappeared years ago. Also for the lace circuit city and radio shack, which seems on its last legs. Competition is a killer. Whenever you see it in the stock market, you know what you got to do sell, sell, sell. Before ms. Me to one of my longstanding recommendations. Gilliad. They had the best thing you could possibly have as a company, even as its the worst thing for the consumer. They have a monopoly. Specifically a monopoly on a terrific cure for the dreaded scourge of hepatitis c. Many experts worry it could bankrupt the Health Care System with its 80,000 a year regiment, but in the last 72 hours gilliad has been hit with a onetwo punch. First the fda approved a new hepc drug. It still met the end point desired by express scripts. The company that chooses formulation forces 70 of all remember pharmacy customers. In other words, this is the kind of competition that breaks up a monopoly and while we dont know the terp terms, its pretty clear they came in under the pricing position of gilliad. No wonder they lost in a single session. Plus, adam forestein is predicting that this is the new model for biotech and that the whole group has just hey spectacular run and it could be under pressure for some time. I read this piece, and i shuttered. I dont know if its really the case. Its very rare that you have competitive drugs in the marketplace that cost as much as these hepc medications do. Its very rare that theyre the similar quality. The only time you see it is when a drug goes generic. Now, of course, one of the reasons ive stressed orphan drugs is they have no competition, and the Drug Companies can charge fortunes for them because the alternative is for Health Care Companies to provide some sort of care that costs even more with les less results, but i can see how the whole group trades down because there are so many almost products out there from biotechs, and that can cause this kind of pressure. I think you have to back away. Thats right. I am telling you to back away from the group for now. Let it come in. Why bother to be a hero in a sector thats already run up so much . Let it take a breather. Let people take some gains. We can always revisit it. There is no sin in revisiting. I say that because when you are complacent about price competition, you can get your head handed to you. Take the phone companies. Wow, this group was supposed to be consolidating with sprint being able to merge with tmobile and created a threeway olygopoly. I would have expected them to be immune to produce position, but the Justice Departments Antitrust Division let it be known this deal will be blocked. Suddenly the competition got really heated. Atxt and verizon are down over 3 . Although when you factor in the dividends, theyre still in the black. T mobile is off 20 as it launches severe price wars to get people to switch to its wireless plan and sprint has been completely pulverized. Its down more than 60 because of competition. Its been horrendous for these stocks. Even as its been terrific for your wireless bill. Meanwhile, the autos cant get much traction. Too many are going after the same consumers. There is price cutting everywhere all around the globe. The banks still go at it all the time, but visa and master card, fierce competitors that they are, still end up divvying the world up in a beautiful credit card duopoly. Like them both. The oil service Companies Compete aggressively too which is why it was a god send for shareholders. Although in the end that deal didnt seem to matter because of the collapse in oil prices that continued today. Many of the Semiconductor Companies have merged, geg them Pricing Power over their customers. Thats led to a huge revival of their shares. Im going to give you a couple of names later that i think are totally investable. Now, there are some franchise that is are always being threatened and that led to a dimunition. The case is the aforementioned amazon. Amazon was given the bricks and mortar retailers the business, but lately weve seen one retailer after another adopt an omnichannel approach where you can order online and make returns to the nearest store. Its a decent model, and its put a crimp on what wall street was willing to pay for amazons earnings. Thats competition. Now, lets compare these to companies that are perceived at little competition that makes so much money and are so attractive on the investing side. The investment story that is the Airline Industry hasnt let up because these companies have carved up the country. Thats fabulous for united continental, american airlines, and delta, as well as spirit, which flies routes where there used to be a lot of competition. Weve had tremendous consolidation in the drugstore business, which has given lots of Pricing Power to riteaid, cvs and walgreens. I just love that upgraded riteaid today. Finally, i like facebook. Owner of the Charitable Trust. Why . It has a monopoly. On who . Yourself or at least digital self. What a fantastic business where a giant moat around it, which is what Warren Buffett always talks about. He loved the moat around burlington northern, the railroad. Theres huge price cut increases every time a contract comes up. Repricing. Thats how you judge those stocks. I understand that when a group goes from having no competition to having perceived competition, you are going to pay less for those earnings because you thought the earnings would not be challenged by competitors. You simply cannot like an industry as much as you did before if the biggest buyer in the space decides that it will pit one company against another. Until this weekend we always figured that outfits like express scripts, the largest pharmacy benefit manager were helpless and would have to accept the price of the biotechs. Wow, after this weekend, not anymore. [ bell ] heres the bottom line. The biotech, its too great to ignore. I say take profits or wait on the sidelines until youre sure that gillead is an anomaly and not the new normal. You should be up plenty if you have listened to me on this group. Please, no grousing. Lets go to frankie in new york. Caller i got a culinary booyah for ya. Im going to give you a bar sam and bell. Packed this weekend. Caller i thought you might like to watch my wax cooking show called frankie cooks. Its on thursday nights at 8 30 on nyc tv. Were in there. Heres my question. I know people ask you this all the time. I want to look at ten years out and how you feel giga factory will impact their battery business, not only as a car producer, but as a stationery Energy Producer . They have to deliver on that because to get the market cap that they have now, thats based on the idea that they could be that big, so ive got to tell you, youre betting the farm if you buy this stock that they are going to do it, and i dont know. But are you betting the farm. Regan in california. Regan. Hey, jim. Thank you for taking my call. Youre welcome. Whats up . Im trying to crack the toy company code. Im thinking about mattel over hasbro. Can i get your opinion please . You have to buy. Hasbro is doing everything right. Mattel just because it has a 5 yield. Weve seen the yieldses not be able to contain down side of when a company is not doing well. Thats the way i feel about the mattel yield. I want you in hasbro if you insist on a toy company. Theres nothing more positive for the consumer than competition, but for the market, what can i say, its a killer. When it comes to the biotechs, please dont be a hero. We can revisit when the smoke clears. Its no sin. On mad tonight im taking you on the toothfairy with a plan to profit off your pearlie whites. Dont miss my take on the booming dental players that put serious money under your pillow. When one should be inside your portfolio. Im going name the stocks that could serve much higher in the new year, or frankly until year end. Making money off your favorite athletes doesnt have to be a fantasy. Theres an app for that. Stick with cramer. Dont miss a second of mad money. Follow jim cramer on twitter. Have a question . Tweet cramer, mad tweets. Send jim an email to mad money at cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to mad money. Cnbc. Com. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. Outside of the nasdaq, where we bring you live daily market updates. And today, we have a very special free gift for you. So many viewers email us wanting to know our secrets on how we trade options. So we put our secrets into a new book. And if youre one of the first 250 people to call in right now and just cover shipping and handling, well send you a copy for free. Look at the rate of return weve made on some of our recent options trades, versus what we would have made had we just bought the stock. Theres no comparison. To make the best returns in todays market, you have to learn how to trade options. And our book will show you how to do it for free. Jon has been Trading Options for more than 30 years. Pete is one of the top 100 traders in the country. And our book will teach you how to trade options for free. So call now. [ male announcer ] call the number on your screen now for your free copy of jon and petes new book. Thats. see the number on your screen call now. This is a wild one. Do you know what the hottest performing group in this market is right now . Oh, what is it . The social medias maybe . Is it the biotechs . No. No, not at all. Believe it or not, its the dental supply stocks. Yep, this boring industry has become red hot, which is why tonight i want to explain how you can play it. In an environment where a lot of people are worried about the state of the global economy, the dental names are the kind of stocks that arent going to get hit if the russian collapses or brazils National Oil Company goes under. These are relatively safe consistent companies. Perhaps the most consistent in the land that will keep going and going and going as long as the United States does okay. Why the dental name back right now . For years after the great recession, the overall dental market was flat to down as cashstrapped consumers decided to either not to go to the dentist or to grit their teeth and put off any muchneeded procedures. You know what, i find that hard to believe given that my mother said it was a mortal sin not to take care of your choppers. However, lately we started to see a real uptake in dental out ill az i guess so, and its roaring back now that the economy is in better shape, and consumers have more money in their pocket due to lower gasoline. People feel comfortable paying someone to drill into their teeth when theyve got some extra cash lying around. Its true, guys. Weve looked at this correlation. Meanwhile, the population here in the United States is aging, and as our society gets older, tends to need a lot more work just because fillings get worn out and crowns break down. Like mine. You see this one . Honestly, its going to cost a fortune to get that one fixed. Thats okay. On top of that, were also seeing a real expansion of the global middle class, which means more demand for dentistry nationwide. 176 billion market. Most of that debt is dental services, but some comes from supplies, consumables, specific products. 134 which can get pretty darn hightech. Tonight were taking a closer look at what is amazingly the red hot bull market in dentistry. Starting with my favorite name in the group. Youve seen them if you watch the show regularly. Henry schien. Thats the kind of movies are having. Henry schien is the number one distributor in Health Care Products for dentists and veterinarians and a major supplier of vaccines. The dental supply space, including everything from big items like dentist chairs to tiny ones like the composites and implants that end up in your mouth is a terrific duopoly business. Henry schein has 35 to 40 market share here in the United States, but, by the way, when people get wealthier, feel better, dentists go out on their own, start a new company. They need to have schien come in and outfit it. Its been on a hot streak, and the vaccine business is taking share and benefitting from obama care since more people with insurance equals more vaccinations. The dental business, though, accounts for half of the companys sales. Why do i like henry schein so much, even up here . Aside from the companys dominant market share, it has a history of being a consolidator in what is a fragmented industry. Making lots of smart acquisitions that kibtly boost the bottom line. Last quarter it grew at about a 10 clip worldwide. People thought it was going to be single digit. Roughly 4. 5 of that coming from acquisitions. 4. 7 it includes a longterm Purchase Agreement where henry sc 4 ein and cardinal Branded Products to doctors offices. At the same time the company is moving up to dental Technology Value chain. Supplying more hightech products. Henry sh chein is the sole provider of a hand held device that offers Transillumination Technology that identifies cracks and lesions in your teeth that would be invisible even on an xray. This thing is gaining a lot of popularity. Especially with children. Less invasive diagnostic tool and less exposure to any radiation. No more of that lead smock. I have always felt that wasnt doing the job. Didnt you . I mean, i always felt leak it was kind of a nuclear war against my body. On top of that, the company is also moving into computeraided dentistry, digital xrays. Both areas where this medical supplier has a lot of room to grow, and while my focus is on the dental side of the business, the fact is Henry ScheinsAnimal Health division, terrific. We know this space is also en fuego. We have championed it from the day it was spun off from pfizer. Now, Henry Scheins lathes quarter was pretty strong. Its still only trading 23 times next years earnings. Thats not that expensive, given the double digit growth rate, and its got that brilliant Stanley Bergman at the helm. He talks about all the new products. I like that guy. Now, if henry schein is not your thing, how about the other one . Were talking about patterson companies. Pcdo. Not patterson, the drilling company. Its drilling for oil. This one is drilling for your teeth. This is the number two supplier of dental products and services, and another stock thats within striking distance of its 52week high that i think you take it out next week. Patterson reported robust quarterback in november where the company reiterated its more positive view on demand in the dental market, courtesy of lower gasoline prices and comparisons. Theyve made solid partnerships. Trading a little less than 20 times earnings. This is a situation where it makes sense to pie up for best of breed rather than for second best. Part of that is bah pattersons management have said they have little visibility into dental equipment trends, which is why the company didnt raise its forecast for for 2015. Again, i want to stick with the best, henry schein. What if you want something more proprietary . How about sorona dental systems. Its a leading manufacturer of hightech dental equipment across four main categories, including computeraided dentistry systems, imageing systems, Treatment Centers and instruments, and the stock has shot up from 77 to 89 in the last two months. What moves these guys have had. When you hear that patterson and henry schein are doing well, especially when it comes to distributing higher tech products, thats good news for sorona with a product cycle kicking off my sorona like i could really not do that, right . I mean, did you not i didnt put it in just to do that is correct but it did occur to me. My sorona will be growing its revenues faster than wall street expects and it will send the stocks still higher. Lets not forget one of the controversial companies, the one that products go directly in your mouth. Im talking about align technology, algn, which you might recognize as the maker of the invisilgn systems. You cant even see them. Look. Okay. I dont have them on. I got you, right . The most recent quarter at the end of october was terrific. I think it has awe lot of theed up side as the economy improves and more adults will grit their teeth, like mine at the bottom. I had i had the braces earlier on, but i cant afford to get them fixed in a toejtsly nonembarrassing way. The north American Company saw increasing volumes. Things are looking up. Its selling at 5 stake in the company, and the shortage has increased pretty dramatically of late. Im inclined bet with the bulls on this one, but i cant blame you for wanting to take a pass if you are worried the short sellers might know something you dont. Thats why im giving algn tech. Then dentsply. They get business from europe, so you better stick with henry schein or even patterson. Heres the bottom line. The dental space is heating up. Henry schein is my favorite way to play the group, but if you want to get creative, im willing to