Transcripts For CNBC Mad Money 20150116 : vimarsana.com

CNBC Mad Money January 16, 2015

Confidence number in 11 years. Thats how the market rebounded. Climbing 191 points s p vaulting 1. 34 and nasdaq 1. 39 . Yep, you needed to see oil stabilize. Buy buy buy. And see the consumer final recognize that gasoline is not going back to 4 and change any time soon. To encourage buyers to take advantage of the incredible bargains that this seemingly endless selloff has created. It doesnt hurt that for a day we didnt get earnings disappoints, a bunch of regional banks last managed to not stink up the joint with their awful numbers. And the oil service giant made us feel its not the end of the world for its clients. We know the market is only as good as the last company has spoken and thats why the game plan for next week is more important than ever the brief res pit or the start of Something Real that we certainly deserve. Lets start with monday. Its Martin Luther king day. Markets are closed monday but rest of the world rages on. I think were going to have significant numbers come out. On the surface, we shouldnt or at least would not like to care about a couple of eurozone statistics. We got them though. We have current account status and construction output from the eurozone. These days stuff like that is going to matter. Weve got to focus on it. Thats because were waiting to see some sign, any sign that the Lower Oil Prices and weaker euro are starting to impact the european economy in a positive way. Perhaps these numbers will give us an inkling. It could be a winwin. If the numbers show any pulse, well begin to get less worried about the earnings of u. S. Companies that do business over there will get a little more and if theres no pulse then perhaps the European Central bank which meets thursday will do something bold enough to impress the market. Right now we feel they we underwhelm us taking our markets with them. That could happen because we are linked whether we like it or not. I have become an american firster here at least when it comes to stocks. Im much less concerned than everyone else you listen to. I do care though about some chinese Economic Data including Industrial Production and retail sales and gross domestic product. Weve seen no gains whatsoever from the oil import oil country that is china. Maybe we see positive change in the numbers that come out monday maybe thats why the Mineral Resources stocks rallied today. Tuesday were back in earnings mode. And i think were going to be on rocky turf. Right now were basking in the halo of the oil worldwide. That caused a wave of bullishness on all things oil. On actual halliburton reports and they have a response to the weaker u. S. Market than slob was willing to talk about. Our market they said was not great. But the rest of the world is still drilling. We could see a reversal because halliburton is domestic sen trik. We hear from two totally problematic stocks. The first is netflix. And all i can say, it better be good. It caught not one but two important upgrades this week. It has a lot of hot money in it and i dont like my stocks to have hot money in them. The upgrades keyed on two things, the new show lineup Better Call Saul and internet signups which better be robust. All this week the high flyers and cold stocks were taken to the wood shed. Some rallied back today but that group has been among the most troubled of all stocks in 2015. If netflix is strong youll see money cycle back to all of the cold stocks with lofty i should call them violations, valueation valuations. This can have an overpowering influence on that entire cohort. We get reports from ibm, its a real dog. Remember that show . We need to hear that finally they have an upside surprise would that be something . Or a meaningful restructuring that could bring out value. If not ibm will head down to 125 in the straight line. I think a lot of people will request whether Warren Buffetts loyalty is going to remain. Wednesday we here from a key dow component, thats united health. They are an hmo, if unh has growth in the age of obama care youll see a boost in all Things Health care related. I dont believe how important this report is going to be and how Little People focus on united health. We also get results from another united, United Rentals, uri, its big equipment, rent it and capital goods and crushed by the decline in oil because it happens to have an oil service arm. Almost like if they close it the stock would go back to 120. If United Rentals says youre way too negative you might see an eruption in the upside in all things machinery. One that i care about, General Dynamics, the defense stocks were the Strongest Group in the market going into 2015 Even Stronger than health care. The company talked about how other countries are arming themselves and not relying on the United States as a protector, thats the big secular growth theme. Why i want you to own General Dynamics ahead of the quarter. Many of the higher minded people wont be Pay Attention on thursday. Theyll be hanging on Central Bank President s every single word. I cant control what he does. I do understand him but i cant tell you which stocks should be bought in a marketwide decline or more accurate one it disappoints. You might want to buy Union Pacific if it gets hit after it reports on thursday morning. People are worried about dragi, theres no railroad to europe. I dont know if youve seen that no train station that goes from philadelphia to london. This is a Domestic Company but its been crushed in addition to many other its been crushed because people think its too linked to oil. Come on. Ships a lot of frack and sand. I think it has a good story to tell. If it gets hammered on thursday this uniquely America First stock might be a place to buy. Starbucks reports thursday and people in knee jerk fashion sell the stock. I say why not way for the selling and pounce. In the meantime i want to hear who will replace troy alsted as the fabulous executive goes on leave for personal reasons. Hell be missed. Finally verizon on thursday yields 4. 7 i think its strong and dividend is safe. Youll be able to get a terrific bond market he quifl lent stock at the very cheap price. Dont worry, theyll do well. Maybe get a 5 yield. I want you to take that. Finally we have two key stocks to give us an excellent overview honeywell, hon and general electric. Im itching for you to buy honeywell because ceo and neighbor dan cody has been about as bankable as any executive i follow, which is buy heswhy hes in get rich carefully. It may not have a good risk reward going into the quarter and we might have to wait to hear results. Theyll give us a good read on oil and nonresidential construction. General electric, more problematic. They changed business mix, steering towards energy and away from finance. We dont mind that move out of finance. I mean they still got some but thats been a grave yard for many. For oil and energy infrastructure, all i can say is ouchy, i would have said ouch but they did go up today. Two other thoughts we havent big initial Public Offerings i want to talk about. Next week its called box, i looked at it a lot. I think it will be a home run. Box. I dont know if you can get any shares in the deal but it will trade instantly to premium and perhaps this market has gotten so tough that you can beg your broker for a couple hundred shares. Take it. I dont know what day its going to come. If markets were open monday, we would be buzzing about big news after the close. Pepsico announced that bill johnson and adviser will be joining the board. Remember, we may not but he was on the board of heinz after a big dispute. This could solve the dispute between pelts and pepsico. Who wins . You do if youre a shareholder. We have to deal with europe again next week and it will color everything that happens. If you embrace my America First campaign at least for stocks then you might be able to snare real bargains. Chris in maryland. Caller boo ya from maryland. Bank of america, in 2009 i acquired shares when the stock plummeted fort financial crisis. Ive just recently seen the stock go all the way up in the Fourth Quarter in 2014 to 18 a share. They had not so good news on their Quarterly Report that just came out. Would now be the time to buy back into bank of america for the i have to tell you, my travel trust sold bank of america a point and a half ago and we do not want to buy it back. We think theres other situations that have a little more upside and dividend. And certainly have a little more momentum. But they tend to be regional banks. Sun trust, travel trust owns that or you can buy another financial that i think doesnt have the kind of risk of bank of america. Thats a mastercard or visa. Lets go to ivan in illinois. Caller hi jim, i enjoy your show. Thank you. Caller can you please tell me why delta stock appear to be so undervalued relative to other airlines in the industry especially when you compare earnings per share and so forth . I think a lot of people feel because of the combination with u. S. Air, american offers more leverage and upside. People feel like i want to be in southwest, the most consistent. Delta hasnt done anything that makes people excited other than just do a good job as an airline. The other two are viewed as having catalysts or having a sleep at night kind of rap at southwest air. Delta is caught in between. Thats why. When we hear them next week lets make up youre own minds. Dale in mississippi. Caller booyah jim, im calling about walgreens. My sympathy for your father. Thank you for your kind words, i miss pop every day. Walgreens is good. I like the combination, i think this is going to be an International Power house. Does that mean its going to be right there and be a power house . I think its going to take time. But you own this one for the long haul. Dont worry about switzerland or france just worry about profits, its going to have them. Dont forget America First. Embrace that campaign and you might get good bargains until we have to deal with europe again next week. One of the top plays in treating rare genetic diseases and its rallied a monster 200 last year. Can Ptc Therapeutics keep it going. I have the ceo. Biotech, the next generation continues with a look at a potential block buster on its hands. Plus can nelson pelts and company put pop into pepsico with an adviser whos been added to the board . I promise you this you will not want to miss my take and you should stick with cramer dont miss a second of mad money. Follow at jim cramer on twitter. Have a question . Tweet cramer madtweets. Send jim an email to madmoney at cnbc. Com. Give us a call. 1800743cnbc. Miss something head to madmoney. Cnbc. Com. Shes still the one for you. And cialis for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. 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Tonight were taking a closer look at one of the ten best performing biotech names of 2014 called Ptc Therapeutics which rallied 205 and i think there could be more upside. They are an orphan drug developer. Like that company that i told he we love nps which is being acquired for a monster premium. They develop small molecule therapies, a way of fixing rare genetic disorders especially those caused by nonsense mutations in dna. Dmd, ultimately fatal orphan condition. The u. S. Launch could come next year pending fda approval. Other bioteches raising to develop for this illness. But ptc is alone in specificing a certain subgroup 15 to 20 of the population who are a particular genetic mutation. It could be worth a billion dollars in sales. Being studied by cystic fib rose sis and nps in phase two. A spinal muscular at trophy treatment, they are developing that with roche. Thats moving into phase one. Thats talking about mice. Ptc may have run up dramatically but also in the sweet spot of whats been working in biotech. Lets take a closer look with the chief Financial Officer with ptc and find out more about the company and the prospects. Welcome to mad money. Good to see you. Night to meet you. When i was going through my first thing when i read this wait a second dmd, we know indication cystic fi rose sis, you are working on subsets where no one is treating these conditions. Tell us about the dmb and window of whats so important if they get your drug. For all of these Rare Diseases, different mutations ultimately lead to the loss of protein. Its also true if cf and nps. If 10 or 5 of the people have that disease . Its between 10 and 15 . We estimate around 13 and cf around 10 . Nps, 60 to 80 of the patients. How do people know if they have that mutation . They have to go and get identified and sequence their dna to confirm it is a mutation could we do that five years ago . Its getting faster and cheaper to do it for the patients. One of the things i notice was and this is sad stuff everything you treat is very sad theres one if you get to people who are between 5 and 6 years old you might be able to save their lives. Later on you cant. You want to treat the boys its boys right . Yeah its predominantly boys because its an x linked genetic disorder and lies on the x chromosome. If they dont have it i was trying to figure out all of the research could be worth 1 billion. If they they have to be treated for many years and then ultimately they do die. A Health Care Health Maintenance Organization would have to pay millions over time to take care of these people unless these people are identified and take your drug. This is a muscle wasting disorder. Were trying to stabilize the boys and keep the healthy muscle healthy so it isnt so easily damaged. You want to take the boys as young as possible and this will be a chronic therapy. How about Cystic Fibrosis you have a specific subset . This is a mutation that is different and distinct from the mutations that vertex is working on. Its the most severe form of Cystic Fibrosis. How did you stumble on this whole Rna Technology . Its very different from companies that say were going to go cure Cystic Fibrosis. We have a different and unique approach to rna biology and Rare Diseases unlike the enzyme replacement therapies making the protein in the lab and infusing it. Our approach is to enable the patients to produce their own protein using a small molecule approach. Youre approved this is not something pie in the sky, happening right now. Last year was a monumental year for us. The european authorities approved our drug first ever in this disease for the under lying cause. Given that, that means youll have revenues and it would see if eu likes it what weve seen its rare that the eu likes something that the fda doesnt. Right, weve already begun shipping to patients in europe and a lot of countries outside europe that recognize the european approval. In the u. S. Weve got the largest study ever to be done in dmd, well under way. Will read out at the end of this year. People look into it theyll see its really only still talking about a handful of people in europe. The numbers are not big. It is a unique its about 2500 potential patients right now your enrolling just a handful have found it so far. Weve got were early in the launch. How many right now. We Just Launched in germany last month. We started shipping into france into spain earlier towards the end of last year. Okay i want people to know this is early but you do you are going to have revenues from this product and theres a Bright Future for it. European launches are slower than the u. S. But they do gain momentum. People know why its up so much because this is rare and its the only thing for these people. The cfo of Ptc Therapeutics if you want to know more about it dont buy the stock until youve read the presentation mad money is back after the break. Coming up the crushing decline in black gold has been crude to the players in the energy patch. But, could we be about to find the sweet spot in whats been april very slippery situation . Dont miss cramers take. Looks like we found a happy medium level with oil for the moment. Whats a happy mediu

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