tv Mad Money CNBC December 1, 2012 4:00am-5:00am EST
i'm jim cramer, and welcome to my world. >> you need to get in the game! >> firms are going to go out of business, and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere -- "mad money," you can't afford to miss it. hi, i'm cramer. welcome to mad money. welcome to cramerica. a lot of people want to make friends, i'm just trying to save you money. my job is not just to entertain you but educate and teach. call me at 1-800-743-cnbc. after a roller coaster day, the averages closed almost unchanged. dow gaining four points, nasdaq
slipping slightly, 0.6%. we can talk all we want about what's going to happen next week in terms of earnings, stocks. and we will. but this time our game plan begins oddly and strangely on a sunday. sunday when the treasury secretary of the united states of america will be on "meet the press" addressing the fiscal cliff situation. as a student of secretary geithner who has studied his every move, i believe he will trace out how we are going to avoid falling over the fiscal cliff and get a deal! in part because the two sides aren't that far apart. they sound like they are but they may not be. both sides recognize that we will be in a recession very quickly, maybe even as soon as the second quarter --. >> ah! >> if they don't compromise. so listen to me. the tax hikes are so severe. [ audience boos ] >> the spending cuts,
particularly the cuts to the military, are so draconian even some of the most extreme republicans who think compromise is a total betrayal, they fear the economic consequences of cliff jumping. once a deal is reached, if we want to fight over tax rates, tweaks, and deductions, it could be game on in 2013. i don't regard this as kicking the can down the road. i believe this will be comprehensive enough to address everything from the roll back to the clinton year capital gains rates, sorry, that's a tough one to swallow, i know, i think it's going to happen. to a plan to keep tax the same for 98% of americans and raise the debt celling so we can at least for a year put washington in the rear-view mirror. wow, can you believe that? there'll be some spending cuts to appease republicans, too, once they've bothered to identify the cuts they actually want! as much as some may believe that there's no incentive to rise
above partisanship, the dramatic rates of income of these fiscal rates give to tens of millions of americans who happen to be voters. of the 2 million jobs that could be lost, 1 million of them will most likely comes from the defense sector. at a time when china is rising. you see those planes land on that aircraft carrier this week? the middle east is boiling. i don't know. did we really want that big defense budget cut? i mean, maybe nothing more than the decline in spending is the war in afghanistan winds down. saving about half a trillion dollars over the time. maybe more. the areas where the defense job losses take place they look mighty red to me, at least on the electoral map. yes, you'll have to say goodbye to the fabulous 15% dividend rates going back to the ordinary income tax levels, and the capital gains rates will rise, not as much. the wealthy will pay what they had to pay percentage-wise during the best period for the stock market in my lifetime, the clinton years. i don't want to pay more tax. you don't, either.
that's all right, i mean if you're in that bracket. if we won't necessarily live happily ever after because of that i think we may be able to take -- i might be able to take this pin off before new year's day. wouldn't that be something? get this pin off before new year's day? that's why i need you to watch "meet the press" on sunday. not just because i'll be on it, too. with that in mind here's your game plan for the rest of the week. not much on monday. i do expect more special dividends. we got the one last night from whole foods, earlier in the week from costco and rauf lauren. i mentioned those because while there are plenty of lists out there of what companies could declare them, i can't recommend a stock on a dividend basis if i don't like the fundamentals. give than i'm all but certificate than dividends will soon be taxed as ordinary income i suspect we'll be chockful of new declarations, let's give the money back. i like master card and visas as likely and gap store's gps. there are others like microsoft
and kohls that could do a special dividend, but i don't want you to buy either. or apple they bet don't do one. i don't need them to pay a special dividend to tell you to own apple. we don't trade up. just own it. it just owns it. the only news monday will be ford and gm sales. they could be huge. not in a way that will make a lot of sense. the first half of the month sales were weak as consumers in the northeast weren't doing much car shopping. the second half had to be on fire. sandy may have been the single biggest car destroyer since katrina, or maybe more given the fact that so many imported cars were damaged near the docks of the region's rivers. tuesday morning we hear from the brothers toll. here's the best home builder in the country it will tell you the story of the boom. if you remember there was a time when bob toll of toll brothers and eagles fan came on "mad money" during what turned out to be the early part of the housing collapse. he said he saw the light at the end of the tunnel.
>> all aboard! >> but it was most likely the light of an oncoming train. those days are gladly behind us. i suspect the toll tells a story that it goes down the fiscal cliff monday -- there's every day is fiscal cliff tuesday, wednesday, thursday. you get the picture. anyway, you should pull the trigger here to buy it here if the fiscal cliff does what i'm afraid of. brown foreman reports wednesday. this is an interesting one. why? because goldman downgraded it to sell. just last night. i've seen this movie. they were wrong last time. they'll be wrong again. i'm going to bet them a bottle of jack daniels that will be the case. in fact, i'll bet them a case of jack daniels that will be the case. if they're close, as we told you we like asina. we told you we like it. i would be willing to be a buyer of that niche retailer ahead of this quarter because of some merger gains i think we'll
hear about charming shops. but again only on news of setbacks to the fiscal cliff talks. we're not going to go in and buy anything these days. you'll get some representative congressman, senator come on say you stupid idiot. you bought stock and i'm talking on a microphone. you're a moron because i'm sending the stock market down because there's no progress. we have not one but two huge analyst days next week. only one an opportunity to buy. starbucks is coming to town on wednesday. you better get ready for one terrific show as the one and only howard schultz i believe will tell you that business is smoking in so many places in china to the united states and that tebana will be the next generation starbucks as soon as the merger is completed. triple vente cappuccino with skim wet, the cramer drink on the stock exchange floor if you do want to own one. the next day yum brands. it's coming to town. that company will have some explaining to do. i will have more on what yum needs to tell us. suffice to say the sting of the
earnings shortfall last night will still be good with us no matter how good kentucky fried chicken might taste. also we hear from lulu lem athletics. i got a situation for how to trade this wild stock. wait until it looks like it blew up. it the reports early morning, that always happens. that's the pattern. then buy some. but listen, i'm sanctioning buying this stock at the opening only if i give you the green light when i'm on my other show. >> buy! buy! buy! >> it's called "on the street." i need you to exploit this pattern which is in part orchestrated by short sellers who always try to make the stock look worse than it is. you'll get the early look from me. i'm try to give it to you around 9:15 about whether i think the quarter isn't as bad as people think it is. the nonfarm payroll report on friday. normally that would be the first thing i talk about. number one. this time around i'm not going to emphasize it. sandy has made the month of november virtually irrelevant.
we can sweat it, puzzle over it. in the end we'll have to dismiss it unless the unemployment rate has shockingly dropped. which would be an odd anomaly, which would show that the country could pick up the slack of the northeast. i don't think that's going to happen. next week's game plan starts on sunday when treasure secretary tim geithner will appear on "meet the press" with my friend david gregory and hopefully explain how we're going to get out of this fiscal cliff mess. for once i actually believe we'll be able to bridge the cliff on the eve of destruction. and knowing that, i am both a guy who wants to take the pin off before new year's and i'm a buyer into negative capital chatter next week. not a seller, like so many of the pessimists out there. why don't we start with neil in florida. neil. >> reporter: boo ya, jim. it's neil in florida. face book dropped zynga, what
should i do? hold or drop zynga? >> have a little january effect. everybody selling that thing nine ways to sunday. bad news. maybe they'll finish accepting by the end of december. and then you sell in the first week of january when it should lift. let's go to ramon in california. ramon? >> caller: hey, jim, boo-ya, baby, calling you from riverside county but born and raised in the san fernando valley. i'm a frequent watcher, jim. thank you for all that you do. >> thank you for that. that is a -- go ahe. >> caller: my question is, jim, with the recent news of a possible takeover on walter energy what is your stance, sir, on possible hold or buy on the stock? >> here is the problem with walter, i cannot recommend anyone buying stock on a takeover basis when i think the fundamentals are not going the right way. the fundamentals are not going the right way. let's go back to florida. bart in florida. bart. >> caller: yes, jim, i really enjoy your program.
i see where the earnings on tether pharmaceuticals has been reduced. i wonder what you think the future of the stock looks like. >> i got to tell you something, sunshine that stock was down about 1.70 when that news came out between 7:30 and quarter of 8 and it rallied, it rallied t rallied hard. up 13 cents. my take is this. i don't like it. i think it can go to 42. and then sell sell sell. keep an eye on sunday's "meet the press" for yours truly and secretary geithner to tell us about the fiscal cliff. if we hear we can bridge it, it's all about trying to find out the next special dividend stock and getting ready for a rip-roaring rally. "mad money" will be right back. coming up, software sensation? some in tech have struggled, s.a.p.s push has sent its shares skyward. tonight, cramer gets the hard
facts on where this software giant could be headed in his exclusive with its ceo. later, what the heck? office max has defied the streets expectations causing its shares to double this year alone. can it continue to supply you with profit or is a paper jam around the corner? plus, still yummy? shares of yum brands were tarred and feathered today as the owner of some of the biggest fast food brands had a less than satisfying outlook. is this your opportunity to order up some shares or cut out the fat? don't miss cramer's take on "mad money."
created equal. while tech stocks stuck in the past have been crushed, hewlett packard a good example, the companies that have embraced the future have been rewarded. not just apple or amazon. consider sap, the giant company that makes software for the enterprise. s.a.p. doesn't make a red-hot gadget. it's better than that. s.a.p. has a vision of where the future is headed. they have moved into applications for the mobile, cloud, memory computing, big data. all the big themes i talk about constantly. the strongest themes in technology. and s.a.p. dominates them. that's where you want to be. so tonight we have -- sap refused to allow the world to pass them by or be bound by the confines of a weak europe including germany appears to be on the brink of recession. the last quarter was fabulous, best in its history. stocks a half a point off its high. terrific 51% gain since i got behind it on august of 2011. it's not done. i think it has room to run.
let's check in with bill mcdermott, the ceo of s.a.p. welcome back to "mad money." >> good to see you, jim. >> best third quarter in history. >> yes. >> how is it possible? >> we're focused on the nexus of force as you mentioned. when we put the strategy of the company together we were determined to double the addressable market. where's the world going? it's going mobile. do you know anyone that doesn't have a mobile device? >> no. and i don't want anything else frankly. >> exactly. there's more mobile devices in the world than toothbrushes. that was good enough for us to focus on mobile. >> are you still the largest buyer of some mobile devices? >> yes, we are. i don't know if we're the largest, but we're up there. we have done a lot of work with apple no doubt about it. we focused on mobile an we focused on big data. data is doubling in the world every 18 months. so it's probably a good idea to manage that big data and have the crystal ball for the
enterprise which is sap hana where you bring all the data structured and unstructured into main memory so you can google your data. >> bill let's put anytime english for people. is there a bigger piece of data out there than every bank or bank of america constantly being used? and what did you do for them? >> we took bank of america. they used to close the bank at 4:00 in the afternoon. work all night to figure out where to invest their cash. that was an all-night process. lots of people. now hana does it in minutes. in minutes! >> at 4:30 they know what they have. >> they know what they've got and they know exactly where that money's going. >> saves them a fortune. >> and their investors will be happy because the money will go into the right play and they know it. >> it's not just banking. that's a good vertical field. you bring up caterpillar lately in your presentations.
what did you do for cat? >> cat wants to do things like smart farming. their big iron should be in those farms actually really understanding the turf and the dirt and what's likely to happen for the farmers so they become a strategic adviser to the farmer with their big gear. so you now take business models and rethinking them and innovating them in ways that were never possible. nonfu springs in china. they go to a spring, bottle up water, put it in trucks to deliver to their constituents. that process was five hours. now with hana we have the transportation plan figured out. not from five hours, in 2 1/2 minutes. what does that mean? 30% lower transportation costs. 15% lower total costs for their company. 4% margin improvement across the enterprise. the winning strategy. >> yes, it is. but now i want to one up that. tell me what you've done for eric rubin and the nfl. i'm very tired. we have a commissioner here for fantasy football. sometimes i want to wring his neck. he says i can't get the download of the waiver wire for multiple hours.
this is a rival website. what have you done for nfl.com? >> eric and roger goodell, these are great leaders. they know what to do for their fans. they want to improve the fan experience. >> they pick up the phone and they call you? i know you call everybody. >> they call me. exactly. or i'll call them. as long as we talk we can solve problems. now it will be run on sap hana in the cloud. oh, my god. now you've got people getting immediate answers to their questions. you get your favorite players. pick your favorite teams. nfl wins the game and you're a happy fan. >> we're going to try it next year. we may wean ourselves off the guys that we're currently using as nice as they are. did a great acquisition. it's already apparently paying off. ariba. what are they doing for you? >> it is the e-bay of the enterprise. think of it this way. more than four times the amount of commerce that goes through ariba -- excuse me that goes through e-bay goes through areba. more than four times the amount of commerce. >> in that global network they
have in the matching network they have? >> exactly. so 350 million u.s. dollars go through the ariba network each and every day, but it's an addressable market of 8 trillion u.s. dollars. so you're connecting buyers and sellers in a global business network. what does that do for the customer? i got everybody competing for my business. i'm going to get a lower price point. >> okay. i get that. now, our friend peter mcclausen, i'm sure you know, he brought in sap and we were always anxious to have it done fast. we made a series of acquisitions. sometimes they just can't call you and have it be done in a day, can they? >> here's the deal. the days of eld old implementat have radically changed. why?
because you can put it on the cloud. so many companies today are going to innovate at the edge of the enterprise for their people, their suppliers, their customers or their money. and they'll innovate on the edge of the enterprise in the cloud. or some company, small, mid size as an example and some large once will run their entire company, either a public or private cloud. the good thing about s.a.p. is that we can run an entire company in the cloud or innovate at the edge of the cloud. so the days of old long, time-consuming implementations over. >> last side. they're waving me off. i'm not done. >> please go. >> europe is incredible strong for you. we know europe is falling off a cliff. so how could on one hand europe be falling off the cliff and on the other hand very strong for you? >> think of it this way. if companies have less revenue they got to reset their cost base. they'll have to do more with less. software from s.a.p. will help them do that. also if you look at certain markets in europe like germany, middle east, africa, there are some parts that are really growing. and with very strong brand. if you want to grow your revenues, be mobile with your consumer, leverage the cloud for lower cost, optimize your supply chain, whatever you want to do, s.a.p. does it all. >> it does. normally someone might say jim why did you give him that last minute free pass?
that's what happens when you got a stock as fabulous as you are. you're able to tell the story. >> jim, i have 65,000 people and an ecosystem six times that size that's passionate about the customer. what we tried to bring to this company is a customer centristity and innovation. >> bill mcdermott the co-ceo of s.a.p. we may have to move from that other website for our fantasy football to nfl.com because of your work. trying to make you more money. >> thank you, jim. coming up, what the heck? office max has defied the streets's expectations causing its shares to double this year alone. can it continue to supply you with profits or is a paper jam just around the corner?
take office max, omx. smallest of the three big office supply chains. this is an industry you'd think would be in terrible shape right now. >> the house of pain. >> after all, office max makes the lion's share of its money selling supplies to small businesses. and we know that it's a very tough time to be a small business owner in this country. most small firms aren't expanding. they're not hiring. we're not seeing much in the way of new business creation. in part because of worries about the fiscal cliff. have entrepreneurs sitting on the sidelines. who wants to start a business without knowing what the capital gains tax will be, tax code rate. plus the whole office supply industry has been shrinking for awhile, not just office max but office depot, and even best of breed staples, as companies shifted away from using lots of paper towards digital solutions like apple ipads. meanwhile there's not that much demand for the technological devices some of the companies sell which have become
increasingly commodized. think personal computers. just witness the hideous performance of best buy. despite all these big perceived big picture, office max has been rallying like crazy. stock has run up 122% for year. yes, 122%. and it's fallen from 4.26 from the beginning of august to nearly $10. right now where the stock is less than a point off its 52-week high. is that -- well what the heck, right? five months ago this stock had been left for dead. but now somehow office max has managed to find new life and become a monster good performer. just when you expect the company to be take it on the chin. what the heck is really happening at this company? could it be that perhaps we're simply wrong about the sector? maybe that's the judgment. that the office supply business is much better than we thought?
and office max is leading the charge? no, no, no, that's not it. we know because while competitive office depot is up 56% for the year to date an excellent move not as good as office max, staples which was once considered to be the best of breed in this base is down 16% for the year. so there's no industry-wide turn. there is no rising tide lifting all office supply boats. this is a company-specific move. i think it's got two causes. expectations were incredibly low last year. office max got put through the m metaphorical meat grinder. it was horrible. falling from $17 to $4. as the company came into 2012 the ball was set very low. when the expectations are that low, even lousy results can take the stock hire as long as they aren't downright pitiful. last quarter office max reported only a 2% decline in same-store sales, in line with the street's expectations and not answerly hard which was enough to good
the stock some lift at these levels. basically, even though office max has rallied this year, it climbed from $17. it still has a way to go before it's back to even. when you look at it in that context, this rally doesn't seem completely insane. the second cause of the move, office max has been trying to get its house in order. it is trying to take control of its own destiny. it announced it was reinstating its two cent per share quarterly dividend. not much. the stock yields about 1%. it also told us it was conducting a comprehensive capital allocation review. designed to simplify its balance sheet. a couple of important elements here. office max got caught up in the terrible lehman bankruptcy. they had bonds backed by lehman connected to the sale of certain timber assets. the bankruptcy courts resolved this in september. office max debt was reduced by about $735 million. big deal considering it's only an $860 million company.
two weeks ago we learned about the ipo of boise cascade. what a great old name. a private company that made paper, corrugated containers, wood products and building materials bcc. used to be a big position of mine in an old hedge fund of mine. i was able to swing around a couple of them. 100 mill. office maximum owns 20% of this company. ipo will unlock hidden value by putting a hard value on that investment. office max is supporting the sale of its crocksley business in new zealand which is a wholesaler that does some manufacturing. we should hear about when the company reports its fourth quarter. that won't be until early next year. impending boise cascade ipo, new zealand business, it became apparent that office max was worth more than people had thought when they initially wrote the company off and left it for dead. investors thought this stock was a value trap. turns out it has real value. as the company had a better balance sheet than we imagined.
a bunch of hidden assets. meanwhile, office max has a leg up on competitors in the office supply business. all the office supply states are shutting down. shutting their stores to reduce their footprint. too many of them. office max was ahead of the curve in this regard. they started reducing their square footage early. you probably saw some abandoned stores. i know i did in my neck of the woods. in 2005 they started. way ahead of the competition. especially staples which decided to sit back and wait for its competitors to close stores in hopes that it might not have to. since office max is the smallest player in this space, about 900 stores they have less to lose than office depot. staples and office depot do business in europe, another reason why the stock's outperforming. lately there have been whispers and you go on the web, you google this thing and you're going to see it. i googled it. i don't want to be a part of it but possible merger between office depot and office max. it's true that office depot and staples tried to merge in the mid '90s. justice department nixed that one. but the dynamics of the office
supply market has changed a lot since the rise of the internet. i think it's more likely a deal would be allowed to happen in this base. staples buying office depot was the number one player by the number two. the other merger number two player combining with the number three. justice is always easier on those. i never like to invest on takeover speculation. but there's no doubt office max would go higher if it happened to catch a bid. even after this run, office max is still much cheaper than office depot or staples on an enterprise value basis. again, i'm not recommending this on a takeover basis. that's a sucker's game. here's the bottom line. i wouldn't recommend buying office max up here. it's just had a huge run, people. but the company's doing better than the competition. and it's balance sheet is a heck of a lot better than anyone believed six months ago. if we get a huge fiscal cliff-induced pull back i think you can feel good about pulling the trigger and taking down some office max if it were to drop a couple of points. as it turns out the value is
there. and the better earnings stream, it could soon to follow. let's go to kelly in pennsylvania. kelly. >> caller: a big booyah from bucks county, pa. >> that's where i lived for a long time. i'm thilrilled to have you on t show. what's going on? >> caller: my question is about microsystem inc. the company consistently beats analyst estimates an has had impressive double-digit revenue growth. is this a good technology play in the retail and hospitality industries? >> well, you know, it is. you know what? this is really interesting, this company. we looked at this before. i don't understand why the stock isn't doing that well. it's down for the year. let me do this. $3 billion company. we're going to do some work on this. because it is a little confounding. the company's doing okay. you're absolutely right. the company is doing okay. we'll do more work and come back. let's go to steve in new york please, steve? >> caller: greetings from the beautiful finger lakes of
central new york. >> i love the finger lakes. what's going on? >> caller: two-part question for limited brand. it looks like the revenue numbers are finally catching up with the same store sale numbers as evidenced this past month. the stock has been in a trading range 45 to 49 for several months. today it closed at 52.15. is this the breakout we've been waiting for? >> i'm going to say yes. no one had a good month in november except for amazon and your play, and limited. if you can have a good month of november when a lot of businesses were shut down because of sandy, who knows what could happen during the closer we get holiday season period like right now. limited's for me. it's for you. what the heck was up with office max? i thought it would be left for dead but it's coming back to life. the company has some things going for it. if you're looking to get in, look, you know you'll get some congressman or senator saying there is no deal. at that moment you pull the trigger, and you buy. >> buy! buy! buy! >> don't move, lightning round is next.
it is time! it is time for the lightning round! buy! buy! buy! sell! sell! sell! are you ready? it's time for the lightning round. let's start with michael in nebraska. michael? >> caller: hey, jim, a big nebraska cornhuskers booyah, man. >> i like your kicker. one of the good players on that team. what have you got? >> caller: excellent. w.i.n.? >> i think china is coming back. i'm always a believer in steve wynn. how about john in california? john? >> booyah, jim. my question is double down on barnes & noble right now? >> no. i went over that with a fine tooth comb. a lot of people didn't like the
book basis. a lot of people didn't like the nook business. unfortunately those guys i love them they are a temple of secular learning. you can't own the stock. illinois, charlie. >> caller: boo ya, jim, from central illinois. >> heartland. what's going on there? >> caller: well, i wanted to thank you for your excellent presentations scaling in and out of stock transactions. last friday it was very good. i'm interested in scaling into rentech nitrogen. rnf. >> with that good yield i think you're taking the appropriate action. i do want to scale into it. i think it's very attractive here. kevin in north carolina. kevin? >> caller: yes, jim, a big boo ya to you. calling in about applied materials. >> oh, boy. all right, mr. tar heel. that's got a 3.5% yield. it's the only reason i would want the stock. sell! sell! sell! sell it because i don't think it's got anything cooking. laura in new york. laura? >> caller: hi, jim, it's laura
from new york. how are you? >> how are you, laura? >> caller: good, thanks. my stock is allen communications. buy or sell? >> i like it. it had gotten beat up because of the possibility that people thought things were going to go awry in israel. the fundamentals are good. my friend who does breakout stocks tells meet fundamentals are terrific. i am a buyer not a seller. a lock. let's go to lee in california. lee. >> caller: mr. cramer, thank you very much for all the wisdom you share with us. >> sure do try. what's going on? >> caller: my stock is valley. i've been long, with the stock down like it has been, should i hold, fold, double down? >> this used to be 28, 20, 32. it's been cut in half. stephanie link, you saw her maybe this afternoon, we both think that at $17, this one is the chip. >> buy! buy! buy! >> this is the way to play china
because it's a huge iron work company. i want to own vale. let's go to terrence in new york. >> caller: hey, jim, i'm doing a portfolio for my professor alexander. i just want to know about general dynamics. >> i think general dynamics is a winner. why i do say that? i think we will avoid the fiscal cliff. if that's the case, it's a $66 stock and you could go higher. that ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. >> believe it or not, i actually used to be a mountain climber. what do you think? always had the best gear, climb up from whatever crevice or abyss faced me. this is the day when my equipment felt a little superfluous. buckle my helmet, will you?
wow, am i ever ready for this baby. >> hi, jim. john jay, i don't know if anyone ever told you, but you resemble billy joel, not lennon like you showed that portrait. >> if i look like billy joel i'm done eating. done eden. that's a play on where you're from. i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make money. i'm just trying to -- without regina i'm lost. without regina i'm lost! we got some great news to report tonight. our fabulous executive producer regina had a baby girl today. we want to welcome to the world rg2. why do we say rg2? we don't know the name yet. we know she's a winner just like
call about in contact, a tiny $275 million cloud-based software company. software service companies. in the call center industry with the stagnate telecom business. i love having cloud applications for transforming business model, too early to buy this one right now. companies have to turn a profit. we need to see more execution on its cloud offerings. if you're looking for a cloud play, stick with salesforce.com or s.a.p. then october 30th, albert in florida asked about textainer group holdings. tgh for you home gamers. largest container lessor in the world. 206 million marine cargo containers. my concern about this one twofold. heavy customer concentration a few large shipping liners. second it's hurt by the declining global trade environment. it may look cheap relative to its peers. but you have to steer clear of the stock until the fundamentals are improving. glenn in illinois had a question
about celdex, promising a line of treatments for unmet medical needs in brain cancers and advanced breast cancers. the data seen so far is pretty promising. company has a rich pipeline to support its valuation. i say wait until december 8th when the company will pass along data about cdx 011, it's advanced breast cancer treatment. right now the stock is run too much for me to give it my blessing like the dex. up 128% year to date this month. but if we get any significant pull back after that december 8th breast cancer data gets digested, i think celldex could be worth buying on the weakness. the real value right now is in their brain cancer program. why don't we wait until the week after next? if you get a big pull back, i'm going to give you permission to pull the trigger. okay. just a second. want to be sure about a price. dnyx.
excuse me. what makes me -- i'm a little gun shy on these smaller biotechs because we know we've had a couple of blowups lately. that's why i'm not endorsing that thing head on. wednesday jeff from virginia asked me about hillenbrand. i said i would get back to him. they're in a morbid line of business. they're the largest producer of burial caskets in america. stock's had a big move in the last two weeks, reporting a strong quarter and making an acquisition of caperion. they make compounding and bulk material handling equipment. i like where they're headed. i like the 3.6% yield. after this run let's wait for a pug back inspired by the fiscal cliff woes you know we have that more of those in the future. before you think about buying this one, just straight out this one does look like a winner. i'm endorsing hillenbrand. the company has been mentioned as a candidate to give you a special dividend before year end to beat those higher dividend rates that i now think sadly are definitely in the cards. now it's time for some tweets. let's take our first tweet.
this one is from @w3kn. he says, i think he's a he, he says "congrats to regina. are you guys playing nice while the e.p. is gone?" this is in reference to regina, who had a baby yesterday, named her child vesper. great family. we miss her horribly. we have a good backup staff because she knew that one day she was going to have this baby. next tweet from mike_ded. his tweet says "regeneron since last winter has been a beast. what's the rating for the long term? stock's fell very, very hard today. i think it's profit taking. by the guy, the guy who runs the company, i think he's got much more up his sleeve. you want to be a buyer of that because their drug which is used for macular degeneration is better than the other guy's and has very few safety concerns.
regeneron. that stock's for me. "mad money" back after the break. >> coming up, still yummy? shares of yum brands were tarred and feathered today as the owner of some of the world's biggest fast food brands revealed a less than satisfying outlook. plus is this your opportunity to order up some shares? or cut out the fat? don't miss cramer's take.
they turn on the colonel in china? the shocking news last night of the decline of kentucky fried chicken sales in china sent shockwaves through yum brands today. the revenue comparisons that yum is going were staggeringly fabulous. vrt virtually unbeatable. but that doesn't mean we can excuse a minus 4% number this time around. as much as yum is based in the u.s. and owns iconic brands like pizza hut and taco bell, under its roof as well as kfc, china makes up 44% of the company's sales. we should think of yum as a chinese dog with an american tail. does this mean that china which has been showing signs of life is back sliding and all the big expansionist data we've been getting is a false tale? i heard a lot of that chatter today. i'm putting it on the line for you tonight. absolutely not. too many good things happening in china.
including a series of bank reserve injections that have really stimulated industrial growth. i think china is going like this. as far as american companies linked with china, it's been a real mixed picture lately. nike has had a very nice run in the united states. but china's been a big disappointment, including concerns over too much inventory. coach continues to have a robust business in china, and is raply expanding there. the latest weakness came from the united states, not china. starbucks. i think china is a growth story there frankly. the high quality problem of lines that are too long. i think we'll hear amazing things about china when howard schultz has his analyst conference in new york on december 5th. it will be a great con fab. in fact, i would use any weakness in starbucks to buy the stock ahead of that meeting. with europe under control, the u.s. doing quite well, with china expanding and india blooming, not to mention the splendid addition to t barn to the family starbucks has a terrific story to tell and they can tell it. i think it may be a one off situation. the business of fried chicken,
it's cooled there, it's cooled in china. i can't draw any conclusion. plus it's worth pointing out the united states lowered a bit, too. it was, alas, a disappointment. but yum is a remarkable company. my inclination would be to hold on to it no matter what. if you really need to get out of it maybe at a higher price. perhaps at next thursday's analyst meeting. for yum in general it's worth pointing out that the restaurant stocks have become quite inhospitable of late. with everyone from mcdonald's and darden, cracker barrel and chipotle disappointing the street, only panera has remained strong. my takeaway please don't draw conclusion that china's back sliding. we have way too much evidence to the contrary. just conclude that something's awry right now in china for yum, for the colonel. and just specific to him. and that not too long from now chairman ceo david novak will fix it so ultimately there will be better times ahead for yum. stay with cramer.
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