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tv   Mad Money  CNBC  July 11, 2013 6:00pm-7:01pm EDT

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>> brazil has bottomed here. >> google. >> tibx. >> we have 13 seconds left in the show. milk it. >> what's your next cnbc >> i've got talking numbers. >> my mission is simple, to make you money. i promise to help you find it. >> hey, i'm cramer. want to make friends, just trying to make a little money. so call me. what do you qualifies me -- what
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is it caused in the market? now that we've reached these new heights, s&p climbing, 1.36%. come on, that's what's on everybody's list. >> why? being supported by fed chief. rick santelli to these critics, the whole move is invalid. unconstitutional. i got a different view i ask
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unfair -- closer good. when times are tough -- paying short sells and i'm not about paying against the fed in order to get the highest return for my rich investors. i did that. for 20 years. i don't want to do it anymore. i just want to help. that doesn't mean i was right. far from it. when i'm wrong, i'll point it out. hey, i don't care. i know who i play for. for you. the home gamers. trs there's no confusion for me? they're irrelevant -- despicable
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me? secondly. these new highs, would panic simply unacceptable. this bull market, right in front of our eyes. you decide need how to execute. we had a systemic risk in the
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market. after being some systemic risk, the whole darn suit to match the system could implode. that called for a strategy. if you needed money that was in the stock market for something big, it had to come out. that's a huge strategic goal. i chose to embrace it. when i thought the risk favored capital preservation, i guess i can say i famously chose that because the program my strategy was greetable. but then with the dow cut in half and systemic risk taken off the table by the feds when bernanke said no more banks would be allowed to fail. you had to change your strategy and once again embrace capital appreciation. now, almost 10,000 dow points later, that strategy is still in play because there is no
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systemic risk right now. hey, do i trim some of my gains? you know. do i go with dividend stocks? maybe i get more aggressive. high cap. growth. which am i looking for? those are all tactical concerns with the idea you're still trying to make as much possible by picking sectors and individual stocks. why is this so important to you? because the vast majority of the time i've heard people speak strategically about leaving the market. they've been top callers all the way up. their strategies have been defrked by today and dritives of yes, panic. i have an idea. let's have a little fun. let's expose them for what they are. people who got it wrong. maybe we don't listen to them next time. they hurt us. typically, these strategic bears called tops because they didn't like ben bernanke's handy work. they took it personally.
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look around. the actions of the european central bank before the bottom and the chinese aren't exactly what these critics want. just like a big dice roll. hey, wow, came up strong. the feds policies and our smart executives made what's happened happen. third, i regard new highs as validaters of the asset class itself. we've seen high frequency trading with policies from the government for saving. many of these issues, so poignantly described in this morning's charles schwab editori editorial, i congratulate him. no one else seems to be doing it. that means there's been no pressure on the sector. only the well heeled investors favor reckless innovation and
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two tiered markets like the one eamon javers is exposing with precision. javers reports on how some high frequency traders -- now, i know schaub has invested interest, but others have really what? why did they avoid it? even as individual investors were once the bedrock of capitalism. i'm hoping these can still be regarded as a legitimate asset class for your hard earned bucks. and i know it hasn't been. it's so tarnished that i wouldn't think. because of the fourth point. the other asset class can roll off right now. bonn fund so many sought refuge in, they've crushed people. small interest rate groups, hey,
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i like gold. you know what? that's insurance again. i like real estate. but the decision is simply to buy a home or not. thanks to the rapid decline in affordability, higher housing pric prices, the bond has been missed. but stocks, kind of where the reaction is. all time highs put the market back on front page. they show stocks have a pulse. they show they can win for you. new records for the asset class in the brief. now, remember, tactics versus strategy. has been able to sustain these recent gains without some turmoil and pullback, 2, 3, 4%. the market is not hostage. not hostage to the wholesale destruction of capitalism as we know it like it was four years ago. we have weathered bank failure, high unemployment, a vicious
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chinese slowdown and recently, the total collapse of the emerging markets as well as endless scammers. and we've still been able to hit new highs. and while the cynics will say, hey, it's too late. anyone who comes in now is a sucker. stocks aren't so expensive we can't maneuver tactically when individual stocks get it. and they do get hit. literally just crushed 10% within the last three weeks. to me, it's a verification that it's safe to come back to the market. not that you need verification if you're a regular viewer. here's the bottom line. clearly, the easy money has been made. the old time highs say that profits are still possible. and yes, still ahead of us, brand new. >> hey, jim, boo-yah from utah. thank you for all your stuff. >> doing my best.
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>> hey, i watched your show yesterday. you talked about norman and hold them. so, my question is with new skin. >> when i see it ebb to life, when i see these stocks, i defer to my friend herb greenberg and he's got a red flag on new skin, so i'm going to miss the upside. it has a big rally, i'm going to miss it. that's going to happen periodically because i don't want to get my face shot off by another shock that has been a red flag of herb's and congratulations to him. why? because you missed a big decline. if you listen to herb greenberg. danny. >> hey, dan. >> just a couple of comments. want to thank you very much for your program. i think it's really needed and and you're going a great service
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to a lot of people who need information and my wife and i used to be brokers in tampa and we had a couple of seminars every week and people really appreciate it. >> thanks a lot. thank you. >> can i make one more comment and that is if in the morning you're on the -- can you try and look at the camera a little more? >> it's harder than you think. i would love to be able to show that i have a fabulous stay cam operator in keith and don't have that in the morning show. which is why sometimes when i go out of the frame, i'm never out of the frame with keith. that's why this show looks the way it does. thank you, keith. >> okay, thanks for straightening me out on that. my question's about nokia. i notice that they came out with a fabulous new product this morning. has 42 pixels on it. have been getting very different ideas about whether that's a good investment or not. i thought i'd ask you and see
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what you had to say. >> i think that some things are call options on the possibility that things will go right and for the last 50, 60, 70 cents, i've said nokia is a call option on perhaps being acquired by microsoft. this is not blackberry. i think it's ahead of the game. any way, thank you for those kind comments. everybody had nice comments. guess who's back? ♪ is that despicable ben bernanke? hardly. yeah, the easy money has been made, but is there more to be made? yes. why don't we do it together. >> coming up, public display. from crowd computinging to pan fried noodles, a slew of new byes spark the highest ipo quarter in 60 years. but not all the offerings have sizzled. don't miss cramer's take on what separates the delicious from the dull.
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and later, browsing for a bargain. a more frugal consumer is turning towards discount retail rs, but which of these pennywise shops has the best chance to deliver you dollars? cramer's been shopping around. don't miss what he's found. plus, super bug scare. fears over new strains of drug resistant bacteria are spreading. its new treatments are giving doctors the upper hand against infections. could this keep your cash healthy? stick around for cramer's exclusive. all coming up on "mad money." are you sure we should take this billboard down?
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maybe i should take more vacations. celebrate my dad's birthday in south philly and suddenly, the market can't stop roaring higher. after this rally, we've got to have a high quality problem going here. you might be thinking that the easy money is made in the market. that's true, but doesn't mean that the risk reward isn't just as fable as it was a week or two ago at the right place. but there's one place where you can still make a bundle quickly. a place where the wall street investment bankers are practically giving away money. when ever we hit a rough patch, they'll do everything they can to lure you back into the casino. these firms under price the stob sto stocks of companies they take if you believe public, so they
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spike higherover and over and over again. i don't think they're going to stop soon. just consider the remarkable forms of the ipo market in the second quarter. this was the best quarter for ipo activity since 2007. we had 61 deals in the second quarter. holy cow. almost double we saw in the first quarter and they gave you a staggers total return of 21%. the ipos looks even better when compared to the increase in the s&p 500. ipos, they're the way to go, but you have to be select because not every ipo is a winner. that's why we want to look back over what's work ed in the secod quarter. i think we'll see something similar for the rest of the year, so when you're doing this kind of analysis, the most important question, what are the commonalities? what do the winners have in
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common and the dog ipos, the losers, also share sm. >> you have the ten best performing. the thing that stards out is that these are all growth stocks. nine out of the ten were companies that were unprofitable. the only exception was noodles. could be a second cousin once removed. more than doubling in its first day of trading, but the other nine have no props to speak of. four of the ten best, tech. bio tech. noodles, as well as fairway holdings, grocery store chain, which is been a remarkable performer. the best performer was consumer
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ipo. that's incredible. tech ipos up 17. health care's the strongest sector in the market, but not in the ipos. two energy ipos gave you an average of 10%. four barely beat the s&p, rising just 2.9%. the only sector was communications, where we had two deals down from the quarter. hey, isn't that ironic? this was supposed to be the year of the deal. now that the only deals seems to be the communications department and it's the ipo team that's still in the hearts and minds of investors. so, why did tech, bio tech put up such remarkable numbers? so for, 2013 has been the most active year in over a decade.
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more later stage bio tech firms out there that are better run and the fda has gotten down right friendly when it comes to approving a new drug. also helped by a remarkable run of the four horse men -- >> buy buy buy. >> cell gene, yes, bob did tell us that would happen last year on the set when stock was in the 60s. it's doubled. poor stocks, i've been saying all of 2013. now, a big pipeline and i particular want you to keep your eye on conomid and a big early stage pipeline. also check on envision health care holdings, the largest ambulance service in the u.s.
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how about the strength in tech ipos? a lot of the best were enterprise software companies. what i like to think of as, i told you it was coming back. keep an eye out for more of these service companies. i like this one. retail me not. you know, like retail me, retail me not. two i already mentioned, as well as sea world, which i told you to get a piece of before it became public. here, i want to you to keep an eye out for the upcoming nieman marcus ipo. now, before we go over the worst performers, i liked them, but interest rates spiked in the second quarter. while i still wouldn't housing
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fee long-term, i think you need to approach any with caution because so many investors have been spooked. plus, housing affordability has plumeted with prices going up in too short a period of time. how about the second quarter? out of the the ten worst performer, three were real estate investment trusts, which wasn't surprising. the others were dragged down by companies specific. for example, one of the worst performing ipos, go go. no, it's not a strip joint. inflight wireless access on planes. still needs to build out enormous network. even in a roaring ipo market, you still need to do your homework. i would love more communication ipos. these stocks are red hot. the sectors were health care and all things consumer. after reviewing the great data
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from renaissance capital, going forward, you need the focus on these three groups. you should be able to pick some serious winners especially when i believe the game has been tilted to let you win. after the break, i'll tell you more. >> coming up, browsing for a bargain. a more frugal consumer is turning towards discount retailer, but which of these pennywise shops has a best chance to deliver you dollars? cramer's been shopping around. don't miss what he's found. ♪ [ male announcer ] you wait all year for summer.
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the stock shot through the roof. thanks to a better than expected deal from family dollar. the action caused dg the largers player in the space. what the heck is going on here and what should you do about it? remember, the dollar stores are trade down places. they do better to reveal squeeze in economies not so hot. right now, consumer confidence is at a high. housing's better. economy feels like it's improving, so how is it that family dollar and dollar general are rocking? maybe it's got to do with the nature of the barbell economy. sure. maybe consumers in general are feeling confident, but there are a lot of people who feel the pinch from higher payroll taxes, expensive gasoline going higher
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this week and stagnant wages. plenty of people who have never set foot in a dollar store -- i go, too. why? because i find they're a great place to buy jumbo packages and good and plenty. this one, i got this the other day, they got mad at each other. my favorites. any way, even though up six cents of the year, never mind. some people say listen, jim, fido just imported a deal. not exactly. family dollar soared yesterday. the street was looking for a c
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minus. brought home a b minus, they gave it a gold star. that is not as much of an achievement, reported at the against of january, it missed the numbers badly. also slashed its full year guidance. that's why from december 3rd to january 3rd, they lost their founding. then reported in april, missed the street's estimates. a penny this time and lowered its guidance. going forward, the company's about to be facing some tough comparisons and management has said sales of more discretionary items have been under pressure. maybe they have peaked. although, you know, they still make a ton of money. see that? >> now, if you have to buy an old fashioned dollar store, why -- the ramp in the second
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half resulting in 4 to 5% growth. across the united states. $10,000. as the six a year holy cow and the remodels. dollar general is the better company. with a 15% rate. it's got a low 12% quarter rate. that's why i feel comfortable recommending dollar general. however, i'm not jumping, well, i'm not jumping up and down
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about the dollar general trade. five below, which i like to think of as the $5 store, okay? because everything they sell costs five bucks or less. as a matter of fact, when i was with pop this weekend, he said let's go to below five, which is actually a better name but they're trying to play on that whole recreational equipment thing. there's not a difference. what really sets five apart is that unlike fdo or dg, five below is still a small up and coming regional to national growth story. company has just 215 stores in 18 states. the philadelphia guys who started it, i love those guys and i got to tell you, wow, these are nifty, aren't they? philadelphia, phillies. think they did well last night? not. management thinks they can only grow the store based on 2,000 locations in the united states.
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that's how five below can get away at an astounding 30%. an acceleration from 20, 26% last year. and in the latest quarter, the company delivered a solid 2.4 increase in sales. now, five below has already -- given you some tremendous gains to the point where the move here might well let's say it's going to give you some applause. company became public a little les than a year ago and if you got it public like i told you to -- i don't like these. up here, that's five below selling for 41 times earnings, which may sound super expensive, but it's actually pretty reasonable. no. ray-bans. the stock is up 18% for the year and i'm confident that it can
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keep going higher. in fact, i think this is a terrific opportunity. because the may-june sell-off brought by rising interest rates knocked five below after off its pedestal and the stock is nearly five below its highs. couldn't resist! why do i think that five below has what it takes to keep rallying? because the stock has taken two major body blows in the last two months. each time, it comes back with a vengean vengeance. five below sold 13 million shares in late january and after that, the stock went to rally 42.50 in march and on june 26th, the company sold 6.9 million shares for $36. the stock had been trading at $38 and change before that. already snapped right back to there. i think this rally is far from over. when the market can die jest digest so many shares so quickly, you know there's a ton
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of demand from the big institutions, so here is the bottom line. sure, family dollar roared at yesterday after reporting a better than expected quarter, but don't let that trick you into buying the wrong dollar store. a huge part of family dollar's beat was because the expectations were so low. if you have to own a traditional dollar store, then i say go with dollar general. but for me, i'd rather stick with five below. on wall street, only on wall street is $5 cheaper than $1. that's the opportunity you can give them with five below. i say take it. hey, let's take some calls. barbara in iowa. >> this week in your section cramer's survival guide, you said your first rule was to know your stock. which set me thinking. which stock do i personally
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know? at christmas last year, i purchased under armour clothing for each of our six kids. now, it's hot in iowa. is it a good stock investment for me? >> i think so. i regard under armour as being a technology stock. they have developed -- see that stock, they developed new cotton, new formulas. of apparel that kids love and older people are liking, too. i think it's a great choice for you. okay, the winner of the dollar showdown. i got five dollars. i got rogers and bart. i would stick with five dollars. ten dollar general and then i would come wup the family. don't move. lightning round is next. i want to make things more secure.
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i'm calling about -- and holding on to its position as product officer. do you feel this will be able to navigate -- yes. a winner, which is why, buy, buy, buy. anthony? >> boo-yah. hey, i was calling to ask you on natural resources. symbol amr. >> a play on call f. you like coal and you think it's going to go higher, then why not step up up to the plate and buy? joy. i believe alpha can go up, but it's a speck. let's go to watson in pennsylvania. >> cramer, watson here. cramer, turning into the preparation first. >> always is. always is. >> cmbc today i saw you and your dad come down for some burgers.
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>> we were scarfing down some cheesecake. >> my first job as windows man at gino's, made buck an hour. my stock is -- >> it was so fabulous. let's make money. >> yeah, exelon's my stock. >> you and i both know it's not my favorite, but i believe the interest stays stable, it can go up and when that happens, sell, sell, sell. steve in massachusetts. >> greetings, jim. a couple you recommended, micron technology, has jumped up to the 14. it's back down now to the mid to high 12. i don't see anything different with the fundamentals. is this a buying opportunity? >> here's what's going on. we had number seven stock making more fab making more equipment to be able the produce more semiconductors and the kind that
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micron makes, so micron goes down because people feel there's going to be a supply problem. it might go down to 11.5. i think it will, then pull the trigger on the rest. rob in new york. rob. >> big boo-yah to you, jim. i appreciate watching your show and enjoy you as a teacher. >> nice comment. >> i've got some extra money. would any -- compliment in position? >> yes. boeing. oh, man. jim mcnurny. i have heard about that interview 100 times. it's the conclusion of the lightning round. [ coyote howls ] how about no more surprises?
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giving people easy ways to help make informed choices. and offering portion controlled versions of our most popular drinks. it also means working with our industry to voluntarily change what's offered in schools. but beating obesity will take continued action by all of us, based on one simple common sense fact... all calories count. and if you eat and drink more calories than you burn off, you'll gain weight. that goes for coca-cola, and everything else with calories. finding a solution will take all of us. but at coca-cola, we know when people come together, good things happen. to learn more, visit [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients
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to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] i'm always trying to make this the most interactive show on television, even more than say "you can you can dance," so when viewers keep calling about the same little known stock, i do my best to do my homework, which brings me to t srsrs
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therapeutics. $470 million biotech with a nine dollar and change stock. it develops antibiotics that fight drug resistant bacteria and the product called -- could get fda approval for skin infections by 2014. there are a lot of risks with any development stage biotech, but this drug might have the potential to do a billion dollars. it's small, it's been on such a huge chair. it's more than doubled, over 9% today on new real news. i recommended it in early may, then a week and a half later at $8.27, i thought the stock had become too hot to handle. please do not chase this one on the way up and if we go in to buy, we must use limited orders.
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let take a keeper dive with the ceo, learn more about his company. welcome to "mad money." how are you, sir? have a seat. >> it's a privilege to talk to you and the audience. since we're red hot, i thought it would be appropriate if i gave you some protection. >> you know, when we say red hot, talk about red hot, tas good thing and the reason is because there's some real genuine excitement, but not fraud. it looks like the fda's decided, this kind of resistance to drugs, we got to make everything possible to work. because this seems like they're doing it quickly. they're really supportive. >> well, it's a real mind set change. we've been through the ups and downs there. we saw the passage of the game act last year. actually, a year ago this week. >> you said because it's an
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akron im. >> literal act of congress passed almost unanimous support of both houses of congress of democrats and republicans. so when is the last time you've seen that? >> we all seem to know there's these superbugs that people are are less and less able to fend off. >> absolutely. so, from 1983 to 1987, 30 years ago, there were 16 new antibiotics introduced. in the last five year, guess how many have been introduced? >> we had -- >> two. so in that intervening 30 years, those bugs as you call them, have not been sleeping. they've been evolving resistance to all of the existing antibiotics and every year in the united states about 100,000 people get, die of antibiotic resistant bugs that they get in the hospital. so, it's a huge problem.
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u.s. and globally. >> now, also, the fda has been just in the last few weeks, has been saying how important this issue is in terms of green letting, at least your philosophy towards new drugs. >> absolutely. just in the last several weeks, there have been two draft guidance, basically instructions to companies on how to develop antibiotics to these these infections. >> seems to be use the way -- is using. >> just looking at the guidance is very telling. but even more is the attitude in the room. so companies like trius and other companies, you go into the these meetings with the fda and they are incredibly helpful and looking for opportunities to help guide you much more quickly through the regulatory framework. >> you've got great presentations and one is that you look at your drug versus linozolid, about how much needs to be taken and also, how
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quickly, you can get out of the hospital, competitor has two ivs. you have one. this is also an attempt to get people out of the hospital. those 100,000 patient that is die every year in the u.s. are getting those in the hospital. it's a short course of therapy, which you see here. it's working in about half the time that most antibiotics work. it's a single, either intravenous infusion or a pill once a day for six day s total. >> and we know you're out to get it for pneumonia. i know people who have died of pneumonia in hospitals they didn't go in with. >> halfway through the 20th century, the three biggest killers of americans were bacterial infections. pneumonia was the top one.
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tb and bloodstream infections. >> can you give me the time frame? you're very honest about how you've got a certain amount of money in the bank, different studies. you talked about breaking even in 2013. you're not seeming to have enough money in the bank right now to get to 2017, so you have to make partnerships. at. >> at the end of q1, second quarter results. >> results turned out to be significant. >> but we continue to execute our strategy. we're making it available to patients worldwide. first part of that strategy was to partner with bayer pharmaceuticals. also, cipro. they've been a fabulous partner. basically, that's everything out of united states and canada and
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eu countries. >> basically, if the stock jumped to $10 tomorrow, you're not going to pop a secondary on us. >> we don't know the moment when we'll be raising capital, but what's really important is to make this drug available to patients globally, so we hope by the end of the year to have a transaction to make this drug available to people in the eu. we will continue to focus on commercializing in the united states. >> excellent. thank you to jeff stein, president and ceo of trius. we've got the mitts, but also a company doing a lot of the things the fda wants to do.
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liberty mutual insurance -- responsibility. what's your policy? is the great bank rally of 2013 over? sure has felt that way. that's not good news ahead of a raft of bank earnings. wells fargo and jpmorgan, we hear from tomorrow morning. i find myself staring the financial gun right in his face with both stocks being core positions and because i'm interviewing jamie dimon tomorrow morning on the floor of the new york stock exchange. what makes me so nervous about the group? couple of weeks ago, we interviewed the terrific ceo of paychecks after the stock got caught. expected much work than hs could deliver. they thought the paychecks could make a lot more money on the
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float. just go out and they figured there would be more business formation than there was, so banks are facing a similar di limb ma. while rates have moved up in a way that should be favorable for banks as they can invest risk free at high er rates than what they pay you for your cds. there just hasn't been the same repricing yet. that's what investors crave. meanwhile, there are two nasty head winds, one new and one old, that don't affect paychecks, but sure affect the banks. it's always some fed. that banks need the raise more capital. what the heck does the government want? we're lending to grow the economy, more regulation that makes bankers gun shy, yet new businesses and construction where per se and therefore, too dangerous for the guys to lend to. at least right now. plus, these regulations are cross purposes with investors.
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maybe the fed won't let the banks and shareholders. rates have gone up so speedily that mortgage sticker shock is the order of the day. that decline and housing affordability have frozen the best part of being a banker. any decline is going to sustain profitability. the good news, a week later, it's back to where it was. some news is because the fed has quieted interest rates down without having to buy a lot of bonds. banks don't have that high dividend. so, i think the banks stocks will get hit, but when the smoke clears, we'll be one quarter away from better interest margins, so hang on for the ride and if you don't have bank stocks, get ready to pull the trigger on weakness. see, it's too hard to jump out then back in. the bank stocks are precarious in a market that's in total bull mode, which means tactically, they are not the place to be right now. of course, without hearing the conference calls and talking to
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jamie dimon tomorrow, this could be premature. stick with cramer. we're cracking down on medicare fraud.
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don't miss tomorrow "squawk on the street." there's always a bull market somewhere. always trying to find jim crame you tomorrow. good evening. an historic day on wall street as the stock market enters unchartered territory. hi, everybody. welcome to this special coverage of market at all-time highs, tonight. i'm maria bartiromo. >> and i'm bill griffeth. nasdaq hitting a high of 15 years. stocks are now red hot in july. the dow is up 3.7% just this month. the s


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