tv Mad Money CNBC July 13, 2013 4:00am-5:01am EDT
my mission is simple. to make you money. i'm here the level the playing field for all investors. there is always a bull market somewhere. and i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm trying to make a little money. my job is not just to entertain you, but to educate you, call me at 1-800-343-cnbc. another day, the nasdaq 56.1%, but next week is when the market's fabulous recent rally
will truly be put to to the test. next week you get to the real earnings week. its the real deal. citigroup reports on monday. we'll see you to deliver like jamie dimon did for wells fargo. this is a tough one. citigroup are most in turmoil the emerging markets. i think the core was relatively new to the position has energized the place. one of the largest foreign bankers in a ton of places where the currencies are falling apart. you may not be able to make up all of that weakness with the strength in the u.s. business. we will see how much that will run down. tuesday morning, you find out if coca-cola fits into the new wall street fashion show, new, more on that late ever. i think people are looking for a global software play that doesn't need an economic wind at its back. that's coca-cola.
ups says there won't be a win. currency, this is when we will find out if it will matter, it will be a strength issue. the dollar erodes more than anybody. j.p. morgan, it would have to be that of goldman sachs, which reports next tuesday. now, they may have done really well tradeing. why do i say that? because the volatility went j.p. morgan's way, you know what, goldman excels in massive volatility. plus the ipo market has been terrific. remember, goldman is the kind of bank that doesn't need housing to be strong going forward. they don't do the retail mortgage business. they're not hurt by the highest rates in two years. also, tuesday, we hear from johnson & johnson, you know it's my absolute favorites. j & j's o, he seems to be fixing the company by the day. i sure would like it if he announces he would sem sell some or trim the weaker 26s. he inherited a mess.
whose complaining? i think we can get a good deal from the former guy that seems to shoot straight every time. yahoo reports it close. let me say, in mellissa meyer we trust. they come in put yahoo back on the map, using the cash, getting the troops to focus on reclaiming the company as well as coming to work each day. this company is a winner, not a loser. i can only hope yahoo goes down monday so you might be able to buy some for tuesday. you know what? i don't think it's going to come in. wednesday before the opening, we get bank of america's quarterly earnings report. i got to tell you, you ask me whose earnings i am most worried about? it is a couple of wednesdays. banc of america will see the same slowdown. you will also get bountiful litigation risks. remember i made that joke that bank of america sometimes feels like a law firm to me.
you don't get the credit that j.p. morgan has or the tradeing they give you. my view, if bank of america is good, then wells fargo goes up. buy more wells fargo. we also hear from u.s. bank, this is a tough one. it is so well run. but the time will ultimately come when this bank will make you a fortune. i don't think it is now. but i am inclined to buy it if it gets hit again. it already told you it isn't going as well as people might like t. only thing i can say about this one, you make it a little less problematic is the simple fact that nobody is expecting anything good from it. accenture had a good quarter. i got to tell you, i don't have the level conviction i had i used to have when the stock was in the low 100s. we hear from two chip maker, too, intel and unless they are taking the business himp the better play wouldbe xilinx. if you want to watch it on your
tv or cell phone, that's xilinx. that's fabulous for this terrific company. thursday morning we hear from union pacific. can it deliver after ups's warning and the decline in shipments of coal down 3% or more year over year. the company told us it does well, set it. you know what, i think that's what we have. i hope unp comes down. united health comes out on thursday morning. usually i don't talk about it. i should. everything is coming up roses for this down stock. to be able to reimburse patients less by taking in more income. i think we get another terrific quarter from the company people should be focused on. it is a dow health care stock.
verizon is reporting thursday. these days, you get a big hit to the bond market. it's now tradeing again as a bond market equivalent. when will the traders of the company going head-to-head with t-mobile and at&t especially after at&t announced tonight it was buying leap wireless for $15 a share. it doubled in one day. i don't think it will be this quarter. but i'm not inclined to buy verizon anymore. you know i have been recommending it since the mid-20s? you know that i'm more of a seller. google reports after closing, all i can say this better be a great one. this will be the most valued quarter we have seen since, well, apple. the god news is that google is up to the hype. it isn't that expense it.
ive -- expensive. i think the price targets will go up, not down when it reports. oh, man, it probably goes to 1,100. you will hear this. don't forget about microsoft either. we got three downgrades of this stock last quarter and it shined. it shined. in this quarter, we got launches from new windows and new x-box. i think the quarter gives the analysts a chance to upgrade if you bet against it last time. general electric reports on friday morning, they play with an open hand. i love to do this. my travel trust owns ge. i will be honest. it has been a headache. i want to hear about a dividend boost. i want a bigger buyback. i want some confidence about the oil and gas story. i don't want to hear that europe is sweechlt it's not buffeted by economic head winds. doesn't happen, bingo, stock goes to 22. i will pull my hands up and say, i don't want to own any more from the trust. on friday, there is slumberge. what do i say about neighbors? i say the company will have the higher price of crude than the lower price of nat gas drilling. i think this is terrific. this is a stock that has three down and ten up. oh, and one note for the week after, okay, boeing reports on
july 24th. i have to point this out there is no denying something went wrong with the dreamliner today. but i also know there is no doubt it's fixable. i am not sweating the program next week because jim mcnunrney the ceo assured us of that on this show on june 26th. remember this? did you ever worry that you would begin to lose orders and you would owe a fortune to those who stuck by you? >> no, never. >> never, worried about it. this was a solvable problem. it was a difficult problem. it impacted our customers. but the response of the people of our company was to roll up their sleeves and go to work and solve the problem. >> i'm not going to doubt jim, i am not going to dow, boeing, nor do i doubt their earning, which i think will be terrific. the only reason we have a bunch
of important numbers of out of coin, i expect them to take the growth again. in the end, i think china needs for global growth and the great migration isn't working as a driver anymore. china will continue. i think we'll open bad. wednesday fed chief ben fer e bernanke speaks to the house representatives. i am glued to this one. he has to stay the course, the easy course. not so much that the economy has been hurt. what a tough testimony? i think he is up to it. i think he will measure his words, it is a non-event that will be interpret as an event even as in the end it's a non-event, for heaven's sake. here's the bottom lean t. most important thing is that you have to stop, look and listen to these conference calls. otherwise you won't have a clue about what is happening. let's take a call from tom in florida. >> jimmy, tom from the panhandle in florida. how are you doing? >> i love the panhandle. i live in the panhandle. the golden 98 are friends. >> that's where i'm at. i'm right off 98. >> good deal. >> hey, my question, i took a
position with energy after you highlighted it a couple weeks back. they pre-announced last night. i was expecting the stock to get slammed today. it actually went up with the rest of the refinery. do you have any idea why? >> i got to tell you something. first of all, i got cnoocered. i like for the play with an opening. one squawk on the street, i said this is not what i want to see. i thought it would be bad. obviously the stock has been completely depressed. obviously, everyone has been betting against the refiners. the bet did not pay off. we got the bad news. the stock didn't go down. said, you know what, you got to see u.s. oil come down in order for west texas to come down and i don't think you will have that. i don't want to play with valero. it's a good company. i don't want to be there. al in florida. >> caller: jim, boo-yah to you. i want to talk to you about soda stream. many of my friends got this
device, they love it. i love it now. i went to visit some of my local retailers. i couldn't believe how passionate the store personnel s. they tell me customers come in. they love it. i went to the store locator. i started calling stores nationally. they tell 93 customers who buy these things, they love it. they come back in for consumables. this thing is unbelievably short. today oppenheimer comes out and ground graded sales to walmart. i don't think lost sales to walmart are lost sales for soda stream. >> look. you know, you made a good brief for this stock. this stock has ripe for a sell-off. everyone thinks coke or pepsi will buy them. i think that's highly unlikely. i think bed bath is selling a lot of these. not necessarily leave it to walmart. there are a lot of stocks that i think are cheaper than soda stream. the fury of earning season is upon us. resist the urge to get swept up in the headlines, yes, the excitement.
so stop, look and listen to the conference calls. and stick with cramer. >> coming up, how high has the market once again recovers at all time highs, fear of a pullback is top of mind. tonight, cramer is getting technical to find the signals that could point to the next move when he goes off the charts. and later, bank barometer. >> america is going to come back. it's going to blow people's socks off when it does. >> two of the banks in the country beat the streets this morning. so what does it mean for the nation's recovery? cramer sizes up the future of american banking after his exclusive with the ceo of j.p. morgan. plus, brand-new biotech. you may not have heard of episide. it's revolutionary cancer treatments is more than doubling from its ipo price in june.
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the market surged to new highs yesterday. the question now is what's next? we are do you to get pummelled. it checks your emotions at the door. the averages were getting crushed from mid-may through late june. al of your emotions scream you have to sell, sell, sell. you felt it. it was all this scared. sell, sell, sell, people were full on panic mode. that was dead wrong. now the stocks are coming screaming back. you don't have to give it euphoria overlooking blue skies as far as the eyes can see.
at the same time many people were saying you have to sell and 800 dow points ago. read them on the website. they say selling end. you never want to lend too much credence to folks who were so wrong and prefer to dig in their heels rather than admitting mistakes. tonight we're doing a special friday edition with the queen of lupinacci him well, queen, she's on real money.com. i had to go to her. she was so right the last time. we had to figure out where the s&p 500 is. what's it going to do next? you know i am not a chart it. i am a fundamentalist down to my bones. which means, i prefer to make my decision on stocks. not the charts. i like the method. it is the opposite of emotional. it is totally empirical. it's even mathematical. she has been right and
consistently bullish on the market ever sense it turned the quarter last fall. all right, let's give her, her document when the averages were crushed, they told her it was the garden variety bull market krekt correction. down 21st she told me the s&p could bottom in three days. how did she know that? it was based on ratios discovered by a mathemetician. it repeats itself over in nature like in pine cones, believe it or not and sometimes in the stockmarket. which is something that's been happening a lot lately. it's been working. empirically look at the chart of the s&p 500. rome was able to call the bottom on june 24th based on what's on this cart. first of all, she looked after the previous declines back to october of 2011. you can see these corrections were somewhere between 131 and 155. in the end, the decline from the peak in may to the trough if latedown was 126. very similar in size to these previous pullbacks. looking for similar size moves
might seem silly to you. okay. it was silly to me. you know what? it just keeps working. what am i going to do? it's working. every chart has two axis. there is the x axis and the y axis. you go back to october, 2011, you see we had four periods, previous declines, four to five weeks. it turns out the latest sell-off lasted five weeks, very similar to what we saw in the past. that's how he was able to call the bottom of the day. it illustrates messages and defining turning points where the market is likely to change directions. check out the chart of the s&p 500. it's been roaring on a healthy rally, right? importantly, brodin doesn't see any big turning point coming any time soon. ner, she thinks the rally can continue. how long? well, according to brodin, the way bull marks typically work is
you have a pullback that stops when it retraces a key percent annual of a move higher. these key percent annuals come from the ratios. 38.2, 61.8 and 100%. once the bull market comes to an end, it will come roaring back. brodin says it's more than the previous swing. they are basically priceing extensions. that's where she's seen rallies run out of steam in the past. based on what she's been using, bingo, 721. would be 172.2% reversal, roughly 2.5% above where we are now. she says in bull marks when they reach this 127.2% extension, that's a fairly high proportion of the time. that's where they can peter out. the next target, though, is 1765. that's 161.8% extension. that's another key fibonacci level. that's roughly up 5% where the s&p is right now. it will constitute a pretty darn, nice move. especially considering it we're
at all time highs. now, if you look at the longer term monthly chart of the s&p 500 you can see the same method playing out on a much larger scale. by the way, this monthly chart is a big reason why broden's been so consistently -- the reason? when you look at the down swing from the 2007 peak, to the generational low in 2009, the rally over the last few years has only recently erased 100% of that move. that's what she said would happen. and remember, broden's first price talk of these price talk rallies is a 127% exchange. in this case that would take the s&p all the way up to 1823. that's 8.5% above where we are right now. this is a longer term target. broden's too many times not to believe that we'll get there. remember, these are all bullish targets. the one thing that i would throw up for the s&p sells off hard from here and falls the june 24th low, at 1560. but at these levels, it doesn't seem so likely.
so as long as we're holding above that level, broden thinks it makes a ton of sense to buy the s&p 500 and to any weakness that we might see that led into earnings. you shouldn't air about this stuff, but i do. however, there are other technicians who aren't so positive. we rely on real money colleagues, carly garner, co-founder of decarly trading and why do i mention her? because remember she said "buy gold" when everyone was selling it back on june 28th. now she's less about this. she thinks right here short term the market will probably get choppy an sooner rather than later by the way, because stocks typically have a much rougher time making progress over the summer, she says it's possible we could see a repeat of what happen this spring and summer of 2011 when the market ran up to make new highs then failed. that said, even garner believes that after a rocky summer the stock market will come back to make a nice year end run. the two people right now with the hottest hand, garner, says it's choppy and then broden, who says it's higher. here's the bottom line. the averages made new highs, ok? there could be more new highs to come, with the s&p 500 headed for 1721 or even 1765 in the short term. and then 1823 on a longer term horizon. hey you know what? even though i'm not a chart guy, i like the hot hand. i am happy she thinks the charts
if they can make this much money in this environment, who knows how much they can make if the economy ever gets moving. that's what i thought, if you are talking to jamie diamond, chairman ceo of jp morgan and listen to the conference call of wells fargo, the largest mortgage lender in the country. i had the pleasure of interviewing jamie diamond on the floor of the new york stock exchange this morning. and while i love to do a close textual analysis of every word and nuance, because i am a geek about this stuff. let me first just say that i came away feeling great about what everyone on wall street knows as "the back." it's pretty clear that jp morgan can figure out a way to make money no matter what and this
time, it made huge amounts of money in trading, both equities and fixed income. meaning that when rates shot through the roof, beginning in may, great volatile situation, it was terrific news for diamond and her team. company profit immensely from the turmoil and that's a large part of how this bank could make 6.5 billion dollars this quarter blowing away the estimates. that alone would make me want to buy the stock. this gigantic commercial bank with the fortress balance he has within its enterprise. you can kick down so many positives. credit cards, incredible. auto loans, amazing. wealth management, fabulous. so then why didn't zoom instead of falling 17 cents as it did at the close. because in the end, banking is lending, and the lending was tepid. first refinances have cooled. that's what a quick rise interest rates is always gonna do. and we do have the highest rates in two years for mortgages. second, diamond reiterated that the country is still doing terrifically. just listen to what he had to say about our great nation.
>> this country not only has the best military on the planet, it's got the best universities, the best businesses, it's got low corruption, the capital markets, it's hugely inovative, it's got a wonderful work ethic. we've got a royal straight flush. >> royal straight flush. but he also added that we are not so terrifically that there is a big pickup in loan demand, cause there isn't. which is why i'm saying that if jp morgan can make this much money without their core business of lending being on fire, what happens when things get better? when we get to a 6.5% unemployment rate a year from now as diamond said he would happen when he predicted at the end of the interview. oh what happens when yes, interest rates go higher as the economy improves and lending demand comes back. >> you heard me right. jpmorgan does better with higher interest rates. and while i know we are almost all think rates are going up, sometimes that does worry me because i don't like to be part that much of the consensus. if they go up, jpmorgan will
make more loans and more money and will show a dramatic increase in earnings power. but will the government let dimon do it? i mean, as i asked him right at the top, does the government want him to lend? or to hoard? are the feds so worried about bank failures that they want to crimp lending to eliminate risk or break up the big banks altogether as senator elizabeth warren said this morning on she wants to bring back a version of glass steagall. he didn't take the bait. he didn't criticize the government or criticize warren. he said that new regulations is a fact of life and it will all come out in the wash over time. this was a sanguine dimon who expressed a level of confidence about the regulatory future that made me think, one day we'll play a sdeent price for the huge earnings jpmorgan will generate, something it doesn't get now because the rate is risky. they did raise the dividend. one day they can raise the dividend enough to talk to the government.
that would be terrific news. i maybe feel better that we don't have to worry about the slowdown in mortgages because there are so many parts of the business that can go right here. for those of you who worry that dimon will one day jump ship as i fretted. i fretted about it when some shareholders wanted to take the chairmanship away from him. he's not going anywhere, including the federal reserve job. ben bernanke is going to retire. why not, if asked, take the federal reserve job. >> you talking about me? >> yeah. >> oh, please. i do not. that -- >> not qualified? jamie dimon not qualified? >> every single person i know would say jamie should never be fed chair. >> i think he'd be a good fed chair. if the fed does taper, the bank will be a winner because it won't happen until -- until business is good enough that the fed doesn't need to help out anymore. dimon roped a doped every single one of my political jabs. he parodied all my attempts to say perhaps the controls can't be in place to forget another whale scandal. there was only one moment, one moment when he flashed that wit he's so famous for when he stopped me in my tracks when i suggested wells fargo did a better job than his bank on home lending. take a look. >> i love them.
they do a better job in the mortgage -- >> you admit somebody is doing better than you. >> absolutely. they've been doing better for a long time. we had the old bear stearns, wamu. our systems weren't great. a new management team in place. at the end of the day, we'll have a great management business. >> it's true. as strong as the quarter was it was wells fargo that delivered the real shocker to wall street. going into this quarter, there were plenty of fears. or that wells didn't make as much money from its net interest margin or its expenses would stay heavy, stay out of control. no, no, no. john stump, ceo and company, blew away the numbers and every one of those lines and delivered acceleration in loan growth along with a terrific increase in return on equity. return on equity is amazing. perhaps most amazing, wells had a bullish quarter when it comes to charge-offs. the lowest level since the start of the financial crisis. i know stump. what i think the man prides himself on is how many people had their mortgages adjusted, fixed, lowered, you know, worked
out so they could stay in their homes. so that when things got better, and their loans would go current, well, let's just say they would stay lifetime customers of wells. wells fargo bought some terrible mortgage loan portfolios when it picked up wachovia. with an outrageously positive 30% market share, boy did the gamble pay off. and they'll be forever loyal to wells fargo. it's extraordinary. wells fargo, they are amazing retailers. retailers of money. maybe the best there is. now wells fargo is already starting to feel the pinch in terms of mortgage originations. amid the rising rates, earlier today the cfo identified the squeeze during a terrific interview with our own maria and bill on "the closing bell." if rate goes higher, wells fargo will make fortunes in so many places because it will have a bigger share of the lending pot for individuals and businesses as the ceo stump said at the beginning of the call this morning.
quote, we knew rates would eventually rise and we've been playing for a rising wage environment for some time. it provides opportunities to generate earnings growth over a variety of rate voirmt environments. some of ours do better in a lower rate environment and some others benefit from rising rates. wells quite simply has a lot of ways to skin the cat including certificates of deposit and lower levels that they invest themselves. then coining money every day when they turn the lights on. these two banks are not apples to apples. one is an amazing invest bank. the other is the best pure commercial and residential bank. both are inexpensive. both can and should be bought. they are the true winners in an environment where interest rates go higher because one day, at long last, american business will indeed get better. and stay better. brett in california, brett? >> caller: big boo-yah from california. first time caller. thanks for take my all.
>> thank you for calling. >> caller: i'm disciplined in my workouts and disciplined in my investments. i have this one stock called rbs. i'm a buyer, long-term holder. >> so glad you asked about this. because i was going to ask jamie dimon, if i had time, would he buy citizens because royal bank may be selling citizens. they have to raise capital. i want to reiterate. i want to buy more royal bank of scotland if i'm at home on the speculation bank because i think there's a lot of assets there. i don't care if they have to raise capital. they can do it. dave in colorado. dave? >> caller: hi, jim. a quick question about charles schwab. i understand they have a lot of uninvested client cash in money markets. with interest rates being so low, they aren't make anything money on it. but if interest rates should go up a little bit, shouldn't all of that cash go to the bottom line? >> yes, but that's why the stock has been going higher because people feel they have a better
credit balance they'll make more money. hasn't happened yet. don't get ahead of it. i think wells fargo and jpmorgan are better than owning schwab, although i love charles schwab's editorial yesterday in "the wall street journal." if you are banking on a perfect and -- well if you are banking on a better america and higher interest rates, hey, look no further than jpmorgan and wells fargo. don't move. lightning round is next. monday, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> you go down there and give them the business. >> it all starts at 9:00 a.m. eastern. this is greta. she works in quality control.
she makes a nifty living sleeping on mattresses pioneered by engineers whose singluar devotion is not stopping until they have given her the best sleep of her life. that's not greta. save up to $500 on the tempur-ergo collection and get your best sleep possible. visit tempurpedic.com to find a store near you. it is time for the lightning round. are you ready? time for the lightning round. tommy in wisconsin. tommy? >> caller: you'll always be my idol and i love you as a brother. >> thank you. >> pba, good investment or not?
>> yields about the same thing as enterprise products. got to be careful. boy, are they gunning for these. let's be very careful with the stock. i don't want to own it. esteban in colorado? >> caller: jim, a big boo-yah from boulder, colorado. my question is -- my question is on nq mobile. the company is in a hot space, mobile -- >> it is a hot space. it's cloud mobile. you know what? i am -- i am going to pass on this one. why? every time i buy cloud mobile, i get my head blown off. not going there. let's go to dan in wisconsin. dan? >> caller: hey, jim. big boo-yah from the university of green bay, wisconsin. >> wow. cool. >> caller: i'm a college student starting to invest for my future retirement. i was wondering bhp billton. >> it's going to keep going down if the chinese economy doesn't get stronger. it's trying to make a bottom here. i would still ring the register if i caught that bottom. i automatic my charitable trust is in vle. it's a headache. i don't want you to get in with me on this. let's go to sam in indiana.
sam? >> caller: boo-yah jim from the racing state of indiana, home of the indy 500. >> true. >> caller: a question for you about jcpenney. they are redoing things. the stock is low. what do you think? is it a buy? >> mike ullman is running the place. i think it's going to stay in business but that's not a reason to own the stock. let's go to george in new york. >> caller: boo-yah! >> boo-yah, george. go ahead. george? >> caller: yes. i'm here. >> you're up. >> caller: okay. jim? i want to -- >> george! i'm curious? >> caller: yes. the stock i want is medallion financial corporation. what should i do? should i buy more? >> i don't know medallion. i don't know taxi. i have to come back on that one. i know the show. but i got come back. i do not know the stock. let's go to vinnie in illinois. vinnie? >> caller: hey, jim.
boo-yah. >> boo-yah. >> caller: so my question is about electronic arts. the stock symbol is ea. >> i know ea. it's had a really big run in terms of speculation, i like zynga. i actually like
nokia. but i'm not going to recommend ea because it's moved up too much. let's go up -- and that is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. coming up -- brand new biotech. you may not have heard of epizyme but its cancer treatments have investors putting its stock under the microscope, more than doubling from its ipo price in june.
the biotech stocks have been on fire. we want to take a closer look at a newly public biopharma company. i'm talking about epizyme. that's epzm. became public six weeks ago at $15. oipd 53% in its first day of trading and has continued its long march higher. a staggering total return of 140% if you got in on the deal. and it's still a phenomenal 57% gain if you bought it in the aftermarket. their pipeline is an early stage development. phase one clinical trials here. that's a long way from coming to market. these drugs could be potentially game-changers because of the company's novel anti-cancer platform. it's a whole platform based on epogenetics. the science of turning on or off specific parts of the dna. animal studies have been incredible. they have a drug for mix lineage leukemia and in mice their drug shut down that cancer. shut it down. it did not come back. plus the company has huge preclinical collaborations with glaxosmithkline.
we bring on companies like this, why? because of what happened earlier today with another biotech name we pushed endlessly. alexion. based on word of a potential bid by swiss giant roche. we saw pharma takeover bid from pharma. i don't like chasing stocks that are up that much, but at the same time, i have to tell you this is one exciting story. let's check in with the ceo of epizyme to learn more about his company. welcome to "mad money." thank you for being on the show. >> my pleasure. thank you. >> good to see you. those hou took biology, and are older, remember the double helix. you remember dna. you are actually interfering with the bad parts of dna. >> that's pretty much correct, jim. you remember the double helix where the dna is wound around in order to fit inside the nucleus of the cell. if you think for a second the amount of dna in each cell.
it's fingertip to fingertip in every one of your cells. so the cell has to compact that dna down. and in order to do that, it winds it around proteins. remember proteins, the other part of dna. winds it around proteins like thread around a spool. sometimes that winding and that unwinding goes wrong. and when it goes wrong in some cells it causes cancer. and we're trying to fix that. >> when you say trying to fix that, everyone is very excited. i just want to get the history of it. even though this is just in animals, why is everyone so excited? because what makes people think it will work in animals it will work in humans? >> this is a direct result of the human genome project that started, gosh, 12, 13 years ago, now. you probably remember a couple years ago people said, what did we ever get out of the human genome project? this is the kind of stuff we got out of the human genome project. peopler isquencing the primary dna sequence out of cancer cells
understanding the genetic alterations, the changes in the dna that caused the cancer, straight from the human genome investment of ten years, 13 years ago. and by our understanding of the changes in the cancer cell, we can make small chemicals, small molecules that directly target the underlying defect in the cancer cells. >> now we have had some high-profile examples of people who have said, listen, my lineage, there's cancer. so i'm just going to take radical action ahead of time. is this the kind of thing where if you knew there was a lineage that had a passed down gene, would i be one day hopefully have an epizyme drug that blocks that rather than have to have a radical massectomy? >> that's certainly one way we could imagine it. the radical massectomies act in a different part of biology. and the leukemias we're targeting, the limn foam as we're targeting, these are changes going nonthe bone marrow of the cells. and currently some of these patients actually get bone marrow transplant in order to correct that underlying defect.
with our chemicals and hopefully our drugs, we'll be able to correct that so that they don't have to take basically poisons in order to kill it or get a bone marrow transplant. >> cell gene which has had remarkable record, that they are a big backer of your company. this is a very different technology and different platform from what they're on? >> it is different but has a lot of similarities. when they came in to visit us a couple years ago, we showed them our platform and our approach to use the cancer genome sequencing to make these personalized therapeutics for these genetically defined cancers. and they just became so convinced that our story had such a tremendous potential to specifically treat the underlying defect that they decided to make the partnership with us. >> now one of the things that's really interesting about your company is when i looked at the blood lines whof is on it, you guys are academics turned -- i mean, honestly, everyone was it like -- your best biology
teacher in america. >> our cso has written a number of textbooks. >> it seems like this is a group of professors who decided we're going to cure cancer. is it possible? >> well, some of us have spent a long time in the industry. so our cso spent a long time actually at gsk. i spent time at merck. we've combined our scientific understanding with real drug discovery capabilities. >> now i don't want to get people's hopes up. i thought this was remarkable company when i looked at it. i said i hope at some time in my lifetime this will be -- is that too pessimistic? is this something that preclinical, next year this, next year that and in 2018 because the valuations indicating people are thinking in 2017, 2018 there's going to be something on the market that's going to be big. >> this is where the cancer genome efforts are really being embraced by the cancer docs, the treating community, the fda that approves all of our medicines. because the current understanding at the fda and
also in the oncology community is that by specifically developing diagnostics that tell you if you have a genetic change and pairing that with one of our personalized therapeutics you can have a very quick clinical development path. in our case we go straight into patients that have these genetic alterations and we know very soon whether or not we'll have a beneficial effect. that leads to this abbreviated timeline. >> this is an amazing new way. it's not a kaerpt bomb way. >> no. >> it's a targeted way. >> this is very, very specific, targeted, into patients that have the genetic alteration with the diagnostic that identifies the genetic change. >> this would be incredible. it's what we're all hoping for. thank you so much. you've just heard from dr. gould, ceo of epizyme. "mad money" is back right after this.
europe sees the bottom. how bad can asia be, right? we have so much internet business. we know this is one of the best run transports in a total transport driven leg of this bull market. plus, with fedex all the way bock to 103, why not play the lagger? what can i say? how wrong could investors and traders be? a preannouncement at u.p.s. of all things. right around 9:00. holy cow. a darn preannouncement. a shortfall and a bad one. $4.98. earnings go to 4.65 to $4.85. more like $5 and change was the whisper number. perhaps 10% too high. you want to get really down and dirty? the reasons for the shortfall read like a disaster roll call. too much capacity in the industry. this despite the fact we've had fedex take out a ton of capacity. customer preference for other solutions. hey, what's the hurry? it will get here eventually. what's the hurry in this
economy. third and worst of all, slowing industrial u.s. economy. i thought it might be accelerating. talk about a triple whammy. everything you've heard about a strengthening economy has to be more closely scrutinized. perhaps interest rates went up too much in the last month. consumer confidence figures maybe aren't representative and there's been a big decline around the globe. this is a global economy company. hey, check some enthusiasm. now, before we jump to too many negative conclusions we know that there are some parts of the economy in the u.s. that are flying in the face of this preannouncement. auto sales are very strong. 16 million were going to sell. you don't get a big increase in the gasoline if there isn't a pick-up in business. there's some job growth. also amazon is doing exceedingly well. the stock today over 300. plus terrific numbers from gap stores. 13% old navy gains? costco. still, united parcel number, it can't be ignored either. and it's a solemn reminder when you don't have small business growth, corporate creation or speculative lending that helps people start up their own companies you get a preannouncement like u.p. such. it's brutal. those of you playing a rebound, don't bet you can play it with anything.
a regular friday night occurrence. this one is leap wireless, at&t and the stock is now already exceeded what at&t is going to pay. don't forget this alexion. i don't know if it's true because it would be a huge mumt pell, but i do like alexion as a company. like i said, always try to find it. i'm jim cramer and i will see you monday. happy july 4th weekend. let's celebrate with a "red, white, & blue best calls you've never heard." >> my husband has been using my credit to buy high-end cars. >> he forged your signature... >> yes. >> ...and then he bought a corvette, really? now, just maybe he wants to have a joint account so he can watch you and make sure that you don't spend more money than you should be spending. is that, by any chance, any reason why you don't want a joint account with him? >> yes. >> oh, now we get to the truth. and you ask me, "can i afford it?" >> she's in gymnastics now, and they'd like her to go more hours a week.
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