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tv   Mad Money  CNBC  September 28, 2013 4:00am-5:01am EDT

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my mission is simple, to make you money. i'm here to level the playing field for all investors. there's 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 just trying to save you a little money. my job is not just to entertain you, but i'm trying to educate and teach so call me at 1-800-743-cnbc. sell first, ask questions later. sell, sell, sell. that pretty much sums up today. doesn't it? dow sank 70 points.
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s&p dropped .41. nasdaq only fell .15%. that sums up the week. stocks suffered broad declines, and, of course, the reasons for the decline had nothing to do with anything that happened during the week. heaven forbid it matters what companies are saying. nothing at all. in fact, with the exception of the misleading fiasco that was jcpenney, we had a ton of good news including mergers breakups, surprises from companies as big and prominent as nike, which reported a fantastic number last night in part, because, are you sitting down, western europe, where sales of orders were sensational. talk about a comeback. no, no, no, the selloff is all about what's going to happen next week. so let's game plan it out to see if we should still be selling first, not to mention second, third and fourth and asking questions later. one thing is for certain. i could have a picture of the white house and the house of
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representatives with boxing gloves on next week making a fight card. but that would be wrong. they aren't even wearing gloves anymore. the president says he won't negotiate over the debt ceiling which seems to be front and center now. i don't think it's a tactic anymore. there may not be anyone to negotiate with. as the speaker of the house, john boehner seems to have lost control of his one-time minions. that means all we're going to be hearing about how much of the gross domestic product will be hurt by the government shutdown. maybe of the government deck downgrade and the mandated governmental uncertainty, because the health care exchanges and the affordable care act is supposed to start up. but everybody seems pretty confused about how that's going to work. it is, alas -- talk to any portfolio manager, they all say the same thing. it's a washington nightmare. a washington-led nightmare out there. if we go back to the 1995/1996 debacle the last time we had this rancor, last shutdown, it took apart anything travel and leisure related because that's where the slowdown hurt the most.
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that's where the market got hit but then it quickly recovered. i wish i could say the same for the 2011 budget war. we lost 19% on that one, and those same stocks really got hurt and we took a real dropping as we peered over the fiscal cliff. with many stocks falling more than the 7% the market lost going into that headache. if we're going to replay any of those scenarios, we should still be shooting and not asking questions, because i mean, come on, we're only down 1.06% over the week. shouldn't it be much worse going into what is supposed to happen? that is what my charitable trust, as i've told you many times, is armed with a hefty cash position. when the market does sell off and will sell off hard enough, i believe, to reflect the madness in washington. that's when you want to put some of that cash to work. in the end, our elected leaders will make a deal, and when that happens, you want to be a buyer, not a seller, regardless of whether the deal is good or not. as we have seen before, even a lousy resolution does allow us to rally. why? because we like certainty. what could make us stick with stocks as we run through this gauntlet? how about let's jump right clear
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over the week to next friday's jobs report. let's cut right to that, this is the one number that can have an impact on the market. and i think the number is going to be good. as with anything from washington, though, good is a relative term. we need to see an unemployment rate that continues to show, slow, steady progress toward more hiring. if we get too much progress, we know the moment the myriad of budget talks end we'll see less bond buying from the fed and that will drive up interest rates and cause a ton of selling in the bond market equivalent stocks that have stabilized of late. considering the partnerships and the real estate trusts. talk about needs to shoot first. those stocks could get positively hammered if we get a strong employment report on friday. you know, that's always a shame and i think about this. i don't know, maybe because it was the end of the week. but isn't it a shame when good news for the economy is bad news for your portfolio? i mean, if too many people get
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hired, you lose money? but that's where we are right now. it's kind of a washington thing, right? it's like oh, they hired a lot of people, the market should go down. how about some more reasons to stay in, though? because i don't want you -- i want you to raise cash, but i don't want you to leave the casino. monday we get manufacturing statistics from china. and i think, you know what, they're going to be terrific. now all the chinese numbers are upside. china is rebounding. it can act as a countervailing weight to washington. tuesday is a huge day, not just because we're celebrating mm2k, our 2,000th show, can you believe it? i can't. but we also get our very similar manufacturing data here. and i think that gauge is going to be very robust, too. because manufacturing worldwide is getting stronger. in fact, i can make a case that other than apparel, hence the precipitous decline of the money-begging mendikin -- >> the house of pain. >> that is jcpenney, almost everything is doing fine --
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except washington! i'm fearful all the good news in the world can't make up for the hatred spewing from the district of columbia. you know what's really sad? the confusion and undermining of confidence really does hurt the little guy, not the big dogs. they do fine. the back bone of growth in this country is really the small business person. and the only person in d.c. who seems to care at all about small business is ben bernanke. all the regulations and hard to fathom rules mean if you're trying to understand your business or start your own smaller enterprise, you've got to be scared out of your wits. i just want to put all of your plans on hold until you get some clarity from the federal government about taxes, debt ceiling and health care costs. we'll find out how washington has hurt the small businessman whom the politicians always claim to be helping when we hear from paychex on monday after the close. this payroll processing company, which dominates the small business market, has been advancing of late, creeped up over 40, even though most analysts don't seem to like it. why?
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because there have been a lot of optimism that thinks we're getting better in small business land. will paychex give that gain up because of wash tonian inspired pessimism? well, next 72 hours we find out. tuesday we hear from a company that's been on a roll, one i wish i identified earlier, because i shop there pretty much every day and that is walgreens. this company is spreading it wings and going international, taking back market share that it lost during its fight with express scripts, the nation's number one pharmacy benefit manager. what can i say about wag other than i hope washington brings it down so the stock can be bought on the cheap. somehow i think the politicians won't comply. if this market goes down and this market goes down, here is a natural stock to go to if it turns out we have overshot the down side. now, this stock is the hottest in the book, mm2k. you want to join us at the nyse, new york stock exchange for this milestone, head to i am not kidding. right now. go crash the server, okay, or go to @jimcramer on twitter, and
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i'm going to tell you to go to kind of a vicious circle. most important, i want to see you there tuesday. 2,000 shows. come on! regis philbin should be there. and good luck to notre dame this weekend. anyway. wednesday is ben bernanke's day. he's speaking. this time to community banks. he loves the small business thing. community banks of st. louis. we're going to be glued to this. we're looking for any sign that bernanke is truly worried what a government shutdown could do to the economy. we need to know this because it turns out friday's employment number is too strong we can least take solace that ben recognizes that that too strong number could be the last one for months because of the government shutdown! yeah, can you believe how much we have to depend on the people in washington for everything? how far-reaching can we get this? genetically modified seed-maker, monsanto, california government probably doesn't like that, right? reports wednesday. and this one has been roaring as of late and the farmers have been flush and monsantos seeds continue to take share worldwide. what happens if we hear that farm subsidies are going to be cut back as part of a budget
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talk? oh, well then monsanto gets hit, even if it reports a good number. washington can't get its paws -- we can't get washington's paws off anything. and when it comes to washington, here is the final straw. on thursday, clorox and eli lilly talked to the analyst community. clorox has a decent story to tell based on new products and potential structure that would unlock value. lilly gave us a bad news about a cancer drug trial that didn't reached its targets. you know what, even here things are in washington's control. why? because they're both high-yielding stocks, 3.4% for clorox and 2.8% for eli lilly. and investors are still using higher-yielding stocks as bond market equivalents. they're hiding in these stocks to get good return, fixed income wise. now, these stocks are going to get hammered if we get a strong jobs report on friday. because interest rates will shoot past these stock yields as people fear the fed might take away the magic carpet ride. higher bond yields means lower lilly and clorox. here is the bottom line. one day we'll only have to talk about stocks and earnings and
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the game plan. this is not that day. stocks are simply dinghies. d-i-n-g-h-i-e-s. i'm from philadelphia so you probably don't understand it, but stocks are dinghies. being tossed around in the potomac. i want you to wear a life jacket. and if you're planning to stay all in without selling stock ahead of time, believe me, you won't need the ballast. let's go to lois in florida. lois! >> caller: boo-yah, jim, from a faithful follower. >> love that. thank you for being faithful. >> caller: i have invested in hain celestial and when they had the pullback after icahn bailed, i stayed in there. and right now a week ago today, it's started a $3 drop, and it's kind of been going downhill. and i can't get any info on what's happening. is it a lemming effect? >> well, i think they're -- lois, i think they're people always felt that carl icahn would do something.
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carl icahn is in it to make money. he doesn't always agitate. irwin simon made carl a lot of money. now, i think you have to take a long-term view on this. i think that kind of natural organic food is a great trend. we've been behind irwin all the way. the stock often has pullbacks after a good quarter. i want you to stay invested in hain celestial. let's go to joe in missouri. joe. >> caller: hi, jim. >> hey, joe. >> caller: my stock is diamond resorts international, the symbol is drii. it was an ipo last summer at 14. it seems like the volume is increasing daily. and so has the price. what is your opinion, please? >> i think the stock came public in a market that was a little soggy and deserved better, and diamond resorts is good. i also say that i like starwood and i also like wyndham. i think both of those are very good. i think we'll take a hard look at hilton when they become public. maybe some day we'll talk about stocks again, just stocks, like how they're doing, like the fundamentals. until then, let's raise a little cash so we can get through the
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gauntlet and come clean to the other side. to join us on mm2k. i'm repeating it one more time because i'm like one of those infomercials. for how to join mm2k. i want you there. it's going to be fabulous! "mad money" will be right back. coming up, best medicine? tonight, cramer's highlighting the companies battling back against cancer and pushing medical science forward. first up, a $6 spec stock with six pivotal drug trials scheduled this year. find out what's ahead in jim's exclusive with array biopharma's ceo. and later, taking your shots. cramer is putting one more spec stock under the microscope. it's already doubled this year. so is it too hot to handle, or can it continue to keep your portfolio healthy? all coming up on "mad money."
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one man. >> i just want to make you money. >> eight years. tens of thousands of miles traveled. hundreds of ceos. thousands of callers. millions of your e-mails and tweets. it all adds up to mm2k, this tuesday, 6:00 and 11:00 eastern on cnbc. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail at cnbc or give us a call at 1-800-743-cnbc. miss something? head to
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[singing] hoveround takes me where i wanna go... where will it send me... one call to hoveround and you'll be singing too! pick up the phone and call hoveround, the premier power chair. hoveround makes it easier than any other power chair. hoveround is more maneuverable to get you through the tightest doors and hallways. more reliable. hoveround employees build your chair, deliver your chair, and will service your chair for as long as you own your chair. most importantly, 9 out of 10 people got their hoveround for little or no cost. call now for your free dvd and information kit. you don't really have to give up living, because you don't have your legs. hoveround replaced the legs. and now every hoveround comes with this handy tote bag and cup holder for access to your favorite items. and right now, get this limited edition hoveround america travel mug free with your hoveround delivery. [singing] hoveround takes me where i wanna go. call or log on to to find out where a hoveround can take you!
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sometimes in this business, things get so ingrained in my head, i speak about them in shorthand, even though they're actually as arcane as the infield fly rule or the cover two defense. such is the case as the regional to national concept i'm always harping on.
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i did it again last night, i apologize. i was saying that dunkin' donuts is the quintessential national story. i might as well have told someone who has never watched a football game in her life that they are running a read option play and hits a egg in it. let me go over in plain english. because second nature doesn't cut it with first nature people. when i was still in law school, training for my dirty linoleum floor which i always keep a nice piece of here, i read a book by peter lynch, still perhaps one the greatest mutual fund investor of all time called "one up on wall street." this revolutionary book told you how the regular investors, home gamers like you, can beat the big boys at their own game. i know these days whenever i say the home gamers can beat the pros, a whole flock of managers scream that i'm being reckless. but peter lynch, who is the envy of many of my critics knew better. a key tenet of lynch's philosophy is if you keep your eyes open and act on your
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instincts after you've done your homework on the company, you can do fabulously in the market. if you like a store or restaurant, really like it, others will too. why not? your taste buds are good. if you look up the company locations and see there is a substantial part of the country where they don't have stores yet, there is a good chance you might have a winner, as long as the balance sheet is sound and the company is well-run. lynch said you must always be on the lookout for regional national stories because they can be ten-bangers. they can go up and up and up until they expand all over the country. when the company came public, i was shocked to learn there were very few dunkin' donuts west of the mississippi. and none -- none whatsoever in california. this is one-fifth of our country. that means dunkin' could grow as far as the eye could see. put them up all the time. perhaps a ten-bagger. given how well it's executing and how much cash it's throwing off. there are very few high quality chains that aren't already nationwide. and when you find them, well, like we have with winners like dollar general and roth stores, you hold on to them. because they could fill out the whole map before they run out of
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room. once that happens, the growth of the company slows down dramatically. and so does the stock as we hear from many of the big department stores and discounters that are already everywhere. sears, and yeah, okay, i've got to say it, jcpenney. we don't need anymore sears or jcpenneys. we actually need far fewer of them. new store growth doesn't have to come in regional and national capsules. whole foods and bed bath and beyond are winners. the regional is a better bet, especially when the larger states in the union, this one and somewhat -- they have a lot more room in texas, aren't covered. now you know what i mean. now you can look at the annual report as peter lynch told you to do, check out the locations or go on the web now where every chain has a store map and tells exactly where they are and then you can make up your own mind. chances are if you like the product and the chain is spreading its wings, you've got a winner. stick with cramer. he's been bringing main street to wall street for years. and for "mad money's" 2,000th
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episode, he's celebrating by planting the cramerican flag outside the new york stock exchange. calling all cramericans in the new york area. you're invited to be part of history this tuesday. log on to for details on how to join us.
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i may spend a lot of time pointing out the mistakes of wall street analysts here on "mad money." but that doesn't mean these analysts don't occasionally have just some fantastic ideas. case in point, just this week, not one, not two, but three firms initiated coverage with buy ratings on a speculative development stage biotech company that had already more than doubled for the year. and i'm not mad about this. i'm talking about pharma cyclics. pcyp. and those who stuck their necks out and recommended it. and i think they're right. now i can give these guys a hard time for being late to the party, including myself. because it's rallied 129% since the beginning of the year. it's up 1,532% over the last three years. but i prefer to be constructive and to be fair, it's not like i nailed it either. the truth is, with a stock like pharmacyclics, we don't care
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about where it's come from, right? we only care about where it's going to. and basically what's happening at this company, i believe it has more room to run, which is why i'm highlighting it for speculation friday. ♪ alleluia see, if appears as though pharmacyclics has developed an anti-cancer therapy with a drug that could put celgene's incredible flagship blood cancer franchise revlimid -- i don't want to say to shame because it's too good but could really overshadow it down the road. the pharmacyclics drug is called ibrutinib. i'm going to mispronounce it several times. the company submitted it to the fda over the summer, and the fda will likely render its decision on whether to approve it by february. although i wouldn't be surprised, by the way, if we get a verdict by the end of the year. it's being studied as a treatment for all sorts of blood cancers, including chronic lymphocytic leukemia and mantle
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cell lymphoma and multiple myeloma. the food and drug association considering this a breakthrough drug, that's the designation the fda gives to a drug it feels could be transformational. and it has received this breakthrough drug designation three times over. it's not a sign the fda is crazy about this thing. what is it then? pharmacyclics is partnered with one of my favorite companies, charitable trust named johnson & johnson owns this drug and they're going to split the profits 50/50. j & j are not going to have trouble with distribution, once the drug is approved, something i consider likely and they're going to launch trial data and has been nothing short of tremendous. i was doing some work on this thing, and i said i cannot believe this is incredible. mantel cell lymphoma, one to deadliest most drug resistant types of non-hodgkins lymphoma, this drug showed a 68% response rate. meaning 68% of patients saw the cancer shrink.
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it had a 20% complete response rate meaning when you look at a c.a.t. scan, no tumor left for a fifth of the patients who tried this drug or how about chronic lymphocytic leukemia? or cll. that's the most common form among adults, 46,000 new patients every year. this drug produced a 71% response rate in cll patients. again, that's the highest ever for this disease. and the really amazing thing about these trial results? they weren't produced by a cocktail of anti-cancer drugs with just one medication among many. that's how most cancers are treated these days. no. ibrutinib produced these results all by itself and did so with fewer harsh side effect, no decreased bone marrow activity, no kidney or liver toxicities. so we know this could be a wonder drug from a medical perspective and the practicing oncologists are certainly very excited about it. but what does all this mean for the business side? this is "mad money." that's where things start to get pretty exciting, if you ask me. first of all, it is believed that pharmacyclics plans to
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charge $125,000 a year for this drug. i know, sounds exorbitant but it's standard for these revolutionary cancer treatments. the analysts who initiated coverage, jpmorgan, think this drug can do $6.5 billion in peak sales as a treatment for chronic lymphocytic leukemia and mantle cell lymphoma. split 50/50 with j & j, pharmacyclics would keep $3.25 billion per year. [ sneezing ] >> bless you. >> sorry. of course, that's just the beginning. because ibrutinib is being studied for a host of other blood cancers. and jpmorgan only figured it. it's figured that the pharmacyclics could have a $9.2 billion drug. when i read this stuff, i said, this can't be. but, yes, it would be one of the biggest blockbusters of all time. but wait, you say, it's already a $10 billion company. how much more could it possibly go up?
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let me put that into perspective. take alexion, the orphan drugmaker, also remarkable gains, all thanks to its main drug, solaris. solaris is expected to do $3.5 billion in peak sales for the disease currently it's approved for. that's equal to what pharmacyclics is expecting. two biggest indications going up for fda approval. thanks to this one drug, it's now a $22 billion company. let's think about that. by the same logic, if pharmacyclics can live up to the hype and i can see this company already doubling its value from here and perhaps much more, although it's possible they won't live up to the hype, which is why i'm recommending this on friday for speculation friday. pharmacyclics also has as a healthy pipeline including a pancreatic dancer drug in phase two development, lymphoma and solid tumors and pre-clinical programs. might eventually amount to something. but when you're preclinical, just say, ah, you know what, i'm not going to think about it. but it could be five years from now. plus the company is not too big to be taken over given the strength of this ibrutinib
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franchise. two years ago, gilead paid $12 billion for pharmasset, a company with no revenue, just a handful of employees, and it was right to do, because that's the hep c cure. we hope. if things go well, say the fda approves this drug before the end of the year and the launch goes faster than expected. pharmacyclics could rally hard in the not too distant future. before you get super excited, let me remind you, this is speculation, and there are a lot of things that could go wrong. first of all, the stock is up 125% year-to-date so a long way to fall if it stumbles. second, it's possible its outstanding drug won't get fda approval in which case the entire story i told falls apart. now i don't expect that to happen. but when you play fda roulette, you need to be prepared for the worst. third, even if it gets approved, the launch might go slower than expected, and, again, not something i believe will happen, it will put a serious damper on the stock if it does. last but not least, competition. do you know there are currently 159 active clinical trials for chronic lymphocytic leukemia, 270 trials going on in the country for non-hodgkins lymphoma. it's always possible somebody comes up with a better
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mousetrap. that's always been my worry with every biotech company. here is the bottom line. for the moment, it looks like pharmacyclics could be sitting on the biggest blockbuster drug in ages. one that could, if everything goes right, turn this into, yes, a $20 billion one over the next several years. there are a lot of risks to the story. so only buy for speculation. if i had my druthers, i would buy this using deep in the money call options, as i described in my book, "getting back to even" so you get the maximize upside but you're stopped out on the down side. ed in nevada. >> caller: boo-yah, sir cramer. >> oh, man, thank you for recognizing i was -- i was knighted by cnbc. what's up? >> caller: oh, fantastic. you should have been knighted because of all the great things you do for us small-time investors. >> we're trying. we're all small-time. i was the smallest of small-time when i started. what's up? >> caller: last week i was really interested in boston scientific when you listed those five biotechs. >> yeah. >> caller: you went through it
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and you skipped what i needed to know. what's going on with boston scientific? >> just an actual, honest to betsy, earnings turnaround. i'm laughing only because it had been on the floor for so long, it was like part of the lumber liquidators problem. but you know what, this thing is making a comeback, i recommended it six to eight. i'm sticking by it. it's got a lot of earnings momentum. how about sonny in california. >> caller: hey, boo-yah from california. how are you doing? >> all right. how about you? >> caller: good. i'm calling about acrx. it's doubled this year so far. i just want to know what you think about the stock. >> man, you know, we are doing -- i don't want to front-run my own work here. we are doing a takeout of these -- of this stock and a couple others for the next two weeks. because there are so many, i feel like unless i knew exactly where the trials are, i'm going to mislead you. so i'm not going to mislead you. we're going to do it later, another time. but i'm giving my promise i will
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do that. from blockbuster drug to breath taking climb. i want you to take a look at pharmacyclics. i think it's the real thing. stay with cramer.
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on tuesday, "mad money" is celebrating our 2,000th episode. can you believe a strapping young man such as myself has 2,000 episodes under his belt? neither can i! 2,000 episodes of bringing wall street to main street. figuratively. hey, but wait a second, next week we're doing it literally. we're bringing cramerica to the new york stock exchange. live, you've got to come on down, help us celebrate this milestone. go to for details. and now it is time! it is time for the "lightning round"! on cramer "mad money." this is like our 1,998th lightning round. we take rapid-fire calls. and then the "lightning round" is over. are you ready, skedaddy? it's time for the "lightning round" on cramer's "mad money." let's go to jeff in texas. jeff.
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>> caller: mr. jim, how are you? >> all right, chief. what are you up to? >> caller: opening day at the texas state fair. listen, a lot of data breaching going on today and i'm looking to do some research on lifelock. >> you know, this was a company that came public during a period when the company was not kind and since gone up. why? because it's got fast-growing revenues. i like a company that does that. i think it's okay. i would like that company on our show. may i go to bill in pennsylvania. bill. >> caller: mr. cramer. the question is on linn energy. a little while ago, they were in the low 40s, now they're struggling to stay in the mid 20s. >> they have an s.e.c. problem and until the s.e.c. problem is cured, i can't get behind it because s.e.c. counting issues equals sell. always been the case. i've got 500 shares in my charitable trust. wish we didn't have any. don't like it, but it's been frozen. see what happens. too low to sell, i think. stafford in oregon. stafford. >> caller: hey, jim, how are you
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doing today? >> all right. what's up? >> caller: i want your thoughts on oasis. i know goldman sachs has -- >> oh, my, did they ever love it. counter oasis with simmer x, they're both really good. i intend to do a program about all the others that keep popping up that are so good. much more oil in the ground than people realize in this country. josh in florida. >> caller: boo-yah, jim, from florida. >> boo-yah. >> caller: i'm going long buccaneers, quarterback mike glennon. >> the other guy is benched permanently. what's up? >> caller: i want to know how you feel about rite aid. >> like rite aid. it's moved up so fast. i've been doing that on jim cramer on twitter, pushing rite aid very heavily. i think it's a great turnaround story. let's go to vincent in my own state of new jersey. vincent! >> caller: jim, thank you for taking my call, and thank you for all your help. >> of course. >> caller: jim, i am an -- i'm retired, and i am living on my investments. and basically, i'm concerned
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about one of my largest holdings, which is verizon. >> no, verizon is fine. it's got a good yield. it's making that big acquisition. but the acquisition -- i would not sell verizon. i like verizon. and that, ladies and gentlemen, is the conclusion of the "lightning round"! the "lightning round" is sponsored by td ameritrade. >> thank you. >> apparently the batter is less porous, which allows less oil to make its way into the fry. you like it? >> i like it since i got rid of that king. remember that scary king? >> oh, that king was frightening. >> 150 calories. versus mcdonald's 226 calories. >> just getting some lipitor. you mind if i take a little lipitor? what, you have a problem with that? >> boo-yah from chicago.
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home of the 3-0 chicago bears, the monsters of the midway. >> yeah, rub it in. you think we're all from chicago here or something? is that what you think? >> yes, i do. >> all right. mike in minnesota. mike. >> caller: boo-yah, jim. how are you, buddy? >> mike, mike, mike. it's hump day. >> the last guy was a minnesota viking guy, 0 for 3. what's up? hurt in colorado with the winning peyton manning, with the winning orange crush, with the winning, winning orange curt. >> ooh. >> caller: jim, this is vince, giving you a philadelphia boo-yah! >> i'm giving you the lesean mccoy comes to play boo-yah. kevin in pennsylvania. kevin. [ snoring ] >> kevin? kevin? wake up, partner. i think we have to take another call. kevin is napping.
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where will it send me... one call to hoveround and you'll be singing too! pick up the phone and call hoveround, the premier power chair. hoveround makes it easier than any other power chair. hoveround is more maneuverable to get you through the tightest doors and hallways. more reliable. hoveround employees build your chair, deliver your chair, and will service your chair for as long as you own your chair. most importantly, 9 out of 10 people got their hoveround for little or no cost. call now for your free dvd and information kit. you don't really have to give up living, because you don't have your legs. hoveround replaced the legs. and now every hoveround comes with this handy tote bag and cup holder for access to your favorite items. and right now, get this limited edition hoveround america travel mug free with your hoveround delivery. [singing] hoveround takes me where i wanna go. call or log on to to find out where a hoveround can take you!
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this has been a great year for biotech, especially biotechs focused on treating cancer. that's why tonight, speculation friday, i want to take a closer look at array biopharma.
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symbol arry. it's a tiny, $700 million company, $6 stock. develops drugs that fight cancer, as well as other blood disorders and other things. the company has six phase three trials they expect to initiate by the end of the year and four of those are already in dose trials, including one trial for melanoma started just this past week. array also has a host of partnerships with a lot of companies we talk about all of the time. novartis, astrazeneca, and celgene and keeps the company funded. the stock is up 64% and up 28% since i gave it my blessing for speculation at the beginning of july. sometimes get 'em right. let's check in with ron squarer who is the ceo of array biopharma and learn more about his company and where it's headed. welcome to "mad money." >> hi, jim. >> we recommend your stock, because we felt that you, as -- even with a market cap under $1 billion, had perhaps the most
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shots on goal of any of the targeted small-molecule players. why is it that you have many more than others and not just more focus on, say, one or two? >> yeah, well, it's part of our legacy. the company has had a long history of partnering with companies, and we have learned a lot through that process, creating great products in the hands of great companies. you mentioned a couple. novartis, astrazeneca, celgene, genentech, roche, to name a few. we're at an exciting point for the next few months and certainly the next year where we're coming up on some big catalysts on products that we're taking forward ourselves. >> i saw that celgene has a take, and celgene has multiple -- we think the world of celgene. and i sometimes think, okay, how can array top them? how can you -- what do you have that's so special versus a company that we all love and has done such an amazing job? >> well, you know, i think that celjene and array actually have something in common, which is really good science. and you're a fan of celgene's.
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one of the things they've been fantastic at is really picking good science, getting under the technology, and making just excellent decisions. and they seem to have a great track record. we have been partnered with them for some time. actually, doing research for them in collaboration with them, over the years they have actually contributed about $50 million to the company to support those efforts. and those are going on right now. >> let's talk about some of these. for instance, i see multiple myeloma, but i also see gastric and thyroid, breast cancer down the road. i know that -- why don't we talk about the ones almost -- that may be in the next 18 months, people will be signing up for trials. >> yeah. well, you know, i think we can actually divide up the company pretty easily. you know, we put about 18 products in our history into human trials. 14 of those are still in development. and you can kind of split it up into four we still own completely and ten that have been partnered. so let me start with the two that are partnered that are most advanced. >> okay. >> and those are the ones with astrazeneca, and the one with
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novartis. i'll start with astrazeneca. there is big news, we believe, coming up soon. >> right. >> yeah. >> american society. >> well, it's a lung cancer trial. >> okay. >> that everybody is -- really looking forward to astrazeneca really starting to dose patients. it's a particular mutation, an important part of our story, k-ras about 25% of lung cancers and a lot of patients out there, 325,000 in the developed world. and this is an important point, because we like to develop drugs that are targeted to specific patients, work really well. it's good for patients, physicians and certainly payers. it's a huge commercial opportunity, and we that astrazeneca will start dosing that trial soon, which would involve a milestone to us, more importantly, it will be moving to market. >> how about the one you're working with onyx on, because we're excited about onyx and the merger with amgen. >> so with onyx, that's one of our wholly-owned compounds and the two we said we're going
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forward with is for a multiple myeloma, and we have another blood cancer drug, myelodysplastic syndrome. 614, with you -- but i would say 520, we put out a lot of data, and it's looking really good. the onyx connection is that we had an opportunity to start a clinical trial with carfilzomib, the real driver for their valuation, that really drove the sale to amgen recently. we had an opportunity to pair our drug with their drug early before it was approved and we're one of the few compounds now that is actually in substantial clinical trials. we're going to give an update on that data at a.s.h., the big blood cancer conference, at the end of the year and around the end of the year be able to tell folks what our plans are for 520, the multiple myeloma drug for next year. and there is a lot of reason to believe that the data will really encourage us to go forward into pivotal trials. >> i know a lot of people close to home have asthma. and i know that this is a faraway drug, but is it already worth talking about because it's
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such a huge opportunity? >> you know, you can't avoid one really exciting thing about the drug. we call it 502. it's a stage 2 antagonist, a new mechanism in asthma. what's incredible, it's oral, and it showed a statistically significant efficacy in a robust trial. and it's also safe. in our trial, it was actually better tolerated than the placebo, basically the sugar pill. there has not been a drug that was -- that has been oral, that has shown efficacy, and that has been safe enough to be used in broad population. >> right. >> in 15 years. >> i know. >> since singulair was on the market. while some patients are managed on singulair, its efficacy or effect can wane over time. we think there is possibly a very important contribution to be made for the treatment of asthma. not for our company to develop. we really need to partner. >> glad you said that.
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>> so we're really talking to the folks you would expect, the folks in our industry that are targeting both asthma and respiratory disease. so a lot of interest, but, you know, until we actually do a deal and announce a deal, it's hard to know where it's going to go. >> a lot of shots on goal, probably more than every company i deal with. very small cap stocks still. thank you so much, sir. that is ron squarer, the ceo of array biopharma. just giving a presentation today. you can take a look and learn all about it. stay with cramer. one man, one mission. >> i just want to make you money! >> eight years. tens of thousands of miles traveled. hundreds of ceos. thousands of callers. millions of your e-mails and tweets. it all adds up to mm2k. this tuesday, 6:00 and 11:00 eastern on cnbc.
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look, before we get to your tweets, we've got to do some housekeeping. back on september 17th, ken in my home state of new jersey, asked me about nektar therapeutics. it's nktr. this stock just got crushed, fell 24% today. after nektar announced last night in an important clinical trial of their drug for chronic pain missed its primary end point. these are the kind of risks you run when you play with small-cap development stage biotechs. so what do you do with nektar now? i say wait for the dust to settle. this is a serious blow, but the company still has the rights to five drug candidates in phase three trials and having an r & d
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day october 8th. stay away for now and let's see what happens at that meeting. if you got stuck owning it, maybe sell it to -- sell some of it into the hoopla for that meeting. and yesterday john in nevada called about gt advanced technologies and g-tech. and i said i would get back to him. g-tat supplies equipment for the manufacturer of photovoltaic products, mainly reactors used in poly silicon furnaces and here's what's important. sapphire l.e.d. furnaces. this stock had a big pop after apple announced the iphone had a scratch-resistant and fingerprint recognition home bar. meanwhile, samsung's smart watch will have a sapphire screen cover too. while these are both positives, they are baked into the stock and what g-tat really needs is not apple's home button or samsung's smart watch but the actually screens which require a lot more sapphire l.e.d. and hence be a home run for a equipment maker like g-tat. given the move, you have to wait for a pullback in g-tat before
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you consider buying. now i want to revisit two ipos that we have gotten a lot of calls on. back on friday the 13th, bill in new york asked about insys therapeutics. i said i needed some time to do some homework. it's the red-hot health care ipo, a company that markets an opioid and synthetic marijuana drug for cancer patients. i mean, i know that's one of the people who ask about these stocks at jim cramer on twitter all of the time. this is a drug for chemotherapy. to reduce nausea and vomiting. the stock only popped 19% on the first day of trading but since may rallied 328%. downright incredible. even up here, though, insys oddly trades at a reasonable valuation and a viable takeover target. if you already own it, i suggest you ring the register on some of your position after this magnificent run but then, please, let the rest ride. i think this might be opportunity. it's not done. i intend to do a further deep dive when the heat from washington melts the market. yeah, i kind of liked it that
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much after doing the research. last but not least, 16th, we got a call from ray in michigan, who stumped me on scion, symbol cyni, a disappointing telecon equipment ipo, trading around 10%. looks like investors were disappointed with the guidance and product mix from the first quarterly report as a public company. first! the first report out of the gate is always important. and in a new minted ipo blows, the stock has to spend time in the penalty box. we need to see a good quarter before i would be willing to circle back and even then, it's a real blow when you are right out of the chute. now for your tweets. @jim cramer. ted's love 13 asks, thoughts on our ip after a recommendation two weeks ago. deutsche bank downgraded international paper. i think that downgrade was wrong. they were talking about a soft container board. i don't see that. i see capacity coming out. ip is the stock that my charitable trust very much wants to buy. i think you've got an opportunity to buy ip into the washington meltdown here. our next tweet comes
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from @jeffschmidts, what are your thoughts about westport. wprt. should we bite or wait until the dust settles. happy 2,000th, thank you. the trade occurred, put the block on, the stock didn't sustain. one of the reasons i find this stock so difficult, they have to keep financing. because they've got -- they're all in the -- they're all in the future. but you know what, schnear energy didn't have to do any more deals and that was the other one that was really good. i think that westport is not as good as i would like, because they keep doing the financing. and we have them on. good story. i would rather own cummins. all right. let's take another one. this one is from @plaskaz. what's up with game stop? insider selling some stock. is this still a hashtag buy or a pullback or opportunity to buy? when you have a stock this up, profit-taking is going to happen. but the story is a strong one and we are going into the gaming season. i would use the weakness to buy game stop, not sell it. "mad money" is back after the
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jcpenney is bad. i like to say there is always a bull market somewhere. i promise to try to find it right here on "mad money." i'm jim cramer. i will see you monday! a case of stop me before i spend again. >> you know, i can't have children. um, i got laid off. i was divorced. all those, i think, made me try to compensate for... for feeling like i wasn't worth it. >> you can never fix a financial problem with money. and you ask me, "can i afford it?" >> i want to buy a pair of santos de cartier sunglasses for $850. >> $800-- oh, wait, wait, wait, wait, wait, wait. hi, everybody.


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