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tv   Mad Money  CNBC  March 16, 2015 6:00pm-7:01pm EDT

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one. go to the website check it out. fedex into earnings on wednesday. giddyup. >> thanks for watching. see you back here tomorrow. meantime "mad money" make you money. i'm here to level the playing field for all investors. there's always improvement somewhere. i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." other people are here to make friends, i'm here to make money. my job is not just to entertain you but teach you, to educate you and to coach you. so call me at 800-743-cnbc or tweet me at jimcramer. why does this market fail to discount all sorts of good news even when it seems almost self environment? how can the market continually
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undervalue whole groups of stocks in anticipation of good earnings or great news? and that's what i've been pondering all day. a day where the dow roared 228 points. the s&p 500 fell to 1.35% and nasdaq jumped 1.19%. now i know that if the dollar had been very strong against the euro and other currencies, plenty of situations bullish today would have gone sour and probably will tomorrow. we only have two up days in a row of the dollar since middle of december. that's right. the dollar is going up almost impossibly almost every single day and the euro has been strong two days in a row once. so i think this could be a lucky gift. but i've got to tell you. forget about currency for a second. this failure to analyze positive moves ahead of the action has become endemic. it's astonishing to me given for my almost entire stock trading life, the market has accurately discounted good news beforehand.
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not afterwards. and all that's been doing lately is doing it afterwards. market professionals are so used to selling on the news that they're continually blown away when stocks manage to gupo up again and again, both before and half announcements. never seen anything like it people. take biotech. this phenomena is most pronounced, we've seen the market fail to anticipate good news here. biotech stocks reacting very well after the news. even when the news is something that we've been predicting over and over again on "mad money." consider it stock 2u7 $3. when did i tell you the anti-cholesterol data coming this past weekend would be fabulous. send the stock much higher how obvious was this? we had the ceo on show last week sitting right here telling tlus could be good news on a nafl anti-cleft ral formulation at a cardiology conference last weekend. then i repeated it three times!
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i figured that information had to be baked into the stock. i figured the stock would be down big today. no. it's up huge. historically whether you actually get the data as we did weekend and it's great, the stock typically goes down no matter how positive the read through might have been. the shares would have run up in advance. it was incredibly positive as we said it would be. and, yet, the stock took off like a bat out of hell general way. telling you guys first time never seen this never seen this pattern before. i guessme. maybe that's what it s they're breaking out and the analyst community is raising the price target tomorrow and stock can recharge and go even higher. yeah, whenever i mention regn i necessity people critic view me as a towel since i recommended it since it traded at $5 a decade ago. and how i did know that data would be good? what kind of special research did i have? i don't know. i have my annual physical with
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my cardiologist dr. ben lewis. i can't take the current crop of stattens because they cause my type. i went in on the clinical trial. the news is supposed to be is so g my cholesterol is low enough i didn't need to subject myself it to. i do this for me. get a cardiology. it's good anyway. it will be good if you got a checkup for your heart. ask the doctor to opine on this new cholesterol drug. that stock went higher as well. your doctor will tell you he or she wants everyone that high levels of bad cholesterol to get into the clinical trials. my cardiologist said hey, this is good. so will yours. it's the same with other companies. i pushed the stock endlessly. even when there sin cider telling. it always seems like there are new people that haven't heard of biomarine. why do they buy now with the stock on the fly?
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it is run and run. there is actually a big insider selling. maybe that's why people are skeptical. i missed the last 50 points because we already caught 130 point gain. it could be become onest biggest drugs out there. all i heard it is won't than big. you know, now that it's going to be huge since advy came in and paid throughout nose for the company, why not? the biggest drug is coming off patent. that means it is a gigantic hole to fill. the stock is going up. but it's acquisition seems like a desperate gamble. no matter what i'm saying no matter what i'm saying this i'm saying that pharmacyclics is there. the stock turned out to be dramatically undervalues. even if it was already up 80% lately. we have said that it's minimally
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invasive heart valve replacement system is far better than the current formulation. i've been saying this really for three years y? because my late father became a candidate for edwards device and the doctors said this is the greatest thing ever. okay. now people discover it. for three years i've been coming out here. now? you know what? even though it's up huge this one is not done. it makes sense for any major drug device company to acquire. still up here which brings me to biogen idec. on friday we're going to get data on biogen's breakthrough alzheimer's drug. i think that everyone and his brother knows. this i think it is so obvious. plan is nose on my face. it's the most discounted new drug on the planet. the stock should sell off when the data come out. but everything i just told before you this indicates that won't be the case. you can actually buy some biogen here ahead of the data. and still make money. i don't know how that is possible people. i don't know how the stock
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market can be so stupid. biogen probably works even though it rallied at seven points today or 2%. the stock market is not doing the job. they're not taking into account breakthroughs. it's saying, no, no. it's okay. it's okay. so i guess it is not too late for any of these stocks. particularly biogen on the eve of the new alzheimer's formulation. extraordinary. it's not even biotech. there are others. pharma makes no sense to me either. not discounting correctly. last week when they made a play for salecs they went on the air sitting next to me and he said that val yanlt will have to raise the bid. i said when they did, both stocks would go higher. everything came to pass in the trade worked. that's nutty. it's not supposed to -- stocks aren't supposed to be hit like this. take the absolute favorites, harmon. we've been saying they're the play on the technology. a major research firm comes out and says it's the play on the connect a car.
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that means we do another car company. tesla. the stock and car person tweeted this very weekend that he'll have a major software announcement set for thursday that will alleviate range anxiety which i guess is a disorder that grips tesla drivers. the tlaes will rally into the meeting and then keep rallying after the meeting as short sellers get run over and they raising in that they say. as guess the market continues on its merry way. here's the bottom line. this market can't anticipate anything positive because the skepticism is just too thick. the corrosion and cynicism seared into investors heads is creating opportunities for you at home. opportunities, frankly that, shouldn't exist. that never existed before. but keep popping up every day in the silly ignorant market that simply doesn't know how to discount good news.
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there! tesla, biogen go figure. dave in illinois. dave? >> jim, on behalf of all of your viewers over last ten years, we want to thank you and your staff for your graciousness knowledge, your passion and enthusiasm that you deliver on each and every show. >> man, that sounds really -- i hope i can keep doing that. what is this like an 11th year or something? go ahead. >> yeah. jim, my question is about alibaba. with $437 million shares becoming unlocked this wednesday or 17% of total outstanding shares is there any possibility of an upside or is it all just neutral or down side? >> we knew the big lockups in facebook which my travel trust owns bought out buyers. i think that my take is that you should be buying yahoo at $43. yahoo at $43 is my way to play alibaba. it's a shame for some but advantage for you. i'm talking about the endless skepticism. i'm talking about the silly
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market we're seeing. you know what? that gives you the home gamer plenty of opportunity over the hard bitten wise pros on mad money tonight. don't pin your hopes and dreams on filling out a perfect bracket. i got the wall street players that can elevate your game and my version of march madness. how does the stock goup nearly 60% in a year? crushing the latest quarter and get sheared by almost every anlist? and the secret to the s&p 500's success. it may surprise you. why don't you stick with cramer! >> don't miss a second of "mad money." follow@jim @jimcramer on twitter. send jim an e-mail to or give us a call. miss something? head to
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march madness has arrived. it's a time of year when everyone is filling out their ncaa tournament brackets and we have our own versions of bracketology here on "mad money" that is more interesting than picking kentucky to go all the way. today and tomorrow we're going to take you through the top two seeded college basketball teams in each region. give you the stock market he equivalents equivalents. they could take teams by surprise and parallels in the stock market. let's start with the ncaa southern region south, the top two seeds are duke and gonzaga university. so which stock come the closest to duke men's basketball which perhaps the best brand in college basketball? for me duke is like cramer faith disney. another brand with the own amazing head coach. this stock got downgraded to day, big splash.
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it went up anyway. it is almost home court advantage. consider duke's head coach, coach k. winningest coach in the history of college basketball. has become first to reach 1,000 wins in january, he's won four ncaa championships and reached the final four 11 time. who's track record does that remind you of? the ceo of disney. he has given you nearly 300% return since he took over the company ten years ago. he so humble. he won't compare himself to coach k but i will. duke has the best franchise in college basketball disney is the best movie, media and theme park franchise on earth. at the same time that duke signed the okafor the number one high school basketball player in the country back in late 2013 disney is debuting "frozen," the highest grossing animated feature of all time. even thoet names make the headlines sh neither duke's basketball team or disney are about one player. they both have amazing depth. duke has jones and justice
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winslow and disney has comic titles like the new avenger movie coming out and the star wars franchise. when duke was sputtering disney was delivering cinderella which i guess i have to see now. thanked, bub. and that's just disney's movie business. the company is in television and espn which is the one tv property where you still have to pay out. sports are the one thing people still like to watch live. and disney's got a terrific theme park business that should benefit hugely from cheaper gasoline and has in the last quarter. tend of the day, disney has a terrific balance between offense and defense like duke. duke has faster growing businesses with big catalysts coming up. it is also the company that is not too damage philadelphia the federal reserve decides to go the know nothing route and raises routes too rapidly. number two seed in the south, gonzaga university. even though it's actually based in spokane, washington. i think the terrific franchises
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in washington, my mind goes straight to boeing. gonzaga is a blue clip name in college basketball. 15 consecutive ncaa appearances and the same way boeing is absolutely a month own stock here. both of these stories are all about having a fantastic coach. gonzaga was a sleepy mid major team that never made an ncaa tournament until 1985. then they brought in a new coach and since then they've made the tournament every single year. wow. reaching the sweet 16 four time. how about boeing? for years it is a fairly unremarkable stock. in 2005 the company's old ceo was forced to resign and the company brought in the bankable jim mcamericany from 3-m. hitters abound! lately both gonzaga and boeing have been on fire n 2013 gonzaga was a number one seed in the ncaa tournament for the first time. this year they earned a number two seed. as for boeing more than doubled since the end 20612.12. i think there is a lot more upside. and the fact that few months ago it announced a $12 billion buy
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back with a dividend boost tlachlt is take 2.4% yield at these devils. that is bigger than gonzaga has given you, at least monday takerly. of course, some might say that boeing is fully valued. just like you could argue that gonzaga doesn't deserve a spot in the number two seed. however this year gonzaga is the best team fielded in ages. and boeing run up dramatically, the stock trades at 17 less next year's earnings estimates. i think the numbers could be too low. boeing has been a power house. especially after our interview, i bet that continues. let me fill out the march madness brackets with speculative names from the south region and the stock market an logs. three speculative names, georgetown georgetown, st. johns and san diego state. georgetown is like cisco. both of them are storied franchises whose glory days are well in the past and working their way back to performance. they both have coaches in the respective roles for ages seen the peaks and valleys. john thompson iii coached the hoyas for years and the ceo at cisco, 20 years.
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georgetown and cisco have been on a terror. georgetown has shown great consistency all season. cisco rallied more than 30% and now given us eight consecutive upside surprises. the most recent quarter being perfect. the backbone of the physical internet tone abling the next hot trend, the internet of things and helping clients keep the networks secure which is why i think it has more room to run. and then you want to take a flyer on st. johns. shake shack doesn't have a lot of depth. it only had 93 stores at the end of january. st. john's incredible starting lineup but no bench. short term possible it and s. joans are overvalued. that could hurt with you st. jobs. i see the shack growing into the market cap. shake shaquille, what else? keep an eye on this san diego state which is incredible closer. having won the last 145 straight
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games when they held the lead with five minutes to go. you know who else is incredible closer? activists. the drug companies has been a serial acquirer. the stock is up 450% over the next now years. then there is southern methodist university. just like it's been a lousy year for oil, i think southern methodist could be the exception to the texas basketball slump. that makes it like kend kinder morgan kmi. it is really more of a utility with consistent growth and a bountiful dividend. lots of doubters in the name. they say the c.o.-2 line is not so hot. i think it's best in show. not going to indy. least but not least, the iowa state university which has won five straight games in which it trailed by double digits. it's kind of like eaton which i'm regarding perhaps as a comeback kid. industrial is roaring of late after returning form with two straight earnings. it's a charitable trust name with a good piece in a weekend magazine. here's the bottom line.
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if you want to play march madness, "mad money" style," then you think about the great teams from duke and gonzaga. remember that just like cramer faced disney and boeing. stay tuned for more stock market bracketology and how much of the other bracketology shows really made you? enough said. >> there! stay with cramer. much more "mad money" ahead. my take on march madness including companies that have enough gain to represent the top seeds in the east. then it sells lip gloss to eyeliner. this stock is far from just skin deep. i have a beauty player that can help you cover up any weakness in the portfolio. it's the ultimate gauge for the most money managers but for a real good reason. find out the secret to success. stick with cramer!
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♪ help brazil reduce its overall reliance on foreign imports with the launch of the country's largest petrochemical operations. when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.
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seven for nine. now there's a ratio. i'm talking about how seven out of nine analysts congratulated ceo mary dylan and her team at ulta salon for the remarkable quarter announced last week. one where health and beauty chain delivered 11% increase if same-store sales. a true blowout in every single sense of the word. long ago in the days of the great bull markets of your we
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had a lot list cynicism and more optimism among the analysts particularly on the conference calls. i'm not saying they were cheerleaders. they did regularly glow on a tierter irving quarter. that's why i came up with the conference call congratulations ratio, regular earnings report garner no particular kudos on the call a good one might have a couple good job. but when you get a barn burner of a quarter, you heard the analyst community gush congratulations and an amazing rate! ♪ i knew when you heard more than half of them openly praising the company you had a decent investment for the long term. when you had a congratulations ratio of almost perfection. with absolute perfection sim possible. there is always some kill joy in the analyst crowd. that was in terrific signal to get long, buy, buy, buy, buy, and stay long. seven out of nine congratulations on that conference call will do it for me. heck, seven of nine is hot and i'm not just talking about jerry
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ryan's character of the same name in star trek voyage area. i would say that ulta stock is even hotter than jerry ryan in that full bodysuit. now how does it happen? how do you have a seven of nine on a conference call? she put on a clinic of how a retail kerr generate positive numbers. ink ads, double digit gains and continue to generate the gains. ulta is executing at an amazingly high level. dylan made out strong come pz as we call them. the comparable same-store sales and keep generating the first. customer relations manage. . crm. it is building loyalty as part of ult aa rewards program which now has 15 million active members. we know from ulta partners sale if you don't know what customers want, if you don't know them you'll lose them.
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and once you bring them in, you got a capitalize off them. ulta got you doing that in spades. second imperative in store technology solutions. use mobile devices to enhance the guest experiences. not just pieces of ip pear. product innovation. you have to have that. mary is improving on house brands. i thought this initiative sounds like sephora execute sod executively. i wouldn't be surprised if a major retail chain partnered with ulta the way that jcpenney partners with sephora. if i were target if i were brian cornell, i'd pick up the phone and call mary and seal a deal to produce ulta ultimate for an ultimate in store experience. smokin'! fourth key part offering exceptional service in three
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core areas, hair, skin, health and eyebrows. it's like four. do you know that hair salon industry may be the single fastest growing retail business in the country i didn't. it is looking real timeless. it is ulta sweet spot. fife sj e-commerce. is on fire with a 55% growth rate. and it only represents 4.6% of the company's total sales, i think this initiative will be a real needle mover judging by the amazing numbers. they use the online channel to sell the high margin house brands. but it's also adding lancome, matrix and redkin. finally, the sixth imperative infrastructure spending. she picked up a lot of knowledge about how the am wish worked. she learned marketing at mcdonald's where she was the chief marketing officer. but she knows that nothing works unless you have the right merchandise in hand at the right time much that's you need a
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professional buildout. something by the way that tripped up so many retailers who have not been able to charm, to figure out the supply chain, therefore, charming the guests by saying of course we have it. not her. dylan has it down. now i know manufacture the initiatives sound pedestrians. that's okay. the bottom line is this is the stuff that 11% comps are mafd. pedestrian blocking and tackling offensive line people. congratulations, mary! and thanks for nailing the quarter even better than i, your biggest media champion ever thought possible. we got to go to mike in illinois. mike? >> jim, jim, jim. >> i'm going to say this to you in the 846,000 followers on twitter, rite aid is doing the right thing. they bought the pharmacy benefit manager. it is digesting that. it is going to be a great
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company. it will convert the people into rite aid loyalty customers like i am and the stock will go higher. it is just resting. will he me alone on at which time better. this i'd rather talk about tim tebow and the five minutes he spent with the eagles! ulta salon. you did it. you nailed the quarter better than anyone could have expected. mary dylan, i say congratulations. there is a secret sauce to the apple form. and a living legend kicks off a special edition of the lightning round and "mad money" madness continues with the stocks that have the skills to represent the top seeds in the east much that's next. stick with cramer!
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welcome back to bracketology "mad money" stichlt our financial version of march madness. you know i'll do anything and everything to help you understand the stock market and i love sports metaphors. they drive it home. which is why this week we're looking at the top ranked that names in the ncaa basketball tournament and using them as a lens to understand our favorite stocks. we already went over the top two
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seeded schools in the south, duke and gonezagagonzaga. i view them to be similar to disney and boeing. now time to take down the top teams in the east region and give you more speculative names where i think it may be worth taking a flyer. as we fill out the brackets villanova is the number one seed in the east. i'm a big fan ofville noef yachlt believe it or not, i have them going to indy. and one of the secrets to this team's success is the balance. they have many different players who can step up and be the team's star at any given night. at the same time they're not very flashy. just get steady consistent play from all of their players who seem to keep improving. in short, villanova reminds me of 3-m, they make vast array of products with impressive balance across the many divisions. 3-m is far from plashy too. it is a world class operator under the leadership of the phenomenal ceo. what do i mean when i say both villanova and 3-m are balanced? villanova has eight players on roster who play a significant
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number of minutes per game and deliver an average of five to 14 points per game. the bench, sixth man, health care consumer graphics and energy and energy none chf accounts for more than 34% of the revenue. and like most of the core players upped the scoring consideration, all five of 3-many is seeing the sales grow at a clip. the whole company works together at strong numbers. both villanova and 3m incredibly consistent i. nova combined record of 61 wins and seven losses. 3m never deviated from the expected earnings per share by 1.a%. that means they have no big surprises. i think 3m is a tremendously consistent kplp with fabulous visibility. management has a clear view of how much money they're going to make. they've been working steadily
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higher. the elevated levels supports a 2.5% yield. 3m rallied after being slammed last week. there is the stock you should buy into weakness. how about the second seed in the eastern va university cavaliers. they exploded into the national scene over last two years. after several years of irrelevance. it's all about stifling d. to me that brings to mind the virginia based stifling d or bittal atk. i think necessity represent the best value in the group. a group that is on scorcher mode. rallying $5 and orbital was down 92 cents. it did hit the 52-week high earlier in the session. they managed to return to prominence by embracing on an incredible team defensive profile. finishing this year as the number one ranked adjusted defensive fish rating according to up from number
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five last year. whatever. orbital atk was developed this year. they would merge and combining the aerospace with atk's weapons and ammo bids. they've had a couple setbacks. for uva, losing the best player justin anderson in february. right what hes with expected to return he was rushed to the hospital for an emergency appendectomy. atk, one of the unmanned rockets exploded last october. even as the rocket program is back on track and the stock managed to rebound nicely. finally, both virginia and orb i didn't thinkal atk are underrated. just at the end of the day this is a team that went 29 pif 3.
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none of the three losses were by more than six points. orbital atk doesn't get enough respect from wall street. stock trades at only 14.7 times forward earnings estimates. that is a 10% discount to the group. they should be trading at a premium. how about a couple flyers? lower seeded, more speculative teams. take a flyer on the ninth seeded louisiana state university they remind me of hall yard health. for those that don't remember. halliard is preparing for a new history. similarly, the lsu team is preparing for a new rear as returning to the ncaa tournament for the first time since 2009. hill. lliard is the leading player when it comes to surgical and infection supplies gloves masks, gowns, protective gear. they account for 45% of the team scoring and over half of the
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rebounds. in terms of the future halyard will grow the business. lsu has a top ten recruiting class which could make next season's one of the best in the country. halyard is in the same mode. future looks bright. hence, why we own a fraction. we're taking a long term view like lsu. what else? how about the louisville made play in kfc yum center. there are much higher quality team than yum brands. they're more like chipotle. they've had enormous success in recent years. that kind of success breeds losty expectations. louisville had a fine season. it is disappointing for a team with such a great record. chipoltle sold off because they're worried the turbo charge growth may slow. i wouldn't count out louisville either. here's the bottom line. this month manufacture you are going to spend hours upon hours trying to figure out how to fill out your march madness brackets and drive yourself crazy if you
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lose f you're willing to spend half as much time researching stocks, you could make a heck of a lot more money than bracketology will ever make you. all right. "mad money," it's back after the graek. break. ♪ help join a continent with nearly 3 million rugged square miles with a single broadband connection. when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.
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i've got a question about a stock. wynn. all of a sudden the smashgt going down. i don't understand why. i'm waiting for you know cramer to tell me. now where is he? happy anniversary, jim. you've been terrific for everybody for new york for the whole country. and especially for regis. thanks a lot. >> thank you, regis, for all of your support in day one i got that letter that you isn't me. thank you. and what can i say about wynn? they crushed the trade taking wynn's earnings with it. thank you for those who helped me celebrate ten years of "mad money" last week. i'm starting work on a second decade of making the market work for you. so why don't we get started? now it is time. it is the lightning round.
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that's right. the lightning round is over. are you ready? time for the lightning round. let's start with tommy in new york. tommy? >> jim, a big march madness st. john's university boo-yah to you. >> loving that. what's going on? >> tax time. your thought on h & r block? >> i think the earnings will be consistent. i fleed to go to mike. >> my stock is rr domly. >> yeah i thought the yield and growth is g john in california. john? >> jim this is john big boo-yah from san diego. had a question, what do you think about the pacific ethanol? >> no i don't like the ethanol stocks. sell, sell sell. okay. let me go to eric in pennsylvania. eric? >> hey, what up? what are your thoughts on sanchez energy? >> no. stay away from sanchez.
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they're trying very hard to be able to refinance that balance sheet and making sales number thank you. let's go to nash in new york. >> jim, pharmaceuticals, ittt. buy, sell or hold? >> nash is nash. this is about a particular kind of liver problem. i think this drug is very -- is unique and worth owning the stock even up here. bill in washington bill? >> my stock, jim, is alcoa. >> all right. enough pressure now. what is going to go to $12. buy some here. robber in the new york. robert? >> happy early st. patrick's day boo-yah you to. >> that's right, i have to wear a green tie tomorrow. what's going on? >> i'm looking at accelerate diagnostics. >> i do not know them. i know that this is an antibiotic -- for bacteria infections. i have to do more work. maxine in new york. >> hi thank you for taking my call. >> of course. >> i really need your advice. i bought micon. ever since then it's been going
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down. >> yeah deutsche say they may rally the second part of the year. the problem with them not to mention intel and hewlett-packard and microsoft is they are pc related. pc means sell sell sell. sandy in california. sandy? >> hi, jim. happy anniversary. >> thank you. >> now that trinity industries seem to have gotten past the safety problems with the highway guardrails, you would be a buyer of the stock? >> i saw. that i still don't like the core business which is the rail cars. there is just too much capacity. i'm going say no to that one. let's go to virginia north carolina. virginia? >> thank you, jim, for taking my kachlt my stock is vodaphone. >> it's okay. not great. i prefer verizon which i think is doing better. one more. let's go to wayne in illinois. wayne? >> boo-yah, jim. >> boo-yah, wayne. >> my stock in question is spark therapeutics. >> yeah gene therapy, philadelphia. i do like this company.
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i got to tell you, it moved a tremendous amount. we can't like every single one of them. i like isis ahead of new dat yachlt and that, ladies and gentlemen, is the conclusion of the eye lightning round! >> the lightning round is sponsored by td ameritrade.
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you know why it's so tough to beat the s&p 500 if you're a mutual fund snt s&p 500 is
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always reinventing itself. getting better and better with each change. that's how. the combination of new picks from the s&p 500 mid cap group that have outgrown the come padres because business is smoking. plus, the deletion of stocks that have sh rufrpg in size because businesses turned down. or stocks that are vacating the premises because they've been acquired at a big premium. is what is behind the end lts strength in this index. it's as if the s & p mid cam cap is the minor league, so to speak. they produce feemon that's get promoted the bigs to replace either washed up second rate performers that are sent down to the mid caps because they've gone trunk in size or to plant inductees to the s&p 500 hall of fame because they received hefty takeover bids and are done. we saw classic example of this last friday night when equinix, hanes brands and henry shine replaced danbury resources,
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neighbors, avon products and carefusion respectively. consider trades or the baseball. equinox is one of the hottest portions of the data business. it is become best in class data center play. it's proven time and again to be the warehouse of choice. it's incredible demand. compare that with danbury resources. ab oil and gas company struggling with the lower oil prices. danbury is one of the most challenged names. i'd say if oil doesn't go higher it may be in real trouble. maybe there is some synergy with the stock symbol dnr. danbury drops it minors which is the graveyard of the losers and the fertile ground for the next winners to join the s&p 500 roster. danbury's all washed up. eqinox is on fire. and then there is the real estate in the new york area vibt with rapidly rising rents, low vacancies and tremendous job
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growth. the castoff, neighbors. this company wasn't one time the premier land driller in america. neighbors is the best technology and historically been a favorite of the natural gas industry. it also has 48 off shore oil rigs. oil companies have been able to cut down on the time it takes to drill a well. they've had some of the fees being cut by one-third because of the collapse in oil and therefore the collapse in drilling. baker hughes has declined for 14 straight weeks. it's down 46% since the peak last october. worse off shore rates are collapsing, too, from the declines in sea drilling. that means neighbors may be among the least desirable in the entire god forsaken industry. good riddance neighbors, hello sl green. the next new addition hanes brand. a company having gathered champion maiden form play tex along the way. cutting costs and becoming the undergarment company. hanes manufacturers the goods
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itself. a recently executed four for one split. stock up is nearly 16% this year alone. plenty of room for more acquisitions and the best growth of any apparel company. welcome aboard. who makes the way for hanes? the totally confused in trouble avon. when the ceo came over from johnson & johnson, i thought avon's woes could be solved. the last quarter was a disappoint. . revenue decreases 12%. this is uniquely disadvantaged by the strong dollar. of course, when a company is that much currency composure, you have to say wow that, is horrendous. cash flow from operations decline massive $180 million. a vonn had to pay $68 million to the justice department. the weak projections for 2015 and ugly balance sheet make avon a nightmare for any portfolio manager. don't let the door slam you on the way out. then there is the final addition to the s&p 500, henry shine. the single most health care
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companies in the world. company delivering high single digit growth as distributor of dental and veterinary supplies. henry shine is simply a terrific company. the last beat and raise was magnificent. leaving the s&p 500 to make room, carefusion. another great company. 26% premium. so before carefusion could led the s&p 500 it gave the index a nice boost. this is tip calf the upgrading that goes on constantly with the s&p 500. earlier this month, skyworks solution replaced petsmart. january, hca. a giant hospital company and beneficiariry of at fordable care act got a bid from safeway. also january, endo international. inversion health care play. joined the index as a suitable replacement. back on december 4 nl the cruise line royal caribbean
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replaced the bemus. in november level three, a content distributor play that's been on a terror lately. netflix replaced jaybill circuit. this is another one of the upgrades. jaybill which was a fast growing manufacturer has stalled and halted -- had halting growth for years. level three is benefitting from the dramatic revolution in content delivery over the web. we're taking the changes from last august and one of the fastest growing drug companies replaces drilling. perhaps one of the company's most liefered to the price of oil. what a monumental change this has been. and now they're filling out the franchises with acquisitions. it rallied 28% this year. rowan, a disaster. it befits any contract oil company since it left the s&p 500. the last of those is legion. they create 20d% year to date. you have to wond we are that switch just how passive the s&p 500 really is. this isn't luck. bottom line, i can look back for years and see this pattern over
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and over again. spent names being sent down to the minors or big takeover winners being replaced by rising stars with many good years ahead of them. the model works. that's why it's so tough to beat the s&p 500. it is always upgrading itself in an active passion. despite the reputation for brainlessness and truth. it's anything but. stick with cramer. ♪ ♪ ♪ (under loud music) this is the place. ♪ ♪ ♪ their beard salve is made from ♪ ♪ ♪ sustainable tea tree oil and kale... you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing
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you see what's coming next. you see opportunity. that's what a type e does. and so it begins. with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere.
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after the close today, what happens? the completionst deal with
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activist gets replaced and american airlines. let me tell you something about why this is so endemic of what is happening. alergen they give that you big boost on the way out because of the takeover. and what comes in? how about a company that is most leafered to the lower price of oil? especially since you think oil is going down thachtz fabulous for american airlines which has incredibly low price to earnings multiple. you have a terrific situation. you have a big win in alergen coming out of the index and in walks american which is the perfect way to play lower gasoline. i'd like to say there is always home work somewhere. you can find that right here on "mad money." i'm jim cramer and i'll see you tomorrow!
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>> imagine a store with no signs in the aisles, a store that doesn't bag your purchases, one that never advertises, where you have to pay a fee just to walk in the door. who in the world would shop here? as it turns out, about 3 million fanatically loyal customers every day. it's called costco... >> i love costco. >> i bought ground beef. >> lawn furniture. >> a television. >> i bought my engagement ring here. >> ...a chain of stripped-down warehouses that's become a sensation at home and abroad. >> [ speaking chinese ] >> but its crowning achievement -- convincing you yo


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