What your technology does. It only matter who uses it, whos the customer thats what i keep thinking. Today another sedate session, s p inched up. Nasdaq. 04 need a microscope here we keep learning this same lesson about technology over and over and over again in this elongated earnings season, and its pretty jarring, because normally we care about what technologies actually does, if its helpful, if it increases speed or accuracy or power or productivity, well, it tends to be a suchls. Buy, buy, buy if its clunky and dead on arrival sell, sell, sell not these days, though. These days wall street only cares about who your customers are. Good, bad, as long as youve got the right end markets, your stock is going to be worded. Lets use roku, okay, and cisco. Roku sells to the consumer, sells to you their Technology Helps you stream videos directly to your tv cisco is a networking company, a colossus that sells to what is known as the enterprise, giant complex companies that need to connect to the web in all its considerations rokus stock has been just a consummate horse just an amazing runner an ast some in wall up 385 for the year you heard me why . Because every time you hear about a new video package, you need to think of roku, because its technology is the easiest way to connect their devices are neutral. They work with any platform, and theyre also installing their tech directly into new tvs so when disney has the most single successful launch for a streaming service in history, you buy roku in fact, if you go to rokus website today, the welcome page is stream disney plus on your roku device. Its the leading way to watch all these services, a classic arms dealer that allows the consumer to get every channel she wants. Its easy to see why the stock has had such an epic run, and why it might even have more upside no wonder it rallied more than 4 on the heels of that big disney launch. But now lets go to the other extreme. [ crying ] cisco. You dont hire cisco to install sonos in your home you hire them when you want to connect your farflung enterprise to the web. When the Company Reported last night, management gave down beat guidance so down beat that the stock got clobbered. It plummeted 7 today. Listen to what the straight shooting ceo chuck robbins, he cant help himself, he is that straight of a shooter, had to say about the world in his conference call. Over the last year, many of you have heard me talk about the resilience of the global macro environment. However, on our last earnings call, we indicated that we had begun to see some weakness he goes on to say that weakness continued throughout q1 and was more broadbased while the main challenges continue to be the Service Provider and emerging markets, also relatively enterprise and commercial. Hmm. Enterprise and commercial. Well, thats pretty much everything ciscos total production orders were actually down 4 . But america in the europe, middle east. Asia, pacific, china, japan, emerging markets got hammered down 13 those are staggering declines for this Great Company really for any company for that matter what is driving this downturn . Take a listen. Business confidence, ceo confidence has been waning, and its really been waning because of all the uncertainty, whether its the u. S. china trade situation, the hong kong situation, brexit, whats going on in washington there is a lot of uncertainty. So all were saying is arent modeling any change in the momentum, but certainly if we get a resolution in u. S. china, even an interim deal, that could potentially help well, there you go. No wonder the stock got obliterated today. Now there is real value here if you can wait but wait you must to get those gains now. How about the semiconductors once again, its all about end markets. When you look at amd, its stock has been soaring you know im a big fan of amds lisa su. When she reported stock it went to the low 30s and up to 38. Red hot pc and gaming market, Robust Data Center for them. And thats why i think you can scene screaming higher the stock can hit 38 today on the other hand, Texas Instruments has skewed for the enterprise, especially things autos. Too much weakness in the industrial economy for the longest time this market loved enterpriseoriented tech stocks investors believe theyd could keep working because they needed to upgrade in order to stay competitive that is no longer the case there are some things mentioned in brexit and hong kong and china, these stocks, they have effectively turned into market punching bags. Right now the whole tech sector feels fraught buzz of the widely vary confidence of a customer. Next week is extravaganza that showcases the best of the software and Services Committee as well as luminary, expresident , ceo of the Largest Company in the world, you get the picture. You know im a huge believer in the cloud. Big Companies Use salesforce to build service and trust with customers. So they keep hiring salesforce in the event of a worldwide slowdown or do they adobe, workday, these cloud plays save their customers money through digitization, which is why i think theyll hold up just fine thats why i think salesforce is still a buy, even though its running into dreamforce. But now i am worried about a workday. Same rhetoric i heard on the cisco call its not good. So then youve got what i call the hybrids. Hp inc. , we know hp is a big consumer brand, but it has gigantic corporate orders, and those orders can easily be cut back and just delay them thats what we saw with cisco. If it werent for the tech, i think the stock would be dramatically lower micron is too. When we spoke to the ceo he said a lot of good things about demand cameras, phones, but the largest enterprise orders, so its tough. Thats why the stock is in nomansland. Finally, you have apple. While apple has some enterprise work, its really a classic Consumer Product play. In an environment where the consumer is king, and thats why apple stock has been able to roar its up 66 for the year this is strictly a know your customers market the bottom line, until we deal with this macro uncertainty, stocks like cisco and its colleagues could be stuck in neutral at best, or have some more down days, or weeks at worst. Market wants nothing to do with Tech Companies that serve the enterprise oh, but does it love the consumer and that is the end of the story. Jeff in massachusetts, jeff . Caller hey, jim, lets give a shout out to my kids regards Canopy Growth operation. Thats plummeted ive owned it for a long time. What do you think, should i hold or sell . That was a terrible quarter i cant mince words. Its just a terrible quarter they literally have to hope the government plows over the cannabis crop in canada. There is way too much. I dont want to say its no its terrible. That industry is terrible. The eyes were too big. Thats what my mom would have said tom in illinois, please, tom caller jim, thanks for taking my call absolutely. Id like to know, what do you think about the fox day shares now that its out on its own do you think its a buy here id rather have you own Disney Disney is going to go much, much, much, much, much, much higher alex in new york, alex alex youre up. Caller jim, with arrowhead pharmaceutical stock reaching a new 52week high, is it still a buy at these levels . I dont know. Weve been saying buy it, buy it, buy it im not going to turn my head on that i think its really good i really like it and maybe well, you know what, thats really about it so its all about the end markets here with so much global uncertainty present, be prepared to see continued weakness in enterprise oriented like cisco and Texas Instruments. And yes, because Warren Buffett sold a small amount of apple, youre going to see that consumer stock go down a bit if you sell it because of that, dont trade it all eyes on viacom as the Company Reports earnings what should be your next move now that its joining forces with cvs ive got the ceo. Why trump may be even more antielite than Elizabeth Warren ill explain and cutting edge drug science is making us healthier and companies are pushing medicine forward and their stocks are starting to go up im sitting down with the ceo to see whats ahead so stay with cramer. Dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com. Or give us a call at ss800743cnbc mi something head to madmoney. Cnbc. Com. When it comes to your customers expectations, theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Cool. Stand up if you are first generat crowd cheering ent. Stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. The world in which we live equally distributes talent, but it doesnt equally distribute opportunity, and paths are not always the same. Im so proud of you dad. [man] i will tell you this, Southern New Hampshire university can change the whole trajectory of your life. uplifting music what do we make of the stock of viacom, now that its joining forces again with cbs . This huge Media Company owns paramount, nickelodeon, mtv, and comedy central, among a host of other brands investors have been calling for a merger with cbs for years. But when cbs actually moved to acquire them, wall street didnt like the terms and shares have been slammed down 25 in the last three months today reporting a strong quarter, capping off a year in which their film business returned to profitability, and tv business grew for the first time in six years. Could this be the right way to play the upcoming viacom cbs merger earlier we had a chance to sit down with bob bakish hell be running the combined company. Take a look. All right, bob, last quarter, where its just viacom next we see it will be viacom cbs. What does the combination look like because thats now more important than what viacom will look like. Look, we just reported our last quarter as an independent company, our fourth fiscal quarter. Really pleased with it we returned our domestic ad business to growth we returned our domestic philly business to growth profitability for paramount, all things we promised at the beginning of the year. So were thrilled about that but it is the road ahead thats so exciting. As you point out, were going merging with cbs so viacom cbs, the transaction will close early december, and then well be off to the races okay. Youre an oddity here. Your company is the Second Lowest p e, price to earnings ratio in the s p 500 only macys is less. I look at all the things you have done in the turnaround. What is wall street or main street viewers missing i think there is uncertainty about the transaction again. Now were going to close in early december there are some speculation about how were going to operate are we going to operate as a combined company right. I can tell you, the road ahe, jim, is tremendously exciting. Were deep into integration planning were going have one domestic sales ad force were going to have one distribution arm, one global product Licensing Organization just those three things on the commercial basis bringing all our product together in the u. S. , were 22 of primetime viewing, 22 of total day. That is an extraordinary place to be. And bringing that to the marketplace in a single point of contact positions us to do great things were now in a world where people are more excited about the unbundle of yesterday disney, the idea of how much netflix has to spend and those are the stand alones that the young people like, and that your model is the old model and it wont work. I look at it as you have a different model, not the old model, correct absolutely. And we talked about it on our call today weve been executing as viacom on a strategy where were serving the widest assessable market now on the other hand, are we in the bundle business . Big bundle small bundle the significant majority of homes in the u. S. Still get television that way. Of course were feeding that at the same time, were making original product through our studio business, for the streaming clients. Thats a great business for us we announced a couple of deals recently, including yesterday another deal with netflix. Great piece of business. Were also in the streaming business on an owned and operated business. Both through our pluto tv product at viacom, which is the number one Free Streaming Television product in the country. Well Just Announced today 20 million monthly active user, up from 12 million in january so thats 70 growth calendar year to date. Monetizing. Monetizing so growing faster and monetization is already in the hundreds of millions that thing is a rocket so were playing all segments. And i think thats what makes us different. That gives us a better more predictable path to growth and a better ability to manage so the naysayers who say listen, jim, youre too bullish down here because they have the spend five, six, seven, eight billion to compete with the netflix, to compete with the disney, that is not necessarily an accurate depiction . The naysayers said we couldnt return our domestic ad sales to growth. They were wrong. We proved that today for the second consecutive quarter and for the full year. They said we couldnt return our domestic affiliate business to growth they were wrong. They said we couldnt return paramount to profitability we improved profitability of 500 million in three years. So they say we cant compete stream, absolutely wrong were bringing a different approach to the marketplace, one that combines free and pay were the leader today in free we already have particularly on a viacom cbs basis a nice bouquet of pay products. Well use those on an integrated basis and youll see us prosper in that space as well. A lot of people would say theyre not well funded versus google versus facebook versus amazon one of those guys is going to wake up and say i want to write a check to the nfl, and im going to take away the principle blue chip asset that you have. Why wont that happen . Well, first of all, were an Investment Grade company so we have a strong balance sheet. Were Even StrongerInvestment Grade as a combination but to your question on the nfl, cbs has a Longstanding Partnership with the nfl, and they get some very material value from cbs one, broadcast carriage. The nfl is a mass market brand in the United States it needs mass market reach and broadcast television continues to be that so thats valuable to them second thing the nfl gets and people dont talk about this very high Quality Production cbs doesnt produce one game a week for the nfl, it produces multiple games this is live television, multiple cameras, very complicated production its how the u. S. And in some cases the world see the nfl product. Very important to them not toes do. Now enter viacom two other real sources of value. Ive spoken with the league about this one is Young Audiences whether its our Linear Networks or on demand product like pluto, we bring Young Audiences to media, and thats important because they too are running that brand for a long time they need to bring younger consumers in and lastly, international. Also as part of a growth strategy, people want to develop their businesses outside of the u. S. You see the nfl doing that viacom has one of the definitive operating footprints xus and media. That includes broad assets in the uk and latin america and we serve 170 countries overall. So we bring four very material things to the table, and that comes on the back of a longstanding highly productive partnership. So i feel good going into that some things mystify people. South park unbelievable. Youre leasing it away why lease a gem . The content market is very frothy lets talk about how we think about whether we use ip for our own platforms or third party we really think about three things one is we look at the financials and how does doing a deal impact our ability to deliver our overall Financial Plan second thing is we look at strategy how does using a piece of ip, either on an owned and operated platform drive the growth of that platform, or potentially how does it drive the growth of other businesses like Consumer Products, like recreation, like downstream feature film activities and third thing we think about is partnership how does a decision on a piece of ip impact a Broader Partnership either on the creative side or on the distribution side . Opportunistic we look at the south park deal it was an opportunity to ring the register in this frothy market were very happy with the deal it does ensure that we have broad reach for the franchise, which we think has other benefits, and both at t is a big partner of ours and the creators are big partners of ours we have multifaceted relationships. We put it all together well love the south park deal. One last question i had the privilege to meet sheri redstone, legendary figure thank you very much we have all went out she seemed to be very motivated and cannot be happy with a company that sells at five times earningses, a great growth company. What can an individual do in terms of individual firepower, individual interest as she can to say you know what im drawing a line in the sand look, management, myself, were not happy with the valuation of viacom. Sheri also is focused on growing shareholder value. We believe the combination of these two Great Companies and our execution path Going Forward will really demonstrate the value. You know, there are material synergies here on the cost side and more importantly, on the revenue side its the revenue side that the reason you ultimately do the deal we see ad revenue upside we see distribution upside we see upside in global pricing. In a world where there is increasing demand for content and some of our competitors are pulling content off the market finally wee see upside in the streaming side through the combination of stream and pay. I see that sheri sees that. Were tremendously excited we believe the marketplace will see that this is an Incredible Opportunity today to get involved with a super high quality company. People who know and follow me on action alerts know that i couldnt agree more. I dont understand the valuation. After listening to you, i still dont understand it except for deciding that the people who are selling are wrong. Thats bob bakish, the president and ceo of viacom. I hope you now understand why i said it was the most undervalued stock that i follow. And with 499 out of 500, i cant believe it, because its wrong mad money is back after the break. vo the moth without hope, struggles in the spiders web. With every attempt to free itself, it only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Robinwithout the commission fees. So, you can start investing today wherever you are even hanging with your dog. So, what are you waiting for . Download now and get your first stock on us. Robinhood. You cant understand the trade war unless you get your head around the political situation here in the u. S. Now this is a jam for me i hate talking politics. Id much prefer to focus on individual companies you know that. Unfortunately, the trade war matters to the markets so sigh, stuffs impossible to ignore the key political divide in this country is not between the republicans and democrats. Wrong read there is a whole other debate happening in both parties right now, the populist versus the technocrat on the democratic side, this fight is happening out in the open youve got senator warren representing the populist wing of the party and joe biden standing for the more technocratic wing. Biden thinks the system works fine for the most part maybe it needs a few weeks to. Thats it. Warren sought here picking fights with billionaires because she thinks big business has gotten too powerful and some people too rich. From the chinese perspective, they must be praying for a Biden Victory because he wants to end the trade war. On the republican side the same debate, only its happening inside the white house the president has advisers from both sides which can make things really confusing the other day President Trump gave a speech at the Economic Club of new york, technocrat central, and we saw a flash of unique criticism that highlighted that fault line in his own administration he talked about how china has been taking advantage of us with its predatory trade policies for ages thats just flat true, okay . Empirical true nothing fake because the president know house to read a room and the audience doesnt love the trade war, he started praising the chinese for playing us brilliantly instead, trump said the real villains here are his predecessor, both republicans and democrats who effectively sold out American Workers in exchange for china partially opening its markets to big business i emphasize partially. And thats why these trade talks are so hard to gain. We dont know if the president will side with the free trading technocrats in his own Administration Steve mnuchin and larry kudlow, or if hell side with the populists led by trade adviser peter navarro. We dont know because the president is using the doves as characters and increasingly i think he sides with the hawks. Theyre confusing resolve and hard bargaining their style with the style of the populist. From lets bag the ornithology for a second mnuchin and kudlow represent the old style technocrats. They they believe in free trade. People like Henry Kissinger or Goldman Sachs along the Henry Paulson who happens to be the former treasury secretary and same with john thornton. They stand with free china, happy warriors the populists dont buy that line of thinking for one second. They think the technocrats are only doing whats good for big business, for the wealthy, the elites not thats nestle whats good for america. Lets take it one step further the populists in the trump administration, they dont want more trade they want china to make seven major concession navarro calls them the seven dead deadly sins. No nor stealing of intellect yall property no more subsidized stateown enterprises. No more computer hacking and perhaps in some ways, the most important no more illegal fentanyl exports that are killing, killing our people whats so extraordinary if you throw in punishment for global warming, i believe that the pocket advisers to the white house have more in common with Elizabeth Warrens rhetoric than with the free traders in their own administration i think she might end up being even tougher on china than trump. So who wins in this white house . The free trade contingent or the populist unless china stops trying to negotiate a good price and instead just starts buying, buying things like grains and planes, you name it, and im betting the populists win. The president i think maybe gets fed up, is going to raise tariffs for everything to 30 in a months time the chinese keep making the same mistake. They think this is about the balance of trade oh, maybe it was at one point. When in reality, its about a whole lot more than that now how can they get a deal . I think they need to start buying American Goods like tomorrow to show trump that the free traders have a point and their strategy can still work. He needs to show the free traders that they can have hope. Otherwise the hard liners win. The trade war keeps dragging on and depending on who wins and the election, what plays out, it could go on for years. If i were the chinese, id rather deal with trump now or trump or warren later. Sure, we always hear the chinese are playing the long game. Ive got some bad news for them. Judging from the landscape, oh, theyre playing the long game, the long game. Paul in illinois, paul caller hi, jim i bought into crowdstrike in the mid70s but im still in the red. I know they were mentioned yesterday during the hearing that gave the stock a 10 bump its young its expensive its in the political crosshairs, and i know the lockup is ending up soon should i buy some more look, the problem with crowdstrike is this has become a very crowded area. Cyber arc and palo alto are the two that are still working and i say working meaning that theyre not overwhelmed by sellers everywhere so i cannot crowdstrike is a really good company, but it doesnt matter right now there are too many crowdstrikes out there all right. China needs to start buying American Goods to appease the trump administrations free trade thinkers who in turn will urge trump that an open china is the way. If china doesnt, then i think the populist mace come out on top, and that could mean tariff increases in the near future because the chinese are playing the long wrong game. Much more mad money ahead. Taking a look inside the Biotech Sector what can biomarin tell us right now about the future for these stocks and the government and the average cost for a successful fertility treatment can be about 70,000 one player working to help expand access to ferret filt treatments and all your calls rapidfire in tonights edition of the lightning round. So stay with cramer. Mini is a different kind of car. Ladies and gentlemen for a different kind of drive. Ladies and gentlemen for the drive to create a new kind of family car, that became a new kind of race car. For the drive to rebel, zag. For the drive thats inside you. And inside us. Thats the drive under the hood of every mini. Because every mini is. For the drive. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. 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After spending most of the year in critical condition, the Biotech Sector suddenly started showing signs of life over the past six weeks this whole group was in the doghouse because of investors were terrified ofs s coming out of the Democratic Party which would make it harder to interest industry to make money in recent weeks started feeling that maybe the fears are behind us i dont know but the group has been able to rally. Look at biomarine pharmaceutical its a company that makes orphan drugs for rare conditions that affect fairly small numbers of people but wouldnt be treated otherwise. For months their stock got hammered falling from 100 in february to 63 the stock has come roared back, climbing to 75 as of today some because the biotech feels less toxic earlier today they held their r d event which is much to look forward. To a positive update on a phase 2 treatment for akchondroplisha. Lets check with the chairman and ceo of biomarin. Get a better sense of how his company is doing and where its headed mr. Bannerman, welcome back to mad money. Nice to see you. Im hearing staggering positive gains in height from this drug not really conceivable even just a few years ago. Tell us about that already today in new york we give this update on the four and a half years of treatments of these patients, and we were able the show that they gain over this four and a half years of treatment nine sent meerpts in growth which is pretty substantial for the patients because they are, you know, most patients with this condition, their final adult height is around four feet for males there are five standard additions for patients with average height this is pretty significant although using height or growth velocity as an end point, this is very likely going to substantially improve their quality of life because they have also suffered morbidity associated with their stature and spinal cord pressures also that we hope to be able to improve. You also gave us a picture of a drug called valrox. Yes. And that is something you had spoken to us, i dont know, maybe about a year and a half ago. So we make great progress there and we are very confident that we will be submitting for filing for approval in the u. S. And in europe before the end of this year. So in the next six and the results are good . So we have phase 2 data where we show the drug last may was working for at least three years in terms of episodes and we had, you know, good early filing with premier filing a subset of the patients but based on our interaction with the Regulatory Authority we should be able to get approval for the drug this is hemophilia a. Thats a bigger drug. Yes thats about 125,000 patients in the world. Thats bigger. Thats big. The reason i think this is so important is meanwhile, the seven approved targets producted to deliver 2 billion revenue you have maybe the most stable of just a continual road map of where youre going so these could be big kickers for you. No, youre right. Thats why we i announced this morning at the r d that we are based on recent data, we are more and more confident on the durability of the effect of valrox for heem fill yarks and consequently we are more and more confident about reaching 2 billion in revenues next year. Right. And for the first time, you probably didnt see that, we announce we will be very likely profitable next year. You talk a lot about cost control. I never really cared about that for you. But i know the market as changed, and they want you to do that i wanted the growth. But youve addressed these issues that they want. Exactly and specifically now, with the anticipated approval of valrox, we should see a significant acceleration of the top line beyond 2 billion. Because weve been growing about 15 per year over the past three to four years. We should see inflection points growing in faster beyond 2 billion. And then we should see the profitability of the company improve substantially. I think thats terrific i was looking at the stock since 2013 its up about 8 . This is what is so weird for me. Revenue is 2013549 million. Now youre talking about two billion. The market does not know how to value your company i think the answer is either looking at profitability or theyre worried about a change in how much people are compensated for developing amazing drugs. Its a combination of both. Probably because four years ago, the stock was probably a little ahead of itself. Right and now probably swings one way or the other but i would say the good news is that our products have a very long life cycle. The six product jesse in the market in the u. S. Have no competition. Theyre the only product approval for the indication that they treat so we have, you know, sustainability of our revenues are pretty important here. And despite all the headlines, our pricing in the u. S. Has not been affected by all the headlines about pricing so far i know so compared to many other big pharma companies, our price outside the u. S. Actually pretty similar to the price oh, so no one the politicians always say well, if we went to spain, if we went to france, if we went to italy. So there is no comparison that makes your pricing look long here. Actually we looked at the basket of countries that have been used in price comparison. Sure. And if we look at the price on average that we pay that we charge in this country compared to the u. S. Government price where there is some discount, its about the same. Well, this is i dont understand the math. I do understand i dont understand the science but i do understand a stock that is inexpensive versus where it has been and therefore its a terrific idea thats the chairman and ceo of biomarin the deck is very clear for those you have who say listen, i dont understand this, they have a Global Leader in rare disease therapies that is really helpful for anyone who wants to know more, and you should know more if you want to buy the stock mad money is back after the break. Lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. The light beer youve been waiting for through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. At cdw we get youre always yeah. Im just not sure Office Drones were the way to do it. [ laughing ] drone voice lol. Our market share looks good, but. Drone voice where are the bagels . Well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. Great. Oh. [ drones buzz angrily ] lets find a different room. For transformation that works, you need Hewlett Packard enterprise and it orchestration by cdw. People who get it. It is time its time for the lightning round buy, buy, buy sell, sell, sell buy, buy, buy, buy, buy, buy [ buzzer ] and then the lightning round is over are you ready, skeedaddy . The lightning round robert in illinois, robert caller hey, thanks for taking my call, jim. Quite welcome caller two things. First thing, thank you for recommending bowing to me about eight years ago. I bought the stock still have it today. Ive done quite well. Hold on, hold on to it. Things will get better there what else . Well, i need some help on lci. I really, really like this company. Really . Im not wrong. I dont like this specialty pharma sector. We have so many good pharmaceutical companies im liking novartis. I know it has a black eye from the one drug, but i think novartis is a better bet lets go to charlie in florida charlie . Charlie . Caller booyah from the Sunshine State hey, jim. Caller booyah the kids got horse sense. Whats up . Caller he is 8 years old he love yourself show. Thats fabulous thank you. Caller first, i want to thank you for your help. Quite welcome. Caller my stock had a great run lately but Going Forward, need your notes on cvs i just gave a talk to the actionalerts. Com club yesterday. Look, cvs is still headed higher i think it does more than 7 give it a 12 multiple and you see where that thing is going. So i want you to buy it. Lets go to gerard in new jersey gerard caller booyah, jim. Booyah. Caller i knee a buy, sell or hold i have 300 shares at 108, proctor. Which what it proctor . Procter gamble is a Great American company with unbelievable management by david taylor i say buy, buy, buy whoa. Were going to kt in massachusetts. Kt thank you, jimmy, for your hard work. Youre welcome. Caller i grew up about a mile from your old stomping grounds, suffolk downs. Oh, my. Suffolk downs. Thats where i learned to handicap and loved it. Make a living down there . We have cousins it was fun the whole thing was good take the blue line whats up . Caller im interested im a little concerned about idexx labs they have a new ceo. Right they missed earnings. Right caller the stock has gone from 295 to 57. I like the longterm story there, but youre right. They have a new ceo and i do not know him and i wish mr. Aris the best of look, john aris, but i dont know the new ceo so im kind of reserving judgment for now and i totally understand you feel i feel the same way. And that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] the lightning round is sponsored by Td Ameritrade take control of your financial future with the new madmoney. Cnbc. Com. Cramers exclusive ceo interview, full episodes, analysis, even your own soundboard hallelujah with rules and techniques to break down the market for all investors. The red flag that makes me drop a stock needily is its everything you need right when you need it the new madmoney. Cnbc. Com. Turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Nongmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. More exciting than than getting a lexus. Giving one. This is unbelievable it really is. The lexus december to rembember sales event lease the 2020 rx 350 all wheel drive for 419 a month for 27 months. Experience amazing at your lexus dealer. Owning and running the biggesta Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow the amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Hes the queen of qvc, take t it the bank, but marks the fiercest shark in the tank thats right. Two weeks ago, bob in new jersey asked me a question about a Company Called prgeny. Thats pgny. You do want to write this down for the symbol it came public about the end of october in a surprisingly well received deal. I thought i needed to do more homework because i had missed this one entirely. They launched a at point when we had pretty much given up on the ipo here i mean, there have been too many busted deals i didnt think there was much appetite for another, another fastgrowing startup with little in the way of earnings but you know what . This is the one that proved us wrong. Thats why tonight were playing know your ipo with progeny first of all, this company is an outsource benefit manager that is specifically focused on fertility and family building. If your employer will pay for fertility treatments, odds are they use Something Like progyny to get bang for the buck given a single cycle of ivf can cost 12 grand, businesses that offer to cover the cost of fertility treatments, they have a huge incentive to make sure that money has been well spent and being efficiently spent. Progyny got into the Business Space in 2016. These years they have more than 80 clients they provide coverage for more than 1. 4 million employees and theyre signing up customers left and right get this this is something i think is really interesting that i should have realized. Theyre on a cnbc disrupter 50 list theyre number 30. And that is an ultra innovative list of startups that has produced some really good stocks they have spectacular growth its well over 100 , and thats in part because fertility is a huge business. In the United States, one in eight couples are impacted by infertility. And as im sure many of you know, if you need help having a kid, it is ridiculously expensive. Unfortunately, most insurance simply doesnt cover fertility treatments pregnancy is a health risk they dont want to subsidize it. Stuff like this typically gets covered once Congress Makes a law, but there is no federal mandate for infertility coverage about a third of the statesman date some kind of coverage, and many of those mandates are pretty toothless so if youre on the market for fertility treatments, you really need to pay out of pocket, which is pretty darn prohibitive, the equivalent of buying a car, or get a job where the treatments are included in your benefits package, and there that is where progyny comes in they manage these benefits packages to make sure youre getting the best most efficient care when you look at the data, their patients tend to get Better Outcomes than people of traditional Insurance Coverage in other words, progyny works better than the competition so anne Companies Want to use them. More and more companies are offering to pay for fertility treatments for our employees because we have such a tight labor market its kind of the same i dont mean to sound crass about this, but kind of the same reason businesses are buying a lot of fancy Office Chairs from Herman Miller anything to entice the best workers in an environment where people have a lot of options and if youre going to offer your workers fertility treatments, you might as bell get them through the most effective manager. That means more business for progyny. Im not surprised they had a red hot debut. They came public at 1350 it started climbing just under 16 by the close on the first day of trading didnt spike up big. When bob called in with his question at the end of october, the stock was at 16. 21. I wish i recommended it then because over the last couple of weeks they rallied to 20 bucks and change its up more than 25 since we got the call bob, you got horse sense so now we have to ask ourselves is progyny still worth buying up here the company has had eyepopping Revenue Growth, up 120 in 2017. 118 in 2018 and 113 in the first half of this year. Normally when a company is growing this fast the numbers tend to decelerate but they keep doubling sales and doubling again meanwhile, the profitability has improved tremendously. The companies are losing fortunes and they think well, well just grow and People Like Us no in 2016, their operating margin, the percentage of their sales that they keep for earn, and interest and taxes stood at negative 66 the first hits this year was positive 5. 3 . That means progyny is now turning a profit which helps explain why its performing so well in a market that has become very inhospitable to unprofitable ipos as part of its perspectives, the company also provided guidance for the first nine months of the year in other words that. Gave you a forecast for the Third Quarter as lon as you did the arithmetic of backing out the first hit numbers yourself they expect Revenue Growth from 117 to 119 . Thats a market acceleration versus the previous quarter. Thats remarkable. What else . The company is run by a guy named david schlanger, who served as the ceo of the old women md under the tenure, the stock roared from the 20s to the mid60s making shareholders a fortune. So i would say this company has good run lies. There are always caveats they have a couple of large Venture Capital shareholders, pge and kleiner perkins. And together 48. 5 of the business that could be a major overhang if they decide to take profits when the selling expires down the road keep this in mind. Maybe they wont maybe they will. But if you were going to buy a lot, i think you wait you buy some and you hope it comes in. Second, we already some some Insider Selling as part of the ipo. Both the ceo and the cfo along with some other directors sold stock as part of the deal. I usually dont like to see that, but insiders sell for a variety of reasons put it all together and i think the positives do outweigh the negatives for progyny. You dont need to worry about some sort of flybynight organization as long as youre making money plus in the last week, weve gotten a nice pullback here. Now is really important. This is a 22 stock on mondays close. And since then its down 7 on nothing. No real news. So i said wait for a dip, and there we go. We got the dip thats the dip we wanted so you do have my blessing to start buying progyny here, albeit only for speculation. This is not merck or pfizer. Bottom line, todays slide i feel comfortable recommending progyny right here right now this kind of business is inherently speculative but as long as you take this into account, i think its worth buying hey bob in new jersey, you picked a good one. Call back. Give us your next one, and i promise i will come back with an answer sooner than this one. Stick with cramer. I was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu were seeing a lot of different reports about what hedge funds have been doing. Its that time of again. And i got to tell you, pay in attention. They may have already changed their positions. They are not here to help you, and you will not be able to count on them. If you take action on any one of these people selling stocks or buying stocks, i have to tell you, i think youre just naive its not the way it should work. You do the work. You get comfortable with your own stocks and if you cant do that, index funds beckon thats what theyre the there for if you dont have the time or the inclination i like to say there is always a bull market somewhere. I promise to try to find it just for you right here on mad money. Im jim cramer, and ill see you tomorrow welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. First into the tank is a radio deejay from san diego, california, whos pitching the sharks his syndicated radio show. Hi, sharks. My name is r dub. Im the creator and host of sunday night slow jams