Transcripts For CNBC Mad Money 20240713

After we got the outline of phase one trade deal china President Trump has agreed to lower some of our tariffs in exchange for, it looks like, 50 billion a year in agricultural purchases. And some much firmer protections against intellectual property theft and currency manipulation. And those last two pieces, please, youve got to understand thats what the United States is fighting for thats the real meat of the deal we need Chinese Companies steal our patents and trade secrets and we need china to swear off currency manipulation. I dont know i assume the case. I think let me tell you i want to make this really clear. Ag is not what this is about but we got to spend some time on it because its what people are going to talk about. China has a history of not following through with its trade commitments. And this time, weve got powerful enforcement mechanism theres still going to be a 25 tariff on 250 billion worth of chinese imports with a 7. 5 levy on another 120 billion that had been cut even as this weekends planned tariff hikes have been axed. See, if the Chinese Communist party breaks the deal, you should expect to see those tariffs go right back up so still for now, the deal seems to be happen when we come in on monday, all right, we are going to find out exactly who are the lucky winners from this chinese. We know chinas in desperate need of pork right now their pig populations been reduced by 55 based on metric tons, not pigs themselves. By the incredibly infectious airborne african swine fever the devastation continues in their Backyard Farms where most of the pigs are raised and they dont have the standards that we have that can stop the illness. So the price of pork has shot through the roof in china. And theyve been living off their frozen pig repositories, which cannot last forever. Its an emergency in china and thats causing a lot of this deal thats why expect some very big hog purchases right upfront. More important, you begin to see american hog farmers building out new supply something theyve been reluctant too to do in the middle of a trade war. By the way, there are many different states i know voters are concerned about this many different states that have hog farmers. Theyre the huge beneficiaries of what i expect to be a gigantic deal. Unless china wants massive hog inflation, which we should hear about these deals very early remember, we think its only about freedom of speech. But it started out as about food inflation. So the chinese are worried if pork prices are headed higher, u. S. Investor might be thinking about buying tyson foods. Thats the leading protein play that also sells chicken and beef and they will become more competitive because believe me if this deal is announced, the price of pork in our countrys going to go up dramatically. We still dont have enough details on industrials and financials but im sticking by my beef that the credit card companies, the large banks, the World Service king pin, and some of the larger machinery plays will see a shortterm boost i want went over all those in yesterdays show the list is still around now, how much good will truly exists between the two countries . As bigtime Chinese Communist once said about the french revolution, too soon to tell he was hilarious but the level of genuine good will might not even matter when reports on tuesday at the close because anythings better than the purgatory these guys have been stuck in. Yeah theyve had a huge buildout in china and they havent had enough commerce to show for it their future looks brighter with a preliminary trade deal but certainly, thats it i know fedex has been a serial disappointer im not saying the quarter will be any good at all but im betting it could rally if management says something even mildly positive about trade. We also hear from cintas believe it or not, people been saying nasty thing about them. I love this uniformrental company. They got a terrific read on the impulse of small and mediumsize business they handle restroom supplies, entrance mats. All sorts of really boring things that Small Enterprises need to replace regularly. Not that long ago, an alpha called spruce Point Capital published a piece making all sorts of allegations about this company. And its conduct. I i dont buy it. Im expecting terrific quarter from cintas. But the emboldened short sellers could make this a real Battle Royale and remember i told you i said no. People people who think that i you know, now i want to go buy a tesla like this minute i appreciate that. People who hate me because i said that i like tesla, i appreciate you too speaking of small and medium although i want you to lose in your Fantasy Football League and then really get your head clocked on sunday. With on wednesday, the payroll process serve choice for these smaller operators. Theyve got tremendous insight into the state of the economy. While people didnt care much for that last quarter, i told you it was a buying opportunity. Right again. That sounded bad i was right on this. If paychex pulls back once again, please before the quarter, i would buy the stock has been so consistently great and the analysts really do just like it. One more i really like here. Herman miller. They make those fantastic air on chairs i got one for my wedding someone gave it to me for a wedding present. With all sorts of other highend office furniture, there is a wedding present for you. An air on chair. Well, thanks, for two. The kind of stuff Companies Buy on a tight labor market to attract talented employees their buy Herman Miller chairs thats what caused the upside last time. Itll cause it again we also get results from one of the most controversial tech plays, which is micron the commodity Semiconductor Maker which doesnt think it makes commodity semiconductors because those things are so hard to make these days listen to me the guidance is going to be different from what they say in the headline the headlines going to say blah blah blah. The guidance is whats going to move the stock everything from chinese espionage to both of their key products flash memory i think the companys finally coming out give it a run. This is not the ideal time to do some buying. But lets say the stock get hit monday off of the fact that hogs werent bought or tuesday. You know what i mean if it gets hit because a program selling thats related to the trade, then you probably want to buy some micron. Lately, weve been seeing some signs of life in the Package Goods segment. So we got a couple of reporting. General mills. You know, what took a hit the other day but it put the stock down to 3 yield. I expect good things cereal and i think pet food, blue buffalo, the really expensive stuff. Terrific snacks and beverages. Cocacolas no slouch either by the way. 3 yield will this be the quarter where they finally get their act together stocks been volatile. 3 yield tempted to buy some before the quarter and maybe after. Smart, guys. And how about the Restaurant Business we hear from darden, the Parent Company of olive garden and a bunch of smaller chains. While the last quarter was good, it wasnt good enough. I found the Conference Call a little too existential, as in why do we even need this Company Given Olive Gardens no longer growing like it used to. Then i remembered Olive Gardens a terrific chain that offers great value. Which is why im betting youre going to get a good number dont forget, dardens remarkably share holder friendly id like to invite them on the show please because i know they like it and they watch it. And we share the that we share the neverending salad bowl persuasion sometimes this business really as easy as it seems and thats how i feel about the stock in nike hence why it hit an alltime high today after the trade resolution with china. Because nike sells a ton of shoes over there remember, footwear was going to be part of the tariffs that were supposed to then this weekend. Lets hope the stock comes in before the quarter finally, the o and o and rv markets are holding up were going to find out when we hear from carmax, the used car retailer and winnebago. Wow. That things been amazing. Carmax stocks up 50 for the year winnebagos nearly doubled with employment strong, i think they both have room to run they had been down and outers for a while. Interesting list bottom line. Now that theyve got a phase one trade deal with china, we can go back to focusing on the earnings and you know what . I think next week, with the exception of fedex, were going to see a lot of good ones. Victor in florida. Victor caller how you doing, jim in longtime listener firsttime caller. Miamida miamidade county. I got an scx fcx for you, jim. Having this kind of bizarre interchange with my buddy and i said this is the stock that every Hedge Fund Wants to own. Thats pd and now its pager duty so heres what i have to say i say if you buy that stock, youre in a trading whamajama mode when i was in my pajamas, i used to do whamajama. But not now. Free port is for pikers. Lets go to dustin in arizona. Dusty. Caller good afternoon, mr. Cramer how you doing . Having a great day. How about you . Caller i am, as well thank you. My question. Diabetes for a few months and looking at another stock it seems like tandem diabetes started off extremely well and dropped off. Last year, done pretty well but its tailed off lately i wanted to know your thoughts are. Look. I like the stock somethings going on in that stock. It is up 3 or down 3 every day and it is nauseating, people i will only tell you that i i like management and i like the product. But if you want to sleep at night, you have to go with abbott labs. And if you want the juice, you go to dexcom how about adam in pennsylvania adam caller hey, jim. How you doing . Long time fan here. Thank you very much thank you very much. Whats up . Caller so with ge beating q3 estimates in both revenues and eps along with analysts just recently saying that 2020s going to be a huge year for them finally, the tide turning in the stock . I want to keep expectations down i will tell you i think larrys doing a great job. You do need to see some sort of boeing resolution before you get real good numbers. But anybody who buys ge here, look, ever since larry came in, yeah i call him larry what i do . Its about friends and money whatever you want. But larrys good and larrys turning it around. And the naysayers, theyre going to have to pound sand and wear bags over their heads when they go by headquarters wherever it is these days. We can finally go back after all this craziness and the pork we start focusing on earning although, remember, the deal involves hogs. Okay and the need they have, the desperate need, to fight food inflation in china that no other show is talking about. Mad money tonight with more ways fight back against Amazon Online went under the radar. Players helping companies do just that. Then what costcos Conference Call can tell us about the trade war and company lowered its guidance is it a red flag or is it a buy opportunity im talking with the ceo so stay with cramer. Dont miss a second of mad money. Follow at jimcramer on twitter have a question . Tweet cramer madtweet send jim an email to madmoney cnbc. Com do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. From packaging tape. To tape that can bond materials to buildings. And planes. One idea can unlock a breadth of solutions. At 3m, we are solving problems that improve lives. If youre selling off hard over the summer, many of the Cloud Based Software stocks, theyve started to come roaring back take ana plan that helps businesses with forecasting and Financial Planning something very useful in an increasingly uncertain world thanks to its recent move, plain stock is now up more than 90 for the year still down nine bucks from highs over the summer. Could have more room to run. So lets take a closer look with frank, hes the chairman and ceo of anaplan welcome back to mad money. Good to see you. Have a seat. Frank, i saw you right on the eve of the ipo and i remember they were pricing it around 17 bucks and i know your background and i knew the Business Plan and i said to myself, how do they arrive at a price of 17 with this man who is going to drive this companys growth . How did that happen . Because in many ways, thats the kind of bargain that people really need to find. Well, that was over a year ago. Okay. And, you know, we had i thought it was a great price. Yeah. For our Share Holders at the time, the vcs that were investing and others that were investing in the company and then also from a market perspective. You know, the best thing i felt kind of going through the whole process was you want to make sure you get the right balance the price. So you have an ability to kind of then go into a public market. Show the results and see some of the improvement. I think over the past year, as you said, weve had four quarters since the ipo that weve been able to deliver consistent and growing top line and also improving on our bottom line, which is a good message. And this is really important, people the buildings accelerator. They were already at 46 you hit 59 . Frank, how does someone go from 46 to 59 in acceleration yeah. I think its its kind of the space that were in right now. I mean, if you kind of think about the the backdrop, and also, you know, sas companies in total. The whole digitization is really starting to accelerate now, even and this is a global phenomenon. I was in japan overthe summer, too. And it was interesting to kind of see where the Japanese Companies are really kind of advancing their focus on digitization so i think that as a backdrop is forcing companies to take a different look at what theyre doing on the planning space. Right. And so, you know, with weve got a great platform that we can offer great value in a reasonable amount of time. For companies to implement anaplan and also accelerate. Were increasing the number of customers. The customers we currently have are continuing to add to the use of anaplan within their companies so that is a great to see. Okay. So of the three i thought were most significant, you had giant pharmaceutical company, Drug Development company i should call it. A huge airline and i know you knew red hat delta. Yes yes. And then you also have, i thought was really interesting, was a customer in the consumer package good space now, im thinking all these different did things change enough at these Different Companies someone has to update the plan every day so, you know, i think some people feel like planning is something you do on an annual basis, which you do. Well, ive been in a lot of lousy companies. We do. And then we kind of complain. Yeah. We say, hey, what are we doing but i think the the new world and its going to continue to change is realtime planning right . Its making youre making decisions on a daily basis and so you need information to be able to help support those decisions. And thats what we do. And we we try to move companies from that old, historical way of looking at planning to the new way. You know, you just mentioned cbg company. Packaging company. Theyre big customers of ours. Cpg, retail. Why . I mean, theyre all dealing with the ability to kind of have online sales in 24 hours. Right. I mean, my own personal example on thanksgiving morning, i put in an order with one of the large retailers here in the u. S. And i was amazed. The next morning, friday morning, it was at the doorstep. Right . And thats not amazon. We know amazon can do that now, the others. So everyones really trying to compete with that. And having insight as to whats going to be ordered, how theyre going to deliver it, whats in the whole supply chain, is critical and thats why were seeing cosmetic companies, beverage companies, spirit companies. Theyre all using anaplan across their supply chain which is great. Budget to trend so to speak if theyve had a couple bad four days, would their lines in anaplan show that theyve got to be worried for about a potential short fall they can and they could also do what ifs, right we have modeling capability. So what if a different mix of product happens like next week right in the middle of a Holiday Season if they had to look at some different trends after the first two weeks and had to then change that. How do they then modify their supply chain based on that new information to ensure that at the at the whether its online or at the retail outlets, they have what they need to meet the necessary demands. You know, i was thinking while i was reading. Unfortunately, i wish i was being facetious. Ive been worked with many companies. And i was thinking that a way, a criteria now i should be asking people is do you do this kind of dynamic planning because if they dont, then they come to the board meeting. The boards of directors are shocked. And its already too late. Right and its exactly thats exactly the problem so, you know, as you know, i spent my whole career in the planning space. Sure. Ive lived through different phases of this evolution you know, im a strong proponent now. I think over the next five years, ten years, there is going to be a dramatic shift and were starting to see that and really whats happening in planning and were talking about, you know, companies that are, you know, 50 years old and older that are making that pivot and i think digitization, as i said before, is one of the key drivers. Now, you work closely with salesforce so how would you integrate what they see their sales people doing with what the top guys do about their plan oh, its perfect. Right most of our customers, you know, high percent, im saying way over, you know, 90 , are using salesforce and theyre also using anaplan our tab in salesforce because you do all your crm and then you pull anaplan to do some of your other modeling and its very integrated which is perfect. I wish everyone who watches had a chance to be in business because you would know that this is a blessing to have an anaplan. And i would be able to say at a boardmeeting, guys, would you just get this thing . Because you really dont have a clue about what youre doing. I just wish i had it five years ago, ten years ago but its remarkable. Anyway, this is an indispensable product that didnt exist, an indispensable man whos been in a lot of great places the chairman and ceo of anaplan. Again, always transparent. Lots of great stuff. You can learn about it from the Earnings Call from november 21st very insightful. Mad money is back after the break. vo the flock blindly falls into formation. Flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. 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. Demand has never been higher for what we do. Creating compelling, engaging, and informative content and experiences. With this merger, viacomcbs will be one of the largest and most influential content creators in the world. I know we can deliver on the full potential of this amazing new company. Most bearish predictions about the trade war turned out to be wrong . The tariffs were supposed to devastate your bank account. Instead, theyve been mostly isolated and unimpactful the reason rather than just give you a series of lists. Im going to tell you to go listen to the costco Conference Call from last night this companys in the top of its class when it comes to everything from the lowest prices to worker retention to highquality produce private label products that are regarded as superior to most national brands. And it just keeps delivering after delivery if you have somehow been living under a rock and you dont know costco, theyre one of the largest retailers by sales theyve got 100 million dues paying members my wife is an executive. And those dues keep their prices so well. But costco carries a far smaller number of items. That means costco can pick and choose if they think somethings too expensive, they scale it down. Or they switch to a cheaper al te terntive but not sacrificing in quality. They move a ton of volume across a relatively small number of products thanks to that scale, almost a nonissue for this company according to cfo who runs an i mazing Conference Call he says, quote, at the end of the day, we think weve done as good as anybody in terms of being able to mitigate the impact, end quote. I think the fact that our quarter over quarter margins, generally speaking, in departments like hard and soft lives have been slightly up year over year. And certainly havent done that without first and foremost being the most competitive out there end quote. In other words, theyve been able to keep their margins and have prices low. Thats not supposed to happen with tariffs i also got the sense every time the Trump Administration raised tariffs on chinese imports, costco would simply find a private label alternative from somewhere else around the globe. Their kirkland brand, which i champion, is cheaper and better than what the chinese make but you know what . Even if costco didnt have all this scale allowing them to mitigate the damage, it might not even matter because the American Consumer is so flush, that were seeing tons of major discretionary purchases at retail especially, electronics including fullprice apples accessories. Highend gaming computers. Bigscreen tvs all the stuff that was going to have big tariffs on it it this weekend aint gonna happen costco had a major website glitch that caused them to lose some sales hence, in part why the stock pauled back today. Its easy to knock their online offerings because theyre not as great as walmart or target but theyre going to figure it out. What makes what matters to me is that costcos Business Model works perfectly in a trade war oh and you know where its working best in the globe . Shanghai costco recently opened a store over there and it was mobbed they had to close it was so busy how big is the shanghai opportunity . Points out the average costco location serves 60 to 70,000 member households. Some of their asian locations serve 100,000 or even 120,000. But at their shanghai store, its already got more than twice those numbers. Thats extraordinary at the end of the day, this companys biggest china problem is that there are 25 Million People in shanghai and they only got one costco sounds to me like a terrific investment thesis for owning costco stock for years and years to come. Meme in new york meme caller yes hey. Booya, jim. I own shares of alibaba, which i purchased back in may. So is it all about the tariffs rol roller coaster. I notice every day they go to do the tariffs. The stock goes up. The tariffs dont go through the stock goes down. Whats the deal . I tell you, business is so strong there they had a huge singles day. With number 11 they are doing incredibly well its the only chinese stock that you can own. Its got great financials to it. Its really wellrun company so i like alibaba. Norman in minnesota. Norman caller yes, jim. Yes caller about ten years ago, sher win williams took a big hit. You came on the air and said dont worry. The only reason it went down is because the market went down you said buy Sherwin Williams so i bought it at 47 a share today, its 575 a share have you got any other advice for me today well, first, im listen, now, of course the catalyst ten years ago was a lawsuit in cincinnati that they had lost about lead paint and people felt the lead paint issue was going to bankrupt. I spent a lot of time going over the legal documents and did not see therefore, it took off and deserved it. Deserving place. Then they consolidated the industry theyve been able to raise price. But most important, theyre just great guys and congratulations and stay long sherwinwilliams. Simple shw costcos model works perfectly in a trade war the irony of ironies, costco works best in china. Much more on mad money including senteen. As Elizabeth Warren backs off from her most radical plans on the healthcare front, wonder how the companys positioning itself then nearly one in four u. S. Households includes someone who suffers from migraines tonight, im eyeing under the radar but in my head biotech player that hopes to help. And by the way, its actually migraine we dropped the s im the American Migraine foundation spokesperson. Trust me tonights edition of the lightning round so stay with cramer have you ever worked with dr. Francis . Oh yeah, hes ok. Just ok . Guess who just got reinstated well, not officially. Nervous . Yeah. Yeah me too. Dont worry about it, well figure it out. Ill see ya in there just ok is not ok. At t has americas best network, now with our best plans, at our best prices, starting at 35 a line for 4 lines. New from at t. phone ringing a phones offers big button,ecialized phones. And volumeenhanced phones. , get details on this state program. Call or visit and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit ever since the democrats running for president started backing away from medicare for all, the Health Insurance stocks theyve just been incredible just look at cramer fave centene. Heres the stock that serves from 41 at its lowest in early october to 61 and change this month for pulling back to 57 right now. Including a 1. 4 decline today why did centene get hit . The company rolled out its 2020 guidance at todays investor meeting, the earning forecast was a tiny bit light but i dont know i think it was just misunderstood. I think it can get its newfound momentum back. Lets check in the chairman of centene. Good to see you how are you . Wonderful. Now, i try to tell people in the business for a long time that when you read headlines and it says so and so forecast whatever theres no way that they could have gone through all the stuff, which i then have to go do and realize, well wait a second, youve got this change with gives something to cvs there is a change in North Carolina you give your totally transparent man. But theres no way you can do the that this was a shortfall. It just doesnt its not apples to apples it was not a shortfall. The state of North Carolina postponed it to be conservative, we said october. And thats Development Cost that type of thing 500 million in revenue thats beyond our control. Right. All the other numbers are there. We on the marketplace the aca, they thought they would be we said we would have 150, 250 ads. Our big markets are growing. Uhhuh. I mean, pim study that in declining markets, the leaders gained share thats just what were doing doing very well. Lets talk about you being a leader youve made a series of acquisitions and you went from being a company i think people said thats a peripheral company. You are now providing coverage to one in 15 americans but when i do my polls and i speak to a lot of people, i say well, guys, you know, how about unitedhealth how about centene . Canteen . Centene . When does your name catch up to your size and your growth . You know, thats weve talked about that. Were going to have to start to do some more marketing to get caught up. But the same time, the population were dealing with knows us thats thats the concept we have good continuity. They stick with us the marketplace people that recommend it we just had an rfp in texas. We came in number one in every region, all 12 regions were the highest in quality were the highest in member provider satisfaction. So at the end of the day, you know, were glowing significantly. Can you continue to grow you pay november 21 bond yield, youre paying 4. 75. The notes are incredibly low but are you going to start running into antitrust . Because you have bought a lot of companies. And now we are starting to see antitrust getting active like we havent seen in a very long time. In our business, and im dealing with the Justice Department right now on a deal if you think about it, the states decide how many players they want. You know, i could sell i could sell and they could do an rfp tomorrow and the whole field changes. They set the rates they set the quality standards so its not a typical to sit down and think about antitrust issue. Because tomorrow if the state says, you know, we think its anticompetitive, they could add two more players. Right right. So antitrust is not the same in our business. Okay. Fair enough. Because i know that. But cvs i thought got a gift from you guys. But thats what you have to do to close a deal. I understood that because what happens in chicago, we have 800,000 lives. They wanted one more one more competitor in the south. And thats fine. All right so lets talk about the field. It looks like that somebody realized what you said would happen that you said, on air, that Elizabeth Warrens plan was, bless her soul, way too expensive. People americans actually see that that, apparently, is exactly what happened. I think so. And even Elizabeth Warren backed off and said im going to do it in my third and fourth year. Which we know supposed to get it done at the beginning if its hard. I think Something Else is very important the only way you contain cost in a single payer is withhold service. And i have to prove this and confirm it i think, for example, the country of canada has fewer mri machines than the whole city of philadelphia i pick philadelphia because i know theres an allegiance okay but people have to understand that means youre not getting that mri you break an ankle, youre not getting an mri that afternoon. If its your presumption youre fighting for that mri. Thats right. And, you know, its really important in europe. There are people asking us to open Surgical Centers in the former Eastern European block. So people, if they need a knee replacement, they need something. There are some countries outside of the their own country are doing more openheart procedures than they are in the country. You cant get em done. Its unbelievable. So i think americans will start to realize that. And they wont be very happy with the single payer. No, i totally agree just one more thing. Theres a great mark expansion slide in your Financial Guidance you are there is a lot of states that are not centene states yet should i suspect that grids that maps going to get filled in there is a few. Like oregon perhaps ever . No. Were up in oregon but, you know, people dont like when i say it. Some of those states in the upper midwest that theres probably more animals than people need healthcare. Okay. So what we have to do is find a way to consolidate and have one plan that covers three, four, five states. Theyre good states but theyre kind of sparse. You got to find a plan that lets people know youre up there with humana and with cigna and aetna and unitedhealth because your growths better and your stock is much cheaper. I couldnt agree more. Thats what we do for a living thats the chairman ceo of sen see teen guys, i dont want to overload you. But it doesnt take long and the speech michael gave is very Crystal Clear mad money is back after the break. Apps are used everywhere. Except work. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. Music it is time and then the lightning round is over are you ready . John in california john caller hello, jim. You know we love you out here. How are you, jim havent talked to you in a while. Its been way too long, john. Hope sacramentos hanging in whats going on . Caller all right i heard something about berkshire. I dont understand it. Berkshire b, the stock is breaking out, my friend. Why am i not pushing that stock better lets go to vincent in pennsylvania vincent. Caller jimbo, whats up . What do you think . Which one caller gci. No, i mean, its newspapers sorry. Forget it, jake. Its newspapers. Parash in new jersey parash caller hey, jim, how are you . Im a longtime listener try to watch your show most of the days also, club member. Thank you so much for being in the club. Thank you. Caller i i will call you as a mr. Cramer doctor you can dissect any stock really nicely. I wish i could. Thank you. Thats very kind caller my stock is industrial stock. You know what textron is a serial disappointer in my eyes i dont want you in this stock id rather see you in United Technologies or honeywell. Textron has let me down too many times. Its cheap but so what kevin in south carolina. Kevin. Caller hey, jim. Flexion thera flexion therapeutics. I got to do work. Some of these biotech stocks, i got to do the work cat in california. Cat. Caller booya jim. I watch you every morning and again in the afternoon. Wow thank you. Thank you. Caller of course im looking for my retirement account. [ inaudible ]. Is it still safe to buy . That they had a quarter that was very that was a shortfall versus what they said they were going to do. They then meeting and then they lowered the guidance. And, frankly, its in the penalty box. People know that i like deb and i think shes done a good job. But that was not good forecasting about the company by the company. And and so i cant in good conscious, recommend it when they seem to have lost their ability to to really present their own fortunes so there i am. Lets go to hey, what am i going to do . Its not about friends davd david in new york. Caller i was wondering about the stock duke energy. It was going up, up. Dukes good i mean, dukes got 4. 2 duke and southern, theyre okay. You know, i like aep i like sempra by the way ladies and gentlemen, conclusion of the lightning round the lightning round is sponsored by Td Ameritrade its not mad pop. Its not mad china its mad money. Buffalo bill booya. I go for it. Whats up . We got a hot roll. You know what you want to own . Yeah, my dog and the guys really despise me you know why you cant stay away from me. The trading apple. Supposed to make a noise your smiles fine, too thats why im going to put it in the week it was tesla. I told her that i drove one years ago and loved it i would have to use tape for the but no, you like it or no for decades, alzheimers disease has been the way of the biopharma industry so whenever a Company Seems to be making real progress, you Better Believe wall street takes notice exactly what happened last week when bio haven pharmaceuticals, a Development Stage Bio Tech Company focused on neurological conditions their alzheimers drug had passed a futility analysis many studied the results and it was worth continuing to invest in the darn thing. This drug only treats the symptoms of the disease, well that would be a huge step from what we have now which is like nothing. And bio haven stock has warred the past few months because of this and also because of a novel antimigraine formulation. We got to talk about that too. And these could be the real deals. And, therefore, the stock could have a lot of upside so lets dig deeper with the doctor, ceo of bio Haven Holding company to learn more about these drugs and what they mean for the future doctor, welcome to mad money of the how are you good. Okay. So ive met with many bio and regular pharma people. And theyve all said the same, which is alzheimers is just too hard biogen just got bounced around why can biohaven even have a chance when outfits like j j havent had any success . First of all, thank you for having me. Alzheimers is a tough disease and we have to do better and we cant stop trying. So last week, you saw we had the results. Very encouraging we had an independent panel of experts review the First Six Months of treatment of 100 patients who finished therapy. And what they told us is the study should continue. And it was only two ways we could pass that futility analysis that was if a patient showed improvement on cognition or improvement on biomarkers of alzheimers disease. Show you the plaque was receding in a persons head . It was focused on atrophy, shrinking of the brain and what we were told by this independent panel is a study should continue because we passed those endpoints. Now, are these people early onset . Are they older these are patients with mild to moderate alzheimers disease. So we already know they have the illness. So in other words, this is still its been identified that they have it. Its not something we would take and hope that we wouldnt get. Correct thats right so clinicians are really good at identifying people who already are at that stage. Its not like the early forms where its hard to diagnose the memory problem. So, doc, futility this stage how many others have gotten to this stage and whats going wrong the other times that we dont ever see anything in the in the pharmacy well, were focused on a new approach were focusing on glutamate, which is a neurotransmitter in the brain tied to alzheimers. Its a different approach. Some other companies are focused on lowering am lloyd or lowering tab. We believe if you correct the glutamate problems. Tell us what a glutamate problem is. Glutamate is the most excitatory transmitter in the brain. When you have too much, your neurons start to die our drug just normalizes those glutamate levels and brings them down to a lower level. You not another one thats important. This afternoon, i have a completely raging migraine been fighting through them for many years just part of my life so i take, at the suggestion of a mutual friend of ours, dr. Newman, i can only take one or two of them. Theyre really bad for you quite bad for you. But they allow to be able to have total concentration and be able to put the migraine aside for a little bit is your drug a possible replacement for this ancient drug that, frankly, is a very inefficient thats being something i only need a rifle shot at. Youre exactly right, jim we are focused on hitting the underlying target that causes migraine headaches in patients its been 30 years since anything new in this space. 30 Million People. Agree and most of them arent satisfied with their current treatments they either have bad side effects or dont respond to their treatments so weve focused on which hits a molecule in your body that causes the migraine that blocks that and the data we publish in the new england journal of medicine showed we had fast relief in patients that lasted several days. But not everybody i understand that its its not 100 of the people are getting a fast relief. No. I think it was, you know, those who respond playing role in their migraine so not everyone would, perhaps, have cgrp driving that migraine. Cgrp, amgen has one those are monthly allergen which is merging with advi has a once a day pill. But this would be different from those. Would the fda say someone like me cant take it this is different because were trying to destruct this place. Were the only company that has this quick dissolve, orderly dissolving tablet. Where you put in your mouth. It quickly disperses and has a very quick onset of action then lasts for a couple of days. Its an oral, simpletouse pill its not a needle or injectable. So thats where we are going to disrupt the space little bit with this unique approach. Were the only Company Looking to use this pill at this dose for both acute and prevention of migraine. Dont get me excited. You know i care so much about this disease and i dont want anyone to get their hopes up because there is 30 million surfers and the medical community has not been good until recently. We think were on to something here and we hope we can bring a better treatment to patients in the First Quarter of 2020. Where we expect our nda approval. Thats huge it could be really, really big wish you the best of luck. 30 million of us wish you the best of luck and of course alzheimers very tough. I would rather, you know, you want to keep the expectations down but the cgrp acute sounds terrific ceo of biohaven pharmaceuticals. Guys, its the real deal these are medicines you dont want to take because they create so many side effects that you have to be monitored constantly. Stick with cramer. Armacistrecod memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. One last trade hog deal yeah they got the back seats the chinese do not have. Always a bull market somewhere for you right here on mad money. I am jim cramer and i will see you monday night, founder of a categorydefining company, spanx, sara blakely, joins the tank. These two shark women are gonna take a huge bite out of you. Join me as we show the world the beauty of africa in design. So, who wants to blow this market out of the water . I like a lot of it, but not enough of it. As a mom, its a hit. As a dad, its a hit. As a future teller, it sucks. I have to call out the White Elephant for me in the room. Radzely i just need that person that has been there, done that, knows how to make money. Were ready to scale. I think that its supercool. Oh, i cant get it off, for real [ loud pop ] oh oh, my god and that is how you do a deal