Investors to take risk even with the pullback, dow slipping 130 points and nasdaq losing. 27 and what a week. We almost went to war and then we didnt go to war. We almost didnt get a trade deal and it is coming next wednesday. And then this morning we were worried the Labor Department report might come into too hot and they might mouth off about inflation and a bunch of governors speaking next week and that could have gotten ugly and how about a goldilocks job number, one that was not too hot, not too cold. You get that ive got to tell you, we created good jobs but we had sub 3 wage gain so the the feds should not be worried it could have been a lot worse since some of the shortfall related to a companys specific problems at boeing that just said the former ceo is not going to get severance the labor report was one reason to buy stocks and that is what happened this morning for even the most raging bulls either ran out of capital and got bored of buying the same old stuff or nothing new and that caused the decline. Now get this, the early spurt allows us to cross down 29,000 i know, not an important round number but it hammered home to people this rally is increasingly about momentum about movement, not about fundamentals so im actually glad we got a pullback today if only because it could help buffer the market against sharper declined if the earnings start to dispoint them next week any week this year will give the bulls a better setup but next week is when the rubber hits the road. Earnings season gets going and well see if we could justify the market move higher w. That in mind, what is the game plan for the crucial first week the first week that really matters in 2020. The week starts off with the fireworks of the Jp Morgan Health care conference and this is something that were going to it is the biggest shindig in the industry, where Bristol Myers told us they were getting celgene next year and new drugs. Ill be reported live from San Francisco. We are going to be talking once again to dr. Cafari, the ceo of Bristol Myers, wow that moved since they bought celgene and what the Drug Companies are up to tuesday we hear from jp morgan itself the earnings for the bank and the stock has been on a tear for months will the numbers be good enough to justify this move i think it is difficult for any company to live up to such lofty expectations even a company like jp morgan. The bar is lowered for citti group and the new ceo of wells fargo has to say about how hes reinventing the business i want to know if citi will buy back stock and is it tie high for Michael Corbett to continue to buy back 8 of the company. We get results from Goldman Sachs on wednesday im a big deliver in the company that i worked for and i dont expect anything to hear amazing to propel it higher. At least not yet at the end of the month it might do the trick along with citi and jp morgan. Im antsy about the results because the stocks had such magnificent moves, i dont know if anything could live up to the expectations bank of america is under the same gun the company is putting up consistently good number after good number and the stock is being rewarded again, though, worried about profit taking. Im trying to be sure you get the theme. And we hear in United Health and the stock is a scorcher since Elizabeth Warren backed away for medicare for all which would put them out of business no wonder it was in the low 200s all of the worries about the democrat primary have secured the success of this company. When you see the numbers, im thinking that you will get a positive beaten race scenario for the year 2020. Aside from earnings, the big Event Next Week is the signing of the phase one trade deal with china on wednesday once it goes into effect, i believe President Trump will roll back some tariffs in exchange for china making major purchases of americanmade goods. You know i think theyre about to buy a huge quantity of pork maybe tyson foods will get its due. The stock had a nice move today. Thursday ends the Big Bank Numbers and that is with morgan stanley. This one is off look, these report and thenthis report people dont even think about this one by the time it is just an afterthought. If they were to report here. Maybe ill speak to james gorman about it maybe it would do better sure the stock hit a 52week high but i think it sells for ten times earnings this is a well run bank and i think it could go higher if the stock sells off after the other banks reports. These guys arent that good and this stock is down i think you want to buy some that would be the best trade off of next week we also hear from ppg. Chemical maker lately the chemical stocks are roaring as they put in price increase poly vinyl had a price increase this week. Ppg has been a juggernaut since october. I bet they tell a fine story and one of the great bellwether reports csx. I dont know how theyre business is doing. It is difficult to tell. The rails have taken off since the feds starts cutting Interest Rates and it is a amazing move as the companies arent seeing a big uptick in business but had there is a big uptick in earnings because theyve been making more money off of the train thanks to something called precision railroading and i think it will please wall street when it reports. Friday, someone may not please with slb, known as slob. The all service titan. Not nab oj but the problem is i dont know whether it is possible to get anything positive in this environment with with the crude up substantially. Schlumberger gives you a 5 yield and dont worry about the side and next week could be make or break for the harkt becau e market, theyre given too lofty. Ive spent all week talking about complacency and im hoping this will reduce the quotient but there is still too much. Bottom line, since we resolves the iran situation, my suggest is trade careful into earnings season and china tries to take something off the table and you should do the same because this is a good moment for profittaking. To richard in new york richard. Caller booyah, this is richard the home town of lucy ball and the National Comedy museum. I have no idea she lived next door to me in the 90s shes just amazing s in 80s it was 84 she lives next to me. Shes a funny laid kdy, she amazing. When i say long time, big time fan when ten years ago i paid attention to youer single day, it led to my financial it turned my Financial Life around. Yes. Led me to a rock solid retirement that i never thought would be possible so i thank you very much. Thank you caller i love dividend stocks and i know this is a bit speculative as i have my top stocks well covered, but tell me about e. T. , sir. They have the cash flow to maintain that dividend but do they havethe management smarts to grow the business . And the answer is they just keep thinking the only way to grow is to buy so im not going to recommend Kelsey Warren and e. T. Im sorry i could do epd but thank you for the kind comments about the show lets go to lewis in california. Lewis . Caller mr. Cramer. Yeah. Caller a big booyah from sunny los angeles, sir. Oh, i love l. A. What is going on caller my question is on eli lilly. Im up 16 over the last couple of months and id like to know if it is time to take some chips off the table. No, dave ricks is the big deal the stock was up a lot today i get that i know im probably being greedy with lilly but you need a pharmaceutical they are great and i think the stock will keep going higher there could be a air pocket but pound the table if you got one how about craig in california. Craig . Caller is this jimbo. You bet it is, partner. What is up caller that is the ski daddy swammy of the stock market. You beta. Known as jimmy chill what is up caller ive got a stock name, a question for you, been following this about ten years, keeps rocketing higher and higher and higher, big name, nobody on the street talking about, im wondering how high can the stock go, what kind of multiples should be placed on as one of the quickest and easiest ways to find out if youve been a victim of Identity Theft is by doing a quick credit check does this bode well for fair isaac look, fair isaac is like kleenex. It is part of our society. And that is why the stock could keep going higher. Im a believer in fin tech and fair isaac its kind of like owning s p there are Certain Companies that are just fantastic to own and msci, and fair isaac is one of them you have a good one then tread careful into earnings season because im concerned think about the high 130s and it used to be much lower and citi had a big run and goldman off 180, im a little nervous. Not bad time to take profits on mad money tonight, what could iran mean for the oil harkt and im talking to the ceo. And what is behind the move. Im offering an alternative take andwere almost done with the busy week but before we wrap up im checking in on one of the major lines of the week. Ces. Find out about the selfdriving car with the ceo of mobile eye so stay with cramer. Announcer 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 1800743cnbc miss something head to madmoney. Cnbc. Com. You leave it to me. Ill get your taxes in an ok place. What . Just as soon as my audits over, this gets my undivided attention. You take a lot of trips to the islands, phil . Pretty great, right . Oh phils legally dead. Fell off a boat. Going by denis now. Celery. Long story. What do we got here. Oh. Not going to want to see this. I dont think this is going to work. 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. The unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Regular viewers know that ive become very skeptical about the Oil Industry Even the iran standoff wasnt enough to give the price of crude more than a modest bump because so much unsupplied tap and that is why corp labs are struggling but i could be wrong. Some of the Oil Producers did well in the Fourth Quarter and if the economy continues to improve that could lead to higher demand for energy and that is why tonight i want to get a better read on the industry and a fantastic Company CalledParsley Energy and Exploration Production company which ive been watching since it became public it is a play on the Permian Basin, in texas that transformed the entire industry. Today they closed on the purchase of jagged peak energy and they believe american producers will be disciplined about new supply the president and ceo of Parsley Energy for more about the deal and where he sees the industry heading. Mr. Gallagher, welcome to mad money. Jim, thanks for having me long time listener, and first time interview so im happy to be here. Thank you im a huge found of your company and founder and vision but i want others to know what it is because i think if people want to play the pure part of American Oil Boom it is parsley. Well that is right. And were right in the core of the Permian Basin and weve been built from scratch from a shale player we started drilling in 2009 and seen the horizontal evolution unfold in front of us and weve been part of it. And were excited to close on our acquisition today just in natural fit for Parsley Energy. Were you surprised with the increases tensioned with iran that we didnt have more of a move in oil . Well, actually, i think that were part of the reduced impact of that. So there were not lines around the gas pumps. We were able to keep the prices low because of this resource renaissance weve been part of as the shale producers so you didnt see the huge jump in pricing. And this growth in production that weve been able to deliver has helped insolate the impacts of geopolitical tension so were proud to be part of that. Lets talk about the uber growth production. The jagged peak energy acquisition. Because youre making a statement. And youre making a statement that your stock should be used to buy really Good Properties that could continue to produce a lot of oil well that is right. It is a natural fit. It is right next door to us. It is actually supportive to our Free Cash Flow growth and when i talk about this resource renaissance, it is been a fiveyear expansion phase larger than anybody thought on the Production Growth but what we need to do as shale leaders is convert to a financial renaissance and we have to deliver returns to our shareholders so weve demonstrated that there is a tremendous resource in the ground right here in the United States and now we need to turn that into competitive businesses what happens if the the other guys dont have discipline because at various times in the industry the companies have been conservative and i would say arent willing to borrow too much and then other times they just go way over the skis. Does it matter what other guys do for parsley well, i think on a broad scale, yes i think were really excited to see the industry as a whole pull in their capex spending. You did not see an immediate rebound coming that 2020 in Capital Programs parsley specifically is rying to deliver more consistent Capital Program over the course of five years, a decade, were already in a volatile industry and we want to take the Business Model and rerisk it and deliver year in and year out so if anybody were to react. I would say, your deck describes that and it is very unconventional because most companies are are trying to show how theyre going to grow no matter what. But you are the opposite in your deck well, thats right. When you look at how were built, were built at highly talented engineers and geologists, hard working people in the field and we were built to recover resources and now weve done that in spades and we have to turn this into high margin, consistent margin and growing cash flow returns to investors. Youre an conventional when you hook at your deck and i have it in fontd of in front of me, you talk about environmental and social government even though youre an oil company, some people would say that is counter intuitive and it is a spoiler of the environment that is not the way you fit into the picture, is it no. I appreciate you catching it that way and it is very important to us and a lot of people say im a millennial or on the edge of millennials and we hear these guys ask about the importance of social impacts to the companies and when i hear millennials and people around this great city of austin saying the importance of social and environmental impact, i think, you know what, it is about time. And we need to take a leadership stance, all of the oil and gas operators, especially the domestic operators to have a leg up in how we do business we like to hold things at a higher standard and invest in our communities and operate around the environments we live in and want to protect them to the best of our ability so we need to be accountable and transparent and get better over time so we put out a baseline report and well get better over time looking forward to it. And that includes not reckless flaring, which a lot of people are worried about who care about the environment flaring is a very hot topic and we pride ourselves in not hooking up wells and long term planning needed ahead of time to reduce flaring this fact we flair well under 5 , 2 last year and we have to stay accountable in that front there are some operators in the Permian Basin flare 20 to 30 and that is unacceptable we have to do as a group, whether we selfregulate or get the help of higher power to regulate, we need to get that percentage well below 5 . Congratulations for the company that you guys have built. It is remarkable done in a very very short time but it is the pure play with great financial structure of which im not used to seeing from the Oil Companies and certainly nothing from an oil company about environmental, social and governance. Thank you so much. Matt gallagher, good to see you, sir. Good to see you. Matt is the president and ceo of Parsley Energy, p millennials if you feel like you want a oil stock, this is the only one i can recommend mad money is back after the break. With the cnbc 2020 playbook. Get the edge on the sector and see predictions on what you are eating, trading and streaming and more in the year ahead. Three things to watch in 2020. The commerce exceeds expectation. Tech led to new challenges. Take your advantage on this playing field. The cnbc 2020 playbook now on cnbc. Com. You can see what others cant. 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. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk were all the politicians who spent most of last year hectoring the Big Tech Companies. Absent, that is where. Not only the whole Health Care Cohort caught fire, united and humana and the drug stocks, extraordinary move and while it is now not being repealed and what happened then first and foremost, Elizabeth Warren candidacy seemed to have peaked it is not clear where they went but they are terrified and now much less afraid because she moderated her position on health care but because of her decline in the polls any way warren disappeared as an opponent of the Health Care Industry and the whole group caught fire. Now were seeing a similar surge in the stocks of Big Tech Companies like facebook and alphabet and those like warren spent last year hammering. There is a lot less fear that the government might break up google or amazon or facebook and that is why i think this may be the same kind of move we saw in health care a few months ago wall street was terrified of warren and bernie sanders. It seemed like nearly the whole democratic field had taken a major antibusiness turn but i told you at the time, those words will be overblown. Sure enough, now we see a candidate like mayor pete. Hes gaining steam widely viewed as a good friend of Silicon Valley. If he does well in iowa, big tech could be the sweet spot that said it is not just about the president ial election, if you break up facebook, google or amazon, we learn it could be terrific for the stocks. We have shown the companies would be worth a heck of a lot more if they separate some of the parts. Sotp and wont you want that. But then just when investors are getting comfortable, warren cools and we stop worrying about the big tech breakups and now we turn to the fundamentals and they are robust and the stocks have roared. Only amazon has been tepid as of late because theyre seeing more competition on the Cloud Infrastructure font from azure sand Google Cloud Services big tech has gotten smarter about maintaining a more positive public image. The Companies Need to be weary alphabet recognizes that the state attorney general could make life difficult so they have to be careful. Amazon has got much more subtle since a group of legislators shot down the plan to build a big new headquarters in queens i think this is a side benefit from impeachment because it is such a distraction from the democrats in congress, they cant focus on anything else as long as the Big Tech Companies keep the noses clean and dont make any more major acquisitions, i believe Googles Fitbit purchase will be the last one and now we could focus on the fundamentals take political worries off the table and big tech could go much higher and for the moment they look like they are off the table. Lets go to tony in new york tony caller hey, jim. Calling how are you tony calling for massapequa, new york thank you for everything you do for the small investor. Thank you. Caller im calling about a long owner for Cisco Systems a great run company. Chuck robbins has a lot of integrity. I agree tony, people are too bearish on cisco. It is a 5g but on the enterprise side this might not beuntil 2021 but how could you tells sell it now with such momentum in that business others are are not that good but i think that as you said, Chuck Robbins knows what hes doing. Hell fix it own cisco. Bruce in wisconsin, bruce . Caller hey, jim. Good afternoon booyah from madison, wisconsin im a first time caller but ive been on action alert member since november and i have to tell you that im so glad i joined the group. Oh, thank you we have a good call this week. Thank you so much. Im glad you remember the club what is going on. Caller thanks for all of your work. I want to ask you about comments on tj Technology Earnings are out february 4th and since last earnings is a narrow trading range. Right. Caller do you think it consolidating. I think it will be okay, bruce and thank you for the kind comments but i think that Western Digital is the better one because they have nan and they have flash and doing quite well so i would swap into one that. Lets go to prague in texas. Prague caller hey, jim. Im calling about zoom, ticker zm it was ipo earlier this year and it skyrocketed and i bought some shares in the middle of october. I just wondering where this is going and where it is headed. I think you have to own this for the longterm because boy are they ever good we talk about cisco earlier, they have to try to go up against them but zoom is just a remarkable company it is high valued but it could go higher. It is not beyond meat. That could still go higher big tech is on a tear. If they keep noses clean i think that tear can continue much more mad money. Does the road ahead look promising for intel mobil eye. Im sitting down with the ceo to find out and before i head out to the west coast next week im getting a sneak peek into one of the essential conferences taking place while im there. Dont miss my preview. Your calls and rapid fire and tonights edition of the lightning round so stay with cramer monday kick off the trading day with squawk on the street. Live from post nine at the nyse. Who wears black slews with an olive suit. It is a brianny suit, worth a lot more than you. I mean your whatever outfit. Anyway, i dont want to get too far. Lets not get too far away. If you start focusing on ties it all starts at 9 00 a. M. Eastern. Tech on a tear. What is sending sector titans to new highs and what are the best moves for tech investors now squawk on the street monday at 9 00 a. M. Eastern. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. And now for their servicer to the community,t we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Because its tailored to you . Take the personal assessment and get matched with a proven weight loss plan. Find out which customized plan can make losing weight easier for you myww join today with the ww triple play now that ces known as the communer Electronics Show has wrapped up, i want to circle back to a company at the forefront of the hottest friends in tech im talking about mobil eye that makes advanced driver systems. When you hear autonomous driving think mobil eye. Three years ago this company was acquired by intel and become a muchneeded Growth Engine within the semiconductor company. You cant invest directlyba they have a fabulous understanding of what i expect would be one of the greatest growth stories of the next decade if not beyond. So lets check in with professor and learn more about the future of autonomous driving. Welcome to mad money. Good to see you. Good to see you. Thank you so much one thing that i think just to get started right to the issue, people dont think unless it is car with with no driver, they think there is nothing there you have a billion dollars in sales. Clearly it is bigger than just a car without a driver it is a revolution. It is a revolution in a number of ways. First it is a revolution in saving lives more cars will be autonomous and more lives will be saved the computer will do a better job than a human eventually. Second it is a revolution of all what we no transportation. About the cost per mile, that today is lowest when you own a car but in the future, it is lowest if you is a robo taxi and lower if you have an Autonomous Car. It will even rival the cost of public transportation. So all tapgs will chan transportation will change if we could make it work. Israel is well ahead of the United States in driverless. Dont think it is a competition between states i think the number of companies that could pull it through create the technology for the Autonomous Car is going to be a handful of companies, a small number where they are located geographically today in this global world doesnt really matter. Will we ever start cars that are driven by people if we were to start over again. Wouldnt we always want them to be driven by machines an not people. It is making sense to be driven by machines the only problem is that automating the concept of driving is so difficult, yet the public doesnt doesnt understand how difficult it is public understands that sending a rocket and landing on the moon is very, very difficult. But driving is easy. We all drive it is a natural thing. We take driving lessons but it is very natural. But when you think about the technology and all that you need to do in order to put such a machine on the road and make sure it is safe, it is mindblowing. We should back up and talk about the incredibly cool things that youre up to for advanced driver systems because there is a lot more to this than just one day having a car without a driver. Were look at a spectrum. So the spectrum starts from driving assist which is called adas up to mar advance called level two plus where it is conditional autonomy so the driver is responsible but under certain conditions you could let go for a certain period of time and autonomous driving coming in two phases, first is robo taxi so you dont go and buy a vehicle, an operator owns a fleet of vehicles for ride hailing and ride sharing and the holy grail is where you and i can go and purchase a car, first a premium car but purchase a car and then at the push of a button you could sit in the backseat and it will take you to whenever you want to go. Does bmw have that car right now. Nobody has such a car but they do have conditional autonomy cars. But robo taxis is not that far away we are targeting early 2022. Actual live been saying so from 2016. People tell me it is pushed back to 2025 that is not true. So maybe theyre talking about consumer av. The last stage in which you and i can buy a car. The number of good reasons why you want so start with robo taxi rather than jump to a consumer the first is the regulatory front. It is much easier to regulate an operator that operates a fleet of such vehicles because then you have reporting responsibilities and you have back office and operation and things you cannot put on a consumer second one would be the cost when you think about the cost of the technology, the selfdriving system today it is somewhere between 15,000 to 40,000 per carment sensors, computer, cables, everything that is okay for a robo taxi it is not okay for a consumer. Pu if you bring it down to about 5,000, which we believe we can do in 2025. Really . Then it is interesting at the consumer level 5,000 cost and 15,000 to the driver you buy a premium vehicle for 100,000, 15,000, sounds reasonable for such a huge valley and then later it will trickle down to more and less and less premium suggests. Youre much more bullish on this than most people i talk to who is said, because we had a couple that have been set back and it will take so many simulations in multiple years. This is here and now. This is here dominos could have a robo. That is what they want to do youre telling me there is robo taxis within the next two or three years. If you build it right there will be robo taxis and build it right. Ill leave it there because that will make me feel good it is a tough week that is the best news ive heard. That is professor am nan shashua a division of intel, and wow, a lot of people are skeptical. I hike what you had to say mad money is back after the break. Man, im thinking tacos. Hey hey you guys look like foodies. Would you like to try our trashy back ribs . Oh, that sounds great. Everything is locally harvested, farm to dumpster to table. Uhhh, what do you. What else do you got . stammering wwe have a melon rind stew. Comes with a pork and bean reduction. Yeah, were going to just do a lap and well come back. Okay. Well, well be here. Man why isnt this working . My mouth is watering. I think thats just your rabies flaring up. With geico, the savings keep on going. Just like this sequel. 15 minutes could save you 15 or more on Car Insurance. We got gristle pot pies 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. Created by apple, not a bank. With a better way to track where you spend. A new level of privacy and security. Daily cash you get back every day. And no fees. Not even hidden ones. Oh, and if you happen to be somewhere that doesnt accept apple pay yet, theres this. Nice. Announcer lightning round is sponsored by Td Ameritrade it is time it is time for the lightning are you ready . For the lightning round. Lou in massachusetts, lou . Krnch hey, jimmy baby, youre the best. Thank you for the kudos what is happening. Caller im thinking about ignx i just bought a position i was thinking about taking the truck back and loading it up. No. No, no it is a speculative situation. Dont put more than one a small percentage of your assets in it. Virus therapy but unproven and so you have to be small. Lets go to albert in illinois albert caller hi, dr. Cramer. Yes. Caller im sending you unlimited and unlimited talk to the whole world my teach is lti petroleum and i have a buyout im not a fan of laredo or the Balance Sheet or a fan of the industry right now so im going to have to go against that one parsley is better if you have to be in it lets go to gary in texas. Gary caller happy new year. Happy new year to you, gary. Caller listen, 96 of my portfolio is in mutual funds and 4 in individual stocks. My main question today is about mksi i bought some at 74 in 2018 and more at 70 of 2019 and i sold 25 of my position in october of 19 for 109. Thinkthe company has a lot mor room to run but should i take more no. Im in total agreement i like your strategy doing it just right. That is precisely what i would be saying. Sell 25 and let the rest run. This is a high tech Instrument Company and display and device i think it is good let the rest run to ryan in florida caller jim, jimmy kill thanks for jimmy chill is here go ahead. Caller i have a question about one of the leaders of advanced medical testing theyll release preliminary q4 results and guidance at jp morgan and ill be looking at reacceleration of Revenue Growth and citron recently converted and is now a buyer. Really . I have to tell you i like it. Im doing that 23 and me thing you need these companies they do cancer and Genetic Screening to allow you to do immunotherapy. I think you have a winner. And i support it lets go to har len in washington harlan. Caller yes, jim. Gt therapeutics. It finally worked weve been behind forever and people said why are you behind him and i said no because it is real it is real theyll be at the jp Morgan Conference and well find out more they did have the Public Offering and it keeps going higher mike, come back on the show. I believe in you when no one else did there we go. To purist in california. Caller yeah, hi, jim how are you . Caller im good. I was wondering about this one stock that i should buy. I got in around 190 and it is vrtx. We dont care where it is going but where it came from this is for Cystic Fibrosis and they have the best thing out there and i think the stock is undervalued and it could go up a lot. To jerry in california jerry . Caller hello there, jim. First time caller. All right caller got a question in reference to kmi, kinder morgan. 4 yield it is fine rich kinder is buying stock left and right. If you have to own a pipeline company, at a 52week high it is not bad but i dont think you have to own these but it is not bad how about that and thats because the industry i dont care for to cliff in new york cliff. Good evening, mr. Cramer. Hi. Caller could you tell me adventis i struggle. I think they are terrific but the last quarter was not good. The guidance wasnt good and you know what, it is not about friends, it is about money. And that company is not doing as well as i would like and the pros pecks are not as good as i think in that kind of longterm nursing facilities and oh, boy it is a tough one. I feel so much but that was a disappointing last quarter to kyle in pennsylvania. Kyle. Caller hey, mr. Cramer, how are you doing . Im good. How are you . Caller good. I just want to say thank you for inspiring the Younger Generation including myself. That is what i want everyone has given up on you guys except for me i know that is what you want you want information and teaching so we do it. How could i help well, oh, geez, well have to cut it short and that is the conclusion of the lightning round. Announcer lightning round is sponsored by Td Ameritrade that is a whole lot of wrong to take in on wall street bald is beautiful. Hair is bad. Wow, i got to go to costco someone just tweeted me that kirkland has great locks there is oil, oil, everywhere. And not a drop to drip dont forget we have a train to catch. All aboard. Were going to washington it is time it is time for the lightning round. Yes yes our Retirement Plan with voya gives us confidence. Yeah, they help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Next week were heading out to San Francisco not for Silicon Valley but for the Jp Morgan Health care conference which is among the biggest events of the year for the industry it is not any industry ill sit down with the biggest names in the space, cvs and smith klein and others you have to stay tuned but i have to make sure you have the right mindset. There are over 450 companies so you have to stay focused and well look ahead of the conference with one of the event hosts and that is lisa gill, the managing director the jp morgan who is the fantastic head of health care, technology, and distribution research. Miss gill, welcome back to mad money. Great to see you. Thank you so much for having me. Great to have you back. You like to have themes. This is one theme i think you are pioneering s it is the year of the consumer explain it to us. As we think about Health Care Going forward, you and i are paying more out of pocket for those costs and we want to figure out how we want it and where we want it and what we want to pay for it and we think last year that the consumer would be important but every queer that goes by it is increasingly becoming a bigger aspect of what we have to pay out of pocket, High Deductible Health plans continue to grow and the out of pocket costs continue to grow. I hear that and i want to play that theme which is obviously a multiyear theme and i want to buy a growth stock that matches that. What should i do. It is called teledoc. When we think about teledoc, a lot of times weve had conversations about where the price of the stock is. It is really hard to value these companies that are disruptive to health care. And really disrupting the primary care model giving People Health care where they want it, when they want it. Another disruptive name in my opinion even though it is an old name is cvs. I think theyre recreating themself and we love the Health Care Hub and the idea of the hub Getting Health Care where you need it, low cost and high quality. So those are some of the names that we think will change the way health care is delivered. Im responding because when cvs dropped to 54, i called lisa and i said ive never been this wrong i cant be this wrong. Im not this wrong and you said you have to stick by it because there is a vision and the vision is coming true. It is starting to come to fruition when i was here hast year we were super excited about the story and i believe that you and i have had a conversation who said if i could be wrong, it would be that i was too early in the excitement of the story because transformation takes more time and that is what it is, it has taken time but look at the progression each and every quarter this year putting up better than expected numbers. Should be able to close to 7 a queer which isnt that far off when we started at 7. 20 but i think we have the momentum and aetna had a good selling season and we know about the losses on the pbm side of the business, pharmacy benefit side and pull into the stores and we hear about the health hubs and youll talk to larry next week and ill be excited to talk to you about the health hub but were seeing a difference for cvs to pull patients into the store for people to think about cvs as a destination for health care. That is very important when we talk because walgreens had a bad quarter this week. They did. Theyre just not the same animal. They are not. Unfortunately. And i think that for a long time we believed that walgreens was going to be able to pull something out here through a partnership. I know. But it is proven that partnerships do not work as well as owning the assets and unfortunately in health care i think you have to have those assets and walgreens, if they are in a difficult position, be honest when you think about drug retail, there is still 70,000 places to pick up a traffic. And so what does that do that continues to compress your margin and how do you improve your margin . You have to have Incremental Services like cvs does. Do you think it could duplicate the excitement of last year where you had blockbuster mergers announced at the conference. Well, i mean, you had glaxo im sorry, Bristol Meyer and celgene will kick off the conference. Which is greatbecause im a believer. In services it is hard to see big blockbuster kind of things maybe an announcement with mckesson around the change transaction. There is still the opportunity for them to spin or potentially to do some kind of stock split around that transaction. That could come out next week and be excited and little tuck in acquisitions but nothing big on the services side. One last thing, the card this week and because of the world of negativity but American Cancer Society talked about a the largest oneyear drop ever is this the consumer getting sha smart or people not smoking as much or the immunotherapy that you talk about that are are really coming true. I think it is all those things i think, one, i recently saw a quote that if you think wellness is too expensive, try illness. And so if you think about this, were all a lot more focused on how much it cost to stay well. Not smoking, thinking about how how we could take better care of ourself but also think about the products that have come to market in the last few years. I think that they are starting to work. Now the question is, how is our Health Care System going to pay for them. Well i hope to learn about that next week cms should help us figure that out. That is another thing seema verma is there as a key thoet and looking forward to hearing from her and what cms is going to do. You do a great job. Thank you for keeping us up and cvs one of the greatest buys ever that is lisa gill, Jp Morgan Health care tech and distribution, the year of the consumer i think it is the decade of the consumer because were figuring out were paying for it. Stick with cramer. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Stay resthe new rx,the icon thatcrafted by lexus. Lease the 2020 rx 350 for 419 a month for 36 months. Experience amazing at your lexus dealer. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. All week ive been talking about resiliency and complacency and when the needle gets too close to complacency i get more negative and i detected a lot of complacency in the last two days as we kept going up on the same information. So, look, it is okay to take some profits there is always a bull market somewhere and i promise to find it just for you here on mad money. Im jim cramer and ill see you monday 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. Is a reinvention of an ancient beverage. Hello, sharks. Im jon fotheringham. And im dr. Eric durtschi. 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