peaking. it may be over by april. the scientists has street cred, 83-year-old epidemiologist who helped fight sars 17 years ago next thing you know the market's making a stand although that move didn't last the dow only sinking less than half a point s&p gaining 1.7% at one point the market was flying on all of this. suddenly you see what's happened is, there's a bull case developing a china bull case. we're getting our first data that shows a much higher percentage of people are recovering from the disease while fewer die, which suggests maybe we're through the most lethal stage more importantly, at least as far as the stock market's concerned, a legendary hedge fund manager, ray dallio, says concern about the outbreak is exaggerated. according to him hardly anybody's going to be talking about this virus in a year or two. that's academic what we needed, a good old-fashioned hedge fund manager tells us fears are 84 done come on in weather's fine. i know he didn't say that, but that's how the market interpreted it, his comments, or misinterpreted them. what happens i think we got a sneak peek into what this market will look like once this outbreak is truly beat let's go to the tape first the cruise ships despite unappealing steps recommended by the cdc yesterday to make these quarantine ships sound like floating hospitals, anything that gives these companies relief is met with massive buying hope springs eternal beleaguered carnival with its floating sick bay floating off the coast of japan why not? one day the chinese will beat this we won't be talking about it or thinking about it in a year or two. next, marriott picked up a ton in china when it bought starwood four years ago the stock jumps today. wynn resorts is worrying too why not? gamblers will be right back to macao. the more cyclical semis got hammered along with apple. today we saw excellent action in nvidia apple wasn't able to lift. of course these chipmakers benefited from more than just china when a federal judge blessed the merger of t-mobile and sprint, big surprise there, unleashed a flood of euphoria as wall street's betting the combined company will be a powerhouse of spending for 5g. all these semis have a stake in f 5g but there wouldn't be a rally without china. the airlines all rallied united's the cheapest with the most chinese exposure. caterpillar, emerson, cummins taking off they can be counted on for dreams bettors of high-end autos made in china yesterday i explained why oil and gas stocks are uninvestable for the long-term. i predicted we can gamble on stocks beaten down the moment we get anything positive in china, that's what we're expecting, especially if trump is re-elected regardless how you feel personally, this stock market loves the guy. i'm betting the oil cheerleaders will be out in full force tomorrow touting the producers with the big yields and tremendous growth prospects. i don't believe you to believe the hype, i want you to lighten up into strength, the group's not investable you know where the big money was made today shorting the china off stocks. that was a 6-point gain if you do that. it meant slamming the cloud kings like adobe because they don't have that much china business it meant banging down the high-flying clorox, who needs to stockpile bleach if the epidemic's peaking the thing about the strategy is it can work for a day. longer than that i think it's a fool's game why? i'll tell you why. here's what you have to do when you have something like this, you have to find your true north. you have to find someone you trust, someone you believe in, someone you follow, and someone if you have to hang on every word and i've got my guy. his name is dr. tony fau krchci immunologist and director of the national institute of allergy and infectious diseases at the national institutes of health. he's been on our air i've never spoken to him personally but i read everything he says. if this guy were a hedge fund manager he'd be ray dallio he's been right every single step of the way on this virus as well as every other one i've followed him with. yesterday he gave an interview with "the washington post. my takeaway was, you should be buying the china off stocks. because his message was anything but reassuring listen to this fauci says, when it comes to the coronavirus, quote the general public is naive with regard to protection and it has serious potential because it's already spreading rapidly end quote. so then he's asked, can it be contained? quote the short answer, he says, is we're not past the point of containment, but it really does have the potential to turn to a global pandemic. he then continues, once you get multiple countries that have sustained transmission person to person it's almost inevitable it's going to be spreading here. travel bans? no, they're just merely buying time, they probable won't work fauci wants to help. the cdc wants to help. the nih wants to help. the chinese? they don't want those organizations' help. not reassuring that's why i want to take the other side of today's trade. why i find today's trade just instructive and nothing more see, they show you where the call springs are when fauci changes his mind i don't know when he's going to. he's real good, though remember, the global economy's slowing because of this virus. i expect most of the stocks that wrup today have estimates on the street that are going to prove to be too high because of the outbreak yes, we are chattering on the hill, fed chiefs are back if things get out of control. what we see in china is a country that seems a little too out of the control to believe they've contained the disease, and therefore while i don't want to conflate life with money, i have to tell you i think when estimates come down, stocks go down look, i want very much to throw my -- all of my body and all of my brain with the 83-year-old chinese doctor or brit yant ray dallio my instinct is to say come april it will die out like most flu outbreaks. but so far you hive to be encouraged by the travel ban's effectiveness in this country. 13 cases but this one's way beyond the ken of most investors or commentators we're not epidemiologists. hedge fund managers aren't includes the disease can be episodic i looked at a chart that shows the numbers that have recovered. right now the growing number of recovered versus the kid, a growing ratio. notice after a big flurry of hope, lots of news articles, headlines, there's no luck with any vaccine. there's no luck with any medicines used for other kinds of flu there's nothing any biotech company's been able to come up with perhaps because the chinese haven't exactly been forthcoming. i have tremendous faith in our scientists, i have more faith in tony fauci telling it like it is i don't like how it is bottom line, until fauci grows more positive, changes his view, until he says something optimistic, until he disavows the idea of a public nightmare in other countries around the globe, i'm staying squarely in the china off camp you know what, i recommend that you join me. let's go to ryan in oregon ryan >> caller: boo-yah thanks for taking me call, thank you for all you do for the young investors out there. >> >> thank you very much. >> caller: i'm calling about one of your favorite side stocks marvel it's had a good year, however, down about 10% the last three months, just had a double downgrade last last week is it still your favorite 5g pick, if so, is this a good time to buy >> we put out a no today saying it is still very much a 5g play. now the double downgrade was disconcerting and we mentioned that we did say, listen, there is some concern because 5g's slowing in all these countries because of the virus so like many companies, are estimates too high it could be. do we believe in this stock? i think it's going to be a little bit delayed that said, the stock was up big today, and we made it very clear that the story is not -- the story's disconcerting. i got to say that. i want every story to be great but they have to be great in order to say they're great there's a lot of slowdown at 5g around the globe philip in north carolina, please philip >> caller: hey, jim. >> yo. >> caller: north carolina, first in freedom, first in flight. >> i didn't know that -- that's right, that's right, i remember that, go ahead. >> caller: i'm trying to make a play in the cannabis market. i've noticed that, to the four states i've visited, the demand is growing and growing strong. so i'm looking at chronus group. what do you think? >> i always return to canopy canopy's got david kline, serious businessperson, former cfo of constellation brand kronos, not as good. my feeling is the industry got too hot and a lot of people got burned i'm staying the china off camp for now, consider doing the same which group in this market could be right for similar consolidation? the market's been on a tear in spite of the coronavirus outbreak could we be due for a breather i'm going to go off the charts to find out. columbia shoportswear has tested tough but could unusually warm weather be bad news for the company? i'm going to see if the post-earnings decline is a buying opportunity stay with cramer >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer #madtweets. madmoney @cnbc.com or 800-743-cnbc. head to madmoney.cnbc.com. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information. free freefree free freefree. free free, free free. that's right, turbotax free is free. free, free free free. free. free, free free free. wheneveryone is different.a, which is why xfinity mobile created a different kind of wireless network. one that saves you money by letting you design your own data - giving you more choice and control compared to other top wireless carriers. now you can choose unlimited, shared data, or mix lines of each and switch any line, anytime. no one else lets you do that. design your own data with xfinity mobile. it's wireless reimagined. simple. easy. awesome. is the mall ready to make a comeback if you'd asked me last week, absolutely not now the game's changed yesterday we got a statement buy. simon property group's takeover of one of the premier shopping centers in america, a 51% premium where the stock was trading, a monster bid one that's generous to a fault or at least it looks generous. talbot stock blew through it perhaps because their shareholders want more from simon? perhaps another bidder lurking that does seem unlikely. i have no idea why simon's paying such a colossal premium, but chairman, president, and ceo, acknowledged dean of the industry if he thinks it's a good price, who am i to criticize it might be a recognition of how cheap this whole group's become, and they are cheap even after this huge bid, it sports a 5% yield. why do i call this a statement buy? when you listen to the conference call of the merger, you'll hear simon talk about how he can fund the deal, as he says, quote without ever going to third-party financing end quote. more importantly, he's not giving away his precious equity. simon continues quote if you look at the multiple of earnings, net asset value, any metric you want, we are undervalued. i have no desire to issue stock at this time end quote that's a staggering indictment of the stock market's inability to correctly value simon stock versus its assets. i think it's weighed down by the real estate investment trust etfs simon's one of the best-run in the industry a poorly performing refund will crush the good with the bad. talbot's largely a collection of malls, while there's been turnover at the mall, neiman marcus as an anchor is probably a suspect tenant because of that ugly balance sheet, it's still a destination worth going to they've got a fabulous set of high-end specialty stores, best apple outlet i've been to, that says a lot they get judged based on their weakest tenants. they have seven that belonged to once-large companies that have gone too small for me to mention on the show. all these places are not so hot. simon says they'll have replacements that are really fantastic, his term. i think he's got something big up his sleeve. he was able to capture forever 21 in bankruptcy he really wanted it. brookfield property, proper smart guys, and authentic brands, wow. these guys are really smart. they paid just $81 million i thought they'd bought nothing. there's got to be something up their sleeve authentic likes brand value are value, so they just see something. simon and brookfield could stand to make a lot of money if they can lease for more than they'd have gotten from forever 21. but these together and you can see a picture of determined smart real estate visionary who thinks the stock is too low despite the pearls of brick and mortar and amazon world. if he's right that he can bring in better stores, getting out of these contracts of poorly performing retailers, i think it would be a huge win. why is this so important besides just think simon stock is cheap? there's another group that's ripe for a similar kind of consolidation. the oil and gas stocks fossil fuel stocks have collapsed. as i pointed out recently and repeatedly, while i think they're uninvestable, i think they can do something to help themselves if an oil ceo who believes in the industry, wants to put his money where his mouth is, it's time to stand up and make a statement buy like david simon has done the longer we don't get one, the more likely it is the energy stocks deserve to be down. will someone stand up and play simple simon in the clock is ticking, the bell is tolling tolling for the entire oil and gas group. is anyone listening? stick with cramer. tomorrow, kick off the trading day with "squawk on the street." live from post 9 at nyse. >> david, i do not think google's going to buy tesla, how did that get started >> it didn't >> well, no, it did. >> i just killed it. >> a story meeting at 4, that's where it started. >> oh, that's great, okay. i'm going to do a hostile takeover. >> it all starts at 9:00 a.m. eastern. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. apps except work.rywhere... 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. i'll let you in on a little secret. they don't. by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. to learn more, visit paycom.com high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes how can we tell when this raging bull market could be ready to lose some steam we've had a phenomenal run here with the averages surging to new highs in spite of the coronavirus outbreak could we be due for a breather that's what everyone's asking me we want to be -- you can't be emotional about this which is why we're going to take a more quantity dative, more imperial approach. we're going off the charts with the help of bob moreno, brilliant technician, colleague at realmoney.com where i blog. he's the publisher of rightviewtrading.com in recent years bob moreno's been having real good calls. he's nailed big ones let's review his history take a look at the daily chart of the s&p 500, what we've got here december 2018, when the whole market was breaking down, everyone was terrified remember this? the federal reserve kept telling us they had to destroy the economy in order to save it. the panic was palpable bob moreno wasn't panicking, no. his indicators told him the s&p 500 was likely near a bottom and that's what he told us this was a hotel home run call as the market bottomed a week later after one last precipitous drop, i know i used it because i thought bob had it nailed. the s&p 500 caught fire, we had a v-shaped recovery through the first couple of months of 2019 people made fortuneded how do i know the pain was almost over? he took a longer view. zoom out, the decline looked less than the end of the world, looked more like a garden-variety sell-off. the market had consolidated huge gains. the fear, oh my. the buy, fantastic a year ago moreno hit it out of the park again last february commentators started having doubts about the rally. i don't know if you remember that, they were really, really frightened so what he did was he figured it out, he figured it would fail. moreno told us to be cautiously optimistic, though and said the s&p would ultimately take out its highs at 2930 if it reached those levels he told us to expect a multi-month period of consolidation, perhaps all the way through september. why? that's the historical pattern. a big move up, the market needs to trade side ways to digest those gains. turns out that was an eerily accurate prediction. seven months of consolidation in the middle of last year. you can see it in the rising triangle that's the person that people call it. the s&p makes a series of high or lows under a ceiling of resistance there's your ceiling, higher lows, okay eventually the market does what moreno predicted it breaks out and resumes its long march higher. this time it came up with a new forecast he told us based on the size of the triangle pattern he expected the s&p to roar to the 3,300 level. those technical tools aren't perfect. in october he saw indicators turning negative he got a lot more bearish. he got this one wrong. i love the fact that a guy admits he gets it wrong. as he saw it, the s&p had another triangle pattern this time he expected a breakdown rather than a breakout in the end that was a mistake. the s&p never retested, and we got yet another -- this time another upside still, i mean, look. you got to just respect the fact that he made this big call, he got this call. so his track record i think is real good over the last year now that the s&p's cleared his long-term upside target of 3330, with points to spare by the way, where is it headed this time moreno wants to do something that's a little different. he's going to use the daily chart, i've never seen this one, the daily chart of the equal weighted s&p 500 index the normal s&p is weighted by market capitalization. meaning gigantic companies like microsoft, apple, amazon, have a lot of heft. the normal s&p is skewed in favor of the biggest of the big, which we know have been red hot. the equal weighted version of the s&p gives all 500 stocks the same weight. they have it as the bernie sanders version. moreno likes looking at the equal weight s&p because it's a more accurate representation of the market's underlying dynamics what does moreno see in this picture? the equal weighted s&p is testing its january high just now. trying to get back there okay unlike the normal s&p, which has already broken to a new high on top of that, last week, despite what's known as an evening star pattern, new pattern for me, this is a three-day formation. first you get a large up day then a sedate day where the stock in question closes not far from where it open finally a large down day an evening star pattern often represents a transition in investor sentiment from bullishness to a more neutral stance often to outright bearishness, which is why it's largely considered to be a reversal signal. after the strengthening of the s&p the last couple of days it looks like the pattern's wrong geez, confusing moment but most importantly moreno notes the equal weight s&p is currently in a consolidation channel. with a clearly defined ceiling of resistance at 4,800 where it peaked in january and a clearly defined floor of support at 4,600 where it bottomed during the recent sell-off if it manages to break out above the market's got more room to run, his measured move technique suggested it could rally another 4% fit breaks out of this on the other hand, if the equal weight s&p bounces off the ceiling of resistance and can't get through that, he thinks you'll see a return to the floor of support at 4,600 which is down roughly 4% from here. this would drag the normal market cap s&p 500 down too. and if that floor at 4,600 doesn't hold, the next support level is the 200 moving day average, down 7% that's a 9% decline in the market cap weighted s&p 500 and that's an ouch moreno's not saying we're going to have a big breakdown, he's saying we're at an important decision point for the market. given how much we've run, the risk/reward isn't if your favor if you just let it ride, if you don't take something off the table, which is how i feel you should, that's what we talk about all the time when i meet with our action alerts crew. what can we take off we want to be disciplined. but the bottom line, if you want to get a read on this market, moreno says stop watching the s&p 500 which is distorted by the huge rallies and the trillion fairs like amazon, and focus on the equal weighted s&p 500, the charts as interpreted by moreno suggests we could go either way here. although the potential downside if things go wrong might be larger than the potential upside if things go right, which is why i say you should trim a little bit. not a lot. but you should trim a little bit. i want to go to nancy in maine nancy? >> caller: hi, jim i'm a long-time listener and i've been in the market for over 35 years. >> wow great. >> caller: my question is about stock splits they were common up until around 2000s. but i haven't seen a stock split in my portfolio since the 1990s. >> there's a reason. the big companies were convinced by the large institutional traders that if they're going to buy stock at a certain penny or two, three penny -- 3 cents per share, it would be much better if the companies just don't split their stock. it's a complete cave-in to the big guys, to the big funds and leaving you and me thinking, well, that's just great, now we can't buy a couple of shares, we have to buy a fraction of a share. thank heaven some of the brokers are offering fractions of a share. it's the big institutions prevailing and telling them, don't split your stock, we don't want to pay that much per share, you got to help us and they are and it's really a betrayal of the little guy christos in connecticut, please? >> caller: boo-yah, professor! >> how talented is this gentleman? what's going on? >> caller: thank you very much >> my wife says i'm not jimmy chill but i don't care my daughter says i am. let's go >> caller: jim, last year i made 27% of my portfolio. i did it by buying in increments and selling in increments just like you suggest while simultaneously doing my homework on all the companies i own. >> perfect. >> caller: starting in december, up to 10 days ago, i kept selling to the point that i'm actually 85% cash. >> wow. >> caller: 15% stock. >> whoa. >> caller: i'm currently up 4.1% year to date and i bought for the first time last friday the triple 2s when the market drops. >> okay. >> caller: at this point should i hold should i start buying? >> i think you're going to have enough stock i do think the market's going to come down and you'll be able to build positions. but i don't like that little stock and that much cash i think the market represents a great alternative. i totally get it, i know that a lot of people feel that the market's gone too far, too fast. but i think we're still okay and the discipline is try to keep some stock on i want you to bulk up and buy more on the way down we're at an important decision point for the market. keep your eye on the equal weighted s&p 500 that's much -- that is really probably the best indicator right now. hey, more "mad money" ahead, including the ceo of columbia sportswear after warmer winters, start feeling the chill. it's a company that could help with the development of a coronavirus vaccine. what could it mean for the stock? i'm talking to the ceo of charles river labs and tonight's edition of "the lightning round. stay with cramer do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. even after this market's spectacular run there are still bargains out there but you've got to know how to look for them take columbia sportswear,@barrel company you might recognize as mountain hardware among other brands a brand we use all time at home. last year columbia surged to the triple digits. the stock peaked and it's trended lower. it's down 19 bucks from its highs. fortunately there's a reason for its underperformance this company was a big loser from the trade war they sourced a lot of merchandise in china they had too much inventory second half of last year before getting hit with warm weather which is not great when you're selling outerwear. the company delivered a very good top and bottom line beat for the fourth quarter, but they paired that with, yes, some guidance that was light for the coming year. the forecast was particularly dispiriting because it doesn't even include the coronavirus wave of disruptions that could be happening that's why the stock got hit down 4%. wait a second, this is a terrific brand the question is, has this thing been punished enough does it represent real value tim boyle, chairman, president, and cce off of columbia sportswear mr. boyle, welcome back to "mad money. >> thanks, jim, it's great to be with you. >> first, condolences. as you said in your conference call, you did lose our one tough mother, who had a pretty good mantra as a matriarch. >> you know, it's unfortunate. and she had a great run. i mean, you know, 95 is a big number she came to work almost every day up till maybe six months or so before she died so her persona and her way of looking at things, how she and frankly i ran the business together, hopefully it will continue and i know that we're going to continue to rely on her, her thoughts and mantra about, you know, it's perfect now, just make it better, for a long time. >> she never incidented on quality, did she >> no, i mean, that's how you differentiate yourself as we've talked before, nobody needs another brand of footwear apparel, there are plenty in the globe to satisfy almost every need what you have to have is a point of differentiation for us, gert personified that as well as the other innovations essentially that we rely on heavily. but our brand is strong, all of our brands are strong. and we're just going to rely on keeping our heads down and working hard. >> okay, so i know that when you're making outerwear that's as beautiful and tough and rugged as you make, it does help to have a couple of cold days. if you don't, it's not top of mind do you think you just weren't top of mind during what amounted to be a pretty warm winter so far? >> well, you know, we talk about this a lot inside the company. because we've been doing this kind of work, making seasonal products, for about 40 years so, you know, if we hadn't been up against a really super cold weather last year, our numbers probably still look pretty good. you have to have cold weather to handle outwear, to make seasonal products that's the reason we have such a strong balance sheet is make sure we're in the business a long time, we've got the capacity to weather any kind of storm or lack thereof. that's how we rely on making good product and having it be available. it does help if the weather's very cold and snowy. >> to some degree, even though you couldn't tell from the numbers, you did have a little bit of a perfect storm that was tough for you. you do a lot of business in china. we have the coronavirus. not sure how that's going to impact you yet you source should in china can you speak to the china problems and china opportunities? >> certainly well, you know, almost any company anywhere, their supply chain goes through china so we're not different from others we do have a bisselling product in china it's medicine angle digits component of our total revenues. and, you know, our first focus on when we're talking about the coronavirus is really making sure our employees and our partners in china are healthy and taking care of themselves. and i can report that they are that having been said, we really don't know the impact of the -- full impact globally because we have china tourists visiting our stores in beijing, in tokyo, here in the u.s., and in canada, and other places in the world. so it's hard to quantify exactly what will happen but as it relates to the supply chain, any country that can build two hospitals in ten days will quickly recover from impacts. and our expectation is that once this settles down, that they'll quickly bring close to normalcy to the business. >> are your factories open >> some of our factories are open you know, when we talk about production that's destined for the u.s., only a small percentage of our total production from china comes directly from china into the u.s. there is a larger percentage that goes globally but the biggest impact is on the supply chain because garments and food wear products that we make all have at least some impact from china production there are factories that are coming back online after chinese new year as you know, china almost completely shuts down during chinese new year, so there's an extend the period of time where we made sure that our employees and our partners' employees were well organized and safe. but some of the factories are coming back online now some are working at home but there has been some movement to open these factories. >> it does seem to me that the times that i've seen warm weather hurt you, not the china part but warm weather, it's always been a time to buy, not sell people like to buy it when it's freezing they should be buying it, right, when you're in there buying with company money, because you know that it does get cold again sometime >> it does and not to disparage the investing community, but when it snows in new york city, our share price goes up. >> so that's typical, god. all right, look, again, sorry for your loss. what a titan she was one tough mother i like that. and that's tim boyle, chair, president, and ceo of columbia sportswear. >> thanks jim. >> buy when it it's warm you can sell it when it's cold but you don't buy when it it's freezing "mad money" is back after the break. datadog has become the modern monitoring and analytics platform in the cloud age. when we started datadog nine years ago, our mission was to break down silos and bring teams together. nearly 9,000 of the world's most innovative companies rely on our platform daily to run their business and delight their own customers. we see a massive opportunity in the years to come, and as we celebrate today's milestone, we are even more excited about the future. congratulations datadog. i like that. it is time lightning round. are you ready? lightning round. ilya in new york >> caller: hi, jim boo-yah. happy birthday. >> thank you, thank you. >> caller: i have a question about facebook >> downgraded today. really said some negative things think about facebook as being this incredible growth engine over the long-term, instagram good, buy it if it goes below 200. we've sold some higher fractional orders for the club i will buy i want to try to buy it back lower. let's go to dave in arizona. dave >> caller: hey, boo-yah, jimmy chill, how's it going? >> the chill man is good, how about you? >> caller: hanging in there a, thanks vm ware? >> i think vm ware is done virtualization was mentioned many times on many calls about ways to make it. data center is more efficient. i think the stock is a buy aid no one new jersey, aidan >> caller: this is cara, aidan's mom. >> oh, hi. >> caller: hold on, here's aidan, he's 15, hold on. >> caller: hi, my cramer, i'm aidan from new jersey. n-corps technology incorporated. >> that's interesting -- go ahead, i'm sorry. >> caller: yesterday i had seen it -- it had done pretty well in the earnings today, i saw it was up around, let me see, a couple of dollars today i thought it did pretty well i wanted to know your thoughts on it. >> i happen this like this business the stock is up huge after reporting those earnings it's gigantic. the semiconductor manufacturing industry you've got a good one. i don't think it's done. but don't chase. because the stock went up more than 10% today how do you like that, a 15-year-old calling. john in ohio, john >> caller: hey, jim. big old boo-yah from the miami of the midwest, cleveland, ohio. long-time listener, first-time caller my dad and i go back and forth about r.o.t. all the time, one of the largest mortgage real estate investment trusts, and they pay 10% annual dividend the company is anali cap - >> no. they have a lot of kinds of pieces of paper, they arbitrage, it's fine, it's done okay. i feel like in the end, i like growth and it doesn't have it. i invest in stocks for growth. let's go to sam. >> thank you for everything you do share your thoughts on adulant. >> i have liked tested measurement, i know it, i know it ramped up and then came back down, i am a -- i would be a buyer right here of letter "a. matt in florida, matt? >> caller: hey, jim. thanks for taking my call. a boo-yah to you >> like that what's going on? >> caller: with the coronavirus fears, do you see a buying opportunity down the road for carnival >> i don't want to own carnival. i think the numbers are too high let the estimates be cut these cruise ships are cruises to nowhere now i am very concerned. i don't want to be involved with that stock right now and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is stop spored by td ameritrade. this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information. some stocks just don't know the meaning of the word quit look at charles river labs crl. the contract research organization that gives universities and bio pharma companies the tools they need to discover new drugs and conduct clinical trials. i describe them as the arms dealer of the pharmaceutical industry when drug stocks went out of style charles river too, trading in the 120s. the pharma complex came roaring back by last night charles river back up to 157. then this morning the company reported a blowout quarter, a huge earnings beat, a bullish forecast for 2020. that's why the stock caught fire surging more than $15, nearly 10% today, to record-high territory. i'd like to think this is a belated birthday present the chairman and ceo of charles river labs talking about this terrific company and the company's prospects. welcome to "mad money. >> always great to be here, jim. >> you're one of the few people i know that has real demand. i mean, not manufactured, but real demand. to the point where you have to do a program called cradle where you're literally expanding around the country, areas like cambridge, areas like south san francisco. why is it that you have so much business >> the drug companies are growing exponentially, biotech companies are growing by the thousands. they have no internal capability and the big pharmaceutical companies are dismantling their own internal capability. so when we set up these cradles, which are these sort of incubator sites, cambridge, mass, we just opened one in south san francisco, we're close to a whole cadre of small growing biotech companies and a few large pharma companies who use our space to do studies, our people work on the studies with theirs it's a way for them to expand their capabilities and a way for biotech not to make that initial investment when they are just starting out and watching their cash. >> i know that the transcript didn't go into this as much as i would have liked would you describe most of these companies as trying to -- oncological in nature? >> i'd say the vast majority of the work being done is in oncology there obviously have been enormous breakthroughs in oncology because of immunotherapy. with the advent of cell and gene therapy, there probably will be more there's a fair amount of work in cns, cardiovascular work, inflammation it's across multiple therapeutic areas. the innovation coming out of biotech right now is really stunning they continue to be the discovery engines for the big pharmaceutical industry and making the world literally a healthier place for all of us. >> i think there are a lot of people because of the coronavirus think, we've got great biotech companies, great drug companies, they can just turn the research on a dime and come up with something that is clearly not the way the pharma industry works, correct >> i think biotech companies are smaller and more focused, tiply working on a single indication so often with a smaller number of people they can move in a more agile fashion a lot of the drug companies are much larger. they obviously have significant breakthroughs as well, but the combinations of the big drug companies often doing the funding and the biotech companies actually doing the basic research is working very well so you're seeing a lot of collaborations you're also seeing a lot of big drug companies not care where the drug is actually discovered or where it comes from, as long as somebody has a target and the pharma company can buy the company or buy the drug or work with them to get it to market. so you're seeing enormous collaborations between pharma and biotech, academic centers as well, and companies like charles river in the middle of it all helping them refine their cost structures, speed up the process of getting drugs to market, allowing them to do more with less our goal is to take a year out of the drug discovery process, which is -- that would be very powerful he would be very proud of that in addition to working on 85% of the drugs last year, if we can get more drugs to market faster, that's extremely beneficial and saves the drug companies billions of dollars in time and money. >> i want to -- again, you put a number in there i think is kind of shocking. you're involved with 85% i mean, that is as close to monopoly as you're going to get. >> well, you know, we're very proud of that number we work -- we've worked really hard to get there. we built this big portfolio of products and services. we're a more holistic solution for our clients. i would say it's our best recruiting tool. we have people that want to work across a whole portfolio of drugs for a lot of different companies. to work for a company that worked on almost all the drugs approved last year lights up our work for us. we recruit people out of big pharma and biotech and academia who want to be close to that you have to think about the fact that we worked on a bunch of drugs that never got to market. >> right. >> that's equally important, an equally important activity that we're involved in by helping them kill the drug earlier in the process. >> okay, so jim, can we talk about china for a sec? you know, when i saw that you have china this rather small microbial detection business, what i worry about when is you mention china, it's really about making sure the operation works. are the -- i wish i were reading this, that the chinese have come to us and said, could you help us solve it? >> yeah, well, i mean -- our chinese operations work really well we have a research model business there and a microbial solutions business with regard to research models, we're really helping educate the whole chinese market on the value of high-quality research models to develop their drugs. i think we can help elevate the whole craft there. and help them move forward in a much more expeditious fashion. they've been using lower-quality research models. so it's going to be a very big drug discovery and development market obviously foe a very large population so we're looking forward to continuing to make a difference in china. >> slepexcellent. a remarkable quarter and a great run. >> thanks, jim. >> when you have 85% of the market, you're going to have good growth margins, make a lot of money for your shareholders, you do a lot of good, charles river labs i have liked this stock for more than 100 points and i'm sticking with it. we ended up creating, as you all know, so much more. peloton is truly a category of one and we're just getting started. now, let's do this. together, we are going further than we ever thought possible. our retirement plan with voya gives us confidence. we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo well planned, well invested, well protected. voya. be confident to and through retirement. the new rx. crafted by lexus. lease the 2020 rx 350 for $419 a month for 36 months. experience amazing at your lexus dealer. lease the 2020 rx 350 for $419 a month for 36 months. when yowhat do you see?itical issues facing our world, we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. stay right there because you don't want to miss a cnbc special report on the ever-changing dynamic coronavirus outbreak tonight hosted by contessa brewer, coming up next i wish i had more, let's say, positive news like everyone else seems to have about the coronavir coronavirus. i think it's making me feel like this china on, go buy the chinese stocks, is not a good idea i think it's better to sell them there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim i'm contessa brewer. it has been 43 days since the world health organization was first alerted to what has morphed into a global crisis the coronavirus has a new name covid-19 they believe it came from a bat before jumping to a mystery host and infecting humans the search is on for the missing link >> this is a common enemy. >> the virus spreads and so does fear. >> taking our foot off the accelerator now could be a fatal