Transcripts For CNBC Mad Money 20131214

Definitely an ugly week, lets look forward and talk about the game plan for next week. This business isnt about the past. Its about the future. Now, we start off next week worried. Worried about the rest of the world. We could be concerned with just our own country. Some of the weakness is because of the rest of the world. The numbers out of europe and china are okay. Im calling them tend tepid. I hope that can change monday. The pmi is coming over the weekend. Along with eurozone manufacturing pmi. Why is that so important . Give the main Portfolio Managers looking for a resurgence of international industrials that are based in the u. S. The profit taking in this has been down right horrendous. Maybe strong numbers from europe and china over the weekend could allow for a nice oversold rally. One that may have started the last hour and a half of trading today but gave up the ghost in the last ten minutes. We hope it see more news on chatter that sprint maybe preparing a bid for tmobile. Like them both. Something my friend david faber said could be in the works many times in the last few weeks. Now, this potential deal would help sprint get heft, which is why its stock ran up too on the rumor. Again, i reiterate, i like both stocks. Tuesday kicks off the last big event before the end of the year. The federal reserves meeting to set policy for the foreseeable future. We want we wont know the results until 2 00 p. M. Wednesday. Its pretty clear from the strong data when it comes to hiring, housing and orders, the fed has a good case for getting less accommodative. Thats what a great deal of the selling thats been going on lately is about. Also, of course, people are liking gains. You know i dont fear this socalled taper like so many others. The fed knows the stock market as well as the bond market. The fed knows that there comes a time when sales and earnings for corporations will be good enough that the stock market wont flinch all that much when it starts buying fewer bonds than it can recover. Perhaps with different leadership of the stock market still. Some of you believe its the end of the world that this meeting is taking on a huge level of gravity and anxiety. Especially because of the economic chaos created by another Government Shutdown because of the potential deal between republicans and democrats. Why im chattering on about the fed meeting, lets take a moment to wish ben bernanke a happy birthday today. Congratulate him for getting the economy as far as he has, certainly without much help from the president or congress. We had two deals this week that remind me of how good he has done. Hilton and aramark, those are two companies that have taken down so much debt you could declare they would have laid off tens of thousands of people if not for bernankes easy money policies. Now, look, we may be in for a real rocker when the fed tapers, but ben has been known for saving millions of jobs that would have otherwise been lost if he hadnt decided to stay accommodative. Yes, he was late and initially complicity. Once he saw how wrong he was, he changed courses radically, and that was genius. The genius that helped us to get the market where it stands. I never mind a guy that admits hes wrong and changed his mind and gets it right. Thats called good investing too, by the way. Now tuesday, jabill. Oh, jabill. This Contract Manufacturing used to be an amazing stock, but not any longer. Now i use it as a barometer of the customers demand, including apple, which i cant correctly talk about because apple wont let do you that. I look for apple to trade off of jbil even if we arent sure how much business jbil is doing. Tuesday is a huge day. Starts out with federal express, which has an had an amazing journey up through the 130s where it went out today. The rallys accommodation of rebounding Global Growth as well as brilliant restructuring and produced some pretty darn good earnings. Fedex is going to give us the overall win. We need to find out how asia is doing. You dont give a peek at internet commerce. Im amazed at how positive the stock has become even if the company doesnt say everything right. While it maybe too much to ask fedex to go higher the owners arent going to part unless it goes big. They dont want to sell and take the gain in 2013. We also hear from General Mills, which has suddenly gone from the best in class in cereal to Brokerage Firms telling you short. Kellogg against it. I think General Mills is marking time here. 3 yield, it doesnt have a ton of upside. Simply because the stock uses a bond market equivalent for a long time. Now were near the ultra low Interest Rate cycle it may end up being sold no mart what. Matter what. We get insight on one of the great conundrums of this wednesday, giving the recovery in housing prices. Why are the Home Builders, why are the Home Builders not doing that well . I mean these stocks were fantastic performers and done nothing since then. Lennar down 9 for the year. When it reports i bet it will be really good. So was tolls. When toll reported earlier this week, and while the stock initially jumped into the red when the managers said the sales had just been okay. These stocks dont seem to have believers left and they are considered public enemy number one when it comes to taper. Be careful if lennar opens up because it could be a toll and head back down. After the close we hear from many executives i talked to at the last months conference regarded as the evil empire oracle. This used to be from so much legacy business that i doubt it can be stocked right now, but i sure dont want to own it in a world where the technology has moved on and away from them. I want you to go to the archives and read or watch just about every interview i have. I dont like meta data which yo will hear from. Thursday brings more food news. This is from conagra. They bit off more than it could chew when it bought world corps. I want to hear things are going well and that could ignite the stock. But not president beforehand. Too risky. Darden, more from being a slow to no growth to an activist dream as they are making a strong case for new management. One thing darden is not is an earnings story. So prepare for another disappointment and then buy it when it gets hit. After the close, we hear from nike, which i think will be dreary, the stock has come down nicely ahead of the report. Plus, alex smith, the ceo, came on and said that his execution lacked his usual precision. I think its bankable. He is one of my bankable 21. I bet will he deliver this time. I think both nike and pier one are buys ahead of the quarter. Remember, this is the day after the fed meeting. Its important. Remember, market on wednesday. Finally we get our chance for terrific trade on friday. The ceo of macys said finish line Stores Within macys remember, he gave them that concession are doing fabulously. Why not take a shot at finish line before it reports friday but after the fed meeting. This would be the day that you would buy some finish line for friday. That i am blessing as a good trade. Heres the bottom line. These are all important important earnings reports, but we have to get through the big bad event of the meeting. Thats going to define the week. Im not denying that. That could make any trade suspect. Any trade, but be sure you have conviction enough to pull the trigger, knowing this meeting could change the direction of just about any stock in the market. Except for perhaps finish line, because that doesnt report until friday. Lets go to annette in california. Caller boo yeah, mr. Cramer. Hey, first of all, i would like to thank you for all you do for us smalltime investors. Because of you, your books, and now your alerts, im starting to see profits in my portfolio. Hey, i cant wait until your new release of your new book comes out. Hey, my stock has a lot of legal issues with dna patents and what not. Its called myriad. Myriad genetics. Mydm. Should i buy it into weakness, hold, or sell it . Boy, you know, you said all the things that i am most worried about. It does have Cancer Research, and Cancer Research is working. As long as you understand its a speculative stock, i will bless it. Boy, ive got to tell you, thank you for all those nice comments about action alerts, my books and stuff. We have a great staff. Thats why i look good, believe me. Never forget that. Nate from texas. Nate. Caller hey, jim, booyah from my university of texas. Fantastic. Whats up . Caller i would like to know what the current transition in the fed how will that impact one of my investments to bso . I wouldnt worry about it. The main thing is the metric you need to worry about is west texas versus brent. This is a play that socalled arbitrage between the two. Theres big glut of oil in this country. They can refine it and sell it to you at the price of brent. In other words, they got a big umbrella between what they buy it for and what they refine it at. I like it. Lots of important numbers next week, but what will set the tone . The big, bad event. Darden gets hit. You buy it. Finish line, bought thursday. Stay with cramer. Coming up, healthy forecast . Metadata solutions harness the power of the cloud to Drug Companies. Its stock soared nearly 200 this year. Can it stay healthy . And, later, market blockbuster. Movie chain amc is set to roll out the red carpet on wall street next week for its public premier. Should you book a ticket, or will this Silver Screen opportunity turn into a Box Office Flop . Plus, smell of success . From french fries to fabric softener, International Flavors and fragrances is the company that puts the aroma in it all. Is it time to take a whiff, or will this run turn sour . Cramer talks to the ceo. All coming up on mad money. When it comes to the Cloud Computing games with turbo charged growth rates, sometimes you have to hold your nose and buy. If the stocks seem but not be ridiculously expensive by traditional valuation metrics, if are you trying to make money, and thats what the goal is all about, then you cant afford to scoff at the moves of these cloud stocks. Especially this close to the end of the year when so many Money Managers are chasing performance and willing to buy anything with momentum regardless of the price, which brings me to Metadata Solutions, mdso. A company i like to call the salesforce. Com of the its the leading player in whats known as the clinical cloud. Being they provide Cloudbased Software as a service, thats saas, and helps pharma and biotech firms run their Clinical Trials allowing them to save money and improve the product drug trials. In a world where the Pharma Industry the eager to cut costs, i think it will get a larger piece of the 50 billion pie the Drug Companies spend on Critical Development every year. Man, the stocks run. Its a real nose bleed valuation even with the 23 growth rate. Metadatas report was fabulous. Stock jumped 21 points to 102 to 123 in a single session. Heres the thing, you could have pulled those negative articles about the valuation or avoid the stock. The last time we interviewed the ceo in early july, the stock has gone some 50 since then. You could have said the same thing in early june. Then it was another 7 run. Can the momentum continue . Lets take a look with tariq shareef. Remember this. This is an expensive stock. I say that because i like it, but i want everyone to know, and he is the cofounder, chairman, and ceo of Metadata Solutions to hear more about his companys prospects. Welcome back to mad money. How are you . Good to see you. Great to be here. I have to tell you, i have to get the cavat about the expense because a lot of people said how could you recommend a stock, jim, what kind of hack have you become . What im saying is i see accelerating Revenue Growth from your company. I look at the total addressable market, and i realize that the opportunity may be much bigger than your current market cap. Thats all i look at. Is that wrong . Jim, you are absolutely right. Our customers spend 90 billion a year developing new drugs and we are going through a massive transformation of the industry, currently, where theres a lot of industry going on and a lot of folks are trying to push productivity and efficiency in their operations. You saw what gillead is doing bringing innovative drugs to market. We help them to get those drugs to market in a safer way, less risk, more quality, and at a lower cost. If we can get them to market sooner, that means a lot more revenue for those companies, so our road is a very long one. Youve got a great slide and a terrific presentation. Mid70s, how much does it cost for a drug to come to market . 800, 1,000 early 200. You can reverse that process. You think you can get it back to what it used to be to some degree . I think we can help Drug Companies get 20 , 30 more increase in overall cost to bring the drug to market. Getting to revenue faster and getting them to patients hands sooner, which obviously has huge beneficial effect for you and me and for all the folks we love. Okay. I think that were going to say, wait a second, what is currently gone wrong . I love this roger quote that we do Clinical Trials that hypocrisy is not comfortable with. Premise software versus Cloudbased Software. Why is one so much faster, cheaper, and better than the other . So its a combination of things. You have a massive amount of complexity in developing new drugs, and you have a lot of process, a lot of safety concerns, a lot of regulation, and so the way drugs are developed takes a long time. Its very expensive now that you have genomics coming on, its getting a lot more complicated. Unplanned Software Just doesnt give you the flexible that you get from Cloudbased Software like metadatas. You are constantly fighting with upgrades, with changes in how you want to run your Clinical Trials because its getting more complicated. They are global. And so we provide a huge amount of flexibility in the software that we develop and deliver through the cloud. You talk about how were early on in this, but you only have 50 of what youre touching, as you call it, 50 of the companies already. How do we know that were so early on if you already have 50 of them looking at this. So our customers, we touch about 50 of all the electronic trial that is are being started today. However, theres an enormous process of how you first develop those trials. If you think about how they evolve in terms of how you run the Clinical Trials and so were probably at a 3 or 4 penetration rate with the platform that we provide for our customers, and so theres so much value that we provide to them that we think theres a long road of adoption ahead of us. You have something a quote in your credit suite technology we help their customers manage their entire process while writing your protocols and you didnt always do that, right . Now you are just soup to nuts . Thats Just Technology that weve evolved over the last three or four years. Why would anyone not want to do it that way or are they locked in . I do know some that work with oracle. You can get oracle in. It is hard to get them out and bring in a Software Service provider. I think part of the growth story that youve seen from us over the last couple of years and that you will continue to hear quite a bit about over the next three to five years is that we are getting them off the Old Technology and on to our platform, but theres another part to the story. So its not just a replacement market, its also a huge Growth Market because were constantly innovating. Some of the things that are changing today in the trial market or in the way drugs are being developed is you are starting to use things like fit bits or activity monitors. That brings us closer to the patient. It also moves us further into the whole health care ecosystem. A big road for us ahead. I know i have to break, but it must also eliminate a lot of the dead end trials. Before they much shorter before they come that is part of the evaluation, absolutely. Every time you come on, you amaze me. Cofound and ceo of Metadata Solutions. Mdso. Sometimes you have to look at the total adjustable market, and make a decision that the market cap does not include the great opportunities and thats the case with metadata. Stay with cramer. Coming up, market blockbuster . Movie chain amc is set to roll out the red carpet on wall street next week for its public premier. Should you book a ticket, or will this Silver Screen opportunity turn in to a Box Office Flop . What a decent day at the end of a pretty darn ugly week. Let me give you something to look forward to, and i know jim cramer on twitter, this is the most asked about stock. Were interactive, so we deliver. Im talking about Amc Entertainment. Its the second largest Movie Theater chain in the united states, which is going public next week. Remember, 2013 has been a bountiful, truly fabulous year for ipos, and i dont think this one will be any different. According to ipo fund manager renaissance capital, so far this year weve had 219 initial Public Offerings this year. Up over 72 from 2012. More important, on average these deals have given you an astounding 30. 5 return since coming public. Thats better than the performance this year, which brings me to this Amc Entertainment, and that is not to be confused with amc networks, the television companys responsible for the walking dead and madmen. Also thats been a good stock, too, and its still relatively cheap. Tonight were talking about phil. Not television. Amc entertainment which will trade under amc has a keen understanding of what it takes to win in the theater business. Business that many clever people have written off as being in decline. Too clever by half. How can the Movie Theaters compete with the likes of netflix and hulu or the rise of Cable Television . Not to mention the increasing cheapness of big screen tvs . Or the fact that dvds are coming out three to four months after the movie hits theaters rather than the sixmonth delay you used to get. Given these headwinds why would you want to invest in a Movie Theater ipo . Amc is not just letting them fester. This is a company thats taking action to stay relevant and keep customers coming back for more. You know what . Its working. Let me give you the rundown. Like i told you before, Amc Entertainment is the second largest movie operator in the country. It has 343 theaters, thats sporting a total of 3,950 screens. The Company Plans to send 18. 4 million shares in its ipo next week. Between 18 to 20 a share. Thats what its advertised at now. Theyre going to use the proceeds from the deal to pay down debt weve heard that many times and invest in growing the business. At the midpoint of its price range, it would be a 1. 8 billion company, and i believe it is absolutely worth owning at these levels. And i wouldnt even blink in the ipo ends up pricing it 22. Its going to be difficult, but if you can call your broker and try to get shares in the amc deal, i think you should. To tell you the truth, i am kicking myself right now for not telling you about this one sooner because amc did something really terrific. They gave members of the Customer Loyalty program a chance to get in on the ipo on a first come first serve basis. Sadly, we missed the window. I own that. Didnt get it right. However, you can still try to get in on the deal the normal way through your broker and even if you get a piece of the ipo it could be worth owning in the after market as long as you dont pay too much for it. I rarely give permission to do that. Before i get you too into the stock, let me explain why i think this theater is worth owning. People talk about how you mountain movie business is in secular decline. With industrywide attendance flat or falling over the past decade, you know what, the story is far more complicated than that. Last year was the single best year ever for the Movie Theater industry . Record Box Office Revenue u. S. And canada. Lets look specifically at amc. In 2010, they had attendance of 188,800 people. In 2011 it was 194. Last year it was 199,000. They are, in fact, getting more people through the doors and more bottoms into the seats. That doesnt sound like a secular decline to me. Now, amc may be the number two domestic theater chain, but theyre number one in the top five largest u. S. Markets. With 34 market share on average across new york, los angeles, chicago, philadelphia, dallas, and amc is either number one or number two in 20 of the top 25 u. S. Markets. Amcs three biggest competitors, regal, cinemark and carmike, and these four players together control 60 of the domestic Box Office Revenues last year. Highest average ticket prices. 19. 17. Thats 4 higher than regal. As well as the highest concession sales per theater goer. Roughly 10 higher than regal. You know how much money they make in those concessions. Amc is also the leading imax player. 136 imax screens. Doing twice as many as the next competitor. According to a piece in the wall street journal, the theater companies, including amc, are building out their own oversized screen auditoriums. Amid the cut out of the equation. These premium large format screens are equal to equal the number of imax ones in the country in the next few months. Thats it. Amc is really getting good at getting people to pay up for tickets, and then selling them, some would say, ridiculously overpriced so days and snacks, and yet they have the lowest return on Investment Capital and the low eest ebida in the group. That tells us that amc if they can get their act together to become a somewhat better run business, then i think theres a lot of room for the earnings to improve. What else . Amc has some really promising initiatives and innovations that could improve the growth. Even in this industry. For example, amc is really ambitious to convert its theaters into more appealing destinations for consumers. In the last two years the companies install electric recliner seats. With leg rests in 28 theaters. I dont know, i think it sounds pretty cool. Even though the recliner setup means 66 losses in theater capacity they have delivered a 91 increase in attendance. Isnt that incredible . These recliner seating upgrades cost a lot of money but to the average is returning over 100 . On a cash basis it pays for itself. Remember, amc has only done this in 28 theaters, and the concept can grow to 100 locations over the next five years. Amc so can you grab dinner and watch a movie at the same time. Thats a terrific concept. If you are looking for, say, adn, which, of course, is accelerated date night. Theyve already got made to order food and drink kiosks in 80 locations, grab and go type marketplaces at 14 locations, 11 full dinein theaters, seatside service. Lounges have a fullservice bar, which i like. Even if theyre in secular decline, theyre doing their best to squeeze the money out of the customers they do get. Now the midpoint of the ipo range 19 bucks. Amc would be at 6. 6 . That is a big discount to regal and cinemark that average 7. 9 . Thats the relevant metric. I think you can pay up to 23 write this down 23 for amc for the stock after market. I could see it ultimately going quite a bit higher as its theater conversions pick up speed. Management has said they start to go public and would yield, i believe, ae bountiful 4. 2 at the midpoint of amcs price range. Thats roughly in line with regals 4. 3 yield and substantially better than the yield from cinemark. Amc is practically held chinese conglomerate. They are not selling on a deal. Thats a positive side. After the lockup expires they can start selling. Roughly thats a year from now. Heres the bottom line. You should try to get a piece of amc. Amc entertainment ipo, and i give you permission to pay up to 23 in the after market. If you cant get the stock at that price, all right, say you missed it, wait for it to come down at a better level. Can i go to evan in kentucky. Evan. Caller bbbbbooyah, jim nice stuttering booyah. You like that . Im thinking Restoration Hardware after midnight got in 7. The ceo left finished today. What are we thinking going up or down from here . This was a travesty. What happened is that the ceo, the ceo left, and i did like him very much. Everyone just panicked, okay . They thought they started saying the earnings were bad and that the inventories were too high. I listened to the call. Everything is on target. I didnt want the ceo to go, he felt he had a great opportunity at lucky brands. I am with you. That was a good quarter. Okay . That was a good quarter. Can i go to ray in arizona . Ray. Caller hey, jim. A greetings from sunny 68 degree arizona. I wish i were there. Caller my question is that with the recent hilton ipo and starwoods stock up in the 70s and i want to know where you see hilton going . To 26. I had the opportunity to buy it at such a good price. I hope everyone got in it. I did my best to be able to say its going to be a good buy. I think theres another four points, and i do believe that hilton its not too late. This is one i would like very much. 26 would be valued the same as hot. Until then, stay long or do some buying. Lights, camera, profit i think the upcoming Amc Entertainment ipo could be a blockbuster. I bless 23. Thank you from Jim Cramer Jim cramer twitter for the helpful constructive comments about amc as opposed to the attacks i have been enduring all day. Stay with cramer. Monday, kick off the trading day with squawk on the street. Live from post nine at the nyse. I mean, come on, people, it doesnt go up every day. It just doesnt work like that. Thank you. It all starts at 9 00 a. M. Eastern. It is time for the lightning round. Are you ready . Steve daddy, time for the lightning round. Start with ross in my home state of p. A. Ross. Caller nice to talk to you after all of this time. Thank you for educating our bumpkins in pennsylvania. Hardly bumpkins. Im a commonwealth member, myself. Whats going on . I have a question about dfs discover financial services. It has a great price to earnings ratio. Its got great earnings per share, how come it hasnt exploded like the other three Credit Card Companies . It is perceived as been an off brand to visa and mastercard. A lot of times you can make money. I think discover is a good company. I want to be a buy buy buyer. Go to shindig in california. I kid you not, shindig. Caller this is shindig from ventura, california. You and your staff are great people and thank you for what you do. You are very kind. After a 7. 5 pull back, it is pfizer on id rather be in pfizer is too slow for me. John in illinois, john. Caller hey, jim, nice to talk to you. Thank you for all the help you give to everybody. Id like know where you see baxter. Great illinois company. Two companies under one reach. It goes to 85 almost instantly. Own it for the split. I go to kurt in new york, kurt. Caller jim. Yo, kurt. Caller midwestern new york bbbbooyah. My stock is pay, pay. I carry that stock over a period of time, and its gotten trounced a couple of times this year. Its up around the 25 mark. Well, last quarter was good. Now you wont have to wait too long because they report next week. I have to tell you, i have been waiting for them to put together two straight quarters in a row that are good, and they have not done that yet. Im crossing my fingers for you sir. Can i go to alex in louisiana. Alex. Caller hey, jim. A big weekend booyah from baton rouge, louisiana. Lsu go, man. Caller i have a quick question for you. Youve been talking a lot about it lately. It was a couple of tough days in india. What do you think about nokia Going Forward . I like nokia. I like the single digit digits that are going higher. I think nokia can go to 10 without a problem because their intellectual property is worth a great deal more. I go to steve in florida. Steve. Caller boo yeah, mr. Cramer. Steve from western florida. I want to start off by thanking you for your sincerity, sir. And go gators, by the way. Sandridge energy, sd. All right. Thats a pure spec. In the best of the Oil Companies they are getting hammered here. And thats the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. I got a condition confession to make. I want my family to love me. Its that kind of unconditional love that means you never have to say youre sorry. Its an affection i know ill never get because it is so pure. So instead, i want my family to love me the way the market loves twitter. The way it loves tesla, amazon and netflix. You thought i was going to break down and talk about my real family. I like that screen saver. This game was just like the auburnalabama game. Its in the consciousness of people. This snow bowl is a game like the fog bowl. This is a game like the ice bowl. This is a game that many people will be talking about, and i was there. Al roker talks about it. He tweeted it and put it on air . Our good buddy from mad money jim cramer there jim cramer tweeting out this picture during the game. He put my tweets on air. Its big. Its a big game. Hike it to me. Hike it to me. Im taking some aspirin because i was concussed. Some guy banged me on the head at the eagles game, it killed me. He got carried away. Hope i never see him again. Now that the carnage of last week appears to be somewhat behind us, i think it is time to do some bargain hunting. One of the International Flavors and fragrances, one of the four main suppliers of freeing rans, food, beverages, and household product industries. I like to describe them as an arms dealer that are increasingly desperate for an age against their competitors. The company has a whole network of laboratories where they describe proprietary tastes and smells. Its sort of a double play on innovation and incredibly Innovative Company thats also key behind the scenes player fueling the competition of its customers. Now lets talk about bargains. At the moment iff is off a 52week high. Its an astounding 41 return since we last spoke to the ceo, and that was only 16 months, august of last year, and its 4 ce cents earnings beat off 1. 18 basis. When it reported five weeks ago. At thats levels iff selling for 17 times extra earnings estimate, and i think it can be a Good Opportunity to pick april stock thats been a consistent winner for the past year and a half. Dont take it from me. Lets go to doug, the chairman and ceo of International Flavors and fragrances and find out more about how his company is doing and where he is headed. Welcome back to mad money. Thank you, jim. Delighted to be here. All right. Yesterday we had the great privilege of being in macys perfume section when we interviewed terry lundgren, and i said when you see these famous people on the bottle in perfume, how are they involved . He said, well, they are very involved. Sir, when you get a tory perch formulation, is that tory birch working with someone in the iff lab to get a fragrance she loves . Yes, in many cases thats exactly how it plays itself out, jim. The celebrities want to be part of the puzzle. They want to endorse something they totally support. Its really been terrific to see how many really want to be actively involved and get, frankly, very keen about the entire process. Now, when you do Something Like that, youve got several kinds of different flavors and fragrances. I mean, is it just trial and error . Do you say, listen, how about this one . This one works. How do you be sure its not somebody elses smell . Well, all of the formulas and fragrances we have are unique. Theres really a mindset which says heres how i want to position the flavor or the fragrance. The celebrities get involved in the fragrances, and identify something, frankly, that theyre personally attached to. Theres a real bond between the celebrity and what we produce with our wonderful perfumers at the company. Okay. Are you ever surprised that some do better than others, or in the end does it come down to marketing and you are just the responsible one for the good smelling formulation . Well, frankly, i think of all of the fragrances and the formulations are really terrific, there can be the celebrity endorsement, there can be the marketing behind it and the distribution. There are a whole lot of factors that contribute to the success, but at the core of it all has to be an outstanding formulation that our perfumers come up with. I think people have to understand that youre a science company. I have been calling you a formulation while some Drug Companies send double digits, a lot of your customers themselves in the consumer Package Goods spend nowhere near the 8 r d of sale sales. You are a manufacturer and a scientist. Is that fair . I think thats absolutely fair. Jim, innovation has to be our lifeblood. Our customers seek that innovation. They come to us for it based on both consumer insights, customer intimacy, and, frankly, scientific knowledge, so we consider ourselves really a Technology Innovation company and all employees understand that is the detriment to the companys success. At the same time, you also partner with a Biotech Company now, a Biotech Company to develop new formulations. This is a rather extraordinary thing that you are actually you are in gene sequencing basically. Well, were in to biotech for a number of reasons. Its security of supply. Its the opportunity for longterm sustainable cost positioning in the product, so biotech, we think, is a significant opportunity, and yes, we have relationships with companies and we look to continue to increase those. All right. Doug, you say in your in one of your notes, you say this is more exciting about our innovative pipeline than in decades. Should we just think of the next three to five years . Maybe thats how you think of the iff. No, we look at iff as a wonderful opportunity in the shortterm and the long term. We have certainly categorized to the next quarter as going to be a good quarter sustainly broadly what we have been doing long term, but we also see that long term, the innovation, has to be at the core. And frankly, we have said our pipeline is as good as its been, and thats the flavor side of the side and the fragrance side of the house. Both r d groups and they are 50 50 in the companys portfolio, they are focused on coming up with innovation, one, two, five and ten years ahead of time. Excellent. Doug, you just delivered for shareholders. Fantastic story, and its not just the last 18 months, its been 18 years with your company. Great to see you. You too, jim. Take care. That is the ceo of International Flavors and fragrances. A scientist that is in many of the thing that is you eat and many of the things that you smell. Its a good stock. Stay with cramer. Keep up with cramer all day long. Follow jimcramer on twitter and tweet your hashtags. Know your metric, people. Last night adobe reported, it looked like it was from hades, they dashd out of the dock based on a shortfall. We owned adobe from a charitable trust. And i didnt want the trust to get hit this close to year end. I dont throw things anymore, guys. Ive calmed down. It is upsetting when one of your stocks is trading down after the close. Knowing that the night and the next days trading are going to be hideous. Wait a second my Portfolio Manager said. Weve been telling people the stock trades off, off of the cloud orders. It trades off of adobes subscription offering that will be big in the future, not the present. Everyone knew that but didnt seem to care and they are selling it down anyway. She challenged me and said they are selling it because they dont know if the earnings per share are not what is controlling. Media jumps all over it. The horrendous shortfall, the big bad myths that made it a disaster when we left the office last night. Sure enough. What we were looking for the subscription cloud orders were far better than we expected. Even better than the highest analysts. You can see those who are selling on earnings were confused. The climb, the crawl up made no sense to them. Because they were using a service that told you what the earnings per share was and didnt hit the consensus, so therefore it meant sell, or maybe they were listening at all, maybe because it was too hard for them, or they would have known the key metric is so much better than it had to go up. It jumps a dollar when they get giddy about the companys success in translating to cloudbased orders. Then it goes up another dollar. The rallys accommodation of rebounding Global Growth as well as brilliant restructuring and produced some pretty darn good earnings. Fedex is going to give us the by far the biggest of the s p 50000, and the almost 20 gainer. Short and sold it in the after hours last night. You know that. Sure, there are cases when things are bad and when the company flushes it out on the Conference Call its already too late. The stock has already been averaged. Thats what happened to cisco which im still angry about, but wait and hear the real story of balance, and its much better than worse in the years of the Conference Calls. Even more important, though, youve got to recognize its the recognition that not every stock is an earnings per share driven stock, even though we talked about it all the time, and in my soon to be released book get rich carefully, i have page after page of but the key metrics that are the real drivers of what must be beat to second a stock higher. These are the whisper bars that must be taught. We know now that the sellers of adobe didnt see the truck that ran them over. They didnt see it coming because they believe investing is as simple as fining out what the earnings per share consensus is and seeing if the company failed to beat it, and then i wish it were that easy. We would you will be billionaires. The hard money, the careful money was made knowing what really mattered with adobe, the cloud subscription owners. Not the earnings per share. Only those who knew how to do their homework can reap the returns of adobe stock. So be sure you know what can impact the earnings per share before you come out with guns blazing. Believe me, you wont regret doing the extra work. If you dont know your metrics, then just stay away from your screen. Youll be beaten to a pulp the way the adobe callers were after this outstanding quarter. At least outstanding in what really mattered. Stay with cramer. Mad about mad money . Immerse yourself into cramers world while you watch the show with zbox on your phone, tablet or on the web. Get sneak peeks. Go behind the scenes and join the conversation. Download the free app today for the ultimate cramerican adventure. Next week, big fan event. The fed. Its all anybody is going to talk about. What i want you to do is be ready for stocks to buy after the fed meeting when they hit the market. Thats when the opportunity is. My trade of the week is finish line if it comes down because of the fed. Lets say theres always a market somewhere. I promise to try to find it. Im jim cramer. And i will see you monday my special can i afford it . Holiday gifts show from high tech. I would really, really, really, would really like to buy a 13inch macbook air. To sweet rides. Ive been talking about purchasing my dream car for the last eight years. [ engine revs ] so, wait, let me just get this right. From dolls. I do have two other dolls, but i really would like to have another. Do you think that this is a need or a want . To dresses. Andy warhol souper dress. Its inspired by his Campbell Soup cans. Before you buy, you have to ask, can i afford it