Transcripts For CNBC Mad Money 20140407

Not worse, and yet on the day when the dow tumbled 167 points, the s p plunged. Nasdaq came in at 1. 16 . The only bright spots were the stocks that go up when were about to go into a recession. Now, i dont even think thats a possibility. No. No, no retail sales are too strong, Consumer Confidence too high. Home sales are not bad, car sales are amazingly strong, employment is growing, albeit slowly, but not so slowly that wield think about a recession. Nevertheless, this is a stock thats now marching to the tune of a selloff, not just in the highfliers, but in the industrials, too and those have held up relatively well during last weeks onslaught and wonder if a miracle of miracles, its taking up every stock up, every stock that i associate with a recession. Buy, buy, buy, buy, buy its a headscratcher, people. How is it possible . First, you must never forget that as big as the stock market is, the bond markets even bigger. Right now at this very moment bonds are are being bid up furiously, sending Interest Rates down, thats not supposed to be happening in this Economic Cycle either with the good news i just told you about. In fact, the opposite is supposed to be happening, as the economy gets stronger which pretty much everyone agrees is happening, then Interest Rates go the Interest Rates go higher, not lower. Higher. As demand for money allows banks to raise the rates and make more money proloan. Their supply and demand for longers too, we know the Federal Reserve has been trying to keep bond rates low forever, and this method had been the tried and true way to get more lending going which will then getmore hiring going, but as hiring increases as it has. The feds pulled back from the Bond Buying Program and the big worry from the pullback or the socalled tapering of purchases, it was supposed to shoot up thus killing the recovery in the stock market, and in a completely counterintuitive way, rates are doing the exact opposite of what theyre supposed to do and thats setting up a vicious reaction and rotation in the stock market which takes its cue from bonds. Please learn that. Thats the first thing i learned the day i got to goldman sachs. Lower Interest Rates, instead of being bullish for more stocks are right now being viewed as bearish for them, thus wholly apart from the horrendous selling tech stocks and one without dividends and without earnings and we find ourselves gripped with an out of control selloff and since they turned the the economy that became clear a couple of years ago. Sell, sell, sell, sell. Why are they selling off . What triggered it . I think its because of engaged money manager group thing. It goes like this, if Interest Rates are going down as they are, then there must be less demand for money. If theres less demand for money then there will be less business being done down the ride. If theres less business being done down the road, then earnings will be disappointing. If earnings are going to be disappointing then why not sell stocks now ahead of those earnings . I know. I know. The lynchpin of this thinking is the decline in Interest Rates if rates are falling perhaps for another reason, namely that theray such a thirst for yield around the globe and the money is flowing here, then the whole Industrial Complex shouldnt be going down. If they cant get Interest Rates in their country, they might come here for bonds. We have so much money sloshing around coming out of equities, a lot of it is flowing back into bonds and the government isnt issuing that many bonds. I mean, wow thats a strange con fewence, heres where it gets interesting. The very same stocks that are recession proof tend to have excellent dividends and those are the ones that give you yield in excess of Treasury Bonds and thats leading the ferocious buying of Procter Gamble. People thought Procter Gamble is not doing well. Its a big position for my Charitable Trust. What a break the trust got today. Clor clorox, cocacola, verizon, at t, all going higher and theyre fulfilling the function of bond markets. Theyre bond market e give lens. People know they quetta i good yield fromma i highquality company after taxes, but thats not the only source of buying power and the same people that might be selling industrials because the economy must be slowing and they make what we call staples and the foods and beverages and the like and the on an ugly day, those who fear that the slow dunn must be lurking issue buying these stocks. Why not . Very few of the highflying techs offer dividend protection. The industrials have advanced so much that they offer scant yield up here and they have to go down a great yield before dividend protection weighs in. The stock profits and the fear of investors losing them. Thats at play, as youll see in a moment there are many stocks with insiders who fear their profits are disappearing and Money Managers who know they have terrific gains in industrials and they want to lock them in before they go away. Of course, if you dont have profits you dont fear losing them which is one more reason and theyre miniscule year over year, and retailers and restaurants and not just the Aggressive Growth stocks and the industrials and hence why ibm, walmart and intel can outperform the s p today. So few people have profits that there are almost no sellers ringing the registers to protect themselves. Whats there to protect . Thats all history. Its the sum of whats happened up until now. What im sure youre asking is, what happens next . Lets not get too negative, okay . Hey, remember the markets are big and lots of people are profits and selling can can be justified even if nothing is wrong. It could be what comes naturally. We experience the selloff with significant proportions at this time last year. Plus i saw a lot of stocks acting constructively at the end of the day and some that rebounded for pretty seriously weak levels and second, earnings season is upon us and tomorrow alcoa reports. Trucking, autos, and aerospace registry and positive numbers could put the whole selloff for the dow industrials. On wednesday, we get the minutes of the last fed meeting and enough fed members say that the economy is stronger that the bond buying will seem ludicrous to those taking them down. Finally, selling can run its course. The latter is always a nice stocks, if there were Something Else thats truly bad for the entire system, let me tell you something, you wouldnt be able to muster a rally in ibm, intel and let alone proctor and pepsico. It would be easy if the market was oversold. We sure dont have that and its not much of a safety blanket. Heres the bottom line. The selling is not being courted anymore to the highfliers continuing the collapse we saw friday. However, that money found a home in bonds and the names and it looks like the the safe havens are safer than ever and there is recovery that can do before it looks to be lofty levels. Dan in minnesota. Dan . How are you doing . Love your show. Tgt from minneapolis, buy, sell, hold . You know what . Ive been looking at target wondering when tlit would go to the level that it was before we had the security breach. Dont you think its interesting that it never did . Some of my smartest friends are saying every time the stock goes to a 3 yield which you saw today, they come in buy, buy, buy, and im with them. Michelle in new york. Michelle . Hello, mr. Cramer. Hi, michelle. Im an individual investor. I feel im at the bottom of the food chain for information, but as a woman i know shopping, so therefore my question is about visa. Is it time for me to sell or should i hold on. First, not to be too in love with what we do here on the show, but if youre not on the bottom of the food chain if you watch the show. If you knew what we did all weekend just for the show, maybe you say im not so much on the bottom of the food chain. On squawk on the street i said enough is enough. If they dont own visa, i agree with you, michelle. Cozy in bonds and soft goods. Well get through this. Please dont get too negative. When you get too negative, guess what happens . It bounces mad moneyityi will right back. Bright future . When you think its a pipe dream, its hard to ignore first solars 25 move this year. Has the sun already set on this rally or are things about to really heat up . And later, playing through the pain . Insider selling, a flood of ipos and a pessimistic earnings outlook have the markets in the red, but is relief waiting in the wings or is it time to throw in the towel on certain stocks . Cramers got you covered. Plus, the big deal. Malik rocks biotech buyout is shaking up wall street sending pharmaceuticals skyward. Find out what this deal could mean for the future of this biotech when cramer talks exclusively with its ceo. All coming up on mad money. 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 . Ed this mad money. Cnbc. Com. Aflac. Aflac, aflac, aflac [ both sigh ] ugh you told me he was good, dude. Yeah he stinks at golf. But he was great at getting my claim paid fast. How fast . Mine got paid in 4 days. Wow. Thats awesome. Is that legal . Big fat no. [ male announcer ] find out how fast aflac can pay you at aflac. Com. Suddenly has a voracious appetite for value. So when companies that represent real value get tossed out during a hideous selloff like we had today, the proverbial baby with the bathwater, you have to think back and think about buying them on their weakness. Thats why tonight i want to introduce you to a health value name, a value stock in the last place you would think to look for one, first solar, thats right, it trended up 290 before the great recession, now represents unquestionable value. I have lost my mind . First solars rallied 24 year to date and more than doubled 158 over the last 12 months and still trading at 7. 2 next years earnings estimates and more important, this is a very Different Company than the one that got put through the meat grinder three years ago. Its the best of breed player in the space. Its the manufacturer of solar modules and its provided turn key Solar Project solutions with everything from Site Development to planning, construction, operating management and even financing. The key for first sole are ar is the analyst. Last year the stock soared after the spring analyst presentation and when the latest analyst reernld just last month on march 19th first solar rallied 21 in the single session and very positive news and i would not be discouraged by that spike. First solar spiked and the stock went on to double since then. We have very encouraging numbersa the this event. The cost to make the solar modules could decline for 63 cents down to 25 cents per watt in 2018 and it could be worth 15 billion in revenue through 2015 and its become part of the backlog. First solar gave Earnings Guidance for 2015 and 16. It can generate 25 per share in cash. Even at todays pullback and they talked about spinning off a yield co vehicle. I like whats happening here. Dont take it from me. Lets check in with jim hughes and find out more about where the company is heading. Mr. Hughes, welcome back to mad money. I gave a prolonged background because people dont understand the first solar is not what it was a couple of years because youve changed the way the the company works. Weve tried to transition the business in the last two years. There were a lot of changes in the solar industry. We went to a fully vertically integrated Business Model focused to provide the complete solution to the customer and thats allowed us to appeal to a larger number of customers and we vereinvested in our technolo and our technology has gotten better in the last few years. Lets talk about that, and you talked about how your technology is cheaper than silicon, but it seems like that you guys have caught up and maybe are about to pass in terms of the power per sell that you generate. The conversion efficiency said the ultimate entitlement of our material is much higher than silicon and were now beginning to prove that not only in the laboratory, but were taking those Research Results and were pushing those into our production modules and thats what got people excited on analyst day is were beginning to show the same results that we showed a couple of years ago. Im going to read a quote and i want you to explain it to people. Earlier this year we announced a truly amazing result and they were fairly blown away. We told you we would take last year and we beat the previous world record by thirdparty certified. What does that mean . What that means is that weve come up with techniques and materials in our laboratories that will produce a researchl and when you take that Research Sell and turn it into a full production module with the yields that you would get in production its not going to be that high. Okay. But we have made tremendous progress and we basically committed to a road map that says within a few years well be approaching 20 at the nowed you will level which are efficiencies that two years ago no one would have thought about. Does that mean youre competitive with all of the other fuels without subsidies . Thats correct. Thats very significant. Thats very significant. Youre beginning to see utili utilities write reports against gas, and coal. We had david crane from nrg and he was talking about how the model is distributed and the model that you have may be the oldfashioned model, putting a panel where theres 50 million structures and in this year, you seem agnostic and you say if people want to do that they should have choice. Thats correct. The solar market will be the next market in effect of 50 giga watts. The distributed market will be a huge piece of that and we will sell into that market, while its the oldfashioned business it will be a very large, Global Business and thats our core strength and bread and butter. One of the things you made clear is maybe you do it better than anybody else and maybe you should retain some and spin off a growth vehicle they think we all like. We saw nrg do it. Could you do a similar thing . We could. We continue to study that as an opportunity. We havent make a decision. If it looks that would afford us a greater cost of capital and greater affordability, we would do it. Its go good for the industry whether we do it or not. One of the things you keep highlighting in this is you have this joint venture with ge and our viewers would love to know exactly what that joint venture brought for you . Ge was pursuing the same technology that we were, the caltel technology and they have a tremendous Research Staff and they have a tremendous Research Facility and theyve putta i lot of effort into research and theyve not committed to largescale production. They decided it would be a positive and we agreed to combine their research with our research and our production platform. And the combination is the road map that we outlined in our analyst day and we think its very exciting and its been a tremendous acquisition for us and we continue to work on new Market Opportunities with ge, and we think its been a great deal for them. Do you think were in a world where were going to begin to see at least in our country because its warmer than germany. That were just going to presume that the first course of action if youll add any sort of you poor under grid and is there going to be that peak and not base . What well see over time is solar will broaden its penetration into the grid. The initial penetration will always be that peak. Over time, storage will become economic. That will allow us to penetrate further. We build high acdc ratio of plants that shoulders up the power and allows us to penetrate even further and as we move forward and Storage Technologies advance, youll see the penetration grow. Last year, you gave a projection and you didnt meet that number, but you did say that you will get away from the traditional quarter to quarter. The path you laid out, you feel really confident about that now so when we have you back next year you feel good . One of things we tried to stress at our analyst day is well present the same information next year and well hold ourselves accountable for the promises that we made. Thank you to jim hughes, the ceo of first solar. This is an inexpensive stock and you usually dont find that in the solar space. Stay with cramer. Coming up, playing through the pain . Insider selling, a flood of ipos and a pessimistic outlook has the markets in the red, but is it waiting in the wingers on is it time to throw in the towel on certain stocks . Cramers got you covered. And later, get your Shopping List ready, cramerica whether youre just starting out or looking for lowdollar stocks or setting your sights higher, cramers helping you find the the most bang for your buck in every price range. The top stocks for every budget are just ahead. All coming up on mad money. Gunderman group is a go. Yes not just a start up. An upstart. Gotta get going. Gotta be good. Good . Good. Growth is the goal. How do we do that . I talked to ups. Theyll help us out. New technology. Smart advice. We focus on the business and they take care of the logistics. Ups . Good going. We get good. Thats great. Great. Great. Great. Great. Great. Great. Great. Great. all great i love logistics. Whenever you have a selloff as dramatic as this one, its what you see in many of these nasdaq names you cant just dismiss it as something foreign ministerial and something wrong with the actual companies. There are too many stocks that are going down that have to be explained here because the the sheer ferociousness of the decline i find extraordinary. It is so extraordinary that ive only seen this sort of thing once before and thats after the nasdaq peaked in the year 2000. No the other david faber and i got in on the floor of the New York Stock Exchange and he raised important points about how the twoier as arent necessarily the same and this time its not like back then and we both lived through it and know there are major differences and he made good points and i would leave it that at, but the wonderses of social media led me to conclude, there are too many people that want in, want to buy all weekend so let me go over exactly what i saw today and friday and what makes me so reluctant to be aggressive about these newest nasdaq stocks, even as you put in a bottom, and my Charitable Trust would buy some. First t takes a village. Lets go over the cast of characters that would cause us to arrive at a point, and give few of the institutional Money Managers seem to want to take advantage of the decline. Buy, buy, buy it is only the big boys that have the power to stop the debacle in its tracks with the sheer force of their buying which is as you can see, other than in rare cases near the end of the day, theyre clearly not doing so lets go back in time not to 2000, but to 2011 to 2013. Back then we have a lower growth environment and kept hearing about how the fed has kept rates low and thats created a rush to own individual stocks with the alternatives and thats still working and the only bright spot in this hideous day and theres the endless borrowing of money for companies to Fund Shareholder buybacks and perhaps less talked about during the lower growth environment and youve also seen the return of the momentum managers who seek to own buy, buy, buy, buy only the highest Growth Stocks regardless of whether or not the actual companies are profitable. These managers arent as sensitive about earnings. They just dont care about earnings growth, eps. You know what they care about . They care about growth, any growth theyre willing to buy companies with just terrific Revenue Growth and operating cash flow growth, but they dont care about eps growth. They treat executives when they say look, we could be profitable, but that would be a waste of money better spent on growing the business as being correct. Correct in the way they spend. You may think this mind set is silly, even stupid, but again, consider the trajectory of netflix, tesla, its better than almost any other stock out there that embraced the concept of never sacrificing Revenue Growth and only saltered profitability and the same goes to the Cloudbased Software Service Stocks that were so well before they started flying off a cliff just last month. They were taking them ever higher every time they heard the companies had beaten and raised estimates. Theyre an integral part of the puzzle of whats going on here now. The bankers arent stiped. The Investment Bankers who create deals. They see what these momentum managers want and the Service Companies that do business in the cloud. Given that there is a revolution going away from Client Server and think about as desktop to a Handheld Company that connects to the cloud and think about when you pull it down from your iphone and itunes. There are tons of Companies Taking advantage of the seachange and medical records, travel, prescriptiondrug sales and medical insurance and Human Resources and tax preparation, and payroll processing, one after another, after another. Many seemed dupe ldupelicative there were half dozen more in the pike just this week and they all sound familiar to me and similar. As long as the supply of companies was limited the momentum managers would have the same every bit of good news and, and as always these Companies Come public, there are simply too many of them for the momentum managers to own. Plus the managers are n getting enough money. Theyre either upon swaing out of some to go into the ipo market for the new software and Service Names or they get preferential treatment on the deal and they ask to buy more in the after market or theyre pulling back entirely altogether and theyve begun to incur serious losses and they fear that the money will stop flowing their way. The momentum guys, they were doing fine until two other issues surfaced. The first is we have some actual growth in the economy which opens up the possibility of much higher earnings of traditional techs and the industrials. Hence why theyre rallying so hard even as the newer ones get crushed and thats the relative performance issue and one that took a break today for some stocks and have reemerged erary early. For last years crop of ipos and the insiders are cashing out. Look at the losses that theyre experienced on paper in the last few weeks. Hey, make matters worse, brokers are putting together baskets of these cloudbased stocks and allowing insiders who are locked up in their own companies to short the baskets of others as a hedge against their own losses. Something ive only ever seen once before again in 2000. That kind of selling was at the root of last weeks debacle and short selling hedge funds are availing themselves and they did today all day and thats a way to short the group and lets put it together for you. There are too many ipos now chasing too few dollars and either because the momentum funds are not getting money and theyre shifting focus to traditional stocks and they have the potential to show big gains off of an economic upswing and they took a pause on those, though. At the same time the ipo insiders are dumping more stock on the market and few Money Managers have the appetite or more importantly perhaps the cash on hand to buy this additional merchandise. Thats why they pass those stocks that they would have loved to buy much higher just a month ago. On top of that the neophyte buyers and the people that like twitter and the website, and they buyity twer the stock and theyre in total panic mode. The people ator feed, its tough to read and you know exactly whats happening. Its a nasty situation. Let me give you the bottom line. Trying to be both sichl thetic and pragmatic here. Until insiders find levels they wont sell at, the ipos get settled or more money comes in because the economy falters or we finally get to levels where the selling stops and i dont know where that will be, i can expect theyll be selling into every lift as there was in the afternoon today. This nasdaq decline is not just about the fundamentals. By the way, the fundamentals are pretty darn good. Its about the mechanics of the market which means these stocks will keep getting pounded about the selling runs its course. I can speak to tom in missouri, please, tom . Booyah from the home of the st. Louis baseball cardinals. Theyre darn good. Whats up . Firsttime caller. I appreciate the time. I got out last a little bit too soon on stock symbol clqr, concur technology, is this on sale . This is a great question and it cuts xa accountly what ive been talking about which is are we going see a rebound in some of these stocks . And i think the answer is we will if we somehow see a cessation in the insider selling. This stock has insider selling, but it did honestly, this one made a comeback today. I think this one is in better shape than other, but im not going to tell you to go in there and buy it aggressively and that would be foolish of me even if i do like the company. Lets say hi to norm. Hi, jim. This is norm. I want to wish you the best. Im calling in regard, i like to play a little bit and i have some crazy money to play. Okay. And i really favored into the Railroad Freight haulers and i had the nsf and Warren Buffett kicked me off of that and i bought kfc and Norfolk Southern about two and a half years and did good by it, but ive been having csx stock for about two and a half years now and unlike the others, although theyre one of the seven big railroads using much freight, why are they so low in their stock compared to others . Is it a gold mine im sitting on waiting to blow up and or should i sell it . I wouldnt sell it. He told you what Norfolk Southern said, obviously this was more laden with coal than any of the others. I would not sell csx even though ive seen two downgrades in the last 72 hours and i think those downgrades will be misplaced and its a buy, not a sell. Its not about the fundamentals. Theyre quite good. Its about the mechanics of the market which is why its so difficult to say its over. I saw some stocks bottom today. Lets see what brings tomorrow, but you cant be aggressive. Stay with cramer. Tomorrow, kick off the trading day with squawk on the street. Live from post 9 at the nyse. Its entirely possible that we get to some level where actual buyers come in. It all starts at 9 00 a. M. Eastern. Eastern. It is time it is time for the lightning round on cramers mad money. [ indiscernible ] play until we hear this sound and then the lightning round is over, are you ready, skeedaddy . Its time for the lightning round. Lets start with nate in ohio. Nate booyah from ohio. Nice diana shipping. Ive gotten lukewarm because its fallen from 1800 to 1100 and this is a freight company. By the way, once again, Nordic American Tanker has another 10 million shares. Theyre killing us john in florida john enqana, like ultra petroleum, like devon, its going up here and it hit a 52week high but it has higher to go. Nat gas price are going up and its playing with oil and gas. Craig in pennsylvania. Craig . Hey, booyah, cramer. How are you doing . How about you, there, partner . I fell in love with this stock, just like i fell in love with ecolab. Not that i want to fall in love with stocks. Its just a piece of paper, but youve got a real good stock there. Hospitality, marketing, its just a plain old maintenance hospitality business. Its a service business. I love it. Ive always loved it. You have core sense. Lets go to tyler in new jersey. Tyler . Booyah, jim. Yes, booyah. One thing i want to ask you about is bioscience peps ive been following this Company Since they went public in last year. This companys doing quite well. Its doing quite badly. It is more of a real company. This is a clinical stage biotech, and you know what . In the pet session sxifridea, a wisconsin. I want to give you a booyah from myself and my brother. We are big fans of the show and you. Just wondering your thoughts on mgic. I like radiant, and i prefer genworth. Carl in vermont . Carl. Yes . Hi, jim. Mega booyahs from vermont from the Green Mountain state. All right. From the ski state. Hey. Firsttime viewers, longtime caller scratch that. Reverse it. Anyway, im calling about royal bank of scotland, rbs at 11. It stalled here, but i like the breakup value. Santander is a better value, though and that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by t. D. Ameritrade. Coming up, the big deal, Mallinckrodt Pharmaceuticals buyout is shake up wall street today sending shares of Questcor Pharmaceuticals skyward. Find out what this deal could mean for the future of this billion dollar biotech when cramer talk exclusively with its ceo. Its ceo. Five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. With the mobile trader app. At your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. It was a big dole announced today. Just this morning we found out that mallinckrodt is buying Questcor Pharmaceuticals for 5. 6 billion. Mallinckrodt after initially rallying got dinged on the news that its down 1. 58 and not that bad considering the overall mark. I think this sort of deal may be exactly what we want to see from a recent spinoff, particularly one that is favored tax status, excuse me, because its domiciled in ireland and thats an ultralow tax haven. Im all about breakups as a way to unlock value. One of the way it works is by allowing companies to get spun off like mallinckrodt to get focused on its own business and make smart acquisitions. Mark trudeau, the president and ceo of Mallinckrodt Pharmaceuticals. Welcome. Have a seat. This is a little unexpected and a bit controversial as we know from the conference call, but first, this givious access to a very important drug that people think could be good for lupus, als, Rheumatoid Arthritis, and at the same time it also gives you tax benefits. Would you have done this deal even just because of the tax benefits . Absolutely, jim, this is a product that we believe has Significant Growth opportunities and moreover, its complimentary to what we do as a business. Our focus has been to build growth platforms and focus specialty tarm farms. We believe the questcor acquisition and actar enables us to fully develop our Growth Opportunities areas that where we do have expertise. You did go over how theyre created with the irish domicile. It makes complete sense for us because the product and the company have been growing very, very well. The product is very profitable and the company is very profitable and it adds size and scale to our business as well as growth and profitability as well as robust cash flow. Okay. I hear you, and i know that this is a this could be a wonder drug, but i also know that there was a reuters story and an Ongoing Investigation by the justice department, how can you get comfort with an Ongoing Investigation. For an acquisition of this magnitude we did significant Due Diligence across the questcor business. We have expertise in the manufacturing and rnd of highly regulated complex substances and we have our own internal expertise, but we didnt feel that was enough. In fact, we cruised a variety of Third Party Experts to really look at the entirety of the questcor business including the legal, commercial and Legal Manufacturing and rnd issues and moving forward with this transacti transaction, we think we validated the fact that what we see is what we have. If there is something aggressive that comes out by the doj, do you have a chance . Because mallinckrodt is a pristine company, sir. Its been around for a hundred years and this is not a company that i would associate with a company that could get in trouble. We believe weve been able to have a longstanding history. Definitely. Its something that we value explicitly in our company values. So it was important for us whenever we do an acquisition to make sure that any of that acquisition is consistent with what we do. We believe that acquisition, this acquisition fits that. Because youre not worried that there could be something that comes up and if there is a no problem that you think that there could be anything material that would be raised that would make this so the deal doesnt happen. We believe weve done outstanding Due Diligence, very thorough and very comprehensive and we feel quite comfortable with the acquisition. You seem to be pretty comfortable that theres nothing on the horizon because its a difficult drug to make this actar. That was one of the unique things about actar and its a naturally derived product and virtually impossible to replicate unless you replicate exactly the manufacturing process. Questcor owns the manufacturing process and we think its very difficult if not impossible for a Generic Product to come in and replicate what actar does. Etna said it would no longer reimburse on illnesses that this drug could be. Has that all been resolved . Because if you have a lupus, als or Rheumatoid Arthritis drug and diabetes, nephropathic drug. This is a lowvolume product and its in the category of end offer indiseases and physicians are going to be looking at prescribing actar for some very devastating medical conditions and in fact, as reimbursement goes each patient is typically reviewed before the product is reimbursed. Right. So were quite confident that reimbursement is in a very good place and that was part of our Due Diligence and questcor has actually stated that reimbursement continues to be strong for this product. Last question. How is the cadence deal because that looked like the beginning of the acquisition street. We just closed to the cadence deal and we think thats a very important acquisition for us and it builds an additional platform for growth in the hospital marketplace and we have a platform for growth that we know very well in the therapeutic area and acetaminophen. We know the acetaminophen molecule very well and we know the pain space. No one knows the pain space better and youre the best there is in that category. Exactly. We think thats a very positive acquisition and thats going very smooth. Thats mark trudeau, president and ceo of Mallinckrodt Pharmaceuticals and the stock is exceedingly cheap and it seems like its doing everything right. Stay with cramer. Stay with cram. Aflac. Aflac, aflac, aflac [ both sigh ] ugh you told me he was good, dude. Yeah he stinks at golf. But he was great at getting my claim paid fast. How fast . Mine got paid in 4 days. Wow. Thats awesome. Is that legal . Big fat no. [ male announcer ] find out how fast aflac can pay you at aflac. Com. All this week well be counting down the the best of the best and thats according to the actual dollar amount of the stock. Here is the sequence. Today wer pick the favorite stock that trades under 100. Tomorrow weve got your 100 to 500 bargain. Wednesday well know the winner the in the 50 to 100 space. Thursday its 1050 and friday well get down and dirty with our favorite stock under 10 for speculative friday. Ive been talking about the collapse of momentum stocks for now feels like ages although its been pretty recent and one of the momentum names has been priceline, and im saying priceline is now my favorite stock over 500. Why this one . Because unlike every other momentum play, this one when compared to the other stocks in the s p 500, and the momentum cohort is darn cheap. In fact, its a total anomaly that trades at 19 times earnings with the 19 growth rate. One time its growth rate and no other momentum stock trades that cheaply than i have on my list, and i look at dozens of stocks. Where the seller seems to be everywhere dumping stocks that trade at high multiples to sales, priceline is a good, oldfashioned growth stock and one that katers to the cost conscious, trader and its part of the great winners of all time, and since mad money began over nine years. Its nice. We mentioned it as a big winner and its away from travel agens and people book their trips online worldwide. 85 of the bookings are from overseas and particularly europeans and that gives it more room to grow. 90 comes from hotels which is a much more lucrative business than selling Airline Tickets and pricelines brilliant and im calling it the 1. 8 billion acquisition of kayak in 2012 is proving to be a game changer because kayaks referrals generates business for the company. These days, priceline is known as an amazingly lucrative company and its not regarded as cheap because of the darn 1,000 plus share price. When youre thinking that priceline is too expensive because it trades at over 1,000, you should always remember that the dollar amount is actually irrelevant. Stocks we compare here on the show in an apples to apples bases which is why we use the price to earnings multiple comparison and on that bases, priceline is the highest growth stock i follow. Priceline was one of the original dot comes. I was deeply suspicious and skeptical perhaps because it was growing like a weed, but it wasnt making money and pricelines visionary founder who is using the web to drive down prices and taking a cut in return. Visionary rolls off the tongue pretty easily now, but at the time priceline was just one of Many Companies that said the opportunity was too great for profitability. Turns out jay was actually right. Riceline unlike amazon, has developed into one of the companies that was launched in a bygone era and now its the 500 cohort. We dont know when the selloff will run its course and we do know if it would split 10 for one the vast majority of you would think to buy the stock into the current weakness. If it help, meantally divide it by 10 and even though its a well above average growth rate that might accelerate this year. Thats right. As the its core European Market regains its footing and holiday takers flood to the frugal alternatives for airplanes and hotel bargains galore. Tomorrow night, the countdown continues with our favorite 100 to 500 stock so please stay tuned. Tuned. Geico motorcycle. See how much you could save. Gundyes n group is a go. Not just a start up. An upstart. Gotta get going. Gotta be good. Good . Good. Growth is the goal. How do we do that . I talked to ups. Theyll help us out. New technology. Smart advice. We focus on the business and they take care of the logistics. Ups . Good going. We get good. Thats great. Great. Great. Great. Great. Great. Great. Great. Great. all great i love logistics. Narrator in this episode of american greed. Ride em, cowgirl Rita Crundwell appears to be a humble, smalltown civil servant. But shes living a double life as a World Champion horse breeder. Its a deception that comes at a huge price. Everything that ive learned about showing horses, you must either be independently wealthy, or youre stealing the money. Narrator when this cunning comptroller diverts more than 53 million of dixon, illinois money into her horse empire, she leaves a city on the verge of collapse. People are gonna have to lose their jobs to balance this budget. For what, a horse . For a trophy . Are you kidding me . Narrator and later. Staten island native joe mazella wants to help friends and neighbors