Economy misquarters and weaker sales and potential ebola outbreak. Sales are back. It is mixed, with the dow sinking and the nasdaq gaining, they help consolidate the gains from last weeks rally. Now, the two deals we had today were typical of what were seeing before at least the pause in october. Lab clinical Testing Company that tests new drugs is a logical Extension Company for one thats tapped out for growth. It rivals letter q, my favorite, and par xl which has a terrible quarter. This deal rekindles the things going on in the health care space. The companies cant keep to help but merge. You know what . I would take the 25 gain and run. Sell, sell, sell. Its the other deal. The french advertisie ining fir buying sabian. We have to drill it down here. When i read about this, i was a bit mystified. I knew sapient as a smaller scale sape. The division called sapient nitro. While the publicist was nicked, i can see the synergies and recognize how it can make publicists relevant in the digital world. I think this deal explains why this market likes social media and marketing plays and why the stocks of google, facebook and twitter remain undervalued, despite various missteps and execution issues. [ buzzer ] that have kept them from rallying of late. Let kevin spacey tell you. When i was rooting around the website, i came across a speech he gave about the relevance of content, most specifically, story telling. The notion of the speech was brilliant, as is spacey. I guess that was something i should have figured. He talked about how all people want to do is hear and see great stories. They dont care how or when or where they hear them. They want to be engaged and be inspired. If you dont give it to them the way imax theaters rebelled against netflix, you get past the freedom of watching what you want to watch and when you want to now. Spacey said there is an explosion of story telling right now. Its happening faster than anyone can believe. He picked two examples that hit home as we try to figure out how to value stocks. Rather than being data consumers, people are generators. Each Facebook User produces an average of 90 pieces of content each month. Original content. That adds up to 30 billion pieces of new content shared across all platforms. Thats an outstanding number of stories. Spacey talked about how there are 2,900 days of worth of video uploaded every 24 hours on youtube. More content in one months time than you find in all three Major Networks over 60 years. Its what he called a torrent of content. What does this have to do with sapient . They know how and where to show the second story. How about this. Whole foods reports wednesday its trying hard to distinguish itself from the other guys that have inundated the market. They hired sapient. According to ad week, they created a digital screen on a wall that shows produce growing in the fields of six local farms that supply the store in the south for whole foods. Its a noncliche way to explain how whole foods is a local experiment. Its working. Cocacola hire sapient the tell stories, and video games use them to show their video game enhances. This doesnt amount to a hill of beans if it cant translate to sales. Thats cynical. The whole process of advertising may be too cynical for the average user these days. People trust stories that are presented in novel ways that break through the clutter created by the networks but, most importantly, by facebook, twitter and other websites. I think the acquisition is a defensive move for publicists. The companies i follow are all desperately trying to stay relevant with young eer people, and younger people dont care where the stories are. They want good content. The advertisers are figuring out what the rate of return is when spending with facebook or google, and the advertising firms dont have the expertise to create the stories that can be viewed on screens. An ad firm like publicist has to hire or buy sapient and then figure out what to do with the rest of it. This brings me back to what i care about, facebook, google and twitter. All three have difficult reporting periods. Google disappointed with the desire to hire like bad to make the best bets in the future. Didnt matter the sales when you back out the cash. This prefers cheap layoffs over expensive hiring. Then came facebook, which deemed 2015 an investment year. Wall street was hoping for a harvesting year. Sell, sell, buy, buy. When zuckerberg started talking about the longterm need to have franchises, he might as well say he intended to start a bonfire and throw dollars into it and see how many catch fire. Finally, theres twitter. Twitter is like publicist before sapient. It knows something is out there and content is being created by individuals, which costs twitter nothing. Management can only stare in wonderful that every tv personality promotes twitter. Twitter is known for two things, staff turnover and am bbiguity. The staff turnover subtracts billions. Publicist seies the writing on the ball that it better find out how to tell stories in the new world. We should own the stocks of the new networks with the billions of stories and videos created, not by the advertisers but regular people. I wish google, facebook and t t twiter knew how to tell its own stories. Maybe they cant define who they are right now, and thats why the stocks are stumbling. Particularly twitter. Maybe they need a sapient to tell their story. Perhaps one or all three of the companies should hire kevin spacey. Now, theres a guy who can tell a story, which is what all three need to get their stocks going again. In a world that favors traditional old fashion tech where people avoid the companies with bigger grand schemes that may or may not make money some day. James in california, james . Caller how is it going . Booyah, cramer. Booya, back. I know they acquired a Solar Panel Company this year. I was wondering if thats a good idea, to keep them long term. Long term is better than short term. The stock is volatile short term. They want to put a panel on everybodys roof. With energy costs coming down, someone might say, you dont want to be in solarcity right now. Thats what youre fighting. Zach in new york. Caller booyah. Westchester ymca. Whats going on . Caller want your take on how valspar is stacked up against the big players . Why bother . Its up a lot, and i like ppg. I like all the paint companies, but they have the mexican acquisition that will be helpful. Lets go to ohio. Stephen . Caller quick question for you. Sure. Caller im calling with Capital Funds from a university where a large cap opportunity to manage the school is dominant. I want to talk about cerner. It has an extensive backlog. Is this mispricing . Its a top quality company. When i was doing it the other day in cardinal, i was thinking of including it. Its too it oriented. I would never i think it could be a great Portfolio Holding for someone who wants a health care stock. Google, facebook and twitter are actually undervalued. Maybe with these american internet dominated, they need to tell their own stories. Maybe their stocks could get going. Its a dirty business, but is it time you do dumpster diving . Ill talk to the coe of waste mack. And allibaba hit new highs. Should you be gaga at these levels . Plus, the fight against Infectious Diseases continues. A Brand New Company on the front lines of stopping the spread. Stick with cramer. For over 60,000 california foster children, the holidays can be an especially difficult time. Everythings different now. Sometimes i feel all alone. Christmas used to be my favorite. I just dont expect anything. What if santa cant find me . To help, sleep train is holding a secret santa toy drive. Bring your gift to any sleep train, and help keep the spirit of the holidays alive. Not everyone can be a foster parent, but anyone can help a foster child. If you want to own a nice consistent company with a strong did i ha dividend and management team, look at Waste Management, wm. This sleepy stock which ive liked forever is the largest in america. A nice recycling business. It yields 3. 1 . Higher than the return you get from the treasury at the moment. Waste management reported last wednesday the company had strong results. Beat off 68 cent bases on a higher than anticipated base that fell. The management expects to get the highest level. The company saw robust pricing. What gets me excited about the story is the value of creation element. Three months ago, Waste Management would be selling the business where they burn garbage for 1. 49 billion. The same time, the business announced a buy back, most of which has been spent. If they cant find takeover targets, theyll buy more stock. Waste management has given us a 7 return since we spoke to the ceo at the end of july. This is the kind of stock that rallies slowly and steady. Lets take a closer look with the president and ceo of Waste Management to find out his companys prospects. Welcome. Hi, jim. Pleasure to be here. This quarter seemed to be all about discipline and execution. Discipline and execution can produce nice things, right . No doubt about that. Weve done a lot of work in the last ten years to get the right team in place to drive that kind of execution. You know, jim, these things dont happen overnight. Ill tell you, i wish id done it faster but we have the right team right now doing the right things. One of the right things is to pass up on business, isnt it . You know, look, we think we should get our fair share of volumes but were always going to be a more price dominated company than volume. We always like to say that if you lower the price of trash, people dont create more trash. This is not like a consumer product. If you lower the price of tvs, people buy more. They dont create more garbage, which means youll be better off making sure you can cover your inflation with price and get your fair share of volumes. Thats what we plan to do. When i saw the gdp number and knew you were going to be on the show, i am still amazed were not back to where we were in terms of trash creation in 2007. What are the elements that would make it so we could return . You know, jim, its really interesting. The last downturn, we really saw what drives Waste Managements business, and that is housing stocks. When you think about it, every time you business a house, you put a can out front to build it. When you build 100 houses, you have to build a Grocery Store and commercial businesses to support the houses. Then with new houses, obviously, you have new residential customers. We get a threeforone pop every time they build a new house. What youve seen in the recovery is it hasnt been a housingled recovery. Ive always said if we can get three successful years of one million plus housing starts, thats when youll see the volumes come back for us. This will be the third year in 2015, and we expect to see the commercial business, Small Businesses like dry cleaners and restaura restaurants, thats when we see those pick back up. Were thinking in 2015, well start to see our volumes improve. One of the things youve taught us is that the urban areas want you to use natural gas. Youve had a fabulous natural gas business. Youve been a pioneer. The lower gasoline prices are going to stop outfits other than yours from switching to natural gas, dont you think . Yeah. I dont think there is any doubt about that. The differential, even with lower oil prices, you still see the differential favoring natural gas. Our customers want that, and well continue down that road. How about recycling, which i felt was a mixed picture from the quarter . Recycling has been a mixed picture now for about 18 months. You know, it really is, i think, the untold story of whats going on in our industry. That is that at the peak, we were investing anywhere from 100 million to 400 million a year in recycling assets. What youve seen is the first sustained low prices in commodities since ive been ceo, which means were not investing in recycling. We need to work with our customers and governments to find out, how do we incentive folks to recycle . Its something we need to take a look at, from a governmental point of view and customer point of view. Recycling not so great. Are you turning Waste Management into a smaller, smarter to be smaller, but you can argue that is whats going on. You know, jim, i have to tell you, were not here to create an empire. Were here to create shareholder value. If we can do that by doing a smaller company, thats exactly what well do. I think we can take the proceeds and reinvest them into more stable businesses that will create additional value. We can create more than that by using the proceeds of the sale, because we have a high tax basis. No tax leakage there. I think we can replace the calendar year 2015 and 3. 67 in 2016. Wow, shoot the lights out. We know managers are willing to pay up to two times the growth rate, which implies alibaba could get a price earnings multiple of 80. Before y if were talking about whats potentially the Fastest Growing largecap company on earth, dont you have to give it the highest price to earnings multiple . I can see super growth oriented managers paying up to as high as 222 for alibaba, based on next years earnings, almost double. Not me, but they could make a case for the stock going to 296 when the 2016 numbers come, and thats before factoring any upside earnings revisions. With alibaba at a meager 102, theres very little fear of paying the huge prices because the growth oriented Hedge Fund Managers believe they will be able to blow away the estimates and the stock deserves to go higher. 222 or 298 price target, way too much for most of you to swallow. It seems absurd. Even as the uber growth Money Managers would have no problem holding on to alibaba until it reaches the numbers. Lets say it gets the same multiple as facebook, that seems reasonable. That still takes the stock up 20 on next years numbers, to 160 on 2016 estimates. Thats reasonable, considering that facebook has Slower Growth and is less profitable. Facebooks valuation gives managers a huge umbrella to figure out how much they pay for alibaba. Theres always a chance alibaba could disappoint, though the firth quarter, that rarely yields a miss. Right now, the stars are aligned for a higher price. No wonder major alibaba shareholder yahoo is there. And im a strong supporter of yahoo. The most important point here is there is some price that must be paid for alibaba, and in the end, considering the comparisons, it deserves to have among the highest price to earnings multiples in the market. Money managers bid the stock up in advance of tomorrows report. Even without knowing what itll be. Wow. Why dont we start with tom in texas. Tom . Caller jim. Im going to give you a double booyah. Ill accept it. Caller thank you, sir. I want to ask you about dealer track. Get your opinion on that. Its a good company. It does well in this environment. I will support it. Its funny you mention this. Ive been looking at a lot of these companies. Not a lot of competition and good business. Claire in new jersey. Caller hi, jim. Thank you for taking my call. Of course. Caller im excited. Im your neighbor from livingston. Good deli there. Whats up . Caller i dont get around too much. Getting too old. You and me both. Caller i watch you every single night. Thank you. Caller youve made me such an addict. I love it. Thank you so much. Caller i have a question about mobileye nv. I dont own it anymore. It went up to the 60s. Right. It got a little too high. Now, that will report not until december. I think the stock could have another run up. Why . Its technology is used in every single expensive company car i follow. I think it is okay at these levels. Thank you for all those kind words about continuing to watch me through thick and thin. The sky is the limit, and the stars are aligning. Alibaba deserves to have among the highest price to earnings market. Thats why theres no fear among the managers to pay the big bucks for the stock. Much more ahead. Including the new face of wall street that is the center of the battle of the spread of ebola. One of nbas biggest stars ticked over pepsi and coke for the latest deal. Find out what kevin durant sees in the upstart company. Lets get this week started with a bang, answering your questions in a lightning round. Stay with cramer. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Roughly a year ago, a company i love, Consumer Products giant, announced it could spin out the Health Care Division as a separate company. This weekend, kimberlyclark spun that out, which trades under hyh. Viewers know i am a fan of breaking up for value of shareholders. This Health Spinoff makes a ton of sense to me. Medical supply companies doesnt belong under the same roof as kimberlycla kimberlyclark. This reminds me when cardinal care spun off the business in 2009. 20 a share. A month ago, we found out it was acquired for 58 a share. It makes surgical and infectious prevention products for the operating room, along with other medical supplies. The company has a medical device business, accounting for 30 of the sales. Overall, the products are number one or two in a bunch of categories, including sterilization wraps, masks, pain pumps, feeding tubes. I think the spinoff was perfectly timed. They are exactly what hospitals need to prevent Health Care Workers from getting Infectious Diseases. Well talk about halyard. Thanks for having me here. Were excited. I congratulate you, sir. When a company spun off like you, whats the difference . What can you accomplish . Even though we love kimber kimberlycla kimberlyclark. Absolutely. I mean, a couple things we can do that we couldnt do as kimberlyclark. We can increase the investment in research because innovation drives all of our product strategies going forward. The second thing we can do is better utilize the cash. In 2013, we generated 175 million of free cash, and kimberlyclark was using that to grow the Consumer Brands. Now we can use it to make the Health Care Business take off. Are you in the market immediately for acquisitions now that you have a currency . No. For the first year, well complete the separation from kimberlyclark. Well have separation agreements. Its important to separate the it systems, human resources, all the things that have been given to us as part of kimberlyclark. Kimberlyclark continues to assist us in the first year. In year two, we do. We want to use the cash to look at is thstrategic acquisitions expand the markets. I remember when kimberlyclark made the acquisitions. It seemed like a good idea. They were a health care company, franchise. We think of the kleenex. Let me ask you, when did it become such that it was a burden on kim berly aberly and not gre you . This has been a strong business for kimberlyclark. It became a strategic use of the cash. They said, we need to use the Consumer Brands in places like china, russia and brazil, and the cash health care was generated was used for that. If you back up to 1997 to 2000, we were doing strategic acquisitions, great acquisitions. It expanded our portfolio, grew the business rapidly and was really a great addition to the Health Care Business. I dont want to be too opportunistic because were talking about real life and death here, but protective apparent, Infectious Disease outbreak preparedness, that sounds like what our country is going through right now with ebola and what africa is going through. Are you in those markets, and is it a big year for halward . Hallyard . Yes, were in there. The face masks, respiratory, surgical drapes and gowns. Its part of the cdc protocol for stopping the advancement of the disease. Were in that business. So far, weve gotten more inquiries about the products. Were growing a little bit, but its hard to tell at this point whether theyre based on ebola or the normal build up of business because of cold and flu season coming on. The reason i thought it would be i mean, theres a lot of hospitals that i think might be unprepared that would be calling halyard and saying, help us. Theyre calling and asking for advise because were one of the most respected in terms of infection prevention. What are the right gowns to use . Theyre calling for advice. In addition, theyre calling to say, if we had to ramp up quickly, if we had to increase inventories, can you assist us to do that . Were making sure we have the right equipment and production schedules in place, so if we need to ramp up rapidly, well be able to do so. I was trying to figure out how that fits with the acute pain solutions. Does that belong under halyards roof, too . Yes. We have the prevention products, which is a strong cash generator. Then the entire strategy of the new company is to dramatically shift the portfolio, shift to the high margin, faster growing medical device products you mentioned earlier. The Surgical Pain products, the chronic pain products, respiratory and digestive health. Those are products that eliminate pain, nonnarcotic solutions, but also speed recovery. Get people out of the hospital faster and make sure they dont return to the hospital. Its a matter of not just preventing infections but also making sure we can speed recovery and eliminate pain. Ill tell you, your company, i couldnt wait for it to be spun off. I like them both. Youve got a great thing going. Thank you so the ceo of halyard health. Thank you, jim. The way the spin ofs work is people dont know what they have and people sell it, not sure. Let it settle in. This may be a company like a company that has so much going for it. Mad money is back after the break. It is time for the lightning round. Lightning round is then over. Are you ready . Time for the lightning round. Well start with mike in new jersey. Caller Booyah Booyah to you, jim. Thats talent. Americas got you, which is talent. Whats up . Caller i appreciate that very much. Fyy is the ticker. I like the conference bowl, i didnt love it but yeah. I want that deal closed, and it didnt. Im lousing a little heart, and thats syy. Its not coming together. The 3 yield doesnt protect you. Not crazy about it anymore. Thats a new position for me. Wally in washington. Caller yeah, booyah from the land of overpriced coffee. I like that. Caller i want to take advantage of the boomer of the health care. Maybe health care might be a good way to go. I like ben tas more than omega. Yours is good, but i like mine. Lets go to larry in nevada. Caller hey, jim. Here with a big booyah from henderson, nevada. Whats up . Caller i need your help on two things. Improving my golf game and telling me if i have a good stock or not. The company is fei company, fei symbol. I cant help you with the golf, but this is the kind of company, remember, this is a speculative company. Particle about the sabeam ion, f tea. If you want to do a speck, i will condone it. Jim in delaware. Caller quick question. When you look at aramark, the stock is low. What do you think . Im surprised the stock didnt go above 30. I mean, i just really like it. I think its a good company. Lets go to stan in florida. Caller jimbo, how you doing . Real good. How about you . Caller good. Jim, listen, i had a disposition in linn energy. You have to go for maximum safety with the mlps. The maximum safety is kmi. People are worried there is an overbuilt of natural gas, pipe and this has commodity risk. I dont want that now. Frankie in pennsylvania. Caller hey, how you doing . Good. Caller listen, im asking about 8 by 8. Internet protocol, i say, go to sysco. 3 yield, thats what you want. Its too risky for me. Anthony in new york. Caller booyah from brooklyn. I caught celg at 68 a share. You sell a quarter, and play with the rest. Its a monster. That, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. You may not know it, but the aisles of your local supermarket have become a battlefield. Gigantic food and Beverage Company fight for shelf space. How does a tiny company beat the big boys . Consider talking rain. The privately held Company Behind sparkling ice. Its made from spring water and fruit juice and vitamins, grown from being a popular beverage in the northwest to a company endorsed by kevin durant. We had a chance to talk to the president and ceo of talking rain. Take a look. When i go to a Convenient Store and see your stuff, i figure it must be owned by cocacola. You wouldnt be in there. Where did you come from . Well, it happened in 2010. We decided to relaunch the brand. We created the brand identity, and we had some good retail relationships. Amazingly, just putting the product in the store once we revamped it, it took off on the shelves. I saw you in kroger. Kroger is where it started, which is a great retailer. Theres a million sodas. We think whats working here is everything is intuitive n neurologically. It delivers on all aspects, the smell and flavor and color. You have one of the most electric athletes endorsing you. A man who nike is paying 300 million for. Kevin durant, how could you afford him and how did you connect with him . They connected with us. Rock Nation Sports came to us and called and were coming up seattle because Robinson Kanell was having Opening Night with the mariners. Kevin durant, this is what all he drinks and he wants to do a deal. Wait a second, this is one where the guy actually likes it . Yes, and thats important to us. We said we werent going to do Brand Ambassadors unless they were authentic. When youre approached by that, you think, is this real . They met us and we started going through the process where we tried to find out whether this was something that was authentic. We got the opportunity to meet kevin and talk to him on the phone. Come to discover hes been drinking the product and tweeting about it. We went down to visit him at the western conference finals and found out he sold it in his restaurants. He loved it so much, he was giving it to friends and sells it in his restaurant. We said, hey, this is what weve been looking for in terms of authenticity. We didnt want somebody who says, i like this and sets it on a car or something. I know youre a private company, but youre doing like 350 million, up from 2010. Its been a rapid rise. The retailers have been supportive. It helps the product is selling itself. It was organically grown. Back in 2011, we made the decision to go after the top 40 retailers and landed 39 in one selling season. It boomed pretty fast. Its not all done in fair weather. This was not your first one, because people say, this guy just got lucky. It didnt start like that. No. In fact, the brand has been around since 1992. It started out in a beautiful bottle. High fructose corn syrup, a lot of things that wouldnt work today. Through the years, the company made a decision to go more toward zero and local r low calories. I cant say im the brains of sparkling ice because different people provided elements. In 2010, we became a brand and Beverage Companies and created the experience. Even though sparkling ice had been there, the key was, we said, we need to define what this is. This happens to be my drink. I didnt know it was you. I bought it all summer. Sometimes, there are additives that i put in, you dont, that make it tastier. But this is more than one category. I sit there and listen to pep pepsico. This category is not supposed to be a growth category. Its about flavor and refreshment. Other guys say that, too. Actually, from a flavor standpoint, we think the consumer is tired of colas. Its a flavor profile theyve seen for a long time. If they need energy, coffee and the Energy Beverages work for them. For pure refreshment, and if you look at the food industry, whats happening there, hard liquor and beer, its all about flavor. Were providing flavor at a sweetness level that hits with consumers. Ive been listening to cocacola for a long time. They took a stake in Green Mountain and monster. Lets say cocacola watches the show. I know you have because i said you havent been doing well, and say, i want this guy, and were going to buy 20 of his company. You game for that . As the ceo, i owe it to the investors. Theyre successful businessmen because theyve been smart throughout the years. Id bring any offer that comes to them. Theyre having fun. Theres not a rush for us. Were capacitate e excited abou doing. You love being private, dont you . It makes things easier. Were starting to push international. Those get global and takes relationships, even the strategics in the country have International Relationships because of whatever goes on in the countries. Could be international, that could be next . We are actually we will make an announcement here shortly on some of the international business. We are getting ready to go. Were having fun. Congratulations. This is a huge hit. You have done a remarkable job. I really mean it. Thats kevin clock, the president and ceo of talking rain Beverage Company. Ive been drinking it and didnt even know about it. Stick with cramer. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. I know that facebook, twitter and google have come out of favor stocks. I know they peaked when the alibaba deal occurred. What i am saying is that if you go to the sapient website, you will see why i think there are multiple years ahead of growth of companies that have content created by you. I love that model. They dont have to do anything other than harvest the money. So you might want to give up on them. I understand alibaba could be really cheap after weve seen the numbers, but i am saying those three companies are the future. Theyre just challenged right now. Always more. Im jim cramer. See you tomorrow narrator bacardi rum. Steeped in a timehonored tradition, combining science and technology. That bottles going to spin a few times to get labeled. Narrator art and passion. You cannot imagine how much fun we have making rum. Narrator a multibilliondollar industry owned by one family. And today, some family members reunite to create their best rum yet a new blend celebrating their 150year history. Now get an exclusive look behind the back door at bacardis ultimate factory