Transcripts For CNBC Mad Money 20141210

Agony of those who make raw products wins out causing the dow to plunge 268 points. Nasdaq nosedive 1. 73 , worst day in ages. Its a good news, bad news game. Today the negatives won out. First, though, because im kind of optimism fella. Some are obvious. When we pump our gas, most of us are in disbelief how cheap it is. I cant tell you how many times i put out 60, 50 will do. I get a good spot when that comes back to me, but there are big losers on the other side, too. We dont see them. From the longest losers are countries considered hostile to our interest or produce terrorists that charged our world in horrible and heinous ways, members of opec. These days gasoline may come from oil produced in the united states, refined in the united states. This time the losers, some are closer to home and borrowed a ton of money to keep drilling, money that cant be paid back if prices stay as low as they are. 61 a barrel, it will go lower, because there is no discipline to production. There is global weakness when it comes to demand. Now money has been cheap and there is no end to the willingness to lenders send cash to Oil Companies because crude seemed nowhere to go up. Wasnt Energy Always lurking around the corner . I got losers suffering from the decline later in this show. You what l waill want to hear t an economy 70 based on consumption, not production, an economy is putting back oil imports and flooding with cheaper oil, so much so well likely see lower prices at the pump for sometime, im not giving up on the enterprise that is the stock market. Now ive seen figures that indicate American Consumers are saving more than a billion dollars a day from this wind fall, which acts like a gigantic tax cut that the will spare growth everywhere and being spent at places like costco reporting markb reporting remarkable numbers. It could be a reason for the marvelous numbers from Restoration Hardware tonight, what a fabulous retailer that is and hole y cow, a video conferee call stop trading. For the longest time our country is a profit nation that consumes without saving and produces a little value, right . Less of it each year. Since the great recession, were saving more, borrowing less and making products for export more than any other time in ages. Thats good, not bad. We would be furious about oil doubling from here so lets not panic if it gets cut in half. How about our phone bills . Have you seen the deals being offered of late . Once seemed like a bill to go higher each year are plummeting because there are four companies duking it out for your business. The justice departments decision not to blast the propose the sprint tmobile merger has led to a price war for something thats become for many of us the biggest daily expense, what a win that will happen when Companies Make so much money they are able to afford real price competition. In an era where everything seems to come to the phones, sending the cost sigh ward, this could be a bigger saving for money in cheap gasoline. How about our imports . We buy a ton of stuff from overseas and sourcing these materials with strong dollars, foreign clothes, foreign cars, foreign vacations, were paying less and less as trading partners do more business. Its remarkable even if its unseen to the naked eye on a daily basis. Oh, good. So what is wrong then . How do things go so sour today when a 4 decline, not advance but decline in oil, kind of counter intuitive, isnt it . Its simple. Were not just importing cheaper goods from overseas at the moment but witnessing the stress in their countries at the same time that some of our institutions are bearing the strain of domestic oil producers. Thats right, a lot of the producing nations are in trouble. It will be one thing if we only had to worry about the over stretch Oil Companies and the debt in our country there are dozens of companies that will have a hard time paying debt. More on them later. They are responsible for roughly 210 billion in loans weve been able to quantify, loans and bonds and more than certainly dozens of these companies will have to be restructured for oil with the common stock being wiped out in some cases. Most of the debt is held in ways and funds. I got they will be anything like the credit crisis back in the great rescission where trillions of dollars in bad housing debt overwhelm the system. The funds that hold the majority are diversified. While i dont like them, they dont swamp the system. Countries and companies that cant pay back money and if whole countries borrow money and default, we could have a problem like 1997, 1998, you can google it if you want. I wont go at it at length. Some seemed to be worried. I get that. Brazilian giant is very over stretched here and it was a great deal of money that might not be able to be paid back immediately. Maybe they have to restructure. Its flatter than a pbr. Thats the symbol pbr. I like pbr but i do not like pbr the stock. Nigerian debt could be trouble, trouble for banks. Iranian debt, iraq may not be able to pay bills. Everyone but the saudis and emirates lack the skills. You can see the problems with stocks but the pbr, its the credit picture thats opaque but with oil down so big today, the strains were audible among those who trade bonds and that bond talk which is much bigger than the stock market always in the end spills over. Tech is being impacted today, too, negatively because of the price war over your account. If the companies are price cutting, maybe they cant spend as much on equipment and much of the networking boom including the recent surge on cisco was money on verizon, att and sprint f. A price war slowing it down, youll see many related ones getting hit like cisco. If everyone is debasing, its not going to work. The weakness is our strength. Im not changing my tune but we need europe and china na to gto smarter. We need markets to stabilize or serious disruptions in the high yield emerging markets and the funds that take all that stuff wont get new money in and like their high yield, wont be able to buy more bonds issued by cash strapped companies. They will be fill up dumping bonds that will cause some sort of panic in the market. It happened before, it will happen again. All high yielding junk and emerging nation funds are in the blast zone right now and we saw Collateral Damage play out from getgo because of that blast zone. We have positives that reflect and good news for the consumer but today they were overshadowed by the negatives in the decline from the value of the producers and countries stress in the Financial System because of how quickly oil depreciated. Today the latter trumped the former and if oil doesnt stabilize, you can see days like today. Is it grim . I got to call them like i see them. I think oil is as low as we wanted it to go for now, at least at this speed until those companies and countries who rely on oil for their income have a chance to readjust and with the velocity of oil decline now, thats not going to happen. Here is the bottom line. If oil goes much below 60, that means the producers credit pain will indeed overwhelm the consumer spenders gains, at least for now. How about colin in new york, colin . Caller hey, jim, booyah, what is going on, man . Just trying to fathom how oil can go down and it be bad. I get it. Caller its a bad day out there but one thing i couldnt be happier about, im a big believer in semi conductors and technology and seems like these guys have weathered the storm well. I was curious one thing ive been in since the single digits. They have a big merger and i was curious what your thoughts were for the rest of the year for colin, rf micro is terrific. Some will say there is a price war going on among the providers, maybe we should sell some. I like the combination. Rf micro is worth less than 2000. I like the combination but it will come in a little but the combination not unlike that combination between cypress could actually be fabulous in 2015. Dont give up the ship. Joe in new jersey, joe . Caller cramer. Yes, joe . Caller i like your show and always take your advice. Thank you, joe. Caller i own verizon. I bought it back in 2008 as a dividend play. Its up big. Do i sell it and buy at t or another telecommunication stock . Do i do . I speak verizon. I expect that stock to go to 5 yield. It means it will go down little more. If youre selling at 46 to buy back at 44 thats a big mistake. What i want you to do, joe, hold on and if it does get to 5 yield. Buy, buy, buy. I think oil is as low as we want it to go, at least at this pasz b pace, but what is bad for the producers is good for you, the consumer. Serious recognition on wall street, the reason behind the stocks double digit move just this week is coming up. You know what . I think its got much, much further to run and how much are you spending to keep your pet fed . Americans will spend more than 22 billion this year alone including me. Find out how to fetch that to your portfolio and the crude is having a massive impact on the Energy Sector and may not be, lets just say a safe place to be. Ill tell you why, next. Stick with cramer. Dont miss a second of mad money. Follow at jim cramer on twitter. Have a question . Tweet cramer. Hashtag mad tweets. Send jim an email to mad money at cnb cdot come or give us a call. Miss something . Head to mad money. Cnbc. Com. Mone. Call. Miss something . Head to madmoney. Cnbc. Com. Or. Miss something . Head to madmoney. Cnbc. Com. C or. Miss something . Head to madmoney. Cnbc. Com. Om or. Miss something . Head to madmoney. Cnbc. Com. She inspires you. No question about that. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Nobody has championed the american oil and gas renaissance more than i have in the media. Its been one of the greatest themes of our era and certainly at mad money. As the price of crude crashed, and lets be honest when a commodity falls to 100 to 61 in months, thats a crash. The upside is och upside it. It makes up 13 after today make it 12 of this beat down and 12 does better however, that doesnt necessarily mean 8 do better with lower prices. Were a consumer led economy that uses more resources than we can produce. Our society and stock should be overall winners from Lower Oil Prices. There are far more oil burners among stocks than there are producers. So despite todays hideous action, i want you to remember as crude continues to decline, most of the companies that consume oil in someway, shape or form will keep getting a nice boost to their earnings per share and that gets bigger as oil goes lower. Its no secret if you take a chart of the s and p 500 and over lay it on a chart of oil, you can see they are headed in opposite directions over the longterm, however, because of the way our equity and credit markets work, bond markets work, this are always going to be losers, too. Losers obvious and hidden with many of the latter being discovered by the day, including today. In fact, you know what . The losers were behind the vast majority of the damage that occurred in this stock market this session. Of course, it was easy to spot the losers because the oil patch was crushed but the worst of the oil losers belonged to three categories, companies that paid up late in the game using 100 oil evaluations. The oil Service Concerns that needed crude to keep going higher so drilling budgets would stay strong and Oil Companies that spend far more cash. The stocks in all three gone. Have they bottomed . Do a case by case analysis. If you own a stock higher than it was at last time and has a stretch balance sheet, forget it. It will crush the common stock regardless of the cost of production. If you own shares that bought acres and must drill them at land by least obligation, that stock is not going down f. A company cant afford to cut back the drilling budget and isnt hedged enough, that is not done going down. Again, though, look at the financials of each company. Some saw the collapse coming, some didnt. There are probably bargains out there. We dont have enough details to know how they do when oil is at 60, 50, 40. They go down, maybe thats all you need right now no matter if you try to call bottom, youre trying to be a hero. In the stock market, heroes get annihilated. We have the answer larry plays and they like the oil and Gas Companies are much harder to figure out. These come in three categories, oil company creditors, need oil prices to stay higher to do business in their own business and geographic consumer plays tied to the 16 oilproducing states. When it comes to creditors, we dont know who is exposed and how much. Three banks bok financial, Hancock Holdings are always fingers for having too many energy loans. Could they be the next that collapse when had oil fell bringing many bigger banks with it . I dont know. What i do know is i cant think of a reason to own their stocks. Banks will trade together. If you want exposure pick ones with less potential. Those arent much cheaper. Why bother with them. Some Business Development companies, these are highyielding middle market lenders that got exposure. Again, a usual suspects list made up of thl credit and main street capital. I usually dont recommend the stocks because they are opaque and if you go through the holdings as ive done, you cant tell how much exposure there are reports all four have 10 exposure to oil credit but after looking at them, i couldnt tell if thats the case. More important who the heck needs z stocks . Suckers game and taking on more risk than you realize. I know that because ive been doing this since 1979. Most of the funds are tied to companies with commodity price exposure. Does your Junk Bond Fund own good ones, bad ones . Again, these are case by case decisions but im making a sweeping judgement tonight. Given the return of the funds, that the whole group and it isnt worth the risk. Sell them. Sell jump bond funds. Sell them tomorrow. Finally there is a Toughest Group of all, companies you dont have to have exposure to decline in oil but do from the capital good side and consumer side. First, while the airlines benefitted from cheaper jet fuel, remember one of the chief reasons is older plains use too much expensive fuel so its expensive to start up a new airline or was. The recent air carrier fell so much yesterday has more to do with the idea that startups can use older planes to compete. I think its legitimate worry. New carriers will start up and enter the market using older gas guzzler planes and will keep the Airline Stocks from rallying higher than they should. Second, bowieing could get hurt. There is less incentive to invest in the fuelefficient planes, right . Thats something to watch. It will keep the stock. Finally, nonoil related companies that happen to cater to the oilproducing states. Other than conns, the texas based, there are very few companies concentrated in Oil Producing areas like the banks retailers are national and focused. Im not going to worry. I wish i could give a list that says you dont need to be worried about these stocks because the Underlying Companies have no real exposure, but i cant. Why . The market made up its mind and its painfully clear on this issue, if there could be a corallation then for this market there is one. Thats how tesla can keep plummeting with lower oil. The people who buy tesla ares rich. They are not making the trade off between cheap electricity and gasoline but tesla is going mass and they impacted by Lower Oil Prices and would be less likely to buy electric cars so the stock gets hit relentlessly. Maybe thats the real bottom line f. A stock is going down it will keep going down whether or not thats fair because in the end to quote client in that seminole stock trade did is unforgiven. Deserves got nothing to do with it. Vito in michigan, vito . Caller jim, booyah from the motor city. How are you doing . Booyah right back. Whats up . Caller were all here an exciting time to watch the city make hopefully the comeback of the century. We really hope for that. We love that city. We love detroit. Been there many tyimes. Congratulations for the comeback. What is up . Caller thank you for your evening program. As an individual investor trying to manage his investment, we can all do our Due Diligence on individual stocks but without the big picture, its almost impossible and thats where your daily advice and observations are just really, really appreciated. Thank you for understanding how to use the show. Thats precisely what i want. How can i help . Caller i got to invest in a number of oil stocks, schlumberger, halliburton, phillips 66. I have National Oil Well varco and im thinking if i shouldnt sell himy holdings and increasi my holdings in National Well varco. I think they are not done going down there are a number of cuts to come. What we have to wait for, we need to see the analyst get ahead of things and say listen, im cutting. These stocks do not bottom until you get the number cuts. Thats when you can buy more. Wait for the number cuts. Who said life was fair . Sometimes the market just makes up its mind. If the stock goes lower and oil goes lower, it may not stop. Much more mad money ahead. Can this play on medicine providing a healthy return and a fridge full of reasons why your money should get a little more familiar with mans best friend but a World Class Health care conference wraps up. Ill reveal the winners worth buying. Thats next, stay with cramer. On a day where the market sg reeling from the collapse and oil prices, lets not forget there are tons of terrific companies that have no Economic Sensitivity whatsoever, shouldnt be affected by a credit crisis, companies that can grow like crazy regardless of the state of the economy, like the bioteches. We had a conference highlighting the best up and coming names, talking about the Big American Society of hematology meeting that came to an end yesterday. Many produced staggering gains many of the companies that presented every stock is coming down so maybe you can pick and choose among the stocks getting hit. Who are the winners . Lets take them down. There is cramers pave agios. Like you didnt know. Last weeks game plan we checked back which makes highly targeted anti cancer therapies. At the conference standing room only agios presented data on the key drug ag 221 for leukemia, what is described as the most rabid audience out there and they will start to get approved next year. They will have a 368 gain showing no signs of stopping but because of the choppy market youll get a better buying opportunity. Next big winner, blue burg bio. They treat people born with nasty genetic diseases. It replaces faulty genes with correct ones. Its working on an inherited disease that disrupts hema globen and treatment for sickle cell ame anemia. They are promising but not the only reason bluebird stocks rose. There was a hot t cell therapy or car t for short. A novel way of treating cancers posting amazing results. Adam, thestreet. Coms biotech expert explained as a rock concert part revival meeting. Thats how excited people are about this. And as it happens, bluebird is a joint venture with cell gene. Then there is kite pharma shot up. Kite is involved in developing Cancer Treatment for diffused b cell lymphoma. A play announcing plans to take itself public between 15 and 18 a share. Keep an eye out and get it on the deal, you should. Well hear from a super exciting precenter, isis fapharma. I want to mention cell gene. They jumped four points on monday because it released positive data. Crucial blood cancer franchise. Its up and coming multiple myloma drug and i add door it is because they partner with some hottest players at the conference. Cell gene owns 15 of agios and owns steaks in two other Early Stage Companies that got a lot of attention and cell genes partner with bluebird. With the investments and partnerships, cell gene is an incubator for therapies, which is why i believe they will is a phenomenal pipeline. Although, again, why not wait for a further pull back as the market wide correction winds its way through the system bringing good with bad and ones that have nothing to do with oil with the ones that do and youll get a chance to buy cell gene at lower prices than it is, stock down a couple dollars today, probably more to come. Lets speak with jared in massachusetts, jared . Caller hey, jim, big booyah from boston, mass, how are you . Good, how are you . Caller i want your thoughts on xlv. I know you werent happy about the merck deal and i have options that ended in january for 71. I think that merck, look, they obviously paid too much in light of what happened but its great to be in antibiotics. Health care sector is a good place to be on the way down, i stress on the way down because people realize there is real credit risk out there. Let the stock come in and do buying. Always keep an eye on the data that comes out of conferences. You have hot up and coming names that can run for a long time to come after the momentarily oil and cell gene, that is a favorite. There is much more mad money ahead, including how to cheaper feed your pup. A biotech breakthrough called isis as i just mentioned to really run. 50 move up but it is done or more to come . I got the ceo. A noreaster of calls on the way in a brandnew edition of the lightning round. Stick with cramer. Do you like to travel . Im all about free travel, babe. Thats what i do. [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. And find the one thats right for you. [laughs] when were having this much fun, why quit . And bounty has no quit in it either. Watch how one sheet of bounty keeps working, while their two sheets, just quit. Bounty, the noquit pickerupper. In Holiday Season think of Biotech Companies with broad pipelines as the gifts that keep giving. Take longtime cramer faith, Isis Pharmaceuticals that binds to the rna in a persons cells allowing drugs to control the expression of a persons genes. Thats a terrific way to treat genetic disorders and i recommended isis because it has so many shots on goal. One drug on the market for genetic disease that causes super high cholesterol but they have 31 drugs in development that treat the air orphan diseases that can be lucrative. I told you about many before. Drugs for doses and the phase three treatment for spinal at tra fee and diabetes but this may be nothing compared to this. This sunday at the big amen can society of hematology conference, the drug its studying for blood clots within a blood vessel for patients undergoing knee surgery. Results are better than expected including a sevenfold reduction and it could be a major player in the anti coagulant field. We last spoke to isiss ceo when it rallied 55 . I pushed it hard but i trusted them to keep delivering. Lets check in with the founder, chairman, ceo of isis pharmaceutical. Welcome to mad money. Great to be back. Your company is amazing but could this really be, the new drug, the anti coagulant produce an effect without a risk of bleeding . Because most people that take the current drug ks bleed out so quickly if they hurt themselves . I think weve proven that, actually. And i think the importance of what weve accomplished is attested to by the fact that it was a simultaneous presentation and new england journal publication. I think what we did in this clinical experiment was we applied the acid test thats been used early in development for essentially all new anti bleeding and give to patients undergoing total knee replacement. The reason its an acid test is the patients have a dual problem, they have a high propensity toward having blood clots and they bleed a lot, and here are the remarkable observations. First of all, we produced a sevenfold lower incidents of these clots compared to the standard of care. Thats amazing and no drug has ever been able to produce a 4 incident of blood clots. Second, we pretreated these patients so they were fully anti coing ocho kag coagulated and they didnt bleed more than if they got the drug. We have a drug that can appear to separate blocking clots from causing bleeding, and so thats a tremendously exciting advance, and the commercial potential is just enormous. Well, for having had a relative where we had to make the choice between some drugs, we knew they were both i imperfect. Youre talking about treating a order thats the cause of heart attack, strokes, embolism and death. Could this not be one day used by millions of people . Yes, it certainly could. Now, remember that its administered once a week or maybe less frequently and it has a slow onset. So it wouldnt be used in acute settings such as in a heart attack but what it would be used in is millions of people who are trying to prevent second events and trying to prevent a second blood clot or heart attack and there i think the opportunity for the drug is just thrilling. Now, i mean, this the work that youve done is definitely superior, right . Definitely superior and could be superior to fancy drugs that are out there now . Oh, i think weve already shown that thats huge. No drug is ever achieved this, and we treated these patients. We anti coagulated them before and during surgery and they had no extra bleeding. You would never even dream of trying that. In fact, when youre on one of these other drugs, one of the real problems is if you have a medical or surgical procedure where you have bleeding, you have to be weaned and it exposes you to greater risk and so on. We know a lot about this drug already and its all, good good. Doctor, every time you come on its staggering. I understand how this could be big on a very bad day. Founder chairman of ceo of Isis Pharmaceuticals. Congratulations on a home run. Thanks. I dont want to over state it because its phase two but this is phenomenal. What can i tell you . Its phenomenal. If it works the way we described it and he says it does, isis is going higher. Mad money is back after the break. It is time for the lightning round. Calls, buy, buy, buy, sell, sell, sell. Play this and lightning round. Are you ready . Time for the lightning round. Jack in ohio, jack . Caller hey, happy holidays to you and your staff, jim. Same to you. Our staff is terrific. Whats up . Caller outstanding people. Its a longterm hold on bbep. You put it long term if you used anything other than that, thats a mistake because i dont really want you in that stock. 21 yield, that is the ultimate red flag, in other words stay away. Max in florida, max . Caller yes, jim, how are you . Im okay, max, how about you . Caller all right. I was going to ask you about ford ford is not as good as gm. Gm is going down here. I understand that but its got good yield and the dividend will be boosted longterm. Gm. Mark in tennessee, mark . Caller jim, nobody likes a job like you do. Im looking for pay . Im volunteering to tell you i like verifone. I believe they are a gamechanger for retail. All stocks coming in. Thats a place to be. Lets go to dane in north carolina, dane . Caller big, big booyah from concord, north carolina, jim. Man, i tell you, i wish i was there. We got a lot of snow here. How can i help . Caller man, im 61 and looking for bpg for a longterm dividend . No, i dont want you to do that. Its too high risk. The possibility of oil is going lower. If you want a dividend play, if you want a higher yielding play, youll have to go to utilities fresh alltime high so wait until they come down. Lets be careful. Not yet. Lets be with the Master Limited partnerships that do not have oil exposure, commodity. I do the usuals over and over again but enterprise. Lets go to jennings in south carolina, jennings . Booyah, cramer. Yo. Caller what do you think about jp morgan now i thought that announcement look, Stanley Fisher is ablaos and that article in the Financial Times took my breath away they have to raise capital because it went against the idea. I think the article may i think that the statements have been blown out of proportion. Jp morgan has no problem with credit. They are terrific. They are fortress. That said, the stock could come down more before i pull the trig e, paul in connecticut . Caller booyah, home of the huskies. We like the huskies. How can i help . All right. At t, im a holder and im getting a little nervous. Where do you see this stock going . With tmobile and the price war with sprint and the price war with verizon could take that stock down to 30, 31 and yield 6 and thats where we pull the trigger. Tom in michigan, tom . Caller booyah mr. Cramer. How are you . Caller good, good, calling in tonight about emes. We love this stock and said it was time to sell. We did a big piece how the sand man would be coming down. Everybody got bulled up. I was accused of every nonsense forget it. I still dont want a sand fracking play. Oil is going down too fast. How about curtis in north carolina, curtis . Caller booyah. Booyah back. Caller i want to know if j. C. Penney can get the shine back. Its very controversial. I hope they have a turn and told you they are not having the earnings. I got more negative. Why . Because they told you to be a little more negative and thats the way im staying and that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameriameri trad. Why do i take metamucil everyday . Because it helps me skip the bad stuff. Im good. Thats what i like to call, the meta effect. 4in1 multihealth metamucil now clinically proven to help you feel less hungry between meals. Experience the meta effect with our new multihealth wellness line. Revolutioning the 22. 5 billiondollar pet Food Industry or another flash in the pan. The fresh pet has taken a novel approach. The only companys whose products are refrigerated. It has minimal progress sesing embracing the popular human food. We highlighted fresh pet on the food this past march while it was still private in the off the tape segment and the company is a truly disruptive force, which it is and it came public pricing 15 a share. It roared on the first day rallying 27 and closed at 19. 11 the stock is languishing and today a 6 run trading at 18 and change below opened after the ipo. Last night fresh pet reported the First Quarter out of the gate and part of the reason the stock rallied 1. 05 today. Can they stop trading . Lets take a closer look with Richard Thompson to learn more about his company and where its headed. Welcome back to mad money. Good to see you. Good to see you. I was thinking, i was doing a lot of work going on pets mart and i was picking on and said i can get this stuff on amazon. No, amazon. They dont ship refrigerators yet, i dont think. This is the only part of pet food they cant come after. We got a big thing there, we got something amazon cant do at least right now. Now when you go, i think people have to understand this comes with it and as threatlook they love this. This is four feet eight feet bolted by the floor and goes into retailers and has a big light and brand and its invasion. When they walk down the isle, oh my gosh, look at this, what is going on here . Were bringing people to the isle and more often than they are. Now, your expansion plans are pretty rapid. Even in the time you think since we saw you, youve gotten into a lot more doors. Were in about 13,300 stores and growing. You have raw costs. A lot of stuff in the regular food is junk, regular pet food. You use real chicken. Chicken is and spence sieve. Real chicken, real beef, real turkey. Its expensive. People pay up . First of all, we want to do whats right for the pet. The right protein and right quality. Were not looking for everybody in the market but the health and wellness, the humanization trend. Yes, its probably a little more expensive but to pay more to get a bigger value and a lot more love from your pet, im in. You say bigger value, a lot more love but no Scientific Study that says Natural Organic lengthened life. My mom tells me fresh is better. Thats probably one of the thats why the price earnings ratio is going higher. So we tried it. We tried the big one, and ive got to tell you, i felt uncomfortable after i opened it and the dogs didnt eat it and put it back in. Is there an objection that says wow, i dont really want that in my refrigerator after i open the big one . Not really. People like to interact with the pets and the big rolls, people lice to sli like to slice them and cut them while the pet is anxious to get the food. You interact with the pet and food and not cooking but almost cooking for the pet and everybody has a different way to do it. Whether they turn it upside down and put it on a paper towel or cellophane on it or cut it up and put anytime a baggie and buy the right size and use it. Thats what we didnt do. We use add big one. You should have used the small one. Are you in any kennels . The product sold in kennels . Not right now. A lot of people use us in kennels. Killer application. Put your name on that idea. I feel like they are charging us for it. They probably are. Okay. Now when you do youre largely domestic but people should understand, youre a pet food guy. Yeah. Youre the most successful brand manager in pets. Arent you now disrupting all of your old friends in this industry . Absolutely. Were disrupting the category to invasion and all natural, no preservative. Nobody is able to do this. There are a lot of barriers because not only refrigerated manufacturing and distribution and this great food. I think people have to understand that you wont let other refrigerated pet food in this and no one is going to take two refrigerators side by side. Not right now. We hope the category grows. On some point were doing well up 35 last quarter. Last question, in europe they will go crazy for this, right . Yes. Thats next or china. Do you know anybody i should talk to . You know everybody in the world in this business. Thats Richard Thompson. Listen, im going to say it, the dogs will eat it. Stick with cramer. Thank you. Remember, consumer benefits will get hurt and producers. You saw the credit stress, its not done. There is a lot more chatter and this will happener if oil breaks 60. Be aware there are other people who are not as enamored of lower oil and tend to be the producers of oil who are really getting smashed here. And thats what i want you to be careful of. I like to say this, always a bull market somewhere. I promise to find it for you here on mad money. Im jim crimer and iamer and i tomorrow. Lemonis tonight on the profit. Andreas meat in the gyro . Lemonis . My big fat greek gyro is a small franchise with a growing footprint. Are you guys still in love with this business . Mike i am. Kathleen i am. Lemonis already, there are five locations up and running. How long have you been here . Jace a little over 3 years. Lemonis and as the business has grown, so have the problems. Mike youre my partner. You can pick up the slack, as well. Kathleen youre gonna put it on me now . Lemonis husbandandwife team who started it have no idea how to run it. Rich ive lost respect for mike as an individual. Lemonis their food misses the mark. Theyre actually terrible. Andreas you dont like them . Lemonis no. Their branding is all over the place. Hamburgers and hot dogs . And the franchisees arent getting anything close to the help they need. Kane the only help we ever got from them was on the first of the month, they came and picked up their royalty check. Lemonis for this business to survive,