Calculation by me came to roughly a 7 decline when the market would open. A decline that was unrealized and then tossed aside when the day dawned and grew light with the dow ultimately gaining 257 points today. S p climbing 1. 1 . And the nasdaq finishing the same, up 1. 1 . The markets now up close to 4 for the week, which means if we can hold at these levels, this will be the best week of 2016. I know youre puzzled. I know its hard to believe that someone who is regarded as the enemy of the stock market last night can be embraced as an old friend by midmorning. But i want to explain, just put it in plain english so that you can understand whats happening here. To begin, though, you have to get into the heads of the people who actually bought stock, people who committed capital today. Thats whats often the key to figuring out a rally. It was downright absurd, totally insane, but then of course turned out to be anything but. So let me list the types of buyers, the people who came in with real money, why they were motivated to do so, and how they moved the market. The first buyers, the people who have been waiting for this gosh darned election to end already. These are investors who recognized that the nastiest election in ages simply had to finish playing out before they could commit their capital. There were just too many questions. Too much plain old confusion and uncertainty to feel prudent before pulling the trigger without knowing the results. I want you to think about these people as agnostic buyers. They were going to buy stock no matter who won. They simply wanted to be sure the market wasnt going to crash after the results came in. It pretty much did crash for traders who sit around in their pajamas at night and trade the futures like idiots. The people who sold everything say they arent worth a bucket of worm spit, a phrase fdrs first Vice President used to describe that distinctly subservient, suboptimal job. Ill railed against these sell everything folks for months, but obviously it doesnt matter. The p. J. Guys, they dont listen to anything anyway. What are those guys doing with their dr. Denton feet pajamas . The second group of buyers, those who wanted to see a smooth transition. They didnt care who won so long as the victor was magnanimous and the loser was gracious, allowing americas long transition of peaceful transfer of power to continue. The smooth transitional cohort got an instant onetwo dose of gratification first with trumps victory speech at 2 30 a. M. , which must have really driven those p. J. Short sellers crazy, and then the second with hillarys concession a little after 11 00. These buyers really did everything they bid everything up. Did you watch it during hillarys speech . They bid everything up first when trump wasnt threatening to to send her back to yale, where she went to law school. The third set of buyers . Those who see in donald trump a businessman who will cut taxes and borrow a ton of money to fix our nations infrastructure. These buyers know trump is comfortable with borrowing a lot of money. Maybe even more than he can pay back, if he has to. So why not do the same with the treasury given the 30year rates are so cheap . The bond market traded today as if trump is going to issue a 500 billion longterm bond to fund bridges and tunnels, not i actually think he should do that. The stocks i recommended year, Martin Marietta materials and vulcan materials, were among todays leaders. Plus when rich people get a tax cut, let me tell you something. Rich people getting a tax cut, this is what goes through their head. Hallelujah and they tend to invest some of that money in stocks. Buy, buy, buy. And rich people represent a pretty big constituency in the market. Face it, rich people love it they love capital gains. So they love stocks. Pretty simple. Fourth group of buyers, the people who got this election completely and utterly wrong. No, not the pollsters, who after this election and brexit should have whatever licenses they have revoked. Bunch of clowns if you ask me. Chowder heads even. No, im talking about the short sellers who, after fbi director comey first damned hillary with the weiner emails and then exonerated her days later, felt she was the biggest shooin 1972. Now, if youre idly chit chatting about the pollsters and you took comfort in them, if you liked hillary, more power to you. But if youre a Hedge Fund Manager and you saw those pollster numbers, you would have been really inclined to bet on a Hillary Clinton white house with perhaps a Democratic Senate majority. That would have been the death knell for pharma and banking stocks. A lot of people were having could do to those industries with a democratic majority in the senate. So these Money Managers made gigantic short bets against both groups. Now, at first if you were betting against whole sectors of this market, you looked like youd be saved by the decline in the overnight futures. I could see the guys in their p. J. S at 11 30, 12 00, saying, well make a fortune tomorrow. But once the smoke cleared and the sun came up, those guys took their lickens. The short sellers had a major horror on their hands. They were lookingo Interest Rates dropped as bonds were bid up. Woo, trump. However, when we got a magnanimous handoff and a sense trump meant business when he talked about borrowing money to build out americas infrastructure, you witnessed a stunning rise in Interest Rates, which is nirvana for the banks because they pay you little on your deposits but can invest them at very high rates of return with very low risk. Remember, they dont raise your deposit rates as much as they, well, they can make on them. Arent going to rip into the drug companies, but because they may let these companies repatriate their foreign capital and start merging with each other. Proposition 61, out. So short sellers had to come in and buy all their shorts, particularly in pharma. More on that later and of course the banks. Both groups had what i call rip your lungs out rallies, which brings me to the fifth set of buyers. Those who like the idea that something can get done with corporate taxes to repatriate all that money overseas. More than a trillion and a half dollars, a lot in tech and drug stocks too. That would mean more buybacks, more dividends, more deals. It was never going to happen with a democrat in the white house and a congress controlled by the gop. Sixth group, those who believe that both the predatory nature of regulations and our Foreign Trade partners might have finally met their match. Plenty of our ceos want free trade, but others taking their cue from the likes of dan dimicco, former ceo of steel giant nucor, believe that we need a level Playing Field with our trade partners before we can what can i say . Part of trumps emphasis is to disrupt the status quo. Hes antiestablishment. And nothing resonates with investors like stopping regulation that hurts our jobs and our businesses. And here im including everything from, according to the people who voted for him, the Affordable Care act and nafta. A seventh group of buyers just found tons of stocks they like today. Weve been harping on those defense contractors. Monster moves. Others want to invest in fossil fuels and feel like a trump epa would be less threatening. Maybe there is no epa. Well, no. Anyway, the Pipeline Companies in particular got a green light here. So did the coal toting railroads. Finally there are people who are willing to bet that americans will be more inclined to go out and spend now that this election is over rather than sitting at home ordering that dominos nocheese pizza with banana peppers while playing grand theft auto and watching, i dont know, luke cage on netflix. Maybe people will fix up their homes again, ending the long resurrected. There were enough of these to color the tape positively. To be sure the markets actions were erratic minute to minute. The simple fact is there were a heck of a lot more people who wanted in after this election than wanted out. And a gigantic number of hedge funds who were on the wrong side of the trade and had to reverse their stance. So the bottom line, the coalition of the willing buyers cobbled together to produce an improbable rally. But then again, wasnt this whole darned election improbable . What a fitting way for it to end. John in georgia, john. Caller yes. My question is, do you believe that General Dynamics is a good stock to own in the Aerospace Defense sector, especially under a Trump Administration . I think General Dynamics is one of the best run companies in the country. This stock did hit a 52week high today. Its up 8, but you know what . How about larry in massachusetts, larry. How you been, partner . Caller hey, jim, thanks for this mornings action alerts call. Oh, man, we were sweating on that one. It was a full hour. Glad you could join us. Caller it was absolutely valuable during the whipsaw. Look, ive got a soft financial question for a retirement account. Ares capital corporation. You know it. Floating rates. Wide bunch of industries. Yields a steady 10 . Since i bought it in 2013 and with the fed beginning to rise and the overhang of congress, eliminated pretty much. Do you like them as much as a slower blackstone . I think we get a little freed up equity market. Black stone does a little bitter. Run by a pretty smart guy. Saw him interviewed by my boss last week. So lets do that. Lets make that switch. Thank you for the kind words and for joining the conference call, which is on a replay. It was really wild because we it, duking it out over which we liked and which we dont. Kind of like fantasy except it was reality. The 24hour turnaround that caused the dow to swing more than 1,000 points may seem crazy. But when you get inside the heads of the buyers and the sellers, the improbable rally off an improbable election comes to focus. On mad tonight, the new face of washington has drastically changed the outlook for one specific set of stocks. Ill give you the existing landscape. Plus, how il what could bring it to an end . The warning signs to watch. Well, weve got them just ahead. And remember when we didnt just talk about the election . Those times are returning. Tonight im speaking with chipotle about its legacy and whether it can repair its reputation. Hey, avocado got expensive. I know that from bar san miguel. Anyway, stay with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Yeah,. Hashtag stuffy nose. Hashtag no sleep. I got it. Hashtag mouthbreather. Yep. Weve got a mouthbreather. Well, just put on a breathe right strip and. Pow it instantly opens your nose up to 38 more than Cold Medicine alone. So you can breathe. And sleep. Shut your mouth and say goodnight mouthbreathers. Breathe right. I think we can finally get a bigger place. Try credit karma. Its free. Credit karma. Give yourself some credit. Because im a woman. Do you think im gonna crack under pressure or conquer the field . Defy expectations any day with always infinity. Made with flexfoam. Absorbs 10x its weight. Rewrite the rules. Always. Were going to prove just how wet and sticky your current gel antiperspirant is. Now were going to show you how degree dry spray is different. Degree dry spray. Degree. It wont let you down. [burke] at farmers, weve seen almost everything, so we know how to cover almost anything. Even a rodent ridealong. [dad] alright, buddy, dont forget anything rod here. Its pretty hairy out on the interstate. Traffic is literally crawling, but there is some movement on the eastside overpass. Getting word of another collision. [burke] it happened. December 14th, 2015. And we covered it. Talk to farmers. We know a thing or two because weve seen a thing or two. After Donald Trumps stunning victory last night, coupled with the republican sweep of both houses of congress, were suddenly looking at a very different stock market. This is a new environment, and we need to rerate thats the technical term a whole host of different groups. But the biggest impact of this shocking election is probably in the Health Care Group. Remember, until the returns started coming in last night, Hillary Clinton was considered to be the oddson favorite to win the presidency with a decent taking the senate. For over a year, the prospect of a clinton victory had been weighing down the Health Care Cohort and in particular the drug stocks ever since hillary sent out that infamous tweet about cracking down on pharmaceutical price gouging. That was in september of 2015. Been a long time. From that moment on, the whole health care edifice was living under a cloud with wall street worried about congressional inquiries, executive actions or even actual price controls. Thanks to last nights results, though, those worries have all been pretty much taken off the the republicans are the party of limited regulation and free markets. Theyre not going to crack down on drug pricing because they believe that will stifle innovation. Youve heard that a million times. Hence the massive near 5 rally in the drg today. Thats the nyse arca pharmaceutical index. Granted, the republicans will try to repeal obamacare, which could hurt Many Health Care plays, but the democrates in the senate will just filibuster. More on that for more shows. A Gopcontrolled Senate also means we dont need to fear aggressively interventionist Democratic Committee chairmen. Sanders. Running the Budget Committee or the committee on health, education, labor and pensions, both relevant to health care. Another surprise Political Development last night . In california, the voters defeated proposition 61, which would have prevented the state from paying a higher price for drugs than the department of veterans affairs, and the v. A. Gets the lowest prices of any government agency. Thats another win for the drug makers. Plus after getting beaten down for ages, many of these Health Care Companies have dirt cheap some of these companies are engaged in price wars with competitors, like whats happening with the wholesale drug distributors. We want no part of that. For the segments of the Health Care Sector that dont have price wars, i think we need to get a lot more positive because these stocks have a lot more room to run. In fact, many of these names are so cheap, i wouldnt recommend even if hillary won the election. Thats how much this group has been punished already. But under President Trump, the outlook for the sector, a lot brighter. Cvs sold off almost 12 yesterday after reporting a mixed quarter with truly dismal guidance for next year. Management says 2017 could be a challenging year. Cvs might lose more than 40 million prescriptions as pharmacy benefit managers like express scripts lock out their pharmacies. Ouch. Honestly, much of the weakness seems cvsspecific. The business theyre losing will probably go to walgreens and we told action alerts club members that Charitable Trust holding wba was the real winner here. Believe in the companys longterm prospects or they wouldnt have announced a massive 15 billion buyback. I would not dump cvs down here. Let it come a little higher. Other negatives that jump out valeant, pitiful helpless giant of a drug, believe me. Reporting another disappointing quarter, dramatically cutting its fullyear guidance for 2016. Refused to give a forecast for 2017 except to say the numbers are going lower. Hence why valeant lost 21 of its value yesterday. This company has got an ugly Balance Sheet, and i still consider the stock downright toxic. Dont buy. However, theres a lot to like in the rest of the Health Care Space as long as youre careful to avoid the competitive land mines. On monday before the election, lindsey bell from s p capital iq came out with a terrific piece titled taking the contrarian view on health care, where she made some important points. Despite the political rhetoric, bell noted that many subsectors are still doing just fine. The valuations in the group had gotten very inexpensive. At the same time, the dividend yields have been on the rise. In fact, despite the weakness in into the election, nearly every subcategory in the Health Care Industry delivered better than expected numbers this earnings season. So if the Health Care Stocks have become too cheap to ignore, where should you put your money to work . First let me just say that you need to avoid the price war situations, and that includes the drug distributors like amerisourcebergen, cardinal, mckesson. They were all up today, big. So use that strength to scale out, d some Pharma Companies are facing some price competition novo nordisk, eli lilly, mylan. Novo nordisk is really the poster child here. Theyre facing both price competition on insulin and public shame for past price increases on the same darn products. If you own these, reposition. What works, then . For starters, i think merck is one of your best bets. Heres a company thats gotten a lot of good news lately, anticancer franchise, keytruda. Merck is now in the lead when it comes to nextgeneration cancer drugs, particularly after the public setbacks in the bristolmyers competing oncology formulation opdivo. Merck rocketed up 6 today on the Election Results but even after this move, its only 16. 5 times next years earnings estimates. Solid 2. 7 dividend yield. That is too cheap. Buy, buy, buy. How about pfizer, pfe . Heres a stock thats facing terribly negative sentiment in recent months, but i think the mp with huge Free Cash Flow. Granted, pfizer soared 7 today, but the stock is still five points off its highs. Its trading at just 12. 3 times next years earnings estimates. I regard that as very cheap, especially again considering the 3. 7 yield. Third, ive been a fan of celgene investors circle right back to the biotech today, causing it to spike up close to 11 . Its now not my cup of tea up so high. But even at these levels, celgene is down more than 20 points from its peak in july of 2015, and some of these declines company. Part of it may be because investors got used to celgene beating the numbers every time it reported. But in late 2015, early 2016, the company only managed to meet the numbers. Still when they reported again a few weeks ago, they were back to their old ways, blowing away the estimates. In the end, this is a company with 27 revenue growth. Yet its selling for just 17. 1 times next years numbers. That is absurdly cheap, people, even after todays run. It feels like something good is happening there. I havent been able to pin it down. Tarred and feathered stock along with teva and mylan, and it missed its earnings estimates because of some pledges not to raise some old drug prices. I was unhappy. Now, i dont expect price increases. The ceo has said theyre not going to do them, but it has gotten ridiculous that allergan is the Fastest Growing major pharmaceutical stock with the lowest priced earnings multiple. Believe me, i love yield. But give me growth any day of the week. Allergan has growth in spades. I trust the ceo to deliver a ton of new drugs in 2017, and i hope he comes here very soon. Finally, i think its worth noting that Walgreens Boots Alliance sold off yesterday on the commentary from cvs. But one of the main problems with cvs is theyre losing money to walgreens. Plus we know the earnings were excellent. Now, today walgreens regained all the ground it lost yesterday. But with trump taking the white house, i think the prospects get even brighter. Why . Its more likely the companys rite aid acquisition will pass muster with the regulators once president obama is out of fi so let me give you the bottom line. Ive been telling you we can figure out how to make money regardless of who wins the white house. With last nights surprise trump victory, things are looking a lot better for the Health Care Cohort even after their rally today. Theres still plenty of subsectors within health care that have their own problems. But if you know what youre looking for, i think you identify longterm winners. Im talking about merck, celgene pfizer, allergan, walgreens. These stocks all worked hard today, and while of course i prefer a pullback, you know thats me. Denouement of 2016, i dont know if youll get a big one. Plenty more mad ahead including the future of chipotle, which i know you do care about. Is a turn coming for the battered burrito maker . I got the cfo. Plus what impact will the election have on the american oil and gas industry . Tonight ive got one of the best and brightest executives in the space to tell us about it. But first, seven questions floating around wall street that could bring this postelection rally to an end. Not ignominious but still an end. Stay with cramer. Why am i so devastatingly handsome, im in a fragrance. Ad, and my sweethearts gone sayonara. This scarf, all thats left to remember. What she washed this like a month ago hows a guy supposed to move on wi 80 of recurrent ischemic strokes could be prevented. And im doing all i can to help prevent another one. A bayer aspirin regimen is one of those steps in helping prevent another stroke. N regimen. Were going to prove just how wet and sticky your current gel antiperspirant is. Now were going to show you how degree dry spray is different. Degree dry spray. Degree. It wont let you down. coughs cough doesnt sound so good. Take mucinex dm. Ill text you in 4 hours when your cough returns. One pill lasts 12 hours, so. Looks like im good all night some cough medicines lasts 12 hours. Lets end this. Far be it from me to throw cold water on any delicious rally, relief or otherwise. But a week from now, we will probably not be talking about a magnanimous donald trump and a gracious Hillary Clinton around here. We may not even remember that is the strongest in 2016. Im not saying theyll be pointing fingers anymore or trash talking every minute. Im saying well be stuck in a world of some unknowns. Those unknowns will be a source of anxiety and therefore selling. When the euphoria dies down, heres what well be thinking about. First how independent will the Federal Reserve be under President Trump . Will janet yellen finish her term . Will trump break with protocol and denounce them for keeping rates recklessly low . Thats a bad headline for th two, we think that trump will green light mergers, right, because theyre really good for business. But what if he says theyre all anticompetitive and hell appoint people to block them like he wants the time warner at t tieup blocked . Maybe he puts a stop to the Big Health Care mergers like humana, aetna, and cigna anthem, which are already being contested by justice. M a has been a major prop of this market. We dont want it to go away. Three, what if trump is true to his word and manages to convince mexico, but they arent coming back. Instead we get higher prices and inflation, not positive for stocks. You may not like the jobs they take away. I dont. But you certainly might like the cheap prices of goods that nafta makes possible and dont want to see them go away. Four, who is going to be the treasury secretary . What if he picks someone from out of left field, i mean a real rebel . So much for the Big Bank Stock rally. Five, what if trump starts a trade war . Its one thing to bust nafta and demand fair trading. Weve been on the losing end of our trade defo example, we let the chinese trading partners make stuff and pollute the hell out of the environment which then wafts its way over here. Then they ship the product over here under cost to keep their jobs and take ours away. Thats been the procedure. But what if the chinese decide to stop buying boeing airplanes . What if the communist party stops allowing starbucks or yum china or nike or under armour to open stores or sell goods . They could do that. Its the communist party. United technologies. Maybe they say no to our diapers, baby formulas, shampoo, toothpaste or take away slots from our airlines or slap tariffs on our cars. If that happens, the earnings estimates will be slashed for many of the stocks that rallied today. Six, what if the move in Interest Rates keeps accelerating . Mortgage rates go up too fast, housing does get hurt. Those housing stocks already were jarred today. In the meantime, the bond market equivalent stocks, the big Consumer Packaged Goods Companies with high yields and trusts and the utilities, well, their stocks will be annihilated. Finally, what happens if we start drilling for more oil at the same time the dollar soars because of our higher Interest Rates . An americanmade glut in oil has typically meant lower stock prices. A stronger dollar clips earnings estimates for the Big International enterprises. Im not saying be careful for what you wish for. This rally was terrific. My bottom line, im simply sobering narratives. Dont get cocky. Relief rallies dont last when faced with a new set of facts unless the facts are bullish. Otherwise, they just tend to fade away. How about mike in my old home state of pennsylvania, mike. Caller hi, jim. Mike. Caller jim, because of proposition 61 and constant pressure to lower Prescription Drug prices, should i sell or hold most of my pharmaceutical squibb . No, no. You dont have to part of the new regime that we got today is a regime that i think will look the other way at price increases. That was then, and this is now. New page. Obviously they can investigate, but if the republicans own the house and they own the senate and they own the white house, its just not going to be a focus. I think theyre going to think theres other things they got to look at. I think youre kind of home free. How about vince in illinois, vince. Caller hey, jim. Caller due to the possible repeal of obamacare and no longer medicaid expansion, what do you think about wcg, Wellcare Health plans, which specialize in managed medicaid plans, and unh, United Health care . I dont think you need to be in these. I think theres so much in the Health Care Group that is now suddenly working, why are we courting this kind of thing . Why cant we go and buy allergan, which to me is the company that was considered to be the worst actor yesterday, and today may be the best actor. Lets go for the flip. Today the market basked in the glory of the smooth transition of a democratic government. Just like every other time. But when the honeymoon is over and washington gets back to work, things could change quickly. Please dont be foolish. Nobody ever got hurt taking a profit. Still more mad money ahead including the outlook on chipotle. Are the turnaround efforts working . Ill give you an update on the stock in my exclusive with the company. Trump administration . My exclusive with an industry executive who has nailed it, gotten it right. Plus, a finally the election is over special edition of the lightning round so stick with cramer. Ally did ss of dollars on my Car Insurance with geico. I should take a closer look at geico. Geico has a long history of great savings and great service. Over seventyfive years. Wait. Seventyfive years . That is great. Uh, yeah i have an early day tomorrow so. Wait. Almost there. Goodnight, bruce. 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Last night i argued the dramatic slowdown in the Restaurant Business in recent about the election. Thats only one piece of the stayathome thesis and there are plenty of other headwinds. Cheap groceries make home cooking less expensive. You can get all kinds of entertainment without leaving the house, and theres way too much competition in the restaurant space. Throw in an additional problem on top of these, and it gets even harder. Consider the case of chipotle, the once beloved chain with a stock that went into freefall a little over a year ago thanks to a series of widely publicized health scares. When chipotle last reported on october 25, the Company Earned 2 its revenue also came in lighter than expected, falling nearly 15 yearoveryear. Even worse, chipotles samestore sales declined by 21. 9 . That sent the stock tumbling from 405 to 360. However, given that the food safety issues that first occurred last october, chipotle is going to start facing some much easier comparisons going forward. As i have said many times, maybe a dozen times, it typically takes about 18 months for a this kind of health scare. If thats the precedent and it holds, things should start to pick up in the next five months. Plus if im right that worries about the election have been preventing from eating out, its possible the whole industry to get a boost going forward. Has chipotle fallen to the point where we can start thinking about a bottom . Lets check in with jack hartung, the chief Financial Officer of chipotle. Mr. Hartung, welcome back to mad money. Thanks for having me. Jack, we have been saying that theres just been this kind of national ill will, malaise going on, not unlike 1979 with jimmy carter where people didnt want to go out. They were hunkering down. Any chance you think now this election is over, it could be a era of, lets say, better feeling . I hope so, jim. I know theres been softness generally. We faced our challenges throughout the year. But generally in the restaurant industry, theres been a softness. I think theres been a lot of distraction with the election, a lot of negativity with the election, a lot of just concern about the election. Our daily lives and, you know, hopefully that means a lot more dining out as well. Chipotle has always been pretty independent of washington. Youve always treated your employees in a different way. Youre not a minimum wage shop. Does it impact you . You know, two houses, both the senate and the house being republican and the president. Is there any just i mean regulation, kinds of things we hear about in the regular news, matter at all to you guys . Probably not, jim. Anything that affects us, lets say its on minimum or regulation, its going to affect every restaurant out there. So we feel like as long as we do a great job with hiring the right people, training them to deliver an excellent experience, and delight our guests when they come in, if things like minimum wage or other things that allow costs to creep in, well have the opportunity with our economic model, especially as we restore it after recovering from the events of last year, well have the ability to either absorb those into our model or to pass on some of the higher costs to our customers. I think were in the same boat as everyone else. I dont think theres anything restaurant company. When i was looking at your last quarter, you put out the notes. I was trying to figure out why did you make it so hard for yourself . You put out projections for 2017, 195 to 210 restaurants, samestore sales growth in the high single digits. Why make it so difficult . I mean its been a tough time. Its really hard to forecast. Youre spending all this money being sure youre number one in food safety. You have to retrain people. Why make it even tougher by putting out projections that just make it so its actually, you know, an additional strain yeah, you know, those are some stretch goals, jim. Two things that we heard from our investors. We kept in close contact with our investors throughout this past year. In fact, we just came from a couple weeks of meeting with all of our largest investors. Two things we heard over and over again is they didnt really have visibility into the trends, either the sales trends or the margin trends. The other thing they asked is what is the earnings power . What is the margin and the earnings power based on this sales level . Our sales. Its not a matter of if but more, you know, when, over what time frame. But we got this question about how can you give us better visibility . And what is the earnings potential in both margin and then in eps, you know, terms, at these current sales levels. So we put together an internal plan, and we decided that we felt confident enough that we can put a stake in the ground in terms of what we think we can do from a sales standpoint. We put for next year, which is the high single digit s a continuation of the recovery. And the recovery is happening at about a 1 per month range. We wish it was faster. But if we keep it on that range, we think we can hit that sales pattern, and we think, you know, we havent really focused on driving efficiencies in the restaurant this year. Weve been focused on recovering and then delighting customers. The last thing we wanted to do was try to overmanage our food costs, overmanage our labor costs such that we would deliver a less than great experience. Now its time for us to start to items. We think we can do a better job in terms of negotiating our contracts and how we buy things like gloves and paper and things like that that dont affect the customer experience. We think with all that together, with our company rallied around driving those initiatives, we think we can deliver on the 20 margin and the 10 eps. Theyre not going to be easy targets but we owed it to our shareholders to put something out there in terms of what we can deliver. One thing im concerned about is i love look, weve b i love that. Thank you. Glad to hear it. I always love the fact that you guys are focused on trying to get the best tasting food and having it fresh. But now you got some rowdy shareholders. Youve had to hire a banker. I mean these are the distractions that i dont want to see my chipotle have. Are you able to get past them . Are these rowdy shareholders okay, or do they want you to again, weve been in close contact with all of our shareholders, including weve had productive dialogue with the Pershing Group as well. Everybody is on the same page in terms of wanting to restore chipotle to our previous greatness. What that means is recovering customers, recovering sales, and then recovering our industryleading economic model. Thats true with the investors that have been with us for a long time, some newcomers who have come on and bought our stock at these low prices, the dialogue weve had with pershing has talked about driving longterm shareholder value, talks about recovering the business model. From what theyve said so far, they believe that chipotle is a special brand, and were going through a tough time right now. And, you know, they want, just like everyone else, to see us recover our sales, recover our business. If we do that, were going to get back to our previous stock price and add shareholder value from there. Aligned. Nobody likes the pace that the recovery has happened, and im happy to hear you say its more likely to take 18 months. But, you know, all of us wish, including us, wish that this was further along. But all of us are on the same page in terms of lets get the recovery under way, and if we do, that the stock will take care of itself. We had greg creed on, i usually dont like to talk about taco bell in the same breath. Its a different industry. But theyre taking out some of the preservatives. Fresh, natural, organic. Jack in the box, you know, has done a little bit better. Do you have to worry about competitors you had left in the dust because of this difficult time . No. In fact, we love the fact that other Restaurant Companies are looking to sustain to buy more sustainably raised ingredients, more Natural Ingredients and remove some of the artificial ingredients out of their food. We feel like weve been a pioneer in that. We think the more customers are how theyre cooked, the more discerning theyre going to be. The most discerning customers, the more they learn, we think theyre going to come to chipotle. We applaud the fact more and more customers are trying to follow our lead. Do i have to worry at all the buyback has tapered off a bit here . The way i would think about the buyback, jim, is we used our Balance Sheet when the stock really inflected and pushed down after the events of last year. We used our strong Balance Sheet and brought about a billion dollars worth of stock from our Balance Sheet. Flow. Even though were in a weakened state from our margins and earnings standpoint, were still able to fund all of our openings with internal capital and then have excess capital to buy our stock back. So were buying more based on operating capital right now. Well be able to, as we restore the mod and restore our margins, well have even greater excess Free Cash Flow and be able to buy at an accelerated rate as well. Well continue to buy back stock, but its going to be more based on excess operating cash flow. You never decided im not going to talk about it. Youve been very straightforward with our viewers, and you know we think Chipotle Mexican Grill will come back. Thank you so much, jack hartung, cfo of chipotle. Good to see you, sir. Thank you, jim. It is bottoming. But remember the time frame. Weve traced it out many, many times. It is not ready to take off yet in my opinion. But, boy, its good. Mad money is back after the break. It was love at first touch and all you wanted to do was surround them in comfort and protection thats why only pampers swaddlers is the 1 choice of hospitals to wrap your baby in blanketlike softness and premium protection mom . Oh hi baby . So all they feel is love achoo you can pick up the flu from surfaces for up to 48 hours. Its like having a sick Family Member in your home. But lysol kills 99. 9 of germs including 8 cold and flu viruses. To help protect your home it is time it is time for the lightning rapid fire. You tell me the stock. I tell you to buy, buy, buy or sell, sell, sell. Well play this sound [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning round on cramers mad money. Lets start with sam in north carolina, sam. Caller booyah, jim booyah. Caller what about exr . When do i get in . No, no. Rates are going higher. Thats that whole point about what happened today with the tenyear bond. So, no. Were going to stay away from that stock until we get a bit of higher yield by having the stock go lower. Madge, in maryland, madge. Caller hey, jim. Love your show. Thank you. As baby boomers age, thers in real estate including medical Office Buildings and assisted living facilities. I wanted to know what your advice is for investing in health care right now im a little down on medical buildings. Theres some weakness in the sector. Were going to stay away. Just dont need that risk to pick up a little bit of extra vig. Lets go to john in california, john. Caller hey, booyah, jim. We love you here in northern california. Your San Francisco show was great. I cant wait to get back out. Im trying to get my second caller there you go. My question, jim, my ceo of the company im going to ask about was pretty supportive of hillary, and she lost. Berkshireb, Warren Buffett, what do you think the outcome is going to be with some of these people that didnt support trump . Absolutely nothing. In the end, i dont know how magnanimous hell be, but i know Warren Buffett knows how to make money. He makes money in any kind of situation and hes also a great american. Lets go to nick in californ caller hey, jim. Booyah. Booyah. Caller costamare, buy or sell . Oh, no, man. Thats a container ship play. We dont like the container ships. That, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] announcer the lightning round is sponsored by td ameritrade. Whoa, this is awful, try it. Oh no, that looks gross what is that . Its like mango chutney and burnt hair. No thank you, i have a very sensitive palate. Just try it guys, i think we should hurry up. If you taste something bad, you want someone else to try it. Its what you do. I cant get the taste out of my mouth if you want to save fifteen percent or more on Car Insurance, you switch to geico. Its what you do. Shhh dog, dog, dog. coughs cough doesnt sound so good. Take mucinex dm. Ill text you in 4 hours when your cough returns. One pill lasts 12 hours, so. Looks like im good all night some cough medicines only last 4 hours. But just one mucinex lasts 12 hours. Lets end this. Going to the skate park today . Maybe. You can make it grrreat o all in and let your great out. Theyre grrreat ve been on im bushed my feel alyea me too. Excuse me. Coming through ride the gel wave of comfort with dr. Scholls massaging gel insoles. Theyre proven to give you comfort. Which helps you feel more energized. All day long. I want what he has. For months ive been telling you that even with the price of crude fluctuating in the 40s, i like Oil Companies that are selling their own stock in order to spark acquisitions in some of the most lucrative places to recently carrizo oil and gas joins that club. Its a small 2. 4 billion independent Exploration Company with operations in the permian, Delaware Basin there, the utica shale in ohio, and in colorado too. The company is one of the lowest cost producers in the country, all right . In late october we learned it was buying 15,000 acres in the eagleford shale from sanchez energy. Needed the money, those guys. 181 million in cash. In order to pay for the deal, the coy now, after that secondary, the stock pulled back, but last week carrizo reported a solid quarter. After todays rally, shares are nearly back up to where they were. I think this is the right strategy. Can carrizo continue to rally . Lets take a closer look with chip johnson, the president and ceo of carrizo oil and gas. Mr. Johnson, welcome back to mad money. Glad to be here. Thank you, jim. Chip, just got to ask the obvious question first because a lot of people who feel whos in ive looked at your business for a very long time. I think what matters to your business is how smart you guys are, your ingenuity, your low cost, and your findings. I dont know whether it matters whos present. Would you agree . Your 90 right. It never hurts to have rules and regulations go away that just slow us down. You know, i think the republicans are always going to be a little more business friendly than the democrats, so that could work out to our advantage. Will get built that will reduce rail traffic. And it does seem like that the pipelines are very necessary. I saw some of the pipeline stocks up. I dont think people realize that we still have oil and gas in the wrong places versus where we need to send it. Thats exactly right. Youve got oil in north dakota, and its a long way to refineries. Its a long way to get it there by rail. Lets talk about the strategy that you did because this is what ive been urging companies to do, and you do it. You bought some really great acreage from a company that spent a lot of money when oil was a lot higher, and then you issued stocks. Kept it so that your Balance Sheet is pretty pristine, and you can do another. How are you feeling about that trade now that youve been into it for a while . Were very happy with it. We bought acreage that adjoined our leases, so it makes it easy for us to drill longer wells across the lease lines. It made some of our acreage that was undrillable now drillable. We feel like we bought the acreage based on one layer of might be two or three. It was a very nice deal for us. Weve been working on deals like this for a year and finally got one to go. Chip, i think that people think that Oil Companies are all created equal. When you look at your deck, at your slides, its really clear you have much lower finding costs. So when you take a sanchez property, are you able to put those same Service Costs to work there to make it so that you can get oil out of the ground much cheaper than everybody else . I think theres some thirdparty Research Groups that have said we have the lowest breakeven cost in north america of every company, at least in 2015. Hopefully we can apply that. Sanchez did a good job keeping their drilling costs down, but these properties were scattered for them, and they are core for us, and theyre right next to our properties. So we can bring the operating costs down too by just scaling up their assets. A lot of companies were just kind of growing for the sake of growing with whatever the price is, 40, 39, i thought it was very interesting that you said at one of your conferences youre not going to leave money on the table. That youll grow when its right. You think that oil can go higher because youve got a really good debt situation. Thats when youll choose to grow. Thats still your strategy, right . Thats still it. By doing this equity deal to pay for this acquisition, it was accretive, and it also delevered us somewhat. So now our year end debt will be probably somewhere around three, which should put us better than add a drilling rig next year. We dont have to yet. The wells were drilling right now would make almost a 50 rate of return at these prices. We feel like by the end of 17, the worlds supply and demand is going to be in equilibrium. At that point, oil prices are going to start up. We know right now Service Costs are very low. Wed like to tap into that, drill and frack now while were at the lowest service cost we may ever see, and then produce into that Rising Oil Price next year. Notes, i did feel you had the highest of quality problems, chip. You seem to indicate its possible that you hedged too much of your upside for next year because you really do believe in 2017 as a comeback year. Thats exactly right. Weve hedged strongly in the first half of 17, but weve tapered that off in the second half of 17. We dont want to have Oil Prices Ramp up too fast and leave us locked in at lower prices while Service Costs are also going up. I want to circle back because it is election day. The way. Carrizo, pretty straightforward company. What were some of the things that were being placed in your way or you feared that now maybe have a chance of not occurring . You know, actually for carrizo, theres not much. Were basically in states where we dont have much federal acreage and not a lot of federal oversight. We mostly work with the states. It was nice to see in colorado, though, that the raise the Bar Initiative passed that makes it harder to put Ballot Initiatives on the ballot every year to try now it almost has to be statewide interest in having that be on the ballot before it can happen. That will help us up there. Im going to congratulate you. Never ruined your Balance Sheet, never pumped when you didnt have to. Chip johnson, president and ceo of carrizo oil and gas. Great to see you, sir. Thanks, jim. Chips serious, knows how to run an oil company. I like that. Stick with cramer. Hey hey ahhhh. Charades . Yeah, let me check my score too. Try credit karma. Its free. Check out credit karma today. Credit karma. Give yourself some credit. I had frequent heartburn, but. My doctor recommended prilosec otc 7 years ago, 5 years ago, last week. Just 1 pill each morning. 24 hours and zero heartburn, its been the number 1 doctor recommended brand for 10 straight years, and its still recommended today. I like tm jim cramer. Overnight, thousands of demonstrators take to the streets inie to protest donald trump as the nations 45th president. Bitter rivals come together as they come facetoface at the white house today, all to plan the transition of power. Setting the agenda, trump will meet with a speaker as the enemies try to turn the page of working together. Plus the trump decision has