Transcripts For CNBC Mad Money 20150319

Im talking about the pellmell rush to judgment we undergo every day when we forget how positive the vast across the board decline in Commodity Prices is for our country. Something that will be overlooked again today with the dow sinking and the dow is backsiding although lets set the stage. We have had to endure horrendous bouts of commodity inflation. Its one of the most insidiously destructive economic forces in the market. When you get bottlenecks because of supply tightening and rapidly rising Commodity Prices because of demand acceleration. The reverberation of that particular kind of inflation the pinnacle pin action of it creates a very treacherous stock market. When its the reverse though with Commodity Prices spiraling down and down big as they are now, that gives you a benign market. A positive one, less by a host of earnings disappointments, coupled with Interest Rate hikes to break that kind of inflation that can slay any bull even a rager like this one. Its so many people seem to think otherwise. First, how do i know this . Well, in 1987 we experienced a bout of breathtaking commodity price increases. Major producers of all sorts of goods were raising prices repeatedly. Sometimes each week. I recall monitoring the prices of the two most commoditized products there are in the land. Uncoded free sheet paper the kind you stick into your printer and container board, the stuff your amazon packages come in and marveling at how you might get a price increase every single month. Sometimes intramonth. I got the new pricings up from my late father. Who sold stone container and International Paper liner board. And he was aghast at how expensive it was getting that year. How quickly the price increases were coming through. Sometimes hed call me within the same week to tell me of a new price increase. The same with chemicals. I used to monitor polieth lain and the price list couldnt be updated fast enough. I used to get the material that directs completely with plywood to stay current with the lumber market which i also followed. In retrospect i was not the worlds most interesting man. All these price increases were absolutely fabulous for a handful of chemical and Paper Companies that my hedge fund owned when i was a hedge fund manager. I scored big hits with georgia pacific. With vista chemicals. With reynolds metals. Amex. All now swallowed up or obliterate obliterated. They made for some amazing hedge fund performance. But the whole endless ferocious complex rally was just ghastly for many buyers of the commodities and you could cut earnings estimates with impunity. Particularly for the big Package Goods concerns that bought this stuff. The household names. The proctors, the heinzs. What happened in 1987 after they piled on top one after another for the first three months of the year . What happened. How about a stock market crash thats what happened. Okay so maybe it wasnt the main cause. But it was the plox matt one. I never forget about how you have to fear the rising commodities. I hate commodity increases. Theyre a disaster for stocks because raw costs impact Gross Margins and declining Gross Margins almost always lead to the declining prices. Then in 2008, we had a spike in commodities that was just incredible. Alcoa traded all the way up to 45 on endless strength of aluminum pricing. And potash fell down to 80 in 2008, a Straight Line as Agricultural Commodities soared. Peabody energies skyrocketed from 34 to 88 during that same period. As analysts declared a beginning of a coal super cycle. Freeport copper and good not to be outdone u. S. Steel zoomed up. The biggest iron ore producer shot up from 19 to 120. Iron maker, not exactly the facebook of iron ore either. The run away Commodity Prices that propelled the moves were among the major reasons that the Federal Reserve tried to stop the price increases. The result . Another crash. S p 500, it was cut in half. Pricing was obliterated. The house of pain. And none of these stocks ever even remotely recovered. Alcoa is at 12. 96 down from 45. Cut by three quarters. Aluminum was hammered mercilessly. Potash has been clobbered back to 32 as corn collapsed taking the entire agricultural complex with it. Peabodys plunge from 88 to 5 . Thats the stuff that portfolio tragedies are made of. So much for the coal super cycle. Freeport round trip back to 17. Copper went to a glut in immense proportions. U. S. Steel has shed a remarkable 172. Shriveling into the 22 stock from where it was. Cliffs natural has lost 160 points. Guys, this isnt the greatest bull market i have ever seen. These declines and now trades at the low price of 4 bucks. Some analysts are questioning the viability of the firm as its currently structured. Somehow though perhaps because everyone is such a wise guy economist macro stock maven we have a daily debate about the declines and what they mean for the stock market. Even though its dreadfully clear from the litany i gave you that commodity spikes preceded it, we questioned if it was a good thing. I hear it all day. And dont vip get me started on the price of oil. What that means for the average consumer and every Small Business in the land. They get higher, they can end more. They can go out to dinner regularly as the numbers show they are. Watch for darden reports. The owner of olive garden put up good norms tomorrow. The previous ceo came son the show soon after we started and said that gasoline is is the we determiner of gas size and traffic. And guess what key Leadership Group is back again the airlines where i like southwest, spirit and american air in that order. With oil this cheap, do you think youre more or less likely to take a trip to disney world in your car . And of course buy a ton of souvenirs while there. And you wonder how that stock can keep powering higher. Now look, i know that a crashing commodity can be terrible for the states in this country that produce the commodities as were starting to see some weakness in the statistics from the Federal Reserve in texas which came out with some numbers that i wasnt too fond of last night. But people in the bock and shale are finding it out. Sunflower oil looks like its holding up better than petroleum. Some companies will go belly up although you have to be shocked at the resilience of the oil and gas stocks except for the most overstretched as well as anything connected to off shore drilling. The result of a major overbuild back when oil was at 100 going up to 200. The huge drill ships took forever to build. They wont be cancelled in the middle of the stream. We use the baltic freight index which measures chinas raw goods and traffic has been cut in half of late. Its showing signs of stabilizing but at a low level. If the chinese economy were to pick up the pace wed see some slack taken out of the system. And china appears to be dumping excess steel around the globe. But bad for everyone who makes things out of raw goods means good for thousands of companies. If youre producing steel, think about where that steel goes. Cars, trucks. Okay . All of those companies they pay less for that steel they have expanding Gross Margins. In the end though when the dollar stops going higher and it will youll see estimate raises across the board from the big corporate consumers of the commodities, meaning just about every single manufacturer out there. Kimberlyclark proctor and gamble and cocacola, and how do you think this commodity collapse makes the fed feel . You can say that janet yellen is soft on inflation. I heard that all day after she didnt raise rates yesterday. I mean target just started paying its workers an astounding 9 an hour. But most of my investing life the fed has had to raise rates to the kind of commodity inflation i described. So whats the point of a rate hike if commodities are cooling down on their own . So yes, i am telling you dont sweat the commodity program. Dont worry about the declining Commodity Prices. In fact, my bottom line is that the lower commodities go, the better the profits for all who buy them and use them. And there are a heck of a lot more consumers than producers in the s p 500. Lets go to ren in south carolina. Ren . Caller hey, booyah jim. How are you . Booyah right back. Whats happening . Caller hey, doing pretty back. I want to make a quick shoutout to my friend daniel and you and my skype group. All a bunch of wall street monkeys looking up stocks all the time and i had a question about verifone systems. Sure. Oh, yeah definitely. They had a great quarter. Really it was a great quarter. Great backlog. Bad currency. You know what . I think were starting to look through some currencies and look at nikes numbers. People arent focused that much on the currency then. I think verifone is doing amazingly well. A terrific opportunity because they have the right point of sale terminal for the new kinds of cards that are being rolled out across the globe. All right. Im telling you dont focus on the wrong things. Let it be known the lower the commodities, the better the profit. On mad money tonight its the biotech thats got everybody buzz, soaring over 500 this past year. Then what the charts now say about the state of this bull market ride. Is the running done . Maybe its getting started. Plus, no more waiting in line in starbucks. They have a big Delivery Partnership that can change everything. I have the man behind postmates the hot startup that just landed the deal. Stick with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Take a deeeeep breath in. And. Exhale. Aflac and a gentle wavelike motion. Ahhh ahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim before i knew it. Ahh so he had your back . Yep. In just one day, we approve and pay. One day pay, only from aflac. [duck snoring] earlier this week i told you that this market is giving you opportunities. Many of the stocks they dont know when to quit. Take the turbo charged rocket thats esperion, the 2. 3 2. 3 billion drug developer, and has a pill thats designed to lower the levels of cholesterol in those who cant take the statins. Esperion tripled from last year and to the beginning of this week, the stock rallied another 90 . Then Tuesday Morning the Company Announced phase two data and the stock soared from 77 to 99. At that point you might have thought that the run was fitch finished. No, you would have been wrong if you thought it was over. This secondary priced at 100 per share. If you got in on the deal well you made 10 . This is an incredible stock. So best of all, you could have easily captured these gains after we spoke to esperions ceo two months ago, so can it keep going . Well hear more about the company and the anticholesterol drug. Welcome back. Thank you, its nice to be back. I have seen anything like your stock and i have to believe thats because some people must think that your pill can either take the place of or add to all of the staten the people who take statins now or fill the gap for those who cant take the statins. Isnt that the only explanation for a stock thats going like this . You know, i dont know the explanation for the stock activity for sure. But we are very excited about the drug that were developing. Its got a particularly unsexy name. Etc 1002 but we think its one of the most attractive drugs in development in the industry today. Because as you said, it can lower ldl cholesterol not only as mono therapy, but also in combination with statins as we showed earlier this week in a very, very positive trial. Not only is it efficacious on top of statins, jim, but in addition to that it was very safe and well tolerated and of course thats vitally important for patients who are taking a medicine like this or could take a medicine like this for the rest of their lives. Lets put myself in the shoes of the fda. The regeneron drug, you dont have to go to the doctor and you can selfinject it and it works. And so far the Health Profile is pretty good. Why would i say to esperion i have to fast track you when i have something and you guys can take your time. Do it right. Arent you afraid that the fda isnt going to do me too with you and rush this . I dont think were looking to rush anything. We are very seasoned Drug Developers as a team, at esperion. And we have been developing this drug in a very forthright fashion, carefully, but also very quickly. And so were not looking for the fda to necessarily rush this. We are looking to move it forward, and we had been working cooperatively with fda to do that. What we like to say is that we hold the radical belief that patients will prefer an oral once daily pill rather than having to selfinject or as or go to the their doctor for an injection. But i think the convenience of oral dosing is really important to patients who have to take a medicine like this for the rest of their lives if they have elevated ldl cholesterol. I want to go over again, theres no incidents of any sort that is any different from what regeneron and amgen experienced with theirs . Nothing life threatening . We are in an earlier stage of development as you indicated earlier, regeneron and sanofi and amgen are going to be up for approval for their therapies this year, but having said that we have not seen anything of significance in our Clinical Trials and in fact the drug has been very well tolerated. In fact, you know we have been saying as well tolerated as placebo which as you know is a sugar pill. Sure. Nice safety intolerability profile. I was skeptical initially only because esperion was acquired by pfizer for 1. 3 billion. They stopped did they not stop the development of this drug . No. Jim, the original esperion was focused on drugs to raise hdl. The so called good cholesterol. This drug was discovered and patented at the original esperion but pfizer did not work at it at all work on it at all during the time we were part of pfizer. And when roger who is our a good friend and colleague and cofounder of esperion realized that pfizer was not working on it he saw an opportunity to get it back. And so pfizer effectively sold it back to the new esperion and we have been running with it ever since. Well, this is babe ruth going from the red sox to the yankees and, you know, the red sox i think had a degree of remorse. Tim, thank you so much. President and ceo of esperion. Congratulations. You came on, you got a lot of people to buy who felt the power of your conviction and bought the stock. Thank you for being on the show. Thank you. Okay. What can i say, esperion is not done. This drug going to be worth multiple billions. Who am i to disagree . After the break ill make your money. Coming up, on demand. Starbucks announced a deal to bring fresh brew to your door. The delivery opportunity with postmates they have a Significant National infrastructure. Cramer talks to the man behind the superstar startup thats disrupting delivery. So how do we get a read on this volatile one day up one day down see saw market . Where there are so many rip tides, you know what i think its worth considering the technicals to get a more quantitative view of the situation. We have the cofounder of the decarly trading and being my colleague at real money. Com. We have to try to figure out where the s p 500 is headed. Garner thinks after the terrific run we have had in february the recent weakness in the s p is a temporarily dip. And in her opinion the markets are neither overbought or oversold but in the middle and she expects it to continue to work it way higher. Seasonally garner said were entering a good time of the year. The s p 500 rallies from mid march to late april. In fact, if you bought the s p on march a 15 and sold it on april 29 did you know that you would have made money in 13 of the last 15 years . Hey, that cant be coincidence. Thats too good of a track record. Beyond the season factor though, take a look at the s p 500 daily chart because garner likes what she cease seeing here. She points out that the s p has a strong floor of support around 2440 or 49, you see that right there . 49 points below where its currently trading. This is the line of support and were right here right now. Remember she said neither here or there. This is tested last week and it held. Garner believes we can hold above, it will be higher. Even though there will continue to be day to day volatility. And in fact, not only does garner think the recent weakness in the s p 500 is merely temporary, she has some evidence that leads her to believe that in spite of the action the broader downdraft may be over. Why . Look at the relative strength index or rsi down at the bottom of the chart. This is a momentum indicator that helps charters predict changing trends before not coincident coincident but before they happened. Every time the s p has been slammed its fallen down and then the rsi snaps back and the s p recovers. So you can see you get this ahead of this snap back. All right . And well last week when the s p was testing the lows at 2040 the rsi dropped down to 40. The level it often marks the bottom over this past year. Since then the rsi has been rebounding. You see that little rebound . And the s p has worked its way higher too. Although its done so in typical two steps forward, one step back fashion. At this point garner thinks that the path of least resistance for the s p should be higher. How high . Well, here we go. Check out the s p 500s weekly chart. All right, garner thinks that the long standing uptrend could drive this index all the way up to 2170. Remember were right here. 2170 or 2180 which would represent a nearly 5 rally from the levels. We want to catch that. She has trouble believing the s p will be able to push above that level, so we quickly rally to 20170, dont be surprised. What if something terrible happens . And flareup of violence in the ukraine . In that case its possible that the s p 500 can fall below 2040. This is a little tighter picture of it. And if that happens, fortunately garner says we have all these other levels of support. 1987. Theres a 1947. Still another powerful floor of support at 1880. Now garner doesnt expect to see that kind of decline and if something bad does happen she doesnt anticipate the s p falling below the 1940 mark. Even if we get a severe pull back she says it will be likely temporary. Heres the bottom line. The charts indicate that all the volatility lately the bull is still alive and well. Garner believes this market will continue to work its way higher. Although at the s p 500 gets too high, approaching the ceiling at 2180 then shes going to recommend that we all be a lot more cautious. I say lets get there first. Nancy in illinois, nancy . Caller hi, jim. Really enjoy your show. Thank you. Caller we own some shares of mcd, and with all thats going on with them do you think its wise to invest more . Were looking for something that provides a good dividend. Mcdonald has a good dividend and i want some good growth. Im going to tell you that must be patient and wait for a turn of the new ceo because right now youre not going to get it. You have the fixed income look. Probably could go back to 90 and then youre fine. Understand there are other stocks that have both Capital Appreciation and what i regard as being a little bit better dividend. If you look yesterday at Magellan Midstream or Kinder Morgan i prefer both to mcdonalds. Lets be to dave in illinois. Caller jim, on january 7, your former Charitable Trust comanager stephanie link recommended holding redhead, rht, in 2015. She says she like the fact that both in the private and public clouds and she also saw some catalyst coming in 2015. Seems pricey at a 71 times earning multiple. Jim, why should we like this stock . Okay, that was when stephanie and i think shes the greatest and its jack moore now. It was Jim Whitehurst whos been on mad money who convinced me that they have got the consistent model and that the last quarter was the breakout quarter. Both steph and i were totally on the same page on that and were still on the same page now. Im not checking specifically but i have done the work on red hat and i like what i hear. Thank you for the kind comments about her, i miss her. Francis in florida . Caller thank you for all your hard work and i appreciate it. I appreciate your staff. My question is home depot. For several years i have been following home depot. And they usually make runs in the high 70s, low 80s. And during the year they broke through the 100s and now they go from like 113 to 117. I have 500 shares. Should i buy, sell or hold . I want you to hold on home depot. My Charitable Trust owns lowes and i like them too. Kelly evans has a great story to tell. You know i was partial to frank blake. Its moved a great deal and i think youll get a moment to be able to buy it more cheaply but i have to tell you, great things dont come cheap. Thats an Amazing Company with a huge buy back and a tremendous commitment to shareholders. Its a volatile market but you know what . The bull is alive and well. At least thats what the charts say. Starbucks inked a major deal to deliver your coffee. Ill get the details from postmates. And plus the last lightning round of winter kicks off with all your calls. Thank you for the kind words about the staff. Stay with us. Later this year were piloting delivery with a leading on demand delivery postmates. We believe it will be a great way to leverage the mobile ecosystem i was talking to you about. Here on mad money trying to stay ahead of the curve and if you want to understand the cutting edge, that means going off the tape. And talking to an incredibly innovative privately held company. Yesterday you probably heard that starbucks is rolling out an on demand service, and partnering one postmates. Postmates is a revolutionary mobile app thats transforming the way that local goods are transported. You can order anything from postmates from a supermarket and it will be delivered under an hour. The fee delivers fee depends on how far they have to travel. Its encredible. Although maybe not so good for your exercise regiment. Last year at this time we brought postmates on. We kind of liked the story. Back then they were only in five cities, now theyre available in 22 markets across the united states. Theyre aiming to be in 50 markets by the end of the year. But this deal with starbucks, wow. We have to dig deeper with bastian lehmann, the cofounder and ceo of postmates. To learn more about the story. Welcome back to mad money. Thanks a bunch for having me. Thanks a bunch for having me jim. Bastion when you were on, you werent public. Still not public. How did this come about . Because i know we thought, wow, we have heard of this company, its terrific. We didnt like Howard Schultz was studying it and the Technology Group felt you were the best technology. First of all, let me say it, starbucks and postmates. Wow. Were just like were all crazy in the office still. It was such a big day yesterday and we worked on this for months but to be able to talk about it, its just incredible for us. Well, i mean, i got to figure out how it happened. I mean, amazons got a service. I know that grubhub has a service but he picked postmates. Why did he pick postmates in your opinion . I think the number one reason is that both starbucks and postmates were trying and Building Companies that are really caring about either their fleet or their partners that work at starbucks and that work at postmates. I think we go through great efforts to make sure we treat our drivers and riders as a community and try to take care of them. We are a people company. Just like starbucks is. And i think thats really what connected the two companies. Well you know what we should do, well play a clip from what howard had to do. Were building a great Enduring Company and the delivery opportunity with postmates they have a Significant National infrastructure that will leverage all the things we want to do. The company won based on merit. When you were here, you werent national. But youre building up. How are you able to replicate this in so many cities . Youre really good but this has to be a herculean task. I think you have you need a good playbook and figure out what you need to launch in the city to be fast and get the operations off the ground. We understand quite a bit what we have to do on the demand and the customer side to activate customers in the market. We get better and better over the last year when we launched around 18 new markets. I think this is what really helps us to go into more cities throughout the year. And of course if you think about partnering with star bucks you can see the potential if were rolling this out to many more cities it will help the companies to grow even faster. Lets strategize. I get a latte it spends 5. 30, i wont spend 5 to have someone deliver that. But is it the idea say in a building youre all buddies, youre having a group of people over for breakfast, and, you know, you hit the app, is that what it is . Meant to be for like ten people or that kind of thing . I think it will be a very interesting and attractive price point for a lot of people. Im not sure if its only for large orders or designed just around the single cup. I think that we can hit a price point where people can have both. I think the idea of having items delivered extremely fast is it will be super appealing to people. Oh, definitely. You have mentioned at the beginning that you think you like the way i hope im interpreting this correctly, that you treat your people. That they looked at this very very closely. What do you do that maybe the other guys dont without slamming the other guys . I know chipotle feels the other way and they chose to sample with you and then they stopped sampling with you. So i think maybe sometimes the nice guy the nice guy wins. And were actually still doing tests with chipotle. So im sure there is a little bit of a misunderstanding there. If theres a problem its because we sell their food too fast. Im sure thats a hurdle we can overcome. Well, look, i want to congratulate you. This is the biggest win for a small private company, i was so thrilled to have you. So clear you had the enthusiasm. Congratulations. American dream, great job. Thanks, jim. Okay, all right. Thats bastian lehmann. The ceo of postmates. Hey, look, you know what . Maybe it could happen to you. How about that . Mad money is back in a minute. Announcer lightning round is sponsored by td ameritrade. It is time. It is time for the lightning round. You say the name of the stock. I dont know the calls or the name of the stock ahead of time. I tell you whether to buy or sell. On the fly. When you hear this sound [ buzzer ] then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning round. Im cramer. Lets start with brian in maryland. Caller mr. Cramer big terrapin booyah to you. Well the terrapins theyre the only team i have left. Whats up . Caller i want to know about bio btrx. You know what, im not going to do with that one. Thats been knocking around for a long time. Enzyme especially pharma. Doesnt have what i want which are the big phase 3 drugs that are about to go on the market. Lets go to benjamin in indiana. Benjamin . Caller hey, jim, thank you for all you did for the home gamers. Quite welcome. Caller duke energy. All the utilities have been slammed over the false fears that the fed will start raising. I will see you and raise you with dominion. Justin in california, justin . Caller hey jim, a big booyah from sunny san diego, home of the aztecs. True. Caller first time caller. Thanks for all you do. I love your show. Thank you. Caller i wanted to get your thought on the amino therapy nas named northwest bioer this a . Its a controversial stock. I have to do more work on its before i opine on that. Its one of those thats a week to week. Okay . I cant give you on i cant cuff it. Lets go to nick in new jersey. Nick . Caller booyah jim. Booyah nick. Caller im a big fan of your work. I want to know you talked about the sonic. I really like sonic. It has the best its one of the best profile of all the fast foods out there. Lets go to paul in texas. Paul . Caller booyah jim. My stock is invin sis. Im wondering what to do. You know, it has Different Services i come back with sdks. Michael in new york. Caller hey, jim, booyah. Im in chicago, bridge great guys. Terrific. But at the same time they do a lot of Energy Infrastructure work. Energy infrastructure is not a Good Business to be levered to with oil at the 42 43 level. And that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] announcer the lightning round is sponsored by td ameritrade. Sometimes the person will have such a terrific track record of being bankable that when you start a new venture you have to be on board. In 2013 the founder of darden has made us a fortune. You know its up more than 1,000 in 2009 . He founded a new Company Called platform specialty products. Oh, he did it with the big shot act havist big ackman whose pershing pershings fund owns 20 . Its kind of a Shell Company and it has a big pile of cash. Since then platform has acquired Chemical Companies with a fee cus on specialty and focus on specialty and agricultural companies. And they brought in the ceo dan leave tore run the whole company. Then last week they picked up a company for 1 billion. Most recently, platform made its biggest deal yet acquiring a company for 1. 5 billion to give the earnings a 20 boost even before factoring in the synergies. Platform is proving to be a well managed role up in the chemical space and theyre up 161 since it listed 14 months. I think this stock could keep running. Dont take it from me. Lets check in with the president and ceo of platform and hear more about his company. Good to see you. Ined to get to the i wanted to get the price of the second acquisition right it was 3 billion. Which means each time so we get all of our viewers straight on this, you have done Equity Offerings. Thats correct. Should our viewers wait for another Equity Offering because you have done six of them, or you kind of got all the money you need right know . We have all the money we need right now, but the next big deal will require more equity. Thank you for saying that. Because my next question from the report, can platform continue to make acquisitions at this pace . Theyre not skeptical. They know the Company Better than most so its a possibility. You have to back test martin. You look at what he did with jarden. This is the same model. It really is isnt it . I followed him for years. Martin came to me, i guess it was 16 years ago and said you dont understand our model. I didnt. So explain your model. Frankly, you raised money to try to figure out what to do. Then you decided to go do it as opposed to someone whos in the chemical business and then going and raiseing money on wall street. Yeah. We call it asset like high touch. Its a people oriented business as opposed to an asset oriented business. When you think of Chemical Companies you think of big plants. This is about research and development, the people of the business. That creates a moat or a sustainable competitive advantage that is sustained longer because of the people that are part of the business. I got it. You reported yesterday. But the presentation today i read. It was pretty clear that youre going up against a bunch of good companies. Monsanto. Dupont is a great company. I saw your return on capitals is higher than those. Is that because of the asset light model . 100 . Think in terms of ebita, less cap ex. If you look at the gross earnings across a series of businesses, that gives you one picture. If you look at the true cash flow generation its truly different. Let me ask you when we had the whole thing with inversions, a lot of the American Companies we had a company the other day, actavis actavis. It is based in ireland. Really in america. Your company is not a plurality in the united states. Would you be able to reincorporate given how little you have in the u. S. . No. Because were in a u. S. Owned company. Okay. At the end of the day it was a u. S. Centric business. Its a global 180 different currencies that we trade in around the world. Okay. Now, your background is such that thats not a problem. You had an International Background to begin with. The ownership of bill ackman in 20, 25 , lets say he decides that he doesnt want to own it because hes a hedge fund manager. He wants to sell it. Is that something we should be thinking that could happen and that hes taking less than longer term approach to it . No, not at all. I think that bill and his partners at pershing are long term holders. If you look at Canadian Pacific they have been in that for a long time. This isnt a typical strategy of coming in to agitate management for change. Hes a backer of martin. Are you happy at all with some are more industrial right now. And i happen to love the ag business. I love what dupont has done. How about the more manufacturing oriented parts . Well actually we like high cash flow businesses so we are agnostic as to where in the chemical space it plays. Some of the Industrial Areas like Water Treatment are interesting to us. Paints and codings might be interesting to us. But our core business at the old mcdermott was chemistry around electronic oil and gas products. And this sort of thing. Okay. So you have managed to be able to take it so that oil and gas isnt that big of a piece anymore. That part of the business tougher right now . No we play almost exclusively in the production side. So they dont stop producing and particularly where we place is deep shore off water drilling thats the last asset they take off line. What are you envigs right now . Are you trying to build the next dupont . Are you the the 15 largest Chemical Company . Take a look at us take a look at us monsanto and buy us . Were trading around 26 a share. The future is 200 a share. Bold, but you know what . Franklin Martin Franklin said the same thing and he did it so who am i to doubt Martin Franklin or one of his friends . Dan lever president and ceo of platform specialty products. 26 buck, cant beat that. Stick with cramer. Thank you, dan. Tomorrow kick off the trading day with squawk on the street. Live from post 9 at the nyse. My kids are on facebook 24 7 theyre not on jpmorgan 24 7. Let me post my pictures on jpmorgan. No i wont do that. Help an oil company overcome minus 47 degree temps, 5 foot ice, and 16 foot waves, to safely keep crude oil flowing 365 days a year. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. All right. Nike reports a terrific quarter. China good and north america good. Perhap goes through 1,000. Visa, four for one split. I know that doesnt mean anything fundamentally but this is your chance to get in at 60 and change. I really, really like that idea. And then finally Urban Outfitters pushed very hard last night. I still think it can go higher. Be on the lookout for one that i think is overextended bio gen. Tomorrow the alzheimers news. Dont buy it anymore. Theres always a bull market somewhere and i promise to find it for you right here at mad money. Narrator in this episode of american greed. Hes young, selfassured and loaded. Troy peters the cars and the houses and the money. He was living a pretty fastpaced life. Tony elgindy claims to be a crusader fighting fraud on wall street. Dave chaves he wanted to be known as the greatest short seller of all time. He wanted that following. Ken breen he had a persona that he cultivated. A bad guy gone good. But this socalled, good guy is running an Insider Trading scam. And his partner in crime is a crooked fbi agent. John nathanson this wasnt a crusade for good. It was a crusade for evil