Skip to main content

tv   Mad Money  CNBC  July 6, 2009 11:00pm-12:00am EDT

11:00 pm
> > i jim cramer. welcome to my y wod.d. you need to o t t inhe game. they'r're tsts they knonow ththin >> i a aayays ke to say there's a a ll market somewhere. "mad money." yocan't afford to miss i i hey, i'm cramer.r. welcomomtoto "d money." other people want t toakak friends. m just trying to make you u so money. my job is not juju t to ucate but to e enttata. call me at 1-80000-7-c-cnb does american joblblsnsnestrump eveverhihi? know 9.9% unemployment is s awful? does it trump, s s, , ape's ipne sales? does it cancel out t thexpxpsive demand f f 3 3g d 4g wireless gadgets and worldwdwe e mole
11:01 pm
internet plays like ququalmmmmr papalm how about the voraciciouchchese demand foror cpeper steel? arare ey nullified by our unemployment figures? does the lack of jobs s he somehow cancel those orderers om coununt china? what abobouthehe ftastic numbers fr general mills? or how about terrific c sisine is at the yuyum anan? cocoell, kfc, pizza hut, l lon johnhn sveversor all you home gars and seafood lovers. bothth cpapaes are doing incredibly well. ishahat mehow neutralized cacae unemployment still a a b issue? shall we s simy y nore these bountiful earniningssesell erything, and hunker d dn?n? >> the house of papa!! >> because o oththatig bad figure f frolalasthursday? m mbe, just maybe, does i it make sensese tfofos on, say, how
11:02 pm
the e fo a a staple stocks are gagaing? thanks to collapsingng ginin, nanatul gas, gasoline, and h h yum m isicicng butt. wiwithower raw costs for chicken and a weaker dollalar. plus a bigig eananon into russia and china, wherere trere's long march h ayay fm general cho and toward colonel sanande.. do you reaeallththk that china and russia, brazazilarare ey marching to the tutunef f e numbers of our laboror darartmt? pending g w w ho sales, they're ararg. doesn't mamaerer, employment. bibig der pickups in autos, doesn't matter, unememplmeme. 8 millioion ilild cars going to 10illion, who cares? ununployment. th'r're l rendered null and void, totally trumpeped d d pantsed by uneneloloymt? makes no senenseo o . that's the q qststioyou have to k yourself with this m mkeket? eses augly jobs situation outweigh or counterbrbanance everything, eveverhihi that's gogood is that's s wh t theeople who
11:03 pm
werere slilingarly in the day seededo believe after the bibig selloff on thursdada think they're wrong. judging by todayay p posive ose after stocks spent mosost the time in the red,d,hehe mket seems s togrgr with me. before youou sl l ocks aggressively o o a a pticular momohly labor report, you'u'veot to ask yourselel do 40,000, 60,000, m may e en 63,000 l losjojobseally offset everything good thth h has haened around the world d t the last three monthths? inclclining peak in gasoline prpres. how about a crasasinin nural gas? 63% of our homes are heaeatebyby natural gas. rememeerer wn $3 gasoline was the big fear? i d to talk about that o oththe "todod" " sh when i said that wawa't going to happen. like i'll everer g c cdit for ththatnene. cocoididerhis. galine headed to $2.30. sitive? i thinink .. how about all the e diososle income we e ululd nerate? as we saw last fall whwh g gas fefellnd restaurant stocks soared. which is w why s snt so much meme oyum.
11:04 pm
you have t to k k yoself, ask yoyourlflf iyou should be sesellg now that mortgage raras have stopped goingng hhehe bubut e e arting to actually tick down.n. how abouout fofoability? it's gotten better t thas s lower hohousg g pres. me, that says buy. those concerns werere l l pposed toto dail the economy. remember? lememesk you something. is thehe enonomyupposed to ishehe enomy supposed to rerail or perhaps it neverer lt the tracks?? you haha t to k yourself, if the gogovemementere to take 100,000 people, give them jobs w worngng lands and d pas,s, wking at the popostffice. have them go into a momode d d cicivianan cservation corps or wos s ogress administration.n. what wouldldouou tnk about the maetethen? wouldn't you believevet t wod head much higherer? in other woror, , ife got a nononancy pelosi stimulus,s, o that created real jobs andnd dndn'tust give existing federal, statete, d d lol
11:05 pm
ployees higher wages and m mor job security - -- m me at's the chief claim of the pelososi stimulus -- woululwewe sll be etetng? i point thisis o b bause i do havevenene pce of data, even as i submit it's ththe stst significant piece, overwrwhe a a the other evidencecef f a woworlididrecovery, albeit a slow one. u made a big mistake a a t tod you got burned foror iasashe rket recovered nicely.y. a german intervivi w wita feral executive who said thahat things a a b betr. you know, ththe w w osed up a cool 44 points. at's 119 points higher thahan this morning's l low that was thehe te e touy, not to se. pepele were taking a littltle bigger perspectiveve you cannot allow onene pcecef the puzzzzleevevenhe biggest pipiec to convince you that it's ne s sp dow 6300, as so manyny ofhehe slers did this morning g and many of the e seererdid on thursday. frfrany, we've become so binary, it's ridiculous. so as s a ununrweight to that, let me tell you whwh i i s
11:06 pm
happening whenen iakake l the data intnto cocoun we'r'rgogointo have a slow cocory, one that doesn't produce a lot ofof js s a lot ofpending, but should prprucuce some decent profits s cacausof e e maive layoffs and the shuttering of facilitities enough profits to owowni u unid papael or united technologogie t not enough to own a a uneded airlrleses. that may n n b be recipe for dow 10,000, but it sure e ist t donner parartyooookbk for dow 6300 e eitr.r. ere do i see stocks going?g? i think we're home on n e e rae. low end ---- hh h w 7000. hi e endhigh 8000. no l low b becse even with the no lower bececsese en without the e jogrgrth we have taken the catastrophe of the grereat prprsion two off the tablele thanks to fed chaiaianan b bernanke a andisiseroic efforts toto pp money into the systete no higher than u upp 8 800 becaususe,nlnls we get a second stimulus, which wewebsbsolely
11:07 pm
ne, , en neither the market t nor the economy willlle e ab to catch firere. the e fewiwillmolder along happy commodity price,e,do a and continue w wh h thgigantic rereance on the strength o of e capitalist eroding, dedentnt cracking down cocommisis in cha.a. they are anti-i-fit t endment, toayay nhing of the fourth, the fifth, t t s six, or the eighghthsosothing i totally idtify with although i'm'motot sure m manofofou agree with me. given the situatatn,n, ihink 's'sasy to be bullish on t the way down f f d defsives and high yielders like a coke o or lilill not t m menon the accidental high yielders lilikeededer rerety, north american tananke s, i still like it. and illinois tooool rkrk i i ink the smart play is s touy these stocks when ththe s.s. ceririinvestors sell like ththey did this morning and l le e th did on thursrsda he's's t bottom line, the realal taawaw, there is no single o one piece of datatththats going to determine the marketet
11:08 pm
performance. the are many different portant pieces of datataeyeyon just u.s. joblessness.s. we're just not that t imrtrtt ymymor whwhh is why you need to diversify portfolio ststoc t tt don't go down all l o onc with some thatat befefitf the cession lingers and unemplployntnt dsn't abate where the e bu m mket is. d d so that could soar if the recovery e evekikis into higher gear. 'r're king questions. we're going -- thihipipie oks -- was this a a b i ia, this tie? 's's t same color as this shirt. i got it at coststcooror $. anyway, , otott wisconsin. scsct? caller: jim. beautitifususuy shores of the great lakes boo-yayah. holy cow, i didn't knknowhehey had shores t trere. ththout they had like a drdroff. ahead. >> caller: jim, coconsererinthe rent slowdown in the u.s.sanand world economies coupupd d wi the supply glut inin cdedewhat accoununtsororhe five week low in oil prices and d alththrecent volatility?? >> because i it'nener been up there. i'm the only guy t thas s gog to tell t t t tru about this beuse all of my friends s t the commododits s pih are going to
11:09 pm
say cramamers s su a liar, which i y -- no, just kidding. i i wod d ner do that. hehere the deal. oil was mamanilalateup. there e s s so guy with $10 million that moved it t li $ $10 the oil futures are e wohlhls. th are completely manipulateted up. the onlyly pplplwho talk about isis a congress people who have absbsolelely clout whatsoever, and ththmimindhare, so to speak, o of e e bi coododits players are way too o strong. th's even stronger than n e e ag lobby, and that't's yiyi somethining. oil is manipulatededp,p, a we're starting to see a natutul l pre. gasosoli s ses are down. yeyearver year is actually flat. there is n no crcread demand in oioil. therere j jusincreased demand to be able to o brk k a w aders who got caught s srtrt, alternatively haha a a g spend a little extrara meyey a manipulala i it . that mararkeisis sunfair, so didicuus, it's ridiculous we even pay attention t to .. from now on, i'm goingng t crititice e ople who base their investment p phisosophon an oil
11:10 pm
future that is obvioususlyeieing manipulatete whwhdon't we go -- we're s stang with heartland. matthew in illinoiois. >> calalle h heyjim, a big boo-yah from napervivill illinois. >> naperville? >> c calr:r: nerville. >e e han't had a naperville call. good reaeal tatatearket. it's turning there. i i kn that from eileen. >> caller: i'm concernrn a abo my long-termrm pititn. i want t to t t yo take on a rerse stock such as aig, thahat 120 reveversspsplilast week. i know why companini w wanto do it. what are thehe lg g rm implicicatnsns f me? >> i've got t t telyou. thisiss s a hammed ali sisituion. e e rnings -- the lack of f earnings, the lack o of cocompy aig can n n n buit cannot hide. w w not confused by that t 20-to-1 rerersrse lit. that was a anoererreat selling oppopoununit there isn't anytythi t thaaig hahadone in the last year r th i would regagards s en remotely shsher thth has never really beenen t
11:11 pm
determrmint t anything other th s sami and baloney. whatat w wou tell you, although ailolotsf baloney, i would llllou to stay away from t tha thing. it's's oeded bthe government. itit sulul't be a stock. i don't know w whyt't'a stock. why is f freieieac a stock? why is fannie mae e ststoc whis gm a stock? these e e e degned to commission lolo of fees and hurt you.u. don't get hurt. go buy napervivillrere estate. it's a better bet than aigig. there. bobob w whington state. bo >> calalr:r: b-yah jim cramer. i watch yoyo s shoevery day, and i've read your books, , anyoyove made me e a chch, ch better vevest. ananyou for your hard workrk. >> that't's cece thanank u.u. i bumped intnta a buh of people who likeked b booat the beach th weekend. i i sieded se at the beach. >> caller:r: il l ve to get you toto sn mine too. >> thank you. >>aller: you discussed p pcece equals e earngngper share times muiple concept. >>hat's solving for the multiple is what i calalleththat
11:12 pm
that's what t i vivied in that book y y p probly read, now out ininaper back. >> caller: some e t theompanies share e thth gp and non-gap per eaeaing estimates. i i noce there can be a large gap between gaap a andononaap earniningsststimes. which of thehewowo suld we be pluguggi i io the equation? >>ust straight out earninis s per share. ananody that's got to makeke iby using -- nobododgogoesjim, that's n notn n counting trick. ye, i only took two yeararofof accounting. all i care about is acactu earnings per s srere. i don't care abobo c casflow. cacae stocks have been telelli me to papaatatteion to cash flow r r ars, and they haven't t do anything. let's just look atat rulul rnings. okay, reregur r eaings. ifif wdodon'have it, let's find another story. there's 6,00000 ococstories in the naked city. let's find a good onone. ununemoyment is just one piece of the puzuzzl those who stole e alththe y down on thursrsda t tho who stole at thopopeng, nah, nah, nah, nah.h.
11:13 pm
someone cocolalain this weekend about the vaudevilleleataturof the show.. u!u! stay with cramer. coming up, retire e rit.t. amam gives his proposal toto washington for howowo o geyour money babackn n ack. plus prescriptptiofofor profits? with heaealtararreform at the top ofofbabama agenda, jim takes onon mco health ceo david snel to find out if hisis sckck cld just what the doctor ordedere on "ththe ececute decision." >>and later, jim goes fafa a and furious as he faceces nonotop barrage e ofalallsgiving stock teter ock their final verdict on the lightning rouound alcocomi up on "mad money."
11:14 pm
hi, may y i he y y? yeah, i'm lookokie that i isn't goi to break the bank.
11:15 pm
only progressive g gives you tn you're in the right ple. to name your pririce. here. a price gun? mm-hmm. so, i tell you at i want to pay. and we buiuild a picy to fit your budget thatat's cl. ..... [ gun beeps ] [ [ laughs ] i feel so empowered. powewer to theeople! the option too me your price -- new and d only froprogressive. call or click today. diarrhea, coconstititi, gas, bloating. that'me! can i tell you what a dififferencillips' colon heal h has made? it's the pbiots. the good bacteriri that gets yo colon back in balance.
11:16 pm
11:17 pm
welcome the fst of what i hope will be many eureka moments. eureka. st week, while attempting to get a tan in the rain, i asked myselfhis question. how the heckre you supposed to safely save for retirement in this environnt? i t to tell you, i don't have a lot of good options. that's why so many people ge scammed th the so-called i.r.a. approved investmentth you hearbout on infomercials and the radio, the ones that promise you e moon by encouraging you to take the moneyou have saved in your i.r.a. andour it into some ridicuus investments. everythingrom exotic mortgage pools to ostricharms. i can tell youow dangerous ostrics are because i saw my
11:18 pm
mother-in-laget nipped by one though she claimed it was an emu. the people pitching these alged instments will claim you can ultimately get a 200%, 300% rurn, which you know has got to be bogus. you can ta about how these ams are outrageous. how there's no such thing as a i.r.a. approved or.r.a. qualified or.r.a. sanctioned investment, and the peop who tend to usthese rms are often tryi to take advantage of you. i can go on an about how we have to suend the eighth amendment for guys like bernie maff. that's the one that protects peop from cruel and unusual punishment. not that i've eveen a proponent of that one anay. i'd be hpy to repeal the whole bill of rightsxcept r the second. anyway, as much as i likcrime and punishme, even if it's not as good as dostoevsy's dons, let alone the gambler, let's do something constrtive. it's not as much as i ena
11:19 pm
couple of years ago teing ben bernanke to doh the fed. theynonothing! which were first laughed aand thencoffed at and then finally adopted. it could, if wasngton gets its act together, be the key to saving your retirement enough stick, this is a seous idea. the problem isn't e scams. it's the rsowhy the people are attract to the scams in e first ace. ere's no safe, decent yielding investments right now for retirement. normally, a retirement account there's room for some cds. those are certifates of deposit for the demo thas too olfor ipods but too young r vinyl. but the problem wi cds rht now is that rates are incredibly low, and nobody nts to accept that meager return in ange for safe. especially not aer presumably losing so much money in th stock market. put simply rightow, eight-tracks are better instnts than cds.
11:20 pm
at the same time, the idea tt you ha to be fully invested in stks all the time, a notion i rallied ainst on this show and my website, has beenotally diredited. so what do we need? a safer wato earn a decent turn in your tax deferred retirement account. your 401(k), your i.r. let's thw in 529 college savingplans too. something that's better than cds or what you can currently get from treasuries or bond fund and someing that won't put you 40% to 60% down. the average at i hear about i stroll the beaches or visit the mall, li i did at the neptune coco where i got th abominable tie. that's why i want toropose something big, big. a ne30-year 5% treasury bond, exclusively for the retirement and college savings accounts. wi t-free reinvestment. let's call them the rebuild
11:21 pm
america retireme bonds. thonly way we're going to otect investors from scams is by making them feel they don't have to take iane risks to get a decent return. my new 30-year, 5% retirement bond could do that. they don't have to call the cramer bond. i will renoue y and all credit foryself if some polician will take up this issue. you can give the credito gary the u.s. bonds for all i care. you guys a want to invest your retirement money in a re thing. i know that. the closest thg we have to a sure thing don't givu anything lika cent return. this 5% special treasury would do that. washington, i hope y'r listening to this eureka moment. i'm happy to have the administraon and congress mock me in public. hecki'll feed the white house press secretary, who seems to like wching is show so much. i'll feed him the material just as long as they consider ts idea in private. i know this n't sound like a
11:22 pm
big thing, but it would the answ to every investor's prayers. you want tgere-elected, be the congressman who can tell his or her constituents, i'm the person who created thagreat 30-year 5%d for your 401(k), your i.r.a.,our 529 that's heing you get back to even without the risk of stocks or the miniule return from cds. you can say i'm the one wh rescued you fromca or high fee bond funds that give a smler return. m geithner, you want to win back all that popularity, art issuing thesnds. m, sell these bonds directly to the consur. no fees or spreads. give them an autatic reinvestment option tt that money can compound a5% tax free. member, because it is in a 401(k) or i.r.a. whereou don't pay taxetil you take out the money. th it's just income tax. people will love you again, ti becae they should because you're a pretty go guy, if i say so myself.
11:23 pm
this 30-year5% bond for retirent accounts, if you reinvest your return, u'll double your money inbout 14 1/2 years. that strikes me as aice balance betweecapital preservation and capital gwth in your retirent portfolio. now, obama h pns to auto-enroll workers not just in 401(k)s but also in i.r.a.s. who careabout them if we don't have somethi for people to invest in once the moneyas been routed to be saved for retirement. we need th as a happy medium between stocks, which are retivelyigh risk, and cds, which carry hardly anyeturn, even when you poke around for the best rates. how about the flip sid i think the governnt should take theoney it raises from into job creation, whi aan r i aside, should be obama's and pelosi's number one priority, not clime change, not healthcare, but unemplment. because until washington tkl that, noing really matters. in fact,emo to the ultraliberal, ultrarh nancy pelosi, people don't have
11:24 pm
tens of miions of dollars like you do. in fact, they don't even have a fraction oyour wealth, and they'rworried about their jobs aney're worried about their retirement. two things you never have to worrabout, madam speaker. so could you pase get a little emthetic. maybe try a litt tderness. the boom line, i know i ually talk about a stock or a big picte economy-wide issue that needs to solved. tonight i want tcreate an issue. if you want to get your retirement savings back on track, you neethis 30-year 5% bond for 401(k)snd i.r.a.s. you don't need a lobbyist for this. the financial industry will never do this for you. this one has no fee and can be bought directly om the government. call your congressman. call your senators. is can be done. and it's what every invest is really wishing for. ga and the u.s. bonds, let him take credit. stay with cramer.
11:25 pm
coming up, pscription for profs. with hlthcare reform at the top of obama's anda, j takes on medco health ceo david snow to find out if this stock coul be just wh the doctor be jt at the doctor ordered on "the executive desion." and late jim goes high voltage in an electrifying ft fire lightning round. plus cramer chec his inbox
11:26 pm
11:27 pm
11:28 pm
you all know thealthcare rerms at the top of the agenda in washington. obama wants it -- e democrats wantt too. you know wha i've always been caughtp everince the democrats seized the wter palace. i think that whas going to happens this week we'll see the senate finance commiee reach somethg. they're going to relea an important propal for healthcare reform. it's going to ha to be watched.
11:29 pm
so far much of the fus has been on how it canurn for profit healthcare enterprises into nonprofit and all the damage icould do to earnings over and over again. as we no longer live under govement of, by, and for the corporation with profits and dividends r all, which is what we said about when replicans were in ge. there are someompanies in healthcare that do theight thing. ones that helpontrol costs. and i think when t ske clears, they are going to be t biggest beneficiary of healthre reform. regardless of the fo it takes. eventhe hardest left guy wins, there's some winners here. foremost among them is med health solutions. at's mhs for all you home gamers. it's a stock that ve liked since we start the show. it's pharmacy benefit manager. they call them ps. that's a company that ru prescription drug pls, uses its bargni power to get lower ices for you, the customers, a pockets some of e difference. in order to turn a prot, it's got to make mone it's publicly traded company.
11:30 pm
medco is theargest specialty armacy, and it's the largest mail order pharmacy the world, ser over 60 million mbers. now, hlthcare reform aside, i ink medco is just a great company with a great stock. it makesig mon whenever brand name drugs go off patent. specifically, this is really interesting data. for every $100 mli of brand me drug sales that go generic, medcclnts save $45 million. medco makes $9 million in th equation. om 2008 to 2015 there are $104.7 billionorth of brand name drugs coming f patent protection. at's $9.4 billion in additional profits for mco if you do the mh. company is doing areat job holding ontos customers. 96% retention rate for 2009.
11:31 pm
and for 2010 they've wonn extra $2 millionorth of business they had $1.biion of cash on its balance sheets. it's a bank, and i don't mean that ia negave way. what happe is this a strong company. e healthcare perform ticker besides thfact this company is faastic at controlling cos, mes from medco's therapeutic resource centers, which cus on chronic conditions. think thin like diabetes. eye responsible for 96% of drug costs. 75% of total medical eense i america. when patientor doctors deviate from accepted clinical protocols for these conditions, itosts the healthcare system billions dollars annually. medco lped save everybody money by trying make sure that dsn't happen. you know i like thcompany. i like the stock especially it's 14 times earnings. frkly, it should be much higher than that. 14 tes 2010 earnings. it has great predictability. a long-term growth rate of 18%. i think most growth magers uld be willing to pay a
11:32 pm
nimum 18.1% times growth rate once they get over their fears of healthcare form, which think ll start this week and some like the otech stocks started threweeks ago. i think the stock can go to 56, which will give you a ten-pot gain quickly. but i think healthcares a thorny issue. let's talk tan expert in controlling costs and make you money. he's made you money. it's david snow, the ceo medco health sutns. mr. snowwelcome back to "mad moy." >> thank you, m. >> great to see you. >> good see y. >> one of the things i've been trying to explain to peoe, if you wanted to keepn healthcare costs do, you bring in medco. not just becausef your outcomes eluation, but if peop want to see this, they go to www.makingmedicinesmarter.g, and they c see h we could be saving mucmore money. explaiwhy medco is the solution and not theroblem. >> l's talk about what we do. 96% of all drugs expenseoes to chronic and complesease. 75% of all medical dollars in r system go to chronic and
11:33 pm
complex disease. medco manages chnic disease to not onlyanage drug spend, which is really impoant, but to manage total althcare costs. frankly, tt's an important part of the big hethcare reform debate. how do we better manage e wae when it comes to chronic and complex disease? it's an estimated we was a year, $350 billion tieto poor manament of chronic and complex disease. that's what medco's good at. >> why doesn't -- maybe i'm -- mae this administration is too anti-business or somng. why don'they just kind of have you testify and save the money? i'm not kidding. look, in the old days, inow thatorporations were certainly much more well regarded th the previous administration. e more i look at what you do, the more iealize you've got e answers. >> you know, is rd. i spent an inordinate amount of me in shington lately. for people who knome know that's not my vorite place to
11:34 pm
be because i'm aab kind of guy. waingtonsn't an a.b. kind of place. politics are involved. the truth is there are a of constituents pullingnd tugging at members of congress tdo different things. the elements of real healthcar reform are in thebate right no the only thing tt worries me is we're wasting o time debating aboutho pays the billmeaning should we have a public plan ot, when really what we should be debati is how big the bi is. and we're using lot of political capital to talk out things that aren'tting at the ro cse problems in our healthcare system. is a cost problem. that concerns me. >> now, could you just tal about this diabetesituation. it's aor, major epidemic in the country. doesn't get talked about as an epidemic. homuch does it cost us, and what can we do aut it? >> it's huge. medco has about 25% of the diabetes populatioin this untry. we have over five million known
11:35 pm
diabetics. it's estimated that within our same pulation for our 60-plus million people. another 5 million people are prediabetic. we have an epidemic tied to obesity in this couny. the challenge wi diabetes is onceou're diagnosed with it, there e ings you need to do to stay stable. that means comply with measuring your blood sugar take the ugs the doctor prescribes. if you don't do thosthgs, it's prey much guaranteed you caend up in the hospital, in the emergey room. you cahave renal failure. you can ha amputations. it's an uglyisease if you manage well, you can ha a long, stable, healthy life. 50% of people don't dohat the doctor tls them to do once theyeave the doctor's office. that's a real prlem. it's where a lotf money is thrown away in our country. >> okay. why is it that we -- when i'm on yo confence calls, all anyone wants to talk about is business you're king away from cvs and whether you're g to buy cigna's pharma benefit nager. why aren't people looking at bigger picture a thinking, unr the obama administration, there's real only a couple big healthcare compaes that are
11:36 pm
going to win, and urs is it. you're not promotional in yo calls. that's part of your oblem. >> you know me, i'm not a sa guy. >>ou're not. >> why is the focus on t next big generic d on cvs instead how if the government actually pays attention toou outcom work, you will get a lot more business. >>ou know, it's funny. i actuallyhink the street does pay a lot of attention to r clinical efforts. and we've gotten lot of credit for novation, and it's tied to our clinical efforts. you know w they don't talk about . medco in the lastwo yes has won over $16 blion worth of new name business. thoof is in the pudding. you can either talk about the brdable fferences of medco, or you can look at t sales results. ey focus on the results, just like you do on your show >> i do because, fornstance, walmart mos in it, and i only fi out -- i think it was your d.h. blair, wiiam blair conference that you arlower than walmart your costs are lower tha walmart. >> absolutely.
11:37 pm
walmart came out last week and lked about how it's more pro healthcare. would walmt use dco? >> here's the funny thin walmart isutng their focus on generics, but remembe remember, although 66% of all prescriptis are generic and 34% are brd, 84% of total cost is brand. >> 84%? >> so waart doesn't have a solution forhe brand side of the eqtion. that's really wherthe big game played for our clients. the painoint is brand, not generic. >> snow we know that there's is woman, she was against the caremark -she would threcally be against caremark and cvs. there's talk that that combination, which you've be quesoning anyway, but that combination cod be broken up. any truth to that th're going to look into that? >>he ftc has been asked to look into it.
11:38 pm
they've passed it withinhe system. i don't know where it's gointo go. i will assume it won't be. it's a litimate company. it a competitive model. it certainly doesn't domate the market. there are plenty ocompetitors out there. i would say the odds are no. >> o last question. i spent a loof time trying to figure out the multiple. your multiple to me is the lowest i canver recall because of the date. once the debate'over and the g bad event's over, do you think that the multiplcan spring back toistoric levels given the facthat the growth rate is as steady and maybe even increasi given the number of generics coming off? >> there's a forwardooking statement. i believe it could a i should. it deserves it. our grow rate -- i mean, you know, we grew over 30% last year. we're nng at a 15% to 20% growth rate this year. our growth is very strong. >> google, appleyou. that's a i've got in that vel. >> yeah. we deserve to have a higher
11:39 pm
multipleand i believe, when the fear -- it won't be until october. that's when they're scheduleto come out with methinthat's meaningful but the debate will go on all summer. >> and the money will be me right w, not then. david sn, president, chairman, and ceo of med health. thank u for coming on and telling the truth. good to see u. stay with cram. try to keeup with cramer as he takes your cls rap fire in an all n lightning round., and jimld answeroun the air on an all new "mad mail." alcoming up on "mad money." oof!
11:40 pm
hope hhas that insurance. aflac! you rereallyeed it these days. how come? well if you'rere hurt ancan't youwork it pays y you cash.ys. yeah to he wit everyday billslike gas. it's like insurarance r daily living. so.whas it called? uhhhhh aflaaac!!!! oh yh!that's it!
11:41 pm
uhhhhh aflac. we've got you der our wing. aflaaac!!!! a-a-a-a-aflaaa you'll never go back to your old broom again. now a a ngng f mary... from a on'tou want me, ohhhh ♪ new swiffer sweeperr isisedesigned... to clean deer into corners. dry cloths trap and lock 50% more dirt, dust a hair than a broom... with a new dirt gbbg texture. the all new iffer sweeper...
11:42 pm
it is time. it is time for the lightning rod. on cramer'mad money. what's that alabout? rapid fire cls, one after the other.
11:43 pm
you the name of the stock. my sff prepares the graphics on the fly, whh is why it oklike it's all premade. when you hear this sound, an then the lightningound is over. are you ready? ske-daddy. it is ti for the lightning rounon cramer's "mad money." we are starting with cheryin tennessee. caller: we have a tennessee familyah-bahoo-yah. what's up? >> cler: we'd like to know about foundation coal hogs. >> the family from the volunte state. at one point it was do hideously. peabody energythat's your quality play. i'd ratheree new that. let's t mess with less ality. if you want go one notch down cause you want a $14 stock, we'll go with arch c
11:44 pm
i'm sorry. they're all better tha foundation. you know what, i don't want your family in that bad coal company. now, of urse, coal foundation ceo will say it's good. one says i work every day f a bad company because that'sot the way 's done in america. let's go to kim in pennsylvania. >> caller: jim, g boo-yah fromenylvania. >> boo-yah. either from pirates orhils boo-yah. >> calr: my question is on ppg. on your entry pot of $. nce i'm long over ten years, i want qualityompanies. can you jump in on the dip. >> bought some todayor my charitable trust. itit that magic level. high yielder teific ceo on two weeks ago. he's talki about 15% business in china. theyave a coding business. i looked athe so of their sunglasses this weekend at t aforementioned ctco. i think you ha a winner. ppg. and i want you b more right here let'go all the way down to orida. let's to jake in florida. ja.
11:45 pm
>> caller: jmy cramer, i need to give u an extra special getting maiein two weeks boo-yah from orlando, flida. >> fm orlando, florida. i've got to te you, the magic are shing things up in the off-season. what do you t? >> caller: i need some mad money for myoneymoon, jim. i've been reading ur books and buying on wider scales of onb, old nationalank. first repay t.a.r.p. >> i've got to go with you on there. that stock has been in a prolonged downtrend. it's a really, really good bank. you know what, i wouldeep buyi more. it's not sexy. it's n an inresting situation. but itappens to be a cheap situation. i y buy. how abt nie in california? annie. >> caller: hey, jim. myld time favorite stock trader. >> s >> caller: 12 months a, walter energywolt, hit triple digits. now that the coal miner is
11:46 pm
building and financing rl estate, what's your take o that? >> i actually wrote up walter industry because i saithat this one is a great, great congmerate. and i continue to ree. it went all e way up and then l the way down. iss a really hard one to b able to judge because it's a colomerate. one of these. and i said it s great, and it we up a whole lot. walter energies. bear with me as check the index. walter energies, page 17. i said it's a great brkup story. i reiterate th. it's got coal, houng, and steel. let's go to randy in arizona. randy. caller: first and foremost, a monsoon coming boo-y. >> wowsun devil boo-yah. caller: i'm curious about at&t. i some research over the weekend. i want to do some dividend capture possly. >> yes. at&t and verizon, they havbeen wn so long they look up me. i cann believe how horribly
11:47 pm
these stocks act. we are in a sldown. this iwhat you buy. am not concerned about at's dividends. in fact, i thinkhey'reoing to raise theividend. i think buyingt&t is a very, very smart thing to d i reiterate my buy. i know it's done notng. you get that dividend, and that dividend is safe. let's go to rich in florida. rich? >> caller: hey, m, boo-yah. let ask y a quick question. i'm interested in bong airlines. i pick some up when you made t reference to it a couple of weeks ago fore the paris air show. and i saw a li bit of it as srted to drop down. i was ndering if i should now cost average it. let's understand. this is one where they'vbeen -- they've made great ort of me about bing. remember whai id. i said thadreamliner is going to fly. it didn't fl i blame myself for that. immediately i sahe reason why dn't fly is because of me. that way i w able to deflect some of the incredibly scurlous criticism. however,ere's the issue. i ink that boeing is now 4%
11:48 pm
yielder. i do believe that yield is safe. i ow they have problems making the play, and th's obvious. ee i wouldn't have been o there with my neck chopp off or at least in a noose. but i would buy mo boeing re. again, iaid to get out of it -- did just what you said. i went there, e thing didn't fly. i said forget about it. was an interesting trade. it didn't work. down here, it feels ke an investment to me. can i go to allen in maryld. >> caller: hey, m. we'd like to ge you a genuine baimore ravens boo-yah. >> i can't think of the rave without thinkingf mcnair, which pretty sad. th'sretty sad. >>aller: my question today is w.r. grace, gra. very interesting. i remember before the bi breakup when they had the ok industry and the sff that goes all ov the meat when you buy it, that's the plastic, anthey had the shippi line. got a great atings business. of an interesting off the wall play. i will bless it as an interesting spec although i've
11:49 pm
goto tell you i do not know the earnings power right now. with tt, theightning round isver! >> announcer: the lightng round is sponsor by td ameritradey been doing t right thing. is thedvice you've been getting helping or hurting? are e fees you're paying real worth it? td ameritrade's fees are fair and straight-forwar their research is independent and unased. their investmentonsultants are knowledgeabl and the whench is indeyou need them.ased. so why notalk to one? anuncer: call today to sor visit a td inveameritderanch.p, toeing able to manage your dbetes properly. it's very important for to uh check my bodugar before i go on sge. being on when i'm feing low can be like a rollercoaster. it does at times feelike my body is telling me to do one thi. and, my mind, myeart is telling me to do something else. managing my highs and lows is super important.
11:50 pm
sot really does high/los micromanage where my blood gar nes to be. i'nick jonas and never slowindown is my simple win. i believe th there are still mysterand wonders,ld, and d surpris. i believe that fun is r rable resource. ♪ there are somemengs you'll never a able download. ♪ i believe that when celeb. in creates big and small, th stay with us forever. discover a place where rlds connect. seaworld.. you all want to run your businesses more efficieny, so 've ought in a team of f perts help. one susution is to make your s shippg more efficient with priority mail flatate boxes from the posl rvice. ca o or online for a free sply and upo $160 in offers from a shipng's a hassle! weigighingvery box...
11:51 pm
actually, with flat t rate box ouon't need to weigh anhingnder 70 pounds. if it fits, it ships fofor low flat rate. ok, but i ship all over theountry. you can sh anyere in the country y r a loflat rate. shipip intnational, too. yes, but ihihindreds of things, in all l sizes. great, becau ft rate boxes come in four sizescall now and we'll send aresupply, plus up to $160 in offs.s. when you're ready toto ship, wll even pick them ufor ee, no matter how manyou have. a simplewato ship. calalor go line now to get start.
11:52 pm
we h hav't'teen doing enough mamail lately. let's get on t theasase. this one froromemelae. i alwawaysavave ask how to spspelit. my husbandnd a i ire in our 50s ---- b, i remember those dayay and i figure now wououlde e good time t to arart cumulating some ock for our retirement. yeah, yeah, yeah, whwhatooook so long?g? we have decided to havave ststle portfolilio b buyg some dedendndab stocks, but our adadtional aim is to startrt collececngng scks from companies whwheither make green prododuc oror tir components. wewe le in st. louis, and wewere goinintoto srt by buying a upup hundred shares of zololte thoughts? no. no. no. i don't want yououo o thk like that.. your first idedea ouout e stocks is g gd,d, b i want to define dendable as a company thth i is payingng aivividd and raising thdividend.
11:53 pm
use that as yoyo c criria and i'll g go ththou. and the idea of grgreeveveus no greeeen,'m'm n going with that. i'm trying to develop somemethg with some cocompieies at can bebefifit om cap and trade. thth's not the way to invevest i like companieseshahat e accidental h higyiyiders or have coconstent policy of paying g dividends. here is scott. inour book "stay mad for lifife" -- boy, everertitimeou want to promototararou here, it's almost impossible - -- u u wre that prpr w wor about making too much money too fast becausese ishshow pontially dangerous imbalancnce ininhehe rk/reward ratio. es this idea apply to companies as well,l, eececiay financiaia?? if you're e puininnumbers on too fastst, y youe buying other mpanies it does apply.
11:54 pm
ofoftelook at this issue foror my travel trust thatat iororwith on thehestetet.c. i'alalwa nervous when i've ma say, twice, what the e rkrket did on a given dayay when i have that kinind outperformanancei i kn i'm takiki t toouch risk. thatat'shahayou need to worry out. m ming money too fast meaean are you beating ththmamark by two, threeee tesesn a day? you'u' p probly having too much sk. cucut ck the risk, and the rewardrd wl l st steady. "m"madonon" back after the eak. gecko vo: geico's thethirdt
11:55 pm
car susurae company in the nion. but, it't's not like we're kicking baback, now,w, avavin' cuppa tea. gecko o vo: takelots of sweat to become at big. gecko vo: oue, geckos don't litelly eat... gecko o vo: takelots of sweat it's just not our thin. gecko vovofirst le ofo "hd work equals success." gecko vo: that's why gegeicis consistently rarad excellent or better in s of financial strengt gegecko : cond rule: "don't steal a corker's egg salad, 'specially if it's mardd "the gecko." come o on peoplele ♪ so blesd d wi inspiration ♪ ♪ i don't know mumuch ♪ but i know i love you ♪ and that may be ♪ all need ♪ to know (announcer) custers ve ge aircraft e eines almost as much as we lo .
11:56 pm
11:57 pm
i got this t tieoror $.99 to me, , l lood good. ththers always a bull market somewhere. promise you i'll try t tfifind it. "mad money." see you totomorrow! ( whooshin) you could y 750 bottles of water. or just one brita faucet filter. - ( plinks ) - ita--
11:58 pm
better water less waste. mr. evans? this jani. i have received an utomatic signal you've been in a front-end crash. do you nd lp? yeah. i'll contact emergenency services and stay wiwi you. yeah. onstar. standardrdor oneye. i felt a amazing boxed in. (aounc joe uses the contour r from bayer. (joe) my meter absolutel apts to me and my lifestyle. i'm joe james, and being ide of the box isy simple win. in fe vi. the gold delta skymil fr american express...ard... it's the officiaca... of the world's largest airline. and it's thehe onlcredit card... that eararnsilesn delta.
11:59 pm
les that take you... to more places anver before. ovov 350 destinations worldwdw sowitch today. get up to ,000 bonus miles-- a free flighgh good for call now to apply. there's no annnnfee for the first t ye..... and you can redeem... with no blackout dateor seat restrictction. thar just a few of t tenefs... of carrying the offialal cd of delta air lin.. switch now and you n earn miles... on delta with your pas: get up to 25,000 bonus s miles. with the gold delta skskymiles credit card. call 1-800-skymiletopply. ththis ithe official card... of t w w's largest airline.


info Stream Only

Uploaded by TV Archive on