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tv   Mad Money  CNBC  April 29, 2013 6:00pm-7:01pm EDT

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you wear deodorant, grasso? >> exactly. but just so you don't get burned on this one, 812, that's your exit. >> guy. >> toyota motor on yen weakness. >> i'm melissa lee. thanks so much for watching. see you tomorrow 5:30 p.m. eastern time. follow me on twitte twitter make you money. i'm here to level the playing field for all investors. there's always a bull market in summer and i promise to help you find it. "mad money" starts now! . hey, i'm jim cramer. welcome to "mad money." welcome cramerica. i'm trying to teach and coach here. so call me 1-800-743-cnbc. do you want to know how difficult this earnings period
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has been for the largest companies? you want to know why this earnings season has stunned us and confused us and driven us crazy? given the strength of the averages, including today, with the dow we're at 106 points. the s&p gained 72% to a 58-week high. nasdaq climbed to a 12.5 year high. how can this be? it makes no sense. how can this be? i'll tell you why it makes no sense, because as we're hitting these highs, just about every major company in the country has reported a sand disappointing quarter, i'm not kidding. i worked on this all weekend. i could not believe when i sat down with all the quarters. you can't make this up. listen to this horrendous compilation of horrendous earnings reports. it's shocking. first, obviously, there's apple with a quarter that's now regarded as the benchmark of bad
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quarters, precipitated the most downgraded of targets cuts this year. the stunning cuts in apple, it shaved off the top is such a visible defeat for the reporting period that i would call it a microcosm of the moment, except the $250 billion of added destruction isn't a micro-anything. it's nice to see the stocks bounce back. despite management's best attempts to tell you how impressive it was and you were wrong to be negative. apple's declined passed to exxon mobile. and how did the co las sal exxon mobile do? it's a very discouraging declineing growth quarter where the allocation story too much to buyback, not enough to dividend, certainly not enough defining oil has brought a dimming to the oil and gas portion of the earnings. leave it to the largest company to report the worst quarter in the oil patch. then there's ibm the bellwhether
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tech of the dow joan averages, it drove the stock down 22 points, 10% a couple days i'm, the culprit, a declining growth in the quarter. it was a whoping surprise to those of us who admired their sol ven tcy for so many years. they got wracked by this one. fortunately, it's been bounceing, but it's nowhere where it was before it reported. how about amazon? is there a more important retailer out there say walmart? i don't think so. yet, amazon's report struck people as sorely wanting. it got pummelled from its 20 smackers. i personally liked the report. i liked the expanding gross margin, but i don't matter. the decline tells the tale. it fell $5-bucks. how about one of my absolute favorites? 3m, one of the corner stoep industrials out there, which reported a heavily disliked quarter and it gave you a forecast cut that sent shudders
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down the spines of investors who are used to this company's ki consist earnings growth. it's been dinged for that nas if i slow growth corner, bow wow chateau named now. then there's at&t the largest phone company which gave you a quarter that sen t the stock down the hardest that i could ever recall for that one. missed in a day. it was a vicious decline for the $200 billion bewhomoth. the shocking decline in wire line is a testament to the country's inability to create new business. are you listening, mr. bernanke, one of the first things a new business must do is hook up a land line. there must not be a lot of land lines hooked up. as bad as at&t's quarter was, it was head and shoulders above the quarter that procter & gamble put on that pulverized the stock
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82-76 for it to destabilize. proctor also another $200 billion destablization company. that quarter showed the company won't be considered among the most defensive out there could not withstand the woes of the world's economy. how bad are two big semi conductor companies, intel and qualcomm? we under stood that intel was going to miss? they are in secular decline, qual com? it's the anointed one, it's the 4g. it's supposed to be perfect. yet, it's the biggest disappointment in tech. i can't get my arms around why? two more 100 billion companies that quite frankly blew the quarter. did you see the reaction, i should say the miserable reaction to ge's quarter? it fell in the blink of an eye t. company's growning's rate fell sadly.
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ge of the industrials, it's another $200 billion company, let us down t. ample dividend does make me say the stocks we are sticking with in my charitable trust is actually buying swell, bought some after the break. it still stung, believe me. united technology is another stirng. it finally seems to be stabilizing after another, after a quarter. and i never seen these guys miss, it's been ages, but it felt light with europe and sequestration calling out for the weakness. okay. europe can bottom, sequestration, the damages might have been done already. this is a $80 million national we are talking about, it's consistency took my breath away within it got hammered. the dow jones united health, reminds us there is still plenty of risk to a held healthcare plight that is supposed to be
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winning under the new regime. oh? help from the banks? nobody cared for the numbers of bank of america, or fargo financial and slowing freddie mac, knocked back all of these stocks. come on, these are the big three. bank of america's number, once again, couldn't be fathomed. it sure seems more like a law firm at times than a bank. it's got so many lawsuits against itment at least their quarters weren't viewed as light as the two independent brokers, goldman sachs and morgan stanley, which haven't regained much of their footing and became two of the most disliked stocks in the market. at least when it comes to their book value. did anyone slash their forecast more visibly than caterpillar? talk about missed earnings. if largest manufacturer in the dow failed to deliver multiple caps, even though the stocks flecked those already. heck, two of the largest food
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purchase vayors in the world, mcdonald's and starbucks, reported to me what looked like terrific numbers. when you dove underneath the hood, some saw weakness, weak comparable sales numbers. critics showed them as a gross margin issue in china that, reversed starbucks in after-hours trading. even starbucks posted an amazing 7% same sales growth and to me put the idea that the u.s. is saturated. both stocks are coming back now. i think that's right. but there is no denying the quarters were roundly panned. so, now we got them all. let's go over this. what did happen? what happened to the averages after disappointment, disappointment, disappointment? what happened after apple, exxon, ibm, amazon, 3m, at&t, general electric, united health, bank of america, wells, goldman sachs, caterpillar, mcdonald's and starbucks disappointed? how about all-time highs for the
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dow? how about another run at the s&p 500's all time high? flirted with them all day. you see, this is what's truly amazing about this market. if you didn't know any better, you'd think we'd be down massively from the highs of all those disappointments. you would most surely have sured it or bet against the s&p and the dow. just looking at the multiple staggering disappointments from the largest companies on ear t. -- earth. some smaller companies, some retailers, that are just taking up the slack. i think this is amazing. because the biggest most important, most visible companies have done quite poorly. yet, the market has not skipped a beat. i would never believe this. that explains the absurdity of why this is such a hated market. even as it keeps knocking on the door of the all time high list. it explains to me the lack of vulnerable alternatives to stocks, especially the mandated stocks by the feds will keep stocks high, maybe until the
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underlying companies return to their old winning ways. if you wait, for example, for revenue growth, you will have missed the opportunities to buy for what could be a definitive second half re-acceleration, if i inthakt is happening, a bottoming in china and a reversal and a bottoming in europe actually comes to pass. so here's the bottom line, to me, there's only one way to look at this. if this market can go higher without those companies, and what a list, right? well, those companies doing well? what happens if they stop disappointing? hmm. maybe that's what the market's trying to say. because if you shorted it on the basis of any or all of those huge companies' quarters, you are losing, not making money. oh, and in the end, making money is all that matters. let's go to mike in missouri, please, mike. >> caller: boo-yah, jim. in my book, are you the champion investor. my question is, what are your thoughts of the financing of
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j.c. penneys by goldman sacks as well as taking an ownership in the country. >> there's way i look at it, they've got the money so they will be able to maintain their inventory. they will get their goods for christmas. so what will happen is if they have a good holiday season, they'll do well. if nay have a bad holiday season, they can run out of money. i think it's what they are earning, sir, not financeing. i don't see the earning, it's good to have the financeing. it buys them time if you get it right. the biggest companies in the world disappoint and the market still goes higher? hmm. maybe things, maybe things are gonna get better, not worse. "mad money" will be right back. . >> announcer: . >> announcer: coming up, chemical attraction? pbg is up nearly 10% since reporting as it pushes into new industries. can it continue to give your portfolio a protective coating? cramer paints you a picture, an exclusive with its ceo next. [ male announcer ] there are people who find their own path.
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there there is more to this mark than dangerous international ones. the truth is, some stocks are working, even if they do business overseas, they need to be well managed and in a business that's proprietary, not commodity, meaning this stuff can't easily be copied by the competition. consider ppg the chemical company makes all kind of coatings for cars, plane, building, glass, you name it. ppg used to be an old faxed business. in recent years, the company has
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been either selling off or shutting off the commodity side most recently with the sale of its business to georgia gulf. now ppg gets roughly 3/4 of its sales from the proprietary business. this company refuses to be held hostage to the broader macroeconomic environment. ppg took its hands in its own years ago. there is no surprise at all when it reported a week ago they want again to beat the number, despite the hand winging about europe and china. in response, the stock rocketed from 142. it is now trading at $147 which is a.-and-a-half from its high. even with this move, ppg is only up 6.8% for the year. i think it has plenty of room to run. let's take a closer look with chuck bunch, the terrific chairman and ceo of ppg, learn more about the quarter and where it's headed. mr. bunch, welcome back to "mad
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money." >> all right. jim, it's great to be back. >> chuck, you said we have to do the without a lot of growth around the world and you really said, listen, it's broadly weaker activity in europe and in china, there is some growth resuming in asia, but it's not a pretty picture out there, is it? >> it's really a mixed picture. globally, you mentioned the weakness in europe. it's been pretty rough over there. but if you focus on your business and we've emphasize productivity, restructuring and really getting our costs right. if you do those things, you can do well, even in these tough markets. >> all right, let's go over this acquisition you made that's not getting enough talk about, which is this axo, the pane t business. you put out a number there of what you can save that was far more aggressive than anybody felt. walk us through how quickly you can take out those costs like. well, we feel that that acquisition of akzo's north
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american coating business, which include some brands here in the u.s. and canada that you would know as gridden, liquid nails, doluxe. we're getting day one cost energies from the akzo acquisition, lower amortization, lower pension costs, lower allocations from akzo corporate. we have some real synergies with our architectural coating business which you know as pittsburgh paints and olympic paints and stains. we have great synergies in terms of our supply chains, our operations. so we're very comfortable that we can get good synergies out of this business, position it well as this residential and eventually this commercial construction market here in north america recovers. >> we have been big fans of sherwin williams. i did not know, this gives you
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more of a national footprint than you've had before this. >> yes, we have been, especially in our company-owned stores business, we have been a relatively regional player in the u.s. market. now with this akzo acquisition, we'll pick up a no. 1 position in canada and we'll pick up an additional 300 company-owned stores here in the u.s. so we'll get much more of a national footprint rather than being a regional player here in this mark, jim. >> with the changes in your commodity business in the offloading, you have 900 million in cash. you've got nonrecurring gain of 2.2 billion. you have already taken in 7% of the stock outstanding. what is the right thing to do with the rest of the cash that you have? >> well, we're going to take a blensd approach to our cash deployment as we always have. we just bumped the dividend 2 cents a share here last week with our earnings announcement
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here and we think that the capital spending, especially with our specially chemical or portfolio is relatively modest. so right now we have, we think, an opportunity to continue to drive on acquisition, both here in north america and globally in our coatings and adjacent markets and also continue to do share buybacks. but, obviously, we think we want to continue to supplement the portfolio with these acquisitions. you've seen a couple of them recently, not only akzo architectural coatings in north america, but spray lab, a north american industrial player at the end of 2012 and we just announced an acquisition of a a bolt in our aerospace business depth which should play nicely with our product array, supporting commercial and military aviation. >> that's how the coatings
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business can be strong, even though people think there is not that much construction going on. i want to quote you from the call. this was optimistic. you said, we feel the business will get better overall in europe. you mentioned it the first quarter is very week is very weak. you think the comparables will get better in the second half. are you the only person in business i talked to who you say europe could be bottoming, you see something in your numbers that gives us hope and faith about that? >> well, jim, i would say that the first quarter was exceptionally weak in europe and we think that in the second half of the year, we're going to see a stablization at these weaker levels. we're not looking for improvement in europe in terms of significant growth until 2014, but we don't think that the first quarter will be duplicated either in the second
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quarter. we think the growth declines will be moderated. the second half of the year, moderation, but no real growth until next year, but i'm not totally pessimistic about 2013 as we saw, as bad as we saw the first quarter. >> and unlike a lot of other execs, you were actually bullish about china. it's because you do autos and autos are very strong in china, despite what we see about aggregate number, right? >> yeah the chinese economy is going to grow 7.5% this year. that's very solid. the automotive markets, the oem and after-markets are very strong. you look at 2013, we're expecting 10% growth of the automotive builds in china. already, the largest automotive market in the world. if you look at 10% growth with the number one position we have, we got some great new product
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introductions. there is some new assembly plants that are going up that we're well positioned for. so we're very optimistic about the chinese automotive market. it's a domestic market. almost all of these vehicles are for the domestic market. they're not being exported. so i think this is another story on what i would call the growing consumer and domestic demand in china and certainly automotive is one of the strongest end-use markets in china. but, overall, it is still a little choppy over there, but automotive is excellent. >> all right. chuck, you are in the right market. are you in domestic housing, are you in auto, you are in aerospace, that's why you can pull it off with tremendous execution and great costs coming down. chuck bunch, chairman, ceo of ppg industries. thank you so much for coming on this show. >> thank you, jim. >> stocks not up enough, given the quarter and the rest of the year. you heard china, good, europe
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bottoming, you take europe bottoming, you see big leverage from the cost take here at ppg. stay with cramer. >> announcer: coming up, shocking the street. industrial giant eaton was on the rise today after reporting. can growth in it's electrical business help lead the charge higher or will it run out of juice? cramer's earnings exclusive when its ceo is just ahead. . .
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[ music playing ] >> in a moment where everyone is looking at the earnings season by who is getting hurt by europe and who isn't. you need to learn there is more to the puzzle than mere geography. you know what matters? execution. at the end of the day, we like companies with great management. they are run with people with long track records with great results. take eaton, they reported today that manufacturers everything from control box, power management system, hydraulic truck transmissions and aerospace. in part, i like them because at the end of last year, it bought cooper industries. a $13 billion deal that gave the company a lot more exposure to the electrical side of the business and more domestic exposure. you might think they are acting like a dog here and they reported an excellent quarter, beating earnings estimates,
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revenues okay, some say it came in a little light. i don't care. they rose 34.1%. eaton reiterated its guidance the rest of the year at the mid-point of the forecast. management expects to grow at an 8% clip this year. that's a challenging environment. imagine how well eaton can do when the global economy gets better. sure enough the stock dropped $1.63 or 2.78% in response to those earnings. while you wait, they're paying you a yield, pretty darn good for an industrial. let's check in with sandy cutler. let's find out what's going on. welcome back to "mad money." >> good evening, jim, glad to be back with you tonight. >> thank you sandy, this was an amazing quarter. you say even in the call that europe was -- you said it was omolasses. the economy over there was so slow. you saw some good asia. united nations okay. yet, you were still able to deliver remarkable marginles.
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should we be focused more on margins than revenue if we want to figure out what stocks will do these days? >> i think, obviously, you got to have real revenues. the key where you left off is in this relatively slow outlook, 2% gdp the companies can execute, create their own additional sales or additional profit. that's where we think the tonne is the for the shareholder. that's what we were able to do in this first quarter. you correctly noted, your sales up 34%. our profits up 28%. we exceed our own guidance for the quarter as well as the analyst consensus. we think we are off to a solid start in the year where marks won't bail everybody out. it will be execution that will be the key in 2013. >> i like to look at margin expectations. you have margin expect indications. -- expectations. these are remarkable numbers. how are you going to be able to pum these off in this environment? >> well, again, a couple stems.
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you may recall in our 4th quarter, jim, we took about $50 million in restructuring. we have been watching the world economy slow down if 2012. we decided in europe, we needed to get costs out, streamline our operation, we got that done. we needed to do the same in south america, where the resilience was coming back slower. that plus to integrate our $13 billion acquisition of cooper. those are areas where we can make a difference in terms of our productivity, efficiency and new products to solve these power management problems. that's how we think you manage through these periods of slower growth. >> you bring up one point, i told my partners, that you would tell us which is what products are you capable of designing now that you have cooper that you couldn't do before? because there was not a lot of overlap. there was, to me, pa lot of expansion, that you took a big part of this market. but you must be able to create new products with these two
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companies together? >> absolutely. electrical now becomes about 66% of our total revenues. i think you saw the strong performs from the two segments. this morning on a call, i referenced a couple products that are allowing us to outgrow market at light fair, which is the big lighting show held in the united states last week. you saw us introduce a cutting-edge new technology, we are using a edge-lit technology. we are bringing the hottest technology lighting to recessed lighting, the area where it has been the home of the fluorescent light bulb. similarly, we take our high energy efficient power quality equipment, moving that into the mid-range for the smaller data centres an business. another revolution site. then taking machine builders around the world today, trying to find lower cost solution, so their equipment costs less for their customers. what we did with our lead auto summation a real value creator for customers.
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three examples of the product technology that allows us to outgrow our end marks. >> we are big believerers from a long-term aerocycle. when you broke down, the electric am product, systems and service, someone was trying to say, isn't that a lot of government? you said it's a lot of aerospace, which we think is in major bull mark mode. is that the way you look at it? >> yeah. the question this morning really was about where was our government business really centered? and as you know, we do in our aerospace business both commercial and military aircraft. what was sort of surprising about our booking, which were up some idly, up 7% in the quarter in aerospace is we saw a strength on the oem side on both the commercial and the military side because of the fact we think we're on those right platforms on military. so a really strong quartner aerospace. what we were particularly excited for this quarter is you saw those 14% margins up very solidly from where we were last year, right on what our guidance
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is for the full year this year. >> okay. how about commercial construction. it didn't really play that big a role. i know if that came back, it would be huge for you guys. >> yeah, i would call it a mediocre quarter, if you will. we think the combination of both the government-driven construction and the private put-in place is somewhere in that sort of 3-4% growth market. i think some would say a really great market is when you're in the high single digits. we can do very well on this kind of market. we're continuing to see broad-based activity. there are a couple verticals that are quite active as you can imagine, oil an gas very, very busy. if i switch over to the residential, the multi-family side has had a lot of action in addition to the single family. i would say we're pretty happy in the u.s. on the construction side. >> let's go back to if aerospace, i know the boeing, the dreamliner will be rolled out a tremendous amount. we know away from -- we know
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alcoa told us business jets are very strong, we know airbus is doing incredibly well. how much of the aerospace cycle are you involved in? just so our viewers can understand where -- they understand the eaton box in their home. they understand the commercial. they're trying to figure out where you play in aerospace. >> yeah, virtually across the board in aerospace, whether you think about the wide body or the narrow bodies on the commercial side. whether you are thinking military or commercial ro to craft the hock, whether you are thinking of the fighters and the transports, we play across that board. so we are benefitting exactly as you mentioned from this mini boom on the commercial side of the aerospace and on the defense side, where we have been quite public, we think that market will shrink about 6% this year. we are on the joint fighter and new air force tanker problem and a awful lost heavy hobblings that allow us to be on the right programs albeit on the shrinking side of that business. >> it's a great quarter.
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thank you for coming on. i did not expect this quarter, frankly, to be as good as it is. this is the one i was worried object for you guys, it's remarkable. >> it was always our weak quarter, we pointed out typically our volume pijs up 5-10%. we're expecting right in the middle of that about a 7.5% increase in the seasonal volume. that allows our profit to be 46% first half, 54% very doable this year. >> that's terrific, especially in this environment. sandy cutler, eaton, thank you for being on this show. >> thank you, jim. >> execution, that's what matters, eaton has it. that's why the stocks went up. stick with eaton, stay with cramer. [ music playing ] >> announcer: it's earnings central, and opportunity is calling. tomorrow on "squawk box" ceo reacts first. plus, europe's troubled economy, on air, online,
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earnings central, cnbc. .
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work you do for us. >> i'm sure trying. what's up? >> caller: the stock is samstorm gold. where is it going? >> we like gold coins, that's the slight feeling. one guy. let's go to scott in new jersey. scott. >> caller: good evening, jim, how are you doing? >> hi, marn, local man, what's up? >> caller: you are intelligent and a genius, a beautiful guy. t what about agrium? >> not my favorite. i like potash a little more. i do like this ag group. i'm not jumping up and down. how about miguel in georgia. >> caller: boo-yah, jim. >> boo-yah. >> caller: i want to know about chinese power? >> actually the chinese pulled back from solar.
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anybody decided you can buy solar. i did think the quarter was excellent. jake in louisiana. jake! >> caller: jim, how are you doing, buddy? >> real good. >> caller: thanks for the smoke and mirrors for the small investor. jim, about a year ago, you recommended life technologies. i got behind it. i got a 60% gain. it was in the news a couple weeks ago. it's flat now. you say investing doesn't mean hanging on forever? is it time to ring the register or hang on upside? >> i think you got all the gain there, i think, sell sell sell. we had the ceo, one of the reason you got to watch the ceos, we were blown away by how good that company's technology is. and that, ladies and gentlemen, is the conclusion of the lightning round! . >> announcer: coming
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. >> announcer: coming up, best medicine? you asked. >> my stock is cuba pharmaceuticals. >> i wish they'd come on air. >> cramer answers. tonight, he's going straight to the source to see if this company's pipeline could prove profitable. don't miss his one-on-one with cuba's pharmaceutical's ceo. [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. some brokerage firms are. but way too many aren't. why? because selling their funds makes them more money. which makes you wonder -- isn't that a conflict? search "proprietary mutual funds." yikes! then go to e-trade. we've got over 8,000 mutual funds, and not one of them has our name on it. we're in the business of finding the right investments for you. e-trade. less for us. more for you.
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we spend a lot of time talking about biotech stocks. they could become a major player many years down the line. in part, these are the companies that get it right. we know the economy is not that great. about seven weeks ago, valerie in pennsylvania called about another relatively smaller biopharma play. she addressed it, since cubist. cbst. i told her i had to do home work. we are going to talk to the ceo. first, cubist is the company, not to get confused with the artistic movement that includes picasso's best work.
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it's a real product right now, the main drug cubicin is used in hospitals. this drug could do a billion dollars in sales this year. that qualifies for blockbuster status. right now, cubicin makes up 9% of the sales. it's a big patent cliff. however, cubist has a pipeline, including three drugs in phase 3 clinical trials. we are likely to get important data sometime this year two have block buster potential, meaning they can generate over $2 million in sales. it has a pipeline that could be very rewarding. intriguing situation. we need to do more work. which is why i'm thrilled to have michael bonner the ceo to tell us more about his company. tell us more about your company. have a seat. >> thank you very much. >> we are trying, obviously, to get our arms around cubist. >> sure. >> you clearly have one of the
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biggest drulgs out there. one of the others are on the come right now? >> they are. we are in the last stage before we submit to the regulatory, two antibiotic, one nonantibiotics. we are bullish about two of them. the third is on the need and fits into our beautiful customer structure. that's leverage. >> that's the urinary tract infection and social diarrhea or opioid. >> suppose it's for the urinary tract and intraabdominal infect, that we think has significant potential. europe companied, it's a $3 million. if the phase 3 comes through. >> our viewers are probably wondering. you talk about hospital infections. fortunately, i hope people don't have to go to hospitals. >> they do. >> i don't think people realize
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hospitals are incubatorso infection. that's where you play the role? >> 1.7 million americans got hospital-acquired infections. >> they didn't have them before they get in. >> 100,000 patients died of hospital-acquired infections. the big problem is that because there are so many very ill patients and a lot of antibiotic use because of ill patients, it's a hotbed for the development of resistance. so when you see the late press, all the articles about superbug, most of the time, not always, they show up in hospitals first. so our focus is really, can we get new antibiotics in to keep patients healthy. >> okay. cubicin, itself, the analysts say it had numbers below expectations in the first quarter. it was because of flu season. my first reaction would be, now, wait a second, what could be more, i don't want to use this term to be glib, better for cubist than flu season?
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>> well, actually, cubicin is a unique antibiotic in that it doesn't work in community-akwiefrd pneumonia, which is most often associated with flu. >> it is catched from one to another. >> you catch it in by breatheing, procedure in your lungs. there is a chemical product in the drug that doesn't make it effective in that circumstance. so when the hospital is full of patients with flu, cubicin is not a good choice. unfortunately, this last winter, the worst flu season we have seen in ages. >> i know we should be able to say it's back on track then. has it, i moon, here we, are flu season is definitely over. are the numbers back on track? >> well, certainly we reported a couple years ago, q1. we will do q2 in july. it's safe to say we didn't change our guidance. we had in the range a pretty good first quarter, independent of what the consensus was. we are comfortable we will deliver 900 million of cubicin revenue.
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>> before we get to the may 7th meeting when we hear about the new drug, we do have hearing, you are in a dog fight with a major pharmaceutical company. i expect to hear something hospira pretty much any day, right, this could come down? >> yeah. what happened was we got notification, a little over a year ago that hospira had filed a challenge with the fda to our patents. so what happens in that circumstance is we sue them to serve our patents. that's a very structured process. the first sort of public part is a marksman hearing. that was held april 10th. the hearing is in front of the judge, in this case in the delaware courts. and the two sides come forward with the key terms in the patentings at issue here. >> okay. >> with their independent definitions of what those terms should mean. in this case, a couple terms. both sides briefed the judge, argued the point. there are two per intellecttives on this.
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what the judge said, in 30 days give or take, he thought he'd be able to deliver an interpretation. >> let's say someone listens to you today, they buy the stock, this comes down, is it the end of the world if you lose? >> not in the markman hearing. the profit the pattern continues and if we have a trial set in february. if we go to trial. who knows, but if we go to trial after that, then the judge will rule on whether the patents are valid or not. remember, we got five patents in this fight. only one of them has to be sustained in order for us to continue to have hos spir ra off the mark. >> one last thing. >> well, we will be providing new data at one of the other drugs. that drug is called interig. it helps mashts with bowl
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surgery get out quicker. the new data presented at that meeting is in patients who have had ratd cal krisectomy. those patients have a hard time getting their bowls post-surgically. the data will be presented is how does our drug get out of the hospital quicker? >> we want to stay tuned to this, we think staying out of the hospital is integral to the whole healthcare system. obviously, to saveing life, too. that's mike bonney, the ceo of cubist pharmaceuticals. there is lots of interpretations on the web. lots more data points this year. stay with cramer. . .
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people keep getting me wrong on netflix. i have been adamant that either microsoft or netflix should buy it. i think it should be a good idea. i'm not saying it's likely to happen. in fact, i'm sure that neither microsoft nor apple is the least bit interested in doing so. i'm also sure that reed hastings, the ceo of netflix isn't a seller. so what's the point of saying it, then? because it really should happen. and just because i'm a journalist and not an vice president banker doesn't mean i'm not allowed to suggest a good merger idea when it comes to me? reed hastings is out. they say netflix currently has 36 million subscribers alone could have 90 million world wide soon.
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over time. he points out that netflix has 9 million more subscribers than the largest cable company. now why does that matter so much first? we had thought apple would unveil a really robust product soon. i think what's holding it up, they only give up the name. i'm thinking that apple must be saying to itself, why not invest the xabl i cable companies entirely by buying netflix. in the meantime, microsoft has a new b-box next month. if microsoft were to buy it and integrate it more fully into the device, i think it would be electric to transform the microsoft portion people like so much, the entertainment device business into a much larger piece of pie. reduce windows' reliance. two things about the criticism of my thinking here, which is occurring with no res nant at jim cramer on twitter t. first thing is people think i have no right to say this thing without knowing it's happening.
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why is that? what's the big issue here, i don't work for goldman sachs? the second criticism is that i say buying netflix would help their stock also. it's almost as if people are saying that doesn't matter. what matters is the deal will be good for business. to which i say, come on, give me a little credit here. the only reason i'm saying it would be good for stocks is it will be good for business. apple needs something omg, they don't have it, at least in 2013. microsoft needs to minimize it's reliance on windows. netflix can give it to them. companies have the cash. for the most parents they don't pay anything. microsoft paid $8 billion for skype. they can spend $15 billion for netflix. then they can negotiate some fabulous deals with the makers of entertainment or make it themselves. apple, they can own the entire liveing room. that cable company in michigan, so forgive me for trying to suggest something that would boost the value of either
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potential acquired. but, trust emany, this is precisely what investment bankers do every day and just because i have a darn tv show doesn't mean i got to check my brain at the doorment stick with cramer. [ music playing ] . ben . ben bernanke is retireing. wheel tell you who should replace him. and chris christie, a 58% rating a republican leader did business obama next up on kudlow. understand my charts, and spend more time trading. . .
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>> >> sally delivers, buld. i'm jim cramer, i will see you tomorrow! good evening, everyone, i'm larry kudlow. this is "the kudlow report." on the six-month i was in of superstorm sandy, chris christie came out all over the media world with both guns blazing that he was right to work with president barack obama on the eve of last fall's election. you know what, he has a 67% approval rating. you know what else, he's a contender. now, a big day in the market. believe it or not, the italians formed a government. that seemed to have wall street cheer. inflation is fallings, consumers are spending, the fed will keep on pumping. bet on get


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