PTC Therapeutics CFO: Rare Potential

1 00:00:06,310 --> 00:00:09,830 all week we've been highlighting some the hottest stocks out their new series 2 00:00:09,830 --> 00:00:10,570 biotech 3 00:00:10,570 --> 00:00:15,120 the next generation travel are taking a closer look at 12 10 4 00:00:15,120 --> 00:00:19,800 best-performing biotech names a 2014 school PTC therapeutics 5 00:00:19,800 --> 00:00:24,220 PT CT which rally to 15 percent leisure and I think there could be even more 6 00:00:24,220 --> 00:00:25,060 upside your 7 00:00:25,060 --> 00:00:29,080 whose PTC isn't orphan drug developer hit just like the company you know I 8 00:00:29,080 --> 00:00:29,750 told you 9 00:00:29,750 --> 00:00:34,010 of NPs former which we learned last week is being acquired by sharp for a monster 10 00:00:34,010 --> 00:00:34,530 premium 11 00:00:34,530 --> 00:00:38,690 PTC top small molecule therapies that modify 12 00:00:38,690 --> 00:00:42,559 are in a transcription and translation which swept fixing rare genetic 13 00:00:42,559 --> 00:00:43,329 disorders 14 00:00:43,329 --> 00:00:46,809 especially those that are caused by what are known as nonsense mutations 15 00:00:46,809 --> 00:00:51,209 in your DNA companies me drug trans lorna has been approved in me 16 00:00:51,210 --> 00:00:54,410 the EU produce a muscular dystrophy will call a DMD 17 00:00:54,410 --> 00:00:59,379 at only fatal working condition and the US launch cook on next year pending FDA 18 00:00:59,379 --> 00:01:00,019 approval 19 00:01:00,019 --> 00:01:03,339 the other by titration develop troopers for this disease including by Marie much 20 00:01:03,340 --> 00:01:04,239 spoke to yesterday 21 00:01:04,239 --> 00:01:08,470 but PTC is alone in targeting a specific subgroup D&D 22 00:01:08,470 --> 00:01:11,670 patients roughly 15 to 20 percent the overall population 23 00:01:11,670 --> 00:01:15,400 who particular genetic mutation that's why the DVD indication alone could 24 00:01:15,400 --> 00:01:18,190 potentially be worth a billion dollars apiece sales for PTC 25 00:01:18,190 --> 00:01:21,820 plus this drug is also being studies treatment for cystic by pro 26 00:01:21,820 --> 00:01:25,380 fibrosis wheres interface three in a group with inherited metabolic disorders 27 00:01:25,380 --> 00:01:27,119 known as MPs which base to 28 00:01:27,120 --> 00:01:31,730 tablet PC is a solid pipeline clearly a spinal muscular atrophy treatment 29 00:01:31,730 --> 00:01:33,740 they're developing novel with Roach 30 00:01:33,740 --> 00:01:37,350 entry on call the platform it targets the stem cells a progressive 31 00:01:37,350 --> 00:01:40,440 drug resistant tumors that's moving into Phase one you know earlier is that 32 00:01:40,440 --> 00:01:41,820 something about Mike's okay 33 00:01:41,820 --> 00:01:45,530 now PTC may have dropped dramatically your but it's also in the sweet spot 34 00:01:45,530 --> 00:01:49,790 what's being work been working biotech so take a close look machine kovacs 35 00:01:49,790 --> 00:01:51,880 chief financial officer PTC therapeutics 36 00:01:51,880 --> 00:01:55,679 find out more about this company and its prospects mister cohen welcome to make 37 00:01:55,680 --> 00:01:56,070 money 38 00:01:56,070 --> 00:01:57,450 this user 39 00:01:57,450 --> 00:02:01,170 nice to meet you watching I've gotta tell you when I was going through %uh 40 00:02:01,170 --> 00:02:05,460 my first thing I read this was like wait a second Rd MD we are no indications 41 00:02:05,460 --> 00:02:07,270 just my personal reno's working that 42 00:02:07,270 --> 00:02:10,440 you what he wants upsets apps upsets 43 00:02:10,440 --> 00:02:14,060 where no one else seems to be change conditions 44 00:02:14,060 --> 00:02:18,710 tell us about the D&D in window of what's so important they can get your 45 00:02:18,710 --> 00:02:23,000 that's right i mean so for all these rare diseases were talking about 46 00:02:23,000 --> 00:02:27,020 different mutations that ultimately lead to the loss in the protein addition 47 00:02:27,020 --> 00:02:30,270 muscular dystrophy that's these nonsense mutations that we're focused on 48 00:02:30,270 --> 00:02:33,300 its also truancy at it's also true in MPS 49 00:02:33,300 --> 00:02:36,730 so it was a ten-percent other people love it 5 percent of the people that 50 00:02:36,730 --> 00:02:37,350 disease 51 00:02:37,350 --> 00:02:41,739 yeah in to shed its between 10 and 15 percent we estimate around 13 percent 52 00:02:41,740 --> 00:02:46,440 in CF it's around 10 percent in NPS is actually but 62 eighty percent of 53 00:02:46,440 --> 00:02:47,370 patients okay 54 00:02:47,370 --> 00:02:52,010 how people know if they have that mutation they have to go and get 55 00:02:52,010 --> 00:02:56,010 Gina typically identified to have to sequence the DNA to confirm that it 56 00:02:56,010 --> 00:02:59,810 is a nonsense mutation as opposed to one any other type and deletion we do five 57 00:02:59,810 --> 00:03:00,300 years ago 58 00:03:00,300 --> 00:03:04,750 a it's getting faster and is getting cheaper to do it for the patients 59 00:03:04,750 --> 00:03:08,019 okay when the things that I notice was missus sad stuff for you 60 00:03:08,019 --> 00:03:11,090 actually everything you treat ourselves is very sad because 61 00:03:11,090 --> 00:03:14,370 is one where it looks like that if you get to people who were between five and 62 00:03:14,370 --> 00:03:15,220 six years old 63 00:03:15,220 --> 00:03:18,510 you might be able to say their lives looks like later on you can't 64 00:03:18,510 --> 00:03:22,149 your intuition you wanna treat these boys 65 00:03:22,150 --> 00:03:25,680 as the younger cool with that right it's boys that year 66 00:03:25,680 --> 00:03:29,730 its predominately boys because it's XLink genetic disorders what lies on the 67 00:03:29,730 --> 00:03:31,049 extra chromosome 68 00:03:31,049 --> 00:03:34,150 now if they don't have abstract Erum the 69 00:03:34,150 --> 00:03:37,209 all the research is that could be worth a billion dollars it seems like that if 70 00:03:37,209 --> 00:03:37,560 the 71 00:03:37,560 --> 00:03:41,110 if that they have to be treated for many years in an all-male they do died but 72 00:03:41,110 --> 00:03:41,380 that 73 00:03:41,380 --> 00:03:45,420 I healthcare me a health maintenance organization would have to pay millions 74 00:03:45,420 --> 00:03:46,400 over time 75 00:03:46,400 --> 00:03:49,959 to take care these people unless these people were identified and they take 76 00:03:49,959 --> 00:03:50,530 your drop 77 00:03:50,530 --> 00:03:55,280 into shenice some muscle wasting to sort out what we're trying to do is stabilize 78 00:03:55,280 --> 00:03:57,950 the boys to keep their healthy muscle healthy 79 00:03:57,950 --> 00:04:01,630 hot so that it doesn't isn't nope so easily damage 80 00:04:01,630 --> 00:04:05,630 in so you wanna T his body as possible this will be a chronic their people take 81 00:04:05,630 --> 00:04:06,790 it for the rest of their lives 82 00:04:06,790 --> 00:04:10,310 about cystic fibrosis again you're not trying to do what vertex is doing you 83 00:04:10,310 --> 00:04:11,750 got a specific subsets 84 00:04:11,750 --> 00:04:15,820 cyst yet this is a mutation that this different and distinct from the 85 00:04:15,820 --> 00:04:18,920 from the mutations that vertex is working on this is the nonsense 86 00:04:18,920 --> 00:04:20,330 mutations the class 1 87 00:04:20,329 --> 00:04:23,750 is actually the most severe form a cystic fibrosis 88 00:04:23,750 --> 00:04:27,670 hurt you are stumble on this whole are in a technology 89 00:04:27,670 --> 00:04:31,240 it's very different from companies that use a we're going to go cure cystic 90 00:04:31,240 --> 00:04:32,190 fibrosis 91 00:04:32,190 --> 00:04:36,310 you know we've got a different and unique approach to are in a biology into 92 00:04:36,310 --> 00:04:39,100 rare diseases unlike some of the enzyme replacement their eyes 93 00:04:39,100 --> 00:04:43,330 where you making the protein in a lab and then if using it we 94 00:04:43,330 --> 00:04:47,289 our approach is to enable the patience to produce their own protein 95 00:04:47,290 --> 00:04:51,660 using a small molecule approach now there's you're not proved to me this is 96 00:04:51,660 --> 00:04:53,910 not something as pie in the sky is happening right now 97 00:04:53,910 --> 00:04:57,200 yet last year was a monumental year for us because 98 00:04:57,200 --> 00:05:00,680 the European authorities approved Arjun this the first approval 99 00:05:00,680 --> 00:05:04,980 ever in this disease for the underlying cause and given that that means that 100 00:05:04,980 --> 00:05:08,480 you're going to have read the news and it would seem that the EU likes it what 101 00:05:08,480 --> 00:05:12,820 we've seen is it's very rare that do you like something that the FDA does it 102 00:05:12,820 --> 00:05:16,250 right now we we've already begun shipping to patients in Europe and 103 00:05:16,250 --> 00:05:17,620 actually in a lot of countries 104 00:05:17,620 --> 00:05:22,260 outside a europe to recognise the European approval in the US we've got 105 00:05:22,260 --> 00:05:26,780 the largest study ever to be done in DMD it's well under way i'll read out at the 106 00:05:26,780 --> 00:05:27,490 end of this year 107 00:05:27,490 --> 00:05:30,820 but it knows people look into it we'll see that it's really we still talking to 108 00:05:30,820 --> 00:05:32,250 him for people in Europe right 109 00:05:32,250 --> 00:05:35,720 means the numbers are not big yeah it's its it is a unique 110 00:05:35,720 --> 00:05:39,760 it's a 2500 potential patients in but I mean right now your role in just a 111 00:05:39,760 --> 00:05:41,210 handful people painful 112 00:05:41,210 --> 00:05:45,090 have found it so far right yeah we've got will work early in the launch right 113 00:05:45,090 --> 00:05:46,470 so how many right now 114 00:05:46,470 --> 00:05:50,220 with a look at we've just launched in Germany last month 115 00:05:50,220 --> 00:05:53,570 we started to shipping into France and to Spain 116 00:05:53,570 --> 00:05:57,480 earlier towards the end of last year okay because I want people to know that 117 00:05:57,480 --> 00:05:59,660 this is early but you do what you are gonna 118 00:05:59,660 --> 00:06:03,100 revenues from the spotlight and there's a bright future for yet no 119 00:06:03,100 --> 00:06:06,380 European launches are slower than the US right but they do 120 00:06:06,380 --> 00:06:10,120 gain momentum okay well now people know why it's up so much is rare 121 00:06:10,120 --> 00:06:14,410 and it's the only thing for these people at Shinko that's the Seattle 122 00:06:14,410 --> 00:06:18,230 PTC therapeutics nice very thorough presentation from this one 123 00:06:18,230 --> 00:06:21,510 if you wanna know more about it don't buy the stock and to you bread 124 00:06:21,510 --> 00:06:23,190 the presentation him ice pack

Relypsa CEO John Orwin: Fast-Track Funds?

1 00:00:06,950 --> 00:00:09,410 why am I so focused on the biotech space for your 2 00:00:09,410 --> 00:00:12,800 because in an environment where what's happening in the rest the world can 3 00:00:12,800 --> 00:00:14,660 question or markets on a day-to-day basis 4 00:00:14,660 --> 00:00:17,660 he's biotech companies have no real economic sense to the 5 00:00:17,660 --> 00:00:21,490 what so ever do not bother the Swiss franc and i'm bob with Japanese 6 00:00:21,490 --> 00:00:22,539 deflation their 7 00:00:22,539 --> 00:00:26,380 immunize against the forces that slammed the average speak these are businesses 8 00:00:26,380 --> 00:00:28,939 where if you do the homework and fall what's happening at the individual 9 00:00:28,939 --> 00:00:29,619 companies 10 00:00:29,619 --> 00:00:33,449 you may be surprised by disappointing clinical trial results 11 00:00:33,449 --> 00:00:37,460 or maybe a shock incision from the FDA but Chuck be blindsided by the European 12 00:00:37,460 --> 00:00:40,670 Central Bank with that in mind let me introduce you to 13 00:00:40,670 --> 00:00:46,840 relapse or L Y P that is a 1.15 billion dollar by a cat focused on developing 14 00:00:46,840 --> 00:00:49,460 treatment for kidney cardiovascular metabolic disorders 15 00:00:49,460 --> 00:00:53,520 specific you specifically relapse is getting closer to the finish line 16 00:00:53,520 --> 00:00:58,379 with upper tier amor are its treatment for hypercalcemia 17 00:00:58,379 --> 00:01:02,789 or high potassium levels in plain English a serious medical problem need 18 00:01:02,789 --> 00:01:04,089 some modern solutions 19 00:01:04,089 --> 00:01:07,590 as the best run calmly on the mark was approved in 1958 20 00:01:07,590 --> 00:01:11,029 are the FDA is expected to make its decision on procurement 21 00:01:11,029 --> 00:01:15,240 by late October and early this month we learned that it doesn't plan to convene 22 00:01:15,240 --> 00:01:18,990 Advisory Committee drug meeting on the drug and that got a that's really Bosh 23 00:01:18,990 --> 00:01:22,999 the question now is how big is the market selects a plan to talk in 24 00:01:22,999 --> 00:01:25,208 patients with heart failure and chronic kidney disease 25 00:01:25,209 --> 00:01:28,189 publisher millions which could potentially make this a blockbuster drug 26 00:01:28,189 --> 00:01:28,840 in short order 27 00:01:28,840 --> 00:01:32,499 however new drug wants to be complicated special just relax a as potential 28 00:01:32,499 --> 00:01:35,189 competitor that's less than a year behind them in a development cycle 29 00:01:35,189 --> 00:01:39,849 short spectrum's stock a lot of upside potential major risk let's dig deeper 30 00:01:39,849 --> 00:01:42,149 with John or win the presidency overlaps a 31 00:01:42,149 --> 00:01:44,460 to hear more about his company and where 10 32 00:01:44,460 --> 00:01:49,170 storm welcome at my thank you very much jim is a delight to be on the show 33 00:01:49,170 --> 00:01:52,640 thank you for SAR nothing since 1958 34 00:01:52,640 --> 00:01:56,860 I mean that's got to be one of the most unmet needs out there it is a very 35 00:01:56,860 --> 00:02:00,960 significant unmet need and to the point you may be for about the size of the 36 00:02:00,960 --> 00:02:02,060 population 37 00:02:02,060 --> 00:02:06,030 there are between 14 and 15 million patients with 38 00:02:06,030 --> 00:02:09,449 clinically significant chronic kidney disease and 39 00:02:09,449 --> 00:02:13,109 love those patients approximately 20 percent or upward of 40 00:02:13,110 --> 00:02:17,820 three million patients will suffer from moderate to severe hyperkalemia 41 00:02:17,820 --> 00:02:21,950 and as you point out this is an important medical condition to treat 42 00:02:21,950 --> 00:02:26,260 these patients are at six significantly increased risk 43 00:02:26,260 --> 00:02:30,820 have cardiac arrhythmia and cardiac death bought one of the things that I 44 00:02:30,820 --> 00:02:32,320 thought that was that 45 00:02:32,320 --> 00:02:38,410 I to people know that they had they actually don't typically now 46 00:02:38,410 --> 00:02:41,770 it's largely a symptomatic on which is 47 00:02:41,770 --> 00:02:44,980 something that makes it that much more frightening I think on 48 00:02:44,980 --> 00:02:49,780 but positions will typically now because they're measuring patients blood counts 49 00:02:49,780 --> 00:02:53,010 on a regular basis whenever patients are seen 50 00:02:53,010 --> 00:02:57,510 I so a physician will usually know that a patient has an hi 51 00:02:57,510 --> 00:03:01,010 an elevated potassium but your point there haven't been any 52 00:03:01,010 --> 00:03:04,040 new treatment options in like sixty-two years 53 00:03:04,040 --> 00:03:07,950 and that the all option that exists is really not a good one it's not very well 54 00:03:07,950 --> 00:03:10,220 tolerated it hasn't been shown to be 55 00:03:10,220 --> 00:03:14,720 I effective in in clinical trials are subjected to the kind of scrutiny that 56 00:03:14,720 --> 00:03:17,750 I'm a new product like ours would be 57 00:03:17,750 --> 00:03:22,100 so it's really important to have new treatment options for these patients and 58 00:03:22,100 --> 00:03:24,330 treatment options that are well tolerated enough 59 00:03:24,330 --> 00:03:27,430 that they can be given on a daily basis because after all 60 00:03:27,430 --> 00:03:30,600 chronic kidney disease is a chronic disease 61 00:03:30,600 --> 00:03:34,970 right so quiet disease chronic treatment take your polymer in a power for meat 62 00:03:34,970 --> 00:03:35,550 week 63 00:03:35,550 --> 00:03:39,320 that's right now you'd actually take it daily 64 00:03:39,320 --> 00:03:42,640 patients in clinical trials took a tear Mar twice daily 65 00:03:42,640 --> 00:03:46,800 it's a powder that you mix with a very small volume of water 66 00:03:46,800 --> 00:03:47,710 and 67 00:03:47,710 --> 00:03:51,710 and you swallow it and the way it works is that as it goes through the digestive 68 00:03:51,710 --> 00:03:52,560 tract 69 00:03:52,560 --> 00:03:57,900 it actually binds to potassium and so it's taking potassium excess potassium 70 00:03:57,900 --> 00:04:01,470 and removing it from the body at 71 00:04:01,470 --> 00:04:04,750 potassium is a very important electrolyte for 72 00:04:04,750 --> 00:04:08,230 cardiac function and in fact I'm for human life 73 00:04:08,230 --> 00:04:13,250 the issue is that your body needs to control potassium within a relatively 74 00:04:13,250 --> 00:04:14,720 narrow range 75 00:04:14,720 --> 00:04:18,738 we all take in far more potassium than we need in our diets 76 00:04:18,739 --> 00:04:22,570 and physiologically normal healthy folks 77 00:04:22,570 --> 00:04:25,880 you just excrete the excess potassium through your kidneys 78 00:04:25,880 --> 00:04:29,480 but as the name would suggest chronic kidney disease patients 79 00:04:29,480 --> 00:04:34,180 have a compromised kidney function and therefore a compromise the ability to 80 00:04:34,180 --> 00:04:35,900 actually excrete potassium 81 00:04:35,900 --> 00:04:39,690 and that's why these patients are in need of something that they can take on 82 00:04:39,690 --> 00:04:40,810 a daily basis 83 00:04:40,810 --> 00:04:44,620 that will remove excess potassium really keep them in what we call the normal 84 00:04:44,620 --> 00:04:45,720 Kaylee mid-range 85 00:04:45,720 --> 00:04:49,650 where they're not at that elevated risk and that's exactly what our product us 86 00:04:49,650 --> 00:04:52,960 now what I took it is very bullish that the FDA 87 00:04:52,960 --> 00:04:57,530 did not are ask for an invite convening advisory committee meeting is obviously 88 00:04:57,530 --> 00:05:01,370 I think that means that the FDA wants to get something for these people if your 89 00:05:01,370 --> 00:05:02,050 drug works 90 00:05:02,050 --> 00:05:05,060 faster then typically that i've seen 91 00:05:05,060 --> 00:05:08,360 well my experience 92 00:05:08,360 --> 00:05:12,910 working with the FDA has been very constructive and productive one 93 00:05:12,910 --> 00:05:18,060 on its it's probably not good to true try to read into everything that they do 94 00:05:18,060 --> 00:05:22,050 but we're certainly encouraged by the fact that they decided at least for now 95 00:05:22,050 --> 00:05:22,610 that 96 00:05:22,610 --> 00:05:27,190 they don't need to convene a panel I think the way the product works and what 97 00:05:27,190 --> 00:05:28,900 it does is pretty straightforward 98 00:05:28,900 --> 00:05:32,650 and I think our team put together a very 99 00:05:32,650 --> 00:05:37,990 quality submission and also we conducted very rigorous clinical trials 100 00:05:37,990 --> 00:05:42,140 I in hundreds of patients to demonstrate both at the product 101 00:05:42,140 --> 00:05:45,520 I is effective in removing potassium but also that 102 00:05:45,520 --> 00:05:50,229 and what we saw was a tolerability profile suggesting that it could be used 103 00:05:50,230 --> 00:05:53,570 on a chronic daily basis so all those things I think 104 00:05:53,570 --> 00:05:56,900 are important and I think the FDA's decision 105 00:05:56,900 --> 00:05:58,910 at least for now not to hold the panel 106 00:05:58,910 --> 00:06:02,190 is encouraging on white one last quick question 107 00:06:02,190 --> 00:06:05,800 yeah I got punched for a house which where I heard that too much salt is bad 108 00:06:05,800 --> 00:06:08,690 and that you get a heart attack or you get high blood pressure from too much 109 00:06:08,690 --> 00:06:09,180 salt 110 00:06:09,180 --> 00:06:12,850 you said listen most people can live within a band but is a possible that 111 00:06:12,850 --> 00:06:14,790 your drugs much bigger than we think because 112 00:06:14,790 --> 00:06:18,150 a market each too much sugar in America eats too much saw 113 00:06:18,150 --> 00:06:21,970 could jurors be the answer for those of us who are being addicted to salt and 114 00:06:21,970 --> 00:06:25,020 just desired all the time even though we know it's bad for us 115 00:06:25,020 --> 00:06:29,820 well many of these patients are sodium restricted in so they can't 116 00:06:29,820 --> 00:06:33,520 take a lot of salt and that's why we designed our product 117 00:06:33,520 --> 00:06:36,830 to exchange calcium for potassium rather than sodium 118 00:06:36,830 --> 00:06:40,190 hide it or not introducing any new sodium impatience 119 00:06:40,190 --> 00:06:43,580 are but it's going to be important that they continue to 120 00:06:43,580 --> 00:06:47,370 I am limit the amount of sodium that they take in their diet 121 00:06:47,370 --> 00:06:51,240 particularly those patients with chronic kidney disease and patients with 122 00:06:51,240 --> 00:06:54,370 with heart conditions all this just makes a time a sense to me and I totally 123 00:06:54,370 --> 00:06:56,710 understand why your stock has been strong 124 00:06:56,710 --> 00:07:01,229 ot its if there's nothing since 1958 is a lifesaver certainly like to do 125 00:07:01,229 --> 00:07:04,229 John Owen president/ceo a burlap sack R L Y P 126 00:07:04,229 --> 00:07:07,530 thank you so much my pleasure thank you by guys 127 00:07:07,530 --> 00:07:10,850 understand the sole we come show you things there's 128 00:07:10,850 --> 00:07:13,960 unmet needs out there their companies to work in the summit needs 129 00:07:13,960 --> 00:07:18,050 and the when they strike gold you win and they save lives 130 00:07:18,050 --> 00:07:20,590 to which of course is far more important stick with me

Isis Pharmaceuticals CEO Dr. Stanley Crooke

1 00:00:06,910 --> 00:00:10,429 it for today's filing pacing let's not forget that the work actually some 2 00:00:10,429 --> 00:00:11,050 stocks that 3 00:00:11,050 --> 00:00:15,179 rallied this session stocks like kramer faith ices form a suitable was climbed 4 00:00:15,179 --> 00:00:19,590 six dollars in city since 10.72 percent when news about major partnership with 5 00:00:19,590 --> 00:00:20,698 changing to develop 6 00:00:20,699 --> 00:00:24,539 drugs for 18 use disorders affecting the gastrointestinal tract 7 00:00:24,539 --> 00:00:28,279 change a possibly pay as much as $835 million dollars over time 8 00:00:28,279 --> 00:00:32,028 i'd taking any potential role isn't a cap always maintain 9 00:00:32,029 --> 00:00:35,340 ice is a trip to come because there are so many shots on goal 34 different 10 00:00:35,340 --> 00:00:36,809 development programs is pipeline 11 00:00:36,809 --> 00:00:40,468 today's news really brings home that point because before this morning 12 00:00:40,469 --> 00:00:44,420 frankly I don't allow workers coming in every member in the GI tract on the J 13 00:00:44,420 --> 00:00:47,570 changes so excited about this is so many different opportunities 14 00:00:47,570 --> 00:00:50,950 it's hard to keep track for those you don't remember ice is supplying you're 15 00:00:50,950 --> 00:00:51,539 in the field 16 00:00:51,539 --> 00:00:55,690 80 cents technology medical speak for therapies that work by binding to be are 17 00:00:55,690 --> 00:00:57,038 in a in person sells 18 00:00:57,039 --> 00:01:00,629 live in the company's drugs to basically control the expression to be given 19 00:01:00,629 --> 00:01:01,788 individuals jeans 20 00:01:01,789 --> 00:01:06,670 terrific way to treat a broad various nasty inherited genetic disorders 21 00:01:06,670 --> 00:01:10,110 we just bought ice is CEO back in December Ted less than three weeks ago 22 00:01:10,110 --> 00:01:12,830 I'd burn entire segment to the company's revolutionary 23 00:01:12,830 --> 00:01:17,408 anti-clotting drug FX I 1 %uh many potential blockbusters in the company's 24 00:01:17,409 --> 00:01:17,909 pipeline 25 00:01:17,909 --> 00:01:21,780 which also includes ices of Phase three treatment for TTR and worry 26 00:01:21,780 --> 00:01:25,530 dice its phase 3 therapy for spinal muscular atrophy 27 00:01:25,530 --> 00:01:28,680 which is the leading cause of him tell death worldwide not to mention the catch 28 00:01:28,680 --> 00:01:31,720 a trip to come is developing for its own diabetes formulations it 29 00:01:31,720 --> 00:01:35,280 now ices rallied nearly 55 percent this year today's move tells me 30 00:01:35,280 --> 00:01:38,290 this innovation could have a lot more room to run don't think it for me let's 31 00:01:38,290 --> 00:01:41,409 check in with doctor stanley quote the Founder Chairman CEO of my sis 32 00:01:41,409 --> 00:01:44,510 hear more about this partnership will change and what it means for 33 00:01:44,510 --> 00:01:47,980 the doctor cock welcome back Jul its greatest 34 00:01:47,980 --> 00:01:51,650 way to start the new year okay what I I did not know that 35 00:01:51,650 --> 00:01:54,850 that you were working on autoimmune disorders to the gastrointestinal tract 36 00:01:54,850 --> 00:01:59,600 what J&J's Janssen division see that they think they can commercialize you 37 00:01:59,600 --> 00:02:05,960 well an assist technology is versatile and it's and it's efficient and 38 00:02:05,960 --> 00:02:09,399 highly specific and so it's an incredible tool 39 00:02:09,399 --> 00:02:13,470 the to add to the efficiency and drug discovery 40 00:02:13,470 --> 00:02:16,700 of course we do have experience in the GI tract 41 00:02:16,700 --> 00:02:20,220 some years ago with the first generation antisense drug 42 00:02:20,220 --> 00:02:24,150 so we do have GI experience and what's really exciting 43 00:02:24,150 --> 00:02:27,400 to us about this collaboration is 44 00:02:27,400 --> 00:02:30,940 it it it it expands the borders have the technology 45 00:02:30,940 --> 00:02:35,470 once again because this is focused now on oral administration 46 00:02:35,470 --> 00:02:39,050 for local treatment gastrointestinal diseases 47 00:02:39,050 --> 00:02:43,220 and so that's a space that's new for the technology but its 48 00:02:43,220 --> 00:02:47,239 adjacent to areas that we've worked before so we have high confidence it can 49 00:02:47,239 --> 00:02:47,970 work 50 00:02:47,970 --> 00:02:53,489 and once again expands the breadth utility in the technology I think that's 51 00:02:53,489 --> 00:02:54,090 the thing 52 00:02:54,090 --> 00:02:57,830 that should get people most excited one more 53 00:02:57,830 --> 00:03:01,600 not on the belt of all the different opportunities that we have 54 00:03:01,600 --> 00:03:05,220 to take advantage of with this technology what specific illnesses are 55 00:03:05,220 --> 00:03:08,200 we speaking up when we speak of gastrointestinal tract Hills 56 00:03:08,200 --> 00:03:13,190 well these are is often inflammatory diseases like Crohn's and ulcerative 57 00:03:13,190 --> 00:03:17,060 colitis and then their diseases like your double ballot syndrome 58 00:03:17,060 --> 00:03:21,370 and then they're all the inflammatory disorders that that relate to the immune 59 00:03:21,370 --> 00:03:23,239 function so the GI tract 60 00:03:23,239 --> 00:03:27,850 so there's a very large consolation to diseases that are primarily manifested 61 00:03:27,850 --> 00:03:28,590 in the gut 62 00:03:28,590 --> 00:03:33,329 a and and n new treatments are needed desperately 63 00:03:33,329 --> 00:03:34,730 J&J 64 00:03:34,730 --> 00:03:39,870 of course brings experience in that space with Remicade in all the other 65 00:03:39,870 --> 00:03:41,659 work that they have done over the years 66 00:03:41,659 --> 00:03:45,489 so there the ideal partner that we would choose to 67 00:03:45,489 --> 00:03:49,940 to do this next step in the technology I noticed it too close a 68 00:03:49,940 --> 00:03:53,940 a doctor that you appointed Sarah Boyce's chief business 69 00:03:53,940 --> 00:03:57,670 officer she used to be it Biden abortus I'll exxon for slabs 70 00:03:57,670 --> 00:04:00,970 are you in a different phase now with my sis are you in the face for your 71 00:04:00,970 --> 00:04:03,340 commercializing not taught what's in the lab 72 00:04:03,340 --> 00:04:06,680 well we r evolving 73 00:04:06,680 --> 00:04:11,290 now and and in that evolution to things that we want to accomplish 74 00:04:11,290 --> 00:04:15,459 the first is there's there is a group of drugs in particular the 75 00:04:15,459 --> 00:04:19,070 the drugs to constitute or lipid franchise now 76 00:04:19,070 --> 00:04:23,479 a pushy three rx able they are actually an engine put like three rx 77 00:04:23,479 --> 00:04:26,740 all three unique forming a true franchise 78 00:04:26,740 --> 00:04:29,880 and all having a 79 00:04:29,880 --> 00:04:33,789 relatively rare disease opportunity to begin with and then a much broader 80 00:04:33,789 --> 00:04:34,760 opportunity 81 00:04:34,760 --> 00:04:39,760 so those trucks were keeping a and we're in phase 3 with a pushy three in phase 2 82 00:04:39,760 --> 00:04:40,960 with a belay and 83 00:04:40,960 --> 00:04:44,049 about to go down face to with and you put like three 84 00:04:44,050 --> 00:04:49,639 and and so well we're certainly keeping in two phase 3 and 85 00:04:49,639 --> 00:04:53,340 and beam a commercialized them so ourselves our partner them at a later 86 00:04:53,340 --> 00:04:54,160 date 87 00:04:54,160 --> 00:04:57,539 the goal there is to retain much more control 88 00:04:57,539 --> 00:05:02,000 and to and two course retain a much bigger piece in the Bakken 89 00:05:02,000 --> 00:05:05,110 so sharer brings 90 00:05:05,110 --> 00:05:08,680 you know all this successful business experience to 91 00:05:08,680 --> 00:05:12,310 to contribute to the decision making that entices 92 00:05:12,310 --> 00:05:16,880 from a business perspective and that's very important what should be managing 93 00:05:16,880 --> 00:05:20,750 to a number of functions that use report directly to lynn partial 94 00:05:20,750 --> 00:05:24,169 and now they'll report to her to didn't 95 00:05:24,169 --> 00:05:28,630 tend to lynn and tomorrow we'll announce the appointment AFP also 96 00:05:28,630 --> 00:05:32,969 propolis who will will will become CEO 97 00:05:32,970 --> 00:05:36,479 other newly formed subsidiary we call axiom 98 00:05:36,479 --> 00:05:41,820 and that that subsidiary is responsible or will be responsible for the late 99 00:05:41,820 --> 00:05:44,530 development commercialization number lipid franchise 100 00:05:44,530 --> 00:05:46,710 so these are big step for us 101 00:05:46,710 --> 00:05:51,349 I'll and yet they are steps that are consistent with the designer the company 102 00:05:51,349 --> 00:05:55,628 which is much more consortium sort of configuration rather than 103 00:05:55,629 --> 00:06:00,719 the this or a preamble fully integrated pharmaceutical company configuration 104 00:06:00,719 --> 00:06:03,759 and absolutely assures that the core a vice is 105 00:06:03,759 --> 00:06:08,589 state focus on where the real leverage years which is basic science 106 00:06:08,589 --> 00:06:13,520 technology development drug discovery and early development well doctor 107 00:06:13,520 --> 00:06:16,580 crop once again I mean this is breathtaking new smart stock up 10 108 00:06:16,580 --> 00:06:19,389 percent in one day and one the worst days you had a long time 109 00:06:19,389 --> 00:06:23,490 thank you so much for coming on a mad money well appreciated 110 00:06:23,490 --> 00:06:27,599 it's great to be back get Stanley cook cookies the Chairman CEO 111 00:06:27,599 --> 00:06:30,990 up ices pharmaceuticals nicest that would have been up even more 112 00:06:30,990 --> 00:06:33,319 the market one so hard name on his back

Cisco Systems CEO John T. Chambers: A Dow Dazzler

1 00:00:06,419 --> 00:00:10,180 20 hideous tape for the false it's worth certain why king's ransom the market's 2 00:00:10,180 --> 00:00:11,690 most powerful leaders 3 00:00:11,690 --> 00:00:15,100 that a pullback courtesy the recent sell-off talk about companies like Cisco 4 00:00:15,100 --> 00:00:16,100 the networking 5 00:00:16,100 --> 00:00:19,599 kingpin which is the 5th best-performing stock in the Dow Jones Industrial 6 00:00:19,599 --> 00:00:20,240 Average Fisher 7 00:00:20,240 --> 00:00:24,869 I think you can you be a bad this reform in 2015 sisters watching some major pop 8 00:00:24,869 --> 00:00:27,198 cycles here and let me the company's shift its focus 9 00:00:27,199 --> 00:00:30,630 toward lowering more software focus cloud-based solutions 10 00:00:30,630 --> 00:00:34,260 carry higher margins the one issue here's the Cisco typically goes 11 00:00:34,260 --> 00:00:37,440 does well when the global economy is warning but outside the United States 12 00:00:37,440 --> 00:00:40,210 was very strong the rest the world not looking so hot 13 00:00:40,210 --> 00:00:43,960 still the stock is relatively cheap air space with 2.2 percent dividend yield 14 00:00:43,960 --> 00:00:47,360 coming out record-breaking quarter on many measures especially given the 15 00:00:47,360 --> 00:00:50,320 company's dominance a ball things internet so let's take a closer look 16 00:00:50,320 --> 00:00:52,610 with john chambers the Chairman CEO says go 17 00:00:52,610 --> 00:00:56,060 on the eve of the huge Consumer Electronics Show in Vegas for more about 18 00:00:56,060 --> 00:00:57,620 how was companies doing where it's headed 19 00:00:57,620 --> 00:01:02,770 John welcome back to make money Jim it's a pleasure to be with you again today 20 00:01:02,770 --> 00:01:06,200 thank you John can you give us a little preview of what you'll be saying at the 21 00:01:06,200 --> 00:01:08,740 giant consumer electronics show because I know that your company's 22 00:01:08,740 --> 00:01:13,820 a bit of the star at the event well Jim I think the 23 00:01:13,820 --> 00:01:17,190 most important issue they will be covered this year's around the unit 24 00:01:17,190 --> 00:01:17,920 thanks 25 00:01:17,920 --> 00:01:22,030 I we caught the unit have everything it's when you digitize everything from 26 00:01:22,030 --> 00:01:23,760 your car to your house 27 00:01:23,760 --> 00:01:26,860 to the clothes you wear to your health care I 28 00:01:26,860 --> 00:01:29,970 to the company's to the cities in countries around the world 29 00:01:29,970 --> 00:01:34,929 that's about a nineteen trillion-dollar are opportunity for profits are cost 30 00:01:34,930 --> 00:01:36,720 savings over the next decade 31 00:01:36,720 --> 00:01:41,380 I within that security becomes a mast you have talked about there is no such 32 00:01:41,380 --> 00:01:42,899 thing as a secure environment 33 00:01:42,900 --> 00:01:47,710 a year or two ago and that is turned out to be very true so the ability to bring 34 00:01:47,710 --> 00:01:49,150 security that picture 35 00:01:49,150 --> 00:01:52,690 then you combine all those what we call market transitions 36 00:01:52,690 --> 00:01:56,990 the elements have clout the elements such software the elements a mobility 37 00:01:56,990 --> 00:02:01,270 collaboration big day takes at church and they enable 38 00:02:01,270 --> 00:02:04,869 every company become a digital company said does it may be the areas we focus 39 00:02:04,869 --> 00:02:05,270 on 40 00:02:05,270 --> 00:02:10,500 key takeaway so GM it's about pace of change if companies or countries 41 00:02:10,500 --> 00:02:14,070 and ability to operate a much faster speed up innovation 42 00:02:14,070 --> 00:02:18,530 that we did before Matt panel be around I V gain fast innovation 43 00:02:18,530 --> 00:02:23,410 I'll be focused on disruptor be disrupted with the president of comcast 44 00:02:23,410 --> 00:02:25,829 and the CEO Bosch as an example Jim 45 00:02:25,830 --> 00:02:30,540 are judged you have often given forecast that seemed wildly outrageous about the 46 00:02:30,540 --> 00:02:32,230 amount of data that was going to be 47 00:02:32,230 --> 00:02:35,899 put on the Internet just as general be generated enable proven 48 00:02:35,900 --> 00:02:39,030 really right how about the next five years how much she said 49 00:02:39,030 --> 00:02:44,850 I think the market is still way too conservative GM on the loads on networks 50 00:02:44,850 --> 00:02:48,810 and the amount of information about 90 percent-plus said today's 51 00:02:48,810 --> 00:02:53,000 I loads are video I think you gonna see the explosion a video 52 00:02:53,000 --> 00:02:56,460 I we build high-end routers now they re capable 53 00:02:56,460 --> 00:03:00,220 I've hando in Liberty billions a video transactions that one time 54 00:03:00,220 --> 00:03:03,910 so I think GM this internet have everything we talked about 55 00:03:03,910 --> 00:03:08,070 I will load networks like never before but you have intelligence throughout 56 00:03:08,070 --> 00:03:08,489 that 57 00:03:08,490 --> 00:03:12,860 connect in the clouds to data centers to the wide area network to the edge 58 00:03:12,860 --> 00:03:16,239 with the capability to converge compute and storage 59 00:03:16,239 --> 00:03:20,820 in processing capability with the network with proper security in scale 60 00:03:20,820 --> 00:03:21,470 ability 61 00:03:21,470 --> 00:03:25,200 which plays right into Cisco sweet spots I think you gonna see explosive growth 62 00:03:25,200 --> 00:03:28,620 I think the impact will be five to 10 times 63 00:03:28,620 --> 00:03:31,989 be impacted the Internet to date in terms of technology 64 00:03:31,989 --> 00:03:35,380 and loads on network small we've known date you are 65 00:03:35,380 --> 00:03:38,720 Salman aggressive in these numbers but a proven to be conservative yourself down 66 00:03:38,720 --> 00:03:41,340 John you did have a great return to growth miss last quarter 67 00:03:41,340 --> 00:03:44,680 at the same time you did mention thanks irv service provider 68 00:03:44,680 --> 00:03:48,040 slowed and you mention two or three providers that you think 69 00:03:48,040 --> 00:03:51,040 have had to scale back any change in that 70 00:03:51,040 --> 00:03:55,100 any change that maybe spend he's coming back in that one area that is so 71 00:03:55,100 --> 00:03:55,610 important 72 00:03:55,610 --> 00:04:00,260 which emit I could let me can you take a step back in 73 00:04:00,260 --> 00:04:03,609 and just remember that everything I'm talking about is what I said about the 74 00:04:03,610 --> 00:04:04,519 prior quarter 75 00:04:04,519 --> 00:04:07,610 are looking out over this next year sedan searchers matters very 76 00:04:07,610 --> 00:04:08,700 specifically 77 00:04:08,700 --> 00:04:12,950 we made major organization changes and how we go to market how we align with 78 00:04:12,950 --> 00:04:13,940 service providers 79 00:04:13,940 --> 00:04:17,548 and where we see our opportunities over the last six to 12 months 80 00:04:17,548 --> 00:04:21,209 that starting to gain traction so did look over this next year 81 00:04:21,209 --> 00:04:25,400 I'd look for steady improvement still challenging introducers matter span so 82 00:04:25,400 --> 00:04:26,900 it's about share wanted span 83 00:04:26,900 --> 00:04:30,199 over the next four quarters and see if we make progress each quarter 84 00:04:30,199 --> 00:04:34,310 but what we also said last quarter gym that I think you hit on very effectively 85 00:04:34,310 --> 00:04:38,650 is we were a little bit more optimistic about the US economy that summer appears 86 00:04:38,650 --> 00:04:42,620 and why we clearly recognized at that point in time and the concerns in Europe 87 00:04:42,620 --> 00:04:46,240 we felt that Europe was in better shape than most people given credit Ford 88 00:04:46,240 --> 00:04:49,380 so we saw some headwinds as it relates to search batters 89 00:04:49,380 --> 00:04:52,960 what we control in that area we think we've organize ourselves very well 90 00:04:52,960 --> 00:04:57,289 to overtime I earn the leadership in that category and returned a reasonable 91 00:04:57,289 --> 00:04:58,020 growth knows 92 00:04:58,020 --> 00:05:01,880 areas quite a jump on your team's has been missin Cisco's more open than ever 93 00:05:01,880 --> 00:05:04,330 Cisco's want to work with a lot of cum is we didn't have 94 00:05:04,330 --> 00:05:07,490 Jayshree you all from arrest 001 recently 95 00:05:07,490 --> 00:05:11,599 who felt that she I'm %uh didn't think you play fair did she use the chart 96 00:05:11,599 --> 00:05:13,259 blind-sided disappointed 97 00:05:13,259 --> 00:05:16,690 when you filed a lawsuit on your total gentleman it did surprise me 98 00:05:16,690 --> 00:05:20,650 that she took the action following a lawsuit because it you are kinda 99 00:05:20,650 --> 00:05:24,840 pick up the phone guy in trying to solve for x mom 100 00:05:24,840 --> 00:05:29,340 would you know if you watch I we are a company that is not like he just in our 101 00:05:29,340 --> 00:05:29,930 nature 102 00:05:29,930 --> 00:05:34,659 I using the example you did wear kurti already winning in the market as United 103 00:05:34,659 --> 00:05:35,780 skates last quarter 104 00:05:35,780 --> 00:05:40,000 in terms of our growth rate is high and switching point away from start-ups 105 00:05:40,000 --> 00:05:43,400 in that market with dramatically higher growth rates and they reach even even 106 00:05:43,400 --> 00:05:45,930 they were much larger company with better gross margins 107 00:05:45,930 --> 00:05:49,870 about once every decade we can have to send a message the market 108 00:05:49,870 --> 00:05:54,770 that we spend six billion dollars a year on our intellectual property in our R&D 109 00:05:54,770 --> 00:05:59,159 and that we will protect that and that you have to say that periodically when 110 00:05:59,159 --> 00:06:02,240 somebody does cross the boundaries on that and you have to send a message both 111 00:06:02,240 --> 00:06:06,229 to dam and others in the market dad it is all about innovation but innovation 112 00:06:06,229 --> 00:06:07,229 is not copy in 113 00:06:07,229 --> 00:06:10,800 I don't take anything personal on this I just about every decade we have to 114 00:06:10,800 --> 00:06:11,820 remind our peers 115 00:06:11,820 --> 00:06:16,349 that we do invest and hi a very much our future innovation and we hope people 116 00:06:16,349 --> 00:06:20,590 accountable not copy that fair chernobyl one thing that has changed is that you 117 00:06:20,590 --> 00:06:21,110 had 118 00:06:21,110 --> 00:06:24,759 perhaps one a great see a possible time prank call running now he is 119 00:06:24,759 --> 00:06:28,590 retired as of last week are you gotta Kramer and they're telling 120 00:06:28,590 --> 00:06:31,330 member what will be different because circuses calls are the most 121 00:06:31,330 --> 00:06:32,669 well-orchestrated 122 00:06:32,670 --> 00:06:36,940 voice had a great 2010 Frank what are we gonna be seen differently on the next 123 00:06:36,940 --> 00:06:38,070 conference call with Cisco 124 00:06:38,070 --> 00:06:41,099 where the exciting thing GM 125 00:06:41,100 --> 00:06:45,530 is that Kelly would be the six EF though that I work with and as you said we've 126 00:06:45,530 --> 00:06:46,810 had six side 127 00:06:46,810 --> 00:06:51,160 generations I have CF those who play with very high integrity in very 128 00:06:51,160 --> 00:06:51,910 effectiveness 129 00:06:51,910 --> 00:06:55,270 I've never had 1 I've never mention gym before by you 130 00:06:55,270 --> 00:06:58,630 in terms that top five CF those that you view 131 00:06:58,630 --> 00:07:01,790 I'd like to see Kelly mentioned within two to three years 132 00:07:01,790 --> 00:07:05,590 earning that confidence from you what you see Kelly would do 133 00:07:05,590 --> 00:07:09,740 will be taking our company to the next generation our ability to become more 134 00:07:09,740 --> 00:07:11,740 horse on a rampant Asian 135 00:07:11,740 --> 00:07:16,430 tying together our 18 different product areas our server so go to market 136 00:07:16,430 --> 00:07:20,930 in a way that produces results for our shareholders so I think just like Evelyn 137 00:07:20,930 --> 00:07:23,110 evolution we done with our senior management 138 00:07:23,110 --> 00:07:26,600 Kelly would take it up one generation I think should do a great job in 139 00:07:26,600 --> 00:07:30,830 engine mad at the world to have a side wager for AAA pass a beer 140 00:07:30,830 --> 00:07:34,050 that within three or four years she's what are your top five CF house 141 00:07:34,050 --> 00:07:38,110 fair bet thank you so much john chambers the chairman/ceo Cisco Systems good to 142 00:07:38,110 --> 00:07:39,220 see you as always john 143 00:07:39,220 --> 00:07:42,350 Jim it's a pleasure thank you I 144 00:07:42,350 --> 00:07:46,460 this is the kinda stop with good dividend with great growth coming 145 00:07:46,460 --> 00:07:50,220 picture 12 all way through this kinda self-made months back

Roth Or Traditional Account?

1 00:00:08,810 --> 00:00:11,830 no matter how good you are picking stocks you don't know all the Byzantine 2 00:00:11,830 --> 00:00:14,050 rules or kind of accounts to keep your money 3 00:00:14,050 --> 00:00:17,810 or at a manager personal finances well you get the most bang for your 4 00:00:17,810 --> 00:00:21,590 block when it comes to major lifetime expenses 5 00:00:21,590 --> 00:00:27,700 then you could miss you have some terrific gains cost yourself a fortune 6 00:00:27,700 --> 00:00:29,239 in all sorts a hidden fees 7 00:00:29,239 --> 00:00:32,540 that's why every week I take you through my playbook in a segment that is 8 00:00:32,540 --> 00:00:35,730 entirely devoted to teach you how to handle your personal finances 9 00:00:35,730 --> 00:00:39,480 what some basic investing principles in order to get a better sense of what 10 00:00:39,480 --> 00:00:40,920 matters to you I want you to send 11 00:00:40,920 --> 00:00:44,570 all of your questions to Twitter it Jim Cramer with the hashtag 12 00:00:44,570 --> 00:00:48,359 get a plan so I wasn't very good on Twitter today really GM to this market 13 00:00:48,359 --> 00:00:51,859 but I will do my best to get back to you Romy we're at it 14 00:00:51,859 --> 00:00:56,010 it's always worth checking are your money dot CBC dot com 15 00:00:56,010 --> 00:00:59,809 Patrick financial by 6 I think has got to stop this is Pauline is picking 16 00:00:59,809 --> 00:01:03,480 stocks along gala day like today it's not so bad of course you like to know 17 00:01:03,480 --> 00:01:06,870 really could help you build up more wealth than a couple paid stock picks 18 00:01:06,870 --> 00:01:07,180 can 19 00:01:07,180 --> 00:01:11,290 in the simple truth is that I don't want you leaving that money on the table 20 00:01:11,290 --> 00:01:14,610 just because nobody could be botherd to explain say 21 00:01:14,610 --> 00:01:18,230 the finer points retirement investing 22 00:01:18,230 --> 00:01:22,260 vehicles with that in mind here's a question from Mitch 23 00:01:22,260 --> 00:01:28,780 who s and I quote traditional or Wat for 1k for grad starting full time job in 24 00:01:28,780 --> 00:01:30,480 twenty-eight percent tax bracket 25 00:01:30,480 --> 00:01:33,590 wary a potential tax climate when i'm sixty-five 26 00:01:33,590 --> 00:01:36,590 perhaps could use Twitter space 27 00:01:36,590 --> 00:01:39,910 now I don't talk endlessly about the benefits of using individual retirement 28 00:01:39,910 --> 00:01:41,240 account or IRA for short 29 00:01:41,240 --> 00:01:45,500 a 401 k plan a Vesper time I them both and I don't beat a dead horse here 30 00:01:45,500 --> 00:01:49,800 but we haven't really gotten the distinction between a row of the cap 31 00:01:49,800 --> 00:01:53,520 and a regular one and this is something I get on to questions about 32 00:01:53,520 --> 00:01:57,949 should I put my money in a walking cast were should I put one in to rate a cat 33 00:01:57,950 --> 00:01:59,270 and is one of the more 34 00:01:59,270 --> 00:02:04,110 home Mitch just about what 4.1kb only some employers choose to offer these two 35 00:02:04,110 --> 00:02:04,830 the workers 36 00:02:04,830 --> 00:02:08,090 so to set the stage ur let me give you some background 37 00:02:08,090 --> 00:02:11,620 on the beautiful tax paper vehicle known as a walk iraq 38 00:02:11,620 --> 00:02:16,040 which anyone can contribute to as long as they make less than 222,000 39 00:02:16,040 --> 00:02:19,760 your I think that aside from the earned income tax credit 40 00:02:19,760 --> 00:02:21,500 the water are a maybe this 41 00:02:21,500 --> 00:02:24,770 single greatest thing our government has gone 42 00:02:24,770 --> 00:02:28,210 for more income families since the end of the war on poverty where 43 00:02:28,210 --> 00:02:34,490 I'll ask some in poverty one I told you about how a regular IRA let you take 44 00:02:34,490 --> 00:02:35,370 pre-tax income 45 00:02:35,370 --> 00:02:38,470 invested and then your gains can compound year to year 46 00:02:38,470 --> 00:02:42,459 decade after decade totally tax-free until you decide to withdraw 47 00:02:42,459 --> 00:02:46,740 start withdrawing money when you've retired but a Roth IRA works differently 48 00:02:46,740 --> 00:02:51,670 with the wat you make contributions with all after-tax income 49 00:02:51,670 --> 00:02:54,989 so in other words unlike a regular a putting money 50 00:02:54,989 --> 00:02:58,430 into a wall of Walt decrease want 51 00:02:58,430 --> 00:03:01,890 decrease your tax bill on the other no what your money is there what are you 52 00:03:01,890 --> 00:03:03,660 will never pay taxes on it again 53 00:03:03,660 --> 00:03:06,900 as long as you pat your cash remains in a camp 54 00:03:06,900 --> 00:03:11,030 you know pay capital gains taxes not paid in taxes and when you withdraw 55 00:03:11,030 --> 00:03:15,610 which you can do without Pedley after the aged 59 half mean closing in 56 00:03:15,610 --> 00:03:19,489 you don't pay any income tax on your withdrawals in other words with %uh what 57 00:03:19,489 --> 00:03:22,239 you pay taxes now so you don't have to pay any income tax 58 00:03:22,239 --> 00:03:26,239 thirty or forty years from now when you retire there's one more positive point 59 00:03:26,239 --> 00:03:26,920 about a Roth 60 00:03:26,920 --> 00:03:30,320 after five years you can withdraw the money you've invested not you gaze 61 00:03:30,320 --> 00:03:33,870 just he met you contributed and you okay with that nasty 10 percent penalty 62 00:03:33,870 --> 00:03:36,980 which is what happens when you try to withdraw money from a regular IRA 63 00:03:36,980 --> 00:03:41,010 before you hit that magic each up 59 have and when you're close you want 64 00:03:41,010 --> 00:03:44,090 cause you know that don't have it doesn't feel very magical 65 00:03:44,090 --> 00:03:47,980 so music what is fundamentally different from a regular are 66 00:03:47,980 --> 00:03:51,320 with the radio when you don't pay any taxes and contributions now and your 67 00:03:51,320 --> 00:03:53,250 games don't get tax with the kneecap 68 00:03:53,250 --> 00:03:58,019 but once you start withdrawing money every penny you take out as taxes 69 00:03:58,019 --> 00:04:01,739 ordinary income which means that when you're trying to decide between what I 70 00:04:01,739 --> 00:04:04,670 ray or 41 K and a regular IRA or 401 K 71 00:04:04,670 --> 00:04:08,100 here basically deciding whether it makes more sense to pay income tax now with 72 00:04:08,100 --> 00:04:08,610 the roth 73 00:04:08,610 --> 00:04:12,769 or two week pay income tax once you've retired with the regular camp 74 00:04:12,769 --> 00:04:16,570 in other words you have to try to figure out whether you'll be in a higher tax 75 00:04:16,570 --> 00:04:17,238 bracket 76 00:04:17,239 --> 00:04:21,160 after you've retired or lower one office is a complicated question really has a 77 00:04:21,160 --> 00:04:24,060 lot to do with specific severe situation your career 78 00:04:24,060 --> 00:04:27,760 it should be how old you are but my quick quote from for anyone is marginal 79 00:04:27,760 --> 00:04:28,560 tax rate is 80 00:04:28,560 --> 00:04:32,849 25 percent ross 25 percent which is most in america 81 00:04:32,849 --> 00:04:34,409 I think you got the wrong 82 00:04:34,410 --> 00:04:38,230 better take the hit up front nanowire what I rate a compound tax-free 83 00:04:38,230 --> 00:04:39,110 threshold like 84 00:04:39,110 --> 00:04:42,490 remember for those of you who don't have the time to pick your own diverse my 85 00:04:42,490 --> 00:04:44,100 portfolio five to ten stocks 86 00:04:44,100 --> 00:04:47,300 the smartest thing to do is just park your retirement money in a low-cost 87 00:04:47,300 --> 00:04:48,070 index fund 88 00:04:48,070 --> 00:04:52,849 that mirrors the S&P 500 as you get older you can add some bonds but really 89 00:04:52,850 --> 00:04:54,340 into your actually retire 90 00:04:54,340 --> 00:04:57,870 stock should make up the majority view retirement investments I know I said 91 00:04:57,870 --> 00:05:00,760 this before but I'll keep repeating until they take be off the air because 92 00:05:00,760 --> 00:05:02,280 it's so so necessary 93 00:05:02,280 --> 00:05:06,110 it's so contrary to the conventional wisdom all my books say it if you don't 94 00:05:06,110 --> 00:05:08,270 understand I got much longer explanation 95 00:05:08,270 --> 00:05:11,320 back to Mitch's question the idea for Wat for 1k 96 00:05:11,320 --> 00:05:15,070 this works just like a what I read meaning you make contributions with 97 00:05:15,070 --> 00:05:18,909 after-tax income and then you never pay taxes on that money can accept because 98 00:05:18,910 --> 00:05:24,050 it's a 401 k plan is much higher contribution 17,500 per year versus 5500 99 00:05:24,050 --> 00:05:24,720 for iraq 100 00:05:24,720 --> 00:05:28,500 and there's one other big difference you can take advantage a Roth IRA if you 101 00:05:28,500 --> 00:05:29,250 make more than 102 00:05:29,250 --> 00:05:33,400 one earned twenty thousand a year single or 100 said 9,000 you're married filing 103 00:05:33,400 --> 00:05:33,920 jointly 104 00:05:33,920 --> 00:05:37,050 are what following kato has doesn't have any kind of income cap 105 00:05:37,050 --> 00:05:40,370 no matter how much you make you take the banja wanted these as long as your 106 00:05:40,370 --> 00:05:42,220 employer decides to give you the option 107 00:05:42,220 --> 00:05:45,770 now mitch is marginal tax for twenty percent that's the point where I'd say 108 00:05:45,770 --> 00:05:48,280 go with a regular IRA in a regular for 1k 109 00:05:48,280 --> 00:05:51,750 because they let you make contributions with pre-tax dollars so the higher 110 00:05:51,750 --> 00:05:55,930 your current tax rate is the more Baguio fine did not what I IRA or 401 K 111 00:05:55,930 --> 00:05:59,380 but he also says he's worried about where tax rates will be when he retires 112 00:05:59,380 --> 00:06:00,570 say forty years from now 113 00:06:00,570 --> 00:06:03,890 alternate if you believe the taxes are headed 114 00:06:03,890 --> 00:06:07,159 inexorably higher over the course of your lifetime 115 00:06:07,160 --> 00:06:10,950 than a Roth 401 K were you pay your taxes now and pay nothing in future is 116 00:06:10,950 --> 00:06:11,830 the way to go 117 00:06:11,830 --> 00:06:14,740 even if you're making a lot of money in the present I think the person the 118 00:06:14,740 --> 00:06:15,610 police mistaken 119 00:06:15,610 --> 00:06:19,000 for those view young people who only became politically conscious under the 120 00:06:19,000 --> 00:06:20,050 Obama administration 121 00:06:20,050 --> 00:06:23,410 it may seem like there's no way to stop tight higher taxes history says 122 00:06:23,410 --> 00:06:23,930 different 123 00:06:23,930 --> 00:06:27,470 and I believe we can close the deficit without substantially raising taxes 124 00:06:27,470 --> 00:06:31,290 my view not political that back at the end the day though 125 00:06:31,290 --> 00:06:34,570 this is both beyond our control and beyond our ability to predict so here's 126 00:06:34,570 --> 00:06:35,270 the bottom line: 127 00:06:35,270 --> 00:06:38,280 the lower your present income than the lower your taxes 128 00:06:38,280 --> 00:06:43,050 a RAW file for 1k or what IRA what you pay those low tax rates 129 00:06:43,050 --> 00:06:44,150 and net 130 00:06:44,150 --> 00:06:47,810 now net and never worry about taxes again for your retirement money 131 00:06:47,810 --> 00:06:51,250 so the less you make the more likely it is that the waters for you 132 00:06:51,250 --> 00:06:54,949 it's that simple and when you're saving for retirement don't worry about what 133 00:06:54,949 --> 00:06:56,509 bill catastrophically wrong 134 00:06:56,509 --> 00:06:59,860 thirty or forty years in the future just worry about making the best choices 135 00:06:59,860 --> 00:07:01,030 right now 136 00:07:01,030 --> 00:07:02,800 don't move like Rams

Jim Cramer Assesses Economy at Year’s End

1 00:00:00,020 --> 00:00:03,470 we're kicking off 2015 with a look at the year in politics health and the 2 00:00:03,470 --> 00:00:04,100 economy 3 00:00:04,100 --> 00:00:08,309 so what do we get started with Jim Cramer host at Mad Money on CNBC jam 4 00:00:08,309 --> 00:00:09,880 Happy New Year buddy see you 5 00:00:09,880 --> 00:00:13,969 before we look ahead let's look at 2014 2014 6 00:00:13,969 --> 00:00:17,039 I think the economy it sometimes get overshadowed 7 00:00:17,039 --> 00:00:20,609 by other stories in the news a scale of one to 10 how did we do 8 00:00:20,609 --> 00:00:23,740 this turned out to be bad H I would say only 9 00:00:23,740 --> 00:00:27,160 overseas and are companies that sell their had any weakness 10 00:00:27,160 --> 00:00:31,250 this was a turnaround year that we just finished it was it create your Mac 11 00:00:31,250 --> 00:00:34,270 at the ended the year we saw falling oil prices 12 00:00:34,270 --> 00:00:37,829 gas prices followed and fellow i've seen predictions already 13 00:00:37,829 --> 00:00:40,989 that we could continue to see low gas prices 14 00:00:40,989 --> 00:00:44,610 throughout 2015 what do you think this is a year 15 00:00:44,610 --> 00:00:48,989 where the consumer is going to be flush they are going to be a plus because 16 00:00:48,989 --> 00:00:52,949 we could see two dollar ghastly all over the country public phone bills coming 17 00:00:52,949 --> 00:00:53,699 down to 18 00:00:53,699 --> 00:00:57,420 that's another unexpected benefit we get tax cuts galore from 19 00:00:57,420 --> 00:01:01,030 telephone companies from oil company so are we going to see the year we talk 20 00:01:01,030 --> 00:01:02,050 about this a lot 21 00:01:02,050 --> 00:01:05,689 we have in the past will this be the year that american see 22 00:01:05,689 --> 00:01:10,119 a real raise yet to come to their ability to have a good lifestyle 23 00:01:10,119 --> 00:01:13,830 yes because this is here with the companies have so much profit that it 24 00:01:13,830 --> 00:01:17,580 would be embarrassing if they didn't return it's a little embarrassing in the 25 00:01:17,580 --> 00:01:19,170 past we've seen that happen 26 00:01:19,170 --> 00:01:22,920 to CEOs are overpaid I'm not gonna change my mind about that but I do think 27 00:01:22,920 --> 00:01:24,360 that they'll be such great wealth 28 00:01:24,360 --> 00:01:27,409 in such success for so many copies in 2015 the 29 00:01:27,409 --> 00:01:30,900 don't be surprised to get a regime it didn't ask for I let's talk about jobs 30 00:01:30,900 --> 00:01:33,070 at we don't have December numbers in yet 31 00:01:33,070 --> 00:01:38,610 right but it appears that that 2014 will be about the best year for job creation 32 00:01:38,610 --> 00:01:42,700 in a decade or a decade and a half about three million jobs created 33 00:01:42,700 --> 00:01:47,229 cannot extend into 2015 yes because there are a whole series 34 00:01:47,229 --> 00:01:50,280 whole part economy they're about to kick in this year 35 00:01:50,280 --> 00:01:53,720 housing we were still a recessionary level 2014 36 00:01:53,720 --> 00:01:57,929 big construction projects that those are going to help we are seeing a 37 00:01:57,930 --> 00:02:01,549 returned our power as an export export nation 38 00:02:01,549 --> 00:02:05,079 because we are building so many things are the sole engines from 39 00:02:05,079 --> 00:02:08,649 both are so so far I've never felt better about myself than I have in this 40 00:02:08,649 --> 00:02:11,930 segment right now it's right let's be realistic the let's talk about some 41 00:02:11,930 --> 00:02:12,950 possible land 42 00:02:12,950 --> 00:02:16,089 mines that we have to look out for in 2050 43 00:02:16,090 --> 00:02:19,810 by it's not gonna be in our country we have to worry about China's slowing down 44 00:02:19,810 --> 00:02:20,370 again 45 00:02:20,370 --> 00:02:23,870 we asked about really this europe your purse got to get it together 46 00:02:23,870 --> 00:02:27,580 I don't know what they can Japan to China economy falling off the cliff 47 00:02:27,580 --> 00:02:31,620 this matters because we've come a great export power returned the fire stuff and 48 00:02:31,620 --> 00:02:35,000 you talk about china recently it was determined that China is now the world's 49 00:02:35,000 --> 00:02:36,739 largest economy 50 00:02:36,739 --> 00:02:40,400 now I think a lot of people the United States are on easy about that is it 51 00:02:40,400 --> 00:02:41,739 anything more than a label 52 00:02:41,739 --> 00:02:45,209 no it really is an hour gotta tell you if they don't cleaner air up 53 00:02:45,209 --> 00:02:48,530 they don't clean the water up they're going to become in the economy that we 54 00:02:48,530 --> 00:02:49,970 won't have to worry about it all 55 00:02:49,970 --> 00:02:53,799 they have to spend a fortune just to make it seem we can see each other this 56 00:02:53,799 --> 00:02:55,630 far from each other in a major city 57 00:02:55,630 --> 00:03:00,170 I that was the year that was in the year ahead in the economy courtesy of Jim 58 00:03:00,170 --> 00:03:02,290 Cramer gym as always thanks very much here