trading that coin purse. tonight i'm checking out the lifestyles of the rich and famous to find luxury brands that could be ready to run? is coach ready to go from zero to hero? don't move buzz "mad money" is coming up next. i know you're dying to find out who won the street fight, according to our twitterers out there. it was a tie. >> oh! >> so there might have to be a rematch down the line. meantime, it is time for the final trade. >> amazon call spreads. >> bkers? >> if you don't believe the samsung galaxy is going to do well, you can short it by ewy. >> grasso? >> cog, capital oil and gas. some of the best gas exposure and assets in the u.s. >> karen? >> the mid kaput spreads to hedge portfolio.

>> happy 14th birthday, tim adam my. >> happy birthday, amy lee. my sister. i'm melissa lee, thank you for watching. "mad money" starts right now. i'm jim cramer, welcome to my world. >> you need to gelt in the game. >> stearns is going to go out of business and he's nuts, they're nuts, they know nothing. >> i always like to say there is a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money" to cramerica. other people want to make friends, i'm trying to save you a little money. my job, not just to entertain but to educate. call 1-800-743-cnbc. after the tenth straight up day in the market, seemingly endless winning streak, the day where the dow gained 84 points, s & p, .6%, nasdaq, .43%. we need to take about something

that a lot of people are taking issue, the fed's role in the stock market rally. we are going to make it clear, interesting and action oriented. here is what we'll do. no denying that the fed is creating an environment where companies can do well and stocks can do higher. we know the fed has allowed individuals and corporations to refinance and a gigantic part of what made it possible for people to buy stocks and buy homes and companies to buy stock and pay bigger dividends, keeping money easy, the fed has encouraged the buying of equities, in part as bond market substitutes, and dividend paying stocks yield more than treasuries, and the tax treatment remains superior and far more bountiful than bond market, interest payments, cow upons taxed at a much higher income rate and created a very helpful investment climate. no matter what critics say, unless unemployment makes a

quantum leap to 6.5%, yes, ben bernanke is the father of the bull market. that is for certain. and the fed has been incredibly important impetus behind the giant move. now, there are tons of pessimists out there who believe that because the fed created this environment, the fed is doomed to destroy it. the moment they take away the punch bowl and start tightening, they believe -- i think that's wrong. and more important, i think you are getting ahead of yourself if that's what are you worried about. and people have been worried for a year now. just because bernanke made the bull market, doesn't mean it's a pitiful helpful orphan, the bull can stand on its own four legs, and even if it wants on its own now, i expect bernanke won't tighten until we are at a place we will be able to stand and it won't crush the stack market. the crucial point, that's not where we are right now, even as you hear it being asked and

talked about endlessly. not where we are right now. the last five years i have told you over and over again, you have to get out of bonds and into stocks for as long as this period lasts. in other words, as long as the fed is being benign and said let's there be profits. i think you should make as much money as possible. while it lasts, i think you would be nuts not to try and benefit from it. i'm a huge believer you won't necessarily catch the top of any market. but that, if you are -- if you decide to be in and you decide to be disciplined you can get out with some very big winnings after it starts going down. if you sit things out because one day at some undefined point down the road, are you committing the ultimate sin of passing up what might be a once in a lifetime opportunity to make money. plus, many of the companies are doing well today are not expensive on earnings basis,

even unaided by the lakt of serious competition. to me, the risks of a prec precipitous sell-off are much lower if or when it does occur and makes it more important than this rally not be blindly dismissed by bearish statisticians who are saying that danger links around every corner. high quality, high growth companies that sell 13 times earnings or less, financials, cut tech on this, and the risk that we could sell off if the fed tightens overnight isn't as miserably frightening as they sold off like the '87 crash. the underlying companies regarding much more slowly then, sure. yeah, i know, i've got to tell you if we moved up to 7% to 10% higher from here, that's a different story. up 7% to 10% higher, i would say i don't like the odds.

i think there is a lot of selling to do. here is the rub. if we were to rally 7% to 10% here and the fed tightened quickly, we may not even go down 7% when it happens. stocks will do better than bonds. the real enemy in that scenario, and i say the only people who don't need to be in stocks are the people who don't invest under any circumstances, against their charter or they don't believe in it, or ones that were so rich, they don't need to risk anything and tell you not to. they only need to get rich once. and these are the most vociferous critics. can they give any credit to corporate america? they have played in big hand in the rally too. we have seen the social contract in terms of huge buybacks and dividend boosts, bernanke provided the opportunity but didn't provide the smart, the execution, just created a back drop that allows companies with big businesses to be veil. you never would have bothered to

buy stocks if you believed from the get go this had to end and end in tears. would you have avoided stocks the whole way which is what these people -- i mean, that's what they accomplish. you -- the whole way or from any level, you heard the jeremiahs how the fed could pull the rug out at any minute. i'm angry this morning. getting angry about this. and i'm steamed, you know why? i would like just once, i would like to hear the fed fare fearing bears to say, look, i acknowledge my view would have kept out of stocks for the last 1,000, 2,000, 3,000, 4,000 or 5,000 dow points and now i doubt even if bernanke leaves right now that we will give up those points, but die think it should be on the radar screen at some point. would that be too much to ask? too much for someone to admit? the real irony is if the economy

does get better, companies will do better and stocks can do better. but bonds, they will almost always do worse. always. i can't think of a single situation where you could own bonds right now, regardless of your age or risk profile. owning a dangerous long-term bond, with that budget deficit we have, come on. i have -- you buy that stuff at 130 versus 100, and first okay, johnson & johnson, common stock with good dividend, and it makes no sense to me, bernanke bashers tell people to sell their bonds. get everyone to sell long-term bond funds, but unless they wise up, these bears will be the enemy of your personal wealth. they have kept you from taking that opportunity and they have no humility and no remorse. nothing. no gain at all. they simply don't think this rally counts. they don't think it matters. and that you couldn't have made

any money, and they think that these gains are ill gotten. here is my bottom line. ill gotten gains are gains that are stolen exappropriated or booted. these stock markets gains are totally legitimate, accepted at the bank and at fine retail stores everywhere. so all we acknowledge this period of bountiful profits will compton an end, not enough of a reason to keep you away from the market as long as it lasts. when things go gadd bad, believe me, stocks will seem defensive, and the bonds, as long as things are good, we'll let you say stocks have a lot more upside. that's right, traditionally defensive, the bond funds could be lethal what is risky, high-quality stocks with good dividends after this run make the most sense to own. margaret in michigan. margaret. >> good day, mr. cramer. thank you so much for your help to the listeners.

>> thank you. >> caller: booyah to you and a boo-hoo from me. >> what's the matter? >> caller: i've got cliff's natural resources. i bought last year in the mid 40s and it's way down. i am a long-term investor and if you say hang on, i will. >> i got you. look, i was talking to this with two other investment professionals. look, they raised capital, the balance sheet is better. you need china goes up for a couple of days and the rally will stock 15% and we'll relook at it, margaret, and then make the move to go. not now, i don't want to do it, and the bears have no remorse whatsoever about keeping you you out of this rally. i got to keep you in, get you out of those bond funds, that's what's going to crush you, the bonds, not the stocks. "mad money" will be right back. coming up, housing high? investors searching for more

ways to play the red-hot housing market and tonight, cramer has an open house. time for you to move in to shares of mortgage insurer r radiant group? we conduct an inspection with the ceo next. later, in the bag? cramer tuning in to the life-styles of the rich and famous to find which luxury names could be boo buoyed by their bucks. that coach purse may cost a pretty penny, but could an investment in the brand pay you back with interest? jim tries the story on for size. plus, the suite life? netsuite helps companies tie together their operations online, using cloud computing infrastructure. could its stock lead your portfolio higher? or will competitors roll in and steal its thunders. don't miss cramer's exclusive with its ceo. all coming up on "mad money." don't miss a second of "mad

money," follow @jimcramer, #madtweets. madmoney apt cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. acceler-rental.

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the the housing market, roaring back and taking the mortgage insurance industry with it. the mortgage insurance names were some of the most despised stocks when housing was imploded and stayed hou eed hated when h was flat lining. now that housing is getting stronger, morning insurance stocks are rocketing higher. three weeks ago, i recommended radiant. number one writer of private mortgage insurance as a way to speculate on housing. since then, company has become a lot less speculative and more solid. radian announced a gigantic secondary offer. wasn't that big when they announced it. people wanted in so badly, it da

dramatically improved the balance sheet. the stock went on to close at $8.45. that shows you demand. fast forward today, radian, now $10.34, up 31% where i got behind it less than a month ago. writing tons of profitable new policies, and the end of the year, posted 2009 business will represent 75% of exposure. all the good stuff. the fha, radian's biggest competition, has repeatedly raised prices says and plan on reducing market share to the old average of 8% to 10%. the fha giving the business away. let's check in approximate with s.a. ibrahim, the ceo of radian group to find out more about his company and where it's headed. welcome to "mad money." have a seat. >> good to be here. >> first, a little counterintuitive thing, most when people see a big secondary,

big offering, think it's bad. why did people realize and when you told them it was good that you raised money? didn't hurt the stock? why was it not surprising the stock went up? >> funny you commented on that before. the most interesting thing was when we were in the middle of raising capital, the meeting with the very large investor and said he had seen thousands of offerings and surprised that on the day they have to be announced, the stock actually went up. but the reason for that is people are betting on housing coming back, all the indicators positive in housing, and some of the big names that were behind taking positions when housing imploded are now taking positions on housing coming back. >> right. and i think what's important for people to recognize is that this business had a quick rebirth. a lot of people feel that you are just saddled with everything from 2005 to 2008. this business rolls off. >> yes, it does. velocity is fast, particularly when the mortgage market is active. and initially down turn, the

mortgage market was not active, with the lower rates we saw, a lot of refi business came in, and the housing recovery, we are starting to see purchase business come back. >> at the same time, fha been trying to hog the market. and i listened to the guy who runs it. i don't think they want to compete with you anymore? >> the fha, if it's aligned with us, as is the rest of washington and saying that private capital should play a bigger role and government capital can stale back, the gses, we in the market, we stand to benefit from that happening. >> you are the huge winner here. there are some people, naysayers, barron's said you were a house of cards. like at this way. a competitor just settled a claim, and a lot of people thought they would pay tens of thousands of dollars per claims. settled $5,000 per claim versus $70,000 that country wide was asserting. i have to believe you won't have

to play anywhere near the naysayers say you have to pay. >> jim, i can't comment on any negotiations and discussions we are having, suffice it to say that we all look at the same factors and all are trying to get legacy behind us, and in our case, we have also focused very heavily on writing new business to the point where the new business that we have written since 2009, very profitable, high quality business, will shortly make up more than half of our book. >> okay. by the end of the year, more than that, but let me just -- let me go back on this a little bit. how about this? you look at what competitor ended up having to pay, and you look at what you're reserving it would be substantially better if you ended up paying what your competitor did than what some people think you may end up paying. would you be happy if what they thought you could get? >> as much as i would like to answer the question, it's apples and oranges because of types of

claims it would be very positive. >> people think are you underreserved. in light of common practice happening away you from, you do not seem like are you underreserved at all? >> i don't believe some of in fact, i'm required to reserve the right way and, in fact, there are two people who look over everything we is he serve. an independent third party that is an independent accident warriwar i ial firm to come and write on top of us and also outside audit firm, they independently actuarily calculate our reserves. >> the refinance business has been good. instead we build 1 million homes, the stretch. the number i'm using on "mad money," 1.2 million homes. what would that mean for your business if you kept market share consistent for additional homes. >> much as we like the refinance business, we love the purchase business. because the purchase borrowers have a higher propensity to get mortgage insurance, particularly if you look at the demographics,

first time home buyers have been sitting on the sideline. first time home buyers are concerned, particularly if they think home prices are faug. and typically they don't have enough down payment so they acquire mortgage insurance. >> that's exactly where you fit in. number one player in the business with the government trying to get out. because the government is under pressure from congress. and radian rdm will be the winner. s.a. ibrahim, we like it in the high sevens, even more at ten. why? more statutory capital. rdm rdn is going higher. after the break, try to make you more money. coming up, in the bag? cramer tuning in to the life-styles of the rich and famous to find out which luxury names could be buoyed by their bucks. the coach purse may cost a pretty penny, but could an

investment in the brand pay you back with interest? jim tries the story on for size. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪

in this in this seemingly unbeatable market, that keeps zooming higher, we're constantly bargain hunting for stocks that represent real value. stocks you can buy right now, right here, without feeling like a total chump when you are doing it. tonight, i want to talk to you about coach, coh.

the high-end handbag company that says isn't that much high end anymore. we added it to the great gatsby index. we use it as a barometer to track hout rich are spending. i got to tell you, coach, it has been a real dog lately. but i think we would be approaching every dog has its day moments. the stock has been absolutely hammered over the last year. and back on june 15th, i told you would rather own michael kors as expensive as it was than coach. since then, kors is up 54%. while coach has declined another 17%. i don't know. maybe better to be lucky than good. coach drifted 24 points off its highs, and several disappointing quarters in a row, including the

most recent in late january, same-store sales declined 2%. i remember when the company used to grow high single digits was disappointi disappointing. north america, getting eaten alive by competitors kors and kate spade. what we have seen in the long decline, taken coach from $79 to slightly below 50 is a stock that made that vicious, difficult ugly transition from beautiful growth stock to hideous value play. coach sells 12 times earnings, considerably cheaper than the average stock. and they are a higher yielding stock and what we really have seen in retail, when companies stumble, they ultimately bottom at a certain point and start to rebound. think about gap, that tumbled for years, gap bounced along the bottom and the company turned

things around and rocketed higher. how about jones group? got crushed in april 2010 and then bottomed, and stock got too darn cheap. ann taylor, flat lined most of 2011, had a big pop in august 2012, revamped its brand. the stocks do stop going down, and generally they start to go higher. coach, i sympathy bottoming out here. more important, we have been hearing rumors that coach might take itself private or be acquired by a foreign luxuks apparel brend, like louis vuitton. they are all doing pretty well and can do some buying. and that obviously, a takeover by lvmh would take the stock higher. we have seen other go higher. timberland, acquired by vf corp.

43% premium if coach took over for the same valuation that vf corp paid for timberland. coach would be 60% higher than it is now. other comparables. j. crew taken private. mickey drexler, much better than coach, but taken private in 2010. and warnwarner, those had lower prices than timberland. you use a valuation for a coach takeout like that, and you still get a 25% premium to where coach is right now. i like that. plus, not like coach is sitting there getting shot at and doing nothing about the dilemma, saying i'm sorry. sorry, that we're not improving. the company has been taking action. we learned a month -- a month earlier that coach's long-time ceo lou frankfurt stepping down at the beginning of the year and

stay on as chairman and be placed by victor luis. and he has led the company's expansion to asia, a huge growth driver for the stock. lou did a pretty good job. it used to be a little company. he is one of the best execs in the business. after a year of lousy performance, you know what? the company needs to make a change, if only they show the market they are trying to turn over a new leaf. there is the sense that the coach brand got stodgy, logo, way too pervasive. outlet stores too large part of the business. and 30% of the sales came from outlets and when that happened, coach lost some of its aspirational luxury brand halo. and a lot of people said, let's go to canal street in lower new york city and buy a fake, if the real one lost that much luster. really, our undercover team just this morning bought these fakes,

on canal street. today. these are the real deal. and can you actually tell the difference? well, i got to tell you before i -- i'm jumping to conclusions. i've called these fakes, but the salespeople on the street, they did tell us that these were real, so it's entirely possible that in the time since we started the show, that maybe they developed a new curbside set of distributors. combat the stodginess, and they hope to appeal to the higher end segment of the market and a new bag line. higher margins than the one they just retired. they lost market shares, coach focused heavily on handbag business. competitors position themselves as life-style brands and sell merchandise across multiple apparel and accessories. coach was never just a handbag

store. but handbags take up most real estate, except for the suchside store we saw. management shaking things up to sell multiple different categories. think about it. i know i'm a man. stipulating and therefore, don't necessarily understand these things, but it's easy to sell people more merchandise if you offer more types of products. getting someone to buy a half dozen purses a tough sell, a purse, pair of shoes, watch, belt, hat, that's so much easier. coach is rolling out new foot wear product line and offering more shoes, sandals, sneakers, smoking shoes, rain shoes, boats, pumps, flats, flops. and coach has been selling foot wear since the late '90s and number one foot wear brand in macy's. that's a good stock. expanding the business is the smart move. first step. the company plans to roll out new outwear, new types of jewelry and coach has been growing men's business which could go from 8% to 25% in the next throw to five years. really need to execute. and coach has become a value

stock, it's still plenty of growth opportunities. especially in china. this used to excite people and people got like wait a second. new york is like -- america is not doing so well. why should we care about china? coach gets 11% of revenues from china. expected to grow to 20% over time. if the growth decelerates from 22% to 15%, are still looking at 8 billion market five years down the road. if coach gets the same market share in japan, we are talking about a billion in incremental value, and that translates to $1 per share. what else? coach still has the industry leading markets, and generates a massive amount of cash flow. over a billion dollars a year in free cash flow. the company has bought back 2.5 billion in stock. last october, announced a new 1.5 billion buyback. 1.36 billion left. equal to a little less than 10%

of coach's market cap. and 2.4% yield. even the stock buying and woes, the balance sheet is still beautiful. beautiful as a coach? as a coach bag. and coach has 28% of domestic handbag market. coach may have stumbled, bull vaught here with it selling 12 times next year's earnings. in the market that seems to go higher every darn day, hard to buy most stocks without feeling like a moron for chasing them. maybe that's the virtue here. you can buy coach, because coach is nearly 30 points off the 52 week high and 3 points above the low. stock gotten obliterated as it made the painful transition. coach is down here, the value is for real and wouldn't be nuts for someone to take it over or take it private. very good investment here, and, yes, you know what? even better trade from now on whenever it gets down to the $45 to $50 range, where it is right

now. let's go to glen in iowa. >> caller: hey, jim. long you time listener. y used to listen to you on the radio in chan dough shenandoah,. >> that's where a lot of the phrases come from. >> caller: you talked about getting a new piece of the berkshire hathaway. since then, sears has tailed off, do you still hold those thoughts about that? >> no, no. we had a huge hit. someone says where does booyah come from? a bunch of guys said they bought it in 25, from kmart and had a huge hit. we didn't call the top. very hard to call the top. made a substantial chunk of change and had to leave it. and then it went down a great deal. on the radio show, liked it. still climbing, got on the tv show, had to change our mind, didn't get all the gains we should have, but a nice gain and then skedaddle.

shawn in maryland. >> caller: big daddy jim, how are you? >> real good, how are you, partner? >> caller: i need your insight on pool. bought at 37, now 47 now. i noticed volume is low. 100,000 give or take. >> i have always felt this. we actually commented on this as a housing play. it's an ancillary housing play. like we recommend certain roofing plays and window plays. pool is also that kind of play, and i have to tell you, you know, swimming pools, buy a new house, up end house like from toll, it might have a pool or might want to put in a pool. your house could increase in value. a loser to waste all that money putting in a pool when your house is going down. not anymore. i don't know what do you think? from not to hot? could it happen? coach has been a dog lately. but it's made a painful

transition from an expensive growth stock to a cheap value stock. you know what? maybe -- maybe it's right to buy. stay with cramer.

buy. buy.

it's it's crunch time, cramerica. the eighth anniversary show is tomorrow. can you believe it? head to madmoney.cnbc.com and vote for your favorite moment. it's all great, and it's painful to choose, but it's your duty as a cramer can. and now it's time -- for the lightning round. on cramer, and you call and i tell you buy or sell. and when the sound, the lightning round is over. are you ready, skedaddy. let's go to austin in florida. >> caller: booyah, jim. booyah. >> booyah. >> caller: my stock is alj. shoutout to the student investment club. >> i like crb refining. we did a video on the street.com if you want more information. david in massachusetts.

>> caller: jim, how are you. like the show, love the personality. >> thank you. >> caller: question is, tdt, just upgraded. >> i need to recommend every single part in one of the airplanes, including bpa. we like honeywell, all of them. are. big robert in missouri. big robert. >> caller: hello, jim. >> yo, yo. >> caller: my stock is ppg. >> are you a lucky man, that stock going higher. i don't like the way that the steelers broke up the team. kevin in new york. >> caller: my stock, hfc. >> my dad, talking about refiners earlier, i would have put hfc on the top. sorry, dan digger. the refiners as long as oil is found in this country, keep going on the refiners at this pace. and ulta salon, sell, sell,

sell. that's a freebie. stick with cramer. >> lightning round sponsored by t.d. ameritrade. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. all on thinkorswim. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase.

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you know i ask loathe chasing stocks on the way up. very reducktant to buying anything after a massive rally and hey to pay for a 52-week high. wait for a pullback, buy on weakness. salesforce.com rallied, rallied, rallied. now i'm looking like a company that looks like they could be the next salesforce.com. it does have a nose bleed valuation. netsuite. letter n for home gamers this is an amazing stock. netsuite, close based software insurance company. provides medium businesses with the software am clakzs they need to run the core functions of an enterprise. they back office software for payroll, tracking inventory, for order management and customer service. they provide e-commerce capability management and point of sale software too.

this was the first to rate all of the different components into a single, easy to use cloud based software suite. net suite dominates the medium size business market. stock has been roaring along with it listen to this. three years ago, at $12 and change. now at $76. up more than 500%. it's super expensive. trading 11 times sales, sales, not earnings. 100 times net year's earnings estimates. but you could have made the same objection at any point in the last couple of years and what happens? the stock just kept going higher, and netsuite belong in the same category with salesforce.com. it can be contained by traditionally valuation metrics? let's talk to zack renelson, president and ceo to learn more about his company and prospects. welcome to "mad money." >> thank you what an intro, do you a better job of describing

my company than i do. >> we spent a huge amount of time. i went to the website, and have you gawker and a lot of our viewers watch gawker. a new company. you think they would be able to do this thing themselves or maybe would have had 100 people doing it. what do you do for gawker? people can go and recognize, oh, i've been there. >> we do exactly what you say we do. we run their business. the idea behind netsuite to run a business, not a department. the way most business applications have been built. they used us from the moment the companies lead to the moment they collect cash. other great names, go pro, jaw bone, all of the new hot companies. >> jaw bone, the wristband everybody is talking about. $600 million company. >> go pro similarly. the headphones when you are skiing. zero to a billion overnight. netsuite. >> how did they know? you didn't replace someone. that was just a get go? >> it was a get go. the new entrepreneurs realize they need a different type of system to run their business.

the last premise isn't made to run a modern company. go pro went around the world and said i want one system to run my business. they found netsuite. i was telling the story you told to open the story, an older gentleman stood up and said i absolutely agree, my son is running his software, amazing, got him offline. what's your son's company's name? go pro. never heard of the. three years later, one of the hottest companies. >> it's fabulous. >> right. >> if i had a company 200 people, typical company never heard of you guys, probably 40, 50 people do not produce revenue. your software takes people who -- historically, they aren't revenue producers, can we get rid of them? you replace some people who don't produce revenue? >> a great application for startups, mid sized business, any type of business. >> you have in your panoply,

prudential in honolulu, hawaii. the home of mark beneoff. and best friends with your chairman and founder. >> he married evan goldberg, our founder. absolutely. a very small group. >> how could you go after prudential? >> they came after us. a great thing. companies usually come to us. we sell mission critical software, hard to pick up the phone, say we like to replace the heart of your company today? they find out their heart is sick if they are using something else, need a new system, and call us. prudential called us. a great story there. >> okay. i want to hear more. but you also had a strong bottom line. larry ellison, owns a huge share of this company. aren't you at certain times going against him? >> i don't think so. we target mid sized companies. oracles and sometimes you hear about coming down market. we sell to companies with 1,000 employees and below typically.

certainly not the sweet spot from a sales point. transaction size? $3 million. ours is $100,000. there's no way. >> but in the actual transcript, you slam sap. in your press release. >> did i that? >> yes, yes. these guys laughing, and you talk about recently, quarterly, no one ever talks about the competitors missing. you do. >> it's good -- sap's customers to know there are options out there. and they know thanks to you. >> okay. you guys directly willing to talk about microsoft. >> oh, yeah. >> and not that positively. >> microsoft if you look at the mid market, not sap and oracle. microsoft is leader with an old product called great plains. >> yes. i remember. >>ist still what people used to run their business today. it was designed before the internet existed. we built modern architecture and

most companies use this stone age product to run their company. >> i will read what a bear says. i need you to respond to this. this is saying netsuite, the stock is not a sell. we think it's likely that the firm's momentum slows. we can't with a straight face tell investors that initiating a position ten times, now, of course, higher, 2014 revenues a good bet. what do you say to people who say i can't say i can't have a straight face if i tell people to buy you? >> you know more about markets than i do i don't set the price of netsuite, the market does. the market set it whatever it is today. our focus, about building value, solving customer problems. what we do every day. help customers transform operations, bring them to the internet age, cloud age and we spend all our time worrying. we don't worry about the stock price. we let the market take care of that. >> a great job building a terrific business. thank you so much.

zach nelson of netsuite. go to the website, everything i have is available. take a look at it and make a judgment. rich stock, sometimes rich stocks come down not because of the company, but the overall market. these guys won't be affected by what pulls down the overall market. "mad money" back after the break. tomorrow, we're celebrating eight years of "mad money" with jim cramer. >> they know nothing. >> after a wild ride, we're back at all-time highs. don't miss "8 for 8," tomorrow, 6:00 and 11:00 eastern on cnbc. [ female announcer ] what if the next big thing, isn't a thing at all?

it's lots of things. all waking up. connecting to the global phenomenon we call the internet of everything. ♪ it's going to be amazing. and exciting. and maybe, most remarkably, not that far away. we're going to wake the world up. and watch, with eyes wide, as it gets to work. cisco. tomorrow starts here.

have i have been hearing lamentations that our market is

leaving some behind. aluminum horrendous, fertilizers can't get out of their own way. to which i say good. that kind of leadership dooms us to failure. stocks get pushed up big by fools willing to pay more for earnings. earnings are thaw are so driven by inflation, central banks around the world see across the board price increases, these companies putting through, they will goose up interest rates dramatically and crush every stock with them. these commodity stocks, they are the enemy, not the friend of the bull. they are turn coats, calmness. manuchechurian candidates of th ursa major bear party. ever go back and look at what led to us the shadow of the deadly bear market of 2007? perhaps you ought to. remember? that's when we took out these highs we just took out? i looked back at that market top. we had a total rogue's gallery of a narrow leaders then,

depending on the kindness and steroids of the chinese government and needing hyper in nation. that's what you want to pin your hopes on? now everyone says can be really be in a trustworthy bull market? and freeport with oil and gas assets can be done as only regarded what is level best to destroy itself. and money costing so little right now. my question, whether you want a miner and refiner of foreign copper and gold to be leader in the market. freeport happened to be in the january to june 2008 rally. 33 to 61. most visible leaders, and peabody. how about that one? 50 points between january 2007 and june 2008. rallied as high as 2008. the great coal market. and not only coal 2 peabody.

and the halcyon days for the commodity player, debt spite gigantic efforts, no, alcoa is very much a commodity player, nothing stood for the faux bull market that ended and crashed more than the fertilizer companies, ultimate leaders, stench still hangs over ag which soared in 30 in january 2007 to over 100 in 2008. potash's move is still the stuff of bull market legend, outdone only by total market mosaic. toured from 157 to june 2008.

descent is every bit as precipitous as we discovered how easy it was to make fertilizer and the barriers to entry were much lower. steel on co and that's how u.s. steel came up to 191 in june 2008. terrific, nothing like shooting star ak steel, 18 in january 2007 to 73 in june 2008. don't bother to look that fly speck of a stock now. oil and gas rolled those days, chesapeake, 27 in 2007. and actually doubled by june 2008. leaders of the era. companies that made undifferentiated product that needed rampant inflation and an ever growing china to beat the numbers. do you really want that kind of leadership? really worried about those stocks? i think you ought to recognize how zero sum those names were. and the last time they were on

fire. at this moment, they had everything going for them and the rest of the market had so little going for it. all in all, i would rather take what we have going now, it's a lot healthier and certainly a lot safer and potentially much longer lasting. stay with cramer. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done.