no other energy company has invested more in the us than bp. we're working to fuel america for generations to come. today, our commitment to the gulf, and to america, has never been stronger. >> i'm jim cramer. and welcome to my world. >> you need to get in the game! >> they're going to go out of business and he's nuts! they're nuts! they know nothing! >> i always like to say, there's

a bull market somewhere. >> "mad money." you can't afford to miss it! hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. just trying to make you a little money. my job is not just to entertain but to coach and teach you. so call me at 1-800-743-cnbc. the chatter about the stock market becoming a bubble has been thicker and is thicker of late. as commentator after commentator come on our network and say this is absurd. this market is ridiculously overvalued was the case again today with dow jumping 63 points, s&p climbing 3.6%. nasdaq advanced .09% and all i heard was yep, it's bubble, bubble, toil. and, indeed, trouble! i rebel at the simplistic line of reasoning, it tends to come from people who haven't liked the market for ages and ages or more important, do not know about individual stocks. if they did, i think they would be drawing different conclusions. so tonight we're going to tackle the bears who think we're in a bubble. attack them head-on. we are anti-bubbleheads! we're going to find out where they are right as they are in some places -- i'm not dogmatic. and where they are wrong. and we'll print this bubble talk before it gets out of hand, and we're also helium! first, how about the overall market.

is it too rich? let's consider the s&p 500. right now we're taking 15 times earnings for the s&p 500. that price to earnings multiple lingo may elude you. suffice it to say you have to look at the stock market as if it were any other piece of merchandise. you know what's expensive, and you know what's cheap when you go to the department store. the price to earnings bubble helps you to comparison shop. the value of this market versus other markets. the value of this market versus the market previously. historically, 15 times earnings is about what we paid in the past, so neither on sale or expensive versus other stock markets out there. if it were on amazon, you wouldn't feel like you're getting a steal. but you would know that you aren't overpaying, especially with executive producer regina gilgan favorite, amazon prime! how about the dow jones average? that's at 14 times earnings. no real bargain. in other words, you are paying about the retail price for the stock market right now. some of you, particularly

department store shoppers, don't want to pull the trigger unless there is a discount. you think this should be the old jcpenney or the new jcpenney or whatever. something to which i say i don't blame you one bit, especially because we had some nice discounts before that fiscal cliff stuff. you can very easily say, oops, missed that sale. but another does come around. the only issue i have with that is given the huge run we've had in stocks, the discount may not take the stock market as low as you want. so therefore, you may never get in with that negative attitude. so when you can't get a bargain, what do you do with your cash? here's the second way to value stocks. how do they stack up against what else is out there? if you're not in stocks, you've got to be in something, right, unless you want to put it in your checking account, like me. most important, how are they versus bonds? the traditional competition of which all assets are measured. how about 1.87% for the ten-year treasury. that's ridiculous, ridiculous alternative, even if it's

risk-free. and it's not if you buy the bond funds. in the past when we've had that rate, stocks have historically sold at 17 times earnings. so while the s&p isn't cheap versus itself when it's compared with the alternative from fixed income, wow, that section of the mall, you're getting a steal with stocks. that matters. and it's why i keep emphasizing how dividend stocks are the right place to be, especially for nontaxable accounts. especially for taxable accounts, because of a quirk in the tax law, if you were in a taxable account, you've got to pay taxes. and they're a real bargain on an after-tax basis because you pay 20% versus the income rate for bond income. so if stocks are cheap versus bonds, and they aren't historically versus themselves, then, you know, what's the deal? they're cheap versus bonds and they're cheap -- why are people so angry? okay. it's simple. we know the federal reserve is artificially keeping bond yields down by buying bonds endlessly

causing the interest rate competition to be distorted. this fund-raiser last night four people insisted on brow-beating ben bernanke to me -- they know i like him. saying his bond buying program is going to cost inflation. several said he could wreck this country by doing so. i defended the fed chief saying he's trying to get this economy moving while both congress and the president are trying to do the opposite with their demands to cut government spending or raise taxes. bernanke doesn't want a repeat of the '37 recession and the great depression that happened when the fed tightened when the president tried to balance the budget as they're doing now. no matter. all they wanted to say is that bonds are unnaturally low which therefore made stocks unnaturally high. okay, now here's where i agree with the critics. there are, indeed, some parts of this market that have gotten distinctly frothy. for example, because the fed is keeping down the interest rates of the bond competition, utility index, which is all these steady-eddie dividend payers has now hit a four and a half year

high and has been up for eight straight days. i don't regard that as sustainable. i would not be buying utility stock tomorrow if it yielded less than 3.5%. that is the upper limit of what i will pay. 4%, i will take it. below that, 3.5, no. i think utilities could fall here, maybe fall hard, if you get data that indicates the fed might end what i'm calling the magic carpet ride. you get that ride to end, the utility stocks that have moved this much, they'll get hit. and wish you didn't own them. same with the food and beverage names as well as big trucking stocks i have left off my list of the ones i do like. i think you'll see stocks like general mills. terrific interview with ken today. i think you'll see general mills, coca-cola may not have as much up side as these levels as their yields grow tinier and tinier because of stock price appreciation. my charitable trust, actionalertsplus.com has said

goodbye to uber cramer fave bristol-myers! why? because it sells at two-and-a-half times its growth rate. i don't like stocks that sell at more than twice their growth rate. i like growth at a reasonable price. also known as garp. it's unreasonable. bristol-myers is unreasonable. and because the stock yields less than 3.5% which while bountiful versus treasuries won't necessarily cushion you if it turns out that bristol doesn't deliver the already high bar earnings per share number that i'm looking for and others are really betting on. in other words, bristol-myers is leaving no room for disappointment. and the trust can always buy the stock back when it reports on april 25th if it misses. i have to admit, though, i feel pretty darn naked walking around without my bristol-myers. it's the tighty-whities of the drug stock world. now i am not worried about bristol-myers but it's up from $32 when it broke down when the

hepatitis c drug failed. 16 firms that have it as a whole versus only 7 that say it's a buy. i think that just at this point, a merck or a glaxosmithkline or a johnson & johnson have more up side with less down side which is the essence of what "mad money" is about. so i am seating these elevated areas to those saying we're in a bubble. even as i recognize there are real good companies being inflated. this is why it's so hard. these are not fly by night companies that have gotten expensive. they're the best of the breed! they're the -- they're expensive versus their historical prices but such great companies that i know people from all over the world are flocking in to buy them. if you stick with the show, though, i will tell you about stocks that are actually not best of breed. that may be expensive. i don't know. there's some worries out there. not real ones. nothing i'm really too worried about. so while the whole market may be evenly valued and trading at a discount versus bonds, i can understand why people would be worried about the contest being

rigged against bonds and the too high price may be paying for safety. my charitable trust has been selling these stocks as they become overvalued and there isn't a single one that hasn't gone higher still after i sold it. talk about sellers' remorse. i understand while some may think these names are frothy, you simply can't keep up with the averages without them. yeah. i feel awful every time i sell one of these for the trust. the trust gets out and then watch it go higher. here's the bottom line. we are not frothy. we have pockets of froth like some of the best of breed dividend payers where people are paying too much for safety. just like the critics say. but know this. the market is taking them up with or without me. and my discipline and worry about bubbles is holding me back from recommending some of the best performers in this market. including ones that i just feel naked without. jeff in new york. jeff. >> caller: hey, jim, good evening from watertown, new york. how are you? >> man, great. i love it up there. what's going on? >> caller: nothing much.

have to look at washington and wonder how the economics will shake out when it comes to gun control and it's not just guns in watertown. we've noticed a shortage of ammunition. people standing in line just to get .22 shells. does it help a company like smith & wesson? >> i like atk more for that reason. i think it's a better buy. and i've been recommending atk and i think that atk also has what i regard as being defense contracts that are not going to go away. so that's the better play. how about we go to akash in mississippi. akash. >> akash? are you there? >> caller: hey, jim. hey, want to give you a mississippi bulldog b-b-b-boo-yah! >> you bet, man. now there's what we're talking about. what's up? >> caller: hey. i want to know what you thought about health care stocks, hma, health management associates and thc. >> they ran up too much. someone was asking about hma and i was hoping they would call

1-800-743-cnbc. i'm not a fan at this point. too much risk, not enough reward. are we in a bubble? i'll say this. we may have pockets of froth. especially, though, among the best of breed, not the fly by night. and may continue to soar. my discipline is to keep you from buying them. they could still go higher as long as the magic carpet ride is on. coming up, cramer has been examining the best of the big phrma stocks all week. but these companies aren't all healthy. tonight, jim reveals a name that may be under the weather. and he's quarantining it in the sell block. and later, cheap is cheap. tired of hearing what's overvalued in this market? stick around. cramer's bargain hunting for stocks that could still have lots more room to run. plus, brand power. jcpenney and apple have been

beat up. but have they suffered damage beyond repair? entrepreneur, ceo and "shark tank" star daymond john weighs in. all coming up on "mad money." don't miss a second of "mad money." follow at jim cramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to "mad money"@cnbc.com. or give us a call. 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ you know my heart burns for you... ♪ i'm up next, but now i'm singing the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is! departure. hertz gold plus rewards also offers ereturn--

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all week, we've been singing the praises of big phrma. as a place to find consistent companies with bountiful dividends and especially in this environment where you can't get much yield from treasuries or certificates of deposit, thanks to the fed. you always want a nice, high-yielding dividend stock in your portfolio. those of you who are looking for income from your investments rather than pure price appreciation might want more than one high-yielder as long as you stay diversified.

but while i've been telling you to buy stocks like johnson & johnson along with merck and glaxosmithkline, after spending two weeks highlighting my favorite growth biotech names, i need you to know that there are also plenty of drug stocks you do not want to own. like i've been saying, all phrma names are not created equally. and it's important to be able to recognize the stock that's a sell. and why that stock is different from all these other drug companies that are buys. and that's why for tonight's thursday's regular sell block, i want to tell you about a drug company you absolutely do need to avoid. i'm talking about teva pharmaceutical industries, t-e-v-a for all you home gamers, which is the world's largest maker of generic drugs and also has a sizeable patented drug business. all right. now i don't like teva just because it's in the business of making generics.

even though they have much lower margins than branded drugs that are protected by patents. in fact, i actually used to like teva. we owned it for the charitable trust years ago. but then we realized the company was struggling and in november of 2010, closed down our position on the stock at $50.30. since then, teva pulled back to $39 and change. s & p during that period how about up 30%? and i don't think teva's period of underperformance is over. if anything, it's possible the company could be in more trouble going forward. the stock has been hammered to the point where it may not be able to fall that much lower. on the other hand, that's no recommendation -- i don't see any reason for teva to go higher. and in my book that makes it a sell, sell, sell. if you want to understand what's wrong with teva right now. you need to know why this company used to thrive. back in the old days, teva made a killing as huge branded drugs went off patent and were able to move and take in huge share with teva generic versions. this company was the mover in the generic space and savvy and quick in getting approval like that. remember how i said the 1990s were a golden age for big phrma.

those companies had huge growth thanks to a whole host of blockbuster drugs. when these drugs started to go generic, guess who made the killing. that's right, teva! but now teva has two main problems. one with the generic side of the business and the other with the branded one. in terms of the branded drug, let's just say, it accounts for 47% of the company sales. and it's just like any other phrma outfit. that's right. they have branded medicine. well, guess what. teva is finally getting a taste of its own medicine. the company has one huge drug called copaxone for multiple sclerosis, $3.8 billion in sales last year counted for 19% of the company's total revenues. likely to face tough competition, a new ms drug, i profiled last week. it was two weeks ago. the stock is up very, very big. but the big worry here is simply

that copaxone's patent only lasts through 2015, two years from now. and some terms start to expire next year. in other words, teva is about to fall off a gigantic patent cliff of its own! as other generic drug makers swoop in to copy copaxone and crush the price of a drug that now really represents about -- geez, represents about a fifth of the company sales. teva is now on the other side of the patent expiration gate and i'm sure they don't like it one bit. talk about poetic justice. then the generic side of the business, accounts for half the sales, the generic drug business not what it used to be. over the last five years, the big phrma companies have been going over what everyone calls a gigantic patent cliff as tens upon tens of billions of dollars worth of branded drugs, including blockbuster drugs with huge sales. now we see the light at the end

of the tunnel for these massive patent expirations. rather than focus on blockbuster drugs, the phrma industry is working on small target indications. if you're a generic drug company, you want to copy one drug and have enormous sales from it. it's a lot more expensive to copy and then manufacture lots of little drugs. and yet that's what they're facing. meanwhile, teva is still the number one generic drug company, 25% market share. here's the problem. an increasing amount of competition in what is basically a commodity industry. so you have less opportunity caused by fewer big blockbusters going off patent and more generic players tussling over who gets a piece of the pie. it's a battle out there. for example, teva's largest generic drug is called pulmicort, an asthma drug worth 350 to $500 million in sales to teva. but more generic players will eat up some of the company's market share or hurt its pricing. teva has been trying to transition away from the generic space for years in order to become a proprietary player.

we've seen that, a lot of companies trying to go proprietary but the company made mistakes in the execution. 2011, bought cephalon for $6.8 billion in order to get their new drug pipeline. that has not proven to be rewarding for shareholders yet. it's not like the company is run by incompetencies. anything but. last week they brought in dr. jeremy levin, smart phrma executive and their ceo. terrific move. but teva's structural problems will take a long time to work out and won't necessarily give you -- i don't know how quickly you can fix it. right now the stock sells for seven times earnings. that might look cheap to you. but i say teva is what's known as a value track down here. especially since the company sales in earnings are both expected to decline in 2013. remember, most companies we talk about on the show, we expect their earnings to advance in 2013. so here's the bottom line. if you're going to own a drug stock, you want to own something that's truly proprietary and that isn't about to fall off a patent cliff. teva is saddled with a big nonproprietary generic business

an its biggest drug loses patent protection in two years, copaxone. with so many other terrific pharmaceutical companies out there, merck, johnson & johnson and glaxo, all having better yields, stronger growth patterns, what the heck? why would you ever mess with teva? dan in florida. dan. >> caller: boo-yah, dr. cramer. how you doing? >> hi, sunshine. what's shaking? >> my stock is walgreens. getting close to 52-week high. i'm wondering, is there still a good upside i could stay on it or should i pull some profit? >> no, no, no. 52-week high today. but walgreens truly has it going with the brand new template stores with the -- alliance acquisition. and by the way, with this new deal they just made, i really -- the stock is going higher, not lower. historically great company, too. let's go to gay in texas. gay? >> caller: thank you so much, jim, for taking my call.

i'm calling today about boston scientific. it has been on a tear lately. and i'm wondering, should i wait for a pullback before i buy it or buy now? >> if you like it, this is an okay level. my problem with boston scientific, it's not best of breed. and i only like to recommend the best of breed stocks. lately, some of the best of breed stocks have nosebleed evaluations but i still like them more than boston scientific. is teva right for your portfolio? i think not. after the break, i'll try to make you even more money. coming up, cheap is cheap! tired of hearing what's overvalued in this market? stick around. cramer's bargain hunting for stocks that could still have lots more room to run. [ male announcer ] there are people who find their own path.

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and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. earlier in the show, i tried to reconcile the notion of a bubble in the stock market. which i don't believe in. versus certain sectors that are tiny bubbles. i emphasized the whole market is not expensive by any means, historically versus either itself or the bond market. which is its primary competition. and those who believe that it is are just all angry, because ben bernanke has rigged the bond market at artificially low levels and they can't take it. i was willing to concede there is some froth in the stock market but it's really concentrated in what we call the best of breed names.

not the fly by night dot coms or the heavy materials in fertilizer stocks like we saw at the bogus 2008 peak. alcoa, for example. sold at $44 in that last 2008 heyday. now it sells for $8. u.s. steel traded at $191. now it is at $17. freeport soared to 62 bucks. now at 33. potash sold at $80. now it's just under $40. arch coal sold at $75. now it's $5, for heaven's sake. that's hardly frothy if you ask me. i don't know about you. so while i'm willing to admit some areas have pockets of overvaluation, i'm not willing to concede they constitute a bubble. there are whole other areas that i call fairly valued. meaning they aren't bargains unless lots of things go right or unless they go down a lot. take retail.

this group rocketed today with ross stores jumping almost four points, one of our favorites. went from 60 to 63.80. walmart rallied, closing at nearly 78, up $57 from a year ago. imagine that. big cap. tjx, cramer fave, told you to buy it ahead of the monthly numbers. ahead of the monthly marks, actionalertsplus.com. up $78.40. big moves. some on the backs of short sellers. family dollar, just yesterday, name of the late federal tax refunds, and the cold weather in march, which contributed to that company's shortfall in earnings. the selloff didn't happen. many companies that did report said things got better going into april. now the retailers aren't expensive but they aren't cheap. they are valued roughly what's known as in line with the market. if the economy gets better they will turn out to be cheap, though. if it gets worse, they will turn out to be expensive. same thing with the big industrials.

take best of breeders, 3m, honeywell, united technologies. which my trust owns. they have moved up the chart. but the retailers, they're only as pricey as the stock market itself. they aren't rich, they aren't bargains. if the economy slows in the second half, you might regret paying these prices. if the global economy including europe or china picks up, which i know i think you will very much regret you did not buy right here, as these stocks will turn out to be cheap, maybe astoundingly cheap. oddly, some of the super growth stocks, i know they seem like the bubblelicious like celgene. gilead, wow is that hot. ones that seem to go up virtually every day might turn out to be actually cheap on what we call the out years. that's 2015, 2016. they could be cheap on 2015, 2016 earnings. that is if the fda keeps being as aggressive as it's been lately in giving drug approvals. these biotechs can be traded around as they roar on some

days, but they too are not expensive if everything goes right. classic growth stocks aren't that expensive either. i can make a case for buying pa nara, whole foods based on 2014 prospects for lower material costs and higher price to the consumer. look, maybe you can exclude amazon and netflix. they are expensive by any measure but they have tremendous momentum. and two stocks does not a bubble make. especially where goldman sachs had to raise numbers from netflix. let's spend a moment on what's downright cheap. three of the largest segments i think they're compelling here to find one or two you like. first of the banks. i cannot believe where these stocks trade and how little ground they've made up in the last couple of years. even as they are the envy of the world for incredibly secure franchises. stocks like keycorp, first verizon, first niagara, incredibly cheap to me. historic cheapness will eventually matter. i know nobody cares right now. second technology, astounds me

with how cheap it is. even though i know it's challenged. i look at cisco. growth that far exceeds that of the average food company, and ten times earnings. cheaper than food stocks. intel, microsoft. maybe the personal computer, i know that's bad but they have gobs of cash. dividend yields equal to food stocks, much better growth and do have the ability to change their stripes. they can just be led in a more creative way. oh, and what can i say about apple? it's supposed to earn $43 a share. let's say it's only going to earn $33 a share, that kind of haircut no one is giving. even then, apple would sell for less than the average stock with a higher than average dividend and huge cash addition i'm not including in the equation. finally the oil and gas stocks. these companies have done nothing for years and in some cases getting back to where they were, many hadn't reached that. even as oil proved to be staying elevated, not just elevated that one moment, elevated where you can say, well, you know what, this is pretty absurd. people keep presuming some sort of reversion to lower prices,

lower natural gas prices and a sudden drop in oil. i've got to say, why should those be a given? they make no sense to me. and how can you still not take a look at terrific master limited partnerships, a terrific yield. stocks like linn energy, which my charitable trust has been buying, 7.5% yield. high growth mark west. best pipeline for the east. i don't really understand these valuations, frankly. they just mystify me. so, yes, there are pockets with the intelligence grousing, because from fixed income alternatives. fortunately, these stocks belong to best of breed companies that won't fall very hard or very fast, unless interest rates real sky rocket, which i don't expect as ben bernanke is telling he won't raise rates unless we hit 6% unemployment. which last i looked we were a long way off. i believe him. there are other areas you can say are fairly valued, but with more than a third filled with cheap financials, who can say this market is expensive. here's the bottom line. the critics who would have had

you sit out the market for the last 4,000 dow points have gone from expressing the companies of tremendous earnings risk because the economy is falling apart to now expressing that stocks have tremendous price risk, because they moved up too much. i say that if you look at things historically, the averages aren't expensive. and more important, there are huge holes of cheapness that simply have to be bought on any opportunity you can get. don't move. "lightning round" is next. the "mad money" back to school tour is in session. and this time, we're headed to the city of brotherly love. if you're a student at villanova university and want free tickets to see cramer do the show live on campus, thursday, april 25th, visit madmoney.cnbc.com.

it is time! it is time for the "lightning round" on cramer's "mad money." when we play this sound, the "lightning round" is over. are you ready, skedaddy. time for the "lightning round" on cramer's "mad money." i want to start with claude in north carolina.

claude. >> caller: hi, jim. boo-yah. >> boo-yah back. >> caller: i'm a big fan of your show, jim, cnbc, i'm a first-time caller. i wanted to ask your opinion about a company i've been calling, universal display. >> that is a tiger by the tail, sir, too hard for me. eric greenberg has opined on it, it is too hard. that is a genuine battleground! let's go to kevin in california. kevin! >> caller: hi, boo-yah from sunny hollywood hills, california. how are you doing, jim? >> sweet, love it, wish i were there. >> caller: virnetx. >> when that thing crashed, it did crash and burn. they lost the case. they had won a really good case against microsoft and then lost another case. and now it looks like it is history. if you did own the calls, you were stomped out. i don't really understand the next court case so we'll leave it alone from here. stomped out by calls.

let's go to matt in new york. matt. >> caller: hi, jim, big boo-yah from new york city. >> nice. >> caller: checking out this pretty cool marketing company, constant contact. what are your thoughts? >> i think those are too competitive. i wish they would come on the show and tell us why they're different from anybody else, because i don't see it. let's go to christopher in tennessee. christopher! >> caller: how are you doing? >> really good. how about you, partner? >> caller: doing good, sir. okay, i've got a bank stock. i've looked at some of the other stocks, and it seems like it's a lot lower. the ticker symbol is rf. it's regions financial. >> it's too cheap, $8 stock going to $10 i would get aboard that one before it leaves the station. robin in california. robin. >> caller: i could just kiss you for all you've taught me about the stock market. how about a little zillow talk. >> oh, zillow talk, yeah.

i'll tell you. i have to give you some realty, though. because realty is better than zillow. what can i tell you? i hate to flirt, but i truly don't believe zillow is place to be. i would rather realty you. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is sponsored by td ameritrade. coming up, brand power. jcpenney and apple have been beat up. but have they suffered damage beyond repair. entrepreneur, ceo and "shark tank" star daymond john weighs in. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪

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and we're just getting started. to grow or start your business visit thenewny.com you follow the stock market, you're either on our airwaves or on the web or by reading old fashioned newspapers, you're constantly seeing and hearing people opine about the state of the consumer, tell us the consumer is feeling good or squeezed based on big-picture economic data, macro people. but the truth is, most of these talking heads don't have a clue

about how consumers think. they aren't retailers, merchants, don't sell things to people for a living. that's why tonight i want to talk to a true brand expert, a real guy, daymond john, fashion designer, author, businessman, probably best known as the founder and ceo of fubu, as well as a panelist on "shark tank". an author of "brand within display of power." on this game, there's only a bias -- bias to listen to people who are stock market professionals. and i think that's a mistake. expertise is expertise. and he understands branding better than anyone else out there. the last time we had him on the show in april of 2010, he told us that blackberry had a lousy brand image at the time it was a $71 stock. now trading at less than $14. also created the daymond john lifestyle brand index, seven stocks up an average of 44% since then. nicely outperforming the 33% gain in the s&p 500 over the same period. he beat the market. that's the highest compliment i can bestow.

and that's why tonight we want to go back to the well, take advantage of his keen brand awareness once again. mr. john, welcome back to "mad money." how are you? >> thank you. i'm great. >> good to see you. >> you know what, on the index, we didn't mention that i did short rimm at the time. >> yes, and that was a great call. now, how did you know -- because at the time, a lot of the analysts felt that company was never going to lose its mojo, to quote my friend david faber. >> i looked at the brand and i saw it was not extending its presence in the market and wasn't upselling its current customer. it was also listening to the retailers instead of listening to the consumers. and the retailers are usually out of work consumers. these guys are going to tell you the last thing they think. but it's not their job as a consumer who dictates the market. >> but you had a couple huge winners, under armour, a company

we like very much. how did you know under armour. i know you know apparel but that's a company a lot of people were worried about. >> i can't say that i know all these things because i'm smart. i was sucking wind on my companies, and i realized that footwear and accessories were where things were going to go. footwear is basically becoming consumable goods. you wear a pair of levis. they look better if you wear them for ten years. but footwear, you've got to get a new pair every three months. >> you know footwear, you're involved with a brand that i think is -- it's an iconic etonic brand. >> i grew up in the hood speaking ebonics so i decided to buy etonic. right? so i'm looking at the brands and the ones working, and the ones working are accessory brands, people starting to dress from the foot up. and the kids, they're no longer buying regular clothes. you know why? because technology is killing it. technology, when a kids gets some money now, instead of buying clothes, he has ten apps, he needs the ipad 17.

he is not even going out to the mall to look for friends because he's on facebook and he's on youtube, so he's not buying the products anymore. the only ones that are selling are accessories or sportswear. and that's where the market is. >> but i heard you in that sentence say google, because of youtube. facebook, which a billion users strong and stock my charitable trust owns, and also apple. my trust owns that. >> yes. >> now you've got three companies at all different phases of love and hate of the consumer. >> exactly. >> who is doing well? who has to reinvent? >> well, who has to reinvent? hmmm. google i think has to do a little more work. but they own everything. right? >> right. >> apple, people are surprised that apple where it's at. i think that apple was priced for perfection. >> 700 level. that wasn't their fault. >> they couldn't fail. anything that goes short in apple they couldn't fail. but like any other business, whether fubu, we were the golden child at a certain time.

other people start to catch up. you see, apple was the pretty girl at the party, right? >> right. >> and i was looking at her for a little while until i got drunk and everybody became attractive, you understand what i'm saying? >> oh, okay. >> i like to put it -- i'm a layman guy. >> i defer. how did samsung get to be cool? >> i tell you what, they did something very, very rare. they trickled up. now, samsung, whether people know it or not, that thing used to look like zenith, right? exactly. they went and spent a lot of money, a lot of technology. but guess what, when i was only selling hats out of my basement, samsung textile division gave me a call and said we want to underwrite fubu back in 1996, '97. they're always looking for cool. they're always looking for cool. >> can apple -- it's still cool. >> apple is still amazingly cool. >> okay, good. because we tend to write it off. now your index did great. i understand you've got new players. >> i've got some new players. >> and maybe i should follow my advice and invest in all of them, but i don't. >> you should have last time

when you were on. holy cow. >> i go home and felt nervous when i see the market go up and down. sell, sell! >> we think you're a great guy and had you back, because holy cow, those were great ideas. and i think brand is how -- look, you can see brands three years from now. that's why a stock moves, because you see it ahead of time. >> i love branding, because you know what, there will never be anything new you will ever invent in the world. i didn't put three sleeves on a t-shirt. twitter a thousand years ago was a note on a pigeon's leg. it's only how you perceive the brand and set the angle that makes people buy into it. >> walgreens brand. >> incredible. acquired -- making their brand the everyday person, but sexy. you go in there and it looks like an apple store. >> i buy walgreens -- i know the manager. urban. urban outfitters. >> hitting a young customer, a little quirky. it doesn't look like the run of the mill. you're excited when you go and see things and go what is this? >> absolutely right. okay, now nike, come on, you've got to go against a big guy. >> got to go against a big guy,

but nike is making technology, along with consumable goods. you have your bands here and whatever, and you're going to tap into nike and they're going to tap back into you due to the bracelets and everything else. and they know who you are. trust me, they are tracking that. >> i love that company. yahoo! doing a good job. >> amazing job, coming around and is going to take that thing through the roof. >> you know that was an uncool company until she got there. >> absolutely. and she managed to turn it. and you know what, they're doing a lot with apple. >> yes. >> right? they're doing what we call brand leveraging. if you're not cool enough, hang out with a person cooler. >> i like that. >> yeah, i do it all the time. you know all the other sharks on the "shark tank," they hang out with me because they want to be cool. they hang out with me. >> i feel like i'm on the "uss indianapolis" when i'm on this show. visa and master card. >> they're commission brokers. we're all broke these days. putting it on our cards and before you know it, it's 30%. only drug dealers make better margins than that. >> i wasn't familiar with that activity.

here's one i genuinely think is a huge company but seemed to flub at the beginning but is making a comeback, fb. >> fb. those guys. facebook. one of the most recognized brands in the world. everybody sees it every day. but it's starting to decline in certain areas. listen, technology gets old. but those are my cousins. i'll tell you why. because i own the fb. see, fubu i established -- i own the mark in clothing. >> they've got to get together with you. >> it's a billion-dollar business. think about this. forget the money that will be generated from it. but think about blankets with friends love to cuddle. you come hope and -- home and all these types of things. i am willing to give almost all of the proceeds we'll make out of it, why don't we start to fund high school programs for kids and technology. >> has he called you on this? >> not yet. but you know what, why don't we really become friends to america and fund new technology for new entrepreneurs. let me put out this brand, do a billion dollars, $2 billion a

year in business and put it back into the public's hands. >> i'm just going to tell people. i know -- >> facebook jacket. >> i'm going to say this pointblank. if anyone knew how charitable this man is -- i don't want to embarrass him. but i can tell you personally, there isn't anyone who cares more about education and giving to education than this man. all right. >> keep calm, i own the mark. keep calm, shareholders, i got you. >> daymond john, founder and ceo of fub,u, brand expert and all-around great guy. >> daymondjohnacademy.com. thank you for supporting us. ♪ you know my heart burns for you... ♪ i'm up next, but now i'm singing the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is! with the spark cash card from capital one... boris earns unlimited rewards for his small business. can i get the smith contract, please?

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road-killed, maybe we should buy it. that sums up retail. stocks that were last are now first. take ross stores. had a couple of tough months. everyone buried the darn thing, even though it's a terrific regional national retailer and just the right price point for this economy. many analysts deserted at the bottom and then ross posted a a monthly number than feared today. but if you want to know which stock really fits the not-as-bad-as-we-feared metric, which at times is more important than the better than earnings, better than expected earnings, why don't you consider the curious case of bed, bath and beyond, three bs and a y. a company that has missed and missed and missed again. even as it has a terrific balance sheet. an immense buy back in seasoned management. company has a clear growth path of 1,000 stores and room for more. made fine acquisitions and

working to capitalize off of them. those quarters. and they have analyst after analyst blasting and cutting numbers. but the real crescendo 20 points from the high. what happens, stock starts percolating and earlier today explodes higher, rally to go $68.30. why did bed bath rally? the company reported it wasn't as weak as it feared. even as results caused analysts to trim their numbers, the ticket size actually increased what you paid for at the register. a sign that consumers started to open their wallet. and despite aggressive couponing, the company is still on target for long-term growth. that wasn't enough to stop the stock from backsliding. the way i see it, you and i have a chance to ring the register at $68.30 and then bed bath pulls back to 64 and you can buy it all over again. more important, the wrap about this company is it's about to beat amazon. i'll tell you something interesting. i am not hearing that wrap anymore for the red-hot best buy. and i didn't hear it for bed

bath today either. i think that at a time when stocks like general mills and eli lilly keep roaring ahead and ahead, there is a drive to find new names to find stocks left behind. but aren't doing as badly as feared, and start buying them. that fits ross stores and more importantly, fits bed, bath and beyond to a t. one more thought. if bed bath doesn't go higher and the cash flow keeps gushing, this is a natural for a private equity buyout. the company isn't keeping pace with the retail growth stores. why? i've got to tell you, if i were them i would say enough of this. enough of the public markets. i'll go private. let's get bed, bath and beyond a chance to reformulate and approach the market in a more bountiful and forgiving time. something to think about if this stock ever goes back to the depressed levels where it was hated by the analysts and became a pinata for short-sellers everywhere. not there yet. down a couple bucks. buy, buy, buy. stick with cramer.

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