are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your doctor if humira can work for you. this is humira at work. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. 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 you but educate you so call me on 1-800-cnbc. way too many people are relying

on fed governors, labor numbers and months-old surveys to make their investment decisions. i get that. they allow the media to say the dow climbed 52 points, s&p gained, nasdaq advanced .16% because of some piece of highly publicized data that rarely has anything to do with the action. it satisfies everybody, except of course for the viewers and readers who have no idea how there is a linkage or why that matters, although this was the 19th straight tuesday that the market was up. me? cramer? cramer don't play that game. i don't sit here and fret about the fed's next move. oh, man. or the big picture indicators everyone else is talking about. why? because i rely on cold, hard cash and the businesses that generate it. money talks, fed governors and stats walk. that's my philosophy. and whose money am i talking about? how about all the money home depot made when reporting its incredible quarter this morning. it's important to point out right at the top that home depot and its ceo, frank blake, are

both unique in that they are the domnant housing related retailer and one of the best ceos. so as the despot as like to call it, because it's the king of the home, reports a total blowout number, we can always say, hey, you know what, that's because nobody executes it like this orange giant. but that's not what i want to discuss. i always say read the conference calls because they determine what's really happening, and in the case of home depot you don't get what's happening at the despot. you get what's happening in america, because the business of home depot is america's business. first home depot gives you the state of the state, rather amazing. posted a comparable store growth figure meaning the stores in this country that did much better than last year at this time, which is a princely sum. more important, where these numbers are coming from, notably astonishing double digit growth in california. never forget that california is a fifth of this great country.

in fact, california, florida, arizona and now even vegas -- vegas, nevada. that had been a hideous black hole. >> the house of pain. >> are all coming back strong. >> house of pleasure. >> second, while the consumer had been the driving force in the comeback taking the stock from 28 in 2011 to $78.71, this was the first time that the despot said that the professional customer outpaced the growth rate for the consumer segment. the professional. for five years now, the pro customers underperformed the consumer. people, this is a huge shift. i've been waiting for this shift, because it shows you -- and at last, the next leg of the housing recovery, the nascent housing recovery, i may add, is about to begin. that is fabulous news because it implies that finally the small businesses involved in housing are coming back. ben bernanke, did you hear that? did you read this call? please do it tonight. i know you watch the show. all right, well, maybe you watch the show. i don't know, anyway. this means hiring is getting stronger and employment, better

times to come. it gets even better. as blake says, and i quote, the u.s. macro data on housing continue to improve. private fixed residential investment, as a percentage of gdp picked up for the sixth consecutive quarter, 2.7%. why? because of, and i quote again, increasing household formation, more people having kids, more people moving out of their moms and dads. price appreciation and higher housing turnover. sound good? well, get this. it's going to get better. blake says the credit availability is still tight. still tight to get credit. approval ratings for credit cards are declining. customers are coming in from the sidelines, didn't have the fico scores. you need a 710 to get that credit card, and that means as things get better there's still plenty of demand, pent-up demand out there, and the brilliant chief financial officer pointed out that customers are still cautious with credit. again, that's going to get better over time, because as tomet told us, those with negative equity in their homes,

underwater in their mortgages, they spend -- i thought this was amazing, they spend $1,000 a year on their residence, but those who have 100% positive equity, not underwater, do you know they spend three times that? can you imagine how much spending awaits us as our housing prices rebound? now we have our macro, which means more than the gibberish, jibber jabger and federal reserve governors. maybe they ought to take a permanent vacation. home depot is a repository. boy, is it starting to get better. to me it sounds like the early innings of the recovery. and those who think it's a bubble, already run, go read the call! it isn't just the macro that i care about, because we're trying to make a little moolah on "mad money." home depot's conference call is a treasure trove of investment ideas. first, over and over in this call, management stressed that the biggest ticket items, appliances, are selling extraordinarily well, and that means whr, whirlpool, for sure. the stock has had a run, but, well, you just buy this thing on

a pullback or, hey, general electric, i know it doesn't necessarily move the needle, but stay tuned. then we got a monster call out for moen and delta faucets. why don't we go out and buy some fortune brands and masco? i know they have run. masco got a double shoutout, came up especially strong in this quarter. home depot also specifically called out l.e.d. light bulbs for showing, i quote, strong results. that's cree. cree sells direct to home depot while the rest of the business is done through middle men under pressure to stop selling cree's products because of phillips. kitchen, plumbing, decor, electrical, all outperforming the average comparable store game. so were tools. do you mind if we buy some stanley black & decker, as swk is the dominant player?

if you stick around, i'll tell you why it's a positive, and i've got to tell you, my charitable trust, come on that would be sitting there. you know what else did well? how about plywood and gypsum board? know what that says to me? i know lpx had a big run. don't sell them. do not ring the register. also, throughout the call we got multiple nods to the strength in lumber and mill work. now, i hate, hate, hate to stray from the friendly confines of home depot. i do feel better about telling you, though, about cramer fave lumber liquidators, ll. buy it if it goes on one of its periodic swoons. what a horse that's been. now that we know what's in store, how about the store itself? what can i say? if we're just scratching the surface of the professional builder and contractor, and in quarter one of outperformance by the small business builders after six years of a downturn, i think all these projections of one million homes being built are going to be a prelude to a

housing boom, not inflated, but real based on people saving up for a down payment and then building places that retain their value. as home prices stabilize from a return to the historic 2 to 3% annual increase in pricing, we will have triple what they're spending in their home, maybe more as fico score testing eases and banks become more willing to lend.. you still have to own hd. what else? how about the fact that home depot bought $2.1 billion or approximately 27.2 million shares of its stocks this quarter. you know what that suggests to me? it's reason to be a buyer of home depot yourself, especially with a downdraft based on things people are worried about. in the end, here's what i say. you know what, they -- these guys are not making nearly as much money now as i think they ultimately can. so here's the bottom line. in home depot's facts, figures and analysis, we trust. and those point to the beginning of a housing boom and a business

that punches way above its weight in the u.s. economy. people ask me if the market is going to stay hot. i say, listen to home depot. i know frank blake didn't say it. but it is, indeed, true that the business of home depot is america's business. if that's the case, i want to invest in america through the aisles of the company, we on "mad money" lovingly call home despot, because it is indeed the czar of good fortune. chris in tennessee, please. chris! >> caller: jim cramer, thank you. thank you. listen, thank you for all that you do. we appreciate it so very much. i wanted to ask you -- listen, your information about the market is spot-on. >> thank you. >> caller: you're welcome. i wanted to ask you, i've heard some talk about fast food companies, possible weakness there, but i'm looking at a six-month chart of wendy's company. and to me, it looks that -- that chart looks good. is there a way that wendy's can go higher?

>> there is, but if wendy's goes higher, mcdonald's to 110, panera through 200, chipotle, 400. all those things occur if wendy's is good, because that's a rising tide. that's a virtual norwegian cruise line of food stocks. all right, anyway, home depot's numbers are hammering the point home. i've got a sam cook version of this hammer. i'm not just peter, paul and mary. the numbers point to an american housing boom, and if that's the case, invest in america, invest in home depot. "mad money" will be right back. coming up, dashing debut? from the cloud to the foundations of the housing recovery, two new stocks are expected to hit the street this week. cramer's giving you a heads-up on whether they could be worth a look before they hit the ticker in know your ipo. and later, the whole package?

organic grocer whole foods has had quite a month. can its commitment to quality carry the stock higher, or is the story no longer fresh? find out in cramer's exclusive. plus, auction block. online retailer ebay is trading near its all-time highs, but should you still buy it now, or will this merchandise fail to catch a bid? don't miss cramer's breakdown when he goes "off the charts." all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question, tweet cramer, #madtweets. send an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

[ male announcer ] the day building a play set begins with a surprise twinge of back pain... and a choice. take up to 4 advil in a day or 2 aleve for all day relief. [ male announcer ] that's handy. ♪ do you want the long or the short answer? long i guess. chevy is having a great-deal- on-the-2013-silverado- but-you-better-hurry- because-we-don't-want-to-see- a-grown-man-cry-spectacular! what's the short answer? nice. [ male announcer ] the chevy memorial day sale. during the chevy memorial day sale, current chevy owners trade up to this 2013 chevy silverado all-star edition with a total value of $9,250. plus get america's best pickup coverage including 2 years of scheduled maintenance. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age.

♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ you get 5% back, on everything. everything. everything. everything. everything? [ all ] everything? everything. [ male announcer ] get free shipping and 5% back

we've got a red-hot ipo market here. as of past friday, may has been the busiest month for ipos in

the united states since 2007. and we still have eight more trading days to go before the month ends. the best thing about these deals, not that they're doing so many of them. it's that wall street is practically giving money away with these ipos in order to entice people back to the market. the renaissance ipo index up 18% for the year. you might think people would not need any enticing to come back to stocks, given that the averages seem to make a record high almost every day. but the investment banks who manage these deals recognize that stocks as an asset class are indeed tarnished. and because they want commissions, they try to generate interest in stocks by underpricing these ipos, technically giving the people who get in on these deals what i call free money. take tableau software. this deal was priced at 31 bucks, what you paid if you put in for the stock with your ipo with a broker and got it. but when tableau started trading, opened at $47, giving

anyone who got in an instant 51% gain. and that wasn't the end, as tableau ran up to $53 and change. salesforce.com got more of it. this one is a comer. and while tableau's initial spike was bigger than most, because the manager is goldman sachs and morgan stanley made this one tight as a drum, didn't distribute a lot of stocks, none to hedge funds that i know of, this kind of massive move for new and public stocks has become standard in environment. that's why tonight i'm going to highlight two upcoming ipos i need you to keep on your radar screen, especially since they're slated for tomorrow night, start trading on thursday morning. which means if you like what i have to say about these companies and you like what you see when you do your homework, there is still some time left to pick up the phone, call a broker tomorrow morning and ask to get in on 100 shares of these deals. yeah, i'm talking about channel adviser, which is a cloud-based enterprise software play. talk about cloud, wow. and then ply gem, which is a housing play, makes exteriors for residential construction.

what does enterprise software have to do with home building? simple. two areas where we've had smoking hot ipos lately. the average enterprise software ipo including last friday's software deal, as well as marketo, rally software and model n, among other deals, is up more than 43% for the year. holy cow. almost all these gains coming from the ipo's first day pop. the housing-related ipos like realogy and william lyon homes haven't been quite as hot. they have only spiked an average of 9.9%, but tend to keep percolating upward. these stocks have -- look, they've got follow-through. on average, the housing plays are up 18% year to date. so we've got both software doing well and housing doing well. so why don't we take a closer look at these two deals coming up later this week. first this channel adviser will trade under the symbol e-com, the company is a software as a service play, salesforce.com.

that's a buzz word. and their software enables clients to sell merchandise across multiple online channels. more buzz words. including amazon and ebay as well as search engines where people comparison shop like google, microsoft's bing. and they're also working with facebook once they develop their own e-commerce offering. gives customers a single integrated user interface. lets them manage their product listings inventory, availability, pricing, search terms and data analytics across all different online sales. is this hot or what? in short, channel adviser gives you a one-stop-shop technology platform, allows you to manage sales across all the websites that matter. it's 360 come true. company sells their software to 27% of the 500 largest internet retailers in the u.s. and have nearly 2,000 total customers. e-commerce is a rapidly growing area but the market for this kind of software is highly fragmented, which gives channel adviser a lot of room to expand. company makes its money from the fees it charges customers who

subscribe to the software as a service platform. but there is also a volume-based component. the more merchandise channel adviser's platform hopes to sell the more money they rake in. i like that model. channel adviser has been breaking even of late but the company is investing heavily so they could operate at a loss for some time after coming public. but in this case the lack of earnings doesn't bother me. i like it when companies invest in growth. the important thing here is that channel adviser's strategy is working. the company has, oh boy, the holy grail. it's got accelerated revenue growth. arg! something that wall street loves and will indeed pay up for, because arg is rare and it means the business is expanding at a faster price than it used to. we don't want dividends, we want arg. how much should it be worth? some people call it a sliver, 5.8 million shares. at the midpoint of the range gives this company a market cap of 288 million, way too small. channel adviser can grow at 22% clip, something they should be able to do easily.

and at the midpoint this stock would trade at 4.4 times sales. when you look at other companies in the same space, demand, target response, sps commerce, they trade roughly 5.7 times sales. i know nosebleed, but listen up. if we assume that channel adviser deserves to trade merely in line with its peers, this stock could be worth $16.70, 20% higher than the high end of the price range but channel adviser is accelerating revenue growth so probably deserves to trade at a premium to its peers. if you can't get shares in the ipo, because i know it's goldman sachs. i'm sure they'll keep things tight, i would be willing to pay up to 16, maybe even 17 for this one in the after market. but it's a tiny stock so market orders -- no market orders. if it runs up too much, pass! how about this ply gem, makes exteriors, everything from vinyl siding to pvc trim, designer accents. and the stock is trading under the symbol p-gem.

we know the housing market is on fire. the expectations will build a million new homes for 2013, much higher in 2014. 2015, 1.5 million. the market leader in vinyl siding, plans to sell at a price range range of $18 to $20. i think you might be able to get stock on this far more easily on on channel adviser or tableau. trading at a premium to stocks like fortune brands, masco, mohawk industries, and home depot said all parts of the housing market are strong. even as it is levered more to housing starts and renovation. because it is a play, it will grow at a faster pace than its peers, at least the next two or three years. and that means i can justify a premium price. however, again, if you can't get in on the ipo and can't get the stock for $22 or less in the after market, all right, we missed it. we'll find another. here's the bottom line. ipos have been on fire this year, especially the cloud-based

software names and housing-related names. that's why i think it's worth it to try to get in on the upcoming channel adviser and ply gem deals. if you want in, you better do your homework fast, call your broker tomorrow morning, and don't forget, if you can't get ply gem for 22, take a pass. rick in illinois. rick! >> caller: hi, jim, how is it going? >> real good. how about you, partner? >> caller: pretty good. listen, i'm an avid watcher of the show, and at your suggestion, i went on the hunt for high yield and found some new castle. and i've owned it since last july. sold half of it when it traded at 11.5. now it's done a spin-off into health care and residential. and i want to know what you think, if i should hold both or just one of them. >> hold both. doing work on this. man, our viewers are so darn smart! it is starting to get to me! i am not -- you are ahead of me. i've heard this situation, i said, i must feature in the show, you have my blessing to own both. i think it's a pretty interesting situation. we are in a red-hot, sizzling

market. i don't want you to get burned but i do want you to get some channel adviser and ply gem. homework, call the broker, limit orders. i think it works. after the break, i'll try to make you more money. coming up, the whole package? organic grocer whole foods has had quite a month, rising close to 20% in may alone. can its commitment to quality carry the stock higher, or is the story no longer fresh? find out in cramer's exclusive.

one of the reasons this market has been so on fire lately is because when companies make mistakes or disappoint wall street, they have shown a remarkable ability to rapidly change course. case in point, whole foods, 349 locations, 40 states, three countries. you know we're big believers in the organic theme on "mad money." people in this country have become conscious of what they're eating. they want healthy, natural food that's good for you and good-tasting. that's what whole foods provides. $97 going into the quarter and some on wall street were disappointed with the results which sent whole foods tumbling. fast forward to two weeks ago, may 7th, whole foods' most recent quarter. this time they blew away the expectations, delivering a three cent earnings beat, on revenues

that rose 14% year other year. more important, whole foods showed same-store sales acceleration. the manager says they're going to get more aggressive about opening new stores, plus, geez, since the quarter things have gotten even better. in response, whole foods jumped more than $9 from $92.80 to $102 and it's been roaring ever since, stock hitting a brand-new new high at $105 today. stock now up 15% since we last spoke with the ceo in december. it's given us a whopping 64% return with reinvested dividends since we spoke in december of 2011. can whole foods keep it up? let's check in with walter robb, co-ceo of whole foods, find out more about what his company is doing and where it is headed. mr. robb, welcome back to "mad money." >> how are you doing, jim? >> real good, walter. i've got to tell you, there were so many things went right with this quarter, i'm struck with trying to figure out, i shouldn't just figure out the mechanics. you did some things, supply chain, little things that added up to major changes in gross margin. weren't these things whole foods

was doing right all the time? >> i think we're just continuing to work on the leverage, the occupancy leverage and our cost of goods through our shrink control and days on hand with inventory. a lot of basic retail fundamentals, and that together with the accelerating sales helped to produce a nice result. >> well, walter, something happened. three weeks ago i went over to brooklyn, went to the gowanus canal, went to look at the site. i think that your brooklyn store looks like it's got the greatest location. then i look at your map. nothing in brooklyn. nothing in queens. you say 1,000 stores. i say you could put 1,200 in. you don't have many -- you have ten states that don't even have whole foods. is 1,000 possibly conservative? >> i have to say, i feel right now as i sit here with you today, i think the opportunity is really truly open-ended. we've got 12 stores alone in the q4. that's one store every week in the back half of the year. and we've got almost three years worth of growth signed up in the pipeline right now, so i feel pretty good about the opportunity being pretty open-ended for whole foods right now. >> i went up to the brookline

store recently and i was struck by johnnie's food master, you too. 21 stores in a very tight area in massachusetts and in the conference call you indicated there is no cannibalization. is there something that people want to go to whole foods as their supermarket and the other places just don't count as supermarkets anymore? >> well, i think you do see a big shift in the food marketplace, but i think for whole foods, the opportunity around the fresh, healthy foods and healthy lifestyle continues to grow. it's open-ended as people continue to make that a priority in their life and i think we're the leader in that space and will continue to take steps necessary to earn that trust and authenticity. >> i'm seeing blueberries on sale, organic chicken on sale. i see three wishes wine for three bucks, a $20 bottle of wine. is there also a consciousness that says, you know what, we can be better but also much less expensive than the other guy? >> that's right. i mean, we talked a lot about the value and differentiation. value and differentiation over

the last year. value in three ways. one, continue to bring a range of choices in every category for our customer. number two, continue to dial up the promotions across the store and number three, continue to move our competitive pricing forward which we have continued to do. we have always been great in the center store, i think, but we have continued to improve on the perishables, where the quality difference is the greatest. so i think we just continue value and differentiation. we have the leading quality standards in the supermarket industry, and you combine that with more aggressive efforts around value and choices for our customers, that's a great formula. >> let's go back to value. i've got -- i know you can't see it, but i've got one of your 365 -- the big bag of charcoal. i'm a kingsford guy. but i imagine that your charcoal is cheaper for you to make and better than kingsford for a lot of people. what is the difference between your private label and some of the expensive labels that we're used to? >> well, again, the difference is the quality standards. every single product we sell under our label meets the same exacting high-quality standards for every product in whole foods market.

and by the way, your timing on that charcoal is great, because memorial day is coming up this weekend, right? >> you bet. that's what made me think about it, and i grill every memorial day. something occurs to me. i look at the callout of the south bend store. i am thinking about the store next door to my daughter in tulane, and i am wondering whether you don't have a situation developing where you can put a value store next to every major college in this country where natural foods is the order of the day, and they don't want regular supermarkets. >> i think, again, we look at -- we opened our 350th store last friday in danbury, connecticut. blew the doors off. might not have thought we could do a whole foods three or four years ago. that's why i say as i sit here right now, i just feel like the opportunity for our company is open-ended. and you know, we've got a great team, having a lot of fun, a lot of success right now. look at the quality, results in the q up and down on the strength of the balance sheet. i think we're very well positioned to take advantage of the opportunity that's there for

us right now. >> now, a lot of people claim things were organic. i know you're at the forefront of gmo. how do you deal with what i call the faux organic issue out there? >> you know, you don't take note of all developments in the marketplace. but again, you know, a lot of these discussions about organic or natural, they're not really new. so continue to focus on building long-term value for shareholders and continue to take decisions, make decisions that reinforce people's confidence and trust in whole foods market. one example is the gmo thing you referenced. we made announced decision about a month ago to declare for full transparency on gmo by 2018. that is an industry-leading decision. it's in support of our customers' right to know the information when they're shopping. and i think taking that sort of a tough decision sends a message to our customer, they can trust us and we're going to continue to be leaders in this space. >> that is the good housekeeping which is why my kids love to go to your place. now, you did something i tell people, if you like where you go, and you research it, buy the stock. and one of the things i've

always liked about whole foods, this is a name that resonates, people go, love it, buy the stock. it's something i know -- it's artifice, but something i want to applaud. you did a two for one split. and the only reason i say this -- i say this to mark benioff, a lot of people get turned off by a $100 price tag. is that a good thing or are we doing something fictional to entice people? >> well, i heard you talk about breaking the pencil when you did your broadcast. it creates a lot of excitement, because it does bring the price point down for the retail investors and feels like they can access the company and the stock. and it's, you know, generating a lot of enthusiasm amongst our team members. they feel the momentum and the excitement. so in that standpoint, even though we know it doesn't necessarily change the fundamentals, it creates a lot of enthusiasm and excitement. >> all right. i think that the healthy food trend is still in its infancy. you're really in it for a long, long time. is this -- how far along are we? i go to walmart, and i see organic there. i go to target.

i mean, it's not like you're the only game in town anymore. how far along are we? >> we're just starting. in fact, i used the analogy the other day, we used to be in the minor league baseball park. i think we've moved into the major league baseball park. i think the game has just begun. and actually, most of the other opportunities are out there, i think most of the other retailers tend to be more skin-deep. whole foods has got the widest, deepest selection of these products in 32 years of history backing it up. so i think we're into -- i think we're in the first inning of a whole new chapter about fresh, healthy foods in the world. when you look at the basic situation with health care in this country, and the costs associated with that, and the opportunity for people to take charge of health in their lives, i think you come back around to the role for fresh, healthy foods and whole foods market is the leader and will continue to do so. >> walter robb, got to tell you, after the quarter people said is it over, up ten. and i said no, no, this is the reacceleration you've been looking for. get back in. walter robb, co-ceo of whole foods market. thank you sir, for coming on the show. >> thanks for having us, jim. appreciate it. happy holiday to you. >> same to you.

all right, guys, the story, what can i say? you heard it. first inning. i mean, this is from someone who knows. and i've got to tell you, it is fun to shop, and it is fun to buy the stock. two for one split coming up. what's not to like? "mad money" is back.

wait a second. before we get to the lightning round, i got a very special announcement to make. gather the kids around, listen up. our special show, "mad money," a family affair, is back by popular demand. just around the corner. so if you, like me, believe the family that invests together stays together, be sure you log on to madmoney.cnbc.com to get tickets for you and your family to be a part of our studio audience on june 13th. we would love to have you here in person. and now it is time for the "lightning round" on cramer's "mad money." what is that about? rapid-fire calls, one after another. you say name of the stock, and my staff plays this sound, and then the "lightning round" is over. are you ready skedaddy?

it's time for the "lightning round" on cramer's "mad money." reid in tennessee. reid. >> caller: jim, boo-yah memphis grizzly style today. >> well, it could be a tough series, but boo-yah back. >> caller: yeah. i want to thank you for you what do you for the small investor. i've got your book, "getting back to even" and fortunately i've gotten beyond even. >> that's what we want. >> caller: and you're doing a great job for small investors. and hope you continue to do it. >> thank you, reid. >> caller: i was calling about tractor supply. i bought it in january, had a nice gain. >> tsco, tractor supply, i think, goes higher. i have often kidded with my friend davis faber that tractor supply is the key to this market. but it is a great growth retailer. let's go to elizabeth in florida. elizabeth. >> caller: hey, cramer. listen, i'm calling today about an etf, eww. go mexico.

anyway, today closed at $68.75. so my question to you is this. do i hold my position, do i buy more, or do i say adios? >> it's been disappointing in part because nietro has been attacking a lot of companies in the eww. i think mexico is terrific but had to abandon it for actionalertsplus.com, my charitable trust, because he has taken on the whole index. i say stay away right now. joe in wisconsin. joe. >> caller: jim, hey, boo-yah from oshkosh. >> wow, man, i love the people in wisconsin. despite the negative publicity on @jimcramer twitter. what's up? >> caller: i'm wondering if i should get off the cheap scotch tonight for toll brothers earnings tomorrow morning. >> 18, partner. i think toll is going to be fine. if it comes down, i want you to buy more. i think it's terrific. randy in sweet home, alabama. randy. >> caller: jim, hey! hey, how about aes? >> i like that electric utility. it's spent its time in the wilderness and now it's time to get some manna from eas.

and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is sponsored by td 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.

[ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.

[ female announcer ] today cisco is connecting the internet of everything. you thought this beach couldn't get ... you thoughtnwrong. get up to 50% off memorial day hotels. final days. book now with travelocity. her long day of pick ups and drop offs. begins with arthritis pain... and a choice. take up to 6 tylenol in a day or just 2 aleve for all day relief. all aboard. ♪ i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instead of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgraded experience comes from listening to our cardholders. visa signature. your idea of what a card should be.

♪ every tuesday here on "mad money," we go off the charts. we look at the technicals, that's those pictographs of the stock's action, ask where the stock is headed. i'm always telling you i myself am not a chartist, i'm a fundamentalist. meaning i believe the best way to figure out where a stock is headed, how it's doing, the homework, conference calls, et cetera. but the truth is, if you really want to make good use of the charts, you can't look at these things separately.

you have to consider the fundamentals and technicals at the same time. that's why tonight we go off the charts with the help of bob lang, brilliant. he's the founder and senior strategist at explosiveoptions.net, as well as being my colleague at thestreet.com to look at where stocks -- where the technicals are really coming together and the fundamentals also fabulous. that's right, a convergence. i'm talking about ebay, the giant online auction site, as well as being the owner of paypal, let's you buy pretty much everything on the internet without having to repeatedly put in your credit card number and it's now also being rolled out in the real world, too. remember, lang has got a real good record with us. he helped us nail boeing and price line, i can cannot believe it, before those stocks took off. so when lang says he likes what he sees in ebay, hey, pay attention, especially because this stock owned by my charitable trust, follow along on actionalertsplus.com has been acting like a total bow wow. first of all, check out ebay's

daily chart. lang says there is a lot of noise in this picture. when you step back you can see a head and shoulders formation, one of the deadliest patterns. but you also can see a reverse head and shoulders. that's one of the most positive ones. hey, so the two cancel each other out. you can see some big gaps, as well as some erratic movements, caused by the analysts and upgrades and downgrades. when you focus on the big, important metrics in the chart, lang notes that with ebay at 55, the stock is trading above its 50 day, its 200 day average, measures its long-term trajectory, the red, okay, as well as its 50-day moving average. that's the blue. and, well, let's just say that measures the short-term trajectory, and this is at 54. this is pretty basic, but it's also critical, because there are a ton of chart-driven traders

out there and when they see a stock above these two key-moving averages, they believe the stock is going higher. a lot of it works like self fulfilling prophecy. once ebay is on a roll it will continue to be a roll. one more piece of the puzzle in the daily chart. that's the moving average convergence/divergence line, also known as the mac d at the bottom. this is a momentum indicator, which detects changes in the direction the stock is headed, often before they happen, predictive. about two weeks ago the mac d had an important bullish crossover where the black line goes above the red line and for lang that's a powerful sign that you should be buying the underlying stock. sure enough, after that happened, ebay began marching higher until the last couple days, that is. plus the mac d indicator is trending higher, ultimately, which tells lang this upward movement in ebay can be far from over. if it can break out at 57, two bucks above where it is, lang thinks ebay should have a straight shot to $60. ooh, that would be worth getting, wouldn't it? however, from lang's

perspective, the really bullish action isn't in this daily chart. it's what's happening in the weekly charts. take a look at this one. much cleaner picture of the action, also easier to read. you can see that ebay is trending upwards with a clear pattern of higher highs, okay, and higher lows. that matters too. and that's technical nirvana. after rallying like crazy in 2012, ebay has spent most of 2013 consolidating. but here it's building a base at these higher levels while it trades sideways. that's a very good thing, according to lang. you may think it's stalled but why, sideways action is exactly what ebay went through in the second half of 2011 before it exploded higher. sideways action, okay? rallying more than 20 points or a whopping 68% over the course of that year. right now lang believes that ebay is building a base for the next leg of its move. that this move is like what happened here. and lang has one more reason to believe this stock could be

getting ready for a repeat. it's the moving average convergence/divergence line again. look at this. this is very -- you've got to look closely. the beginning of 2012, the mac d made one of those bullish crossovers where the black line crosses over the red line, screaming buy signal for chart-watchers. black line over red line. that mac d signal worked like a charm. right? letting you take advantage of ebay's monster rally. and at the moment it looks to lang that the mac d is preparing to make the same bullish crossover that we saw nearly 18 months ago. this is a case where lang thinks he makes more sense to buy the stock now, rather than waiting for that crossover to happen. because once the next leg of the rally starts, who knows how fast this stock will roar? yeah, he thinks coiled spring. before the next leg of the rally can begin, lang says it needs to break out of the $57 weekly chart and then can really start moving higher. but it could take time to get there even though 57 is less than two points above where it's trading.

this is a case where patience will be rewarded. my opinion. this is one case where the technicals and the fundamentals agree. remember, ebay owns paypal which i believe is making a powerful bid to become the future of online and mobile payments. many stores are rolling out terminals where you can pay via paypal on your smartphone. so you can move from the web into the real world. although in home depot's conference call, ceo frank blake said he's open to using all forms of smartphone payment, which is why ebay got hit so hard today, got to listen to the conference calls. right now more than half of profits come from paypal growing faster than the rest of the business. rather than viewing this as a conference play, ebay has reached a point where it's more like a payment processor affiliated with an ecommerce site. 15% long-term growth rate. if ebay spun off paypal, i think it would be worth more than $50 a share to right now you're getting the rest of the company for free. here is the bottom line. technical analysis can be useful

but the charts are at their most helpful when you don't look at them in a vacuum. according to bob lang's interpretation of the charts, ebay could be ready to make a major move higher and that makes sense in light of the strength of the fundamentals, especially ebay's fabulous paypal business. yes, the stock has been stuck yes, the stock has been stuck for the moment but in lang's opinion, this is a good stuck, not a bad stuck. more like cape canaveral than the la brea tar pits. and that will be breaking out of the gravitational pull. and i agree with him. stay with cramer. ♪

♪ fly me to the moon ♪ let me play among the stars ♪ and let me see what spring is like ♪ ♪ on jupiter and mars ♪ in other words [ male announcer ] the classic is back. ♪ i love [ male announcer ] the all-new chevrolet impala. chevrolet. find new roads. ♪ you let's say you pay your guy around 2% to manage your money. that's not much you think. except it's 2% every year. does that make a difference? search "cost of financial advisors" ouch. over time it really adds up. then go to e-trade and find out how much our advice costs. spoiler alert: it's low. really? yes, really. e-trade offers investment advice and guidance from dedicated, professional financial consultants. it's guidance on your terms, not ours. that's how our system works. e-trade. less for us. more for you.

for anyone waiting patiently for the european economy to turn around, let me point out the stocks, they aren't waiting for europe to get better. that's why i say cummins, 3m and emerson electric are roaring here, big european exposure, even after the conference calls where many lamented europe. next, alcoa will go higher after real negative european chatter. i've been calling the bottom of europe ever since we saw irish bonds begin to do better and spain got out of the headlines. i'll admit, all we have so far is anecdotal evidence of a turn going back and forth with my friend kelly evans this morning on my "squawk on the street" show. strength in germany, comment from urban outfitters that europe is stabilizing. emerson did actually use the

term bottoming out which got this leg of the rally going. i'm sure we'll hear decent things about europe from salesforce.com. i think that europe is bottoming call is also one of the reasons why jpmorgan and goldman sachs have been running, they have been overly linked to europe for years, whether the ceos like it or not. what's the one to buy now, because it's done nothing? general electric. i mean, this stock, my charitable trust owns, and well, and knows, it's been a huge disappointment. that's surprising, given that ge is integral to the aerospace sector, energy sector, particularly drilling. terrific housing exposure, which we know is churning. one look at whirlpool would indicate that and home depot is almost the same. we know health care has been horrendous, a bad division. but how long can it stay horrendous? by the way, horrendous is fairly relative. it's not like the division is bleeding, just not on fire. we know ge dividend at $6.5 back from the parent company. time and again, ge's weakness has gone back to europe and europe.

this is one of the stocks where if a big institutional investor wanted exposure, he would pick up the phone and buy two million shares of ge, what's known as on the line without so much as moving the stock. this is the heaviest and most liquid stock out there with the buyback that hasn't reduced the float unlike so many other industrials. and add 10.6 billion shares. plenty for any large institution to get instant exposure to europe. at times like this the mutual funds and hedge funds thrive on liquidity. they want to come in and buy something without moving the stock higher. the slug that is general electric fits the bill perfectly. the most important thing, don't wait for ceo jeff immelt to say europe's great. listen, that's just the way it works. you cannot wait for the company to tell you things are getting better. because at that point the easy money has already been made. ge is way behind the market, as my charitable trust knows all too well. but maybe that's where the advantage lies. no one is thinking, darn it, i missed this one. in fact, many people think it will never move. but if europe is bottoming out as emerson electric says, could

be the next to rally. even with disappointers like 3m, emerson, ibm, ge is the only one left. won't be like that for long. stick with cramer.

i don't know about you, but i really like what whole foods had to say. i think that stock is going to have another leg up. just like home depot. like to say there is always a bull market somewhere, i promise to try to find it right here on "mad money." i'm jim cramer and i will see you tomorrow! all in need of cash, get a chance to plead their case. >> contestant: we put everything we had into this business. >> for fifty grand >> danielle renke: this could be a game changer >> kendra scott: woo! >> hosting each episode are successful entrepreneur kendra scott. >> there's a lot of things that are humongous red flags for me >> and legendary new york news man and business anchor pat kiernan. >> pat kiernan: a small business needs to have a focus and i'm not sure that you do. >> plus guest experts that go on location to expose what's really going on with each company. >> larry winget: that half a truth was enough to convict you right there. but here the crowd rules. >> audience member: as a woman, i'm honestly a little offended by your compan