cycle. >> stephanie link? >> rebecca patterson? >> look for europe catch-up trade this summer. >> erin gibbs? >> pub, sell. >> karen finerman? >> realogy calls. >> thank you, ladies. so great to have you with us. great for you guys with us. 5:00 p.m. for more fast. "mad money" with jim cramer starts now. >> 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. i'm just trying to save you some money. my job is not just to entertain you but educate you so call me at 1-800-743-cnbc. it's a two-camped market. despite these two really nice

tents, nobody likes a two-camp market, especially when both camps agree that it's time to set. a major reason why this was so awful. s&p 4.5%. nasdaq climbed 5.8%. what do i mean when i say that this is a two-camped market? well, there's one group of people who are hoping for weaker data. keep the federal reserve from closing the noose on equities. this is an extremist camp in this one. and stocks hang in the balance every time anyone on the fed, anywhere, any one of these fed chiefs says a thing. these were the people who reacted with gloom when fed chief ben bernanke chose to speak about real life rather than tapering when he gave the commencement address at princeton this weekend. of course, others are ultra

hyper cape-caper watchers, the paranoid kind. and they believe that the princeton speech was a benign, nontightening signal by quoting forrest gump in the chocolate box, you don't know what you're going to get. others are addicted to watching, viewed it as code for you never know when he's going to stop tapering or start it. but it's entirely possible that the guy merely meant what he said. doesn't matter. other tapering fanatics deep in here, deep in the camp, what are they saying? they might have thought that bernanke was afraid of godiva chocolates which is code for the rich are doing fine so the fed must keep pumping money in the system to stop the economy from collapsing. what can i say? people are so afraid of tapering they hang on every fed word. looking for a clue. even as they're totally

clueless. then there is the second camp, the one that says let's find something to buy, they're the seekers. they're saying, let's get over it. let's have a real economy where the business starts to do better and we can buy the companies that do well rather than those that look allot like bonds. this is a bit about what ben bernanke might do or not do. members believe that real management companies can determine their own fate. those who belong to this cohort don't like to hide. they're not hiding in coca-cola oracle log. they can't believe they found something to like at southern company or con ed or duke energy. all of them are camping here. they don't consider hiding as investing. they seek companies that are cheap, well-run and doing better than expected, because the ceo is doing a fabulous job is the secret to make money. and they're tired of hearing their efforts to pick individual stocks do nothing.

in part because management needs to figure out ways to make more money with less. this second camp of seekers believes the u.s. is getting strong, unlike the -- they want earnings. they think china might get back on the grid, cheered by sales from ford and gm. classic seeker stories. they know they can't happen unless we get higher interest rates, driving -- when rates go higher, bank stocks go higher. at the same time, they don't think that higher rates will kill the housing market. because the demand for homes is so voracious -- in fact, this is built to meet demand. for the longest time, these two groups peacefully coexisted with each other. it was a great moment for the stock market. i mean, business was -- wasn't good enough to worry but it was

good enough to propel the housi housing related stocks where seekers were rewarded. interest rates so low that stocks with 3% yields not 4% or 5%, and terrific return versus bonds which after taxes adjusting for inflation paid you next to nothing. delicious bond market equivalents you can find in this tent. at the same time, many of the 3% yielders went to 2% because of price appreciation on yields rose to 2%. that's when worlds collide. moments where investors hiding in bond market equivalent stocks are frantically trying -- [ inaudible ] after all, if these stocks fell 8 to 10%, as some did, that sure wims out the 2.75% yield which people own these for. these were -- owning these stocks for safety, for heaven's sake, but they stayed until it became dangerous. meanwhile, the other camp

investment businesses, that can actually grow, they have been with the prebond selloff environments. as long as things get better down the road, they can enjoy the prospect of improving. they -- companies getting better, again, like the housing stocks that worry. they were worried about what the fed -- interest rates go higher, because it wouldn't go higher. but now those people are suddenly worried that out of nowhere in just ten days' time mortgage rates have moved up so much that the companies they thought were improving now have taken a step back. why don't we use the example of toll brothers, a classic seeker story, the big home builder, not that long ago, rallied from 30.37 in anticipation of what could turn out to be a terrific quarter. right on top of that quarter, rates started to rise, and these formerly happy campers in the seeker tent are now concerned the toll has peaked and has gone

from 37 to 32 in the same quarter. the same dastardly play has been performed in multiple theatres from the airlines to the techs to, and there is a fear it could be at risk. when you get a earnings report from dollar general, scratching their heads, thinking we're too bullish. they want more data to see if interest rates rise. if the rise has hurt the consumer, they're afraid they got what they wished for, a better economy. because the economy is getting better, interest rates may increase more and businesses could be hurt by that strength. the people in this tent, oh, they're struggling. you know why? they now fear both a strong employment number on friday and a weak employment number, wow! let's hope this tent is bullet-proof. all this sturm and drank is occurring where everybody in both camps is making a ton of money, none of the investors could be upset unless they give back gains. neither camp has conviction. both camps can't be reassured,

when federal officials are saying things that make everybody miserable, as i predicted would happen in friday's game plan. so everyone is selling. they are selling the stocks that do well when there is very little growth. and they're selling the stocks that do well if we're going to get more growth. they are simply saying, the people in this tent and this tent, maybe we're wrong. maybe we're being too aggressive. maybe we just ring the register and buy stocks lower and later. hey, nobody can judge the sellers harshly. they don't like a market that can go up 100 points and down 200 points. that volatility stuff, that vicks zon, that's not what they are in for. now hope from both karchs that once stocks come down their worries can be washed away. the hiders, you know what the hiders will do? they'll go back to hiding. hiding in the stocks that yield 4 to 5% after they come down. those yields will make these fed-watchers plenty cozy. those who want the a stronger economy and don't fear slightly higher interest rates want to see if this small bump up in

mortgage rates really does hurt business. they want to know if the strength in our economy is measured by employment growth something we find out about in friday's job report is being -- they're still seeking, once prices are lower. so here's the bottom line. ten days ago, you had two camps that seemed darn happy with the present and future. now two camps in panic mode and they can't be appeaseded by these current prices that are too high. that's why you're getting this selloff. and right now there's just not enough data to satisfy either the hiders in the capital preservation tent or the seekers of capital appreciation in the seeker tent. sometimes you can't please everybody. right now, you can't please anybody! let's go to nate virginia. nate! >> hey, a big rva boo-yah to you, jim. >> nice. hey, i was wondering is zynga a sell or a hold after cutting 18% of their work force yesterday? >> see, i'm talking about

companies like bristol-myers and general mills and you bring me zynga? let's be careful. we don't need speculation. we're struggling with bedrock companies. let's go to doug in new york. >> caller: boo-yah from the adirondacks. >> i'm a 46er, partner. i like to camp! >> caller: that a boy. you're going the right place, then. the question is specific, jim. [ inaudible ] bill ackman, selling some shares. what are your thoughts on this one. >> i don't need cam pack when i've got union pack. i'm not a buyer or selling. union pacific -- we just heard from the ceo the other day. they are firing on every single cylind cylinder, except for coal. and i think coal is coming back when the inventory is diminished. all right, kum ba yah, my lord. i'm doing some camping here. that's never been my market

mantra. there are two kind to this market, the hiders and the seekers. right now they're both selling. be right back. coming up, home sweet home. buyers are signing on the dotted line at the highest rate in three years. tonight, cramer talks with a company helping to make the american dream more of a reality. to find out if you can still move into this trend. and later, through the fog? shares of crowd computing players salesforce.com are taking a beating today after announcing its multibillion dollar deal for digital marketer, exact target. but could this buy lead to brighter days? cramer has the ceo on the hot seat, just ahead. plus, emergency medicine? health care reform is moving nearly 30 million people into hospitals and clinics nationwide. leaving the industry with a big

prescription for more doctors and nurses. can work force wonder kid amn health care help you play the trend? stick around to find out. 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 jim an e-mail to "mad money"@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything.

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on a day like today, you need something you can fall back on, secure the knowledge that it will rebound harder and faster than the rest of the market. that's why we have these themes on the show. always talk about the billing picture trends that aren't going away any time soon. lots of ways to play them. and time to pull back on the housing recovery. one of the strongest themes out there. and it's still in its early stages. we have way too few homes in this country and we're not building enough to keep up with

demand. hence why i'm such a huge fan of the largest private sector mortgage insurer in america, which just presented the big kdw mortgage finance conference today, not enough to overcome the gravitational pull lower. they're required to pay for mortgage insurers, which pays back the bank in case the borrower defaults. and the banks are only lending to the most credit worthy people out there right now, certainly high fico scores, it's unlikely they -- as time goes on, more risky insurance policies from before the financial crisis were aloft. half the company's business was originated in 2009 or later and that's only going higher, of course. plus here's my favorite kicker. the biggest player in the mortgage insurance market is the federal housing authority and they're a government agency that decided to dramatically ratchet down their exposure, meaning facing less competition even as the market for mortgage insurers is heating up. rating is getting 60% gains, up 21% since march 14th.

recently the stock pulled back with the rest of the market. i think this could be a terrific entry point. let's check in with sa ibrahim in philadelphia to hear more about where his company is headed. welcome back to "mad money." >> nice to see you, jim. >> the worry right now is that because interest rates have backed up a little bit this mortgage market is going to cool. you are in the thick of it. you know better. you get a daily read, that's what's happening? >> well, if you look at the historical terms, the rates were extremely low, and i don't think a slight increase in rates is likely to dampen the market. there is still demand. and the point you made earlier is what i hear from realtors. there is really an inventory shortage in key markets. >> right. and people should know that radian goes best not in a re-fi environment but in a natural new home market environment that's vibrant and that's what we're getting. >> absolutely. our product is geared to first time home buyers who typically struggle for down payment. so we actually make it possible

for first time home buyers to buy mortgages. and jim, i'm glad to tell you that may was a record month for us. we did 4$4.6 billion in new insurance written. and what's more, fico went up more so exciting time for us in terms of volume. >> and what's going on in terms of -- you do have some interesting commentary about what happens to some of these older mortgages that eventually -- you -- the reserves can still go up on some of these, right? >> well, the way the reserve process works is as the mortgage ages, we typically assign more reserves to it. we are seeing a lot of mortgages age and not going into foreclosure, which raises the question as to whether some of them will ever go into foreclosure. something has to be wrong with them. >> that's what i was leaning toward. if we see these numbers that say 10% housing increase, case-shiller, what that really says is that radian may not have to pay off on loans they thought they had to pay off because the housing may be going up in value. >> and more importantly, what that would mean is, the

inventory, the legacy inventory -- legacy loans still performing are going to be less likely to go into default because borrowers have more options as the home prices rise. >> why not keep paying? >> yes. >> your home is going up in value. don't walk away from a home going up in value. great radian strong point. who things people are talking about, one not giving you enough credit. first the fha pulling back, a lot of talk about fannie mae and freddie mac and whether the government is going to restrict them or phase them out. in the latter case, isn't that radian's gigantic opportunity? >> under certain scenarios there, has been this promo -- proposal on the news. and that's a great scenario for us. basically, what that means is that the government wants to guarantee a catastrophic level from an entity which will be a success to fannie and freddie, will play a utility type role and the government will guarantee catastrophic risk, leaving more room for private capital players like us, and very specifically, the mortgage

insurance players will have more room to play in a larger market to play in. >> okay, now, if you took your book of business say next year at this time, how much of it would be -- let's just call it the bad stuff, and what percentage would be the good stuff. >> we are already down to 50/50. and at the rate at which we are writing, not only are we the largest mortgage insurance player in terms of market share today, but at these trends prevail in terms of our differential between us and the other mortgage insurance players, by sometime next year, we could be the largest mortgage insurance player in terms of the size. and i think that will continue to change the mix. all we've got to do is factor in some runnouts, and even using our current rates, that would be way better than 50/50 we are at today. >> what kind of hurry is the fha in? do they fear the put steps, do they know they've got to cut back? >> our biggest ally. they understand what needs to be done. >> well, you don't want to write everybody's mortgage, right? >> no, no.

so the only thing is, they understand that there is a room to retreat. the biggest thing, when you look at the overlap between the business they do and we do, historically, just to be a narrow overlap, but got pretty large. and now we are reclaiming the ground we're in. we don't want to go all the way there, because there are some loans we did in the past, we don't want to touch. >> great. we don't want you to touch them either. that is s.a. ibrahim, ceo of radian. now you see why i'm excited. the whole market is high. the whole market may be coming in, but think about stocks like radian when they do. "mad money" is back after the break. coming up, through the fog? shares of cloud computing player, salesforce.com, are taking a beating today, after announcing its multibillion dollar deal for digital marketer, exact target. but could this buy lead to brighter days? cramer has the ceo on the hot seat, just ahead. and later, emergency medicine? health care reform is moving nearly 30 million people into

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mark benioff, ceo of salesforce.com came on "mad money" after his company reported a quarter that was good, not good enough to convince the stock from getting hit, but 5% on the news as people on wall street felt sales force might be running out of room to grow. benny off said that salesforce.com which is a huge player in the field of customer relations management, crm, getting deeper into cloud base. just this morning we find out that salesforce.com is buying exact target, a major player in online marketing with a cloud-based platform that helps companies manage e-mail, mobile and social media and new efforts. $2.5 billion, a 53% premium rate trading yesterday, in order to become the go-to company in interactive marketing. critical of the acquisition, salesforce.com paid too much -- and the stock was absolutely

hammered, $3.24, now down 24%. so let's talk to mark benioff, the visionary cofounder, chairman and ceo of salesforce.com and find out more about this deal and what comes next. mr. benioff welcome back to "mad money." >> greetings from san francisco. >> what did salesforce.com come up with that it didn't come up with itself? >> as we talked about many times, salesforce.com is focused on one thing, and that is helping our customers connect with their customers in entirely new ways. to do that, we want to be number one in crm, the category that we compete in, customer relationship management. to be number one in crm, we have to do three things. we've got to be number one in sales. we are. we've got to be number one in service. we're also that. we also is to be number one in marketing. because that perfect combination of sales, service and marketing, is how customers are going to connect in this going forward new future that we're participating in today. and that's why we're spending

$2.5 billion to fill in that third leg of the stool, which is to give us that number-one position in marketing. >> all right. well, you know i know scott dorsey, i like his work, have hired him, done work with his indianapolis-based company, and i know it just came public not that long ago and was surprised it cost $2.5 billion hard-earned dollars. are you sure you can get a return on that $500 million in revenues they can bring to the party? >> well, it's a perfect match, jim, between our company, which you know very well, and we have been on your show so many times, and exact target. sales force and exact target are partners. you can go to app exchange.com and see how salesforce.com and ex exact target are already integrated. exact target also bought a great new company called pardot, already integrated, one-click integration. the real power of exact target and sales force is exact target is still a much younger company than sales force. and it has a lot of opportunities to grow,

especially geographically, for example, exact target is not in a meaningful way in france or germany and japan. markets that we have incredibly strong presence in. but also, exact target is very strong in e-mail marketing, number one in e-mail marketing, and very, very strong in this new area of digital marketing. our customers want us to have that capability built into our platform. that's why it was imperative we bought this great company. >> let's talk price again. i saw you tweet you're thrilled that e.t. includes pardot for nurturing. and i see from the atlanta papers that pardot only cost $95 million back in october. how do you fend off anybody who might say wait a second, this one company only costs $95 million, et was private two years ago, just paid too much in order to stop someone else from acquiring it. >> let me tell you why that's actually critical. we wanted to do one acquisition,

jim, that would fill in our completely marketing private line. that is, we knew we needed e-mail. we knew we needed e-mail, mobile, digital, b to c platform and also b to b components. and those are campaign management, and lead nurturing. we didn't have those critical marketing components. we needed a company that could offer both of these capabilities. the b to b side, which is the pardot capability and b to c side. and when we did our competitive analysis, and jim, we have looked at every company before we made this decision. i have met with every ceo, talked to everyone. and let me tell you, this is the absolutely best company for sales force. >> okay, yeah, there are four customers frequently mentioned. gap, nike, bank of america and microsoft. i have to presume you lose microsoft. can you tell people what they do for bank of america and nike? >> let me tell you, of course, salesforce.com has a tremendous relationship with bank of america. we do everything from managing the twitter site which is b of a

under score help to managing medical lynch. what sales force does not do up to this point is managing the fms push, e-mail capabilities directly to the customers, all of the digital marketing to customers and guess who does that, exact target. that's a great exactly of how these two companies come together and make a more strategic company. now when we go to bank of america, we can say, yes, we use this for sales. yes, you use this for service. but now you can use us for marketing. and they can look at us in a more strategic way. that's true, coca-cola, true at gap, true at a lot of companies that already use exact target. and why is that? sales force and exact target have been partners for years. this is not a new relationship. scott and i have a relationship that goes back almost a decade. this is a relationship of two companies that have been growing in a symbiotic way and now coming together in a wholistic way. that's powerful. and i think that there's another secondary gain we should talk about.

usually when we're on the show talking about an acquisition, jim, we're talking about the innovation, and the new technology. now, exact target has that in spades. but in this case, exact target is a real company with real revenue, as you know, and this is also a huge accelerator on our revenue curve, and we're raising our guidance again. we did that a week and a half ago when i was on the show and doing it again. raised our guidance today to $4 billion for the year. that's super exciting, jim, and that's just this fiscal year. >> cb group, always regarded them as a bull, not talking about one of these bears. they say this reveals you made a strategic in buying adjacent assets before this one and you wouldn't need those now. >> well, that's not true. because, for example, exact target is not in listening. we're number one in listening already, jim. that's radian six. and also, buddy media is number one in publishing and exact target is not in publishing and there is one you missed, social.com. don't forget, we just introduced that great new social advertising product, and guess what, exact target is not in

social advertising. but that's social marketing and social marketing is the new marketing capabilities. exact target is really strong in the traditional marketing capabilities. that is in the e-mail and in mobile and digital and in creating this next generation b to c platform. that is not at all what we have been doing with our marketing efforts. our marketing efforts have been entirely focused on helping our customers build a social enterprise, and, of course, our customers love those capabilities, and we have had great success with those acquisitions. but this is a very different animal. this is really the mainstream marketers now. we're really talking to the heart of marketing, the chief marketing officers who buy 2,017 are going to spend more on technology than cios that's a phenomenal opportunity for us to execute against. >> i want to point out, stock down 20% from its high, hit badly today. barron's article saying that if your company was not to use stock-based compensation, you would actually be losing money.

29 cents gap estimate. if you are able to grow the company and a stock goes higher, you can attract really good people with stocks. what happens if this ends, the stock goes down, people don't want stock compensation, you suddenly have to pay with cash. is that something that sales force is equipped or can handle? >> look, jim, sales force is a phenomenal company, and you have seen the massive cash generation of the business and the tremendous revenue growth. and would what we're focused on, jim, is building a phenomenal, highly valuable, critical asset for our customers. we are customer first. and we want to have the organization that customers turn to to manage the relationship with their customers. and that's the value. and then from that value, everything else gets monetized. all cash flow, all the profit realty, all that comes out of that. and we have proven that over 14 years of our operating history. and today we're a growth organization. we just put up, as you know, a

30% growth quarter in costs and currency, jim. 30% operating cash flow growth. and also 30% deferred revenue growth. and i think we're the only ones who did that this quarter for you. at our size and scale. >> no, you are the only one. and that's why i always tell people, pure growth, sales force is the best pure growth. >> i just wanted to check on that point. because, jim, we're delivering. and my job as the ceo of salesforce.com is to get on your show and to accurately predict the future, to be mindful and thoughtful about what's coming to align our organization and our customers and to make this happen. and that's what we're doing. and at some point, if that changes, i'll be the first to come on and tell you that. just as i did, for example, in 2008. if you remember, way back then when the stock fell and there were problems in the global economy and our company was falling apart and we said, wow, we don't know exactly what's coming on, i came on the show. now i'm coming on the show and saying the future is sales service and marketing. we have to be the number one provider. and now is the time to hit the

accelerator and grow. >> all right. that's right. i know you knew the stock was going down when i got ahold of you, you said absolutely i want to come on. you were true to your word. mark benioff, ceo of salesforce.com. mark, thank you very much for coming on the show. >> jim, always great to be on the show. thanks so much for having me. >> thank you. all right, guys, down 20%. it does have the best growth tack factors of any company i follow. those who like growth, this is the opportunity. understand that with the opportunity comes a lot of risk. it's an expensive stock. if you like growth, salesforce.com has the best growth of any large cap company. stay with cramer.

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>> caller: boo-yah, jim. >> amd. >> you know, amd, i was going to recommend -- it was at 3, gone to 4. too fast for me on a pull back. buy, buy, buy! clayton in south carolina. clayton! >> caller: yes, sir, i send you a big boo-yah from south carolina. how are you doing, jim? >> all right. how about you? >> caller: fantastic. i wanted to call and check in on disney. >> disney was down on monday. now you've got to wait again, up 55 cents. i think it will come back down to 63. and then -- mike in alabama! mike. >> caller: jim, boo-yah. >> boo-yah. >> caller: listen, jim, sincerely, thank you so much. not just for the years of the sound advice, but also for your great humor. because you make me laugh, even when the market is not so funny. >> then i'm doing a good job. thank you. >> caller: i'm long citi. got in early.

my cost is below 14. now pulled back the last two days, i know you're aware. here's my question. it's simple. buy, sell or hold or sell -- >> i've got to tell you, i ain't going to play solar city. cut it in half. play the house money and let it ride. solar city is a coal stock like tesla. it is never hard for me to apply about bulls make money, bears make money, and you're in the hot camp. derek in new jersey. derek. >> caller: b-b-b- boo-yah, jimbo. >> sweet. >> caller: hey, i saw you on capital drill on broadway a way back. >> i'm a man of great mystery, went next door. >> caller: i wanted to ask you about isis phrma. just got a $10 million payment from astrazeneca. is this unusual? >> i like that. you know i like the novel compound, but it's always speculation. sammy in louisiana. >> caller: boo-yah, jim.

>> boo-yah. >> caller: jim, thanks for being a great person and taking my call. don henley and myself, we were just talking about green mountain coffee roast, tmcr. how is that doing? >> i don't know, man. mine broke this morning. and i've got to tell you something, i hated the -- good father's day present. i think green mountain has gotten too high. listen, this one has really moved. i like it on pull back, and only one blue light, blue lights flashing, i could put the water -- 8:00, that's it. i was steamed. let's go to randy in california. randy. >> caller: hey, jim. is that you? >> you bet it is, randy. is that you? >> caller: you bet it is. good boo-yah to you. i'm interested in my future with the rite aid corporation. >> i wish they would clean up the water across the street from me. it looks awful. i think you should buy cds, not rite aid. walgreens is second. let's go to sateesh in new

jersey. >> caller: boo-yah from wood bridge, new jersey. >> nice. go ahead. >> caller: hey, what do you think of adt, the stock has been on the decline for some time. >> i'm furious. this is my charitable trust -- this one is a travesty. the company came on the show, said the stock was cheap, should do a buyback, give us a dividend, something. this has got me more steamed than my keurig, and that, ladies and gentlemen, is the conclusion of the lightning round! >> the "lightning round" is sponsored by td ameritrade. 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.

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i like to search for stocks able to defy the downward pull of the averages, actually go higher. take a&m health care services, ahs for your home gamers, hospital staffing and work force managing play that rallied to 3.72% this session. here's a tiny, $625 million company, maybe you never heard of it. but it's worth hearing about, even though the small market company needs the stock, some would regard as speculative. we have a serious shortage of

doctors and especially nurses in this country and that shortage is only going to get worse over time. enter a&m health care, recruits and hires doctors, as well as temporary doctor staffing and nurse and allied staffing, too. more important, a&m, a managed service provider. that's a health care cost containment play, relating to vendors, contracts, recruiting, hiring, billing and every other work force related process. but a&m, the most experienced team in the business, along with the platform that allows them to cut costs and improve efficiency much better than the hospitals can do on their own. that's why they're taking share rapidly in the business. reported a month, results came in better than expected, a 4 cent earnings beat, strongly anticipated revenues. company had year over year growth, and robust pipeline of new managed service business. that's why i think this is worth taking a closer look and that's why we have susan salca,

president and ceo of a&m health care services company to learn about the prospects. welcome to "mad money." >> thank you for having me. >> when i looked at your company, i kind of couldn't figure out why it is only $600 million. you provide services that no one else seems to, largest player, and candidly, other than say a cerner or athena, i've never -- i've never heard of you guys. why is it that you're so big, number one market share, and yet just now getting your story out? >> well, i really think it's the evolution of what's happening in hospitals. you really hit it on the nose when you talked about the work force solutions and cost containment. we have been the largest provider of health care services for the last decade. but today hospitals are looking for more sophisticated solutions. >> okay. >> and so our evolution of work force solutions, things like managed services programs, recruitment process outsourcing, really help hospitals get their armed around spending and get better analytics to figure out where and why and when spending

dollars and plan better for the future. >> one of your customers is stanford, a great system. what was stanford doing before you? >> they would usually work with multiple agencies. and a lot of hospitals still do. they might work 40, 50, different agencies that provide health care staffing services. but more and more of the largest systems are wanting to really partner with larger providers and take on best practices, like these managed services programs. it really helps them to have better consistency in the quality of clinicians they're bringing on board and get their arms around spending. and as you see more consolidation within the health care industry, it also makes it easier for them to integrate new hospitals as they bring them into the system. >> i was trying to figure out what's the right metric. should we -- consider you a company that does well with the affordable care act? is it a company that does well when it's tough to find employees, you know, temporary staffing company, so to speak or really just a cost rational

eyeser where you have a talent pool to draw on. >> we're possibly the perfect storm for all of the factors you mentioned. we already have a shortage of clinicians across this country. nurses, physicians, allied professionals and that's expected to get far worse as the population ages. we have 30% more people over the age of 65, just by the year 2020. that alone will drive increased demand for health care professionals. and then you layer on top of that obama care, which 30 million more insured now with paid access to health care. it's expected to drive much more severe shortages across all of the professions. as the economy improves, that also drives more demand for temporary health care workers. >> now, let's take if you have long-term care insurance, and there's just -- the baby boomers coming into that, these people all get nurses. they get in-home help. >> right. >> where are you going to find all of the people? >> yeah, that's a great question. because for us, the factor of growth is really around recruiting that supply of

quality clinicians. we feel strongly, as i think do the analysts and investors, the demand is going to be there for all of things we mentioned. we're really focused now on increasing our recruitment efforts and making some big investments in what we call a digital transformation. so things like revamping our websites to make sure they're very interactive and targeted towards those people most likely to change jobs. mobile media. most job searches start today on a smartphone. we want to make sure we're anywhere and everywhere health care professionals looking for a job and making it easy for them. our clients have some of the most attractive best jobs across the country. it's really a matter of connecting that job with the most qualified, quality clinicians. >> cerner, athena, these guys want to be a one-stop-shop. are you going to be their competitor or is it likely they'll just say listen, for a billion dollars we'll buy you. >> we are that one-stop-shop on the work force side. so it used to be in our industry you were either a nursing company, physician or allied. today we are the leader in

providing all those services. on top of that, we offer these work force solutions. so, you know, in that way, we're really making it easier for our clients as they want to deal with the labor challenges going forward. they can come to one organization. we're not a technology company. although we do help with these technology companies as implementing their software. our expertise is really on the clinical health care side. >> celebrity. this is susan salco, president and ceo of health care services. i hope you see why i wanted her to come on. i think you see this niche is much better than a niche. "mad money" is back after the break.

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there's something about bubble calling that grown up pundits seek to go get their names out there can't resist. they always call bubble and junk credit, bubble in housing, bubble in treasuries. it never stops. this is the kind of binary thinking that is totally unhelpful, frankly. like the not lamented at all passing of risk on, risk off. i totally understand why people have something to sell or people trying to create a name for themselves would want to call a bubble. what could be better than to say there is a bubble in housing after a 10% increase in the price of the average home. think about how wise this move is. if the bubble bursts, suddenly housing prices come crashing down, you're a genius. but if a housing keeps going up in price, that might actually be better, because there is an even bigger bubble for you to talk about. how much smarter can you sound? it's a fabulous risk reward for

a pundit or more important, what do you have to lose? is someone going to call you out on twitter for being too bearish? i've been saying the test is too hard to evaluate because it's a cold stock and someone on twitter said i kicked them out of tesla but that's become more and more of the way of twitter at jim cramer, which is one of those who -- balance things, where someone only feels bit if he can throw you off his game, take you down. in short, bubble calling is the cheapest way for a wannabe pundit to get publicity and if it bursts, hallelujah. sometimes securities get too high. take coke la cola. one of the greatest companies in the world. trades at 2.3 times its growth rate, too expensive. i can't recommend it, even though i think the underlying company is good. does that mean there is a bubble in coca-cola, granted it's carbonat carbonated, tiny bubbles. how about housing, totally regional business. we decided to take the 10% from

last week and say the entire nation once again is in a housing bubble. sure, some areas have gone up a lot. but others haven't. still, the overall actually home is worth less than in 2006. we have had so few houses built in the last few years, we can't honestly tell what the market is. but we know it isn't overheating nationwide. bubble? i think not. now it's true the -- dangerous places to investing. interest rates could rally, causing rates to fall, and fall hard like we saw in the junk bond funds last week go down. but they're not bublgs that will knock the nation off its stride. once you put it in perspective, the only thing that could happen that something overvalued goes down, well, sometimes swiftly, you can stop scaring people maybe actually help them. but that's not the goal of the bubble callers. their goal is to get their name out there, be heralded, be on tv, sell books, subscriptions, get contracts to perform. these foul weather cassandras

could actually be helpful if they weren't so busy being grandiose and inflammatory for the sake of some publicity. stick with cramer. ♪ [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes. because the ultimate expression of power is control. this is the pursuit of perfection. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel.

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...to stop, spot, and report fraud. you can help. guard your medicare card. don't give out your card number over the phone. call to report any suspected fraud. we're cracking down on medicare fraud. let's make medicare stronger for all of us. i'm on expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for, because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. ready to plan for your future? we'll help you get there. apple loses a patent decision to samsung.

listen, you're going to sell the stock? think about it. when apple's win comes, it didn't affect the stock on the up side. if you want to own apple, you've got to like apple. you always like to say there is a bull market somewhere, i promise to try it find it for you here on "mad money." i'm jim cramer and i'll see you tomorrow! has chris christie thrown an election year curveball at his own party again? new jersey governor steps away from the chance to play the partisan game and decides to call for an early special election to fill frank lautenberg's seat. some conservatives are angry that christie may be as clever as a fox on this one. we'll explain why and get you updated on is this still-developing story. what gives the federal authorities the right to spread innuendo and fear and break up a hedge fund like they are doing to steven a. cohen. maybe he is guilty, but he hasn't even been charged yet. all those stories and much more coming up on "the kudlow report." beginning right now.