>> beakers? >> i think you buy puts. >> steven? >> yahoo! >> guy? >> honeywell reports on friday. >> thanks for watching. see you tomorrow again. in the meantime, "mad money" with jim cramer starts right 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 try help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money," welcome to cramerica. i'm just trying to make you a little money. my job is not just to entertain but to make you money. start seeking in today. possibility of a debt ceiling catastrophe. spooked the market. dow sinking 130 in points in nasdaq declining 0.56%.

yep, today it became clear that all the nice things we've been hearing act the deal on thursday had nothing to do with the rally becausesant tiding was all in the senate. they're just scared. not the senate. the senate is scared, the house isn't. the house of representatives as we keep discovering is a horse of a different color. from the very beginning you never expected the senate to reject a debt ceiling increase and not just because it's controlled by a democrats. there are enough republican senators around for a while and talk to the business community to know a disaster looms if we don't do something. there aren't enough in the house for certain. first of all, i am unwavering in my belief that if we default it will financially catastrophic. just placed u.s. debt on a negative ratings watch this ebbing in the sign of real trouble if the debt ceiling isn't raised. no kidding. they should be doing that. i thought that dave temper said it best on "squawk" when he noticed the hazards of a

default, maybe he's patriotic, does it matter when we have the .45 caliber in our nation's financial mouth and we're ready to pull the trigger. >> when you start messing around with the debt of the united states of america, which by the ways has not missed debt payments, way over leveraged by the time of the revolutionary war when hamilton made the decision to make those debt payments. you didn't miss a debt payment in the civil war. this is time you're going to choose to miss a debt payment? >> why would some republican congress people still be drafting onside issues and not the cutting back obama care knowing if they don't drop them then we will have to default. like him or not, that's what it's going to happen. i think it's because a considerable amount of members don't believe the world won't stop. i think they are simply unaware about who pays the price. as temper pointed out, a default

will fought out mortgage rights. they believe higher mortgage rates are a small price to pay, trash the president, wreck the full faith and credit of the united states. i can't believe the stock sell-off didn't happen earlier. i don't know why no one thought we would go to the wire on this stuff given some republican insurgents want to default the beast. two group groups. the ones who think the president's men are fibbing and the deadline will come and go with no consequence and ones who think it will go bad for the debt holders but, so what, they're from wall street. even better, they're foreign. these nrntinsurgents claim beca they had no place to put the money anyway. so what? i think the team who doesn't want to raise the debt limit has the upper hand. you probably obstruct until the cows come home.

congratulations. given my view that the upper hand belongs to the insurgents, why is the nasdaq down a little. i think that the last 24 hours since the house representatives balked this camp is way too glitch. a default could very well be in the cards. the odds of growing since last week, 20% chance of default, too many insurgents welcome me to think this denial camp is right. second, there are plenty of nonsellers who simply think they can't get out and get back in fast enough. i agree with this group. if you had sold before there and tried to get back in you pay much higher prices than you thought you would get. this camp is betting we would go over the deadline but money is found because tax rates might be larger than the treasury expected. you have to pay your quarter right now. third, some of the nonsellers remember how grim the battles were in 2011 and 20 12 and those each led to fabulous rallies.

who can blame these people? they have always precipitated gigantic runs. nonsellers who read the press and believe everything is under control. this morning i was astonished to find that anyone actually believes the senate matters. saying a deal is close. what does the senate know about the insurgents? they might actually welcome default betting they will make obama look bad. hey, that's politics. finally, nonsellers, strength stock's exhibit and get tons of comfor comfort. stocks rally $4.74 on an ugly day. microsoft hangs in. wells fargo reported a quarterly they didn't like. the mineral stocks keep rallying. how bad can things be? gold doesn't really go up. where do i come out? i am astounded at the recklessness of any leader who thinks a default doesn't matter. astounded.

who the heck would want to change that? what kind of capitalist would truly risk that status? those who are willing to we default over any issue would have been in another age called no noings or an arcists. they are defiling the legacy of hamilton and lincoln who cared about our nation's full faith and credit. our great nation and why on earth don't they find another way to get their point across. isn't there another way to moderate behavior rather than trashing good old american capitalism? i don't want higher taxes. i want to cut taxes. i want to reduce spending big time. what does that have to do with wrecking kapcapitalism? just as i can't stand it when the left tries to socialize capitalism out of existence, i don't like it when the government is spending too much money. why not let it collapse under its own weight. see you later. you favor lower stock prices

short and long term, and repudiation of the government's guarantee, you want to default. as someone who is trying to help you make money i can't for the life of me believe we're on the verge of defaulting our own debts even if they had never been rung up in the first place, and i do. bottom line. don't believe we will not go over the deadline. do not believe it's business as usual. if we do default, all bets are off. hamilton and lincoln regardless of how they were incurred, they weren't fools. they were worried about america's standing in the world. i think the history stands with them in the righteousness of their position. michael in florida, please, michael. >> caller: jim, a big boo-yah to you. how are you? >> good. how about you? >> caller: doing great. my question is regarding jc penneys. down 60% year to date.

they appear to be stagnant in their approach. macy's just came out that they're going to be open for thanksgiving for the first time which is new and unique. my question is what can jcpenney do to change their perception and get their stock price moving in the right direction? >> i don't think it matters. i think the economy is slowing because of what happens in washington. jcpenney needs washington to recon seen and pass the debt ceiling limit to go up and needs washington to get off our back ands and jcpenney will survive. everyone feels so awful approximate. michael in pennsylvania. >> caller: boo-yah, jim cramer. i was calling about dollar tree. heck of a run. >> dollar tree is perfect. given what washington is doing you want to be in dollar tree because it makes us feel poor. when you're real poor or you feel poor which is kind of the same thing at certain points even though we know it's not reality you go to dollar tree.

you want to wreck the economy, you want to say that lincoln and hm milton were idiots, just to prove a point? well, that's not going to be that good. hope for the best, prepare for the worst. the worst finally sank in today and it's going to be with us if we go over the debt deadline. it just will be. guys, there's no return. "mad money" will be right back. coming up, supermarket showdown. whole foods versus sprouts. two organic grocers both with phenomenal growth prospects but which stock should you put in your cart? it's a natural face-off and cramer's finding the winner, next. and later, upper crust? the government shutdown hasn't anible to cool off shares of domino's pizza. the companies has served up a 50% rise so far this year. but today's earnings reports has taken a slice out of the stock. it is now your opportunity to take a bite. don't miss cramer's exclusive. plus, digital delivery.

it's been a long time since tivo changed the way you watch tv. but as newcomers like netflix continue to take share, can tivo rub you into the future of entertainment? cramer sits down with with the ceo to find out. all coming up on "mad money." don't miss a second of "mad money," follow jim cramer on twitter. have a question, tweet cramer, #madtweets. give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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what's been working in spite of the ridiculousness in washington? what keeps flirting with the 52-week highs regardless of what it happens to be? i can think of one household name, a stock you know that's worth owning here because it just refuses to quit. i'm talking about whole foods.

wfm for you home gamers. here's a stock that's been making new highs since september when everyone realized that washington was going to make a mess of the economy. right now with less than two full days to go until we hit the debt ceiling deadline whole foods is only small change away from its 52-week high. actually, all-time high. now tonight we go off the charts not just looking at the stuff. better than mccain's, don't you think? you shouldn't judge a bag of fries by its cover. we have tim colin, the brilliant technician i talk about in my column realmoney.com. they can sell you incredibly expensive food because if whole foods is selling it it must meade meet their super high standards and in a country where more and more people want to eat organic or natural, whole foods is the place to shop. when the company reported last, some thought the numbers were light but i said buy the heck

out of it. we're also in a difficult environment here because of this dragging washington which has really got me down. i don't know about you. i like to -- i didn't want to come to work today because of this. whole foods is a high multiple stock that i worry about in this environment. it can be vulnerable. even though they tend to snap back like rubberbands, how is it that whole foods seem soaring from new all-time high to new all-time high? let me point one thing out. everything is scared of buying stocks that are out or near their new highs right now. i hear that chatter all the time. nobody likes to feel as though they're chasing a stock that's getting away from them. but the fact is new highs are a sign of strength, people, not weakness president. in the strongest stocks we'll keep roaring from levels when things are god. you don't get on the new high list because you're popular. you do it because you have superior numbers on top and bottom line. remember, we also don't care where stock's been, we care about where it's going to. take a look with that prelude

whole foods. according to collins is this is a rerive fik picture. the first most obvious was the flag pattern that whole foods just broke out of. it's called a flag. stocks rallying very rapidly. makes the flagpole and trades sigh ways in a fairly tight range making the flag. columnists like collins like this. once it starts ral leg again which whole foods did at the end of next week. after one of these flag patterns you tend to move higher, equal in size to the run up right before the flag, the flagpole. in the case of whole foods, $6.50 move the a take the stock to $56.50 in a short period of time. five bucks above where it is right now. flagpole, flag, breakout. breakout equal to that. okay? and that's not the only thing collins likes about this chart. next check out the moving average convergence to

convergence end indicator. the mcd. this is a tool technicians use. before they happen. with whole foods it just made a bullish crossover where the black line goes above the red line. i know it's tight. but that's an extremely positive thing with the chart's live quent of a neon sign that says buy me, buy me, buy me. we've seen this in the past year and they've been surprising accurate prediction of realities. collins wants to draw your attention to this, too. new index. new thing, people. cci at the bottom of the chart. this is a type of oscillator developed in thes '80s for commodities that's gone on to become popular for all types of securities because it can tell you if something is over bought or over sold or if the trend is going to change. cci on whole foods is very positive territory. this is the kind of reading we got for the stocks. collins thinks we're right at the beginning of a third. now, take a gander at this next

chart, another daily pictograph of the action. collins wants you to look at this. marked by the vertical yellow lines. volume spike, volume spike, volume spike. we had one early in may, early august, late september. what we see here is, well, super high volume. it is not whole foods' friend. the spikes ares close to a period of consolidation. trading sideways, sideways, sideways. for some time before snapping back into bull mode. the last spike was in late september. we have just been through another consolidation phase but collins has a way to figure out when it should end and the rally should resume. notice this filled in purple area that we didn't have on the last chart. these are known as bands, great, great analysts from doing these for years and years and they measure a stock's level of volatility at gi given time. when it's widely spaced it means

the volatility is high. when they're clamped closer together it means the volatility is low. what does that have to do with rallies at whole foods? spike in volume. then the stock starts trading sideways. and after a little while the band starts squeezing. squeeze together because the volatility decreased. when the bands start to widen again, that's your signal to start buying. that's exactly what's beginning to happen right now. okay? consolidate and shrink and boom. this pattern is where is it's working again. shrink, boom. like that. have to use only one finger. now, how about a lower tribune. collins says this is just as strong as the daily but it's got a hidden catalyst just like in the daily chart, whole foods has a flag pattern here. got it, right? just broken out of. higher prices to come. typically the flag on the weekly chart tells collins the stock is going to 68. what really catches his

attention is the dome form nation that whole foods made between march of 2012 and may of 2013. collins says this dome is bearish. steven king like when you think about it or at least if you're under it. and it should have caused the stock to breakdown below any move below 41 but the bulls wouldn't have it. instead, after the dome, whole foods catapulted off that level and pushed much higher, incredibly rapid fashion. no shortage because it's a dome pattern. the dome pattern says it's going to go down like this. they're waiting to get back in and the stock won't give it to them because it keeps roaring higher. ideal entry point but he doesn't see that happening unless the whole market gets crushed and that's always a possibility. while we're on the subject of organic foods, collins and i want to draw your attention to sprouts farmers market, sfm. small grocery store chain. this is a fresh faced ipo.

collins has noticed that sprouts spent nearly two months trading between 36 and 41, recently stock broke out and trading to the 42 to 48 range. collins think it's worth buying. and then a break about 48. here's the bottom line. some stocks even washington can't crush and basically the strength on these charts as by tim collins, whole foods seems to be one of them. you know i agree with that. if this debt ceiling dropped dead on thursday, causes the stock to roll over, you're going to be getting another buying opportunity. another fabulous place to buy if things go curflooey in the capital. tim in california. >> caller: i like kellogg, "k." should i buy it or get out? >> i see no catalyst to buying kellogg right here. i do think that kellogg has a good dividend. i do think that kellogg is a great american company, but i don't have a catalyst and if i don't have a catalyst i'm not going to recommend that stock.

can i go to tony in new york please. tony? >> caller: hey, jim. great big new york forget about it boo-yah to you. >> i'm liking that but i wish you had more winning teams here. what's going on? >> caller: in the midst of d.c. madness should i hold on to safeway or cash in and head out for the armageddon. >> sell half. why? they ran up big on doing the break up and announced they're selling a division. terrific. they're saying listen, stay, there's more. me, i'm cognizant of how high the market is. ring the register half tomorrow morning. lewis in florida. lewis? >> caller: mr. cramer, boo-yah to you, my friend. >> boo-yah right back at you. >> caller: thank you. thank you, sir the thank you. the reason why i'm calling, rite aid, great stuff, 36 cents for a long time. bought it for about 93 cents over $5. and kick myself every day for

not buying more. what do you think about that, if i should buy more? >> do not kick yourself and never kick yourself over a winning trade. i think it does go to $6. it may we visit under $5 in the interim because of all the craziness in washington. stock is trying to consolidate but rite aid has a new chief. i don't know about yours. by like the stock. there are major market d.c. talk about even washington has a hard time hurting. eating healthy, looking good, feeling like you're getting food that isn't bad for you but it's healthy, organic. that's whole foods. the chart agrees with you. coming up, upper crust? the government shutdown hasn't been able to cool off shares of domino's pizza. the company has served up a 50% rise so far this year. but today's earnings report has taken a slice out of the stock. is now your opportunity to take a bite? don't miss cramer's exclusive.

now that we entered the earnings season and possible that congress might reach a compromise on the budget and debt ceiling, we can care about things like earnings again? you need to remember one very important thing. when a company reports you've got to look at more than just the headline numbers. case in point. domino's. over 10,000 locations in more than 70 countries, terrific track record. this morning they reported

headline numbers not so hot. in line revenues and missed street earnings by a penny. market was bad, remember, though. it fell $3.95. 5.7%. that's heavy. if you took the time to look below the surface you realize the quarter actually in many ways is better than it looks. domino's same-store sales were up 5.4%. plus, these guys understand mobile better than anyone else in business without covering 95% of the smartphones in the united states. and don't forget, the stock has been a consistent long-term winner. 540% gain since i recommended it in january of 2010. up 3% since we last spoke to the ceo in july. let's talk to the ceo. welcome back to "mad money." >> thanks, jim. appreciate it. >> i'm always mystified about what the market does because i felt this quarter in particular, you're talking about doing something i've been waiting for which is growing the domestic store system again and it looks

like it's got real momentum behind it. >> yeah. it's starting to move. so not sure on today. 5% up both domestic and international. almost 19% up on eps. i was actually very happy with the quarter. >> i felt the same but, look, the market was bad. starts feeding on itself when it doesn't open up. it was down one. let me ask you, when you open stores is that what we talk about about somebody who is a driver, someone who is working at domino's, is that person getting the financing to open a new domino's and are you helping because of the new design which seems a little more costly. >> right. no, actually they're able to do it. but you're exactly right. it's over 90% of our franchisees started as hourly workerses in our stores. it's a great kind of entrepreneurial pipeline. but we are starting to see some growth again in the u.s. on a trailing 12-month basis. we open stores net. we're up again in the quarter.

and so we're starting to see those entrepreneurs come back and primarily it's because the economics of the stores are getting better and better, so good return on investment for them. they're starting to lean in again and open up some stores. so that's a great thing for us. >> the economics here we're talking about and you stress over and over again in the conference call is the technology which makes it so that it is much more lucrative to have a franchise than it was before. >> that's exactly right. our -- our earnings at the store level are up very materially over the course of the last three or four years. i think we're up five years in a row. this should be a record year for us at store level profits. >> okay. there were some people on the call who clearly want you to get back into something that treadmill that i don't want you in, which is the pour we're to the month. it has no end to it. the guys that do product of the month become legacy restaurants. this is not what you're trying to do. >> it absolutely is not. if you looked at what happened

with our business over the last four years now, since we relaunched, it's all been about driving quality perceptions. we've had new products. we came out with the pan a year ago. it's done very well for us. digital is driving growth. but what we're not going to do is start, you know, launching a new product every six or eight weeks, comes in, goes away, kind of all the equity you build in it goes away after you go off air. >> i've been critical of you of late, patrick, because i don't think you take advantage of what you do right. you dodge the question on the conference call about how the group was doing. you immediately lump it in with the other players. yet when i look at miller pay backs research today it's clear that pizza hut is losing share to you but you never -- you always seem to say it's from the mom and pops but they are having negative comps. why not just say, listen, we're beating some of the big guys? >> we clearly are right now. pizza hut has been negative four quarters in a row. i think more share is coming

from the mom and pops in regionals. but we've been growing faster than anybody in the industry. papa john's has been up a little bit. pizza hut has been down the past year. i still think the bigger story though is share coming from the bigger players -- two of the bigger players from the smaller players but clearly we're growing faster than anybody else right now. >> keep spending on technology. is there a finite amount or is technology just such a consuming thing you have no choice but continue to spend? >> you know what, we're getting a terrific return on investment with the investments we're making. we're still very much in line with the g around a. i think it may have been lumpy with the way it came in which may have been a surprise for the third quarter. we're actually calling it flat g and a year over year in the fourth quarter. as we look at it, the return on investment that we're getting in technology is terrific. we're going the keep spending on that and if we're generating the kind of earnings growth that we

did this quarter and that we have this whole year, that's going to drive great shareholder value. >> patrick, does it work to have an ad of a guy who is trying to take your order down, doesn't really get it right but he's wearing a domino's uniform. does that work? it makes me feel like the i'm not watching closely, why should i order from domino's, this guy can't keep my order straight. >> you know what, it does. it breaks through people like that we're being honest about it. sometimes that experience isn't perfect, but, you we know, the numbers that we're looking at and the real leverage for us is last year about 13% of sales in the pizza industry came from digital. we're now at 40%. so the more we shift people from phones to digital, the more we win. and if a little bit of that is cannibalizing our own sales, we're fine with that because we're driving better overall growth when we do that. >> all right, patrick. i would be remiss not to ask who wl you're seeing the good things we're starting to see in you were. as a matter of fact, in a world where our congress seems to be a

major obstacle, i have to believe that europe is getting more buoyant. you have a lot of stars over there. >> yeah, we do. i mean, europe really has done pretty well for us all through this downturn but i would tell you i think, you know, we're seeing some signs of it getting a little bit better over there. so i would agree with your thesis on that. and even in some markets that have been pretty tough, i mean, our business in greece is doing well. our business in spain has been doing much better. we're definitely seeing some signs of life in the european economy. >> okay. and i haven't been to the new stores. obviously there must be -- you would be emphasizing them. you wouldn't be emphasizing them unless they're give you good payback but you did not identify any payback on 150,000, $3$150, $300,000 unit. do you not have the numbers wait or wait until there's more of a conclusion? >> it's just a little bit early. we're at about 200 stores but most of them are done in the last three to six months. we want to watch the little bit

more before we're talking about specific numbers around it. but clearly we're moving that way. we like the way the performing the franchisees are happy with them. it's just a little too early to start talking specific numbers around those. >> fair enough. i just reiterate that every time the stock has gotten hit it's been a buy. i want to thank you as always for preserving the american dream because about the only few people i know are starting businesses are starting them for domino's. thank you so much, patrick doyle. >> thanks, jim. >> that's patrick doyle, president of domino's pizza. what have i said to do? buy. think i'm backing away now? absolutely not. stay with domino's pizza. stay with cramer. [ banker ] sydney needed some financial guidance

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it is time. it's time to talk congratulations to the new york stock exchange forgetting the twitter deal. this is what i was hoping would happen when we did the 2,000 showdown there. congratulations to all the people, also at twitter, because you made the right move. and now it is time, time for the lightning round.

lightning round, are you ready? lightning round, start with felipe in california. felipe? >> boo-yah, jim. this i'm in los angeles. >> i wish i were there. what's going on? >> caller: many thanks for you for my wife and i for your great expertise. >> you're very kind, thank you. >> caller: my question is about ant, sell or hold? sdpli like amt. i didn't say i would buy it. i do want to hold it. there's an outfit that keeps shooting against it and out fit today that says business is strong. i'm going to go with the latter. let's go to abendra in north carolina. upend upendra. >> caller: how are you? >> great. >> caller: thank the lord for all the work that you do. >> thank you. >> caller: really appreciate that is your wife. >> thank you very much. >> caller: thank you.

my part today is 1- 00 -- >> i see no catalyst there. i just don't see any catalyst. it's not been a great stock. let's go to jim in new york. it could be me. jim? >> caller: new york boo-yah to, you jimmy. >> i like that attitude. what's up? >> caller: hello? >> jim, you're on. what's going on? >> caller: okay. royal bank of scott land. >> going to go to 13. win the good, the bad. this stock is so ripe to go higher. the naysayers to jim cramer on twitter, join me tonight. i'll be there and i'm going to dish it out to you, jack. dave in california. dave. >> caller: boo-yah to you from southern california. >> what's up? >> caller: the stock, i love the

fundment mamentals and i love w does. a little on the high side, 80 bucks. it's multiple, like 98. my stock is alumina. >> i like that. i like technology stocks. very, very good strong fundment as. you go. california, you go. >> caller: jim, this is yugo. >> no. we've got other things to do with our money. that is to conclusion of the lightning round. coming up, digital delivery, it's been a long time since tive have changed the way you watch today but as newcomers like netflix continue to take share, can tivo plug you into the future of entertainment? cramer sits down with the ceo to find out. [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading.

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we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. everybody is talking about netflix. i want to draw your attention to another game changer who alter the way we consume content. i'm talking about tivo.

company who invented the dvr. that was nearly 14 years ago but tivo has done a number of things to get the house in order yet the market refuses to give it the respect that it deserves. it would be one thing if it was only selling own proprietary hardware but that's the old business model. this is in part an intellectual property company and they've dn extremely successful defending their patents. they haven't lost a case in the last five years and racked up e million settlement from motorola and cisco. more than 2.6 million subscribers that come through various cable operators. tivo has gotten aggressive about cleaning up its ball lansz sheet. $1.5 billion company sitting on a billion dollars in cash. $12.50 stock. $8 in cash per share.

back out the cash, selling for 16 times earning estimates. long-term growth rate is cheap the tivo has innovation. they just launched the romeo dvr which lets you record things to your tv and stream them to your mobile devices even if you're out of the house. let's talk to the man who founded this network in 1989. head of nbc cable. mr. rogers, welcome back to "mad mon money." >> if i had only known when we founded this it was going to be such a great show as "mod monad" on we would have started it earli earlier. >> i have dvr, comcast, directv and verizon. don't ask me why. i just like to have all of them. they all have really good -- i can tape anything. why do i need tivo? >> well, tivo invented the dvr. and now we're out to reinvent television all over again.

so tivo as a dvr is what tivo originally was and, of course, it's a great dvr today. six tuners, 450 hours of hd recording. incredible capability that you can't get otherwise. everything else it does. try to go to satellite or cable dvr and get netflix and hulu and amazon and youtube and all of your broadband content integrated into your traditional television and put that together in a way that no matter what you're getting from whatever source you have the ability to search for it, find it, put everything you want in one place, one -- at your fingertipses. that is a huge simplification and convenience of the television experience today. >> there's an article in the wall street who says netflix might be able to do that directly with cable companies. why do you need to partner with tivo? why does anyone need to partner with you if they can partner directly with the mso? >> a couple of places internationally where netflix has implemented with cable platers. we've been a basis upon which

that has been done. virgin and the uk, for instance, the only cable company in the uk. we've taken netflix, put it into the interface, and so we are capable of putting this all together in a way that consumers can really get at it easily. netflix has great content. we define the entirety of the experience. >> i've always felt that up until a certain point is this is a litigation story and therefore i thought it was capped because people want a growth story. is romeo, pretty good, is that the possibility of a long-term scheme? >> overwhelming by on our ip. a lot of skepticism. >> you want a case and the stock got killed. that was hard for me to get my arms around. >> 1.6 billion and we proved our patent value. and we've shown that we have a lot of cash and we've shown what a lot of people didn't think we could do is get an embrace from the cable industry we now have ten of the top 20 mso nasdaq this country that use tivo as their basis for driving the next

generation of television a lot of people said, well, they invented or innovators with the dvr but can they continue to innovate. you're right. what romeo does is clearly answer the question, what does tivo able to contribute by innovation to the next generation experience? and it's a lot more than the dvr. it has to do with getting your content to any screen. getting it to any screen no matter where you are meaning you're halfway around the world and be able to access your recordings. having it in your ipad and you walk in your backyard, wanting your favorite programs which are the ones were there. the way to think of it is if you took apple tv and took sling and you took roku and google tv and google chrome cast and put that all together, tivo would still give you beyond what that combination does and that's the very essence of why we're seeing people with the kind of reviews you have in your hand saying, wow, this is something really special for the television viewer. >> there was a conference call, richard raised a question.

listen, netflixs that a sky high valuation. you have and i just went over the statistics a not high valuation versus your cash. you talked about how you had subpar performance, year over year growing, almost a million though. is this the beginning, tend of the subpar performance as you can see it? >> i think beyond all the things we've norknocked off that i mentioned, skepticisms and proved the world wrong, or the skeptics. the thing that has hung over our head is will tivo ever really be profitable. >> question because you look at it, lost, lost, lost. >> and we've had profits along the way but they have been based on the one-time awards of past damages. and what we said six weeks ago at our last earnings call is we reached profitability. we are now at a point where we can see the foundation we now have. we will have $100 million of ebitda at least going forward next year and sustained profitability beyond that. and that's a very difficult

picture for tivo. >> i think it is. >> it puts us in a totally different category than people have looked at us before and since you announced that you see the stock strength then and hopefully arizona people begin to understand the story much better than they have they will continue. >> thank you. we get a lot of calls in lightning round, did they win the suit? sounds like i can get away from that. if that's the case, i think the stock can work its way higher. >> i think so. thank you. >> i'm going to check out romeo. the main thing is this notion of waiting on a court to make a judgment is not the way to invest anymore in tivo. thank you. >> thank you. mad about "mad money," immerse yourself into cramer's world. while you watch the show with zeebox. on your phone, tablet or on the web, get sneak peeks, go behind the scenes and join the conversations. download the free app today for the ultimate craamerica adventure. merica

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what's holing up the rapidly approaching debt ceiling drop dead date? stocks. netflix that can fly out the ordinary rules of the stock market be impunity. just this morning web bush came out with a recommendation of tesla, hold to buy. raising the price target from 240 to 180, has already been exceeded as of today. people love tesla cars. whatever the company builds it looks like it can sell. for many old-timers the notion

of pushing a stock because it hs products that people want is absurd. look how much tesla is up this year. look at the market cap, $22 billion. this is ridiculous. it's just not right. there's something to be said for the fact this particular analyst missed the move and should are moved on. there's something else to be said for the notion that tesla's market cap is less than half that of general motors. lucky to sell 22,000 cars this year. gm sold 9 million last year. there's simply no rhyme or reason for that valuation. welcome to the concept of the out-years. the essence of the web bush upgrade, up 50% of what web bush thought previously. based on a survey web bush believes tesla can sell 500,000 units some day. they can learn $10.10 in 2017 versus $7.55 they expected previously which is a pretty hefty increase. if you can sell hundreds of thousands of cars, i can see it. stock sells 30 times 2017 earnings which is actually

pretty cheap. i totally get this kind of analysis because of the simple concept. the subjects are willing to pay more for these cars than others cars which means the market might be bigger than people thought. that in turn makes tesla should be profitable. putting it in the order of a bmw, lexus, audi, mercedes. why not give tesla a similarities amount. however, the true significance of this upgrade should not be lost in people. tesla is a cult stock like netflix will keep going higher as long as there are catalysts. netflix, new production is potential build-ins, set top box office. that's similar to tesla. the stock had moved up on the blessings of consumer reports piece, it's moved up because of the aa likes it. it's going up because of publicity, showmanship, customers are flocking to the galleries. it has gone up on buzz, buzz wasn't cool when one of tesla's cars fired. as long as that love continues love for the stock continues. we all know stories about the

odor ra adoration of netflix, "house of cards" or tesla where you have an incredible omg factor when you try one. when i drove aes the a la i wanted one. my daughter drove one when she was home on vacation. he urged me to buy one because it's expensive. purists listen up. these stocks trade on adoration believing that everyone wants a tesla and everyone wants to subscribe to flnetflix. s at some point this game does end. at any given moment, these two and amazon are in that pantheon. to get in the way of suicidal even if goesing with them sales absu absurd. sometimes it just doesn't matter. h this is one of those times. stay with cramer. i love having a free checked bag

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people buying intel earnings. guys, kind of like a washington day. i just wish it were an earnings day. that's what matters. i'm jim cramer. i'll see you tomorrow! everything is on hold. still no deal in washington as house republicans look to force the preds, members of congress, and their staffs to sign up for obama care. but in just the last hour the gop plan seems to have broken down someplace. we're getting ever closer to hitting the debt ceiling deadline. we're about to get the very latest on this ever changing story from our ace political reporter, robert costa. his reports and his tweets on what's going on have become the number one news commodity out of washington, d.c. and we have leading conservative ng