>> 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 make you a little money. my job is not just to entertain but to make you money. started sinking 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 about the deal on thursday had nothing to do with the reality because the pleasant 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 the democrats. there are enough republican senators who have been 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 be financially catastrophic. fitch just placed u.s. debt on a negative ratings watch this evening 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

noted 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. listen to this guy. >> when you start messing around with the debt of the united states of america, which by the ways has not missed debt payments when we were way over leveraged at the time of the revolutionary war when hamilton made the decision to make those debt payments. you didn't miss a debt payment during the civil war. this is the time you're going to choose to miss a debt payment? this is the time? >> why would some republican congress people still be grafting on side 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's going to happen. i think it's because a considerable amount of members don't believe the world won't stop in a default. i think they are simply unaware

about who pays the price for profligacy. as temper pointed out, a default will drive up 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 government's guarantee of its own securities. 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 to starve the beast. two 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 foreigners got to grin and bear it, insurgents claim, because 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 now belongs to the insurgents, why is the nasdaq down a little? i think that the last 24 hours since the house republicans balked this camp is way too glib. a default could very well be in the cards. the odds of growing since last week, 20% chance of default, too many insurgents 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 that and tried to get back in you pay much higher prices than you thought you would get. this camp is betting we go over the deadline but money is found because tax rates might be larger than the treasury expected. you got to pay your quarter right now. third, some of the nonsellers remember how grim the battles were in 2011 and 2012 and those

each led to fabulous rallies. buy on the dip. who can blame these people? they have always precipitated gigantic runs. nonsellers who read the press and think everything is under control because senators from both parties say so. 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, there are nonsellers, strength stock's exhibit and get tons of comfort. stocks rally $4.74 on an ugly day. microsoft hangs in. wells fargo reported a quarter they didn't like. the mineral stocks keep rallying. how bad can things be? gold doesn't really go up. it can't be that dangerous. where do i come out? i am astounded at the recklessness of any leader who thinks a default doesn't matter.

astounded. our country is the best place to invest. who the heck would want to change that? what kind of capitalist would truly risk that status? those who are willing to default over any issue would have been in another age called no nothings or anarchists. they are defiling the legacy of hamilton and lincoln who cared so much about our nation's full faith and credit. why ignore the legacy of 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. i want entitlements curtailed dramatically. what does that have to do with wrecking capitalism? just as i can't stand it when the left tries to socialize capitalism out of existence, i don't like it when the

insurgents try to destroy it because 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, both short and long term, 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. those who think it won't matter will discover that 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 roughly 60% year to date.

gathering more and more capital. 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 of the marketplace 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 reconvene and pass the debt ceiling limit going up and needs washington to get off our back and jcpenney will survive. everyone feels so awful . michael in pennsylvania. >> caller: boo-yah, dr. cramer. i was calling about dltr, dollar tree. it's had a heck of a run. >> dollar tree is perfect. given what washington is doing you want to be in dollar tree because washington 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 hamilton 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 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. 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 plug you into the future of entertainment? cramer sits down 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. send jim an e-mail or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. 

what's been working in spite of the ridiculous mess in washington? what keeps flirting with the 52-week highs regardless of what the crisis du jour 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 consistently 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, its all-time high. tonight we go off the charts not just looking at the stuff, which does look pretty good. better than mccain's, don't you think? you shouldn't judge a bag of fries by its cover. we have tim collins, the brilliant technician i talk about in my column at realmoney.com. they can sell you incredibly expensive food because if whole foods is selling it, it must meet their super high standards. 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.

the stock had gotten too cheap. we're also in a difficult environment here because of this dragging in 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 rubber bands, how is it that whole foods keeps soaring from new all-time high to new all-time high? let me point one thing out. everybody is scared of buying stocks that are at 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. the strongest stocks will keep roaring from levels when things are good. 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 a stock's been, we care about where it's going.

take a look with that prelude, whole foods. according to collins this is a terrific picture. the first, most obvious was the flag pattern that whole foods just broke out of. it's called a flag. stock's rallying very rapidly. makes the flagpole and then trades sideways in a fairly tight range making the flag. columnists like collins like this. once it starts rallying again which whole foods did at the end of last 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, we're looking at a $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 divergence indicator. the macd. 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 equivalent of a neon sign that says buy me, buy me, buy me. we've seen this indicator a lot in the past year and they've been surprisingly accurate predicting rallies. 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 the '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 about to change. cci for whole foods is very positive territory. this is the kind of reading we

got for the stock's last two rallies. 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 in early may, early august, late september. what we see here is, well, super high volume. it is not whole foods' friend. these spikes are close to a period of consolidation. trading sideways, sideways, sideways for some time before snapping back into bull mode. the last volume 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 bollinger bands, great, great analysts from doing these for years and years and they measure a stock's level of volatility at any given time. when the bands are 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 spotting rallies at whole foods? first you get a spike in volume. then the stock starts trading sideways. and after a little while the bollinger 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 then shrink and boom. this pattern worked before and collins sees it 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 formation

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 break down on 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 should 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.

smaller grocery store chain in the same vein as whole foods. this is a fresh faced ipo. collins has noticed that sprout spent nearly two months trading between 36 and 41, recently stock broke out and trading to the 42 to 48 range. collins think it could be worth buying on a sell off 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 seen by tim collins, whole foods seems to be one of them. you know i agree with that. if this debt ceiling drop dead on thursday, causes the stock to roll over, you're going to be getting another terrific buying opportunity. another fabulous place to buy if things go kerflooey in the capital. tim in california. >> caller: i like kellogg, "k." what do you think with the recent run up? 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 some 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 already ran up big on doing some break up and announced they're selling a division. that's terrific. there are analysts 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, thank you. the reason why i'm calling, rite aid, great stuff, 36 cents for a long time. bought it for about 93 cents. it's 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 revisit under $5 in the interim because of all the craziness in washington. stock is trying to consolidate but rite aid has a new chief merchandise manager. i don't know about yours. i like the stock. there are major markets 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. ♪ when i'm halfway into your heart ♪

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now that we entered the earnings season and possible that congress might reach a compromise on the budget and the 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 estimates by a penny. market was bad, remember, though. it fell $3.95. 5.7%. that's pretty 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 the business with apps 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. it's up 3% since we last spoke to the ceo in july. let's talk to patrick doyle, the ceo. welcome back to "mad money." >> thanks, jim. appreciate it. >> i'm always a little 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 three. it was down one. let me ask you, when you open stores is that what we talk 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 workers in our stores. it's this 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 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 product of 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 think you don't take advantage of what you do right. you dodged 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 very 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.

you're not. 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. we'll take share where we can get it. 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. >> some people are concerned you 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 and a. i think it may have been lumpy with the way it came in which may have been a little bit of 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 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 if 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 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 whether you're seeing some of the good things we're starting to see in europe. 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 stores 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 giving you good payback but you did not identify any payback on $150,000, $300,000 average unit.

do you not have the numbers yet 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 about specific numbers around those. >> fair enough. i just reiterate that every time the stock has gotten hit it's been a buy. i see nothing different. i want to thank you as always for preserving the american dream because about the only few people i know who are starting businesses are starting them for domino's. thank you so much, patrick doyle. >> thanks, jim. >> that's patrick doyle, president and ceo 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.

it is time. it's time to talk congratulations to the new york stock exchange for getting the twitter deal. this is what i was hoping would happen when we did the 2,000th

show down there. congratulations to all the people at nyse, also at twitter, because you made the right move. and now it is time, time for the lightning round. lightning round, are you ready ski daddy? lightning round, start with phillipe in california. >> 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 amt, is that a sell or hold? >> i 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 an outfit today that says business is strong. i'm going to go with the latter. let's go to upendra in north carolina. upendra. >> caller: how are you? >> great.

>> caller: thanks a lot for all the work that you do. >> thank you. >> caller: really appreciate it. >> thank you very much. >> caller: thank you. my part today is 1-800 flowers. >> 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: a 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 scotland. >> it's going to go to 13. win the good, the bad. this stock is so ripe to go higher. the naysayers @jimcramer on twitter, join me tonight. i'll be there and i'm going to dish it out to you, jack. let's go to dave in california. dave.

>> caller: boo-yah to you from southern california. >> what's up? >> caller: the stock, i love its fundamentals and i love what it does. it's a little on the high side, 80 bucks. its multiple is like 98. my stock is illumina. >> i like that. i like technology stocks. very, very good, strong fundamentals. yugo. california, yugo. >> caller: jim, this is yugo. walter energy. >> no. we've got other things to do with our money. that is the conclusion of the lightning round. coming up, 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 plug you into the future of entertainment?

cramer sits down with the ceo to cramer sits down with the ceo to find out. who found a magic sea.

everybody is talking about netflix. i want to draw your attention to

another game changer who altered the way we consume content. i'm talking about tivo. company who invented the dvr. that was 14 years ago but tivo has done a number of things to get its 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 its own proprietary hardware but that's the old business model. tivo has shifted the licensing to other players. this is in part an intellectual property company and they've been extremely successful defending their patents. they haven't lost a case in the last five years and racked a $40 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 balance sheet. this is a $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 next year's earning estimates. long-term growth rate is cheap the tivo has innovation galore. they just launched the romeo dvr which lets you record things on 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 when he was the head of nbc cable. mr. rogers, welcome back to "mad money." >> if i had only known when we founded this it was going to be such a great show as "mad money" on we would have founded it in 1889. >> 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 a 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 fingertips. that is a huge simplification and convenience of the television experience today. >> there's an article in the wall street journal that 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 operators, we've been the basis upon which that has been done. virgin in 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, which is a pretty good innovation, is that the possibility of a long-term earnings 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 msos in this country that use tivo as their basis for driving the next generation of television. a lot of people said, well, they invented or were innovators with the dvr but can they continue to innovate. you're right. what romeo does is clearly an answer to 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 you record 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, netflix has 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, the end of the subpar performance as you can see it? >> i think beyond all the things we've knocked off that i mentioned, skepticism and we proved the world wrong, or the skeptics. the thing that has hung over our head is will tivo ever really be profitable. >> simple 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 sustained profitability. we are now at a point that 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 different picture for tivo. >> i think it is. >> it puts us in a totally different category than people have looked at us before and since we've announced that you see the stock strength then hopefully people begin to understand the story much better than they have and 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 conversation. download the free app today for

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what's holding up the rapidly approaching debt ceiling drop dead date? cult stocks. stocks like tesla and netflix that can flout the ordinary rules of the stock market with impunity.

just this morning 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 has 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 that this particular analyst missed the move and should have 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 to 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 of 892 people, 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 survey 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 immensely profitable as it scales its product, putting it in the order of a bmw, lexus, audi, mercedes. why not give tesla a similar 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 boxes. that's similar to tesla. the stock had moved up on the blessings of consumer reports piece, it's moved up because the aaa likes it. it's going up because of publicity, showmanship, customers are flocking to the galleries.

it has gone up on buzz, buzz that wasn't cool when one of tesla's cars caught fire. as long as that love continues love for the stock continues. we all know stories about the adoration of netflix, "house of cards" or tesla where you have an incredible omg factor when you try one. when i drove a tesla i wanted one. my daughter tried one when she was home on vacation. she urged me to let her buy one. i'm demurring because it's expensive. purists listen up. these stocks trade on adoration believing that everyone wants a tesla and everyone wants to subscribe to netflix. at some point this game does end. i don't know when, but at any given moment, there are stocks that defy analysis. these two are in that pantheon.

to get in the way of suicidal even if going with them seems absurd. sometimes it just doesn't matter. this is one of those times. stay with cramer.

people buying intel on earnings. guys, tomorrow is kind of like a washington day. i just wish it were an earnings day. that's what matters. i'm jim cramer. i'm jim cramer. i'll see you tomorrow! him to open his checkbook? >> now i realize why the distance is here. it's harder to reach over and slap you in the face. >> [laughs] and later, meg and i head to l.a... >> ♪ california >> in search of movie and classic cars in the city of angels. >> so this is ryan gosling's car. >> but getting 'em back to l.a. in one piece... >> pretty big fiasco. >> may be easier said than done. they broke my lock? you gotta be [bleep] me. my name is jeff allen. i buy, fix, and flip cars. but i don't do it alone. i've got perry... meg...