ore efficiently than exxonmobil. because using energy responsibly has never been more important. energy lives here. ♪ 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 some money. my job is not just to entertain you but to educate you. call me at 1-800-743-cnbc. after the best week in five months, with today capping the perfect santa claus rally, we have to talk about what transpired this year. this is the year we went from

the bear market with some bullish advances to an out and out full blown bull market. this was the year where we finally vanquished the demons that haunted this market since the nasdaq top at the beginning of the millennium. this was the year where things worked out where hard issues were resolved positively. >> the house of pain. >> and good news translated at the end to, yes, good news right down to today's action where the stock market toasted a fantastic 4.1% gross domestic product game. with a darn good rally. nasdaq soared 1.15%. you should have seen the action in that index. you might be shocked to hear that we only just went into an all out bull market mode this year. after all the dow jones industrial averages run for

6,600 in march of 2009. it hasn't happened in the bull market, the gains have been consistent, right? but i would contend until this year, all we did was make up the ground we lost in the crash before the great recession and 2013 was the year we saw big rallies across all sectors, not just a couple of narrow areas that couldn't sustain their gains. many people were baffled about what's really happening in this market, though. they're confused because they hear it's all done with smoke and mirrors. we talk about how the fed is manipulating the market, or the politicians will never let us make real money or the world is a screwed up place and the stock market's a fantasy land that makes no sense whatsoever. completely detached from the real economy. if we have 7% unemployment, how can the stock market go higher? we're used to people arguing

back and forth about the legitimacy of the federal reserve and the craziness of the $4 trillion balance sheet. we accept everything is political now and it's phony and false. and what happens? we get a flash crash, facebook gaffing. worse, people are afraid to champion this market. afraid to hit the button. they think, well, what happens if it reverts to the true character and crashes after i praise the market? do you want to be the guy we see on youtube saying the market looks great here we played endlessly after the big decline? do you want the link @jimcramer on twitter, the butt of a comedy channel joke because you were bullish on the top? much better to argue qe is behind everything and the only way to approach is be cynical, a know-it-all who has the vision, the vision to see the next crash coming.

what's the real problem of the market. the twin peaks of this negativity came last year. during the fiscal clip discussion that was right about now. and this year with the absurd government shutdown and the bizarre debt ceiling fight. but, you know what, the bull never blinked. and each time one of these peaks appeared before us, it was scaled. scarily scaled, but scaled nonetheless and each summit, this was more beautiful than the last time. and finally the politicians gave up trying to destroy the economy and just shut up entirely which gave us one more beautiful lift at year's end and that trounsed the bear, last nail in the coffin. it's been so long since legitimate bull markets of the 1980s and 1990s we forgot what happens in one of these truly positive moments. or maybe, people just aren't old enough. let's go over the five bull market tenants. something to think about over the next five days. call it your game plan for the last week of the year. first, in a bull market, things happen, they get resolved positively. while it seems impossible to believe they will. who remembers the cypress crisis

of march 2013. do you know how many people thought this country's woes, country probably nobody can find on a map and can barely recall what went wrong. what would actually bring down the western financial world. there were specials done about this thing. i had to fight these naysayers off with a stick finally resorting to the ultimate of insults to the bears. when i repeatedly asked the question on "mad money," what does the cypress crisis have to do with the price to earnings multiple of cramer fave -- say it with me, bristol-myers up an astounding 64% this year. you have to suspend your skepticism at times in a bull market and the scars of the past, that was difficult for many, but it has to be done. second, bull markets, all bull markets are based on profits, not the prophet kind. profits. when companies create bountiful profits, regardless of whether it be from buying back stocks or refinancing, the stock market does go higher. it's a fact of life. there are plenty of people who tried to tell you that only sales mattered. others said the profits would be taken away by the fed, obama, the tapering. you name it. they were all wrong. they will never admit they were wrong.

you heard it from me, they were wrong. i'm tired of hearing about them and their endless hectoring of ben bernanke. the critics, listen up, your time's over. here's your hat, what's your hurry? don't let the door slam you on the way out. third, in a bull market, companies take matters into their own hands. they aren't paralyzed, they don't wait for a big wave. they break themselves up, merge, do dividends, gigantic buybacks, spinoffs, execute well and don't care about the fed. ceos matter! i read about 21 of them in my soon to be released book, 21 execs you need to back because they took matters into their own hands. and that's bull market behavior. and in a bull market, people get put to work and jobs become plentiful. and that's what's beginning to happen right now. that's what occurred this quarter.

employment's coming back, but you don't hear about it because they're always in a newly politicized world. two sides to every story. even when there's only one story. there's a democrat side and a republican side. i could care less. jobs are recovering and that makes a ton of things possible. you heard that later from paychex in the show. ultimately more consumer spending. that's what you saw in today's raging gross domestic product number. finally the fifth trade. no inflation. we don't talk about inflation enough here because there is no inflation. but inflation is what handcuffs the fed and keeps it from being able to help the stock market. what ruins our purchasing power, makes it impossible for companies to make enough money for the profits needed to get the stock market moving. inflation is the scourge of the bull. however, right now, we don't see any. and i sometimes feel the only other guy who realized this is

my hero ben bernanke who always brings it up and it's always ignored by the democrats and republicans who want to debate inflation. so here's the bottom line, you know you're in a true bull market when despite the myriad of skeptics, profits are bountiful, ceos are driven to create value, jobs begin to become plentiful and there's no inflation. for the first time since the new millennium began, we have all five. and that is why we're going higher. tom in michigan. tom? >> caller: hi, jim, tom from saginaw, michigan, with the 100th rose bowl boo-yah to ya. >> i'm jealous, too, man, pasadena's gorgeous. what's up? >> caller: i saw that broadcom, brcm was recently downgraded. is it a good selection from the technology sector from my "mad money" portfolio? >> no, it is not, sir. it is too wildly inconsistent. and what i find about broadcom, it's a serial disappointor. if you want to be in a stock that is similar, you can go, indeed, for zylinks. can i go to massachusetts? >> caller: hey, jim, a big holiday boo-yah from andover. >> what's up? >> caller: i want to know your thoughts on a couple of key

apple suppliers. jbl and crus. i'm -- >> all right cirrus logic is seeing pressure, jabil is a disaster. i'm trying to get my head around how it has fallen off a cliff. i don't want it. okay. the year of the bull may be upon us. all right. we're in an actual true out and out bull market now that started in 2013, it's really the first year of the new millennium. the others were all bear markets with bullish spikes. you know what i think? together, recognizing these five signs of a bull market, we can solve this conundrum together. "mad money" will be right back. coming up -- stay the course, the market's making new highs, but if you're

like most investors, some of your stocks just refuse to rally. tonight, cramer has some ideas about what to do with tickers that aren't cutting it but seem too cheap to cut. and later, cramer claus, he made a list and checked it twice. now he's ready to reveal which stocks are nice. don't miss the companies that could make the season bright when cramer reveals his favorite stocking stuffers. plus, check cash? payroll process of paychex has delivered more than a 40% return to date. is this the way to play a recovering job market in 2014? find out when cramer speaks with the ceo before the ink dries on its report. 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 madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ woman ] ring. ring. progresso.

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we've just been through a period of truly fabulous gains for the stock market. with today being still one more example punctuated by hideous squalls of selling that make everyone doubt the resilience of the bull. and for years, despite repeated bear raids, the bull has come through for us. however, just because we're in a bull market doesn't mean there won't be plenty of instances where individual stocks go down and go down hard. when i was writing my new book "get rich carefully," i reviewed every trade made by my trust along with the bulletins we sound out at the same time explaining the rationale for each decision. you know what i found, when i see a stock spiralling lower, i tend to move too soon and buy it before the pain has come to an end or if the trust owns the stock that's getting pole axed, i tend to wait too long to sell it.

>> sell, sell, sell. >> again in the mistaken belief that the bottom has already arrived. these mistakes are not unique to me, not at all. most investors are far too eager to try to call a bottom. in the interest of letting you learn from my errors so you can avoid making the same misjudgments myself, i cataloged all the times where the trust bought a falling stock too soon or sold it too late. and i group them into seven patterns that i call false floors. because if you try to lean on them, you're going to fall right through them, and that will produce some hefty losses. what are these false floors and how can you avoid them? i'm going to warn you about two of them. two of the worst ones. and you can read about all seven in "get rich carefully" because i am, indeed, of course, a shameless tease. the first false floor, a big buyback. no matter what you might tell yourself, even a monster buyback

cannot put a real floor on a stock in a severe market wide downturn or worse, if the company itself isn't producing good numbers. doesn't matter. can't buy back stock for a losing company that's doing poorly. you might think that a huge buyback would be a terrific cushion for a stock. big down days, they're in there buying. management coming in, supporting the price with buying, the share price is getting hammered. i wish it were like that. while there are a few genuinely great buybacks that shrink the share count, most don't result in any significant shrinkage in the number of shares because at the same time, the company will be out there doling out big option grants. but even in a situation where you have a company that is shrinking its share count, the truth is, most buybacks are done in an insanely stupid manner. that will not help you if a stock is getting bent, spindled, or mutilated. think of it like this, executives know about running

companies but don't necessarily know anything about running money. and i've met many who seem to revel in their ignorance about their own stock. over the last few years, we've had a lot of days where the averages just got crushed usually because of discord in washington, or maybe trouble overseas or simply because of selling pressure from the s&p 500 futures or the double and triple levered etfs that spill over to so many stocks. these would be the perfect opportunities for a company to step in and buy back its own stock at a discount. everyone will win the loyal shareholders, the company itself will be using the repurchase authorization money in the most efficient way possible. in reality, most execs who i talk to seem oblivious to the declines or simply don't think they're worth trying to take advantage of. steams me. lots of managements seem to check their brains at the door of the stock exchange when it comes to doing their own buyback of their own stock. they think price doesn't matter. but the fact is, a company repurchasing its own stock isn't all that different from you or

me from a regular investor buying stock. in both cases, you want your buys to be effective. and you should want the best price possible. otherwise you're just wasting your fire power. with most buybacks, though, the fire power's wasted. either because the companies come in and make their purchases or give a carte blanche to fill their order. and no one is going to stick their neck out on a horrible day to make a big purchase. they're not incented to do so. if you own a stock that's getting hammered or you're thinking of buying one and you expect to be saved by a huge buyback, please be warned, that buyback will not save you. it is, indeed, a false floor. you're better off not buying, or if you own it yourself, simply selling the darn thing. >> sell, sell, sell! >> before your losses get bigger. very contrary view but it's what my bulletin showed me. how about the second false floor? this one's a really easy mistake

to make, and i've made it myself a number of times but none of us should make it again when you hear how embarrassing it is. no stock -- write this down. no stock is ever too cheap to sell. when i look back at my charitable trust, much to my chagrin, i was struck by how many times i used the phrase "too cheap to sell" as a justification to keep owning bad stocks that were shedding points left and right. sometimes i would reach out and buy a falling knife for the same bogus reason. take a pen and paper and write this down. there is no such thing as too cheap to sell. it doesn't exist. and more important, doesn't make any sense whatsoever. so if you hear yourself refusing to sell a stock because it's too cheap, i want you to take that as your own personal red flag and ask yourself if there might be something bigger going on that's crushing the company. you need to look beyond the fundamentals and search for something broader in the world. the reality is, cheap stocks, they can always get cheaper the

truth is, they're usually cheap for a reason. it's usually because they deserve to be hitting new lows. let me give you an example. back in february of 2010, the charitable trust was drawn to the big israeli company, the pharmaceutical that makes the generic drugs but as a major drug kicker in the form of copaxone multiple sclerosis medication. we thought it was attractive trading down to $58. well, it was selling for just 12 times earnings, a big growth stock, very cheap versus the historical average. that's what made this so excited. but kept on dropping, and by the time it traded down to the mid-40s, i learned that one of the competitors had been able to come up with a generic challenge to capaxone. something the management assured us couldn't happen. well, it did happen and while the generic wasn't going to be able to launch for a few more years, so teva's near term earnings were safe, i realized as soon as the generic hit the market in 2015, it would tear the earnings to shreds. as we've been watching this competitor develop its own

generic, we would've realized that on the out years which is what really matters, actually incredibly expensive. the stock supposed cheapness on the near term earnings turned out to be false, and the trust racked up a major loss. don't just watch out for my false floors, you should look at your records and see where you've held on to loser stocks too long to identify your own pitfalls. for now, though, remember a big buyback will not save you from big declines. and no stock is ever too cheap to sell. after the break, i'll try to save you some more money. coming up, cramer claus, he made a list and checked it

twice. now he's ready to reveal which stocks are nice. don't miss the companies that could make the season bright when cramer reveals his favorite stocking stuffers.

all week i've been sending out stocking stuffers. high-quality stocks that i think would make terrific holiday gifts for your children or anyone else you think could benefit from a profound lesson in how to financially be more responsible. granted, i'm sure your kids would rather get an ipad or kindle than a bunch of stocks. but stocks are the gift that keep on giving. they'll teach your kids about how when you invest your money it can become the most powerful tool for wealth creation out there, producing year after year of profits. that's why i take this idea seriously and so should you. i'll admit that making an actual gift of stock to your family is a christmas faux pas. almost as bad as someone giving a sweater. if you're going to do this, you need to make sure the stocks you use as stocking stuffers are stocks that will go higher in the not too distant future. even though it's a boring idea for a present, it gets exciting very fast if the recipient can actually watch something they own consistently appreciate in value. changes the equation.

hence why i'm only recommending my absolute favorite stocks for the series. the ones i like so much we own them for my charitable trust. so far, i've given you eight stocking stuffer names for the holidays. i've given you general electric and johnson controls. google and bank of america, ciena and apple and caterpillar. not only winners in 2013, that doesn't interest me. i don't care about where a stock's been, i care where it's going. tonight we're putting a bow on it. with our last pair of holiday goodies, health care company, johnson & johnson, and off-price retailer tjx. let's start with j & j. the world's largest health care company with three divisions, pharma, consumer, and diagnostics. j & j is an example of a company where i believe the parts are more than the combined whole. the shareholders, i believe, would benefit enormously from a breakup. in fact, i cite them as one of my potential breakup plays in

"get rich carefully" because i think this one could be a terrific winner if management does what i regard as the right thing. and, by the way, i believe management will do the right thing in part because the relatively new ceo is so committed to creating value. i'll admit that j & j has done pretty darn well, though, without any kind of breakup. the stock is up 31% for the year thanks in large part to the fabulous stewardship. but i think this thing could go so much higher if management would do the obvious thing and split j & j in three pieces, that would be a top-notch drug company with a terrific pipeline that grew sales at 10% clip in the most recent quarter. that's fabulous for big pharma, then you'd also have a slow-growing and incredibly consistent consumer products business, the number one play on over the counter drugs that could give you a bountiful dividend.

and last but not least, the medical device and diagnostic business is solid. but it's more inconsistent than the rest of the company. and i'm hearing it's for sale. i think all the components would get a higher valuation if the piece of the pie were just to stand on its own. remember what i said about breakups early earlier in the week? wall street is simply not built to handle these big conglomerates like j & j. analysts specialize in individual sectors and money managers want to own bite-size companies pure plays on a given business. j & j is a great american company. it's the definition of what's left of being called a blue chip. but if it were to break up the three resulting stocks would be a lot more appealing than the money management community than the current stock. of course, even if j & j doesn't follow my plan, it's worth owning, it can deliver revenue growth in the mid-single digits and high-single digits. plus the company has a great track record of raising the

dividend currently yields 2.9%. right now j & j sells for 2.8 times next year's earnings estimates. and i think the stock's going to go higher in 2014. i'd like to, of course, buy more if the stock would go below 90 where my trust intends to be able to sell some a little bit higher because it had become the largest position in the trust. now, for our final stocking stuffer, i want you to consider tjx. and that's the company behind tj maxx, marshalls and home goods. i've got one in the building i'm at in the morning, the street. i got a belt there. in an environment where retail has been inconsistent and with some really good and really bad, tjx stands out among the best. understands the consumers' new value branded mindset. sells brand-name merchandise at bargain basement prices at more than 2,600 stores across the u.s. the company can do that because of the business model and terrific execution. when other retailers need to offload their inventory, maybe too much after a holiday and they also have to bring in new merchandise, tjx swoops in and buys the stuff for cash, for far less than its retail value. then they turn around and sell

that same merchandise to you. it works because the company's fabulous at knowing what kind of the product the customer wants and buying excess inventory from the other retailers around the country. this model means that tjx can procure in a couple of weeks where a normal department store needs six to nine months. because they're not buying an already finished product from another store. that's what's so fast about this. not only a great concept, one that's been taking shares from likes of kohl's and jc penney, but an impressive growth story. still in the early innings in the expansion overseas with a quarter of the sales coming outside the u.s. plans to double in store count long-term with 50% growth in the countries where it currently operates as well as expansion in new countries, primarily in europe where they have really growing and profitable business, even during the downturn. i think tjx's home goods division, which represents 15% of the sales and has about 450 stores has enormous capacity to

grow here. it's a lower, less expensive william sonoma. these home good stores are doing incredibly well in an environment where consumers want hard goods, especially home-related ones. consistent, high-single digits same store sales. not just a place to get a huge porcelain plate with a turkey on it for thanksgiving. although, i got the huge porcelain plate with a turkey on it for thanksgiving there and everybody loved it. tjx has recently increased the online presence pretty dramatically with the launch of tjx.com. you'll never see her, i'm sure, it's going to be one more big hit. this has been an incredibly consistent retailer. over the last decade which includes the great recession, tjx has two quarters where the same store sales declined. the company raised the dividend the last 15 years. the stock keeps going higher and higher. plus the company's addicted to buying back stock and always seems to be in there buying on the rare tough days and shrinking the float. right now tjx trading at 19 times next year's earnings

estimates. right now the stock is less than two points off the 52-week high and probably a better price, maybe below 60 if you wait for the next market swoon. these two stocking stuffers could be riding a truly major one. johnson & johnson a classic candidate to get aboard the breakup train. and tjx is all about the consumer's new more value oriented consciousness. i like both stocks very much here and i think they are ideal gifts for those who don't mind their purchases are not returnable. frank in new york. frank, frank, frank? >> caller: boo-yah, mr. cramer. >> boo-yah, chief. >> caller: thank you and your staff for all you do. it really helps a lot. >> you're terrific for saying that. trying to do a good job every day. got a great staff. what's up?

>> caller: and you do. i would like your opinion on amgen. amgn, several of the late-stage development including a potential cholesterol drug which could generate up to $4 billion in -- >> frank, frank, frank -- listen. we're members of the four horse men of the beg pharma apocalypse and there's no room in there for amgen. we like gilead and regeneron and we're not deviating from those. can i go to sead in connecticut. >> caller: my question is about your thoughts on puma biotech. which is coming up on the clinical trials. your thoughts and let me know what you think about -- >> well, i know it spiked on that, but that's not good enough. anyone can see that from the chart. i have learned my lesson. when you opine without doing the most recent analysis on a small cap biotech, say under $3 billion, you don't know what you're talking about.

we have to come back and do much more homework driven analysis of puma. all right. all week we helped you with your stocking stuffers for gifts that keep on giving. look no further. look at this. ge, johnson controls, bank of america, ciena, xilinx, not all red hot, stocks you can still buy. stocks are great gifts for kids, and we wish you a very merry christmas.

new business owner, it would be one thing i've learned is my philosophy is real simple american express open forum is an on-line community, that helps our members connect and share ideas to make smart business decisions. if you mess up, fess up. be your partners best partner. we built it for our members, but it's open for everyone. there's not one way to do something. no details too small. american express open forum. this is what membership is.

this is what membership does.

it is time, it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, say the name of the stock, i tell you whether to buy or sell. play until this sound -- then the "lightning round" is over. are you ready skedaddy. time for the "lightning round" on cramer's "mad monemoney."

dan in ohio. dan? >> caller: hey, jim. >> yo. yo. >> caller: i'm looking at an energy stock at an eight-year low, pbr. >> yeah, you know, we did a technical analysis of that stock and i thought it actually had some game. looks like i was wrong and it's come back down. it's still so cheap, i can't walk away. but every brazilian stock is awful. let's go to dave in california. dave? >> caller: hey, jim. boo-yah. >> boo-yah, dave. >> caller: hey, jim, i'd like to ask you about denton. >> she's one of my bankable 21 ceos from my soon to be released book called "get rich carefully." i'm a buyer of ventas. carol in new york. carol? >> caller: boo-yah, cramer. >> yo-yo. >> caller: happy holidays. and i'd like to find out about rite aid. >> yes, it's absolutely true.

it was not as good as walgreens or cvs. did it deserve to fall like this? it reminds me of wendy's. i want to circle back and buy rite aid right here. let's take another. i want to go to gail in north carolina. >> caller: i'm curious why you think amc didn't do so well when it came on the open market. >> that's a great question. i thought it could be higher. but you know what the answer is, i still believe in my judgment. i think it goes up to 23. i think a lot of the bigger cap ipos like hilton, they didn't pop the premium, that's the opportunity. i'm sticking by my judgment that amc is inexpensive. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. >> merry christmas, a warm one to you, jim.

>> excellent. >> 78 degrees here. >> okay. it's miserable here. rub it in. >> let's go to audrey in florida. >> maybe you could do something about my sciatica since you have my back. >> i need you to go see dr. erickson, my chiropractor, she'll straighten you out. a change of epic proportions in the food and restaurant industries. in our house tofurky is a delicacy and it worked a couple of years ago. dad, what's in velveeta that it never goes bad? listen to me, it's not my fave, but if you slather anything in enough cranberry, it's okay. i've always been adamant you don't need a degree in -- i lost

my thought. julias in new york? julius? julius? brutus? portia, julius caesar. come on, man, i'm thinking with my feet.

well, that strong gdp number we got this morning was fabulous. if you want to get a terrific read on the employment situation in this country and more important the strength of the small business community, then there's no better source of information than paychex. that's the second largest payroll processor in the united states, specializes in small and medium-sized businesses. plus, the company also has an outsourced human resources division that is growing quite rapidly. paychex reported wednesday after the close and the company beat

wall street earnings estimates. stock immediately spiked. more important, the company's payroll services division grew at a 5% clip. it's the fastest growth since before the recession. with the bulk of the increase coming from higher revenue per check and more checks per client. on top of that, the human resources business is benefitting from the rollout of obama care. paychex has rolled out 75% this year and up 13% since we last spoke to the ceo at the beginning of october. even up here, though, paychex supports a 3% yield. the stock could keep roaring in 2014. don't take it from me, let's check in with marty musey. welcome back to "mad money." >> hi, jim, thanks for having me. >> marty, it happened this quarter, didn't it? the breakout quarter we've been waiting for? >> i think so.

we're really happy with the progress. obviously growth has accelerated as you mentioned. . service revenue up twice as much as it was in the first quarter. and the hrs revenue growth was 12%. really strong this quarter. >> were you surprised to see this? and where is it? geographic? is there certain industries? i mean, because this is such a huge jump. i've got to try to understand how it happened. >> yeah. it was really across the board. i think on the hrs side, 401(k) has been growing pretty well, and i think we're starting to see it pay off on the revenue side. we went after a larger market, more conversions of existing 401(k) plans. and that's really paid off for us. and the outsourcing, particularly our peo business has picked up because of obama care. more people looking to -- for help and assistance on what to do with all the confusion.

and that certainly has given us a little wind behind us, as well. >> marty, i know you guys were preparing all along for obama care, but did you also see the problems with the website coming and that's one of the reasons why you had a spike in business? >> well, i think, jim, you know, we were prepared right along. we have insurance products. some of that being delayed now till january 1st. but we also have the hr outsourcing team and our peo business dealing a lot with total hr. and that helped a lot with clients. we were prepared, had them trained up. and we have a great compliance department that stays on top of these things and trains our folks. i think we're able to get in front of a lot of clients, help them and that ended up increasing our sales a little bit in the second quarter. >> let's talk about float. there's a guy at jpmorgan that hasn't liked the stock. he's been wrong, frankly. says float income was flat ahead of our down 7.9 estimate on higher balances. is this something -- is this the beginning of that inflexion point, too? >> i think it is. we're at 10 million a quarter in float. and we really think we're at the bottom of the trough now where things start to turn as the timing changes now for us. and we've seen the estimates, i

think interest rates are going to go up slowly over time and i think that's going to be good for the economy and it's certainly going to be good for us. i think that's got nowhere to go but up. >> the stock has had a major move. is it still the right thing to continue to buy it? >> well, i certainly -- our plans are to continue to drive a lot of investor value and to have that stock continue to go up. the market is what it is. you know better than i, but we're going to certainly continue to drive a lot of growth in this business. we're excited about the progress and the acceleration of the growth. and we've got a lot of things going both in the u.s. now and in germany. we just finished an acquisition, we're starting up in brazil, you know, we feel really good about our chances for great growth in the future. >> we were out west recently, we pulled up with workday, a very good company. you've got a software service component coming. will there come a time when you've got to transfer all of your business to the web? to the cloud? or is it fine to have a hybrid?

>> i think it's -- we have a lot of our clients on software services now. we have the low-end product, we share payroll and right up to our mid market product. and a lot of that's on software as a service now. we have clients who use our very good mobility applications on their iphones and androids. and they go online. and they're also talking service at the same time. and even our service givers are on our offerings. so we're really there and i think it's always a matter of innovative technology combined with great service. that's what makes the difference. >> last question, marty. government seems to be out of the picture. we've got some -- let's say an end to the -- >> yeah, i think i do think consumer confidence is coming back. you saw a little bit of that in the restatement of the spend from the summer they announced today. i think as there's more consumer confidence, i also think lending is opening up a little bit. some of the indices we're looking at, it shows small business lending opening up. and i think small businesses start to come back. i've said before, we do see housing, new housing starting to come back, particularly in

certain markets like the southeast and the midwest. and as that comes back, a lot of jobs start coming around that. and as things, they start to feel more confidence in the government, you start to see housing come back, i really think it's going to start to pick up small business. >> well, this was a huge quarter, marty, thanks so much. it's been such a great ride. and i think it's going to continue to do so right through 2014 because the stuff, the good stuff's just beginning. thank you so much, president ask ceo of paychex. >> thanks, jim. >> it's been a big win, but it's actually just beginning. stay with paychex, stay with cramer.

great expectations isn't a book. it's a set-up! time talking about today's action in nike, because the wild trading is about what people expected versus what they got. it's hard to imagine that expectations being any higher than those going to the nike quarter. the newly minted member of the dow jones industrial average have been showing a level of momentum in china that had been spectacular -- and the u.s. was running very hot. when this charitable trust holding reported, we were braced for disappointment. sure enough, got it. delivered a terrific quarter, not terrific enough for the

rabid owners of this thing who wanted to see much better than expected numbers print when a stock is up 50% for the year. what was wrong? nothing. nike has strong demands, amazing performance of western europe. 15% revenue growth, 23% futures orders, that's the best predictor of how the company will do over the next six to nine months. china, however, grew only 5%. with 1% futures growth. that wasn't enough for those looking for the big upside surprise. the company's investing for the future, which meant more money not falling to the bottom line. expectations now come down, and to me that makes nike okay to buy. but the darn stock did fall 92 cents and that was a mighty painful thing on a big up day. if you read the release, or listened to management on the conference call, you would believe the stock would have

been up 10% not down over 10% as it was today. because of the big contracts they signed. one of the companies that is highly valued for the sales momentum and gain in the license revenue, key big metric showed a real slowdown. however, tibco is being hammered for the inconsistency. it's become hit or miss, on fire one quarter, cooled down the next. and investors are tired of hearing everything's fantastic. fantastic means shoo the the lights on every metric, which is not what occurred this quarter despite the company's protestations throughout the conference call otherwise. they are also weary of having to hear about sales force problems at the company. i mean, come on, growing pains? nobody cares, tibco. they don't want excuses, they want blow away results. tibco failed to deliver, but red hat did. here's an open software company that supports software on the cloud. the last quarter didn't show the kind of billings growth that the momentum investors expect. so they whacked it and whacked it some more. jim whitehurst came on "mad money" and told us here that the business is going to be smoking in 2014 and the way the firm accounts obscured what could be

tremendous strength. i gave whitehurst the benefit of the doubt because he seemed totally heart felt and bummed that people didn't get it. and he wanted people to run to not from the stock which is the reason we bought it aggressively for my charitable trust into that weakness. sure enough, everything you said on "mad money" about the real nature of the previous quarter was right. and the stock soared 14.5% higher today. people were too cynical about this fascinating company that's part of salesforce.com and so many ventures. yet, people had too high of expectations for nike and expectations of consistency for tibco and, both, well, disappointed. red had was loathed for that last quarter miss and had no expectations whatsoever. those are the kinds of stories you must also always be on the lookout for especially when the quarter of lowered expectations wasn't that bad at all. stay with cramer.

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that presented itself today. nike was a good quarter. they're spending a lot of money. i believe china reaccelerates in 2014. this reminds me of disney when it fell from 66 to 63 and went right to 72. that's nike. there's always a bull market somewhere, i promise to try to find it for you here on "mad money." i'm jim cramer and i'll see you monday! i hit a huge swap meet... this is like uncharted territory. looking for the perfect ride. how much you want? >> i'll take 90,000. >> but a simple paint job... wait a minute. has me seeing red. this was supposed to go all the way to the end. [groans] and when a big buyer heads to lubbock, i need to reel him in... >> oh, yeah, that catches my eye. >> before he skips town empty-handed. >> i don't know, that color... almost looks like a rust red. >> i need some aspirin. my name is jeff allen. i buy, fix, and flip cars. but i don't do it alone. i've got perry...