> 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 trying to save you a little money. my job, not just to entertain, but to educate and teach. call me at i-800-cnbc. people keep asking, what keeps you up at night, cramer? that's a great question to ask. nasdaq declined 0.23%.

the s&p did rise 0.03%. what keeps me up at night is a cup of coffee after 9:00 a.m. close friends of mine know i will not go to sleep that night and will just stay up, not even trying to sleep. with caffeine that late in the day, it's just hopeless for me. there's some tmi about me that you might not know, which, omg, means too much information. thank you, daughters, for teaching me that. seriously, what am i worried about in this market? first, i am no permabull, as many people think i am, because i've been bullish in a period where we've had a tremendous bull market. that doesn't mean i've been wrong, i've been wrong about some things, but when you're bullish during a bull market, generally speaking, that's called being right. i like being right so i bridle at the ridiculous charges of permabullishness. let me tick down what's bothering me and testing my

conviction that we'll have another good year. something that the statisticians should happen, given the fact that we've almost always been up following a blowout year like 2013. first concern, no one else is thinking about much more, but i am, washington. as i say in the first line of "get rich carefully," my new book, which i'm signing tonight, i know we are in for still another year during which washington provides no rest for the weary. this book is about getting rich carefully. washington has read a serial novel about bankrupting us slowly. yet, lately, have you noticed, it's been quiet down there on the shores of the potomac. too quiet. do they really think they've gone away as an impediment to our savings? do they think the budget deal that avoided a shutdown is going to extend to the debt ceiling fight that's lurking a month from now? we know democrats and republicans can't get along in extending even unemployment benefits. isn't it just too juicy an issue to not to go to bat against the debt ceiling, when the issue of government debt resonates with the republican base? i think it is. one of my hopes here is that

2014 is an election year, and perhaps, just perhaps, our leaders will realize a fight over the debt ceiling could hurt their electoral chances, because it could hurt the economy. but i'm still worried about that and i'm also concerned about the possibility that the affordable care act is going to cause some fear, rightly or wrongly, among small businesses that do the bulk of hiring in this country, that we could slip back into maybe a slowdown, and the economy won't build on that head of steam that we've got going since the government left the picture, although, you know, the fed seems to think we have a little bit of a head of steam going. i don't want that to go away. my second concern, yes, this is a big one, okay? i've got a bigger mallet, because i missed last time, china! do you know that i can't think of a single number recently that's been emanating as any good at all from china? the one i monitor most closely is the baltic freight index, which is a measure of the rates to ship hard goods. virtually anything but oil. why does it seem to tick down

every day? riddle me that. i don't like it, not at all. i don't like the fact that copper, which you can follow up by hitting up the jjc seems to be drifting into oblivion. my charitable trust owns this stock that's just been terrible. it's called vale. i used to call it jerry vale. it's a giant iron ore producer. that hasn't had a good day in ages and might not in the future. you know china's slowing. we'll hear from alcoa's ceo later in the show. he did confirm that he sees weakness in the chinese economy. and the chinese stock market has been the worst of the major indices i follow. we cannot have china fall off the grid! that means many of our stocks that have been rallying off a return of global, not just u.s. growth, might not be able to hit their numbers. sure, our economy is the leader in the world right now. it is, indeed, the locomotive, but china's far from being the caboose. we need to see some commodity pickup.

nothing wrong with oil being down. but the precipitous nature of this decline makes me feel maybe things have gotten weaker as of late. and the linchpin of the bull market has been totally lost here and they seem to be going lower. benefits of lower oil right now, well, it's going to eventually down the road be good, right? but at the moment, the price of crude is showing a surprising lack of strength that is disconcerting. fourth, i'm going to talk about this later, but that was disturbing itself to see family dollar, l brands, victoria's secret partners, the old limit, sears, bed bath and beyond, and most shockingly, a preannouncement from five below of a miss of gigantic proportions, almost seemed to verify the weakness we saw in the stock of the container store yesterday, something we'll talk about later in the show. these, i find these really, really bothering me. see, we're all about execution on "mad money," but we're not oblivious to how tough it can be to execute in an economy that can be faltering.

that's why we cheer when macy's reported terrific numbers, something the ceo can triumph over. we love that costco can rally on a terrific month of sales. that's a good sign. but now these two seem like outliers and maybe abercrombie, because they lowered estimates so many times, they seem like good outliers in a sea of dismal retailing performance. think about it, the people at l brands, five below, bed bath and container store, alex smith, they are buffoons, although sears and family dollars have been serial missers of earnings. all of these companies, it's obviously worrisome if you think there's going to be more consumer spending, which we need. two-thirds of the economy is consumer spending. it's possible that the missing piece of the puzzle is online. macy's has a terrific web presence and the others don't, at least not yet. but it doesn't seem right that so many quality companies can't reach expectations they set for themselves. fifth and finally, why can't the real estate investment trust and master limited partnerships sustain any advances? doesn't that mean that higher interest rates could beckon? isn't that always what they say? perhaps these kinds of stocks with their above-average yields are overreacting, and when we see the unemployment number

tomorrow maybe we'll recognize that and things will be good. i'm not claiming we'll have a big correction here. i am saying that as we embark on earnings season, these issues could be a chink in the bull's armor. understand again, this is not a bull fight, where it always seems to end badly for that particular animal. and i'm not worried about what everyone seems to be worried about, namely the fed's next move. come on! can i just stipulate something? hasn't the fed vindicated itself yet enough in these last five years to stop being an endless source of worry and chatter? i'm tired of it, how about you? i never worry about what everyone else is worried about. you know why? when you're worried about what everyone else is worried about, i call that a sucker's game. here's the bottom line. they're clouds. clouds which were on the horizon in 2013, not on the horizon anymore. they're right on top of us, and ignoring the weather, it's always a foolish thing to do. how about robert in hawaii, please? robert? >> caller: aloha, jim!

this is a call from beautiful sunny, warm, honolulu, hawaii. jim, what's your take on 3-d systems, especially in light of their recently toy maker acquisition? thank you. >> i read the research on 3-d systems, and these guys have all decided that these companies are the greatest thing since sliced bread. i've got to tell you, i personally, i cannot count in this getting into 3d at 98. i know on twitter, people will say i'm a coward or a fool or whatever. hey, you know what, i liked it lower. i can't get into it right here, i'm sorry. i can't. it's just too expensive for me. sorry! can i go to pete in new york, please? pete?! >> caller: hey, jim, how are you? >> i'm all right, how about you, pete? >> caller: i'm good. i want to talk to you about elon musk's baby, solar city. they got an upgrade today. is that the play on solar or stick with an etf? >> i'm not a big believer in this. we had first solar in.

that's an inexpensive story. solar city has momentum. i said solar city and tesla, they're cult stocks, because they just rely on momentum. amazon is a cult stock, but i actually like the stock. and we know twitter is a cult stock. and why do i say cult stock? you can't use earnings per share or revenue growth, you go with momentum growth. and that is not for me, but i recognize the model of solarcity, which involves residential solar panels on your roof. it's a good model, i just can't cotton to it. what keeps me up at night? ella said it best, stormy weather. the gathering clouds that we saw in 2013 now look like they could do some raining in 2014. stay with us. coming up, tarnished? they're the unofficial kickoff to earnings season, but it's the criminal investigation into one of alcoa's subsidiaries that's taken the front page instead. what's it mean for this company going forward? cramer talks to its ceo ahead. and later, retail rumble. daily deals for moms at zulily, organization at the container

store, two big-time shops and fresh-faced ipos. but in the battle between containers and kids, which stock comes out on top? only one ticker will survive this all-out slugfest. stick around to find out. plus, top coat? specialty chemicals manufacturer, rpm international is behind some big-time consumer and industrial construction brands. can it rebound in housing and american industry continue to drive its growth, or will its innovations fail to stick? find out just ahead. 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 i-800-743-cnbc. miss something?

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you want to get a terrific read on the global economy, you can't go wrong by listening to

alcoa's conference call, captained by the ceo and chairman of a company that has its fingers in everything from turbines to soda cans. during the fourth quarter when industrials surged, alcoa was the best-performing stock in the s&p 500, up 28% in just three months. but it's giving up some of those gains this evening, as the company posted a 2 cent earnings on a 6 cent basis, although its revenues did come in higher than expected, despite a 7% decline in the prices of aluminum. the stock may be weak, but there are some real positives. alcoa's business saw a 27% year over year increase in after-tax operating income. the company still has a ton of cash. the balance sheet hasn't been this good since 2006. the company at last put behind its foreign corrupt practice act violation, although not before agreeing to a settlement it will pay out over the next several years' time. let's talk to klaus kleinfeld. welcome back to "mad money". >> hello, jim. hi.

>> all right, klaus, before we get to the fundamentals, there was big news about alcoa paying $384 million to resolve -- $1 million, to resolve a foreign bribery probe. does this put the whole thing behind you? and i'm sure some people would say, aha, that's why they didn't make the six cent share estimate. that is not the case, right? >> that is not the case, and it does put the whole thing behind us. and we welcome the settlement. we were able to negotiate a deal that we can pay this over four years and five installments, so this is what matters. we can now clear the road here and go forward with continuing the transformation of the company, and that's well underway. >> and my understanding is that you negotiated this. you were not part of what happened, but you were part of the solution. >> well, when the allegations came on, we heard about it in 2008. we immediately responded, worked with the authorities, put an independent community together, got outside resources to investigate, and the good news

is we came to to a resolution today. that's the most important thing that matters. >> all right, klaus. let's talk about the two companies in alcoa. there's an alcoa that prints an earnings number, an alcoa that makes aluminum, and then there is alcoa that is the engineered and global product that we all really like, which is the one that we all want a part of, the global processing that goes into airlines, goes into automotive, goes into heavy truck, goes into beverage can. if i take a snapshot of those two businesses, where are you in terms of your happiness level with each one of those? >> well, actually, when you look at the strategy that we put out and the height of the downturn, of saying, are we going to grow our value at businesses? it's working out. and we said, also, we're going to come down on the cost curve, on the commodity businesses, right? so you see today, 57% of all of the revenues of the company, right, are coming from value added businesses. and they make up 80% of the segment profits, right? that's fantastic. then you look at the downstream business. our engineered products and

solutions business. you can look at the fourth quarter and see record performance in the fourth quarter. look at the whole year and see 20% up on profitability, year to year. so that's fantastic, right? you can also look at the other part, which is the commodity business, where, unfortunately, we can't influence where metal price is going, but we can control those things that we have under our own control. and you can see that we are doing that. we're doing that in a very, very good way. again, we have been able to get productivity in there. we've been able to come down on the cost curve. so the strategy is working out. >> okay. you've got a fabulous page, i don't have this one yet, because of the expedience of the interview. but what you talked about last quarter was growth continues in global end markets. i'm going to hit you in a lightning round on how they're doing. i'm going to start first, aerospace, how does that look versus the 9% to 10% global that you said last time? >> looks good. i mean, we have just had a november, the dubai air show,

it's been unbelievable. boeing got the largest ever contract and airbus also got a large, large contract, $20 billion there. so looking very, very well. a lot of demand there from southeast asia and the middle east, you know? so that continues to look very, very good. >> okay. now, automotive, where i know the f-150, you actually had to relocate and open a new plant because of the demand. automotive, 2% to 5% production growth in north america last time. overall, 1 to 4, with china, 9 to 11. china, i imagine, revised down, maybe north america, revised up? >> north america looks very, very good. i mean, you've seen -- you've probably not seen the numbers in the last year. production continues to go up, and that's what matters most to us. we still see pent-up demand in there, because the average age of the fleet today is higher than it was in the past. so good news to come, in my view, on u.s. automotive. and the greatest news there is that there's a changeover to lightweighting in the industry going on. we've concluded our first auto

expansion in davenport. and as we said, we are going to complete it by end of last year, which we did. the first coil has rolled off. it's in the hands of the customer for inspection. next week, the detroit auto show is coming up and i think we're going to see a lot of exciting things there. particularly for the aluminum industry. >> klaus, one of the things you have told me over and over again, we must see a return to commercial building construction in our country before we really can say that our recovery is more certain. did it start the fourth quarter? >> it did. and we've seen the first green shots, actually, end of last year, and we believe it continues, all the indicators are there from architectural building numbers, new housing starts, all point in the right direction. i'm relatively optimistic that we see a pickup there, and it's a large market and an important one for us with a lot of innovation and a very strong positioning from our end on many, many products there. >> klaus, we're a little worried about china. it seems like the baltic freight is going down, copper's going

down. it just doesn't seem like it can maintain the momentum that it had going into last year's fourth quarter. you're seeing that same degradation? >> well, look, it's always a problem with the discussion on china, because i believe that china's growth is going to slow down a little bit. but you have to put it into a relative frame. i believe that in 2013, we probably saw a 7.6% overall gdp growth, and my projection for next year is probably around 7.3% growth. now, if you apply that on a much larger growth, the absolute number, the absolute growth number is higher for next year. so i continue to believe we're going to see quite nice growth coming from china. we will, for our industry, see that china is not made from the structural situation, to be strong in the aluminum business. and there's a number of indications that we carefully watch, that china might clamp

down on more of their capacity, and curtail, particularly, the dirty, expensive capacity that they are holding up unnaturally through subsidiaries. >> last question, klaus. when i look at the company, i like to look at a balance sheet. this balance sheet is substantially better, i believe, than when you took office. maybe because of working capital, maybe because of the 60,000 employees, you've been able to produce more from each. but can i judge your company from the amount of cash that is building on that balance sheet right now? >> this has been done very, very purposely. when the crisis hit, we said, look, i mean, you need to run the company for cash. that's the most important thing that matters. and you see that reflected. and if you want to pick out one number there, you'd look at the net debt. that lowest number that we've seen since 2006. the $1.4 billion of free cash flow on the books. you know, we, again, came down on working capital. if you look at a longer time frame, we've cut the working

capital days almost into half. that, alone, has produced $1.4 billion in additional cash. and as i said before, i mean, this is not something that an executive can do. this is something that the 60,000 plus all around the world do every day, looking at inventory, bringing that down, collecting the money, paying it at the right point in time, and i think that's very good and gives you a good foundation what will continue to drive the company in the right direction on a good operational structure. >> klaus, thank you so much for coming on "mad money." >> a pleasure, jim. >> okay. that's klaus kleinfeld. alcoa stock down in the after-hours, but take a look. it's not that easy to make that kind of determination. stay with cramer. coming up, do kids or containers take the top spot in cramer's slugfest? the face-off is just ahead.

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♪ this magic moment fifteen minutes could save you fifteen percent or more on car insurance. yeah. everybody knows that. did you know there is an oldest trick in the book? what? trick number one. look-est over there. ha ha. made-est thou look. so end-eth the trick. hey.... yes.... geico. fifteen minutes could save you... well, you know. what do you with some of these recent red-hot ipos? tonight i want to take a look at a pair of retailers that have come public to incredible enthusiasm in the last three months. one a traditional bricks and mortar operator and one a very nontraditional online play. the bricks and mortar name is

the container store, tcs, which came public on halloween, trick or treat, and opened up one or more percent on its first day of trading and kept roaring higher until it reported tuesday after the close. down more than $6 or 14.8% yesterday, along with a 91 cent decline today. then there's zulily. that's an ecommerce company that offers all sorts of flash sales and daily deals on children's apparel, toys, clothes, and baby gear for moms. it rallied on its first day of trading and climbed another 12% in the aftermarket. these are two turbo charged growth stocks, no question. and while the container store did disappoint with its first quarter out of the gate, the long-term expansion story to me seems very intact. how do we judge these recent high-growth ipos? simply. in "get rich carefully," which i'll be signing tonight at the barnes & noble in paramus, new jersey, after the show. i lay out a ten-point prism for analyzing growth stocks like these two.

i talk about these two examples in my book, amazon and google. tonight i want to show you i can apply it to anybody. in many ways, these momentum stocks are a cohort of their own, which is why it makes so much sense to compare a traditional retailer with an internet-based flash player. this is extremely important, hence, why i keep explaining to you. i want you to learn how to value growth stocks. let's go through the growth checklist on these two. first off, there's a potential for multi-year growth. is there? do we have it? and can we put a value on that growth? the container store is 63 stores in 22 states, and these stores are the place to go if you need storage, right, you know, organization products, women's shoes fit right into -- and boots, they fit right into these shelves. they swing. management believes they can only expand the store count to 300 locations, more than a

four-fold increase from where they are now. the container store can keep growing as far as the eye can see. and even though the quarter didn't live up to the market's high expectations, the same-store sales were better than expected, up 4.7%. what hurt it was traffic actually declined, which was the thing that really scared people into dumping the stock. the container store has a long runway of growth that's also very easy to see, with its regional to national expansion story, which you know we like very much on "mad money." zulily, on the other hand, has a lot more growth, but less visibility. you know that an ecommerce, as a category, it's on fire, right? as more and more people shop online. i saw that with macy's, even with a good quarter. if the first nine months of last year, zulily more than doubled it revenues. they have more than 2.6 million active customers, i think they could get up to over twice that, 5.8 million, in a couple years time. and by 2016, the category that zulily serves might represent a quarter of what could be a $250 billion ecommerce market. so i'm giving the container

store seven and zulily is going to get an eight. remember, a ten-point scale. second, is the total addressable market, or tam, big enough for the growth to be sustained? the container store is by nature limited. it's growing at a 4% clip. that leaves this $1.7 billion company plenty of room to expand, but nothing really to get excited about. zulily, however, has a huge addressable market. the entire mom demographic, which is woefully underserved by the major ecommerce players. there are 39 million moms in this country. zulily currently only selling to about 7% of them. this could get much bigger. i give the container store a five year, because it only sells into storage and organization, while zulily get a nine, because they're tapping into a gigantic and underserved market. third, can the company stay competitive? while the container store doesn't have any direct pure play competitors, the fact is you can find storage and organization products at a ton of other markets and retailers, both online and offline. that said, the company so far

has been very good at taking share from those competitors and attracting high-end consumers. have you ever talked to anybody who's been there, they love it. but don't forget, traffic was down in the latest quarter, a head scratcher. maybe tcs is losing an edge. i don't know. as for zulily, there is a lot of competition online, but these guys have a brilliant model with flash sales. a website that has a fun, kind of window shopping feel. check it out. here i give the container store a five because of the quarter that i didn't like, and zulily gets a seven. fourth, can the company return capital to shareholders or does it make more sense to plow the money back into the growth business? these are pretty good investment stories. so give them both an eight. fifth, can they expand internationally? the container store is still focused on going from regional to national. very early on in the united states. they might take the concept overseas. elfa, their modular shelving system has sales in over 30 countries. but zulily plans to take over

the world, ala amazon. and because this is an online retailer growing overseas, should be relatively cheap for them. so okay, container store, five. zulily, eight. number six, balance sheet. container store was taken public by a private equity firm, so it has a fairly high debt level, although they're cleaning this up. that's a positive. zulily's balance sheet is pristine, no debt, $200 million in cash. is the stock expensive on the out years, further on in time? the container store is growing earnings at 28% clip. but even after the recent sell-off, it's not exactly cheap. zulily has a 50% long-term growth rate. i could see it earning over a dollar per share in a few years' time. it might only be trading at 42 times the estimate at 2013, which is not all that pricey. six points for the container store, eight for zulily. number eight, do they have the right management? i believe in the people running both companies. the chairman and ceo of the container store cofounded the

business in 1978 and he is a true visionary when it comes to treating his associates well and is a dynamite merchant. as for zulily, the ceo came from blue nile, the game-changing online jewelry retailer that revolutionized the way people buy diamonds. seven for zulily, nine for container store. number nine. do they need macroeconomic growth to make the numbers? container store, yes, they're somewhat cyclical. zulily is more secular, focused on delivering maximum value to their customers. i think they could do okay in a downturn. and last, but certainly not least, could the companies grow their margins? you know how people care about margins on wall street. we're seeing this at the container store, where the gross margin increased by six basis points. and we're seeing it from zulily, where the gross margin is rising. but the operating margin is exploding higher. they really have to work at it to compete with the company's flash sale model, and i don't think it would be worth it for them. so i give these two companies a pair of sevens. here's the bottom line.

i think zulily is worth owning, although i think you should wait for a pullback before you buy. as for the container store, it's in the penalty box after blowing its first quarter out of the chute as a public company. and we have to see if it can deliver against expectations in a more solid way next quarter, before we could ever pull the trigger. jeremy in nebraska, jeremy? >> caller: hi, jim. a big boo-yah from omaha, nebraska, and thank you for taking my call. >> of course, thank you. >> caller: the stock i wanted to ask you about is scss, or select comfort. >> yeah. go ahead. i'm sorry. >> caller: that's all right. on january 6th, the stock declined 19%. however, if the housing market remains favorable, one would think that would fuel the need for new mattresses. what is your take on the situation? >> no. my rules are when you have a preannouncement of that great magnitude, you've got to wait a full quarter before you would even think about pulling the trigger on that stock. i want you to stay away from it, sir. can i go to lenny in florida,

please? lenny? >> caller: how you doing, mr. cramer? i just want to say, i love your show. >> thank you. >> caller: my question for you, jcpenney, i own it, i was down a little bit, should i hold it, sell it and cut my losses? >> we only care about where a stock is going from on "mad money," not where it's been. i think if this stock could go up 10%, i would sell it. why? because there are companies like macy's that are eviscerating jcpenney. zulily and the container store, two fresh-faced ipos with potential for turbo growth. until tcs delivers a winning quarter, stay away. zulily, it's okay on a pullback. stay with cramer.

it is time, it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the name of the stock, i don't know the name of the caller or the

stock, when we play this sound, then the "lightning round" is over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." why don't we start with robert in california? >> caller: how you doing today? >> fine, how about you? >> caller: fine, thank you. my wife wants to let you know that you have a kind and caring face, and we also wanted to know about barracuda networks for a long-term investment. >> well, first, thank you. tell your wife thank you. that's the first time anyone's ever said that about me. look, i like barracuda, because i like internet firewall. i love that sector, but my favorite is palo alto networks. come on the show, and i really like what they have to say. i need to go to carolyn in new jersey. carolyn? >> caller: yes, jim? >> yes, carolyn? >> caller: i watch your show every night and i thank you for taking my call. i want to know your thoughts on icpt. >> anytime you have any sort of test, any sort of one of these

fda, what you're doing is a staged rollout and it turns out that things are so much better, they have to break up the test, that you are going to get a move like today, although this was pretty shattering. this is up 203 points. this is why i always tell you, you can speculate in biotech and i'll bless it. but after that kind of move, ka-ching, ka-ching. i want two-thirds of it sold. let the rest be warranted. because we've seen a couple of gains like this before and they do get pulled back. i've got to be careful. now let's go to michelle in michigan. michelle? >> caller: hi, jim! i own galina, gale, with the huge growth that it's had, is this a hold or a sell? >> that's a late stage oncology drug. just like intercept, before intercept, it intercepted that great home run. something big could happen here. that's why i like to speculate. could i go to fred in ohio? fred? >> caller: my question is about west port innovations. it seems to be the number one technology company in the transportation market, but yet the stock's going nowhere.

>> if you listened yesterday, what the great ceo of lng basically said was that the transition is going to occur, but it's occurring much more slowly. there's also a problem with the cummins engine being delayed and the whole segment is still under a lot of pressure. i know that the steel ceo came on and thought it was all going to be adopted, but westport to me is just too speculative. it's just not happening fast enough. i know mr. demers will disagree with me, but it's my call. let's go to steve in tennessee. steve? >> caller: hey, jim. i had a stock the last 30% the next few days, phillips 66. >> the refiner's doing incredibly well because of the glut in domestic versus what they can sell overseas. remember, we refine oil in this country, the refiners buy it at a low price and can sell it overseas at high low price. i would not buy it here, but if i owned it and it pulled back a little bit, i would buy it in a general market pullback, but it is a buy.

can i go to james in virginia? james? >> caller: i'm asking about hexel, hxl. >> that's part of the aerospace. you get boeing, you get hexcel. these are all going higher. mike in new york? >> caller: boo-yah, jimmy. i'll see you at costco this saturday. >> thank you. i wish you were seeing me at barnes & noble after the show at paramus, but i'll take costco any day. >> i got intel for you. >> i see downgrades of arm holdings, upgrades of intel, why? because intel is doing everything right now, to be able to get that cell phone business. i want to go back, just one more second again. i feel like what we have to do with these refiners is recognize they're buys, but we can get pullbacks, because they're just so, so high. they're steaming. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is sponsored by td ameritrade.

coming up, top coat? >> rust-oleum, dap, plastic wood. you're probably familiar with rpm international's brands, but should you get to know its stock? find out when cramer talks to the ceo. and it's a look at some and it's a look at some innovative products, just ahead. r

we've reached that point in the business cycle where it really pays to own the stocks of companies that do dramatically better when the economy puts on a full head of steam, which is why i wanted to introduce you to rpm international. just rpm for all you home gamers. maker of paints, coatings, roofing systems, sealants and adhesives for both consumers and maybe more importantly, industrial end markets. 40% are for residential market, with another 20% for the commercial construction. you might know them as rust-oleum, dap. rpm just reported yesterday morning and the company delivered a terrific quarter again, with earnings coming in at 48 cents per share. revenues in line at plus 0.53% year over year. on top of that, rpm is seeing healthy adoption of its new products, there are many.

its european business, which so many were so worried about, is growing nicely, and the company gave solid guidance for its full 2014 fiscal year. the stock jumped. is this an overlooked story that's worth diving into here? let's check in with frank saltman, the chairman and ceo of rpm international, to find out more about how his company is doing and where it's headed. mr. saltzman, welcome back to "mad money." your stock has almost doubled since we saw you last. and i had great faith because your dividend was so big and i love dividends and it seemed to safe. talk about what it's meant to invest in your company over the long haul. >> rpm was founded by my grandfather in 1947. he died suddenly. my father took over an $11 million business. in 1973, he came upon the idea of a dividend, and a dividend that could grow year by year, as a way to return value to shareholders. since 1973 -- sorry, i said -- since '73, when rpm was a $25 million business, our strategy and structures allowed us to

grow to $4.1 billion and deliver $1.6 billion of after-tax capital returned to our shareholders in a growing dividend. and so it's been a very powerful model for us. today, our dividend yields about 2.3%. if you bought our stock ten years ago, not only would you have a stock that's gone from the teens to 42, but you'd have a 7.5% yield today, in cash, on your original investment. >> and that's just as important, because i want people to go for the long-term. what is it that you do that people don't realize? they think of tech, they think of pc, cell phones, everyone says, blah. how about a technology that could make it so the way we build buildings is going to be revolutionized? that's something you have in your pocket, basically. >> absolutely. our businesses are very focused on innovation, whether we acquire that innovation, innovate it internally, or license it. you're talking about tough strand. tough strand is a patented technology, patented by our chemical company. it is a combination of polyethylene and polyester fibers.

these products will replace rebar -- >> the heavy rebar that nobody can lift, only machines? >> in a cubic yard of cement, typically you'll have 300 pounds of rebar. this product, to the tune of three to five pounds, can replace that 300 pounds of rebar, substantially more cost efficient, no corrosion that you have in rebar, and also, massively time saving for contractors, because this will do the job that rebar does in 30% to 40% of the applications, and this will revolutionize concrete in the next decade. >> to me, this is a product that could be worth the whole company. i'm trying to figure out how -- i've never seen it or heard of it. how can it be? rebar is fundamental to the steel industry. what's going to happen to the steel industry when this comes out? >> sure, tough strand is the name of the product. companies have been trying for some time to replace rebar. so the first product was basically steel fibers. this replaces the steel fibers. it's much better and it's patented.

we've been working on it for about five years and it was introduced to the market in the past year. >> we all know rust-oleum and we know dap, but you've got things like never wet. this is about the technology that we can use at home, and certainly right now industrial, but maybe one day in the future. can you show us? >> sure. never wet -- this is an rpm hat. never wet is a product that you spray it on, it's a two-component product. step one, you put on, wait 30 minutes, put on step two, wait 30 minutes, and you end up with a super hydrophobic treatment that sheds water. it works best in concrete, steel, exterior products. we've got a couple treated products here. this is what happens with, for instance, some white fabric, on an untreated product. >> okay. here's what happens. a sneaker with never wet.

here's what happens with never wet. it literally just sheds. people are using this on boots and shoes. >> on his hoodie, right? a billion-dollar hoodie. >> there's the difference. it's actually not meant for fabric other than boots and shoes and things like that yet. we're working on it. we had a license for this product in north america. we have now negotiated a global license. and i think the real opportunity for us is to take this technology into oem applications. >> the last thing i wanted to discuss, where are we in terms of the do-it-yourself guy and the housing market in this country? because you are levered to that to some degree. >> absolutely. it's been apparent to us for the last four to six quarters, that while we are not in any economic boom, and we are looking forward to that coming back to our industrial businesses, americans are secure in their jobs and homes again. they are spending on their homes, they're investing. you can see that in the segment of retail that's doing well, and we serve that. all the major home centers, all the discounters, so you are seeing people reinvesting in their homes. we are the leader in small project paint and patch repair, touchup and repair, and it's

right in our wheelhouse, and we see that continuing. >> well, i've got to tell you. it's been a great stock for people who watch the show and it's going to continue to be so. thanks so much to frank sullivan, chairman and ceo of rpm international, real technology for you. stay with cramer. [ male announcer ] this is the story of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall off roble avenue. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did.

in a little dorm room -- 2713. ♪ this magic moment ♪

maybe macy's had more taste between thanksgiving and

christmas than other retailers. maybe the weather was better for their stores than for their competitors across the street. you've got to shake your head when you first examine the macy's numbers, because they seem too good to be true. especially considering the odd contrast between bed bath and beyond, the consistently good retailer that reported disappointing numbers last night. same store sales not even half of what macy's was able to bang down. when you sat down with macy's ceo, terry lundgren, as i have many times, you know he saw a lot more changes coming to retail than anyone else, including bed bath. he understood that if macy's was going to be successful in the 21st century retailer, it would have to change radically. he decided that macy's should go national when it came to purchasing clout for suppliers, but local when it comes to you, the customer. i think the skeptical investor class didn't believe lundgren when he stressed his my macy's. that's where the amalgam of local stores. remember, macy's was cobbled together in an automaton like way, initially, it was a bunch of local retailers under one nationwide roof.

that was an excellent business decision when it comes to being able to wrangle with the vf corps and pvhs of the world. so lundgren reinvented the paradigm in a way that sears or kohl's or walmart or target could only dream of. tailoring the merchandise for the locale as the separate chains used to do before they were required. it's working. more important, perhaps, was lundgren's very impressive decision to go omnichannel and mean it. meaning that macy's wasn't going to offer great premium prices for premium proprietary products on the web. you can pick it up, or they can send it to you or you can return it using the store presence. for those of us who shop online, the bane of our existence is the return. if we don't like it what are we supposed to do? how many things do you have in your house that you bought online, ended up not liking, but kept anyway because it's too darned hard to return it? macy's local stores are the solution to that problem, like they've figured out how to get

products to you from another store if the local one is out of the product you want. making tech do more with less, good for earnings. and just like everything else macy's does, the shareholders will reap the reward. as one of the best cfos out there, karen will be able to plow the savings into the right part of the capital structure. that's why she's so good. even if the buyback only sells for 11 times this year's earnings estimates. bed bath on the other hand seems to have been caught flatfooted by the internet. still has no real strategy. their answer to the slash in same-store sales growth, opaque, perhaps course more couponing. bbby is a terrific bricks and mortar retailer, but that's not enough anymore in a world that's so rapidly migrating to the web. how good is lundgren? the retail stores have been going down since howard schultz from starbucks told us about a secular decline in mall shopping at holiday time. macy's saw it too and it's come up with its own strategy to combat that decline in a positive way for the shopper,

and more important in cramerica, you, the shareholders. stick with cramer. so ally bank has a that won't trap me in a rate. that's correct. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally.

okay, two bad, one good. what can i say? abercrombie didn't expect this. they had cut numbers so much,

they finally beat them. the stock is soaring. sears, so horrendous. what can i say? and five below, i'm puzzled. i thought the five below business model was very good. i've got to rethink everything five below. i like to say, there's always a bull market somewhere, i promise to try to find it just for you here on "mad money." i'm jim cramer and i will see you tomorrow! >> narrator: in this episode of "american greed"... in grand rapids, michael vorce has money to burn. >> he was going to bars and tipping $1,000. he was buying expensive clothes, up to $20,000 at one visit. >> narrator: he drives fast cars and fast boats. >> he'd load the boat up with girls and go out and party. he was living the lifestyle. young guy, lots of money, throwing it around. >> narrator: he says he has a fleet of more than 50 luxury yachts. he has the papers to prove it. that's all he needs to con trusting bank loan offics