>> we have a storm coming. upl, my pit boss turned me on to this. not up today. but going up higher. >> i'm melissa lee. thank you for watching. see you tomorrow at tomorrow a. meantime, "mad money" with jim cramer starts right now. >> my mission is simple you make you money. 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. trying to make a little money. my job is to educate you so call me at 1-800-743-cnbc. even on a day like today with a dow gaining 72 points and the nasdaq climbing it's clear this market has turned into one very demanding animal. you see the reason why so many days have been so torturous

lately is because the market changed its tune, gone are the days when you beat the bottom line it was enough to send your stock higher. gone are the days when you beat the top line, gone are bit pitting the bottom line and raising guidance is enough to raise the share price. now you need to best the earning numbers and guide them dramatically higher vndz a stock that's got low expectations or heavily shorted. that's right, the gauntlet is demanding because the economy is slowed and getting slower according to much of the recent data. so let's go over what's worked this year. all right? what's emblematic of success as we know it lately so you can rule out a lot of other stuff? i'm talking about under armor, netflix, wynn, facebook, google, chipotle and michael coors, because those are all the stocks that flew to new highs, defying

the averages that brought so many other stocks crashing to earth. we know a bunch of things going into the ar -- under armor's quarter, which launched the stock into the stratosphere last week. first we know that apparel has been terrible, miserable. the weakest of the weak. secondly, under armor traded 50 times earnings and that's a high multiple. 50 times earnings for gym clothes? the sharks were circling this one. betting that when not if, but when the short fall occurred the stock would be cut in half. oops. it turns out under armor delivered earnings and sales that were in excess of even what the most bullish analyst was looking for and they did with stealth technology in "get rich carefully." better clothes that keep you warm and others that keep you prosweating no matter how hot. he's are technological marvels. plus, the company's expanding internationally and aggressively into china by the way.

where the magic team that makes the seahawks look like sissies with their take no prisoners attitude. no wonder the stock went in20% higher in the wake of the quarter. how about netflix? oh, boy, the long knives out for netflix. there were new sign-ups and talk of the company actually losing money. so when they guided up from there, the short sellers betting against this company had no case. that meant they had to buy the stock back just to total spoiled short. there wasn't a thing wrong with the quarter. nothing. it was pure as the driven snow. the textbook entry in the library of stocks that can go higher still, so netflix soared and it can keep soaring as the market cap like the $11 billion market capitalization of under armour too small for the

opportunity ahead. there there's wynn, another company that was supposed to blow up this quarter. not blow the estimates out of the quarter. wynn stuck it in the faces of the china doubters as massive numbers of chinese have come to gamble. how many? enough for wynn to announce huge expansion plans. it was supposed to be the poster boy for shorting china and instead it was the poster boy for the longs thanks to the chinese gamblers. wynn had to jump large guide up, gigantic expansion plans and a chart that looked like it was about to roll over big time. every box had to be checked an it was. yep, it was almost as if ceo steve wynn looked at everything that can make a stock go higher and nailed each one. which is how he ended up gaffing the bears with the machete. or take facebook. what did they do with that quarter? how about substantially beating earnings, substantially beating sales estimates, guiding well

beyond levels thought possible. and explaining there's accelerating revenue growth to come, that both advertisers and users love. plus, facebook is one of the companies that fits my holy trinity of tech taken from "get rich carefully," dominating mobile, social and cloud. and it's looping in connectivity too. i think the stock still has much further to run. google's no different. you go over that call excluding the sale of the laggard motorola division and you hear about a company that can control its own destiny. continues to separate itself from the pack, save facebook. i think google after this quarter can write its own ticket. if it wants to be the fifth tv network after nbc, cbs, abc, fox, it can be there in a moment's notice. if it wants to buy the entire nfl package it can. if it wants to charge you a nice chunk of chain for watching youtube it will. if it wants to raise rates it can.

if it wants to become the stock exchange wiping out the others like the nyse and others it can. after that, i don't know what google could don't if they set their niepds to it. most restaurants struggled to show positive comps. many of the same store sales went over year over year. and i think we'll cheer for buffalo wild wings tonight and then chipotle reported 9.3% comparable sales growth. i thought it was a typo. 1.9%, something inverted? accelerating same store sales growth. particularly october, november, december, going up like that. not only that, chipotle got there largely thanks to more people coming to the stores. this is at a time when its own real marketing is the farm and dangerous youtube programming featuring buck marshall. chipotle is riding the health conscious consumer wave that i

write about in get rich and i'm convinced it can charge much want while only losing a handful of customers. needless to say, chipotle obliterated the shorts. but not as much as they were obliterated by the amazing numbers with egot this morning -- we got from michael kors. it jumped up 7.2%. we thought that handbags and accessories were losers this holiday season and we thought hand-priced handbags were a shrinking category. you can't produce the same sales store growth and 73% incredible in europe unless you have executed brilliantly. now, the mere fact that it requires better sales, bedder guidance, filled with hedge funds betting against you means that many more stocks will be snared at lower levels and they can -- unless they can reach the vaulted pantheon.

the market's oversold, i fear that today's bounce is nothing more than a bounce because the data is so corrupted. we don't know what the economy really looks like, because of the weather and so many other extraneous issues. nevertheless, the bottom line is that next time we get hammered, i want you to bet on the magnificent seven stocks that survived and thrived when other stocks were dropping like flies. i still don't trust this market. i still don't trust the sellers who seem to have very little conviction after last year's home win year. if facebook, google, chipotle, kors are the best of the best and if there's a snap back rally that has any sort of gravitas, those will be the new leaders. let's go to richard in north carolina. richard. >> caller: how you doing there, jim. big booyah to you from north carolina. >> thank you for coming on the show. >> caller: thanks, and i would like to say an behalf of all of

the little guys, thank you for always being there for us. and my question to you is advanced auto parts. what do you think about that stock for a long term and when do you think they'll -- >> i like it. now, the chart says it's going lower. i'm not a chartist, but it's weighing on people. but i believe the average auto car, approaching 12 years, needs an auto parts and this one is good. but autozone is better. may i go to richard in florida, please. richard. >> caller: booyah to you, from miami. how you doing jim? >> real good, how about you? >> caller: i'm doing great. i have a portfolio -- really good portfolio with sherwin williams, i have been with them for 15 years. what would it take for that stock to go over $200 -- >> that wasn't a good quarter, sir. i was on the sherwin williams conference call. and they screwed up on a lot of things. i'll tell you if i want paint now, i would actually trade out

of sherwin williams and go to ppg which has a substantially good paint division that didn't have the problems that sher win williams had. may i go to mike in louisiana, please. >> caller: hey, this is mike. >> mike. >> caller: i'd like to know my stock is monsanto and i'd like to know if you see any growth in it? >> monsanto is so tough because here we are -- i talked with jeff hartung, talked about the idea of feeding the world at all costs and it comes to monsanto, we're getting a big farm bill. we talked to agco. here's the way i come out, monsanto is okay. i can't rave about it because i think there's a move coming against gmo and i think it's unstoppab unstoppable. sure we had a bounce today because i don't trust that the sellers are gone. you have my new leaders, you got

my magnificent seven, google, kors, facebook, netflix and those are bounce hardest if we get bad numbers including a bad number on friday, the employment number. "mad money" will be right back. coming up -- a powerful quarter from its electrical business. could it help spark eaton stock? it's down 10% so far this year. opportunity knocking? or more weakness ahead? find out in cramer's exclusive. and later, tech transformation? big news out of microsoft today. as a new ceo was announced but what does cramer think the company needs to do to stay dominant? the answer may surprise you. plus, craving for cash? from organic food to fast food, as more consumers come to the table worldwide the demand on the global food chain increases.

can farm supplier agco help feed the world's need for nourishment? all coming up on "mad money." >> announcer: 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.

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what should we do with eaton? here's one of the favorite industrials, incredibly well run company. and not to mention stock we own in the charitable trust. it got slammed down after reporting a quarter that wage views as being uneven. eaton makes electrical control products, hydraulics, truck transmissions and the electric business got a whole lot bigger as they got the $13 million acquisition of cooper industries last year. they reported 2 cent earnings this morning, looked grade in

the headline, but much came from the lower tax rate. the revenues came in lower than expected. they still rose 28% but the margins weren't as robust as we are used to from eaton. eaton has come down ten bucks from the high. but long term, they've given you a terrific return with reinvested dividends since i got behind it in november of 2008. let's check in with sandy cutler, chairman, the chairman and ceo. the 21 chief executives i want you to invest with from "get rich carefully." mr. cutler, welcome back to "mad money." >> thanks, jim. good to be with you tonight. >> so sandy, the stock got hit today. i understand because we're so used to excellent margin improvement from eaton. but i know that there were things including auto which had true margin misses. how much is one off, how much can we expect will go away by year end? >> you're right, jim.

we had a great quarter with two issues i'd like to chat with you about tonight. first of all, the overall sales were up 28%. our profits were up 60% and free cash flow is up 27%. by any measure a very strong quarter. but there were two issues i think that were on the minds of investors. the first is that we finished the acquisition accounting for cooper that you mentioned, $13 billion acquisition. that led to four cents higher corporate costs and a 14 cent tax -- better tax rate than we anticipated. so about ten positive cents. i think people view that as noisy, we view it as noisy. but the good news is that the purchase choice accounting is completed on the one-year anniversary of the deal, so that's behind us at this point. i think the bigger issue is the one you referred to the margin miss, seven cents less than we thought it would be. about four cents was in our vehicle segment. good news is we've got a lot of new product launches. if bad news is we didn't execute

as well as we should have and we had $17 million higher cost. those are behind us, with we're at a good run rate here in january so we feel we're back to normal margins in the segment. we're about a penny off in aerospace. that was program expenses. i think in good shape going forward to next year in that regard. then about two cents in the electrical segment. we had a bit of an unfavorable mix in the products we were shipping in the quarter, so no question about a seven cent miss in terms of the margins. the rest that i would think really is attached to primarily the cooper acquisition accounting. >> well, we had nick akins on last week, a terrific ceo, a big eaton customer. he's talking about something you mentioned in the conference call, the epa is not letting him spend on anything other than trying to get rid of coal plants. customers like that can't think big. they can't develop projects that need eaton's work. is this a secular change among the utility companies in this country? >> utility again, it's not a huge segment for us, but i think

what's happening as you mentioned is people are having to convert from coal, which is the largest source of electric power here in the u.s., they're having to put more money into generation to change to natural gas or solar or other types of systems. that's pulling money out of transmission and distribution. but distribution segment is the largest segment in the utility area. we said within the overall 3% growth we think will occur in electrical, we think utility spending is likely to be flat in 2014. >> do we need to worry about weaker data center demand which is another growth driver i like about eaton. >> yeah, this year what we saw in this whole power quality arena is the low end, the single phase activity which parallels server sales was flat and the larger data center side was not bad here in the u.s. a little weaker in europe and asia. we actually see asia picking up again at this point. and we think there's the opportunity for some real

opportunities there as the population adopting so many of the mobile computing entertainment options is driving more large data centers. we see '14 being center than '13 in the data center market. i think the bigger pop is in the nonresidential markets where we're bullish and think we may see here in the u.s. 7 to 8% growth in nonresidential. >> also, your middle east and african bookings down 2% for electric, but you have seen an improvement in january and you mentioned the apack 5% booking increase. the positives getting going here, we're better in 2014. >> no question, jim. we thought really starting in the third quarter we were beginning to see -- this is really across each of the businesses, the end of the recession in europe and the beginning of a very modest recovery. we are not talking about several percent growth in gdp.

we think it's possible in e.u. 27 you can get up to a point of gdp. that's a big plus versus the last couple of years. slight increases in the u.s. a turn around in europe in terms of from recession to growth. continued strengthening in asia. we think that that's really the formula for stronger world grntigdp, but more importantly is the increase in the industrial production is likely to be a bigger increase. that's why we're fairly bullish about a 3% increase for eaton's end market. >> you put in a good word for the truck business, looks like january might be better than expected. this was most bullish i've heard you about trucks of late. >> yeah, december just to start with december 2013 orders were about 30,000 units. the strongest we had seen in many, many months. and the indications we're getting from customers here in january is that it might be quite similar.

that would be a heck of a start to the year in a year in which production can increase to 265,000 units here in north america. >> that would be significant. maybe turning nonresidential, but aerospace is good, europe is coming back, asia turning, you can't abandon eaton, sandy. thank you for being proactive about things that distressed investors and me today as a charitable trust shareholder, because it's not like you candidly to ever have problems. >> we look forward that the additional $95 million of synergies from the cooper acquisition are one more part of the self-help around eaton. we think that with 3% we'll achieve 14% bottom line. we think it's still relatively slow global growth. >> thank you so much, sandy cutler, chairman and ceo of the eaton corporation. >> thanks. >> look, guys, the stock will settle down.

it will be downgraded tomorrow, i'm not abandoning ship on eaton, but there were flaws that sandy cutler explained. stay with cramer. coming up, tech transformation? big news out of microsoft today. as a new ceo was announced. but what does cramer think the company needs to do to stay dominant? the answer may surprise you. and later, off the record. ever want to make something you said disappear? move over, snapchat. cramer reveals how it works when he heads off the tape.

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values simply doesn't play a role in the upside. all we care about is heading for the exits or owning stocks of companies that beat top, bottom, raised guidance, and crushed the shorts like i talked about at the top of the show, think about it. everything else with the exception of twitter and the marijuana stocks has been totally problematic in 2014. take the endless focus on microsoft and the new ceo, satya nadella. we know there's a ton of value being unlocked there by why would an insider unlock it? the last quarter was good. i would love to see microsoft

spin off the entertainment business as the xbox is on fire. but what do we want right now? we want tech that's social. we want mobile and not nokia kind of mobile and we want the cloud. the holy trinity of tech that i talk about in "get rich carefully." let's throw search in there. a business that microsoft had a chance once to win. chance over. so who likes the stock of microsoft here? frankly, fuddy-duddy guys like me because it's nostalgic in the stocks. microsoft doesn't dazzle. i don't know if it can anymore. my kids and all their friends laugh at the windows based machines, scoffing at the information technology executives who they see as clueless, not realizing that the world is going mac not windows. high bound, why are they doing it? that's what my kids want to know. they think the guys are left behind like microsoft. so try as it may, microsoft has

been gleefully left behind. microsoft won't buy what it should buy because it will hurt the short term numbers but it's been caring are for ages now. it didn't buy twitter, it bought the worst hand set maker. here you go microsoft, here's what you do. put together yelp and pandora, become social and mobile on the web, own the entertainment world, $30 billion will get you netflix, you can buy concurrent technologies and again, own the cloud and interprice. own 3-d printing, buy box and the salesforce.com, cloud festival, buy all those.

but i know this sounds like laundry list. this must be done. because windows is why a dominant player i don't think you can be dominant if the future. i remember when ibm was dominant. blackberry was dominant. microsoft can only go away too unless it becomes more relevant. here's the bottom line. i'm not saying that microsoft should chase every cockamamie theme out there. but if you want to be in the tech business and still matter you have to get big in social and microsoft is just not there. you can't do any developing at this point. for microsoft it's way too late in the game for that to happen. let's hope the new ceo, mr. nadella, recognizes the company's own relevance and moves to rectify it immediately. somehow i don't think he will. keith in nevada. keith? >> caller: hi, jim. i wanted to ask you about the stock century link. it's fallen so far and now yields over 7.5%. is it an accidental high yielder or a value trap? >> it's a value trap. these companies have said they'll figure it out. that don't worry about it, that

don't worry that you will see spinoffs. they're getting it. getting corporate. no. no. the same thing with wynn. these are companies that frankly are paying too much dividend. even with ctl's cutting of it. stay away from it. they have nothing we want right now. stephen in michigan. >> caller: hey, jim, i have a question about western digital corporation. should i buy more or should i sell it? >> well, i don't know. you have to ask yourself why you like it. in the first case. it did have a lot of good pricing discipline for a long time. but now sea gate and they seem to be stalling. they're relying on the other guy not putting out other product. western digital is cheap, it can buy back a lot of stock. but again that's not what the market wants. it wants growth. western digital doesn't have it. shindig in california, shindig? >> caller: booyah, jim.

shindig from california. i'm a subscriber. >> thank you. >> caller: i have a question. can you explain what the signs of saying this sysco undisclosed patent deal is and how this is privateering affecting the market? >> it won't matter. you're an action alerts subscriber so you know that they're the largest position in the charitable trust. google is the winner. it goo it's going to stay a that way. microsoft, time to catch up, you have the money. don't do same old same old. get busy living or get busy dying. stay with cramer. tomorrow, kick off the trading day with "squawk on the street." live from post 9 at the nyse. >> these are raises on debt,

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>> it is time. it is time for the lightning round. cramer -- you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? we'll start with jesse in california. >> caller: from the beautiful san francisco, california, here's a big ba-ba-booyah, jim. >> i like that. what's up? >> caller: i'm look at the gold miner -- >> no, it's played out. i don't like newmont mining. let's go to matt. >> caller: big booyah from cleveland. i just want to know your thoughts on activision blizzard. >> not a big fan. i'm signing books tonight at barnes & noble in union scare in

manhatt -- square in manhattan. it's an overreaction. i can tell you from the me himnary work i like that better. sammy in louisiana. >> caller: booyah, jim. >> booyah, sammy. >> caller: i'm calling from shreveport, louisiana, and happy birthday in advance from both you and myself. >> happy birthday to you. >> caller: yours on the 10th. i got your book, "get rich carefully." i'm very happy. >> i wish you could be here for the signing tonight. what's going on? >> caller: are things okay with coca-cola's symbol k.o.? >> i don't see the earnings changing that much. they have too much structural what has to be done. if they announce a restructure the stock bose to 40. i would not sell it. dan in alabama. >> caller: jim, booyah from lower alabama. >> great to have you. kinder morgan?

>> i prefer the kmi, i believe in the company. a lot of people have turned away from it, but i think pipelines are the wave of the future and i think richard kinder is one of my bankable 21. a great executive. dave in colorado. >> caller: hey, jim. i was wondering what you think about -- right now. >> i think it's a good long term play on health care. it's a good idea, i want to buy it. we have management on it. i thought they told a good story. joan in delaware. >> caller: booyah, jim. >> booyah, joan. >> caller: my family enjoys your program very much. >> thank you. and what do you have for me? >> caller: i'd like to know your thoughts on dex com? >> it's glue koez monitoring, i

would buy them and own their stock. i would go to gray in california. >> caller: booyah, jim. >> booyah. >> caller: my stock is -- partners lt. >> i'm not crazy about valero because i see the spread narrowing between west texas. it's got to go the other way, so gaming to stay away from valero. there are better ones. and that is the conclusion of the lightning round, ladies and gentlemen. >> announcer: the lightning round is sponsored by td ameritrade. >> coming up -- craving for cash. from organic to fast food, as more consumers come to the table worldwide, the demand on the global food chain increases. can farm supplier agco help feed the world's need for nourishment? who found a magic seashell.

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let's talk about agco, the third largest maker of agricultural equipment, from hay

tools, and a whole line of diesel engines that reported just this morning. these guys have a very strong presence overseas. they get 50% of the sales from europe. the middle east and africa. only 25% from the u.s. another 20% from south america and just 5% from asia. the expectations were low going into the quarter because management had a somewhat cautious analyst day back in december, but lo and behold, they beat the lower expectations. they earned $1.40 a share. although admittedly the beat came from the lower tax rate. meanwhile, agco raised 6% year over year. not bad at all. in north america and south america, they were sluggish. europe was up 10%. 2014 could be a challenging year given that crop prices are big from 2013. when farmers have less money they tend to buy less equipment which is why they fell 72 cents today. that said, the stock is down more than 11 points from the high in october. that's at 18% decline.

maybe it's possible that it could have been punished enough. let's take a closer look with the chairman and the ceo of agco. to learn more about the company and the quarter and where it is headed. welcome back to "mad money." >> thank you very much for having me. >> all right, sir, you know, when i went through everything i kept looking for something that would tell me that you would be bullish year over year in 2014. when i read through the conference call and research i felt you aren't bullish for the coming year. >> no, we are rather conservative, so we had a fourth record year in a row last year. so competition is a little careful. so therefore we decided to be cautious. but we still think that we will be on the same level in 2014 which i think is not too bad. >> right. now, one of the things that happened, i mean, i'm looking -- look, i'm an optimist, but i saw

today that the president's about to sign a farm bill and that's a $12 trillion farm bill is that the type of thing in your ideas for being conservative and it doesn't matter? >> oh, it does matter. i think that's good news for the farmers and i think this will stabilize the markets in the u.s. >> then you have -- you talk about weaker conditions in south america, the decline of 5% commodity. euro europe flat to down 5%. we are supposed to be short of food this this world. did everyone just buy the equipment they needed? >> no, i don't think so. so overall, i think the fundamentals for our industry are still extremely good. and we are in the middle of a big paradigm shift. so that means we need to feed that growing world population. but of course in certain regions, things go up and down once in a while. we have very strong years. in south america, they basically

remove the state finance system and they will invest $35 billion in subsidies or in loans which are available for farmers which is good news as well. >> great. now, if you are very small in cis, china and some in africa, but doesn't make this so you should be shifting resources there or are the markets taken by other companies? >> no, they are not. we are the first to produce in africa and we opened last year in algeria which is in a rather safe environment. and assembled a thousand tractors. this year, we will double production. we are the first to manufacture on the continent, and then we entered into a joint venture with a russian partner. a company called russian machines managed by very strong

german, austrian guys. the guy who is the head of the company, and we are very optimistic about being in a position to grow that market more in the future. russia so far has a big demand and actually needs to recover because there are not too many western imports to the country. >> all right. one last question. you did something i've been begging companies to do. you did it. you executed a cash repatriation from your subsidies to the u.s. company, committed to the dividend. why did you risk paying that higher tax when so many other companies won't do it? >> well, we found a pretty intelligent financial solution without big tax impact. i tried to lobby for a change in legislation but obama doesn't obviously listen to me. i personally talked to him several times. i'm not expecting that he will move ahead. he should, but we found a

solution this time and we will buy back shares at the amount of about 500 million u.s. dollars from money coming from outside the u.s. >> well, sir, thank you so much. i know it's a challenging year but i think expectations have now been lowered to the point. if you get a lot of good news i think the stock can go higher. thank you for coming on. >> i hope so, yes. >> the chairman and the ceo of the agco corps. i'm focused on stocks that could be cheap. this sounds like one, but 2014 has to be stronger. stay with cramer. coming up -- the app that wants to take your conversation off the record for good. find out if this private messenger could look to go public. ♪

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about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance. responsibility. what's your policy? anybody in the business world knows with half a brain knows there's some conversations that are too sensitive to have online. not just the business thing. when you send anything is potentially frozen in time for all eternity with the real possibility that the wrong people can end up reading your words, but that can be changing thanks to confide. so tonight we're going off the tape to take a closer look at this company and it could be a real game changer when it comes to confidential conversations.

they combined encryption with disappearing messages so you can have a confidential conversation with online. we know that people have been using snapchat for the same person, but confide is different. for starters it's totally tech based but it's more secure than snapchat. the reason? you can't take a screen shot before it disappears. you have to move your cursors over the words to make them show up and you can only see two words at a time. you might think an app could be used for unethical criminal activity. at the alpha conference back in july, i asked the attorney general of new york about insider trading. can they go buy leap wireless and get away with it because you don't have the technology to stop it? >> i don't know what you're talking about. >> well, i know he does now. but on the other hand, there are a lot of legitimate areas where

confiedz could be really useful. it's good for human resources issues, opinions on sensitive topics not to mention gossip. today, the company announced it's raising $1.9 billion in seed financing from a host of venture capital players and we want to look closer at this with jon brod, he used to be at aol. thank you for being with us. does this message self-destruct within 15 seconds or even earlier? >> even earlier. here we go. you simply click on the message. >> okay. >> as you said it shows up with what we call wanding. so as you move your finger across the message it reveals the message. confide lets you have honest, unfiltered off the record conversations with private messages that self-destruct. you can communicate with confidence. >> is that message right there on any machine anywhere? >> it is on this device. >> how about a server? >> it's on a server right this

second. as soon as i hit reply it gets wiped clean from the device. >> there's no way that the nsa can read this? >> delete it from servers, wiped clean from the phone. no way. >> any way that if someone were to subpoena your company, because you wrote that somebody was not worth hiring because they had an alcohol problem. >> well, here's the thing about subpoenas. right, so this is end to end encryption. it crosses the servers it is encrypted. the only thing that can decrypt the message is a unique key on the recipient's phone. >> so -- >> if we got subpoenaed we could turn over encrypted files but there's no way that we or whoever is subpoenaing us could actually decrypt those. >> wow. now, confidential going forward, good idea?

>> yeah. >> i write confidential going forward, that means it gets forwarded. that's done. >> that's exactly what this app is for. any time you say confidential forward, hey, you know what, let's take this off line i'll give you a call or i'll get your personal e-mail address, i want to take this off the work e-mail servers. >> so there are businesses all over the world that want this because it's what we all want to do. because we can't get ahold of each other on the phone all the time. >> that's right. we have private, confidential, business phone calls all the time. all we're trying to do is to bring that proven off line convention online. but both of you and i don't need to be available at the same time for a phone called more to communicate on confide. >> i downloaded it. i wasn't sure how you made money. >> well, we don't yet.

and the nice thing about raising $2 million we won't need to for a long time which will ensure we focus on the product. so we have a loyal audience and over time we think the premium is the way to monetize this app like linked in. >> does it have to work its way up and suddenly the technology guy says, you know what, everyone is using this thing. maybe we should? >> it's not an enterprise app, but a professional app. we're not targeting cios here, but guys like you and me who work in professional business. >> okay. to the ratings, first guy said you should hide name and subject as well. can that be done? >> yeah, we can do that. this is not about, you know, super, super secret, nsa level stuff. this is largely being done with trusted people. but the idea here is we don't want to have a certain conversation with permanent digital records, we don't want you and i to have copies of things. for those purposes we want to use confide. >> i saw that people are giving you money. they're all people who could write a check for a huge amount right now and buy this company.

will one of them do that or is that not your strategy? >> you know, it's funny. we get asked the exit question a lot. we're 3 1/2 weeks in so we're focused on the entrance not the exit at this point. but, you know, we did raise almost $2 million for some great companies, wgi group, google ventures. >> google ventures is what made me think they could buy you. >> potentially, but we want to put down our heads for the next two years, grow the product internationally and domestically. we have had a usage in over 110 countries around the world. so this is a real global need that we're solving. >> i had one today where i had played telephone tag for three days. to do something it was too sensitive to put in e-mail. if i had it, i would have had it done on friday. that's right. >> well, confidential, impermanent, off the road conversations. >> jon brod, you can download

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hope to see you at my book signi signing, barnes & noble, union square.

and hain getting clobbered after hours and buffalo wild wings is going up. i would like to say i promise to find it for you, a bull market somewhere. i'm jim cramer. see you tomorrow. tomorrow! after several wild days in a he ro, the market's finally calmed down today and they finished with a nice little gain. so, is the correction over? are we finished worrying about the bad effects of lousy weather and the emerging market? we're going to give you a complete update. the explosiveness in washington, d.c., today about obamacare. the cbo admits that the new health care will cost jobs, millions of jobs, and it's going to add a trillion dollars to the budget deficit over the next decade. will the president and the democrats finally admit that this thing is an utter failure? plus, the american energy revolution surges on. tonight, one of the fathers of the shale oil book is going to join us.