huh-uh. let me tell you something. we've got to be prepared for a pull-back. we have the chinese manufacturing phi, and that's the most important gauge of china's growth. i'm willing to bet that it's going to show a further slowdown. people are starting to talk about, including goldman sachs, maybe a sub-7% growth in china. that would be big, people. got to watch the slickly calls. the cyclicals have been hot. but i think this number could cool the rotation into that group. gotta watch the cyclicals monday after we see that number. at the same time, we have r something you may not have heard of, but i've held to be very ea important if you care about the oil complex.th this is the howard wheel energy

conference. i know, a small firm. but i'd say most of the really important energy-related companies, they'd make the pilgrimage each year. now i look at the presentations after. i'm watching ensco, and not becauseot of two weeks ago, but because it's so darn cheap. almost 6% yield.o it seems poised for a comeback. we have to hear about day rates. maybe they're going higher. a favorite of ours.e lng, the natural gas exporter so hot, and just won't quit. and the oil service giant. and ervalero, who i think is having an excellent quarter. tuesday brings results from three companies that should givs us an important clue about theg ongoing nature of this rotation that i'm talking about, and that's mccormick, the spice company, walgreens, the drugstore chain, and pvh. we've had all three of these companies on air.d

but mccormick and walgreens are like the classic growth stocks -- for no apparent reason. if we see good numbers and the stocks do nothing, or they fall, and we know we're in the tech slash bank haven and gross stock hades, we are curious about pvas because there have beenav so many downgrades, i thk any decent number aught to send it higher. that's what happened when they will report it. wednesday will be about the fed. it releases the analysis reviewb you'll hear it called next week ccar. i cannot emphasize enough how important this review it. because many banks are itching to raise their dividends and buy back more stock, but they'll need fed approval to do so. and this could be the day they get it.rtnye edou pay particular attention to bank of america and goldman sachs, both of which might be getting green lights to return to shareholders, one of my t charitable trust has sizable on

positions, and many people feel these stocks have been going up in advance of ccar. wednesday also brings earnings from a company you're familiar with, paychecks, and while we ny place significant numbering on the labor department, i won't disagree with that.ic i specially value paychecks tremendously. what it tells us about small business growth, the personal bali wick, because small businesses generate the most w jobs. i want to find out has the affordable care act crimped t business. has the lack of open where fare between republicans and democrats allowed business to accelerate? i know that paychex can give us the answers. finally, the biggest ipo in ages, the cane entertainment candy deal, which you might know as candy crush. the price drop we're hearing right now holds up, and if it doesn't move up too much, i think the stock may actually be worth owning. as we get closer to the day, i'll stay on top of it for you, because, yes, it's that big and t that important to the market.ha the reason?. it's very interesting.

if the king digital deal fails to do well when it comes public, i believe the ipo window, which has been open as wide as i've ever seen it, i think we'll at last begin to slam shut. that's something frankly that needs to happen. just eliminate the biggest pocket of froth we've seen in ages and ages, something that could be dangerous to the bull if it doesn't stop, that's why i keep talking about it, not to bore you, but to make you more skeptical and concerned because ice remember 200 like it was yesterday. remember how i said the supergrowth stocks have been bowled over by this rotation? one way to find out if it wtve continues is watch how the market reactions from quarters from lululemon and restoration t hardware. these are two highly valued, meaning expensive, growth stocks that have struggled of late and have been attempting to mount comebacks.un if they have decent numbers on thursday and the stocks go higher, you know what? that could signal a return of cash into the expensive tech, biotech, retail and health care names which were c leading the

market before the wrote bags, and now we are being systemically taken out and shot. yes, some reports, like these two, they can be that important. finally, we have the end of yet another parade of ipos with two cloud-based names, one launching with a plethora of disparate stocks.a i cannot emphasize how important the twopo cloud networks are. they're coming public at the exact same point when there is a landslide of sellers in the best cloud they software as a servicg company, salesforce.com, crm, at a certain point this decline which encompasses cloud fellow travelers, work stone, workday, it has to be stopped. you can't have an unlimited number of brand-new untried andi maybe untrue cloud plays going to a premium at the same time the best of cloud replays get a hammered. that's what the two ipos to you is a t platform for online degr programs, and a network solutions company, how many do we have? you must watch them closely.

it may seem like it to you. if the deals don't burst higher, that may be the signal, which has led us for ages but seem to crash and burn by the day. it is that zero sum. here's the bottom line.th we're looking for clues about the end of the supremely sharp woe tags that royals the market daily, a rotation i'll describe later in the show. t i honestly can't tell you when it will end, i sure wish i could from my crystal ball. only the stock action as part of our game plan can tell you that, and i'll be right here to narrate it for you. i go to joel, my home state of new jersey, joe.e om >> caller: big jim, how are you? >> how about you, joe? >> caller: very good. i'm vacationing down in miami, florida, now, south beach. i have to say it's due partly because of all the great advice you have. >> oh, you're very kind. i tell you, this market is a>> n very -- it can plummet anyone. so i'm glad i'm helping you find added value. how can i help you now? >> caller: no, no, you have a

great staff. everybody is fantastic over there. >> yes, we do. >> caller: we had a tough week, it's great to hear you say that. >> caller: i know. listen, my question, jimmy, is for palo alto. it's come down this week. it's been going back and forth. already went up pretty good in november, as you know, last year. but it's fluctuating, going down. >> well, you know, joe, look, o this sector -- whether it be nt, semantic largely because it was desktop and not mobile, or fireeye, that we'll talk about, that gota killed because of a secondary, i think there are a lot of sellers in the security plays. you know what? i have liked palo alto. it is best to breathe, and yet k would still say do a little of

that. we're in a vicious rotation now. we're looking for clues where it will end. as to where it will end, i gotta tell you, only the stock action is part of cramer's game plan. we'll really let us know. "mad money" will be right back. coming up, fun, fiasco? where you choose to invest for i retirement could be the most important decision of your lifet and those decisions may be all n wrong.ll tonight, cramer reveals the most common mistakes that could be costing you. when he opens his "playbook." plus, dive in head first. spring has finally arrived, and warmer temperatures could cause some stocks to heat up. pool corporation is the nation's largest swimming supplier. will rising homeownership act ai a springboard for the stock? all coming up on "mad money." at delta we're investing billions of dollars,

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♪ before you can really start making money in the stock market, you have to know how to handle your finances. if only so that you actually have some money to invest.

that's a major point. it's something we may have neglected on "mad money" over the years, which is why every week we're running a new segment called "cramer's playbook." where i teach you everything you need to know about the basics of managing your own money. you can send -- post questions on twitter @jimcramer with the #getaplan. please, ask away. the more questions i get, the more i can understand what you're worried and concerned about. tonight i want to kick this off with a question that made me want to tear out the rest of my hair, not that easy, please. from @harrydemp1, who asks what's your preference on etfs versus mutual funds? #getaplan. look, i don't want to give harry a hard time here, in fact, i'm really glad he brought this up. you never had more options when it comes to mutual funds right now. they're everywhere. at this point, there are so many different kinds of etfs, it can make your head spin.

as a side note, i hate the way many of the sector-based efts, the one that is let you buy an entire sector, have been warming the way the stock market trades. something you can read a lot about and get rich carefully. i out-and-out despise the leveraged efts that often play havoc with the market at your extension if you use them. the important thing is this, you have all sorts of mutual funds out there, and they can all advertise. the companies that run these funds want your money. and one of the biggest mistakes you can make as an individual investor is to give it to them with a few significant exceptions. unfortunately, this is one of the most common money mistakes out there. in fact, most people in this country equate investing with putting their money in mutual funds. some 80 million people, half the households in america, have exposure to mutual funds. many of you don't have a choice. a lot of 401(k) plans don't let you pick individual stocks, they just give you a menu of mutual funds to choose from, which is

one reason that i.r.a. is a better way to invest because then you can pick individual stocks in an i.r.a. what exactly irritates me about so many mutual funds -- again, some don't, but i'm speaking generally here. what am i really rallies against in the general funds? simple. if you're investing in mutual funds, you might not be getting as good a return as you should be. i don't want to paint too broad of a brush here. there are worthwhile mutual funds, and i'll tell you how to find them in a minute. but first, understand the problem with the mutual fund model. my main beef here is with actively managed mutual funds, which people are deciding which stocks or other securities to buy and sell. unlike hedge funds, nmutual fun managers don't get paid for delivering performance. they collect fees from their investors. people like you. and the amount of money they make depends entirely on the size of the assets under management. so they're really being paid not on performance, but on asset gathering. and that's part of the reason why in study after study, year after year, it's been shown that

the vast majority actively managed mutual funds underperform in the market. to make matters worse, even though actively managed funds consistently underperform the market, they have some of the highest fees in the business. counterintuitive, right? even if your fund does manage to be the benchmark before fees, the odds are often good that any outperformance will be eaten up by big management fees, and you'll end up with an underperforming investment versus being in the s&p 500 index fund. of course, there are some actively managed funds with fabulous managers, who consistently deliver terrific results. i'll tell you how to find them another time. as a general rule, if you're going to invest in mutual funds, you don't want to be in actively managed ones. the fees are too high, and they could underperform, frankly staggering. you know i think your best strategy is to manage your own portfolio of individual stocks, because i trust you. but for those of you who don't

have the time to research individual companies or if your 401(k) plan won't let you own them, let me tell you the smart way to invest in mutual funds. you want a cheap, low-cost index fund that mirrors the market as a whole. i like one that mimics the s&p 500. index funds have ultra-low fees, and with the s&p index fund, you have a vehicle that will let you participate in the strength of the stock market without having to spend the time picking individual stocks. you can't beat 'em, you join 'em. this may sound like a really simple solution, but i don't want you to overthink it. the whole point of putting your money in a fund is to save you time and effort required to manage your own portfolio of stocks. that's why i think it's insane when people start owning multiple mutual funds. by its nature, a fund should be diversified. i know there are sector-based funds and etfs, but there's no reason home gamers like you to have exposure to them. if you're going to take the time to play individual sectors, it would really better be spent

picking individual stocks. you want the best one in the sector fund. the vehicles are for trading, not for investing. mean etfs require rebalancing any day, and that can take a long-term toll on the performance. it's a very simple way to play gold rather than storing gold in your house or even in a bank. in general, if you're not a pro and not managing a portfolio, then individual stocks, then you probably shouldn't be fooling around with the etf either. and for etf index funds like the s.p.y., it's better to invest in via mutual funds because they don't have the big daily rebalancing costs, and they also reininvest in dividends immediately, which is exactly what you want. i'm sure some people will say that's too difficult, there's always some etf better. i just like the pure and simple low cost, s&p index funds. here's the bottom line. at the end of the day, i think a cheap s&p 500 index fund is the least bad way to passively manage your money. better than the vast bulk of actively mutual funds.

again, vast bulk. there will always be exceptions. but an index fund owns everything -- the good, the bad and the ugly. if you do have the time, i think you can beat the performance of an index by picking stocks yourself. it's one of the chief reasons i do this show every night. if you don't have the time, though, then don't overthink it. an index fund is indeed the best way to go. for more financial advice, please check out yourmoney.cnbc.com. yourmoney.cnbc.com. after the break, i'll try to save you more money. coming up, ride the rotation. there's a changing of the guard happening right now in the market, and if you don't adjust, you could be left with a sinking portfolio. cramer's got the moves you need to make right now. we asked people a question,

how much money do you think you'll need when you retire?

then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going to have to rethink this thing. it's hard to imagine how much we'll need for a retirement that could last 30 years or more. so maybe we need to approach things differently, if we want to be ready for a longer retirement. ♪ jimmy, what's the matter with my stock? what's wrong with it? and then you fill in the name of the stock. that's what i'm hearing about tons of the high-priced earnings multiple stocks as the market has taken a fancy to the cheap and expunged the expensive. sell, sell, sell! it's all part of one of the biggest rotations i've seen in years.

bye, buy, buy, buy! sell, sell, sell! that i'm trying to teach you about, and there may not be anything wrong with your company. nothing wrong. there's just something wrong with the stock. right now at this very moment, the consensus is shifting. there's a belief that the economy is getting better and, therefore, it's time to rotate into the stocks of companies about to produce sharply higher-than-expected results, because they'll be aided by a stronger economy. there's nothing unusual about this move, except it's been so long since we've had a genuine economic expansion that it's taken a lot of people by surprise. they cannot understand, for example, how come a salesforce.com or a workday, two very good but highly valued companies, can have stocks that go down while companies prosaic, more boring, slower growing, like huewet let lieu health

hewlett-packard can have red-hot stocks. i know it's one thing people can't get their arms around. it's why i wrote "get rich carefully." i don't want you to panic and blow out of stocks simply because the stocks are damaged, but the companies they represent are actually healthy. it is so seductive, though. the portfolio manager of the charitable trust, we talk about this every minute, every minute. so let's consider hewlett-packard for a moment. because this is one of the classic ones. as the stock rises, and you know it's been rising, we're getting little snippets of good news that many think are driving the story. for example, it rallied from the 20s to the 30s. i've heard there's some reasons n particular, that explain it, such as the company's decision to boost its dividend, or maybe a brand new three-dimensional printing initiative which is rolling into x-1 and 3-d, and stratuss. those can't always play a role, believe me. the main reason for this move up in hewlett-packard is the simple fact it's considered a gigantic play on the growth of the economy. not printers. the economy. and this normally slower-growing company is about to have an acceleration in its sales and earnings. that's what people are predicting.

why do people think this could happen? complex question. but ultimately many investors put their faith in the federal reserve and in the fed chair, janet yellen. she made it clear just this wednesday that things are getting better in the economy. and that, more than anything else, not printers, not pcs, not anything involving the dividend, is what's driving hewlett-packard higher. you get more business formation, more growth for the enterprise, more computers ordered and a slower-growing company like hewlett-packard suddenly surprisingly puts up better numbers. it's not just hewlett-packard. intel, similar. those stocks have been strong. if hewlett-packard is selling more equipment, that means there's more demand for the chips inside and the chips invariably come from intel. we may think of microsoft as a loser in the big battle against apple when it comes to buying personal commute computers, in fact, microsoft's not a cash cow but it's about the enterprise business company, corporate. and that will grow faster if the

economy is getting stronger. even oracle widely viewed as reporting a terrible quarter earlier this week is barely down because of the weak company, good-stock phenomena. this kind of logic is popping up all over the place. you may have noticed the sudden jump in at&t. that makes sense. if you use the same prism, because one of their biggest businesses is the irreplaceable land lines that still need to be installed if you open a company, or expand your corporate office. as long as new companies aren't being created and there's no additional hiring, then demand for this kind of boring business is, indeed, the doldrums. but if the environment gets better because the economy is better, you'll see a dramatic increase in a business that has very large gross margins, and that's what's behind the move in at&t. not anything particular that is happening at at&t, but the economy. how about the other side? what's ailing? for example, salesforce.com. the stock is up huge, probably more than any company i follow in the last few years. here's the answer of what's's

ailing salesforce.com. nothing. nothing is ailing salesforce. it will grow in the same consistent 30% category, one of the rarest breeds that can do that. when the economy was more stagnant, it was very attractive to mutual fund managers, but at this very moment, that kind of consistent growth just doesn't have the appeal of say, microsoft, with the open sodic possibility with a big jump in orders because of a corporate expansion. you must always remember money managers don't just crave growth. they crave the fastest growth year over year out there. and for 2014, the year over year out there and for 2014, growth for microsoft might be larger as a percentage than the year-over-year at salesforce.com or at least give it this. the earnings surprise beat may be bigger than what salesforce can offer. that can trigger the buying and selling. not only are the money managers looking for the biggest earnings increases in the expanding economy, they also like to buy the growth on the cheap. right now, the hewlett-packards are cheaper on a price to sell. they sell at a multiple to earnings. not sales like the cloud plays.

and their earnings multiples are much cheaper than the average stock in the s&p 500. so these managers, they think they're getting supergrowth at a very reasonable price. now, this kind of rotation applies to all sorts of sectors. have you noticed the decline in the most highly valued biotechs of late, versus the ipos. i know you think of them as health care industry, but for the purposes of the stock market they're consistently fast-growing names like a salesforce or work data. i don't mean to pick on those because those are really great companies. but right now if you asked me to talk about sectors, i'd be tempted to tell you gilead is literally the same kind company as salesforce.com, the kind that can do the number and regard lers of the economic environment. in demand right now with money managers. they want something they can have -- what i would regard as being called inconsistently strong growth. they mind end up booking cheap when that growth occurs. consider the conundrum of the stocks, comes tied to the economic cycle, that can't -- that's right, can't -- make the

numbers without global growth. caterpillar, the machinery company and the steel company in louisiana that we talked about a few weeks ago. i got a call from a viewer yesterday who asked correctly how caterpillar can rally in the face of truly terrible inventory numbers in this country. it's one thing to have a weak quarter and not make the numbers, but right now the world has been turned upside down. if caterpillar heats up like yellen and company believe the economy will, then it will be mana from heaven. they'll meet the demand and won't have to cut the prices. same deal with new core. he's a company that preannounced the downside. the stock went up! look what nike did. it did a great number. only got it down for currency and was slaughtered. is it counterintuitive that new core could go up? not at all if you think a manager wants to play a cyclical stock. what's he looking for? new core.

new core is exactly the right place to be. when does the rotation end? we don't know. if the economy expands, the rotation could go on for sometime. the history dictates that consistent growers will get too cheap to ignore, while the inconsistent industrials will get too expensive once they deliver the beats, either because the economy weakens and it's national and then it's a wrong call. if you look at america like the fed is doing, another reason to pay attention to the chinese pmi report i just discussed. it will come out when we come in monday morning. here's the bottom line, please remember there's nothing wrong with your company. sometimes bad things happen to good companies' stocks. this just happens to be one of those times, thanks to this rotation out of consistent growers and into cyclical stocks that boom along with the economy. graham in new york. graham? >> caller: jim cramer. >> yes. >> caller: my question, krispy kreme, lower stock price below

where it was before the fourth quarter end of year results. do you see this as a solid buying opportunity, or is the stock price in danger of falling even further down the donut hole? >> when you talk about krispy kreme, i'm going for quality. you look at a starbucks, dunkin' donuts, they're all in the same business, higher-quality companies. they're more consistent companies, and they can do very well, because dunkin' donuts is moving internationally and starbucks isn't just an american company. round and round she goes, where she stops -- hey, it's not the stock! it's the rotation. sometimes bad things do happen to good through the stocks of good companies. think of volleyball. set, rotate, spike the growth and go with the cyclicals. that's what the market says. is it right? you have to decide. stay with cramer.

it is time! it is time for the "lightning round. "requesting --."

buy, buy, buy, sell, sell, sell! play this out and then the "lightning round." let's go to chris in pennsylvania, chris? >> caller: can sewnmy help me get rich quickly? >> you know what? i think it's kind of a dud. i think it's a catalyst. i'm going to say, don't buy, don't buy. how about brooke in new york? brooke? >> caller: oh, hi. >> hi. >> caller: i'm interested in teledine -- >> defense space? that's a good stock. let's go to tom, tom? >> caller: jack. >> i think this is one of the best fast-food companies out there. i like the remake of the stores. tony in new york. tony? >> caller: yeah. >> go ahead, tony.

>> caller: hi, gym. my question is this. i want to find out what you think about unum. >> it's a very inexpensive stock. i say buy. josh in pennsylvania. josh? >> caller: hey, jim. i want to give a big booyah to our investment future guy. >> i bet he's done a great job. what's up? >> caller: my stock is byou. b-y-o-u. >> byou? okay, i like bidu. that's the only chinese stock i'm recommending. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> announcer: the "lightning round" is sponsored by td ameritrade. froth. ♪ come on, has to be a beer, right? yes, all these red-hot biotechs represent the danger of froth. certainly more frothy than this. brilliant. now flat guinness. there's specific areas that are virtually overflowing with froth. it is st. patrick's day. ♪

that's worth having a guinness over. brilliant! >> caller: boo-yah, jim! i hope you're not too hung over from the green beer. >> jim, a big st. patrick's day, proud to be irish booyah. >> hey, jim. you looked so cute last week on the oil rig with your hard hat. ♪ >> you liked that? i thought i would use it in this studio, but it seemed like artifice. ♪ about to head to the starbucks' annual meeting. it's almost showtime. ♪ it's the booyah blend. ah! ♪ >> put your seatbelts on. please welcome oprah winfrey! >> oprah time!

you get a child, you get a child, you get a child. >> you get a child. you get a child. you get a child. >> everybody gets a chai! >> it's time we upgrade yesterday by morgan stanley. the stocks are not expensive. >> did you really get off a plane? >> yeah. >> i don't believe it. >> i was in seat 4d. the rest of my team was in the back somewhere.

the housing-related complex, it's coming back. just take a look at pool corp., p-o-o-l. a company that delivers all things swimming and pool related. the stock roaring lately. now only a point away from its 52-week high. only 13% of its pool business comes from new swimming pool construction, but 29% has to do with replacement and refurbishment and a ton of catch-up in this business, and the rest to do with maintenance which is something you want to do if you want to go swimming. here's the thing about this business. you don't spend the money, refurbish your pool if you're underwater on your mortgage. but we know people spend three times on their property once it's above water, and the transition from having negative to positive equity in your home has been happening for millions of people over the last couple of years.

that means a lot more demand for pool corps's products going forward, especially since the median swimming pool is now more than 15 years old. at the very least, these pools are begging to be snazzed up, if not replaced entirely. especially since it can help you sell your house. not only that, pool corp. is flirting with new highs. even though we got out of the worst time of year for this business. imagine where the stock can go over the summer. the whole pool industry is very fragmented. giving this company a lot of room to take share, which it is doing. let's check in with manny perez de la mesa, to find out more about how his company is doing. mr. perez, welcome to "mad money." >> thank you, jim. >> sir, i was looking at your financial results. and i see that your adjusted ebitda and operating income margins are just now getting back to where they were in 2006, and yet at the same time, in 2006 we're building far more

homes. does that mean if we go to a level where we're back to building a lot of homes that the ebitda could explode from here? >> well, i wouldn't use the word explode, but it certainly could be a lot higher than it is. as mentioned in your intro, we are still in the early phases of recovery from a housing and certainly pool construction standpoint. and remodelling replacement activity really began modestly in '11, expanded a little further in '12 and '13. we believe we have a long ways to go there, as well. so both remodelling and replacement activity, as well as new pool construction, have a long ways to go to get to historical levels, and then the leverage there that you mentioned in terms of operating results, whether it be ebitda or operating income, was, i think, important to state is that we've continued to grow our business, adding to our networks whether it be opening of new locations or also layering in some small acquisitions. and, in fact, those new

locations and small acquisitions come in with very modest to no ebitda per se. so when you look at our base business, excluding those acquisitions and new locations, we, in fact, in '13, we're already above from an ebitda margin standpoint, above our highs in 2006, and that's still with new pool construction 70% below what they were in 2006. >> that's what has to be happening. you have to be taking share. if you have this much revenue and this much earnings, when we're still nowhere near where we were, then it must be from maybe out of the littler companies that, you know, mom-and-pop companies? is that who you're taking it from? >> well, we're taking share across the board. we compete with both small and local and regional distributors, but we also compete directly with mass merchants that sell to that consumer that maintains their own pool. but what's important here and fundamental to understanding our story is we continue to invest, and we invest in our people. we have a great team of people, over 320 locations in 11

countries. and our people are what makes the difference. that's a key differentiator that we have. and those people are armed with tools and resources that are unique in the context of this industry. and we continue to invest in our people and those tools and those resources through the downturn, understanding full well that the market will ultimately stabilize and eventually revert to normal, and, therefore, we're looking to continue to capture share as we have historically throughout our history. >> okay, well, today i got my bill. my guy said, listen, if you open your pool early, you know, we'll give you a discount. i said to myself, you know, it's freezing. i don't even want to think about it. there are other years, sir, frankly where it was real spring, and i said i couldn't wait to get it open. this is happening across the country. will the weather be a detriment to your business in this quarter?

>> no. when you look at it -- and you're based in new jersey -- >> right, exactly. >> -- where you are, typically pools are opened in the springtime. whether they're opened in april or early may. that's normal. and the fact we had an exceptionally cold winter -- december, january, february, a lot of snow in your area. in fact, a lot of ice throughout the southeast and parts of the southeast and middle america. that really doesn't affect us, because pools are naturally shut down during that period of time. >> all right. and then, the last time -- what i wanted to think of, given the weather, i know my pool doesn't -- it's cracking. you know, you have this 15-year period. i know that i have to do more work because of the weather. does that play a role in your business? >> sure it does. pools have two components. you mentioned earlier maintenance and repair. >> right. >> maintenance and repair activity is steady.

in fact, during the course of the downturn, key products like chemicals, parts, accessories, we continue to grow our sales of those products, 2007, '8, 9' '10, as new pool construction was collapsing 80%. the product categories revolving around pool maintenance and pool repair continued to grow. >> you've got a great story, sir. i am so glad you have come on. i've not heard from pool corp. before. it's been a remarkable stock. you do a great job. thank you for coming on "mad money." >> thank you, jim. appreciate it very much. >> that's manny perez, the president and ceo of pool corp. now you see why the stock is trading at a high. it's a terrific buy. stay with cramer.

forget the brackets. you want some genuine march madness? look no further than the ipo market these last few days. it's absolutely crazy out there, people, with small deal after small deal coming public, and immediately going to an outrageous premium. a-10, border free, amber road. and literally about a dozen other companies that have taken advantage of the widest window i can recall to come public. this is an extraordinary moment. extraordinary moment with many of the companies using buzz words, cloud base, big data software, companies that mimic salesforce and it's froth personified. let's not sugar coat it.

the money pours out. in reality, they're delivering great ones. it doesn't matter thanks to the rotation i told you about earlier. i find this rotation to be -- i hate to use this word -- frightening in its speed and breathtaking in its frothiness. why? first, we don't know anything about these new companies. half of them sound like beers for heaven's sake. sure, some of them are real businesses with real prospects. that brings me to my second point. only a small floater is coming public. so the large institutions need to come in the aftermarket. once the stock starts trading. that's how you get the enormous day pops. you get a growth percent of 3% of the stock. you get 3% of the stock, which usually amounts to a position that's too small to matter to that client. then the same client pays up in what's known as the aftermarket to buy what's necessary to get a full position. and is able to use a blended average to end up with a decent cost basis. so let's take a fine pillsner like amber road.

sorry, it's a management software company for global logistics. at least it's not a springsteen song. today it is priced at 13 bucks and opens at $17.50. how does that happen? maybe a multibillion mutual fund got 100 shares at the ipo price, $13, but it was not enough to go around or make a difference in the overall performance of that fund. the fund can then buy another 100,000 shares at the opening and, therefore, own 200,000 shares at 15.25 price, which might make it a full position. that's not bad considering the stock ultimately closed at $17 today. by the way, i don't necessarily want to mean to pick on amber road. it does probably have pay, definitely tastes like coming home. a-10, that's the champagne of bottled beers. i didn't mean to pick on amber road. 30% of the stock outstanding did come public, far more than its compadre. a-10. a real taste test here.

plus, there's a lot more than some of the worst of the sliver of the float deals of this year, including yelp, only 10% of the float and linkedin just 7. if yelp and linkedin worked just fine, what's the fly in the ointment? first, amber road is a relatively unseasoned company, the fast revenue growth is losing money. that's fairly typical of the deals. public appetite has been whetted. it's likely a secondary offering will come well above the ipo price, usually. that alleviates the tightness and sends a company's stock down instantly. take the trajectory of a great company, take fire eye. here's one of the hottest stocks in the universe. an acknowledged leader in security software. the software flagged the issue. fire eye had been a huge winner trading up to 96 not that long ago. less than a month. sure enough, the stock spiked to the level 96. the company filed a 14 million share secondary offering enabling insiders to clock out, and the deal ultimately priced

at $82. next thing you know, fire eye's below $70? that's right. 96 to 70 in the blink of an eye. remember, this company while losing money -- hideous decline occurring right as we learn the target turned off the fire eye program, which may have detected the hacking that's hurting them so badly. i think the cautionary note here is the yelps and linkedins are the exception. i think fire eye's the rule. sure, you made a lot of money if you rode it to the top. you need to get out when the insiders sold. something that happened in the year 2000 when so many insiders sold the whole dot-com edifice collapse. you can always get in later. all i'm saying, be careful. there's froth everywhere in the ipo market and many of the stocks could get crushed maybe when they announce secondaries from higher levels in the not-too-distant future. don't confuse ipos with ipas, although both can indeed make you drunk if you have too many of them and you just keep knockin' them down. stick with cramer.

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takeaways -- froth and rotation. that's what you need to know. i'm jim cramer. i will see you monday! hello, you're watching "worldwide exchange." i'm ross westgate. headlines from around the world, china's finance minister says his country must make extreme efforts on economic restructuring to maintain growth. this is pmi data falling to an eighth-month low. >> how to make real reform to take away risk to burst some bubble and the cause this could ct