qqq. >> mike? >> in your stocking. >> i'm melissa lee, for more option action, check out the web site. in the meantime, don't go 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. may job is to educate and teach you so call me or tweet me. this market has some engine to it, doesn't it? think about it. after running off about 4% in a straight line, you'd think we'd have some profit takes r takers come in.

we didn't see many of them at all today. dow gaining 27 points, nasdaq climbing .36%. you need to understand how extraordinary this whole rally is. we're seeing wholesale re-evaluations of what the market will pay for companies' future earnings. it's remarkable because typically you need something to happen to trigger this kind of euphoric buying behavior. but nothing's happened to justify paying higher prices for the same earnings estimate. this is all about an animal spirited bull market that i have to admit seems to know no bounds. think about it. think about the absence of catalysts. start with the federal reserve. what did the federal reserve do to inspire this market? actually, nothing. federal reserve did nothing at all. it merely stayed the course. it said it would be patient. yet everyone told me wow, that's it. all it did was do what it always

does. how about oil? all it did this week was nothing, meandering around the 50s. earnings have been done. some good ones, red hat, the open source software company we'll be hearing from tonight. both of which reported some pretty decent numbers. then there was nike and finish line. day before, same exact pattern, good numbers from oracle, the giant software company then disappointment from they were bad. then we got more week numbers out of europe. nothing special. same, awful. degradati degradation, japan, miserable. united states, consistent with what we've gotten. nothing different. nothing. geopolitical risk? no movement. vladimir putin does in his

heels. emerging markets hang by a thread. we did get an olive branch to cuba, if every one of them started shopping it wouldn't mean anything. it's worth noting, however, that there was no rancor coming out of washington between republicans and democrat this is year last year this helped the bulls not the bears. part and parcel with the positive outlook that i'm talking about. he moved the stock market up. so what the heck is happening? i think it's three things. one is that there were expectation farce totally different kind of weak. the conventional media gotten a inkling leaked to papers that fed chief janet yellen was going to say it's time to tighten. that caused hedge funds to take one more bite out of the apple.

turned out to be a poisonous apple. all those who were 100% posed to stocks except perhaps oils made a ton of money. but the hedge funds made a tune of money. they crystalize it had potential horror out there. those beds were unwound wednesday afternoon, thursday and today and that unwind where shorts had to be brought in was a clos sell part of this rally and its after math. that's right, hedge funds, call them wild. second, those who thought oil was in freefall pressed their bet this is weak. 50. there's no reason to stop it design. flog the saudis, flog nothing from opec. the fact that the slide reversed itself innocent end of a world scenario collapse of one state owned oil company, one private oil company, didn't happen. and now you had a cessation of

the end of the year tax selling so the worst oils were the best performers. that must have really stymie it had shorts. again, without a catalyst like a financial disaster, sellers did not materialize and without conventional sellers materializing you don't get the negative prices that give short sell terse win. there's no supplies they can be. without disasters fund managers were willing to pay more for the same data. we have stocks levitating on the same news over and over again, biotechs, bottom fishing within the oil companies today. take away the worry, stocks are worth more. how does this impact next week's game plan? simple. we got unspoken rules on wall street and one of them is you don't make any big negative changes with just a couple days to go in the year. you want to tick off a fund manager who's a client, go down with one of his stocks with a few days to go. not kosher. second rule, at the end of the

up year, of an up year, a fund manager will place orders underneath their stocks to make sure big sellers don't knock them down. as long as there's no news, those props 4 work. when you see the paucity of news you can see how we might be sitting pretty from here until year end. take monday, all we have is existing home sales. here's a figure that's routinely disappointed. it hasn't mattered to the markets. tuesday we have durable goods and there's a chance we might get a disappointment but believe me it will be explained away as the part of the slowdown in oil and gas drilling. again, not a game changer. walgreens reports on tuesday and here we are with another inconsequential reports. we got numbers from rite aid and cvs, i don't expect the same numbers from walgreens. they've had earnings and supply issues. however, walgreens the involved with a major transformation from being doe midwestic to worldwide via the acquisition of boots so the market will look through any weakness. we get initial jobless claims a day earlier wednesday and here we have another non-event. these numbers influence the fed

and the fed just spoke so who cares. we have a long way before we have to carry about the fed again. thursday, christmas. of course i wish you a merry christmas. i hope you have your stocking stuffers ready. this is my annual appeal i make to you to buy one share of disney for each kid. you're buying ahead of 2015's new "star wars" movie so you have a whole year to teach your kids about the joy of stock ownership. thank you again bob for your successful sp successful stewardship of the franchise. i think there will be more gift cards than ever before. i'm clairvoyant on this stuff, you have to trust me. so let me give you friday's pain err week ahead. go buy black hawk on earlier days. remember, h-a-w-k. that's the company that does a hammer lock on the walls of gift cards. get the jump on everyone else. it will be a huge year for that company. i want to reiterate that you should by verifone because

they're more squaophisticated c readers will be rolled out. finally, k i just point out that j juno, a red hot ipo, the targets drugs that get cancers and not rest of your body, i believe all three will be walked up next week. why? this is particularly the sweet spot in bio tech along with the four horsemen of the big pharma apocalypse. if you don't know about what this means, you know what? you're just tuning in. gohr by a copy of "get rich carefully" a book that holds up rather well if i say so myself. here's my bottom line. in this environment no news is actually fabulous news. right now that means more pain for those who bet against the market and more gains for those who bet with it. i'm going to start the calls by going to jason in new jersey.

jason in. >> caller: hey, jim. booyah up in new jersey. >> what's going on? >> caller: not much. i wanted to make a quick shout out to the business school and happy birthday to my best friend. my birquestion is about syna. i wanted to get your input about the company and going forward? >> it's up a lot but it's a mobile computing company and that's where the action is. it's a good company, i think you're in good shape. i should do a piece on that. that's a very good call by you and yes, the salute to the rutgers business school is worth doing. let's go to amet in illinois. asenate. >> caller: hi, cramer. last week you said juno is the right buy for $13 to $18 when it opened but i could not get with that rate right now. it's trading at $36 to $38. is this still a good buy? >> i think it's going to go

right into the end of the year it's going to go higher. i think this is the biotech stock that people want along with blue bird bio and kite and they're not going to stop. they're going to keep buying this stock next week soy think that that's a good trade. after that we'll be thinking. can i go to steven in hawaii, please? steven? >> caller: aloha and mahalo. >> right back at you, i was in hilo earlier in the year. beautiful as ever. what's up? >> did you see the lava flow? >> yes, but mostly i looked at the great banyon trees and i got a picture in front of the one that babe ruth liked go. ahead. >> caller: my condolences to you and your family on your recent loss. >> thank you. >> caller: i have owned stock in avent products for many years. i'm a retirees from avon. i understand avon is in a little bit of trouble with the federal

governme government. they got fined for $135 million. >> i know. >> should i sell or buy? >> oh, geez, you know, this is such a -- sherry mccoy is so good. you know what i'm going to do? i want sherry mccoy to come on the show. she's the ceo. she is terrific. because right now i don't have a lot of hope for you. i really don't. i think avon is doing quite badly, frankly. just badly. anyway, no news is good news and that means plenty of gains for those who stuck with this extraordinary market. on "mad" tonight, open source leader red hat shot up like a rocket after reporting. i'll find out 23 it can continue to bring you green in 2015 when i talk to the ceo. miss out on the monster rally? i got three stocks left behind. plus eharmony promises to find you your perfect match. will it soon engage in its own romance with wall street? stay with cramer.

look at red hat run. here's a company that's the largest provider of open source software in the world. it declined more than 10% in the wake of a terrific quarter, something i told you that would happen given that adobe and cloud based software play blew away the numbers last week. then we got that surprise from oracle. put it together anded we're seeing real strength in enterprise software. red hat in particular is the number one purveyor of open source linux operating system for the enterprise, the lower cost alternative to microsoft. red hat gives away its software for free and sets its customers up as subscribers who pay regular fees for maintenance and customer service. it's not just operating system, the company does it with storage server software and virtualization software. two cent earnings beat off a 40

cent basis with higher-than-expected revenues that rose 15% year over year despite the fact that the sales got dinged by 300 basis points for currency. red hat managed to raise its sales guidance. this stock has given us a 28% gain since we last spoke to the ceo in june and even with today's move, there's more room to run. let's check in with jim whitehurst, the president and ceo of red hat. mr. whitehurst, welcome back to mad money, congratulations on a great quarter. >> thank you, great to see you, jim? i did a analysis of a quarter you and i spoke about last september of 2013. where your stock was hit and then i did one of the december 178 conference call. i have to tell you, they were both great quarters. last year your september quarter was terrific, we talked about it and i was surprised the stock didn't go up big. what do you think is finally convincing people? you had a great quarter last year and this great quarter except this time people loved it. >> well, i think what's happened is we've shown really

accelerating growth outside of linux. everybody knows for us linux and everybody knows we're successful and that business is growing well and continues to grow at double digits. our non-linux business grew at 48% on a constant currencies by us year over year and i think the concern with red hat has been is ate linux company or an open source company? our other categories are both at scale and growing nearly 50% year over year, i think even the skeptics are beginning to see the story. >> you had a terrific note. i was looking at your blog and you talked about the skeptics including -- you trotted out steve balmer's quote about linux, it's a cancer. but also is open source safe. it looks like something that i had heard from so many people was that cyber security would be the end of you guys. it's really the opposite. no one is worried now. >> well, first off i think open source has prub to be very safe. the analogy are you safer in a crowded shopping mall or a dark

alley? having the wisdom of the crowd is a powerful thing. it helped red hat as a business because we guarantee quick access to security updates and patches so a lot of press about things like heart bleed and shell-shocked, these bugs that are out there. within an hour our customers were fixed where people who just were downloading free software could have been months before they were able to identify those problems. both open source itself is becoming more secure but particular standout as a safe secure way to consume that software. >> were you surprised about the sony big data hacking and what that -- how that couldn't be -- that fire hose couldn't be stopped? >> i'm not surprised it happened. we obviously are involved with a lot of agencies that look at security and it's a major, major problem in general. it's not just the technology. it's people, it's access to passwor

passwords. it's a multifaceted layered complex problem and really every company is at risk and so companies need to really think hard about processes, training, certainly software, how they're updating their software, whole series of things will be required. it's a serious issue and every company is at risk. >> why don't you give us an example of a win. you say 25 out of 25, this time you have accelerated revenue, the fastest cash flow growth in three years. i'd like to hear about a greenfield win you picked up. >> sure i can give you a couple quick examples. you mention aid doby before. as adobe moves to their software to service model, they want to put that on their cloud providers. by running on red hat's infrastructure, they can unin the their own data center or amazon and it runs in both places. it's a place where we can enable other software to service company is one example of a company you mentioned before. fico, big analytics company.

as we move to this world of big data, those application cans scale up quickly. you get some companies who want to run it as a service, others want to run it in their own day center. so fico is standardized on red hat open shift which is our platform as a service. so those application cans run and scale out easily on fico's infrastructure but they can run just as easily on a company's own infrastructure. the traditional scaleup model of infrastructure was you build a piece of infrastructure for an application. in this new world you need to have your infrastructure run anywhere and it has to be able to scale easily. so fico is another great example of a substantial customer win just recently for all of their new analytics application. >> i'm going -- as i said, i texted out a bunch of calls and there's always 25 to 25. you always seem to win. is anyone trying to challenge you? you're getting so many wins. it's a given, no one has come in to try to challenge red hat?

>> well, i wouldn't say that no one trusts the challenges but our core market is pretty safe. our biggest challenge when we do lose deals something we'll keep the software but you don't need your service because the software is so good. so to some extent there have been times we can work ourselves out of a job when people say "we love your software so much, we'll keep it, we won't pay you for services and support." but most companies realize the value of service and support in light of things like security. so we have a high renewal rate so it's been a couple years where we have a customer not renew. those customers continue to grow at 20% this past quarter and that's a constant number so people get started on it see the value of it and just continue to scale and scale and scale. >> obviously you've turned a lot of heads and i want to urge people to look at the red hat blog. jim whitehurst, president and ceo of red hat, thank you for coming on the show. >> thank you. happy holidays. >> same to you.

after the break, i'll try to mach you some more money.

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we call that predictable. thrillingly predictable. two questions: what should i buy and have i missed the rally? it's up to you to answer these questions yourself but you should try to develop consistency and discipline. i've heard this the hard way. many times when i was running my own hedge fund i would miss a 4% rally like we just had. my tendency was never to say "i missed it" intoday say "what do we buy now?" that's why we need a displain their in the room. for me i was lucky enough to have karen crimer in the room, a tough as nails trader and didn't mind how upsetting it was. we reviewed our portfolio every couple of hours and the meetings were brutal, but we tripled the

market's fees over 14 years so you have to presume we did things right. one was endlessly reviewing to test conviction and decide whether opportunities had come and gone. the latter being the most important. so i'm going to let you be a fly on the one in one of these meetings. on a day like today i would come into our morning meeting head before the market open and say "hey, is it time to buy?" care wou karen would look at me with skosh and say "time to buy? you're skidding, time to buy was tuesday when everyone hated the market" i would say "we didn't buy then." she would say "we were stupid, we got it wrong, now we have to pay the price." >> i would say "what if it doesn't come in? what do we do?" she responded "nothing, we missed it and we have to own up to that and pay it? we missed it." after a few years i pretty much could intuit the response so i stop asking and tried to find st stocks that pulled back a bit.

now, these days when i mention this discipline on twitter and the market goes higher, i'm trounce bid people who more with years my junior. you should spend time with karen. i find the reactions painful because they're so adamant that it was not too late to buy. i wanted to show them how much better it is to wait. probably 90% of the time it was better to wait. they don't understand discipline, though. they'll no doubt be blown out of the game which is what happens to everyone. these critics are short timers so you pick your spots. what would have been accept to believe buy today? how about some nike, betting expectations were just too high but it was a terrific quarter? that's okay. it acts badly so maybe someone downgrades it monday. remember you have to be cynical. these things do happen. maybe deckers or sketchers. two great companies. their stocks were down in sympathy with nookky as well as the incredibly disappointing finish line. i think you make your peace with

one of these and use the collateral damage to buy some, maybe half your position then pick up the rest on monday if some jittery analyst cuts and runs. that's how it's done at the professional level. you see you missed the rally, that means you're a beggar. and beggars, they can't be choosers. chuck in michigan. chuck? >> caller: merry christmas, jim. >> hmerry christmas. >> caller: a freezing michigan. >> really? it's dloeld? hard ball to michigan, booyah. >> caller: with the stock down more in 30%, increased competition and the news of it unlocking on december 23, is it time to get out of gopro, hold it or buy it? >> if people -- if this unlocking occurs and there's not millions upon millions of shares that are sold this stock will be a strong buy. this lockup is what's kept it down so let's see what happens.

i think you'll be surprised. i don't think it will be as many sellers as people think. i'll go to glenn in florida, please. glenn. >> caller: booyah coach cramer. >> yo, how are you? >> caller: good. hi, jim. santa wants to buy a stock for my baby granddaughter ava for christmas and with the affordable care act in full force and the aging of our population does radnet stand to benefit from its diagnostic imaging services? is it a good christmas buy? >> i think that's too dicey. when you do these buys you have to make it so there's something like a buyback, something known to the kid like a dividend so you can teach these thins. i always come back to buying disney. start with disney. how about art in wisconsin. art? >> caller: jim, thanks for taking my call. >> of course. >> caller: you are the encyclopedia of investing. >> i try. >> >> caller: have read your book. my question concerns canadian

solar. these guys have not been performing very well, although their quarter three and even their forecast for quarter four look good. they've got a good product, project pipeline and they have good mentions however they got a poor disappointing performance of the stock itself. >> when you read the research, the research is always -- the same thing we were talking about, even though these are not competitive with the plunging price of oil, they trade with it. i have to tell you, they do. they do. so i say don't fight the tape, don't buy the canadian solar. i hope the tax loss will run the end of the week and maybe in january take a look at it. after many years and missed rallies i can tell you right now you picked your spot. remember, beggars can't be choosers. much more mad money ahead including my exclusive with match making giant eharmony. the dating site says it produces more marriages than any other service on the planet but with the company entertain ago

proposal to go public, i'll learn more about this love store write the ceo. then paycheck just beat on earnings. is this your best chance to clack in with this discount? your call, the lightning round and a look back at the week that was. stick with cramer.

you may not know this but the day after christmas kicks off the biggest season for the year for online dating which has gone from being a punch line, people joked about but did in secret to a major business that's considered totally socially acceptable among especially younger generation. the largest player is isc interactive which owns match.com and o.k. cupid but they're just one piece of the putzle with this cats and dog interactive company. here's what i think. the most effective player, the one that study after study has shown gets users the best matches with the lowest divorce rate in the industry is the number-two player, the privately held eharmony. eharmony is so good at matching beam other people they've decided to branch out into matching people with companies to find the best fit for a given job. the kpab is developing this

capability right now and they expected to do a graduated rollout with an alpha version at the end of the year and a full rollout in second half of 2015. i think it will be a huge development. last night i had a chance to go off the tape and dr. neil clark warren, the founder, chairman and ceo of eharmony who happens to be a big fan of the show. take a look. doctor, i'm thrilled your here. we on wall street talk about algorithms, an algorithm that produces the possibility of a successful trade. i feel sway eharmony was the first algorithm. >> well, i have to tell you, we've had 10 billion matches and we've had a million marriages so that's two million people and then we've had a million other couples who have gotten together but they haven't gotten married because they're wary of it. but we've had a lot of experience with matches and we hope we can keep doing that for the rest of our days. >> you have documented empirical

success versus the competition, right? >> oh, yeah. well, we did a big study of 20,000 marriages. we did really well with that study. you have to understand how thrilling it is to find that people really believe that they want to be with the same person for all the rest of their lives. they're absolutely sure of it. and our divorce rate is only 3.86%. >> versus the general population? >> well, you know divorce rate in the general population can go as high as 40%, 45%. so 3.86% is a thrilling number. >> one of the things i thought was very interesting was this new idea about eharmony plus. we spend a lot of time talking with companies that are cloud-based companies that do human resources and tell you who to hire and who's not but you're using a brilliant algorithm to

figure without matches company to person. >> well, i'm really excited about that. >> you should be. >> i don't know great marriages where the person comes home every night and says "i hate my job." if you love your job, you have a much better chance of loving your marriage, right? so we decided we're going to get into jobs so for the last three years we've worked on careers and we take on four things. we say do you have the same kind of culture as this company has? do you match up on cull secure in and then we want the person to have the tools to do the job that they need to do and we can determine that pretty fast. we want them to have a great personality fit with the person they report to and then the fourth thing is there are about eight or ten other people usually that you need to have a great personality fit. if you have those four things

you'll have a great job. >> this brings me to an obvious point which is that aici, they're a real money maker. the service that you're just talking about would be ideal for many corporations and the marketplace, stock market, would love a steak in that particular company. would you want to give a part of your company up to being public given the fact that you have succeeded so much? i bet you successful people, people who have gotten married want to own you, corporations that have used you would own shares. why not go there? if i could own stock, i'd like a piece of it. >> well, i love your saying that and we've been moving a little bit that way but when you've been through a tough time where people took over -- we sold 30% of our company and people didn't know how to run it and things started sliding on souse here i

am as old as i am and i sold our house in maine and moved back to california to be ceo of the company, you're kind of wary. you're a little wary of selling your company to other people but we've been thinking more and more about it. >> the liquidity event can -- is something you have to consider at any age. as you get older i'm sure the bankers are telling you -- your advisors are saying you need liquidity. >> we probably do need a liquidity event but we need it a lot less than we used to because we make enough money and we pay our people enough and give them great bonuses and we want all of them to feel like boy do they appreciate us here. and maybe we'll have to do something like an ipo just for that particular part of it. >> i think it would be a great fit for the marketplace and you have done a lot of greatness for people. you've done a great, great thing and it also happens to be a company is the way i look at it. >> i'm excited about this that,

but i'm excited about being on this show. you've got to listen to me, i'm older than you so you've got to listen to me that i love being on this show because i watch. >> it you're the first guest that's ever said that. dr. neil clark warren is the founder and chairman of eharmony. thank you so much, sir. i'm honored by those words. good to see you.

it is time. it's time for the lightning round. and then the lightning round is over. are you ready? time for the lightning round. let's start with mike in new jersey. mike? >> caller: booyah. happy chanukah, jim. >> man, happy chanukah right back at you. what's going on? >> caller: i appreciate it. hey, i own this long term but then i was deep in the money calls what's your thought? >> sell half on monday and let the rest run. it will be the largest energy rally in his voy let's take after off. stephanie in oregon. stephanie? >> caller: booyah!

from oregon, home of the ducks, i'm so excited to talk to you. i want to ask you about sea corps. i bought you after you had beth mooney on. do you think it's a good -- >> i thought it was okay, the last quarter was not anything to write home about can dudley and i would have liked a better quarter. bank stocks are going up. it's not my favorite. let's go to gabrielle in california. >> caller: i'm a first time caller from lincoln near sacramento. >> i know that area, what's up. >> caller: thanks for everything you've taught me. i'm down 20% on my atlas pipeline. i also have some kmi and the long term horizon. should i hold the apl or sell it? >> i think apl you'll get a bounce next week. look, it acts as if it's the -- the yield is too high. it's at 9%. you get a bounce and you trim.

kmi not a mass limited partnership, on fire doing well and that remain misfavorite. let's go to frank in new york. please, frank. >> caller: booyah, jim. i want to know about lithia motors. >> off good call. i like to go with a winning hand. good idea. to skip in new york, skip? >> caller: hey, how are you? this is skip from bay ridge, brooklyn. what's your intake on dbd? >> we had dbd on, good yield, they got good technology in the pipeline. i'm going to endorse dbd. now michael in california. michael? >> caller: what do you think about priceline? >> i'd rather be in costco. honestly. i just think it's like to be domestic because doe midwest sick very good. let's go to jared. everyone goes to jared. in new york, jared, jared?

>> caller: yes. >> you're up. >> caller: how you doing, jim, booyah, happy holidays. >> same. >> caller: long time fan, first time caller, just wanted to get your take on henry shine. >> henry shine is going hard. we had mr. bergman on, i have to tell you, that company is probably the number one stock for growth guys to reach between here and year end. henry schine is good for me. and that, ladies and gentlemen, is the conclusion of the lightning round. >> goldilocks versus the three bears. when everything is just going right for the bulls and wrong for the bears. first, let's -- [ cat meowing ] russian banks could be stretched

to the point of breaking and the russian economy going to into severe recession. no happy ending. petrobr petrobras, along with the foreign holders of debt which is thought to be in tens of billions of dollars. okay, i need mexican flag now. i forgot, we're putting on a high school production. mexican flag. stick with cramime. oh, my god. [ laughter ] that's me. how is it possible? >> what the heck? who's that supposed to be? >> lenin. >> it's almost as if there's a

recipe. i have a white hat, a shore fire way to bake, a bull cake. do we have a whipper? >> off spoon. >> the most important ingredient for turbo charged market is growth without inflation. sure, oil broke down again. it needs more eggs, the bio teches have bounced right back and that includes biogen idec, it includes gilead. they're the four horsemen of the big pharma apocalypse. how sweet it is. .

let me give you a double whammy, a stock that lets you play improve the employment situation in the country and the impending rise in short term interest rates. i'm talking about paycheck, payx, specializing in small and medium size businesses. the kind that create jobs. on top of that, paychecks has a growing outsourced human resources division and the company made a series of small softwares and service acquisitions to develop a presence in the cloud and sports a juicy 3.3% yield. paychecks just reported this

morning and though the company beat wall street earnings estimates by a penny while posting slightly higher revenue, the stock fell around 3%. paychex left its guidance unchanged. given what's around the corner i think this can be a terrific buying opportunity because the moment the federal reserve raises rates the company's earnings get a nice boost. why? that's how the processing business works. wean the moment when your employer gives paychex a big slug of money and the moment the company pays you, it's collecting interest. super short term rates are too low. they're insanely low but if the fed takes them up higher next year, very good news for p paychex. let's get a closer look with the ceo. welcome back to mad money. >> thanks, jim, good to be here. >> i've got to tell you. when i look through numbers i still think like housing we are in a recessionary level of small business creation.

it still hasn't broken out and i've got to believe that there's something structural wrong in the country that that's happening. >> well, i think you're right. we had a solid quart we are 10% service revenue growth and good net income growth of 9% but it still seems to be slow on new business formation. you're right. the hiring was up, it's moderated now but new business startups are still a little slow. >> there's also, i think, an un -- let's just say a sophisticated look on what the law will be next year in terms of the affordable care act. do you think it will be a sunned sudden rush in january that with what people thought about health care and payroll was wrong? >> i think it's going to be a rush for the need for people to have compliant -- be in compliance and get the recording. we've already seen a pickup in

sales. for our products that help our employers be compliance with the affordable care act and help them do the reporting so we've seen this pick up in the last two months. i think it will be a big first quarter for that product. >> i know when the call came up near the end that you've been doing good business in texas in fracking. is this something that -- are you seeing already a slowdown there or is that just consistent business and we shouldn't be fretting $56 oil prices. >> well, we haven't seen a slowdown there yet that was where the fastest small business employment has been going on is texas to north dakota. right in the central part of the u.s. all around energy picking up the jobs in that area. it could happen but we haven't seen it at this point. it's been the most positive area of the country. >> how about this 401(k) business? to me this is a natural. i know from hr that 401(k) is ail dwroenlien to hr department.

what kind of growth are you seeing in that business? >> right now it's solid. we're up around 6% growth and we feel pretty good about it. we have the most 401(k)s of anyone in this business right now, about 65,000 and we think that's going to continue to have nice growth. and with the congress the way it is now, i think they'll be supportive of pushing more 401(k) options to small business employers. >> that's my belief, too. i think the reconfiguration congress is very pro 401(k). we had a professional employment organization on not that long ago that is offering a concierge service that to me just has these fabulous margins. are you able to offer a super premium to people who just want everything done by you and don't want to have a thought in their head about not being compliant? >> i think we have a fully bundled service that gives you everything for from help with your recruiting right through to all your hr needs. we actually have 400 hr specialists around the country

that will service small businesses and give them that hr expertise that they need. a phone call away and they visit them frequently as well. we can do employee handbooks, you name it. i think that's going to continue to grow. it's one of our fastest-growing businesses. >> last question. when you look at your crystal ball for next year at this time we didn't have a lot of washington turmoil. we didn't have a lot -- we're kind of in a calm period in this country. do you think that will just make people saying you know what? i'm getting this stuff from washington behind us, now i can start a business. >> i sure hope so. i think affordable care act is still going to be a little bit of a head wind from the new business setup and businesses being concerned but i think once we get past that i do think right now other than generally taxes i think it doesn't feel too old too bad from a regulatory perspective but we'll see what happens. >> i think you're in great shape for 2015. marty mucci, paychex ceo, thanks for coming on the show. >> thanks, jim, good to be here.

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