and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. > i'm jim cramer, welcome to my world. >> you need to get in the game. >> firms are going to go out of business and he's nuts, they're nuts, they know nothing. >> i always like to say there is a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm trying to save you a little money. my job, not just to entertain but to educate. call me at 1-800-743-cnbc. after the tenth straight up day in the market, seemingly endless winning streak, a day where the dow gained 84 points, s & p, .6%, nasdaq, .43%. we need to talk about something that a lot of people are taking issue, the fed's role in the stock market rally. we are going to make it clear, interesting and action oriented. here is what we'll do. there's no denying that the fed is creating an environment where companies can do well and stocks can do higher. we know the fed has allowed individuals and corporations to refinance and that's been a gigantic part of what made it possible for people to buy stocks and buy homes and for companies to buy stock and pay bigger dividends. by keeping money easy, the fed has encouraged the buying of equities, in part as bond market substitutes, and dividend paying stocks yield more than treasuries, and the tax treatment of dividends remains superior and far more bountiful than bond market, interest payments, coupons taxed at a much higher ordinary income much higher ordinary income rate. the fed has created a very helpful investment climate. no matter what critics say, unless unemployment makes a quantum leap to 6.5%, yes, ben bernanke is the father of the bull market. that is for certain. and the fed has been incredibly important impetus behind the giant move. now, there are tons of pessimists out there who believe that because the fed created this environment, the fed is doomed to destroy it. the moment they take away the punch bowl and start tightening, they believe -- i think that's wrong. and more important, i think you are getting ahead of yourself if that's really what are you worried about. people have been worried for a year now. just because bernanke made the bull market, doesn't mean it's a pitiful helpful orphan. the bull can stand on its own four legs, and even if it can't stand on its own now, i expect bernanke won't tighten until we are at a place we will be able to stand and it won't crush the stock market. the crucial point is, that's not where we are right now, even as you hear it being asked and talked about endlessly. it's not where we are right now. for the last five years i have told you over and over again, you have to get out of bonds and into stocks for as long as this period lasts. in other words, as long as the fed is being benign and bernake is saying let there be profits, i think you should make as much money as possible. while it lasts, i think you would be nuts not to try and benefit from it. i'm a huge believer you won't necessarily catch the top of any market. but that, if you are -- if you decide to be in and you decide to be disciplined you can get out with some very big winnings even after it starts going down. if you sit things out because one day at some undefined point down the road it must end, you are committing the ultimate sin of passing up what might be a once in a lifetime opportunity to make money. plus, many of the companies that are doing well today are not expensive on earnings basis, even unaided by the lack of serious competition. to me, the risks of a precipitous sell-off are much lower if or when it does occur and that makes it more imperative that this rally not be blindly dismissed by bearish theoreticians who are saying that danger lurks around every corner. high quality, high growth companies that sell 13 times earnings or less, financials, cut tech on this, and the risk that we could sell off if the fed tightens overnight isn't as miserably frightening as if they sold like the '87 crash. the underlying companies were growing much more slowly then, sure. yeah, i know, i've got to tell you if we moved up to 7% to 10% higher from here, that's a different story. up 7% to 10% higher, i would say i don't like the odds. i think there is a lot of selling to do. here is the rub. if we were to rally 7% to 10% from here and the fed tightened quickly, we may not even go down 7% when it happens. stocks will do better than bonds. the real enemy in that scenario, and i say the only people who don't need to be in stocks are the people who don't invest under any circumstances, it's against their charter or they don't believe in it, or ones that are so rich, they don't need to risk anything and tell you not to. they only need to get rich once. i want to help you get rich. and these are the most vociferous critics. can they give any credit to corporate america? the companies have played in big hand in the rally too. we have seen tremendous execution of the social contract in terms of huge buybacks and dividend boosts, bernanke provided the opportunity but didn't provide the smarts, the execution, just created a backdrop that allows companies with good businesses to prevail. you never would have bothered to buy stocks if you believed from the get go this had to end and end in tears. would you have avoided stocks the whole way which is what these people -- i mean, that's what they accomplish. you -- the whole way or from any level, you heard the jeremiads how the fed could pull the rug out at any minute. i'm really angry this morning. getting angry about this. i'm really steamed, you know why? i would like just once, i would like to hear the fed fearing bears to say, look, i acknowledge my view would have kept you out of stocks for the last 1,000, 2,000, 3,000, 4,000 or even 5,000 dow points and now i doubt even if bernanke leaves right now that we will give up those points, but i do think it should be on the radar screen at some point. would that be too much to ask? is that too much for someone to admit? the real irony is if the economy does get better, companies will do better and stocks can do better. but bonds, they will almost always have to do worse. always. i can't think of a single situation where you could own bonds right now, regardless of your age or risk profiles. owning a dangerous long-term bond, with that budget deficit we have, come on. you buy that stuff at 130 versus 100, and first okay, johnson & johnson, common stock with good dividend, and it makes no sense to me, bernanke bashers tell people to sell their bonds. get everyone to sell long-term bond funds. but until they wise up, these bears will be the enemy of your personal wealth. they have kept you from taking that opportunity and they have no humility and no remorse. they have nothing. no gain at all. they simply don't think this rally counts. they don't think it matters. and that you could have made any money, even though it's right there, and they think that these gains are ill gotten. here is my bottom line. ill gotten gains are gains that are stolen, expropriated or looted. these stock markets gains are totally legitimate, accepted at the bank and at fine retail stores everywhere. so while we acknowledge this period of bountiful profits will come to an end, not enough of a reason to keep you away from the market as long as it lasts. when things go bad, believe me, stocks will seem defensive, and the bonds, as long as things are good, we'll let you say stocks have a lot more upside. that's right, what's traditionally defensive, the bond funds could be lethal. what is risky, high-quality stocks with good dividends even after this run make the most sense to own. margaret in michigan. margaret. >> good day, mr. cramer. thank you so much for your help to the listeners. >> thank you. >> caller: booyah to you and a boo-hoo from me. >> what's the matter? >> caller: i've got cliff's natural resources. i bought last year in the mid 40s and it's way down. i am a long-term investor and if you say hang on, i will. >> i got you. look, i was talking about this with two other investment professionals. look, they raised capital, the balance sheet is better. is there no level? you need china goes up for a couple of days and the stock will rally 15% and we'll relook at it, margaret, and then make the move to go. not now, i don't want to do it, and the bears have no remorse whatsoever about keeping you you out of this rally. i got to keep you in, get you out of those bond funds, that's what's going to crush you, the bonds, not the stocks. "mad money" will be right back. coming up, housing high? investors are still searching for more ways to play the red-hot housing market and tonight, cramer has an open house. is it time for you to move in to shares of mortgage insurer radiant group? cramer conducts an inspection with the ceo next. later, in the bag? cramer has been tuning in to the life-styles of the rich and famous to find which luxury names could be buoyed by their bucks. tonight, that coach purse may cost a pretty penny, but could an investment in the brand pay you back with interest? jim tries the story on for size. plus, the suite life? netsuite helps companies tie together their operations online, using its cloud computing infrastructure. could its stock lead your portfolio higher, or will competitors roll in and steal its thunder? don't miss cramer's exclusive with its ceo. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter, tweet cramer #madtweets. email madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ you know my heart burns for you... ♪ i'm up next, but now i'm singing the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is! so if ydead battery,t tire, need a tow or lock your keys in the car, geico's emergency roadside assistance is there 24/7. oh dear, i got a flat tire. hmmm. uh... yeah, can you find a take where it's a bit more dramatic on that last line, yeah? yeah i got it right here. someone help me!!! i have a flat tire!!! well it's good... good for me. what do you think? geico. fifteen minutes could save you fifteen percent or more on car insurance. the housing market, it's roaring back and taking the mortgage insurance industry with it. the mortgage insurance names were some of the most despised stocks when housing was imploding and stayed hated when housing was flat lining. now that housing is getting stronger, mortgage insurance stocks are rocketing higher. three weeks ago, i recommended radiant. number one writer of private mortgage insurance as a way to speculate on housing. radiant was at $7.95. since then, company has become a lot less speculative and more solid. radian announced a gigantic secondary offer. wasn't that big when they announced it. people wanted in so badly, it dramatically improved the balance sheet. the stock went on to close at $8.45. that shows you how much demand there is. fast forward today, radian, now $10.34, up 31% from where i got behind it less than a month ago. writing tons of profitable new policies, and the end of the year, posted 2009 business will represent 75% of exposure. all the good stuff. the fha, radian's largest competition, has repeatedly raised prices and now says they plan on reducing market share to the old average of 8% to 10%. the fha is giving the business away. let's check in with s.a. ibrahim, the ceo of radian group to find out more about his company and where it's headed. welcome to "mad money." have a seat. >> good to be here. >> first, a little counterintuitive thing, most people see a big secondary, big offering, think it's bad. why did people realize and when you told them it was good that you raised money? didn't hurt the stock? why was it not surprising the stock went up? >> it's funny you commented on that before. the most interesting thing was when we were in the middle of raising capital, the meeting with the very large investor and said he had seen thousands of offerings and he was surprised that on the day they announced the offering, the stock actually went up. but the reason for that is people are betting on housing coming back, all the indicators positive in housing, and some of the big names that were behind taking positions when housing imploded are now taking positions on housing coming back. >> right. and i think what's important for people to recognize is that this business had a quick rebirth. a lot of people feel that you are just saddled with everything from 2005 to 2008. this business rolls off. >> yes, it does. velocity is pretty fast, particularly when the mortgage market is active. and initially in the downturn, the mortgage market was not active, with the lower rates we saw, a lot of refi business came in, and the housing recovery, we are starting to see purchase business come back. >> at the same time, fha had been trying to hog the market. and i listened to the guy who runs it. i don't think they want to compete with you anymore. >> the fha, if it's aligned with us, as is the rest of washington and saying that private capital should play a bigger role and government capital can scale back, starting with the fha and the gses, we in the market, we stand to benefit from that happening. >> you are the huge winner here. there are some people, naysayers, barron's said you were a house of cards. i look at it this way. a competitor just settled a claim, and a lot of people thought they would pay tens of thousands of dollars per claim. settled $5,000 per claim versus $70,000 that countrywide was asserting. i have to believe you won't have to pay anywhere near these naysayers say you have to pay. >> jim, i can't comment on any negotiations and discussions we are having. suffice it to say that we all look at the same factors and we all are trying to get our legacy behind us, and in our case, we have also focused very heavily on writing new business to the point where the new business that we have written since 2009, very profitable, high quality business, will shortly make up more than half of our book. >> okay. by the end of the year, could be more than that, but let me just -- let me go back on this a little bit. how about this? you look at what competitor ended up having to pay, and you look at what you're reserving. it would be substantially better if you ended up paying what your competitor did than what some people think you may end up paying. would you be thrilled if what they did, you could get? >> as much as i would like to answer the question, it's apples and oranges because of types of claims. it would be very positive. >> people think you are under reserved. in light of common practice happening away you from, you do not seem like are you under reserved at all. >> i don't believe so. in fact, i'm required to reserve the right way and, in fact, there are two people who look over everything we serve. an independent third party that is an independent actuarial firm to come and write on top of us and also our outside audit firm, they independently actuarially calculate our reserves. >> the refinance business has been good for you. instead we build one million homes, the stretch, the number i'm using on "mad money," 1.2 million homes. what would that mean for your business if you kept market share consistent for additional homes? >> much as we like the refinance business, we love the purchase business. because the purchase borrowers have a higher propensity to get mortgage insurance, particularly if you look at the demographics, first time home buyers have been sitting on the sideline. first time home buyers are very intimidated, particularly if they think home prices are falling. and typically they don't have enough down payment so they require mortgage insurance. >> that's exactly where you fit in. number one player in this business with the government trying to get out, because the government is under pressure from congress, and radian rdm will be the winner. s.a. ibrahim, ceo of radian group. we like it in the high sevens, even more at ten. why? more statutory capital. rdn is going higher. after the break, i try to make you more money. coming up, in the bag? cramer has been tuning in to the lifestyles of the rich and famous to find which luxury names could be buoyed by their bucks. tonight, that coach purse may cost a pretty penny, but could an investment in the brand pay you back with interest? jim tries the story on for size. in this seemingly unbeatable market that keeps zooming higher, we're constantly bargain hunting for stocks that represent real value, stocks you can buy right now, right here, without feeling like a total chump when you are doing it. tonight, i want to talk to you about coach, coh. the high-end handbag company that some people say isn't that much high end anymore. we added it to the great gatsby index last night. the index we use as a barometer to track how the rich are spending. i got to tell you, coach, it has been a real dog lately. but i think we would be approaching one of those every dog has its day moments. the stock has been absolutely hammered over the last year, and back on june 15th, i told you i would rather own michael kors as expensive as it was than coach. since then, kors is up 54% while coach has declined another 17%. i don't know. maybe better to be lucky than good. coach has drifted nearly 30 points off its highs, and several disappointing quarters in a row, including the most recent mis in late january, where same-store sales declined 2%. i remember when the company used to grow high single digits was disappointing. north america, getting eaten alive by competitors like kors and kate spade. what we have seen in the long decline, one that has taken coach from $79 to slightly below $50 is a stock that made that vicious, difficult, ugly transition from beautiful growth stock to hideous value play. coach sells 12 times earnings, considerably cheaper than the average stock. and they are a higher yielding stock and what we really have seen in retail, when companies stumble, they ultimately bottom at a certain point and start to rebound. think about gap, that tumbled for years, bottomed in august of 2011. gap bounced along the bottom and the company turned things around and rocketed higher. how about jones group? got crushed in april 2010 and then bottomed, and stock got too darn cheap. ann taylor, flat lined most of 2011, had a big pop in august 2012 as it revamped its brand. these stocks do stop going down, and generally they start to go higher. coach, i think is bottoming out here. more important, we have been hearing rumors that coach might take itself private or be acquired by a foreign luxury apparel company, like lvmh, louis vuitton. these high end retailers, they are all doing pretty well and can do some buying. and that obviously, a takeover by lvmh would take the stock much higher. we have seen other apparel plays go higher. timberland, acquired by vf corp. 43% premium. if coach got taken over for the same valuation that vf corp paid for timberland, coach would be 56% higher than it is now. let's do some other comparables. j. crew taken private. mickey drexler, much better than coach, but taken private in 2010. and warner acquired by pvh. those deals had lower prices than timberland. you use a valuation for a coach takeout like that, you still get a 25% premium to where coach is right now. i like that. plus, it's not like coach is sitting there getting shot at and doing nothing about the dilemma, saying i'm sorry. sorry that we're not improving. the company has been taking action. we learned a month earlier that coach's long-time ceo lou frankfurt will be stepping down at the beginning of the year, although he will stay on as chairman and be placed by victor luis. and he has led the company's expansion to asia, a huge growth driver for the stock. lou did a pretty good job. it used to be a little company. he always struck me as one of the best execs in the business. after a year of lousy performance, you know what? the company needs to make a change, if only to show the market they are trying to turn over a new leaf. there is a sense that the coach brand got stodgy, logo became way too pervasive. outlet stores grew to be too large a part of the business. and 30% of the sales came from outlets and when that happened, coach lost some of its aspirational luxury brand halo. and at that point a lot of people said, let's go to canal street in lower new york city and buy a fake, if the real one lost that much luster. really, our undercover team just this morning bought these fakes, on canal street. today. these are the real deal. and can you actually tell the difference? well, i got to tell you before i -- i'm jumping to conclusions. i've called these fakes, but the salespeople on the street, they did tell us that these were real, so it's entirely possible that in the time since we started the show, that maybe they developed a new curbside set of distributors. combat the stodginess rap, more trendy solutions they hope to appeal to the higher end segment of the market and a new bag line. higher margins than the one they just retired. they lost market shares, coach is focused heavily on handbag business. competitors position themselves as lifestyle brands and sell merchandise across multiple categories of apparel and accessories. coach was never just a handbag store. handbags take up most real estate, except for the curbside store we saw. management shaking things up to sell multiple different product categories. think about it. i know i'm a man. therefore, don't necessarily understand these things, but it's easy to sell people more merchandise if you offer more types of products. getting someone to buy a half dozen purses a tough sell, a purse, pair of shoes, watch, belt, hat, that's so much easier. coach is rolling out new footwear product lines and offering more shoes, sandals, sneakers, smoking shoes, rain shoes, boat shoes, pumps, flats, flops. and coach has been selling footwear since the late '90s and they're the number one footwear brand in macy's. that's a good stock. expanding the business is the smart move. first step. the company plans to roll out new outwear, new types of jewelry and coach has been growing their men's business which could go from 8% to 25% in the next throw to five years. really need to execute. even though coach has become a value stock, it's still plenty of growth opportunities. especially in china. this used to excite people and people got like wait a second. new york is like -- america is not doing so well. why should we care about china? coach gets 11% of revenues from china. expected to grow to 20% over time. if the growth in china decelerates from 22% to 15%, you are still looking at $8 billion market five years down the road. if coach gets the same market share in japan, we are talking about a billion in incremental revenue, and that translates to $1 per share. what else? coach still has the industry leading margins, and generates a massive amount of cash flow. over a billion dollars a year in free cash flow. the company has bought back $2.5 billion worth of stock. last october, announced a new $1.5 billion buyback. $1.36 billion left. equal to a little less than 10% of coach's market cap. and that 2.4% yield. even after the stock buying and woes, the balance sheet is still beautiful. beautiful as a coach bag. and coach has 28% of domestic handbag market. coach may have stumbled, but there is value here with it selling 12 times next year's earnings. in the market that seems to go higher every darn day, hard to buy most stocks without feeling like a moron for chasing them. maybe that's the virtue here. you can buy coach, because coach is nearly 30 points off its 52 week high and three points above the low. stock has gotten obliterated as it made the painful transition. coach is down here, the value is for real and it wouldn't be nuts for someone to take it over or take it private. could be a very good investment here, and, yes, you know what? even better trade from now on whenever it gets down to the $45 to $50 range, where it is right now. let's go to glen in iowa. >> caller: hey, jim. long you time listener. i used to listen to you on the radio in shenandoah, iowa. >> the old real money program. that's where a lot of the phrases come from. >> caller: you talked about getting a piece of the new berkshire hathaway. since then, sears has tailed off, do you still hold those thoughts about that? >> no, no. we had a huge hit. someone asks where does booyah come from? a bunch of guys said they bought it in 25 from kmart and had a huge hit. we didn't call the top. very hard to call the top. made a substantial chunk of change and had to leave it. and then it went down a great deal. on the radio show, i liked it. still climbing, got on the tv show, had to change our mind, didn't get all the gains we should have, but got a nice gain and then skedaddle. shawn in maryland. >> caller: big daddy jim, how are you? >> real good, how are you, partner? >> caller: i need your insight on pool corp. bought at $37, $47 now. i noticed volume is low. 100,000 give or take. >> i have always felt this. we've actually commented on this as a housing play. it's an ancillary housing play. like we recommend certain roofing plays and window plays. pool is also that kind of play, and i have to tell you, you know, swimming pools, buy a new house, upended house like from toll, it might have a pool or might want to put in a pool. your house could increase in value. a loser to waste all that money putting in a pool when your house is going down. not anymore. i don't know what, do you think? from not to hot? could it happen? coach has been a dog lately. but it's made a painful transition from an expensive growth stock to a cheap value stock. you know what? maybe it's right to buy. stay with cramer. acceler-rental. at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. it's crunch time, cramerica. the eighth anniversary show is tomorrow. can you believe it? head to madmoney.cnbc.com and vote for your favorite moment. they're all great, and it's painful to choose, but it's your duty as a cramerican. and now it's time for the lightning round on cramer's mad money, and you call and i tell you buy or sell. and when the sound, the lightning round is over. are you ready, skedaddy. let's go to austin in florida. >> caller: booyah, jim. booyah. >> booyah. shoutout to the student investment club. >> caller: my stock is alj. >> i like cbr refining. we did a video on thestreet.com if you want more information. david in massachusetts. >> caller: jim, how are you. like the show, love the personality. >> thank you. >> caller: question is, tdt just upgraded. >> we recommend every single part in one of the airplanes, including bpa. we like honeywell, all of them. robert in missouri. big robert. >> caller: hello, jim. >> yo, yo. >> caller: my stock is ppg. >> you are a lucky man, that stock going higher. i don't like the way that the steelers broke up the team. kevin in new york. >> caller: my stock, hfc. >> my bad, i was talking about refiners earlier, i would have put hfc on the top. sorry, dan dicker. the refiners as long as oil is found in this country, keep going on the refiners at this pace. and ulta salon, sell, sell, sell. that's a freebie. stick with cramer. >> the lightning round sponsored by t.d. ameritrade. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. living with moderate to semeans living with pain.is it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira, to help relieve your pain and stop further joint damage. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. you know i loathe chasing stocks on the way up. very reluctant to endorse buying anything after a massive rally and hate to pay up for a 52-week high. wait for a pullback, buy on weakness. salesforce.com rallied, rallied, rallied some more. you had to buy it. now i'm looking like a company that looks like they could be the next salesforce.com. it does have a nose bleed valuation. i'm talking about netsuite. letter n for home gamers. this is an amazing stock. netsuite is a cloudbased software as a service company. provides medium businesses with the software applications they need to run the core functions of an enterprise. they back office software for payroll, tracking inventory, for order management and customer service. they provide e-commerce management capability and point of sale software too. this was the first to rate all of the different components into a single, easy to use cloud based software suite. net suite dominates the medium sized business market. stock has been roaring along with it. listen to this. three years ago, netsuite was at $12 and change. now at $76. up more than 500%. it's super expensive. trading 11 times sales, sales, not earnings. 174 times next year's earnings estimates. but you could have made the same objection at any point in the last couple of years and what happens? the stock just kept going higher. does netsuite belong in the same category with salesforce.com? it can be contained by traditionally valuation metrics. let's talk to zack renelson, president and ceo to learn more about his company and prospects. welcome to "mad money." >> thank you what an intro, you do a better job of describing my company than i do. >> we spent a huge amount of time trying to describe it. i went to the website, and you have gawker and a lot of our viewers watch gawker. gawker is a new company. you think they would be able to do this thing themselves or maybe would have had 100 people doing it. what do you do for gawker? people can go and recognize, oh, i've been there. >> we do exactly what you say we do. we run their business. the idea behind netsuite is to run a business, not a department. that's the way most business applications have been built. they use us from the moment the companies lead to the moment they collect cash. other great names, go pro, jaw bone, all of the new hot companies. start on netsuite. >> jaw bone, the wristband everybody is talking about. $600 million company. that uses you. >> go pro similarly. the headphones when you are skiing. zero to a billion overnight. netsuite. >> how did they know? you didn't replace someone. that was just a get go? >> it was a get go. these new entrepreneurs realize they need a different type of system to run their business. the last generation designed to run on premise isn't made to run a modern company. go pro went around the world and said i want one system to run my business. they found netsuite. i was telling the story you told to open the story, an older gentleman stood up and said i absolutely agree, my son is running his software, amazing, got him offline. what's your son's company's name? go pro. never heard of it. three years later, one of the world's hottest companies. >> it's everywhere. it's fabulous. >> right. >> if i had a company 200 people, typical company never heard of you guys, probably 40, 50 people do not produce revenue. your software takes people who i talk about historically, they aren't revenue producers, can we get rid of them? you replace some people who don't produce revenue. >> a great application for startups, mid sized business, any type of business you running. >> you have in your panoply, prudential, in honolulu, hawaii. that is the home of mark benioff. and he's best friends with your chairman and founder. >> he married evan goldberg, our founder. absolutely. it's a very small group. >> how could you go after prudential? >> they came after us. it's a great thing. companies usually come to us. we sell mission critical software, so it's hard to pick up the phone, say would you like to replace the heart of your company today? they find out their heart is sick if they are using something else, need a new system, and call us. prudential called us. a great story there. >> okay. i want to hear more. but you also have strong bloodlines. larry ellison, owns a huge share of this company. aren't you at certain times going against him? >> i don't think so. we target mid sized companies. oracles and saps, sometimes you hear about coming down market. we sell to companies with 1,000 employees and below typically. not the sweet spot from a product or sales standpoint. transaction size? $3 million. ours is $100,000. there's no way. >> but in the actual transcript, you slam sap. in your press release. >> did i do that? >> yes, yes. these guys laughing, and you talk about sap recently, quarterly, no one ever talks about the competitors missing. you do. >> it's good for sap's customers to know there are options out there. and they know thanks to you. >> okay. you guys directly are willing to talk about microsoft. >> oh, yeah. >> and not that positively. >> microsoft if you look at the mid market, it's not sap and oracle. microsoft is a leader with an old product called great plains. >> yes. i remember. >> this product is still what people use to run their business today. it was designed before the internet existed. we built modern architecture and almost every company uses this stone age product to run their company. >> i will read what a bear says. i need you to respond to this. this is saying netsuite, the stock is not a sell. we think it's likely that the firm's momentum slows. we can't with a straight face tell investors that initiating a position ten times, now, of course, higher, 2014 revenues is a good bet. what do you say to people who say i can't say i can't have a straight face if i tell people to buy you? >> you know more about markets than i do. i don't set the price of netsuite, the market does. the market set it whatever it is today. our focus is really about building value, solving customer problems. that's what we do every day. help our customers transform operations, bring them to the internet age, cloud age and we spend all our time worrying. we really don't worry about the stock price. we let the market take care of that. >> a great job building a terrific business. thank you so much. zach nelson, president and ceo of netsuite. go to the website, everything i have is available. take a look at it and make a judgment. rich stock, sometimes rich stocks come down not because of the company, but the overall market. these guys won't be affected by what pulls down the overall market. "mad money" is back after the break. i have been hearing lamentations that our market is leaving some behind. aluminum horrendous, fertilizers can't get out of their own way. to which i say good. that kind of leadership dooms us to failure. stocks get pushed up big by great fools willing to pay more for the same earnings. earnings are that are so driven by inflation, when central banks around the world see across the board price increases, these companies putting through, they will goose up interest rates dramatically and crush every stock with them. these commodity cyclical stocks, they are the enemy, not the friend of the bull. they are turncoats, fifth columnists, manchurian candidates of the ursa major bear party. ever go back and look at what led to us the shadow of the deadly bear market of 2007? perhaps you ought to. remember? that's when we took out these highs we just took out. i looked back at that market top. we had a total rogue's gallery of a handful of narrow leaders then, depending on the kindness and steroids of the chinese government and needing hyper inflation. that's what you want to pin your hopes on? now everyone says can we really be in a trustworthy bull market? freeport with oil and gas assets can be only regarded what is level best to destroy itself. and money costing so little right now. my question, whether you want a miner and refiner of foreign copper and gold to be leader in the market. freeport happened to be in the january to june 2008 rally. $33 to $61. most visible leaders, and peabody. how about that one? 50 points between january 2007 and june 2008. rallied as high as $89. the great coal bull market. and not only coal and peabody. and the halcyon days for the commodity player, debt spite gigantic efforts, no, alcoa is very much a commodity player, nothing stood for the faux bull market that ended and crashed more than the fertilizer companies, the ultimate leaders, stench still hangs over ag which soared from 30 in january 2007 to 113 in 2008. potash's move is still the stuff of bull market legend, perhaps outdone only by total market darling mosaic. toured from 157 to june 2008. the descent is every bit as precipitous as we discovered how easy it was to make fertilizer and the barriers to entry turned out to be much lower. steel was on fire back then too. and that's how u.s. steel came up to $191 in june 2008. terrific, nothing like shooting star ak steel, $18 in january 2007 to $73 in june 2008. don't bother to look that fly speck of a stock now. oil and gas rolled during those days, chesapeake, $27 in 2007. and actually doubled by june 2008. those were the leaders of the era, companies that made undifferentiated product that needed rampant inflation and an ever growing china to beat the numbers and stay strong. do you really want that kind of leadership? you're really worried about those stocks? i think you ought to recognize how zero sum those names were the last time they were on fire. at that moment, they had everything going for them and the rest of the market had so little going for it. all in all, i would rather take what we have going now. it's a lot healthier and certainly a lot safer and potentially much longer lasting. stay with cramer. 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