Focused on Security Cooperation events in the middle east since the beginning of the arab spring are a remind hear the true and lasting security includes governance that serves all citizens and respects universal human rights. So in the middle east as we do around the world the United States will continue to speak out on behalf of Inclusive Governance representation representative institutions, strong Civil Societies and human rights and we will work to expand the educational and Economic Opportunities that allow people especially young people torque fulfill their potential. Again, i want to thank you all of our gcc partners for making this summit a success. I believe that the camp david commitments i have described today can mark the beginning of a new era of cooperation between our countries, a closer Stronger Partnership that advances our mutual security for decades to come. So with that im going to take some questions, and i will start with julie pace because i promised her in the oval office that i would call on her. Thank you very much. You mentioned in your statement the broad support from the gcc for stopping iran from get agnew clear weapon. Did you get any specific commitments from the gulf leaders for the framework that you reached a few months ago and at least a commitment to not publicly oppose a deal if you are able to reach that . And on the gulfs main concern, irans destabilizing in the region, how can you really ensure that iran would not continue that if they had a influx of money from sanctions relief when they are already accuse tds of doing that now with a weaker economy . We didnt have a a document that we presented to them to sign on the bottom line will you approve of this Nuclear Framework deal because the deal is not completed. And in the same way that i wouldnt ask the United States senate to or the American People to sign off on something before they have actually seen the details of it, and given that im not going to sign off on any deal until ive seen the details of it i wouldnt expect them to either. What i did hear from our gcc partners was their agreement that if we can get a comprehensive, verifiable deal that cuts off the pathways to a Nuclear Weapon, that that would be in their interests and in the interests of the region as well as the world community. And so the question is then going to be is iran prepared to do whats required for the International Community to feel confidence that in fact its not a developing Nuclear Weapon. And have we set up the kinds of inspection regimes that allow such confidence to be maintained, not just next year or five years from now but out into the future. So what we did was we had secretary kerry secretary ernie moan ease who obviously was involved in negotiations as well to walk through why it was that we were confident that if the Framework Agreement weve arrived at were to be solidified that in fact we could verify that they did not have a Nuclear Weapon. And that was important to them, and i think gave them additional confidence. There was a concern, a concern that i share that even ifwhi÷r we deal effectively with the Nuclear Issue that we will still have a problem with some of irans destabilizing activities, and a number of them did express the concern that with Additional Resources through the reduction in sanctions, that was it possible that iran would siphon off a lot of these resources into more destabilizing activity . Secretary jack lou was there to explain in a first of all there would be no sanctions relief until we could confirm that iran had actually carried out its obligations under any nuclear deal. Secondly, we gave them our best analysis of the enormous needs that iran has internally and the commitment that iran has made to its people in terms of shoring up its economy and improving economic growth. And as i pointed out, most of the destabilizing activity that iran engages in is lowtech, lowcost activity. And so part of my emphasis to them was that if we are focusing more effectively on the things we need to do to shore up defenses, improve intelligence, improve the capacity for maritime monitoring of whats taking place in the gulf, if we are working in concert to address, you know, the terrorist activity and countering terrorist messages that are coming not just from state sponsors like iran, but more broadly from organizations like isil, then were going to be able to fortify ourselves and deal with many of these challenges much more effectively and we can do so from a position of strength and confidence. So its not to deny the concerns that were there about what happens when sanctions are reduced, but it was to emphasize that what matters more is the things that we can do now to ensure that some of this destabilizing activity is no longer taking place. And of course when you look at a place like yemen the issue there is that the state itself was crumbling and that if we can do a better job in places like syria, yemen, libya andn building up functioning in building up functioning political structures then its less likely that anybody, including iran can exploited some of the divisions that exist there. Michael vick ar . Thank you mr. President. On syria, one of the reasons were here is because many in the nations region were upset in more than two years ago when bashar deployed weapons, there was no retaliation on the part of the u. S. Now there is a possibility that assad has once again used chemical weapons. What did you tell these leaders here who were disappointed last time . And will you use a military response if its confirmed that he used chemical weapons again . And then if i could ask a domestic question as well, sir and this is about the environment and the drilling thats recently been approved in the arctic. This nation, the United States is now a net exporter for the first time in years of fossil fuels. Partly due to fracking. Something an environmentalist have objected to, something you regard as an all of the above energy strategy. But the oil companys shell has had a mixed record drilling in that region. Many environmentalists look at this and say is it really worth the risk to drill in such a delicate ecosystem . Thank you. First of all, michael, i dont know why you are here, but the reason im here is not because of what happened in syria a couple of years ago. The reason im here is because weve got extraordinary challenges throughout the region. Not just in syria, but in iraq and yemen and libya, and obviously the development of isil and our interests in making sure that we dont have a Nuclear Weapon in iran. With respect to syria, my commitment was to make sure that syria was not using chemical weapons. And mobilizing the International Commune to assure that that would not happen. And in fact, we positioned ourselves to be willing to take military action. The reason we did not was because assad gave up his chemical weapons. Thats not speculation on our part. That, in fact, has been confirmed by the organization internationally that is charged with eliminating chemical weapons. And i dont think that there are a lot of folks in the region who are disappointed that assad is no longer in possession of one of the biggest stockpiles of chemical weapons of any country on earth. Those have been eliminated. It is true that weve seen reports about the use of chlorine in bombs that have the effect of chemical weapons. Chlorine itself historically has not been listed as a chemical weapon. But when it is used in this fashion can be considered a prohibited use of that particular chemical. And so were working with the International Community to investigate that. In fact, if we have the kinds of confirmation that we need, we will once again work with the International Community and the organization charged with monitoring compliance by the syrian government. And we will reach out to patrons of assad like russia to put a stop to it. With respect to the situation in the arctic, i think its fair to say that i know a Little Something about the risks of offshore drilling, given what happened in the gulf very early in my presidency. And so nobody is more mindful of the risks involved and the dangers. Thats why despite the fact in a shell had put in an application for exploration in this region several years ago we delayed it for a very lengthy period of time until they could provide us with the kinds of assurances that we have not seen before taking account of the extraordinary challenges, if in fact there was a leak that far north. And in that kind of an environment. Which would be much more difficult to deal with than in the gulf. Based on those very High Standards, shell had to go back to the drawing board, revamp its approach, and the experts at this point have concluded that they have met those standards. But keep in mind that my approach when it comes to fracking drilling, u. S. Energy production of oil or natural gas has remained consistent tlouchlt i believe that we are going to have to transition off of fossil fuels as a planet in order to prevent climate change. I am working internationally to reduce our Carbon Emissions and to replace over time fossil fuels with clean energies. Obviously, we start at home with all the work that weve done to for example, double the use of clean energy. But i think that it is important also to recognize that that is going to be a transition process n. The meantime we are going to continue to be using fossil fuels and when it can be done safely and appropriately u. S. Production of oil and natural gas is important. I would rather us, with all the safeguards and standards that we have be producing our oil and gas rather than importing it custom is bad for our people but is also potentially purchased from places that have much lower Environmental Standards than we do. Tolu . Thank you mr. President. I would like to ask you about trade. Yeah. The Senate Moved Forward on a bill today to approve your trade legislation. And it also moved forward with a proposal to punish countries like china for what they do in terms of manipulating their currency. Could you potentially see yourself accepting senator schumers language on currency manipulation . Or would you have to veto that . Secondly, could you also talk about your relationship with senator warren . Do you regret the fact that things have become so personal with the back and fort worth on trade . And then secondly if i could ask you that was the second question, wasnt it . So thirdly is what you are saying yes. Okay. Really quickly you mentioned the two state solution with israel. I was wondering if you would give your reaction to what the pope is moving forward with in terms of recognizing the palestinian state. Do you think thats a good idea. Do you think it is a mistake . Do you think it might help or hinder the twostate solution that you mentioned earlier . Thank you. First of a you will i want to congratulate the senate on moving forward on providing me the authority to not only strike a smart progressive growthpromoting trade deal with some of the countries in the asian pisk region and potentially in europe as well. But also to give me the tools to enforce those agreements, which havent always happened in the past. So i want to thank all the senators who voted to provide that authority, or at least to begin the debate on moving that process forward. Those who didnt vote for it, i want to keep on trying to make the case and provide them the information they need to feel confident that despite the fact that there have been very genuine problems with some trade deals in the past the approach that were taking here, i think is the right one. Not just for big u. S. Businesses but also for small u. S. Business, and medium sized u. S. Business. And most importantly, ultimately ultimately, American Workers. I would not be promoting any agreement that i didnt think, you know, at the end of the day was going to be creating jobs in the United States and giving us more of an opportunity to create ladders of success higher incomes and higher wages for the American People. Because thats my primary focus. It has been since i came into office. The issue with respect to myself and elizabeth lass never been personal. I think its fun for you know the press to see if we can poke around at it. When you see two close allies who have a disagreement on a policy issue. But they are a bunch of some of my best friends in the senate as well as in the house. Some of my earliest supporters who disagree with me on this. And i understand. Because like me they came up through the ranks watching plants close jobs being shipped overseas. Like me they have concerns about whether labor agreements or environmental agreements with other countries are properly enforced. Like me, they have concerns about whether in fact trade ends up being fair and not just free. And like me, they have a deep concern about some of the Global Trends that weve seen and trends that weve seen in our own countries in terms of increased inequality and what appears to be the effects of automation and globalization in allowing folks at the very top to do really, really well, but creating stag nation in terms of incomes and wages for middle class families and folks working to get their way into the middle class. So these are folks whose values are completely aligned with mine. I notice that there was sort of a progressive statement of principles about what it means to be a progressive by some of these friends of mine. And i noted that it was basically my agenda, except for trade. That was the one area where there was a significant difference. And this just comes down to a policy difference and analysis in terms of what we think is best for our people, our constituents. It is my firm belief that despite the problems of previous trade deals that we are better off writing High Standard rules with strong enforceable provisions on thing like child labor or deforestation or environmental degradation or wildlife trafficking or intellectual property we are better off writing those rules for what is going to be the largest, Fastest Growing market in the world. And if we dont, china will and other countries will and our businesses will be disadvantaged, and our workers will ultimately suffer. And in terms of some of the fears of outsourcing of jobs, it is my belief based on the analysis that at this point if there was a company in the United States that was looking for lowcost labor, they had no problem outsourcing it under the current regime. And so what we do have the opportunity to do is to attract back companies to manufacture here in the United States. And were seeing some of that happen. Thats why i went out to nike. I understand that nike has been manufacturing shoes with lowcost labor in many of these areas in the asia pacific region. And that hurt the american foot wear industry in terms of jobs here in the United States. But that happened over the course of the last 30 years. And now for nike to announce that because of new technologies they are potentially bringing 10,000 jobs back here because weve got up the value chain, we are manufacturing in different ways, thats an opportunity. But weve still got to be able to sell over there to take full advantage of those opportunities. Which is why my argument with my progressive friends is what we really need to be focusing on to meet the same objectives, the shared objectives, is the kinds of other issues that we all agree on, strong minimum wage strong job Training ProgramsInfrastructure Investments that put people back to work, stronger laws to protect collective bargaining and the capability of workers to have a voice, strong enforcement of rules around things like overtime pay making sure that we have paid sick leave, making sure that we have an honest conversation about, you know our budgets, and that were not slashing investments in the future simply to make sure that were preserving loopholes for corporations that dont provide any economic benefit. Those are the things that are going to help us address the very problems that they are concerned about. Blocking a trade deal will not. Particularly since they are the first ones to acknowledge that the existing trade rules are a bad deal for u. S. Workers. If they are not working for us now, how does hanging on to whats going on now help American Workers . Doesnt make sense. Im all for enforcement and the provisions that were signed. I have expressed concerns about how the currency language that is in the bill is drafted, but i have talked to senator schumer and brown and others about how we can work on language that does not end up having a blowback effect on our ability to maintain our own monetary policy. I dont remember what your other question was. Oh, well, rather than speak for others ill just reiterate what ive said previously. I continue to believe that a twostate solution is absolutely violates for not only peace between israelis and president clintonians palestinians but for the long term commune of israel as a democratic and jewish state. I know that a government has been formed that contains some folks who dont necessarily believe in that premise, but that continues to be my premise. And since were up here at camp david, i think its important to remind ourselves of the degree to which a very hard peace deal that required incredible vision and courage and tough choices resulted in whats now been a lasting peace between countries that used to be sworn enemies. And israel is better off for it. I think the same would be true if we get a peace deal between israelis and palestinians. That prospect seems distant now but i think its always important for us to keep in mind whats right and whats possible. Okay. Last question scott hoarsely. Thank you, mr. President. You mentioned at the outset our need for world class infrastructure. Were coming up on a deadline for the Highway Trust Fund. With gas prices where they are, why isnt this a good time to consider a hike in the federal gas tax, which might address some of the carbon goals you talked about. And those goals went over to omb last week. How soon might we see those . Soon. And with respect to transportation, you are absolutely right that now is the time for us to get something done. Im practical. And in order for us to get a transportation bill done, ive got to get toe operation from a republicancontrolled congress. And so im in discussions with the majority and minority leaders in both chambers as well as the Relevant Committee chair persons. We want to hear their ideas. We want to find out whats possible. I think that thats going to be something that we need to explore. But this is not an area where either side should be looking for political points. This did not used to be a partisan issue. Building roads building bridges, building airports sewer lines dams, ports this is how we grow. This is how america became an economic super power was investing in our people, investing in infrastructure, doing it better and faster and bigger than anybody else did. We should be doing the same thing now. The first republican president , a proud native of my home state named mr. Lincoln even in the midst of civil war was looking at how we join the country together through our railways and our canals. And we shouldnt be thinking smaller today. We need to be thinking bigger in this global economy. So my hope is that we have a chance to have a serious discussion and look at all potential revenue source. What is absolutely true is that the Highway Trust Fund has consistently gotten smaller and smaller and smaller and inadequate for the needs. Whats also true is patchwork approaches of three months or six months at a time dont make any sense. We need some sort of longterm solution. Nobody foresaw that we could actually get a dock fix done, and actually solve a long term problem there in terms of how we were managing medicare payments for doctors. Who knows . Maybe we might see some intelligent bipartisan outbreaks over the next few months. Inc. Because i think everybody recognizes this is important. All right. Thank you very much, everybody. Weve been listening to president obama speaking to the country live from camp david after his allday summit with gulf leaders. Lets welcome back our allstar panel to nbcs chief washington correspondent john howard. Bill spindle, and former tennessee congressman and current managing director at Morgan Stanley harold ford jr. John starting with you, it became a wide reaching press conference not only deal with what happened today at the summit but also the trade agreement as well as the amtrak derailment. He called for more Infrastructure Spending in the wake of the amtrak crash. He praised the senator for moving ahead on fast track. And he said his dispute with Elizabeth Warren was policy not personal. And finally on the meet twg the gulf arab states, as expect he said they have concerns that freed of sanctions iran is going to spend the additional money on other destabilizing activities that have nothing do with do with the nuclear program. So the answer to that is not a written defense guarantee, which not forthcoming from this meeting but to strengthen the common defense and military cooperation, defense cooperation. Thats the best that those gulf arab states could get out of the meeting today. Harold what stood out to you . For a long time it appears i agree with what john said. It appears our gulf allies invested their entire portfolio as it related to defense in u. S. Confidence and trust in our assets. It looks like there may be a rebalancing of that portfolio as a result of what happened in this meeting and the way the president characterized it. Bill spindle let me go to you in terms of what has happened in the meeting with gulf leaders. Anything surprising . You said going in you werent expecting anything but a good show. We pretty much did not see anything ypt beyond expectations. I think the headlines as john pointed out are beyond in the more domestic areas. He repeated the broad corags, broad nice words. But beneath the surface you can see that a lot of the tensions that are existing in the relationship now still exist and probably are going to continue to exist. Steve, brass i want to go to you in terms of how the traders are going to process this tomorrow on floor . A couple days ago when the story broke you have to look at what oil did. It didnt do much. It ran up a couple of dollars. A small percentage on a relative base. You want to see how oil is going to react. I think oil is really reacting more so with the dollar versus this event. Youia. I think to the extent that this says it takes a little bit of the geopolitical bid out of the market potentially just because everybody is agreeing they need to come together i think, but i would not make a trade off this by any means. That doesnt last investigate john harwood, does it from what you heard . No. Definitely not. I dont see anything that a market would see in terms of a durable consequence of this news conference. This is exactly what we expected coming in. And as bill just indicated, the tensions that we anticipated before the meeting were clearly present in the meeting, and they will be present after the meeting. All right. Our thank to our allstar panel tonight. John harwood, our chief washington correspondent bill spindle at the wall street journal. And harold ford jr. Director at Morgan Stanley. Thanks for being with us tonight on fast money. With jim cramer begins right now. Thanks welcome to mad money. When noob players are out of position they tend to get taken to the cleaners. When nnpc the wrong than they get toasted. When Major League Baseball players incorrectly play the ball their air oarings can cost you the whole game. Today you saw what happens when portfolio manage remembers stuck with the wrong stocks and have to adjust or rotate lest they lose their years. The dow roared 192 points. The s p climbed 1. 08 . And the nasdaq fell to 1. 39 . For the better part of the last month i have been trying to get you to focus on the sea change that i have said Portfolio Managers havent seen coming. The c change out the shares that Companies Benefit from a strong dollar, sell sell and into the ones that other current cease see as more valuable. Buy, buy. That is provoking a broad rotation out of the retailers and into the Big International companies that are headquartered here but have huge operations overseas. I feared that when wee these Money Managers realized they were out of position their moves would be vicious and punitive. Sell, sell sell sell sell, to the domestic stocks and heavenly for the internationals. And now thats exactly whats going on. So why is this happening . How do we profit from it . Thirst this rotation is occurring because the rest of the worlds economies have started expanding while the u. S. Stayed the same or gotten weaker. Europe in particular turned rapidly after its central bank changed the rules took Interest Rates so low the money had to either go into the stock market or projects that give you a better return. Both are bullish for the real economy. Either for the wealth effect or because of the side of stepped up lending. As we saw in this country when the fed executed a similar game plan n. The last month weve seen so much good news out of places like france and italy and spain even skeptics have to acknowledge the turn. Thats why the european stocks have doubled or tripled ours. Veryview few Portfolio Managers saw this thing coming. Mostly they totally ignored the motive, overlooking the bottom in the euro as witnessed by the fxe, thats the etf that tracks the euro versus the dollar which bottomed when the euro didnt take out its low on april 13. You should be staying close to that xftetf because when it goes higher it takes the whole stock market with it. At the same time, these Money Managers eshoed international stocks. Our economy was slowing largely because American Goods became too expensive for the world thanks to the strong dollar. During this period expectations for domestic stocks were lofty and the expectations for the internationals were reduced in part because so many people believed that the bounce in the euro could last. It makes sense. We just got through a period where the over seas sellers this decline. Now its reversing, dollar in decline, overseas markets getting better. The lowered estimates for the international, they are now likely to get trounced. Portfolio managers need to buy stocks in companies that sell a preponderance of goods overseas. It would be nothing if these managers had fresh capital lying around. They would just buy shares in the international but most dont have that spare cash with which to invest. So they have to sell the stocks in the domestic safe havens they love so much in order to raise money for the international names. Thats what a rotation is all about. Now, initially, there didnt seem to be urgency in this rotation. In fact, many pure play domestic stocks merely flat lined. That is until this weak when we got really poor neighbors. First in the retail sales. And then the specifics, like the Railroad Numbers now on actual short falls from companies that have been so rewarding so long. Macys yesterday. Coles today. Macys certainly missed but it had a good justification. Bad weather port strike poor tourists and execution issues. Coles this stock has been a remarkable performer but the company shocked us when it said it was below expectations. Wall street was going to crush their numbers which is where you got the 10 decline. Is this overreaction from the new found softness, of course. But thats expected. Rotations almost overshoot they take on companies that are doing well, cost toe jack in the box, it did a good quarter but lets say rear r weesh now in the shoot first and ask questions later phase for the retailers and the restaurants. Do you have to throw these stocks out along with the rotators . I dont think so. Matter i fact i think thats short sight. You have to be able to take pain if you own these name. The pain tends to last maybe for longer than a day or two. Maybe its going to be in the house of pain for a while. How stark is the move . Consider a couple stocks. Consider the stocks of under armour and nike. Now the former put up tremendous numbers but is largely domestic. Okay . The latter also put up very good numbers although i could argue not as good as under armours. The stocks though, look at this under armour cant get out of its own way. Nike nike has been steadily going higher. Its been head hot. Thats just how it is. Look at how the internationalcally oriented dome knows pizza has done versus the crushing of jack in the box which reported good numbers but got hammered anyway. Look at the divergence. Thats because of the sea change and the concommoner rotation out of domestic stocks. Dome knows has a huge overseas business. So many of the companies, especially in the industrials and consumer cohortd but also in drugs and consumer packaged goods generate a lot of money from over seas. Ibm had an okay quarter that was trashed by the strong dollar and still well off its highs despite the obvious turn in europe. Same for eaton ppg, dow chemical all which have been penalized severely because they were stuck selling goods that became too expensive because of that darn greenback. She is stocks could soar with the dollar going low. Boeing a level currency Playing Field could send it back to its alltime high. In the soft goods and Health Care Segments merck j and j, pfizer they have been hurt by the strong dollar. Same with pop see co. Their stocks begin to run, they lift off today. Dear cater pillar, cummins, they could break out. Lockheed martin, general dynamics, these companies are getting Big International orders as other companies see the United States withdrawing from its role as the worlds policeman as we heard earlier from the president in his press conference. The most logical place to go technology. Apple, google and facebook. These three stocks have been stalled out. Even as i could argue they all had amazing quarters. However, the currency head winds bluntded their sales dramatically. I think the estimates in the wake of these last quarters will be too low. I believe apple google and facebook could romp here. This was day one. Along with sis coo co which shouldnt have been down after last nights terrific quarter. Remember are rotations are vicious, we dont know when they will end. We dope know whether the dollar will stay weak and the euro continue to stay weak. Nevertheless, i think these moves will define the rest of the month and extend into june perhaps. Let me give you the bottom line. Its not too lake to takes action on the international bin winners. And i am loathe to sell the domestic losers because they have become too cheap already. Chuck in florida. Caller hi, kramer thank you for all you do. Thank you. Caller all the talk with content providers and network and television and cable i had some Discovery Communications disca, as its down about 25 . There any hope for a recovery or merger or buy out. Unlikely. This is a very good company. And a long term franchise with a lot of great content but it does not have the numbers that you need right now. It could drift its way higher but i dont like it nearly as much as say a disney in the entertainment business or cbs which reported a good quarter. Lets go to jerry in my home state of new jersey. Jerry. Caller jim, thank you for taking my call. Of course. Caller thank you what youve done for me and my family in the past up the of years. Thank you. Caller my question is two months ago i purchased Buffalo Wild Wing at 186. They had a tough quarter. Their expenses went up. How do you feel about the stock . Is it something that i should hold on to . Should i invest more into it . Whats your feelings . Buffalo wild wings is part of this rotation out of the domestic stocks and into the stocks that sell more goods overseas. I think its more caught up in that than frankly about the quarter. A lot of that miss was chicken wing prices. Those havent moved in the direction i would like. Im not going to push hard on Buffalo Wild Wings until i see this rotation peter out. Lets go to vanessa. Caller a into yeah from the hare teal state. Thank you. Whats going on. Caller my question is regarding papa murphys pizza frsh. They were named top pizza chain for 2015. They had a revenue increase of 16 and they have opened 22 stores two internationally. However they have turbulence due to a pending lawsuit. I want know, is this a buy sell or a hold . There is a lot of stock for sale. I did like the stock but there is a ill big Venture Capital backer who is getting oumt i think that has hurt the stock more than anything else. Im dominos fan. I like the pizza category of which that one is in. That one has too much stock for sale. Thats what is happening. There is a sea change happening, its not too late to right the wave. Show international love, and of course stick with kramer. Dont miss a second of mad money, follow at jim cramer on twitter. Have a question . Tweet kramer hashtag mad tweets, send him an email to mad money at cs nbc. Com or give us a call. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Theres some facts about seaworld wed like you to know. We dont collect killer whales from the wild. And havent for 35 years. With the hightest standard of animal care in the world, our whales are healthy. Theyre thriving. I wouldnt work here if they werent. And Government Research shows they live just as long as whales in the wild. Caring for these whales, we have a great responsibility to get that right. And we take it very seriously. Because we love them. And we know you love them too. When you are dealing with a red hot momentum stock typical methods of evaluation have to go out the window. Take the Cyber Security space which is one of the hottest groups in the market. Allo networks cant stop climbing, 167 over the last year. And the best performer in the group is cyber arc software an Israeli Company now based in mags mass. Its carved out a niche focusing on companies protect one anothers Privileged Accounts or administrator accounts which have become tarts for hackers because they contain the key to the Information Technology kingdom. What better way to steal data than by taking over the account of the person running the it system. Sure, if the stocks up 284 since it became public last september. Just when you thought the valuation was too stretched cyber arc reports a terrific quarter last week and stock roktsds higher. There has been some profit taking. But when you are dealing with a company with turbo charged growth you have to remember people will always pay up for this kind of story. Lets take a closer look with the founder, president , and ceo of cyber arc software. Welcome to mad money. Good to have you in the show. Good to be here. Ive been reading all the articles now. You have got a lot of different materials. You keep talking about this term Privileged Accounts. I now see it popping up everywhere. What does it mean. Administrative controls built into every tooes piece of the it infrastructure. They are necessary. But in the hands of the attacker they have full control over everything. In sony thats what happened. They owned the organization after getting to these administrator accounts. The bad guys are smart. How do you stop them. We have to think outside of the box. Cyber arc is focused on creating a platform on the inside. We vault these administrative accounts, lock them up and give them only to trusted users and alert on suspicious behavior. You mentioned sony. I know when you came public you had 31 of the fortune 500. After the sony hack we are already in the 500. I think our Business Model doesnt depend on hacking happening but its definitely raising the awareness out there. We talked the ceo of kiss so. He has a platform and a lot of people have a platform. It seems you still get the account even if they already have a platform. Just because somebody is using one security company, doesnt mean you dontx too. You need multiple security layers. The thing is that millions of dollars went into bad guys out but once on the inside they steal the credentials and they move around. Cyber arc is a new layer on the inside, it complements the cisco and fire island and palo alto. I know you have a Good Relationship with vota phone. We were proud to have them announce the business partnership. They are one example of the top global 2,000 customers that selected us. We have become a platform on the inside where their trusted users, external third parties, everybody gus through the cyber arc program before they get to the it program. Everything is recorded and we can alert suspicious behavior. I was looking at the experienced Management Team you have a lot of people, sal may from am docs, it says for you, your Israeli Defense force. Thats your background. I know you probably cant tell me exactly what you have done and whether you are in active service now, but what are the things that you have seen that are applicable to your current job . Myself and many of the top team at cyber arc served in the military and brought that understanding of how complex networks are and the fact this under attack. We just brought the awareness that you have to treat every entity as it if can be attacked. The reason i ask you is because ive always my worst fear would be that you hired someone that you didnt trust. And that they became compromised. How do you keep in a from happening . Thats very important. And i think in security its not just about technology. Its very much about people. And especially on the it side and the r and d side. You have to go through screening and cherry pick people. We have the advantage of really pigging people from units that we know that graduated from military units that were familiar with we know they have full classification and can cherry pick them into the company. Are there hacks going on right now that are big and bad. Its going on all the time. As we speak. There is low risk in being a hacker and high reward. Why rob a bank and risk being shot if you can stit in your pajama and hack into a bank or steal credit card or health care information. It is a profitable business but we are on the good side. One last question, have there been situations where when we see a hack that you do get called . Because i know that every time there has been a hack i see your stock go higher. Does that actually make sense . Our Business Model is pro active security. So customers come to us ahead of time. However we have prospects that after being hacked they lost control of their it infrastructure. How do you regain control. They call us to rebuild trust. You have about. The greatest performer of the year. Thats the founder, president and ceo of cyber arc software. With any high expensive stock like this i want you to go through all the documents. And the conference call. You can see why the company is doing so well. Mad money is back after this break. Christina and her mother have always been close. It was only natural that linda start helping christina out when she started her Jewelry Company christina v. Neither of them guessed that linda would become the number one employee. It is time for the lightning round. Are you ready . Skedaddy skedaddy, come for the lightning round of lets start with linel in oregon. Caller hey mr. Jim cramer a big into yeah from ben oregon. Im going to ben in another month. Whats going on . Caller i have got a question on emc. What are your thoughts. I think its stalled. Stuck, i prefer you to see you in cisco here at 29 make a change tomorrow morning. Lets go to david in new york. Caller hi jim. Thank so much for taking my call. Of course. Caller im curious what your thoughts are about nycb, new York Community bank snits a cheap bank but i have to go with the best here wells fargo is breaking out bigtime from a trust. I know that yours is good. I think mine is better. Lets go to devin in connecticut. Caller jim, what your thoughts on Gray Television network . I should be featuring them, they are doing incredibly well. Lets go to bo in oklahoma. Caller i was wondering about the stock netflix. Netflix is tricky i like them as a concept stock. In other words it cant be justified on the earnings its justified on the idea that the market cap is too small given the idea of how big this company can be. Im blessing. Byebye byebye lets go to johnny in florida. Caller into yeah, jim, i wanted to get your recommendation on chewys. Way too hard. Buy jack jack in the box, because that stock keeps going down. Chewys has come up im worried about any of the restaurant stocks that have not come down yet to adjust e. I need to go to joe in new jersey. Hi jim. Id like to know is Micron Technology a buy . It is. I think that the d ram business has peaked. I think the tightness is out of the market. Thats why im not recommending micron. I like the semis that are a little bit more cell phone oriented. In a means i like soy works solutions, i like ahaving ao, corps go, those are all better. I need to go to darin in california. Caller cramer, thank you for taking my call. Im calling about a Company Called mind medics, mdxg. They focus in wound care. Looks like they may have sign a deal with striker and they have two products am neofix and epifix what do you think about this . I dont know that company. I do not know that company. Ive got to do more work on it. Its one of those companies that has come public and i vnd followed it. Ive got to do work. Lets go to charles. Caller Chuck Harrison in chapel hill, north carolina. I would like your opinion on Emerson Electric frick which has been lack luiser in the last year. I think i have to tell you sir, i think that this is a tough one for me. I think the stock is breaking out, and yet the company itself is not doing that well. Its almost as if i talk with mat whoer this stock is search foorg reason why its going up. I dont have it. I like caterpillar more even though thats a dicey recommendation. I see cummins going higher. I understand why you are attracted to it. That concludes the lightning round. 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For a free 30tablet trial go to cialis. Com lrtd. So the rotation is on. This is what we predicted. You have got to be ready for it. What can still be bought . The obvious ones are apple google and facebook. They were all really hurt by a strong dollar. They would have had mag any sent earnings. I think the money is going to rotate there. If you are stuck in some retailers and you are stuck in some restaurants dont worry. The rotations do end. But you have to be willing to take some pain. Its just the way it is in this stock market. Id like to say there is always a bull market somewhere. Eight million people. Fire two more risottos. Thats four allday everything we do is on a mega, mega level. Theres a fourhour wait. Is there, really . All i want to do is just win. Win. Announcer 24 thousand restaurants. Im not gonna close the restaurant. Hell to the no. Youre losing money by the minute. Losing money by the minute. Our family legacy is on the line here. A Million Dollars is bleep . It really is. Announcer three businesses at a crossroads. Our goals are the same. We both wanna be bleep rich. Fighting for their piece of a 34billion industry. Youve got to bulldoze your way into bleep . This is crazy this restaurants my life. Its gonna work no matter what. Announcer a budding empire. Weve grown a 45 million business. The meatball shop is a proven, successful concept. We need 4 million to open restaurants. Either we gotta bleep