Ibrahim commented that Radian is still putting some aspects of its past behind it, but recent settlements with other insurers point to a favorable and quick outcome for the remaining claims.
Cramer said at a time when the government is trying to make a hasty exit from the mortgage market, Radian is the perfect company to pick up the slack.
Take a Chance on Coach
In a market that's soaring to new highs, Cramer said it makes sense to take a chance on a stock that has made the painless transition from growth to value and now sits just three points of its 52-week lows.
That stock is luxury accessory maker Coach (COH), which now trades at a paltry 12 times earnings with a 2.4% yield.In the fashion world, transitioning from a red-hot growth stock to one with, well, not a lot of growth, is often difficult. But as we've seen from the turnarounds at Gap Stores (GPS), Jones Apparel (JNY) and Ann Taylor (ANN), fashion stocks do stop going down eventually and even start to recover, he said. That's where Coach is right now, very close to its bottom as the company executes on its plan to turn itself around, Cramer continued. Where did Coach go astray? Cramer said the company diluted its brand with too many outlet locations. Outlets now account for 30% of the company's total revenue. But Coach is working to reverse that trend with a new bag line that carries higher margins as well as a marked expansion into other categories, including a lot more shoes. Cramer said this expansion is a smart move that has already been proven to work at companies such as Michael Kors (KORS). Coach is also stepping up its efforts in China, which current accounts for 11% of revenue. The time to buy is at the bottom, and for Coach that bottom point is at hand, Cramer concluded.
Lightning RoundIn the Lightning Round, Cramer was bullish on Alon USA (ALJ), Valero Energy (VLO), TransDigm Group (TDG), PPG Industries (PPG) and HollyFrontier (HFC). Cramer was bearish on Ulta Salon (ULTA).
Executive Decision: Zach NelsonIn his second "Executive Decision" segment, Cramer sat down with Zach Nelson, president and CEO of NetSuite (N), a cloud software purveyor whose stock has soared over 500% over the past three years to upwards of 11 times sales and 174 times earnings. Nelson said NetSuite's software is perfect for companies with fewer than 1,000 employees, everything from a start-up to a mid-size player. He said that often customers who have outgrown their current software call NetSuite rather than NetSuite having to actively seek out new customers. When asked about competition, Nelson said larger players such as Salesforce.com (CRM) and SAP (SAP) target the larger companies while Microsoft (MSFT) still sells legacy software from before the Internet went mainstream. That leaves a sweet spot for NetSuite, whose average deal is $100,000. Cramer said that sometimes the markets don't provide investors with a good entry point, and NetSuite is one stock that never seems to come down so investors can buy in.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer sounded off against another type of bear -- those who complain the rally can't possibly be for real with the miners and minerals and fertilizer stocks, among others, being left behind. Cramer said he's fine with these sectors behind left behind because these groups don't have any growth. Unlike the rally of 2007 and 2008, today's market isn't willing to pay up blindly for growth that doesn't exist. Cramer noted that in 2008 stocks like Freeport McMoRan (FCX) and Arch Coal (ACI) were both market leaders. But these stocks were levered to nothing more than expected growth in China, growth that came to an abrupt end, taking the world's economies with them. Are these the stocks you want leading your rally, asked Cramer? Or would you rather have stocks that are rising because their revenue and earnings are rising? To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
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