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) -- These stock market gains are totally legitimate, Jim Cramer told

"Mad Money"

viewers Thursday as he sounded off against the bears that have been trying to scare individual investors out of the market.

Cramer explained that the prevailing wisdom among the bears is the

Federal Reserve

, which has, in part, created the market's big surge higher with low interest rates, will soon pull the rug out from under the economy -- a move that would be so detrimental to stocks that individuals should just keep their money elsewhere.

But Cramer said that view is totally wrong. The Fed is not a helpless giant and has certainly planned ahead for its exit from the markets. He said it is true that low rates have helped companies refinance their debt, offer big dividends and snap up other companies through mergers and acquisitions. That doesn't mean that those same companies are not capable of standing on their own.

Sound investors sit on the sidelines because someday the party might end? Cramer said that view is dangerous and is keeping investors from making money they rightfully deserve. He said the bears never admit they're wrong, nor do they have any remorse for keeping investors out of of 1,000- or even 5,000-point rallies.

"The money is right there to be made," but only if investors ignore the naysayers and get in while the getting is good, said Cramer.

Executive Decision: S.A. Ibrahim

In the "Executive Decision" segment, Cramer spoke with S.A. Ibrahim, CEO of

Radian Group

(RDN) - Get Report

, the mortgage insurer that has soared 31% since Cramer last recommended the stock less than a month ago.

When asked about the insatiable demand for his company's stock, Ibrahim said all the investors who were once betting on the housing market implosion are now repositioning themselves to take advantage of the recovery, which is now alive and well. He said low interest rates sparked a ton of refinancing business, but that business is now expanding into new home purchases.

First-time home buyers are usually the ones who need mortgage insurance the most because they usually have the lowest down payments, he said. But those buyers rarely buy a home if prices are falling. With prices now stabilized and on the rise, Radian is expecting a flood of first-time buyers to reenter the market.

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



, 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) - Get Report


Jones Apparel



Ann Taylor


, 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


. 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 Round

In the Lightning Round, Cramer was bullish on

Alon USA



Valero Energy

(VLO) - Get Report


TransDigm Group

(TDG) - Get Report


PPG Industries

(PPG) - Get Report



(HFC) - Get Report


Cramer was bearish on

Ulta Salon

(ULTA) - Get Report


Executive Decision: Zach Nelson

In his second "Executive Decision" segment, Cramer sat down with Zach Nelson, president and CEO of



, 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

(CRM) - Get Report



(SAP) - Get Report

target the larger companies while


(MSFT) - Get Report

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 Offense

In 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) - Get Report


Arch Coal


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:

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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

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