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Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday March 14.

These Are Not Ill-Gotten Gains: Cliffs Natural Resources (CLF)

The Dow rose 84 points on Thursday, in a seemingly endless winning streak. Bears are worried that the Fed is propping up stocks and when the "punch bowl is taken away" the market will be in freefall. Cramer's belief is that, while the Fed helped create the rally, it has its own legs. Companies have stronger fundamentals, are growing more rapidly and stocks are trading at cheaper valuations than prior to the 1987 crash, for instance. However, if the market moves 7-10% higher, Cramer thinks it might not be worth the risk. He advised viewers to avoid bonds under any circumstances, since they give insignificant returns. "The bears think the market's gains are ill-gotten gains," said Cramer, "But these gains are legitimate." While there will be a correction sooner or later, Cramer thinks it will not be a devastating scenario.

Cramer took a call:

Cliffs Natural Resources (CLF) has seen a significant decline. If there is good news about China for a day or so, CLF will likely rally, and then Cramer would suggest investors who want to get out of the stock should take gains, "but not way down here."

CEO Interview: S.A. Ibrahim, Radian Group (RDN)

Cramer started out recommending Radian Group (RDN) as a speculative stock, but the company is more solid than ever. RDN did a secondary offering recently, and the stock moved up. While some stocks decline on news of secondary offering, CEO S.A. Ibrahim said the rise in stock price was due to the confidence in the strength of the housing sector. RDN is a mortgage insurer with 71% of its business from mortgages after the housing crisis, therefore, better loans. Its main competitor is the FHA, which is backing away from the business, since there is indication that government wants the private sector to handle the majority of mortgages.

While there are concerns about Radian's balance sheet, Ibrahim says business is profitable and expenses are covered. The growth of first-time homeowners is a positive for Radian, because new home purchasers are keen to buy insurance. "This is the number one player in the business," said Cramer. "I liked it at $7. I like it even more at $10."

Coach (COH): The Dog Who Will Have Its Day. Other stock mentioned: Michael Kors (KORS), Sears Holdings (SHLD), Pool (POOL)

Coach (COH), the high-end handbag play has a stock that has been a dog, but every dog has its day. In June, Cramer said he would rather own Michael Kors (KORS) than Coach, and since then, KORS has risen 56% while Coach has declined 17%. Coach reported several disappointing quarters in the painful transition from growth stock to value play. COH trades at a modest 12 times earnings with a 2.4% yield. There is talk that COH might take itself private or be bought. Based on similar acquisitions, KORS might fetch a premium in the range of 26%-56%. CEO Lew Frankfort is stepping down, and while the CEO has created value for Coach and masterminded its Asian expansion, Cramer thinks there needs to be a change at the helm, because there is a wide perception that the Coach brand is stale. The company is expanding its footwear division and is diversifying its offerings. Menswear, which generates only 8% of sales may grow to 20%. While there are worries about the Chinese economy, Coach should see at last a 15% growth there. Management has bought back stock aggressively. While Coach is 30 points off its high and only 3 points from the bottom, Cramer thinks it is a good trade in the $45-50 range.

Cramer took some calls:

Sears Holdings (SHLD) is a stock Cramer made money in once, sold and hasn't looked back.

Pool (POOL) is a good ancillary housing play.

CEO Interview: Zachary Nelson, NetSuite (N). Other stocks mentioned: Salesforce (CRM), Oracle (ORCL)

Cramer admits that NetSuite (N) might trade at high valuations, but he thinks it might be stock similar to Salesforce.com (CRM), which has a high valuation but may have more upside.The stock has risen 500% in 3 years, but trades at a nosebleed multiple of 11 times sales or 174 times next year's earnings. Like Salesforce, NetSuite is a cloud play with clients like Gawker, GoPro and Jawbone. CEO Zachary Nelson is not worried about competition from Oracle (ORCL), because NetSuite's clients are smaller companies with 1,000 employees or less. "Our focus is building value and solving customer problems." Cramer suggested doing homework before buying NetSuite, but believes in the company.

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Source: Cramer's Mad Money - Coach Is A Dog That Will Have Its Day (3/14/13)