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Cramer's 'Mad Money' Recap: Figure in RIM for Growth

TheStreet.com Staff

Click here for an archive of Cramer's "Mad Money" recaps.

"Now that I'm back from vacation, it's time to really blow things out," Jim Cramer told viewers of his "Mad Money" TV show Friday, "with a game plan you can't afford to ignore."

Usually, Cramer said, he uses Fridays to tell viewers what's going to happen and how to get ahead over the next five trading days. But not today, Cramer said, because while he was on vacation, "the face of the market changed."

"What you really need," he said, "is a road map for the next six months."

With that in mind, Cramer said there's only one thing investors absolutely must know and that everything else in his six-month game plan will come out of it. That one thing, he said, is growth: "Pure, unadulterated, oxygenated growth is back."

Growth never really went away, he said, but we have a torrid, on-and-off love affair with it. "Someone's always willing to pay up for growth stocks," he said, "but they fall in and out of favor."

For example, after Research In Motion's(RIMM Quote) recent rise, you might be looking for the next RIM. "That's the right attitude but the wrong move," said Cramer. "The next RIM is RIM!"

Tech is on a roll, he said, and a stock such as RIM -- one of Cramer's anointed four horsemen of tech -- can't help but go higher.

"People forget that growth stocks can double and then double again," Cramer said. It happened in the '90s, and it can happen again.

People who were in the market in the '90s know what he's talking about, Cramer said, but the new hedge fund managers who only recently got into the game are actually shorting the stocks that Cramer believes will go higher.

They see land mines, booby traps and the house of pain. But "not me," Cramer said. "I was there in the old days."

"It's not a fluke or a sham," he said. "It's a reversion to the old days, to a time when growth was hallowed whenever it could be found, and rewarded over and over."

In addition to his other horsemen -- Google(GOOG Quote), Amazon.com(AMZN Quote) and Apple(AAPL Quote), with a "special emphasis on Apple"-- some of the stocks Cramer likes are Garmin(GRMN Quote), First Solar(FSLR Quote) (which he said will be cheap in 2012), Ciena(CIEN Quote), Level 3 Communications(LVLT Quote), Corning (GLW Quote) and, for something more speculative, Nvidia(NVDA Quote). Cramer owns Corning for his charitable trust, Action Alerts PLUS.

As for Crocs (CROX Quote) and Under Armour(UA Quote), Cramer said, "these stocks define momentum."

As Cramer always says, "there is always a glorious bull market somewhere," and now we have so many to choose from that choosing is unnecessary.

Cashing in on Chavez

"Who is afraid of the big, bad Hugo Chavez?" Cramer asked. "Not Cramerica!" In fact, Cramer said he has two great speculative plays on Venezuela that could have huge payoffs.

Everyone else might believe that Venezuela's becoming the biggest enemy of capitalism and that it would be crazy to invest in companies with exposure to the country. But as far as he's concerned, Cramer said, "the bad news in Venezuela is baked in."

His first speculative play on Venezuela is Harvest Natural Resources(HNR Quote), an oil-exploration company.

There is risk in this play, Cramer said, and he warned viewers not to buy it after hours. However, Cramer believes that the deal Harvest has made with Venezuela "isn't as bad as it looks."

In fact, it's had some positive results, such as expanding the company's drilling contract by 14 years, until 2026, and giving it three new fields to drill on.

And because the entire world is scared of them, stocks such as Harvest become really cheap, Cramer said. Harvest trades at 11.3 times forward earnings estimates. "You're getting a Hugo Chavez discount on Harvest, and I would take that discount," Cramer said.

Cramer couldn't justify paying much more than $15 a share for the stock, but at $12 now, he said, he regards it as a steal.

The other stock Cramer is speculating on is Ternium(TX Quote), a steel-maker whose products are in hot demand, he said.

In Ternium's case, there's no fear of nationalization because it's actually an Argentinian company. Because Chavez likes Argentina, Cramer said, he won't bully Ternium.

"From Chavez's perspective, Ternium isn't a foreign company," he said. "It's a South American company, so it's safe."

Trading at 7.3 times forward earnings, Ternium's cheap, Cramer said. He encouraged viewers to consider giving Ternium a shot, but once again, not after hours.

As with Harvest, there's risk with a Ternium play. If Cramer's wrong and Chavez does nationalize the company, it could take a serious hit.

"But if I'm right, you could have a big win," he said. "That's the definition of speculation."

Mad Mail

In his "Mad Mail" segment, Cramer told one viewer that he believes Cisco(CSCO Quote) "is just about to have its move. This is when you should be buying Cisco." Aruba(ARUN Quote), on the other hand, has had its big move, and Cramer doesn't recommend it.

In response to another viewer, Cramer said that he believes "the business is good at ValueClick(VCLK Quote)" and that he'd own it "on the earnings alone."

As for Caterpillar(CAT Quote), Cramer has already endorsed it by buying "a lot" for Action Alerts PLUS.

But NYSE Euronext(NYX Quote), which he also owns for his trust, has been "one of the most painful things I've owned in my life."

Sudden Death

During his "Sudden Death" round, Cramer was bullish on Yamana Gold(AUY Quote), Lundin Mining(LMC Quote) and Bear Stearns(BSC Quote).

Lightning Round

Cramer was bullish on Onyx Pharmaceuticals (ONXX Quote), Kroger (KR Quote), Baidu.com (BIDU Quote), Given Imaging (GIVN Quote), Teva Pharmaceutical Industries (TEVA Quote), Omniture (OMTR Quote) and Sears Holdings (SHLD Quote).

Cramer was bearish on Great Lakes Dredge & Dock Corporation (GLDD Quote), Coleman Cable (CCIX Quote), Hilton Hotels (HLT Quote), AG Edwards (AGE Quote), Spartan Stores (SPTN Quote), Netease (NTES Quote), Bentley Pharmaceuticals (BNT Quote) and Six Flags (SIX Quote).

For more of Cramer's insights during the Lightning Round, click here.

Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by clicking here.