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Cramer's 'Mad Money' Recap: Shopping for Stocks

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

If the market offers a good price on a high-quality stock next week, take it, Jim Cramer told viewers of his "Mad Money" TV show Friday.

Cramer says investors need to prepare for next week by noting all the companies they like on a shopping list and the price they would like to buy them at. Amid all of the volatility, he emphasizes, there are opportunities in this volatile market if home gamers are ready to take advantage of them.

Cramer cites ConocoPhillips (COP - Get Report), a stock that he owns for his charitable trust, Action Alerts PLUS , as one such opportunity.

Earlier this week, he says, Conoco traded at $69 a share before going to $76 two days later. Because Conoco was on Cramer's list, he knew that $69 was the price he wanted and was able to take advantage of the move.

Cramer also notes Procter & Gamble (PG - Get Report), the company with the best record of dividend increases on the Dow Jones Industrial Average, which recently was trading as low as $63 a share.

He also likes Altria (MO - Get Report), another Action Alerts PLUS stock, which yields 4.25% at its current price of $70 a share.

The list also includes AT&T (T - Get Report), Wells Fargo (WFC - Get Report), Bear Stearns (BSC) and Toll Brothers (TOL - Get Report). All of these are quality stocks trading at very low levels, he noted.

Cramer also likes Schering-Plough (SGP), which has recently been cut in half. It went down again on Friday after the FDA announced plans to review a study of its controversial cholesterol-lowering drug Vytorin that the agency had approved.

Cramer says at just $18 a share, Schering is priced as if it will never sell another prescription for Vytorin again, and this is just not the case.

The situation reminds Cramer of Bauch & Lomb, and how a tainted contact lens solution pulled the stock down to just $43 a share before it received a takeover bid at $65 a share.

Cramer said regardless of what actions the Federal Reserve takes next week, investors should pull the trigger if the stocks they want to own hit the prices they want.

Fighting Diabetes

Cramer says Allergan (AGN) is no longer known for just breast implants and Botox, and he's a buyer.

Citing an article in The New York Times, Cramer notes that gastric banding surgeries are helping patients with Type 2 diabetes lose weight and live longer. As a result, Allergan's own proprietary gastric banding system, LAP-Band, should flourish.

Cramer also likes Allegran for its recession-proof nature, saying it can deliver solid earnings in just about any economic environment. The company also recently announced a new skin-care line it is developing with Clinique, a move that should bolster earnings.

Noting that the stock is down 9% from it's recent highs, Cramer says he'd either wait until after the company reports its earnings next week to establish a position, or would buy half a position now and the other half after earnings.

Over the long term, Cramer says Allergan is a strong investment.

Why the Sirius Merger Makes Sense

For speculation Friday, Cramer recommended Sirius Satellite Radio (SIRI) on the premise that the proposed merger with XM Satellite Radio (XMSR) will be approved sometime within the next two months.

He says there's no reason why the FCC should be dragging its feet or blocking the deal. Cramer sees a 75% chance that the deal will be approved, but likes Sirius as a stand-alone company as well.

Cramer cites three reasons why Sirius merger should be approved. First, the combined company would offer more a la carte options than any other medium.
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COP $32.33 -3.70%
MO $60.07 -0.63%
NTRI $18.69 1.20%
PG $81.60 -1.30%
TOL $25.17 0.48%


Chart of I:DJI
DOW 15,910.56 -103.82 -0.65%
S&P 500 1,856.08 +3.87 0.21%
NASDAQ 4,297.86 +29.0970 0.68%

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