Cramer's 'Mad Money Recap': Next Week's Game Plan

The Next Big Turnaround

For speculative Friday, Cramer changed his opinion and recommended auto parts maker Visteon (VC Quote) as a speculative stock investors should consider. Cramer said Wall Street used to call the company the "Victim's Club," for it's symbol "VC", but that symbol now stands for the "Victor's Club."

According to Cramer, Visteon shares are on the move because of its aggressive cost-cutting measures. Visteon recently reported a stellar quarter, posting a $51 million profit when Wall Street was expecting a $40 million loss.

Cramer said the numbers at Visteon are improving across the board, with gross margins up to 7.1% from just 4.2% last year. "That tells me the turnaround is working and makes me a buyer," he said.

Yet every analyst still rates Visteon either a neutral or a hold. Cramer expected the company to continue to under-promise and over-deliver with its low-ball guidance predicting just break-even cash flow for the year.

Visteon is making significant strides in cost savings, according to Cramer. The company sold 23 unprofitable plants, trimming 18,000 high pay union employees from its payroll. Visteon was also able to transfer some of its burdening healthcare costs to its former parent Ford (F Quote).

Cramer also cited Visteon's continued diversification as another strong point. In 2004, sales to Ford accounted for 70% of Visteon's business. Today it's down to 40% and is expected to fall to 25% as the company ramps up deals with Hyundai and Nissan among others.