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Cramer's 'Mad Money' Recap: Next Week's Game Plan (Final)

Safe Dividend

In an "Executive Decision" segment, Cramer sat down with Maggie Wilderotter, chairman and CEO of Frontier Communications (FTR), a stock which Cramer recently placed in the "Sell Block" after the company slashed its dividend by 25% when it acquired 4.8 million access lines from Verizon (VZ).

Wilderotter said Frontier has been a high-paying dividend company since 2004, and chose to reduce its dividend to investing in new markets, grow revenue and created even more cash flow going forward. She noted that even after the reduction, Frontier is still one of the highest-yielding companies in the S&P 500.

Wilderotter also noted that the deal with Verizon was initiated by her, and de-leveraged the company from 3.9 times earnings to just 2.6 times earnings. She said Frontier's billing systems are also scalable, allowing the company to easily absorb the new lines. In addition, Wilderotter said she's "very comfortable" with the $500 million in synergies predicted from the deal.

When asked about the 11.2% loss of lines reported from the deal, Wilderotter said she knows how to turn that tide around, and Frontier had lower- than-average line losses before the deal.

Finally, when asked whether the dividend is safe, Wilderotter said simply, "Yes." Cramer said he felt better about Frontier after having the conversation, and investors should, too.

Lightning Round

Cramer was bullish on Sears Holdings (SHLD - Get Report), Home Depot (HD - Get Report), BP Prudhoe Bay Royalty Trust (BPT - Get Report), Permian Basin Royalty Trust (PBT - Get Report), Union Pacific (UNP - Get Report), Intuit (INTU - Get Report), DuPont (DD - Get Report), CBOE Holdings (CBOE), First Horizon National (FHN), PNC Financial Services (PNC) and US Bancorp (USB).

He was bearish on Petroleo Brasileiro (PBR), Penn West Energy Trust (PWE), H&R Block (HRB) and Green Mountain Coffee Roasters (GMCR).

--Written by Scott Rutt in Washington, D.C.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long Intel, JPMorgan Chase.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.
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BPT $14.73 1.30%
DD $63.67 -0.92%
HD $134.67 -0.36%
INTU $100.39 0.50%
PBT $6.52 1.20%


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