This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

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

Moving Up

For "Speculation Friday," Cramer highlighted Ulta Salon (ULTA) a discount beauty retailer that's made the transition to a high-end experiential beauty destination.

Cramer said that Ulta stores are full-service salons, offering hair, nails, perfume, cosmetics and more. The company have been delivering spectacular earnings with growth nearing 90%. The beauty market is $96 billion in the U.S. Ulta operated 415 stores, but estimates the U.S. market could support up to 1,000 locations.

Ulta last reported a six-cent-a-share earnings beat on a 22% jump in revenues. The company also saw same-store sale growth of 11.3% and a 1% decline in inventory. The stock has a history of popping on its earnings releases, which will come again in early Dec.

So why is Ulta speculative? Cramer said its because of its valuation. Ulta trades at 30 times earnings, but only has a 24% growth rate. The company does that $3 per share in cash however and will have no debt by year's end.

Restructuring Push

Closing out his "Paid To Wait" series of high-yielding dividend stocks, Cramer dove into the stock of ConocoPhillips (COP), a 4.1% yielder that's taking control of its own destiny with massive restructuring efforts.

Cramer said Conoco has a lot of parts in motion, the first of which is a commitment to sell billions of non-core assets and focus on its exploration and production efforts. The company also has a sizable stock buyback program in place. Cramer said that normally he's not a fan of buyback programs, but in this case, the program is reducing the shares outstanding by 24%, a meaningful amount.

Taking its restructuring one step further, Conoco is also splitting itself into two companies, spinning off it's downstream refining and marketing business and keeping its exploration and production completely separate. Cramer said this is one case where the sum is worth less than its parts, and he expects Conoco to unlock a lot of value with the split, which follows in the footsteps of Marathon Oil (MRO).

Cramer said he's also confident that Conoco will remain committed to its dividend, raising it even further as the company's coffers fill with cash from its asset sales and streamlined operations. Add that to the prospects of a growing global economy and ConocoPhillips is a winner, said Cramer.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs