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

Cramer outlines what stocks to buy and sell next week.
By TheStreet.com Staff ,

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

"My game plan for next week is a traditional one," Jim Cramer told viewers of his "Mad Money" TV show Friday.

He focused on a handful of companies that he feels will make investors money when they report their earnings next week.

On Monday,

McDermott

(MDR) - Get Report

reports its quarterly results, and Cramer expects its earnings will be light and take the stock lower, creating the perfect opportunity to buy competitor

Foster Wheeler

(FWLT)

, a company which he owns for his charitable trust

Action Alerts PLUS.

On Tuesday, Cramer suggested buying

Wal-Mart

(WMT) - Get Report

, saying he thinks the stock is headed to $60 a share.

On the flip side, Cramer said apparel company

Liz Claiborne

( LIZ) also reports on Tuesday, and that would be the perfect opportunity to sell. He called Liz Claiborne the quintessential sell, saying the company is still years away from a turnaround.

Cramer called agriculture giant

John Deere

(DE) - Get Report

, which reports its earnings on Wednesday, one of the premiere American manufacturers and a great brand name. Deere is thriving in the midst of global oil and food shortages and he expects the company to blow out their numbers.

Finally, he expects technology giant

Hewlett Packard

(HPQ) - Get Report

, which reports its earnings on Thursday, will post a big quarter. But he said no one will care. "Hewlett is old technology," he said, "and while it's the best of a breed, you just can't invest in it right now."

He told viewers to sell half of their positions before the company reports and the other half after they report.

Cramer: Stocks Ripe for Euro Takeover

var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 1543241529; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);

The Next Big Turnaround

For speculative Friday, Cramer changed his opinion and recommended auto parts maker

Visteon

(VC) - Get Report

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) - Get Report

.

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.

Although Visteon's high debt and need for refinancing in a few years "is a worry," he called the company "a real automotive turnaround story."

Missing Out on a Double

Cramer told viewers how he missed the mark by not recommending

Continental Resources

(CLR) - Get Report

earlier this year. He said he considered recommending the company in January, but never pulled the trigger.

In January, Continental was at $26.15, a 52-week high, and while he thought the company was great, he waited for a pullback. Shortly thereafter, the stock did pull back to $22 a share, but Cramer opted to wait for an even lower price.

Then the shares jumped to $28 a share, but still Cramer did nothing. He then missed the move completely as Continental spiked from $25.91 on March 24, 2008 to its current level of $53.22.

"The lesson to be learned," he lamented, "is there's no perfect pitch in this game." He said Continental continues on a roll after reporting a great quarter recently, beating Wall Street estimates by four cents a share and predicting production growth of 48% for 2008.

"If I had followed my own rules, I would've mentioned this one to you," Cramer said. "As long as oil and gas stays strong, this one keeps going higher."

The Wall of Shame's New Member

Cramer updated his "Wall of Shame" list of the worst CEO's. He elevated Martin Sullivan, CEO of

AIG

(AIG) - Get Report

, to the top of the list for his horrible management of the company.

"This company is moronic and I don't trust I thing they say," Cramer said. "This is a disgrace."

"This stock would go up 10% to 20% if this man were fired," he said, adding he had pleaded to AIG's board of directors to do just that.

Lightning Round

Cramer was bullish on

Apple

(AAPL) - Get Report

,

Intel

(INTC) - Get Report

,

Marathon Oil

(MRO) - Get Report

,

Gencor Industries

(GENC) - Get Report

,

First Solar

(FSLR) - Get Report

,

Applied Materials

(AMAT) - Get Report

,

XTO Energy

( XTO),

Devon Energy

(DVN) - Get Report

,

CSX Corp

(CSX) - Get Report

,

Union Pacific

(UNP) - Get Report

,

Burlington Northern Santa Fe

( BNI),

Norfolk Southern

(NSC) - Get Report

and

Potash

(POT)

.

Cramer was bearish on

Juniper Networks

(JNPR) - Get Report

,

Sunoco

(SUN) - Get Report

,

Commscope

(CTV) - Get Report

,

Genentech

( DNA),

Sunpower

(SPWR) - Get Report

,

Ormat Technologies

(ORA) - Get Report

,

Energy Conversion Devices

( ENER),

Fifth Third Bancorp

(FITB) - Get Report

,

Farm & Construction Machinery

(GTE) - Get Report

,

Intrepid Potash

(IPI) - Get Report

and

Mellanox Technologies

(MLNX) - Get Report

.

Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here

.

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

.

At the time of publication, Cramer was long Foster Wheeler and XTO Energy.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com 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, TheStreet.com 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 TheStreet.com, 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 TheStreet.com. 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 TheStreet.com, 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.

Loading ...