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To make money, you have to be able to anticipate moves and think months ahead, Jim Cramer told viewers of his "Mad Money" TV show Friday. It may only be June, but he's already thinking back to school.
Cramer believes the No. 1 back-to-school stock this year will be
Although this stock was once a dog, it is now on the road to recovery. Aeropostale, which is headquartered in New York City, aims to sell clothes to young men and women between the ages of 11 and 18, but it totally "flubbed it" last year, Cramer said.
This year is the first time the company is selling shorts past June, and into July and August. Every year since it was founded in 1987, it has phased out shorts early, but this year the retailer will wait until summer ends. Last year, Aeropostale was selling sweaters and fleeces during the summer.
Plus, the company had the fashion wrong, he said. Aeropostale was not on top of the fact that denim was in last year. Now denim is out and twill is in. Aeropostale has a number of twill items.
In case people need more proof that the company is going to be the best back-to-school stock, Cramer said the two best retail analysts out there, Stacy Pak from Prudential and Dana Cohen from Bank of America are all for Aeropostale and are recommending buying it.
Cramer believes this stock is a buy for five reasons.
This is the first time the company's back-to-school products will coincide with when kids go back to school. Second, this could be Aeropostale's best year selling shorts ever. Third, while it didn't win the battle with denim, it's likely to win with twill. Fourth, the company has figured out what is in style; and finally, the company is currently doing a share buyback, which illustrates management's confidence in the company, Cramer said.
"The company blew it last year and worked extra hard this year," he said.
Three-Part Game Plan
Jim Cramer also offered viewers a three-part game plan for next week: buy stocks that have reported good news, redeploy money if your stocks made a lot of money the week before and buy stocks ahead of earnings reports.
Even after a two-day rally, the market is oversold, he said. Next week is a time when we will be approaching the end of the quarter, which is when all the hedge funds and mutual funds are required to reveal what they own, Cramer said. Investors want to see the results, they want to see performance.
You can profit off of this, Cramer said, advising his viewers to buy stocks that have recently reported good news.
( BSC) is one such company that has
reported a great quarter, said Cramer.
reporting strong results is
. The stock for Best Buy has just started going up, Cramer said, and he believes it is a great retail play.
, another company that
recently reported good news, is currently buying back shares; and
, another strong stock, just
raised its dividend after declaring bullish comments at a recent shareholders meeting.
"Usually I say buy weakness, but next week I'm saying buy strength," Cramer said.
Second, if you made too much money in Thursday's rally, you are not diversified enough. If everything in your portfolio made a lot of money, get out and redeploy your resources into other stocks.
"I'm still suggesting
going into supermarkets," he said. Or put it into a company like
Cramer also suggested
and said he adored
The third play, Cramer said, is buying stocks ahead of earnings. This play is specific to high-risk players.
In this case, he suggested looking into buying
Bed, Bath & Beyond
, both of which report earnings on Wednesday.
For a video presentation from Cramer on how to approach the market after Thursday's big rally, click here.
Two Ways to Pick From Oil Patch
It's time to make money off of the oil-patch resurgence, said Cramer. He offered two ways to play the field and both picks are based in Canada.
For aggressive players, who feel like risking some capital, he suggested
, which has operations in more than 16 countries.
The Calgary-based company is searching for oil in unexploited regions and is the single most aggressive in its industry, Cramer said.
For more conservative players who are looking for a more reliable source of income, he suggested
Trinidad Energy Services Income
, a trust that trades on the Toronto Stock Exchange under the symbol TDG.UN.
Although both plays are in Canada, Talisman is into the riskier oils, Cramer said.
In the Mad Mail segment of the show, when a writer inquired about how one would go about finding a company's margin debt, Cramer suggested using the
to find margin debt information.
Cramer told another viewer that every time
goes into a store, it makes gold, so it is a buy. He told another viewer that
has real value and recommended sticking with the stock.
Cramer was bullish on
Old Republic International
Smith & Wesson
Cramer was bearish on
Advanced Micro Devices
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At the time of publication, Cramer was long Network Appliance and Qualcomm.
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."
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