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

Cramer hopes the Fed steps up to the plate next week and cuts interests rates.
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"If the

Federal Reserve

cuts interest rates next week, this market will be ready to roar," Jim Cramer told viewers of his "Mad Money" TV show Friday. "If not, be prepared for more of the same."

Cramer hopes for at least a 50-basis point rate cut at the Federal Open Market Committee meeting on Tuesday, but he says it's difficult to figure out what the Fed will do. "You just can't count on this Fed."

Despite falling oil and commodity prices, weakness in the dollar and gold, and rising unemployment, Cramer said the Fed still seems to be worried about inflation. "The signs of deflation are all around us; inaction isn't going to cut it," he added.

Banking and financial institutions have been hit again, said Cramer, now that the government has all but wiped out the preferred shares of

Fannie Mae



Freddie Mac



The preferred shares of the two mortgage giants, he noted, are the vehicle many institutions use to raise capital. If investors now think the added protection preferred shares usually offer is gone, no one will but them.

Cramer said if the Fed does cut rates on Tuesday, he'd be a buyer of his "Fortress 4" banks, including

US Bancorp



Wells Fargo



Bank of America



JP Morgan Chase


, a stock which he owns for his charitable trust

Action Alerts PLUS.

Cramer: How to Trade Oil Now

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Also for next week, Cramer said he expects oil to dip below $90 a barrel. If that happens, he said he'd be a buyer of stocks that benefit from lower gas prices, companies like




Walt Disney






Standing Up to the Bully

Cramer said in the war against relentless hedge fund selling, some companies are starting to fight back.

He talked with Ray Milchovich, chairman and CEO of

Foster Wheeler


, a stock which he owns for his charitable trust

Action Alerts PLUS, about his recent decision to buy back one-eighth of his company's common stock.

Milchovich said the $750 million decision was in direct response to its share price being cut in half, despite the fact that company doubled its earnings in 2007 and increased them another 35% so far in 2008.

He said Foster Wheeler holds no debt, has $1.3 billion in cash and is worth far more than its current market valuation.

Responding to the critics who worry of project cancellations, Milchovich explained that Foster Wheeler has not seen a single cancellation or delay of any project.

He said the company's toughest challenge remains finding the capacity to meet demand. He said he's seen no material change in the company's order flow, and still sees strong growth around the globe.

Cramer reiterated his buy on Foster Wheeler.

Paper Play

"The paper and packaging business may be boring," said Cramer, "but it can make you money." He last recommended box maker



on April 7 at $13.98 a share. Since then, that stock is up 37%.

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Cramer says it's time to swap out of Temple-Inland in favor of its rival

Packaging Corp of America


. He said that Packaging Corp is a classic "catch-up" story and poised to surge higher as it "catches up" to its peers.

Cramer cites the simple economics of the packaging business for his thesis. The industry recently put through a $55-per-ton price increase, raising its top line growth.

In the case of Packaging Corp, 50% of the company's costs are for energy, mainly coal and natural gas. With plummeting commodity prices, the company should be able to beat estimates handedly.

Cramer said he also likes Packaging Corp's 4.7% dividend yield, which is not only higher than investing in Treasuries, but essentially pays you to wait until the upside surprise occurs.

With unplanned mill outages and strong exports keeping supplies tight, Cramer said Packaging Corp is a sure bet in an all too boring business.

Mad Mail

Cramer told a viewer than in addition to



, other "early cycle" stocks include durable goods, retailers and homebuilders.

Cramer told a second viewer that he feels negative press coverage makes




Lightning Round

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Cramer was bullish on




First Solar



Oshkosh Truck



Deere & Co









Medco Health



Campbell Soup



Consolidated Edison



He was bearish on

Denbury Resources






Marshall & Ilsley



Hershey Foods









Allegheny Energy


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Read more of Cramer's Mad Money Lightning Round insights


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At the time of publication, Cramer was long JP Morgan Chase, Foster Wheeler.

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.