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NEW YORK (
) -- Good news is still bad news, Jim Cramer told his
TV show viewers Friday as he laid out his game plan for next week's trading.
Cramer explained that the markets will continue to live in a bizarre world where any good economic news will spook institutional traders into thinking that higher interest rates are at hand and send the markets back into a tail spin.
Investors will need to be extra cautious with high-yielding stocks like REITs or master limited partnerships because they can be deadly if the world's economies are seen as heating up too quickly. That's why on Monday Cramer will be watching the macroeconomic news out of China and the eurozone to gauge the mood of the markets.
On Tuesday Cramer expects good things from
because our nation's "barbell" economy still favors those at the low end of retail. Cramer will also have his eye on the
Bank of America
( BOA) Global Tech Conference and the
Diversified Industry conference to hear which companies are leading the recovery. Also on Tuesday, a speech from the Dallas
chief, which will likely be bearish for the markets on Wednesday.
Those reporting on Wednesday include
, two stocks Cramer likes on any weakness. But Cramer said he won't be paying attention to the
employment data as the data have proven to be worthless in recent months.
Thursday brings more macro data including a Philadelphia Federal Reserve speech, which will likely be more bearish than Tuesday's, and a European Central Bank meeting, which will also likely be less than overwhelming.
Finally on Friday, it's the most important news of the week, U.S. non-farm payrolls -- a number that if too good will send the hedge funds into freefall, said Cramer, but if it's too bad would create an opportunity to buy those global leaders discovered at Tuesday's conferences.
With the annual meeting of the American Society of Clinical Oncology getting underway this weekend, Cramer chose to make his "Speculation Friday" pick a small company that's doing its part to help fight cancer.
, has already run up 90% so far this year but Cramer said it could run a whole lot higher if the company's clinical data continue to deliver surprising results.
Most traditional cancer treatments are the equivalent of carpet bombing, said Cramer, not targeted treatments that kill off the bad cells faster than they kill off the good ones. But in the case of Celldex, the company's cancer immunotherapy uses the body's own immune system to fight cancer by helping to guide antibodies to only the bad cancer cells. Not only is this approach to cancer fighting less harmful to the body, he said, it also produces far fewer side effects.
That's why when Celldex' great cancer drug, CDX011, delivered a 32% response rate in Phase II testing versus only a 13% rate for traditional treatments, investors took notice. CDX011 offered patients a 10-month survival rate versus only five months normally. The company has filed for accelerated approval from the Food and Drug Administration. Cramer said the company is likely to get it given this drug's promising start.
But Celldex is not a single-drug company. It also has other cancer drugs in Phase II testing, any one of which could send the stock soaring. Cramer warned that while a 53% gain is possible on another round of good news, Celldex is also a stock that could easily be crushed by any less-than-stellar news or even a delay in the approval process.
Celldex is a risky stock, Cramer concluded, but the opportunity also makes it very attractive.
Bring Out the Value
Some companies are worth less than the sum of their parts, Cramer reminded viewers, as he turned the spotlight on
, a stock he owns for his charitable trust,
Action Alerts PLUS. Cramer said Occidental is more like three companies rolled into one, and he thinks management may be considering making a split to bring out value.
Occidental's first business centers around its international oil assets that are primarily based in the Middle East and North Africa. Cramer said recent estimates speculate Occidental could fetch $20 billion for those operations, money that would allow it to buy back nearly 26% of its outstanding shares.
The rest of Occidental centers around the U.S., with a steady dividend-paying chemicals and oil production business, and a high-growth unconventional oil company centered around the Permian Basin and the newly discovered Monterey shale field in California. Cramer said these domestic assets alone are worth $126 a share, making the combined assets worth $141 a share, or a full 53% more than they trade today.
Cramer said these splits will not happen over night, and might not happen at all. But with the hints management has given and the strength of Occidental's business overall, this is one stock on which investors should consider taking a chance.
In the Lightning Round, Cramer was bullish on
US Airways Group
Cramer was bearish on
Buy High, Sell Higher
Sometimes you just can't buy low and sell high, Cramer told viewers. Sometimes, you have to settle with buying high and selling higher. That is certainly the case with
, a highly speculative medical device stock that's growing like a weed with groundbreaking technology.
Cramer explained that TearLab makes a revolutionary lab-on-a-stick system to help eye doctors diagnose dry-eye disease, which afflicts 20 million to 40 million people in the U.S. Currently, fewer than 5% of patients with dry-eye are being treated. Why? because the current test requires a tear sample to taken and sent to a lab for testing.
But TearLab's system allows doctors to now diagnose the disease with far fewer tears right in the their office. The TearLab system is so simple to use, it doesn't even require a doctor to operate it.
The beauty of the TearLab system, said Cramer, is its razor/razor blade model, which requires doctors to continually buy the company's disposable test strips that include the integrated chip technology. This model allowed TearLab to boost gross margins from 21% to 46% in just a year's time and also helped it achieve 300% revenue growth during the same period.
Cramer warned that TearLab is
speculative and only has a $300 million market cap. While the company's story may still be in its early innings, it should be bought with care.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer shared his experience test driving the
Model S. In a word: "Wow." But does that mean investors should buy the stock along with the car?
Cramer said even Tesla's CEO says the company wouldn't be profitable without government subsidies. After all, Tesla only plans on making 21,000 cars in 2013. But with growing demand and strong interest overseas, that could change in the future.
Cramer said that every time he's lost his investing discipline, he's lost money -- which means that as exciting as Tesla the company may be, he cannot recommend the stock...yet. You can't short it, he concluded, but you can't buy it either. It's just too early to tell.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had a position in JPM, OXY and WY.
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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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.