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NEW YORK (
) -- "Be cautious, but don't miss out on opportunities," Jim Cramer told the viewers of his
TV show Friday, as he laid out his game plan for next week's trading.
He said next week might yield another 2% to 3% slide in the markets, but that doesn't mean there aren't great stocks to be bought.
Topping the headlines next week will be the IPO of General Motors, said Cramer, who urged investors to get in on the IPO if they can, but avoid the stock in the open market afterwards.
Cramer said the better stock, and the better company, is rival
. Ford is hands down the better company, and once GM's valuation becomes apparent, Ford will look all the better, he said.
Cramer said he'll also be watching other stocks next week, like
. Nordstrom, he said, should deliver terrific results, but Urban is too dangerous to own at current levels and is only attractive under $30.
Also on the radar,
, purveyors of the TJ Maxx and Marshall's chain. Cramer said should post solid earnings, as should
in the tech space.
Cramer said he'd be a buyer of
next week, but only if the stock gets hit after it reports earnings. Finally on Friday, Cramer said
Yingli Green Energy
will offer a read on alternative energy, but he would not be a buyer.
Stellar Biotech Story
In the "Executive Decision" segment, Cramer spoke with Bob Hugin, CEO of
, a company Cramer called "the best biotech story in the world."
Hugin said that Celgene's performance has been strong on many fronts, including market share gains, patients staying on the company's treatments longer, and expansions into new geographic markets. Hugin also noted that Celgene has 25 phase three trials underway, ensuring sustainable mid- and long-term growth for the company.
Hugin noted that for drugs like Revlimid, the company's blood cancer treatment, growth has been data driven, and as more patients are seeing results, even more patients will want to begin treatment. He said Celgene's acquisition of Abraxane BioSciences has given the company promising treatments for solid cancer tumors, and those phase three trials are underway all over the globe.
Celgene also has drugs in the works for psoriasis, which Hugin said should finish trials by the end of 2011 and offer solid data by 2012. Hugin said Celgene is offering drugs that make a meaningful difference in patients' lives, and with good impacts come good returns.
Cramer congratulated Hugin on a job well done and reiterated his buy recommendation on the stock.
Too Cheap to Resist
For "Speculation Friday," Cramer said that
, a stock he's hated for many years, has now become too cheap to resist.
Cramer said that Motorola has become a situation where the sum is worth less than its parts, which is exactly why the company is planning on spinning of it's mobile phone and cable set-top box divisions under a new entity called Motorola Mobility.
The new company will have $3.5 billion in cash, no debt and will be an instant contender in the mobile phone market thanks to its successful bet on
Android operating system.
Cramer said Motorola "lucked out" by betting on Android, now the world's fastest growing mobile OS. Combine that growth with with devices that can interact with a new generation of Motorola cable set top boxes, and Cramer said you've got a winner.
Motorola is also regaining share internationally, focusing on Europe and Latin America, along with China, where the company's share has dwindled from 26% to just 2% over the past few years.
Cramer said there are still plenty of worries surrounding Motorola, but he feels all of those worries are already baked into the stock. He said that Motorola's remaining enterprise businesses, which won't be part of Motorola Mobility, may also be an attractive takeover target.
Trading at just 12 times earnings, Cramer said he'd start a position now, and buy more on any weakness, while waiting for the Mobility spinoff.
Best of Breed
Cramer said when it comes to difficult to understand sectors, it always pays to stick with best of breed. Such is the case with mortgage real estate investment trusts, companies that offer monster dividends, but little transparency.
Cramer said he's received questions about companies like
Invesco Mortgage Capital
Walter Investment Management
recently, but was unable to analyze them well enough to feel good about recommending them.
Cramer said the problem is that there is no transparency as to which securities these companies own, and that makes them nearly impossible to judge. He said in this situation, he's reverting to
Annaly Capital Management
, and its CEO Mike Ferrell. Cramer said Annaly has paid out dividends for a long time and has better management than other firms. Annaly has also weathered the recession better than most, he said.
Cramer said while in the short term, companies like Invesco or Walter may offer better returns, Annaly is the safest choice in a tough neighborhood.
Cramer was bullish on
Las Vegas Sands
He was bearish on
International Game Technology
Cramer railed against a recent article with a headline that said, "Home prices decline in half the country." Cramer said the article noted that while 76 of 155 areas surveyed did decline in value, 77 of the areas rose in value. He said this negative bias and double speak is exactly what's wrong with the markets.
The same article cited the expiration of the federal tax credit as weighing on the markets, while noting that the average home price has stabilized. Cramer said he's sick and tired of articles like this one. He said the same negative pundits predicted the end of the car market after "Cash for Clunkers" last year, and auto sales are now clearly on the rebound.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was not long any stock mentioned.
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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