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NEW YORK (
) -- "Stop, look and listen before going stock shopping," Jim Cramer once again told the viewers of his
TV show Friday, as he outlined his game plan for next week's trading.
Cramer said next week is a big one for retailers, and investors need to determine which companies have the pricing power to overcome rising commodity costs.
On Tuesday, Cramer said he'll be watching
. He said that Macy's is a company that works, while Wal-Mart remains a "wait and see" situation. Cramer said VF Corp had robust margins last quarter and is hoping the company can repeat that again this quarter.
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On Wednesday, high end retailer
will be on the menu. Cramer said both of these stocks may be under pressure.
Later in the week,
, one of Cramer's FADS CAN growth names, and
will be reporting. Cramer said he continues to expect great things from Deckers, but worries about JC Penney's online strategy.
Some non-retail names on Cramer's radar included
Cramer said investors should be watch out for the wildly trading Salesforce, but expect good things from Home Depot and Chesapeake Energy. He said HP will be an interesting call, as investors get to hear the company's new CEO for the first time.
Same Name, Different Company
For "Speculation Friday," Cramer highlighted the little known tech company known as
He said this stock has left a bitter taste in the mouths of investors, when the old Silicon Graphics went bankrupt in 2006. But the new Silicon Graphics, which was acquired by Rackable Systems, has no debt and great management. He added 27% of the current share price is cash.
Cramer said Rackable's decision to continue using the Silicon Graphics name has left it all but an orphan stock on Wall Street, with only three analysts covering the company. But the reality of the situation is that Rackable acquired some $200 million worth of technology for the bargain basement price of just $42 million.
The new Silicon Graphics derives 34% of its revenues from high-end super computers, where its stellar technology has no competitors. Another 30% of revenues comes from service and maintenance on those computers, a business with 50% gross margins. The remainder of the company is the old Rackable Systems, which manufactures power efficient servers for data centers and cloud computing applications.
Silicon Graphics posted its first profitable quarter last quarter, posting 44 cents a share in earnings, 26 cents more than Wall Street was expecting, on revenues that increased 23%. Cramer said given the company's earnings potential and an average multiple, Silicon Graphics should be a $30 stock.
Cramer said when a caller asked him about satellite phone maker
on Feb. 3, he was stumped, but went immediately to work. Turns out the current Iridium is nothing like the Iridium that went bankrupt in 1996.
Today's Iridium provides satellite voice and data service to phones, planes and ships, and can provide real time, high speed data to 100% of the earth's surface. Thanks to the high barriers of entry, Iridium has only one competitor, Great Britain's
. But Cramer said while Inmarsat may be twice the size of Iridium, he's betting on the underdog.
Iridium current has 413,000 customers around the globe, and is expanding aggressively overseas. The company could conceivably have one third of the entire satellite phone market.
However the fly in the ointment, as Cramer called it, is that Iridium needs to invest $2.1 billion to launch 81 new satellites into orbit to replace its aging fleet. While the new satellites, the first of which will launch in 2015, will provide the company with state of the art technology that will double its network capacity, Cramer said launching anything into space is a risky business.
That said, Iridium already has financing in place for the next-generation satellites, and with all their end markets thriving, Cramer said the company is certainly worth a second look.
In the "Executive Decision" segment, Cramer spoke with Chuck Jeannes, president and CEO of
, which is up 1,417% from January 2001 to January 2011.
Jeannes explained that Goldcorp's strategy has always been to add only high-quality ounces to their portfolio. They focus on finding low-cost gold and not spending a lot of capital to get it out of the ground. Jeannes called Goldcorp a value proposition that was able to produce 700,000 ounces of gold last year at just $285 an ounce.
Jeannes also expressed excitement over the company's latest acquisition in Argentina, a mine that has four veins and promises low-cost production and low-capital expenditures. Jeannes said the new project will be adding value to the company for a long time to come.
Another shiny spot for this gold producer, silver. Jeannes noted that Goldcorp, also one of the largest producers of silver, will crank out about 32 million ounces out of two of its mines.
Cramer said Goldcorp has now become his most favorite gold stock, ahead of
Cramer was bullish on
Abercrombie & Fitch
Penske Automotive Group
AK Steel Holding
There were no bears.
In his "No Huddle Offense" segment, Cramer said he's got a better use for the $50 billion President Obama wants to use for high-speed rail that no one will use: build pipelines.
Cramer said our country has recently discovered 50 billion barrels of oil we never knew we had, along with over 100 years worth of natural gas. The problem, however, is that all this fuel is located in the Midwest and Southeast, while it's needed most in the Northeast. The answer, he said, is to build more pipelines.
Cramer said Obama's $50 billion were used as loan guarantees, the oil and natural gas industries would put tens of thousands of people to work and allow our country to become energy independent instead of exporting our most precious natural resources.
--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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