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NEW YORK (
) -- "Don't take your cues from the idiotic sellers," Jim Cramer told his
TV show viewers on Friday.
He said if you believe the press, nothing will ever go right in this world, but nothing could be farther from the truth. Cramer told viewers to forget the averages, which are being forced lower by panic hedge fund selling, and focus instead on companies with great earnings.
For next week's game plan, Cramer said he'll be watching shoe giant
( NIKE) on Monday. He said Nike delivered an awful quarter last time around, but positive comments from
might signal a turnaround. Cramer said Nike is a wait-and-see stock.
On Tuesday, Cramer said
will provide a read on the nuclear industry post-Japan, while
will enlighten us on the cost of food and transportation on Wednesday.
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Also on Wednesday,
reports. Cramer said he's a fan of this discounter that's remodeling stores and taking share.
will also provide an outlook on housing on Wednesday and seed giant
also reports. Cramer said he prefers
For Thursday, Cramer said
will have his attention for the latest on Chinese steel imports while his favorite restaurant chain
, purveyors of Red Lobster and Olive Garden, will provide insights on how the consumer is fairing with sub-$4 gasoline.
In the IPO market, Cramer said he'd try and get in on the Home Away deal set to debut under the ticker AWAY. Cramer said this website for vacation rental homes should be good for a quick pop.
Bioscience Speculation Play
For "Speculation Friday," Cramer highlighted
, which is developing a third-generation DNA sequencing technology for a host of applications.
Cramer said Pacific Biosciences is not yet profitable and likely won't be until the end of 2014, however given that the $1.2 billion DNA sequencing business is growing at 20% to 25% annually, the upside for the company is sizable.
Cramer explained that when the human genome project first sequenced human DNA, the process took 13 years and cost $13 billion. The same process today costs just $10,000 and that cost is expected to fall to just $2,000 as newer technology, like that of Pacific Biosciences, comes into fruition.
Cramer said the beauty of Pacific Bioscience's technology is that it can be used for any DNA, not just human DNA. That means the sequencer can be used for agriculture for genetically modified seeds and a host of other applications outside of just the health care arena.
Better still, Pacific Biosciences not only makes money as it sells one of its sequencing machines, the company also makes money selling consumables and service after the sale as well.
Cramer said every portfolio should have a little speculation in it, and Pacific Biosciences might offer that bit of excitement your portfolio is looking for.
Big Blue's Ambitious Plans
Rounding out his series on company's with great five-year plans for growth, Cramer highlighted
, a stock which he owns for his charitable trust,
Action Alerts PLUS. IBM outlined its five-year plan in May 2010 and has already seen a 19% gain since Cramer first got behind that plan in October, 2010.
IBM's plan calls for the company to deliver a whopping $100 billion in free cash flow over the next five years. The company plans to use $50 billion of that cash on stock buybacks, $20 billion on acquisitions and another $20 billion on its 1.8% dividend yield.
IBM says it can grow revenues by just 2% to 3% a year, but still deliver increased earnings growth of 71% by continuing to do what it does best, solve customers' information technology problems.
Cramer said IBM's plan is ambitious, but achievable. He said the company has a terrific CEO and track record of getting things done, so there's no reason to doubt the company now. Shares of IBM trade at just 11.3 times earnings despite the company's 11% long-term growth rate. Cramer said IBM is a company at the right place at the right time and its shares are a buy.
Cramer told a viewer that he'll pass on
, a scrap metal recycling play. He said while the scrap metal business is strong, this under-$5 stock needs a catalyst and Cramer doesn't see one.
When asked about
Bank of Montreal
, Cramer said he's only recommending Canadian banks at the moment and Bank of Montreal is a good one. Cramer also liked
, an Action Alerts PLUS name.
Cramer expressed concern over
, saying this richly valued stock might be worth scaling out of as it goes higher. He was more optimistic on
and would hold onto shares of it and wait for a recovery.
Finally, when a
employee asked about owning stock in the company he works for, Cramer said only up to 20% of the viewer's portfolio should be in company stock.
Cramer was bullish on
SPDR Gold Shares
He was bearish on
In his "No Huddle Offense" segment, Cramer opined on all of the misinformation surrounding the release of oil from the strategic petroleum reserve.
Cramer said he's heard comments that the move was intended to bust up OPEC, but that's simply ridiculous. He said this move was designed to break up another monopoly: speculators in the oil futures markets that have been artificially keeping prices high.
Cramer said governments have been spending trillions to stimulate their economies, only to be thwarted by high oil prices. He said it was the right move to break this trend and is in the international interest to keep prices low.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long IBM, General Motors.
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.