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NEW YORK (
) -- "If you own the right stocks, they will rally," Jim Cramer told his
TV show viewers Friday as he laid out his game plan for next week's trading.
Cramer said that investors need to do their homework and watch the earnings so they can be ready to buy the companies that are succeeding the next time Europe trashes our markets.
On Monday, Cramer told viewers to watch out for
, as this company needs to post at least $9.62 per share of earnings and guide upwards in order to head higher. "Priceline needs to win or go home," he said.
For Tuesday, Cramer will be listening to
for a read on the propane group. He said if this stock falters, all propane stocks will be vulnerable. "Be careful," warned Cramer. Also on Tuesday, watchmaker
. Cramer said this company has a history of getting crushed after earnings and if the stock falls below $82, watch out.
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS, along with
Green Mountain Coffee Roasters
Cramer said that GM has been underwhelming thus far and must ignite the analysts, while Cisco should be ready to deliver. Cramer said to be careful with Ralph Lauren and wait until after the company reports before pulling the trigger. He also said that Green Mountain must update on a number of issues and put accounting and patent issues behind it before it's worth buying.
On Thursday, Cramer will be watching
. He said that if Macy's disappoints, he'd be a seller of both Kohl's and Nordstrom, but if Disney falls, he'd be a buyer.
Finally on Friday, Cramer said investors should steer clear of
as home prices have yet to recover.
Value of Homework
In his "No Huddle Offense" segment, Cramer opined on the multitude of companies that have simply blown away the numbers this earnings season. If particular, he noted a
analyst who said that his downgrade of
may have been "premature."
Cramer said the Starbucks story should have run out of gas by now, but hasn't. The company is opening new stores at a fever pitch, yet isn't having any hiccups in its expansion plans. The company also has a multitude of competitors, yet Starbucks was able to post same-store sales growth of 10%.
Cramer said while the media is out to scare the public and the analysts are looking at the global picture instead of the micro one, smart investors that did their homework can see these companies coming from a mile away.
A Speculative Tech Play
When it comes to augmenting your paycheck, Cramer said that stocks are still the only game in town. That's why for Speculation Friday, Cramer highlighted
, a tiny Israeli tech company.
Cramer explained that Allot helps wireless carriers manage their bandwidth by optimizing data usage on their networks. In short, Allot helps cell phone companies charge more for better data services. Despite doing business in Europe, Allot is seeing no slowdown in that region and was able to post a four-cent-a share earnings beat on a 37% boost in revenues. The company also has $2.54 a share in cash and zero debt.
Allot competes with the likes of Cisco, yet you wouldn't know it, said Cramer, as its growing like a weed with a 33% growth rate. Allot also plays in a very high margin business, helping its cash flow position.
Cramer said that Allot is small and has already had a big run up from $9 to $15 a share. He told investors to wait for the company's upcoming secondary offering to buy the bulk of their position and to use limit orders to protect themselves from paying too much.
Company in Transition
In the "Executive Decision" segment, Cramer sat down with Jeff Gardner, president and CEO of
, a regional telco with a monster 8.4% dividend yield. Windstream shares were down 5.8% today on a two-cent-a share earnings miss with lighter than expected revenues. A broken company or a broken stock? Cramer found out.
Gardner said that for the past five years, Windstream has been transitioning itself from its legacy landline business into one focused on the enterprise and broadband services. He said in the coming years Windstream will be a national powerhouse in the enterprise data business with a sideline business in phone lines.
Analysts were worried about Windstream's revenues, but Gardner noted that his company is closing an acquisition soon that will add over $100 million in new revenues. Analysts also cited the company's big increase in capital expenditures.
However Gartner said that Windstream is taking advantage of a rare and time sensitive opportunity to run high-speed fiber lines to cell tower sites ahead of 4G network rollouts. He said the resulting five- to seven-year agreements will be extremely lucrative, but they do require an upfront investment. "These deals are the right thing to do," said Gartner.
When asked about the company's juicy dividend, Gardner said that strong cash flows have always been a part of Windstream and will remain so. He said that shareholders will continue to see great returns.
Cramer said that Windstream is a company in transition, but 2012 will be a great year for the company.
Cramer was bullish on
He was bearish on
Huron Consulting Group
In this segment, Cramer followed up on
, which stumped him in an earlier show. Cramer said that while the company's growth is great, the stock is up 90% in 30 days. He said to take profits in Fusion-io and go buy some
Cramer was also bearish on
, a regional bank in Washington state. He said that Banner is still a bank, which means he doesn't want to own it. Similar sentiments for
, a telco with a 10.5% dividend yield.
Cramer said the company doesn't have the earnings to support that yield and he'd rather own
Turning to viewer questions, Cramer said that he's not interested in
Kodiak Oil & Gas
and would rather own the best of breed oil drillers in the Bakken, and that's
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long 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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