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NEW YORK (
) -- Today's trading action is nothing more than a healthily pause after a spectacular run high, Jim Cramer told the viewers of his
TV show Friday.
"The markets are just catching their breath," said Cramer, as he outlined his game plan for next week's trading.
On Monday, Cramer said
Enbridge Energy Partners
will report and he's still bullish on this 6.4% yielder along with all of the pipeline master limited partnerships. He said to avoid anything dealing with propane, like
For Tuesday, Cramer will be watching
. Cramer said he'd be a buyer of
if ARM reports good numbers, but he'd take a "wait-and-see" approach to Amazon.
Chipotle Mexican Grill
Cramer said he'll be listening to see if housing is back with Whirlpool and will be expecting good things from Tractor Supply. He suggested waiting on Chipotle, which hit an all-time high, but would be a buyer of Core Labs when it sells off after it reports.
In related retailed news, Cramer said to sell
, which has now gotten way ahead of itself.
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Then on Thursday,
take center stage. Cramer said he would buy Allergan and Dow on any weakness, but would take profits in Cummins, a stock which he owns for his charitable trust,
Action Alerts PLUS, ahead of its earnings.
Finally for Friday, Cramer said
will have his ear. Cramer would be a buyer of both names on weakness.
Also on the week, the much-hyped IPO of Facebook may have news. Should investors get in on the deal? Cramer said that depends on the terms and the valuation, so he needs to see more. Facebook is more than just a revenue story, he said, and the deal could be a "home run" if priced correctly.
After reporting disappointing results earlier today, Cramer asked the question, "is the Ford story finished?" He said in his opinion, is would be wrong to give up on
, but he had some sharp criticisms for its management.
Cramer said that Ford was a classic case of over-promising and under-delivering. He said the company should have pre-announced its earnings shortfall as soon as it knew things were heading south and not leave investors in the dark.
Cramer noted that the weakness in Europe was a known factor, and when the flooding in Thailand also occurred it became worthy of a pre-announcement. He said the commodity price pressures that Ford faced were also foreseeable, making the "surprise" disappointment even more unacceptable.
Ford is indeed rebuilding a great balance sheet, said Cramer, but when things go materially wrong, the right thing to do is reset the bar early and far lower than you're expecting. Cramer also would have waited to boost the company's dividend, he said, until management had a better handle onthe weakness. Ford's stock, he said, is now dead money: too low to sell but too high to buy.
Cramer once again recommended playing the auto sector through the parts makers and not via the big auto companies themselves
Euro Turns Into Tailwind
For his final "Breakthrough Medical Stock," Cramer recommended
, the world's fourth largest drug company and an Action Alerts PLUS holding.
Cramer explained that Sanofi lagged the markets last year simply because the company is based in France, causing it to get slammed with the price of the euro. But just as the euro was a headwind last year, he said the the currency risk in the company is now a tailwind going into 2012.
But more important than its nationality is the company itself. he said. According to Cramer, investors have been worried for years that 2012 would be a disaster for the company as its three main drugs, including its blockbuster Plavix, lose their patent protection. While investors fretted however, Cramer said Sanofi's management has been taking radical steps to both minimize the damage and prevent similar scenarios from occurring in the future.
In 2008, Sanofi's "big three" drugs accounted for 27% of the company's sales, but after rapidly diversifying itself into vaccines, generic drugs, consumer products and animal health products, those drugs now account for just 9% of sales. That's why the company has forecast sales growth of 5% a year through 2015, said Cramer.
Sanofi is now one of the largest makers of vaccines, drugs that are immune to economic turmoil and are hard to copy. The company is also a leader in emerging markets, which now account for 33% of sales. Additionally, thanks to its Genzyme acquisition, Sanofi also has exposure to lucrative orphan drugs as well as high-cost savings than it originally forecast.
For all these reasons, Cramer said that Sanofi Aventis remains his favorite in the drug group.
In the "Executive Decision" segment, Cramer once again welcomed TJ Rodgers, president and CEO of
, whose stock fell 10% Thursda after the company issued cautious guidance. Shares of Cypress are up 325% however since Cramer first recommended it in September 2008.
Rodgers explained that there was a hole in Cypress' revenues caused by a decline in touchscreen sales. He said the problem stemmed from the company being one quarter too late with its latest products but, he added, those products are now being designed into smartphones that will debut in the second half of 2012.
Asked whether the recent stock weakness is a buying opportunity for Cypress, Rodgers said "absolutely." He said the company has $300 million left in its stock repurchase program and the company will be aggressively buying any time the market creates an opportunity like it has now. "Buy low, sell high," Rodgers said will remain the Cypress strategy when it comes to their buyback program.
Rodgers also touted the company's newest cellphone chips as being the best in the business, saying they will be taking market share as the smartphone market continues to expand. Rodgers was also bullish on the e-reader market, saying that Cypress has a superior, low-cost solution for e-readers as well.
Finally, when asked for comment on the state of business in California, Rodgers said that California remains the worst state to do business in and the state's government continues to do a terrible job in turning itself around. He noted that CEO surveys have ranked California dead last for business five years in a row.
Cramer advised using the lull in Cypress' stock price to buy in before the company does it themselves.
Cramer was bullish on
He was bearish on
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes for today's markets. The first caller's portfolio included
Kinder Morgan Energy Partners
Cramer said that Enbridge and Kinder were too similar and one had to be sold, but otherwise this portfolio was diversified.
The second caller's top holdings included
Church & Dwight
Cramer said he liked this portfolio as is.
The third caller had
as their top five stocks.
Cramer said this portfolio has excellent diversification but he's worried about Avon and also the dividend at Whirlpool.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Cummins, Sanofi Aventis.
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.