Cramer's 'Mad Money' Recap: Next Week's Game Plan (Final)

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NEW YORK ( TheStreet) -- Investors need to challenge their own ideas, Jim Cramer told the viewers of his "Mad Money" TV show Friday.

That's why his game plan for next week includes using the latest data to confirm or disprove many of his current investment theses.

Cramer said the latest retail sales numbers will be released on Tuesday. He said that while these numbers are interesting in a broad sense, he's focusing on the earnings of electronics giant Best Buy ( BBY). "There's no better test of the consumer than seeing if they're buying stuff they really don't need," said Cramer, adding that's why Best Buy is a great test of whether the back-to-school" shopping season is on track.

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How are things in the mobile Internet world? Cramer said to look to Adobe ( ADBE) for that answer. Also reporting next week is Palm ( PALM), but Cramer said that company is a false indicator, and weakness there would mean that other competitors, like Apple ( AAPL), are taking share.

Cramer said he's also looking for what he called "collateral damage." He said Oracle's ( ORCL) report next week could inadvertently take down the stock of rival Salesforce.com ( CRM), a stock which Cramer has been waiting to buy at a lower price.

Some other tests next week include earnings from supermarket chain Kroger ( KR), which Cramer said would indicate whether private-label products made by Treehouse Brands ( THS) and Ralcorp ( RAH) would be buys.

Also next week is the housing starts number. Cramer said a good number would mean not to buy the home builders, but instead the country's largest mortgage company, Bank Of America ( BAC), , a stock which Cramer owns for his charitable trust, Action Alerts PLUS.

Low Price Beneficiaries

With natural gas prices at historic lows, which companies benefit most? Cramer found a whole host of companies that benefit big from the decline of natural gas.

Cramer's big a long time proponent of natural gas as a bridge fuel towards clean energy and energy independence. He said that not only is natural gas good for the environment and national security, it's great for the economy as well.

By his latest calculations, converting just 250,000 18 wheelers from diesel to natural gas would create a stunning 1.7 million new jobs in the U.S., making everything from pipelines to fueling stations, and providing hundreds of thousands of supporting jobs.

But until Congress helps to make this vision a reality, Cramer said there are plenty of other ways to make money from natural gas, including from the companies that use the most of it. He said that just a $1 change in the price of natural gas translates into 31 to 40 cents a share of increased earnings for Dow Chemical ( DOW) for starters.

Likewise, a $1 drop in natural gas means 24 cents to 28 cents a share to PPG ( PPG), a stock which Cramer owns for his charitable trust, Action Alerts PLUS. It also means a 10-cent boost for DuPont ( DD), he said, although he's not as big a fan of DuPont.

Cramer said glass and composite makers also benefit. Owens Corning ( OC) gets a 24-cent-a-share boost to its earnings from a $1 drop in natural gas, while Owens Illinois ( OI), no relation, get a 10-cent boost.

Even U.S. Steel ( X) is a big winner from lower gas prices, said Cramer.

Playing the Tsunami

For "Speculation Friday," Cramer continued on his thesis on "mobile Internet tsunami" by saying that the mobile Internet will not be stopped, not even by a sizable shortage of bandwidth. "Phone companies will just have to spend more money on wireless infrastructure," he said. That means more cell towers, more antennas and better connections from the towers to wireline networks.

There are only two pure-plays on latter, said Cramer, and they are Harris Stratex Networks ( HSTX) and Ceragon Networks ( CRNT), both tiny, speculative, companies. Both Harris and Ceragon are leaders in manufacturing the microwave radios that remote cell towers use to transmit data back to wireline networks.

Cramer said both companies are not only plays on wireless infrastructure in the U.S., but also in China and India, which are making huge investments into their networks as well. Of the two, Cramer leaned towards Harris, which has 12% marketshare here in the U.S., has $2.15 a share in cash on its balance sheet, and derives 33% of its business domestically.

Cramer said Ceragon is also an interesting company with an immaculate balance sheet. The company is also a pure play on wireless, deriving 90% of its revenues from the cellular industry. Cramer issued his standard disclaimer for speculative stocks, buy in increments, use limit orders and don't pay too much in after-hours trading.

Helping Justice

In his Eureka Moment segment, Cramer offered to lend a hand to the Justice Department to help make two cases that in his words "must be made." Those cases include prosecuting those in charge of both AIG ( WEN) for making false statements that cost everyone billions.

Cramer said after reading how the government repeatedly botch the investigation of Bernie Madoff, he said he fears the government will again go after the wrong things and lose these pivotal cases.

He said the Justice Department must look at the late 2007 transcripts of the AIG analyst meetings and see how the statements made by Financial Product Division head Joseph Cassano were just not supported by any facts. He said it's also the case with Lehman executives, who repeatedly contended the company had little exposure to any toxic assets.

Cramer said both of these should be open and shut cases for the government, and both are cases that have to be made to restore confidence in the system. Cramer offered to assist the Justice Department in any way he can to help them understand, and prosecute, these offenders.

Lightning Round

In the Lightning Round, Cramer was bullish on Wendy's/Arby's Group ( WEN), CKE Restaurants ( CKR), First Niagara Financial ( FNFG), Travelers Companies ( TRV) and China Unicom ( CHU).

He was bearish on McDonald's ( MCD) and Allianz ( AZ).

-- Written by Scott Rutt in Washington

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At the time of publication, Cramer was long Bank of America, PPG.

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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