NEW YORK ( TheStreet) -- Investors need to pay attention to individual companies for the most accurate read on how the economy is really faring, Jim Cramer told the viewers of his "Mad Money" TV show Friday. Cramer then mentioned which stocks he'll be watching next week. He said the most pivotal stock reporting next week is BlackBerry maker Research In Motion ( RIMM). When the company reports on Thursday, it will give us the latest read on the mobile Internet tsunami, said Cramer. But with RIM already up 20% in 20 days, he said he's staying away from the stock and will just use it as a gauge for the rest of the sector. He said drugstore-chain giant RiteAid ( RAD) is being used as a play on the upcoming flu season, but with the company running a distant third behind rivals Walgreen ( WAG) and CVS Caremark ( CVS), he would use strength in RiteAid to buy the other two. For a read on the broader markets, Cramer's looking to ConAgra ( CAG) and General Mills ( GIS). If these historically defensive names rise on their earnings, he'd begin scaling out of more cyclical stocks.
Healthy Food, PleaseNote to Kraft ( KFT): "People want healthy food, not candy!" Those were Cramer's words to the company's management. He said Kraft needs to abandon its takeover of Cadbury ( CBY), and instead go where the growth is, and that's Hain Foods ( HAIN). Cramer said his logic is simple. What matters most in the food business is shelf space. The more shelf space your products have in the supermarket, the more money you make, he said. That's why a trip to his local grocery store proved his thesis. Cadbury products consumed only two feet of shelf space, while the natural food products of Hain had 52 feet of space. At Whole Foods ( WFMI), a chain which prides itself on healthier choices, Hain Foods commands 220 feet, said Cramer. But what of the fundamentals? Cramer said Hain Foods shines there as well. He said the company is focused on growing the number of stores that carries its products and the number of products it manufactures. Cramer said Kraft is using outmoded thinking and should be focused on Hain. He said the stock of Hain could double on its own merits, and as a takeover target, could fetch at least $26 a share.
Strong FundamentalsFor "Speculation Friday," Cramer featured the one stock in mobile Internet index that has been flat since he created it on Aug 11. He said that telco equipment maker Tekelec ( TKLC), may be lagging the market, but it's not dead money. Cramer said the problem with Tekelec has been its most recent earnings. While the company beat expectations, it reported only inline guidance, along with news that India's implementation of local number portability has been delayed. Cramer said after a huge run from $11 to $19 a share, investors took profits in Tekelec after the news and have not looked back. But that's a mistake, according to Cramer because Tekelec's fundamentals are still strong. The company makes equipment for text-message processing, a huge and growing business, and equipment for local number portability. He said number portability is still a go in India and that it was merely delayed until year's end. International growth will be huge for Tekelec, he said, as 12 other countries are expected to roll out number portability in the next two years. Cramer said this $16 stock has $4 a share in cash. Even with modest multiples, its worth $21 a share, but with premium multiples, the company could fetch $27 a share.