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

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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.

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Other notable names reporting next week include AAR ( AIR), which should provide a glimpse into the health of the aerospace sector, AutoZone ( AZO), which will tell investors whether to double down on Monro Muffler ( MNRO), and finally PayChex ( PAYX), which will provide insight into the state of hiring in the U.S., he said.

All of these companies, along with Bed Bath and Beyond ( BBBY) in retail, can tell investors what's really going on, said Cramer, if they're smart enough to listen.

Healthy Food, Please

Note 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 Fundamentals

For "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.

Outrage of the Day

Cramer sounded off against the Securities and Exchange Commission's proposed banning of "flash trading." He said he's beside himself that the SEC can move so quickly on such an insignificant issue, while the big issues that cost investors billions go unchecked.

Cramer said it's clear that the SEC had no understanding of how Bernie Madoff was making his money, nor any understanding of how ultra-leveraged ETFs are destroying the financial stocks.

He said its apparently OK that no one enforces naked shorting, and that safeguards like the uptick rule can be repealed. It also seems acceptable, he said, that Bank Of America ( BAC) gets fined a paltry $33 million for hiding $3.6 billion in bonuses from shareholders.

Even more egregious, that fine was paid by the shareholders that got hurt in the first place, rather than the executives responsible for the wrongdoing, he said.

"Good work SEC," said Cramer. "Thanks for protecting us from flash trading."

Lightning Round

Cramer was bullish on eBay ( EBAY), Trinity Industries ( TRN), Covidien ( COV), Dynamic Materials ( BOOM) and Caterpillar ( CAT).

He was bearish on Celera ( CRA) and Manitowoc ( MTW).

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC .

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, clickhere .

At the time of publication, Cramer was not long any stock mentioned.

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.

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