Cramer's 'Mad Money' Recap: Tight Election Race Highlights Next Week's Game Plan (Final)

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NEW YORK ( TheStreet) -- It's politics, as well as stocks, that will have Jim Cramer's attention next week. He told the viewers of his "Mad Money" TV show Friday that next week's game plan is jammed packed.

Cramer said perhaps the most important event for stocks next week is the special election in Massachusetts on Tuesday. He said a Republican win in the Senate would be a huge win for the bank and oil stocks, not to mention health care and the drug makers.

Next week will also bring a litany of earnings from the banks, with everyone from CitiGroup ( C) to Goldman Sachs ( GS) to Capital One ( COF) reporting. Cramer said he expects the group to be subdued in its comments given the current climate in Washington, and he's not looking for anything spectacular.

Also reporting next week are the beginnings of the tech sector. Cramer said he's watching Seagate ( STX) and Skyworks Solutions ( SWKS) for good news, but IBM ( IBM) will be his favorite for the week.

Cramer said he'll also be watching railroads CSX ( CSX) and Union Pacific ( UNP) for a read on the health of the economy. And he'll be watching Coach ( COH) for a read on retail.

Cramer said Starbucks ( SBUX) is a buy under $22 a share ahead of their earnings, and earnings from Johnson Controls ( JCI), a stock, which he owns for his charitable trust, Action Alerts PLUS and Schlumberger ( SLB) should also be bullish.

Finally, Cramer said the IPO of Warren Buffett's Symetra Financial should also be a big winner next week. He told viewers to get in on the IPO if they can.

Shadow Inventory Play

For "Speculation Friday," Cramer discovered a way to make money from the so-called "shadow inventory" of foreclosed homes currently owned by banks and mortgage lenders.

He said the little known Altisource Portfolio ( ASPS) is one of only a handful of companies that actually benefit from increased foreclosure activity.

Altisource is in the business of helping banks streamline their foreclosure activities, saving them money in the process. Cramer said the company is similar to Lender Processing Services ( LPS), which he featured on Sept. 29, 2008 and which is currently up 34%.

Cramer said with no end in sight to the wave of home foreclosures, the speculative Altisource is the perfect play. The company is virtually unknown, with only one analyst covering the stock. Altisource trades at just 9.7 times its 2011 earnings, but maintains a 20% long-term growth rate.

"Altisource knows how to foreclose right," said Cramer. Given the company has a technological edge over its competitors, Cramer said this little speculative stock is worth a closer look.

Mea Culpa

Cramer issued a "mea culpa" to viewers for two stocks that he recently got wrong. "We must learn from our mistakes," he told viewers, "we must be accountable." He said he highlights his mistakes on "Mad Money" so that everyone can be sure not to repeat them.

L-1 Identity Solutions ( ID) was the first stock that Cramer admitted he got wrong. He recommended the stock on Oct. 16 at $6.86 a share and reiterated a buy on Oct 28. After rising slightly, the stock has fallen to about break-even.

Cramer said his mistake was believing management's comments that a single bad quarter was an anomaly and not the beginning of larger problems. He said the fundamentals at the company continue to deteriorate. Upon closer examination of the company's performance, Cramer said it seems L-1 is a mix of smaller businesses that are simply not integrated well.

Tessera Technology ( TSRA) was Cramer's second mistake. He recommended the company on May 26 around $20 a share, and reiterated buys on Aug. 11 and Oct. 6. Tessera shares are now lower than the original recommendation.

Cramer said Tessera suffered from the same problem as L-1. The company conveyed a dismal fourth-quarter outlook, but Cramer believed management, who told him the worst was behind them. Cramer said he fell in love with the overarching theme, instead of being skeptical of a company that just missed its earnings.

Cramer said the takeaway from these misses is a new "strike-one-and-you're out" rule. He said any company who misses earnings must redeem themselves with one quarter's of good earnings before it can be bought. He said taking management's word that things are getting better is no longer acceptable.

Mad Mail

Cramer followed up on National Beverage ( FIZZ), a stock which stumped him earlier in the week.

He said he's not a fan of this second-rate beverage maker, and prefers to stick with Pepsico ( PEP), a stock which he owns for his charitable trust, Action Alerts PLUS . He said Pepsi's diversified business model and international exposure make it the better play.

Cramer panned a viewer who asked about TakeTwo Interactive ( TTWO) by saying the company is simply not a good company and he sees no opportunities at the moment.

Cramer also dismissed the idea of investing in 3D movies and entertainment. He said the technology is not ready for prime time and there aren't even any companies to invest in. He said the closest stock would be IMAX ( IMAX), and he's not a fan of that stock, either.

Lightning Round

Cramer was bullish on Alaska Communications Systems ( ALSK), Amgen ( AMGN), Gilead Sciences ( GILD), Celgene ( CELG), SanDisk ( SNDK), Taseko Mines ( TGB), SPDR Gold Shares ( GLD), Eldorado Gold ( EGO), Hasbro ( HAS) and Netflix ( NFLX).

He was bearish on AT&T ( T).

-- Written by Scott Rutt in Washington D.C.

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

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

For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long Johnson Controls, Gilead Sciences, Pepsico.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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 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, 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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