NEW YORK ( TheStreet) -- "Even though the markets got pummeled this week, the earnings continue to be strong," Jim Cramer told the viewers of his "Mad Money" TV show Friday. That's why for next week's game plan, Cramer noted a dozen stocks that he'll be watching to see if the trend will continue. On Monday, Cramer said he'll be watching drugstore giant CVS Caremark ( CVS) to see if this company is finally turning things around. If so, Cramer said he may turn positive on the name next week. Cramer will also be watching Vulcan Materials ( VMC) to see if the federal stimulus is kicking in and Electronic Arts ( ERTS) to see if social gaming is as hot as he believes.
A Matter of TimingIn the "Executive Decision" segment, Cramer spoke with Harald Braun, president and CEO of Aviat Networks ( AVNW), formerly known as Harris Stratex, which Cramer recommended on Sept. 11. Since then, shares of Aviat have been flat, with the company reporting a less than stellar fourth quarter. Braun explained that Aviat booked a lot of new deals in its fourth quarter, but since many of the deals are complex, spanning multiple quarters, the company was not allowed to recognize all of the revenue. He said the fundamentals are in place and demand for the company's products are there, but the revenue was simply a timing issue. Braun remained cautious for the company's fiscal first quarter as well, saying that revenue recognition is a short-term issue and that it will take two or three more quarters to be fully resolved. Cramer took a disappointed and a cautious stance towards Aviat, saying that with the mobile Internet growing like gangbusters, he expected Aviat's microwave backhaul equipment to be flying off the shelves. He took a wait-and-see approach and stopped short of recommending the company at these levels.
3-D's for RealFor "Speculation Friday," Cramer said the trend towards movies in 3-D is apparently not a fad, and he changed his recommendation on Cinemark Holdings ( CNK), the nation''s third largest movie theater chain. Cramer said he mistakenly told a viewer last week that Cinemark was a "don't buy," because he failed to realize the growth potential of 3-D technology. He said 3-D is giving people a reason to go back to the movies, and with 3-D tickets selling for $3 more than regular showings, the theaters are the big winners. Cinemark operates 426 theaters here in the U.S. and has big exposure in Latin America, where it's the No. 1 chain in Brazil. Cramer said with 17 films planned in 3-D for 2010, the 3-D trend will be big news for Cinemark's earnings. Cramer also noted that Cinemark is pioneering its own XD technology, which provides an immersive experience similar to IMAX ( IMAX) theaters. With only 15 theaters XD compatible so far, Cramer said here again, the growth potential could be huge. Cinemark trades at only 15.4 times its earnings, compared to about 20 times which it fetches historically. Cramer said that makes it cheap given that 50% of all films are expected to be in 3-D by 2015.
Outrage of the DayCramer took aim at Air Products ( APD) bid to purchase rival Airgas ( ARG), a company which Cramer said is far superior. Cramer said not only would the deal be completely anti-competitive, but it grossly undervalues Airgas, which has outperformed Air Products nine of the past 10 years. Cramer stood behind Airgas CEO Peter McCausland, who has appeared on Mad Money over a dozen times. Cramer said Airgas shareholders should not approve the deal for a quick profit, but rather stick with McCausland, who has proven that he is the better manager and an excellent CEO.
Lightning RoundCramer was bullish on Citigroup ( C), SPDR Gold Shares ( GLD) and Ford Motor ( F). He was bearish on XTO Energy ( XTO), Neutral Tandem ( TNDM), Stillwater Mining ( SWC) and Toyota Motor ( TM). -- Written by Scott Rutt in Washington D.C. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.