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

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NEW YORK ( TheStreet) -- "It's possible the bears will have the upper hand next week," Jim Cramer told the viewers of his "Mad Money" TV show Friday. "But while other people panic, you stay calm and profit"

Cramer said next week's trading will be dominated by the Federal Reserve meeting on Tuesday. He told investors they need to beware of Tuesday, as the bears will likely use any excuse to take profits and send stocks lower.

Also next week is the latest read on industrial production on Monday. Cramer said he'll be watching that key metric for a look into the health of the economy. He'll also be paying attention to biotech Sequenom's ( SQNM) conference call. Cramer said this stock has doubled in recent weeks, but he needs to listen and learn about the company's future prospects before taking any action.

On Tuesday, in addition to the Fed meeting, the markets will also get a read on housing starts. Cramer said this new needs to be low, as there are still too many homes on the market. He said a low number shouldn't be hard to achieve given historic winter weather in much of the east coast.

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Also on Tuesday, shoe retailer DSW ( DSW) reports, which should provide fuel to buy Cramer favorite Deckers ( DECK) and Jones Apparel ( JNY).

Then there's aircraft services company AAR ( AIR) which could fuel buying in Boeing ( BA), he said.

Cramer said he'll also be watching Discover Financial ( DFS) on Tuesday, and Nike ( NKE) on Wednesday. Cramer said Nike must beat $4.6 billion in sales, 94 cents a share, with future sales trending upward, for that stock to be a buy.

Finally, on Thursday, Cramer said FedEx ( FDX) will have the most important things to say on the economy, while Palm ( PALM) will be signaling whether that smart phone maker is dead, or alive.

Cramer said if Palm takes down Apple ( AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS , on its bad news, that would be a buying opportunity for Apple.

The Tipoff

For "Speculation Friday," Cramer highlighted Sunstone Hotel Investors ( SHO), a hotel investment trust that's been down on its luck, but may be poised to recover.

Cramer said his tipoff for Sunstone came from reading that the company's CFO had just purchased 5,900 shares of the company's stock in the open market. Cramer said of all the executives who could be buying shares, investors need to take notice when the guys who handle the money, the CFO's, buy their company's stock.

Sunstone has been on the ropes for awhile, with the company defaulting on loans for 14 of its 29 hotel properties, as what was owed on the mortgages rose above the values of the properties. Of the 14 analysts who cover the stock, only one gives it a buy, with 12 holds and two sells.

But Cramer noted that Sunstone may be worth speculating on, given its CFO has confidence in the company, and that it beat earnings estimates on Feb. 23 by one cent a share. The company reported occupancy increases at all of its properties, has $4 per share of cash on its books, and is in negotiations to keep three of the 14 properties it abandoned.

Cramer said he also likes the fact that Sunstone could soon restart its dividend, which it halted in 2009 amid the worst of its troubles. He said there's no hurry to buy into Sunstone, with shares at their 52-week high, but he would consider it on a pullback.

Pet Plays

"There's a bizarre bull market going on in pets," Cramer told viewers. He said that after Del Monte Food ( DLM), makers of Meow Mix, Milkbone and Snausages brands of pet foods and snacks, reported stronger-than-expected sales, he took notice.

Cramer said there's no questioning that Americans love their pets, with pet supply sales topping $45.5 billion in 2009 and expected to top $47.7 billion in 2010. With 62% of American households owning at least one pet, Cramer said investing in the pet bull market should be a no-brainer.

But Cramer said he's still not a fan of Del Monte, which is largely a fruit and vegetable powerhouse. Instead, he said inventors need to look into Petsmart ( PETM), the country's largest pet product retailer with 1,100 stores, and PetMed Express ( PETS), the country's largest online pet pharmacy.

Cramer said Petsmart has it all, from pet foods and supplies, to services like boarding, grooming and healthcare. The company reported same-store sales were up 1.5%, with inventories down 6%, in its most recent quarter. Petsmart trades at 15 times 2011 earnings, but has historically seen 19 times earnings, which Cramer said would be more appropriate for its accelerating sales.

Then there's PetMed Express, the ( AMZN) of the pet world. Cramer said this company simply makes it easier and cheaper to care for pets, by buying medications and supplies online. This company trades at just 16 times its earnings, despite its 15% long-term growth rate.

Cramer said he wouldn't chase either of these names higher, but on a pullback, both would be very attractive.

Outrage of the Day

Cramer offered an open invitation to the investigators of our financial collapse to subpoena him for a real list of the people responsible for the collapse of our financial system.

Cramer said it makes no sense that all of the "investigations" so far have focusedon the current CEOs of the banks and insurers. "We need to hear from the people responsible," he said, "the people who crashed and burned their own companies."

Cramer said the investigators need to hear from the former heads of Bear Sterns and Lehman Brothers on how they could have no risk controls and totally surrender to greed. They need to hear from Fannie Mae ( FNM), on how they could take in so many bad mortgages. He said they need to hear from the executives at Washington Mutual execs to see how they allowed the biggest bank failure ever to occur.

According to Cramer, there's a host of others, including the unregulated hedge funds, the regulators, the FDIC, and the ratings agencies like Moody's ( MCO). "Where were they?"

Cramer said the investigators need to get serious and call on all these people to get to the bottom of the problem, and he's all too happy to help.

Lightning Round

Cramer was bullish on ADC Telecommunications ( ADCT), Agnico-Eagle Mines ( AEM) and Leggett & Platt ( LEG).

He was bearish on Select Comfort ( SCSS), Ivanhoe Mines ( IVN) and UAL ( UAUA).

-- 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 Apple.

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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