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

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NEW YORK ( TheStreet) -- "Stop, look, listen and learn," Jim Cramer told viewers of his Mad Money TV show Friday, as he laid out his game plan for next week's trading.

Cramer said investors must sit on their hands while watching for clues to the second half of the year while in the middle of the earnings season.

Next week's trading will culminate with the government's jobless report on Friday, said Cramer. If the news is bad, with unemployment over 9.6%, then be prepared for pain. But in the meantime, Cramer said he'll be paying attention to the following sectors.

Cell Towers: Cramer said he'll be watching both SBA Communications ( SBAC) and American Tower ( AMT), two key components of the smartphone revolution. He said with these companies, it's cashflow, not earnings, that will matter most.

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Consumer Staples: Procter & Gamble ( PG), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , will be of interest on Tuesday, he said. He'd be a buyer on any weakness.

Auto Parts: Cramer said Lear ( LEAR), maker of auto seats, should have a good quarter, and is perhaps the only stock he'd consider buying ahead of the quarter. Also of interest, TRW ( TRW) and Magna International ( MGA).

High-end Retail:Cramer said to keep an eye on Coach ( COH), True Religion ( TRLG) and Polo Ralph Lauren ( RL) for a read on high end retail.

Also on Cramer's watch list are the natural gas stocks such as Fuel Systems Solutions ( FSYS), and the stock exchanges NYSE Euronext ( NYSE), Intercontinental Exchange ( ICE) and CBOE Holdings ( CBOE).

Speculation Friday

For his "Speculation Friday" segment, Cramer ventured into the cemetery to see if postmortem services should be a part of your portfolio. He said his research "uncovered" Service Corp ( SCI), the nation's largest provider of burial and cremation services.

Service Corp., which operates 1441 funeral homes and 387 cemeteries across the country, is benefiting from the growing trend of prepaid funeral services. Cramer said that laws require that all monies paid for prepaid burials must be held in trust until the client dies. That allows Service Corp to have excellent visibility into its future profits.

Service Corp is four times the size of the next largest competitor, and with not a lot of competition in the industry, Cramer said it should prosper as more and more baby boomers ante up for prepaid services as they retire.

Cramer said he would not pay up for the stock, as the company just reported a two-cent earnings beat on better than expected revenue up 8%, and prepaid revenues up 15%. Cramer said there's room for Service Corp to run, but also no reason to chase the stock higher.

Cramer also noted that rival Stewart Enterprises ( STEI) is not as good a company, and he's not a buyer.

Life as a REIT

In the "Executive Decision" segment, Cramer spoke with Daniel Fulton, president and CEO of Weyerhaeuser ( WY), the timber giant that just recently transformed itself into a real estate investment trust. Weyerhaeuser is also part of Cramer's Action Alerts PLUS portfolio.

Fulton explained that a REIT structure was the best way to manage the company's 6 million timberland acres in North America. He said as a REIT, shareholders will only pay capital gains taxes on dividends, as opposed to paying corporate taxes on its income.

However as part of the transition, Fulton said that the Weyerhaeuser needed to pay out all of its accumulated profits as a special dividend, which it did on July 11. As a result, Weyerhaeuser shares dropped by $26.47 a share, the price of the special dividend.

Going forward, Fulton said the company's board will be setting the dividend rate for a future dividend in the fourth quarter of this year. He said Weyerhaeuser has a very bright future ahead of it as a REIT, with opportunities not only in timber and real estate, but also with oil, wind, carbon sequestration, among others.

Cramer called Weyerhaeuser "a bargain," staying the company's new corporate structure makes it only more appealing.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included Kinder Morgan Energy Partners ( KMP), Omega Healthcare ( OHI), Windstream ( WIN), Linn Energy ( LINE) and PennantPark ( PNNT).

Cramer said this portfolio will do very well for many years.

The second caller's top holdings included Abbott Labs ( ABT), Copano Energy ( CPNO), Altria ( MO), Vodaphone ( VOD) and Yum! Brands ( YUM).

Cramer said this portfolio was also very well played.

The third caller had Ford ( F), Bank of America ( BAC), Intel ( INTC), Verizon ( VZ) and Alcoa ( AA).

Cramer said Alcoa is not his favorite, but the thought the portfolio was otherwise perfectly diversified.

Lightning Round

Cramer was bullish on Wynn Resorts ( WYNN), Temple-Inland ( TIN), Arena Pharmaceuticals ( ARNA), Cypress Semiconductor ( CY) and NVIDIA ( NVDA).

He was bearish on Pactiv ( PTV), Rambus ( RMBS), Oracle ( ORCL) and Acme Packet ( APKT).

-- 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 Procter & Gamble, Weyerhaeuser.

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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