Cramer's 'Mad Money' Recap: Earnings Matter (Final)

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NEW YORK ( TheStreet) -- "Earnings matter," were Jim Cramer's words of wisdom to the viewers of his "Mad Money" TV show Friday, as he told investors to not be blinded by macroeconomic news, and instead focus on the stocks that are doing exceptionally well.

Cramer said the strength in U.S. markets today was due to earnings finally being too good to ignore. He said while the rest of the world sold off on China's half point interest rate hike, U.S. stocks were on a tear based on good old fashioned earnings and takeover speculation.

So what's in store for next week's game plan? Cramer said he'll be watching Hewlett Packard ( HPQ) on Monday for a read on the tech sector. Will HP be another Cisco ( CSCO), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, or another Salesforce.com ( CRM)?

On Tuesday, Cramer's attention turns toward J.Crew ( JCG), a retailer in no man's land since it reported a bleak outlook last quarter. Cramer said he'd be a buyer if the stock goes lower, as 2011 should be a great year for the company.

Cramer said he'll also be watching Cracker Barrel ( CBRL) on Tuesday, hoping it goes lower so investors can get in at a better price. He'll also have an eye on John Deere ( DE) on Wednesday, as that stock will likely go lower on the company's historically downbeat conference calls.

Finally, Cramer said the Federal Reserve minutes to be released on Wednesday will pressure stocks. He told investors to keep their shopping lists ready to pounce on any bargains.

An Environmental Cleanup Leader

In the "Executive Decision" segment, Cramer spoke with Alan McKim, chairman, president and CEO of Clean Harbors ( CLH), one of the leaders in the environmental cleanup business. Clean Harbors recently reported a 36 cent a share earnings beat on year over year revenues that were up 90%.

McKim said the economy is picking up, and Clean Harbors is seeing waste volume at their incinerators and landfills picking up. He said the chemical and refining business is especially strong, and the company is getting calls for environmental cleanup projects every day.

McKim also said that Clean Harbors is in a good position, as there haven't been any new incinerators built in the last 15 years. At the company's landfills, he said pricing is looking good and will be improving in 2011.

McKim said he's excited about opportunities in the pharmaceutical industry as well as in natural gas drilling, where every rig needs Clean Harbor services to handle their waste operations. He said that Clean Harbors already has many contracts in place, and can respond in just hours wherever they are needed.

Cramer reiterated his buy recommendation on Clean Harbors, saying the stock is still way too cheap, and he'd be a buyer on Monday.

Energy Efficiency Play

For "Speculation Friday," Cramer showed investors how to effectively speculate on the growing energy efficiency trend. He once again recommended Ameresco ( AMRC), a stock he recommended when it IPO'd on July 20.

Back in July, Cramer said he liked Ameresco's consulting, engineering and implementation business that centered around making buildings more energy efficient. He said Ameresco's stock would act like a tortoise, and slowly crawl its way higher. Since then, shares have indeed slowly risen, up 23%.

Months later, Cramer said Ameresco is still a buy. He said the company's services are still in huge demand, with Ameresco's backlog approaching $1 billion, despite its $500 million marketcap. Ameresco's services help customers achieve a 40% return on their efficiency investment, often recouping that investment in less than two years.

Cramer said other than great earnings visibility, he also likes that Ameresco is not beholden to any one client. He called the company a smart speculation in a smart business, and he'd continue to be a buyer at these levels.

Green Week Wraps Up

Closing out his "Green Week" theme, Cramer recommended not one, but two, filtration stocks that help companies save energy by keeping their equipment running smoothly.

Cramer said Pall Corp ( PLL) is an excellent choice, as the company makes filters for everything from biotech to water, aerospace to food and beverage and beyond. Cramer said Pall Corp has a stable, but growing, business with nearly three quarters of the company's revenues coming from recurring filter replacements.

Cramer said he also likes Donaldson ( DCI), a primarily industrial filter maker that recently beat earnings and raised guidance. Donaldson projects the $8 billion industrial filter market could rise to $11 billion by 2016. Cramer said trading at just 18 times earnings with a 12% growth rate, Donaldson's stock is just way too cheap.

Lightning Round

In the Lightning Round, Cramer was bullish on Annaly Capital ( NLY), Chevron ( CVX), Bank of America ( BAC), Oracle ( ORCL), Salesforce.com ( CRM) and F5 Networks ( FFIV).

Cramer was bearish on American Capital Agency ( AGNC), Aegean Marine Petroleum Network ( ANW), Dryships ( DRYS) and Nordic American Tanker ( NAT).

Closing Comments

In his closing comments, Cramer said those criticizing the recent General Motors ( GM) IPO are just nuts.

Cramer said imagine the heat the government would have taken if the deal had been priced too low, leaving money on the table. And think of the criticism if the deal would have been priced too high, and investors lost money on the first day.

But instead, Cramer said the IPO was near perfect, a gigantic deal that was placed, and priced, just right.

Cramer said he still wishes that the government would have made the IPO more accessible to the individual investor, perhaps with an auction format, but given how the deal came about, he said we couldn't ask for more.

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

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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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