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

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NEW YORK ( TheStreet) -- "Don't try to game earnings next week, just stop, look and listen," were Jim Cramer's cautionary words to the viewers of his "Mad Money".

He told viewers that trading during the flurry of earnings news is one of the quickest ways to lose money. With that in mind, Cramer laid out his game plan for next week's trading.

On Monday, Cramer said he'll be watching Anadarko Petroleum ( APC) and Chesapeake Energy ( CHK) to see if these companies are able to produce more oil into the booming oil rally. He'll also be watching payroll service Automatic Data Processing ( ADP) to find out what's really going on with employment.

Cramer said he'll also be watching Herbalife ( HLF) and Avon ( AVP) when they report next week. Cramer said he expects great things from Herbalife, but Avon is facing a make-or-break moment for CEO Andrea Yung, whom Cramer has said should resign.

Also on Tuesday, Clorox ( CLX) and Las Vegas Sands ( LVS), two more companies Cramer said he'll be watching closely, while on Wednesday it will be Botox-maker Allergan ( AGN), MGM Resorts ( MGM) and Whole Foods ( WFMI). Cramer said investors shouldn't be shy about taking profits in Whole Foods.

Later in the week, Cramer said General Motors ( GM), a stock which he owns for his charitable trust, Action Alerts PLUS, will be a stock to watch, along with Fluor ( FLR) and video streaming purveyor Limelight Networks ( LLNW).

Finally, Cramer said the little watched Weight Watchers ( WTW) deserves some attention, along with Chinese IPOs Renren, trading under the ticker RENN, and NetQin, which will begin trading as NQ. Cramer said investors should consider the IPOs only if they can get in on the original deal. He would not be a trader in the open market.

No Worries About Inventory Buildup

In the "Executive Decision" segment, Cramer spoke with Eric Wiseman, chairman, president and CEO of VF Corp ( VFC), a company's whose stock got pummeled, down $8 a share, after the company reported a 10-cent-a-share earnings bear on record gross margins.

Wiseman confirmed that VF Corp is firing on all cylinders, growing at 10% a year, a forecast the company expects to maintain for the next five years. He said VF Corp's earnings were consistent with forecasts and the company is "on story."

So what was the problem with the quarter? Wiseman said that some analysts noted the company's rise in inventory. He said that the decision to increase inventory was a conscious one, as the company is growing and need more inventory, plus, with prices on the rise it makes sense to bulk up now before prices head even higher. "We know what we're going," Wiseman concluded.

Next, when asked about China and India, Wiseman said that VF Corp has been in China for 15 years and China is the most profitable country for the company. He said by contrast, VF Corp has only been in India for five years, and only just turned profitable in year four. He said the margins in India are healthy and growing.

Cramer said VF Corp represents an excellent buying opportunity, as the overheated expectations of Wall Street took down a great company to a very attractive entry point.

Distinctive Products

In a second "Executive Decision" segment, Cramer once again spoke with Tim Boyle, president and CEO of Columbia Sportswear ( COLM), another apparel maker that delivered an eight-cent-a-share earnings beat on revenues up 11% year over year. Columbia also boosted its dividend by 11%.

Boyle explained that while Columbia used to produce basic products and often competed on value, the new Columbia now invests in technologies that make their products different, which is why Columbia has been able to increase its gross margins even in an inflationary environment. He said the company's new Omni-Heat products, for example, have been tracking at double the company's projected revenues.

Among the company's other new products are specially treated shirts, pants and hats that repel insects without the need for additional bug repellant sprays. Boyle explained that Columbia developed a way to bond the naturally occurring chemical to the fabric at a microscopic level such that it will still be there, even after 70 trips through the washing machine.

Finally, when asked about the company's Sorel line of boots, Boyle said the brand that was once a workman's boot, then one preferred by snowboarders, has now become a fashionable line for women as well, offering great looks and tremendous upside potential.

Cramer said Columbia is yet another undervalued company delivering great results for shareholders.

Cloud Computing Red Hot

In yet another "Executive Decision" segment, Cramer spoke with Roy Vallee, chairman and CEO of technology supplier Avnet ( AVT), which is up 34% since Cramer last spoke with Vallee in January, 2010.

Vallee said that Avnet continues to see great growth, with revenues up 16% year over year. He said in the red-hot cloud computing space, which includes storage and servers, growth has accelerated to 50%.Vallee noted that after a long hiatus, companies are beginning to refresh their hardware as it's cheaper to replace old hardware than maintain it.

When asked why older technology companies, like Microsoft ( MSFT) and Intel ( INTC) don't appear to be participating in the new technology surge, Vallee said that with many older tech companies, they're simply too large for any one new theme to "move the needle" with their earnings.

When asked about how the tragedy in Japan is affecting Avnet, Vallee said that he expects supply chain disruptions to be worked out by the fall and by the beginning of 2012, he expects Japan to be a growth market for the company.

Finally, when asked about his succession plans, Vallee said that after 13 years as chairman and CEO and 34 years with the company, it's time for Avnet to get some fresh ideas, which is why he's named an excellent successor and will be stepping down as CEO in the coming weeks.

Cramer continued his recommendation of Avnet.

Lightning Round

Cramer was bullish on Ferro ( FOE), Chipotle Mexican Grill ( CMG) and Goodrich ( GR).

China's 'Facebook' IPO

In his "No Huddle Offense" segment, Cramer told viewers that he would hold onto shares of Chinese Internet stocks Baidu ( BIDU) and SINA ( SINA), as the coming IPO on Renren, the equivalent of Facebook in China, is set to debut next week.

Cramer said he expects many technology companies, like Netflix ( NFLX), to be valued significantly higher when companies like Groupon, Twitter and Facebook eventually come public. He said the same trend is happening in China, and the rising tide is lifting all boats.

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

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At the time of publication, Cramer was long General Motors.

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."

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