Cramer's 'Mad Money' Recap: Game Plan for Earnings (Final)

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NEW YORK ( TheStreet) -- "Do not panic if the markets go down next week," Jim Cramer told the viewers of his "Mad Money" TV show Friday, as he laid out his game plan for next week's trading. Cramer said heavily margined hedge funds are getting caught with their pants down, and that weakness will create some great buying opportunities.

Cramer said it may seem illogical that higher employment and falling gas prices are sending the stocks of retailers, restaurants and consumer stocks lower, but that's exactly what's happening as panicking hedge funds are forced to sell their portfolios to cover their losses. That's why on Monday, Cramer will be watching Clean Energy Fuels ( CLNE) to hear about natural gas truck adoption and Markwest Energy ( MWE) for a read on oil and natural gas production in our shale regions. Cramer said Markwest, along with Enterprise Product Partners ( EPD), are buys right here.

On Tuesday, Cramer said Fossil ( FOSL) and Disney ( DIS) will have his attention. He said Fossil is a buy on any weakness and Disney is always a great play on a recovering economy.

Then on Wednesday, retail giant Macy's ( M) will report. Cramer said investors can get great queues on the apparel makers from Macy's. Also on Wednesday, Cisco ( CSCO) reports what Cramer said will be a make or break quarter for the company.

Also on Wednesday, the Chinese SINA ( SINA) reports. Cramer said he was wrong on SINA and would use any strength to ring the register.

For Thursday, Cramer said he likes both Kohl's ( KSS) and Nordstrom ( JWN), two retailers with great track records.

Finally, on Friday, Cramer said all eyes will be on the Michigan consumer sentiment numbers. Keep an eye out for those.

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Executive Decision

In the "Executive Decision" segment, Cramer welcomed back Mark Papa, CEO of EOG Resources ( EOG), an oil driller that just delivered a 14-cent-a-share earnings beat on a 38% year-over-year increase in revenues.

Papa explained that Wall Street still hasn't grasped the magnitude of EOG's Eagleford shale discoveries in Texas. He said that Eagleford is the largest oil find in the lower 48 states in the past 40 years. EOG is investing between $10 billion to $15 billion in developing the Eagleford shale and is seeing 100% returns on that capital.

Papa went on further to say that technology is making all the difference. He said areas that were previously thought unproductive can now be unlocked by the same horizontal drilling techniques that have proved effective with natural gas wells. Papa noted that EOG has drilled 150 wells so far and has enjoyed a 100% success rate. "You'd have to be pretty unlucky to come up dry in the Eagleford," he explained.

Papa also noted that one of the biggest problems EOG faces is a lack of infrastructure to transport the oil out of the Eagleford area. He said with pipelines overwhelmed, the company has resorted to trucks and railcars to as far away as Louisiana to bring their oil to market at the highest possible prices.

Cramer said that rarely do investors get a chance to own such a great oil growth stock at such reduced prices.

Go for Growth

The old investing wisdom says to focus on big, blue-chip companies that you can buy and hold forever. Cramer said there's only one problem with that wisdom ... it stinks! He said as companies age, they stagnate, and Wall Street rewards growth, not stagnation. That's why he likes DuPont ( DD), a company that has reinvented itself from an old-line cyclical stock to a secular growth company that does well in good times and in bad.

Cramer said the DuPont's transformation began in 1998, when the company began selling off its non-core divisions, like oil and gas, pharmaceuticals and textile fibers. But it wasn't until years later when the company was truly streamlined from 23 divisions to just 13, eliminating several layers of management in the process.

The new DuPont is now focused on global mega-trends like increasing food production, saving on energy, boosting safety and concentrating on emerging markets. This new strategy has given the company sustainable performance while mitigating downside risks.

Nearly 30% of DuPont's revenues now come from new products, said Cramer, and the company is growing at nearly 30%. DuPont's genetically altered seed division is now the largest segment of DuPont, accounting for 37% of sales.

DuPont reported a "thing of beauty" quarter of April 21, delivering a 16-cent-a-share earnings beat on an 18% surge in revenue. Cramer said costs were down, margins were up and DuPont even boosted its dividend.

Forget the old-line smokestack stocks, said Cramer, what investors really need is an old company with a new vision and profitable growth for the future. They want DuPont.

Speculation Friday

For "Speculation Friday," Cramer spoke with Tom Ward, chairman and CEO of SandRidge Energy ( SD), a driller that's transforming itself from a natural gas to an oil company in order to take advantage of rising prices. Shares of SandRidge are up 40% since Cramer first recommended it on March 19, 2010.

Ward said that everything is in place to finish the company's transition to solely oil drilling and so far, everything is going according to plan. He said SandRidge is having great success drilling shallow, high-return wells while keeping their costs constant by using conventional drilling rigs rather than the high-demand horizontal rigs that are rising in price every month.

Ward said SandRidge plans to double its rig count from 12 to 24 this year and has several options to self-fund its expansion on the one million acres it currently controls.

Cramer said SandRidge is another great way to play the boom in the oil market, especially now that the speculators are getting flushed out of the market.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said when it comes to precious metals, he's sticking with gold. He said gold is a currency, not a commodity, and its price is simple economics 101. Demand for gold is soaring while production is staying the same, that means prices are going up. Gold is a "must own" for every portfolio, said Cramer.

While much of the talk on Wall Street is all about the fall in silver prices, Cramer said he's keeping his eye on gold.

Lightning Round

In the Lightning Round, Cramer was bullish on Manitowoc ( MTW), Barrick Gold ( ABX), Goldcorp ( GG) and Toyota Motor ( TM).

Cramer was bearish on World Fuel Services ( INT).

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

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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, clickhere .

At the time of publication, Cramer was long Kohl's

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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