NEW YORK ( TheStreet) -- "I'm staying cautious, and you should too," Jim Cramer told his "Mad Money" TV show viewers Friday, as he laid out his game plan for next week's trading. Cramer said that with all stocks seemingly correlated to the S&P 500 average and the woes of Europe, individual company news will continue to not matter. But eventually, he said, what's driving down good stocks will start driving them higher. Cramer said it's still too early to sound the "all clear," but once some of the European worries are solved, the facts will improve. That's why Cramer will be listening to the Best Buy ( BBY) earnings on Tuesday for a read on the health of the consumer. Although, he noted, Best Buy is becoming increasingly irrelevant as customers increasingly choose to shop elsewhere. Also on Tuesday, Cummins ( CMI), a stock which Cramer owns for his charitable trust,
Speculative Oil PlayFor "Speculation Friday," Cramer highlighted Lufkin Industries ( LUFK), makers of the "nodding donkey" style oil pumps so prevalent around the world. Cramer said the idea for Lufkin first surfaced after he visited the Bakken shale region of North Dakota, an area that is in desperate need of more oil pumps. In fact, across the U.S. there are currently 3,500 oil wells that have been drilled, but not yet completed, a number that's not currently priced into Lufkin shares, noted Cramer. Shares of Lufkin are down 34% from their highs, thanks in part to falling oil prices, overall market weakness and a seven-cent-a-share earnings miss when the company last reported. But Cramer said Lufkin's problems are now in the past, and the company sells at just under 12 times earnings despite the company's 14% growth rate. Cramer said Lufkin analysts are pricing in a 7% price increase for this year, but estimates are now forecasting a 15% to 20% price increase thanks to increased demand. Cramer also said that Lufkin makes an attractive takeover target, especially at these levels. Lufkin is still speculative, said Cramer, noted that continued weakness in oil, falling global demand and increased regulations could all continue to weigh on Lufkin shares. But given the huge oil boom in North Dakota and elsewhere in the U.S., Cramer said Lufkin is exactly the kind of smart speculating he's always endorsed on "Mad Money."
Focus on China"Stop obsessing over Europe and start focusing on China," Cramer told viewers, as he said the negative news of the day completely overshadowed great news from China. He said that with falling consumer prices in China, the country may finally be getting a grip on inflation, which means it can stop raising interest rates and slowing demand. So what's that mean for stocks? Cramer said it means great things for Southern Copper ( SCCO), as China currently uses 40% of the world's copper production. Southern Copper also sports a hefty 7% dividend yield. Cramer said that Southern Copper is a pure play on increased construction and the urbanization and industrialization of developing countries around the globe, especially in China. He said while the price of copper has fallen off its highs, it's still a very lucrative game for Southern, which is among the lowest cost producers. Southern Copper is still speculative however, noted Cramer, as the company relies on operations in Peru, which have been historically unstable. However, Cramer said that Peru has committed to a stable mining environment going forward and has vowed not to shut in any projects going forward. Cramer said all of the negatives surrounding Peru are priced into the Southern's stock, but none of the positives. Cramer said that even if China is slow to restart, Southern Copper still makes a worth while investment thanks to its juicy dividend yield.