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

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NEW YORK ( TheStreet) -- "Be careful not to overstay your welcome," Jim Cramer told his "Mad Money" TV show viewers on Friday.

He said without the hint of a European interest rate cut or more details on a plan for Greece, the markets are likely to get hammered again. It's time to get a little more cautious, Cramer said, as he laid out his Friday game plan for next week's trading.

On Tuesday, Cramer said he'll be watching the nightmare that's become Alcoa ( AA), a stock whose estimates have become so low the company might just be able to meet them.

For Thursday, it's Pepsico ( PEP) that will have Cramer's ear. With worldwide growth and a 3.5% yield, Cramer said "I want in." The same did not hold true for Safeway ( SWY), which reports Thursday. Cramer said this grocer is under attack from all fronts.

Also on Thursday, JPMorgan Chase ( JPM), a bank that needs to say something positive, like a dividend boost, to help it's ailing shares. Then there's Google ( GOOG) a company under scrutiny for out of control spending and a loss of mindshare when compared to Facebook.

Finally for Friday, Cramer said toymaker Mattel ( MAT) might have some positive things to say about the holiday season. This one might make an interesting spec, he said.

In other news, Cramer noted an investment survey hitting the street on Wednesday. He said any uptick in bearish sentiment will be good news, as it will imply there are fewer people left to sell.

Moving Up

For "Speculation Friday," Cramer highlighted Ulta Salon ( ULTA) a discount beauty retailer that's made the transition to a high-end experiential beauty destination.

Cramer said that Ulta stores are full-service salons, offering hair, nails, perfume, cosmetics and more. The company have been delivering spectacular earnings with growth nearing 90%. The beauty market is $96 billion in the U.S. Ulta operated 415 stores, but estimates the U.S. market could support up to 1,000 locations.

Ulta last reported a six-cent-a-share earnings beat on a 22% jump in revenues. The company also saw same-store sale growth of 11.3% and a 1% decline in inventory. The stock has a history of popping on its earnings releases, which will come again in early Dec.

So why is Ulta speculative? Cramer said its because of its valuation. Ulta trades at 30 times earnings, but only has a 24% growth rate. The company does that $3 per share in cash however and will have no debt by year's end.

Restructuring Push

Closing out his "Paid To Wait" series of high-yielding dividend stocks, Cramer dove into the stock of ConocoPhillips ( COP), a 4.1% yielder that's taking control of its own destiny with massive restructuring efforts.

Cramer said Conoco has a lot of parts in motion, the first of which is a commitment to sell billions of non-core assets and focus on its exploration and production efforts. The company also has a sizable stock buyback program in place. Cramer said that normally he's not a fan of buyback programs, but in this case, the program is reducing the shares outstanding by 24%, a meaningful amount.

Taking its restructuring one step further, Conoco is also splitting itself into two companies, spinning off it's downstream refining and marketing business and keeping its exploration and production completely separate. Cramer said this is one case where the sum is worth less than its parts, and he expects Conoco to unlock a lot of value with the split, which follows in the footsteps of Marathon Oil ( MRO).

Cramer said he's also confident that Conoco will remain committed to its dividend, raising it even further as the company's coffers fill with cash from its asset sales and streamlined operations. Add that to the prospects of a growing global economy and ConocoPhillips is a winner, said Cramer.

Mad Mail

Cramer followed up on Reach Local ( RLOC), a stock that stumped him earlier in the week. Cramer said despite the stock's fall from $28 to $10 a share, the company has no catalyst.

Also on the "stumped" list was Armour Residential ( ARR), a REIT with a 20% yield. Cramer said he likes Annaly Capital ( NLY) and would stay away from the leveraged Armour. Next up, Telecom Corp of New Zealand ( NZT), another risky stock that Cramer said to avoid.

Cramer was a fan of Ultra Petroleum ( UPL) and told a viewer to remain patient. He also recommended John Deere ( DE), a stock which he owns for his charitable trust, Action Alerts PLUS, as a way to play the inconsistent agriculture market.

When asked about buying a real estate investment trust, or REIT, to take advantage of low real estate prices, Cramer advised buying real estate itself and taking advantage of low mortgage rates. Cramer also recommended DominionResources ( D) as a great utility play and Randgold Resources ( GOLD) as a better bet than investing in silver.

Lightning Round

Cramer was bullish on Alpha Natural Resources ( ANR), Westar Energy ( WR), Public Service Enterprise ( PEG), FirstEnergy ( FE), Polypore ( PPO) and Energy Transfer Partners ( ETP).

Cramer was bearish on Tesla Motors ( TSLA), Citigroup ( C) and PerkinElmer ( PKI).

Closing Comments

In his "No Huddle Offense" segment, Cramer sounded off against Dollar Tree's ( DLTR) decision to buy back $1.5 billion of its own stock. "Why buy it up here?" asked Cramer, referring to the stock's 38% gain. "Why not wait and be more opportunistic," he asked?

More importantly, Cramer once again sounded off against buybacks as a bad use of cash. He said Dollar Tree would be better off building more locations or offering a dividend, which rewards existing shareholders and builds loyalty. "Buybacks don't build loyalty," he concluded.

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

To contact the writer of this article, click here: Scott Rutt.

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At the time of publication, Cramer was long John Deere.

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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