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

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NEW YORK ( TheStreet) -- "Next week is the most important week of the year," Jim Cramer told the viewers of his "Mad Money"TV show Friday, as a slew of earnings reports will give investors a fresh read on the markets.

Cramer said the markets will of course be focused on any glimmers of a plan to bail out Europe, but that doesn't mean his game plan isn't also full of earnings news.

For Monday, Cramer said the banking trio of Citigroup ( C), First Horizon ( FHN) and Wells Fargo ( WFC) reports, along with oil service giant Halliburton ( HAL).

Cramer said Citigroup is fraught with problems, while regional First Horizon is well run. Meanwhile Wells Fargo, a regional with growth, is a hybrid between the two. Cramer said the action among these three will give insight into whether any are investable. Halliburton, he said, will set the tone for the oil service group.

On Tuesday, its Bank of America ( BAC), Coca-Cola ( KO), EMC ( EMC) and Apple ( AAPL) reporting, all stocks which Cramer owns for his charitable trust, Action Alerts PLUS. Cramer was bullish on all but Bank of America.

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Wednesday brings Morgan Stanley ( MS), PNC Financial ( PNC) and United Technologies ( UTX), along with US Bancorp ( USB) and American Express ( AXP), two more Action Alerts PLUS names. Cramer was upbeat on Morgan Stanley, US Bancorp and United Technologies, but said to be careful with PNC and American Express.

Thursday's earnings include Nucor ( NUE), Phillip Morris International ( PM), PPG ( PPG), Union Pacific ( UNP) and Chipotle Mexican Grill ( CMG). Cramer was also bullish on this cohort of companies that spans multiple industries.

Finally, for Friday Cramer said Honeywell ( HON), Schlumberger ( SLB) and Verizon ( VZ) are also great trades ahead of earnings. Schlumberger is also part of Action Alerts PLUS.

Critical Conference Call

Pay attention to Ingersol Rand's ( IR) conference call next Thursday, Cramer told viewers, as he laid out a script for what this ailing industrial conglomerate needs to do to turn itself around.

Cramer explained that Ingersol has become a serial disappointer, missed earnings for three quarters in a row. Cramer said the company needs to take a cue from Alcoa ( AA) on its conference call and do the exact opposite of what it has done. Specifically, Cramer said Ingersol needs to correct the guidance to where it can easily be beaten. He said the company also needs to explain why it missed its previous quarters and it needs to explain what it will change going forward.

Cramer said that Ingersol needs to be willing to break itself up if value can not be created as an integrated company and this maker of everything from residential and commercial HVAC systems to golf carts and security systems needs to get its act together quickly.

On the upcoming conference call, Cramer suggested the company show some humility and take ownership for its failures. He said the company must lower the bar so it can under promise and over deliver. Aggressive cost cutting must take place to stabilize the construction-oriented divisions and the portfolio of products must be expanded to make up for overall weakness.

And finally, Cramer said the company must talk more about growth in emerging markets. Only then, he said, will this lumbering giant become investable again.

Back in the Running

Cramer said he's changing his tune on Adobe ( ADBE), the software maker that was all but left for dead after its fight with Apple over whether its popular Flash media player could run on the iPhone and iPad.

Cramer said that after losing the Flash was with Apple, Adobe became a cheap stock, trading at just 10 times earnings with a 12% growth rate, but it lacked a catalyst, a reason for owning it. But that's all changing now that Adobe is embracing HTML5, the next version of programming on the Web.

Cramer explained that HTML5 allows Webpages to run like applications that you would download from an app store. Using the new standards, things like audio, video and animations can run right in the browser, without the need for plug-ins like Flash. Given that Adobe's Flash had the lion's share of the plug-in market, it's understandable that the company chose initially to defend its turf.

But now Adobe is embracing HTML5 and will include new development tools for it with the next version of its Creative Suite software. Cramer said the software, set to debut in late 2011 or early 2012, will be huge for the company and is the catalyst he's been waiting for. "2012 will be a big year for Adobe," he said.

Also running in Adobe's favor are its smart acquisitions of the Omniture real-time analytics platform and several mobile development acquisitions. Cramer said all of this combined will not yield immediate results for Adobe, but it does put the company back in the running.

Mad Mail

Cramer followed up on Piedmont Office ( PDM) a REIT with a 6.7% yield. He said this company's dividend is a red flag, given that management warned of a possible cut. Cramer recommended Enterprise Product Partners ( EPD) with its recently boosted 5.7% yield.

When asked about ExpressScripts ( ESRX), an Action Alerts PLUS name, Cramer said now is not the time to sell and he would hold onto the stock.

Cramer was also bullish when asked about Polypore ( PPO) and PPG ( PPG). Both companies, he said, are buys.

Lightning Round

Cramer was bullish on Corning ( GLW), Coca-Cola ( KO), United Parcel Service ( UPS), Sanofi-Aventis ( SNY) and EMC ( EMC).

He was bearish on American Express ( AXP), Dendreon ( DNDN), Xerox ( XRX), UnitedHealth Group ( UNH) and Patriot Coal ( PCX).

Closing Comments

In his "No Huddle Offense" segment, Cramer opined on the Occupy Wall Street movement. Cramer said he's definitely in favor of prosecuting those responsible for the financial crisis, including the bad lenders, the robo-signers, the ratings agencies and the executives with big bonuses after TARP. So far, there's been little to no justice in this regard. Cramer said he's also in favor of the rich paying more in taxes.

But neither of these issues seems to be the focus of Occupy Wall Street. Cramer said what the movement is looking for is change, and that comes from Washington, not Wall Street. He said Washington can work harder to create meaningful jobs and they're the ones that can fight with trading partners for a level playing field. "It's not Wall Street's fault we're in this mess," Cramer concluded, the problem is in Washington.

--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 Apple, American Express, US Bancorp and ExpressScripts.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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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