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

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NEW YORK ( TheStreet) -- "All eyes will be on Europe," Jim Cramer told his "Mad Money" TV show viewers on Friday, as he laid out his game plan for next week.

Cramer said any bailout plan worth more than $1 trillion and the markets will be soaring. Beyond that, Cramer said there is a slew of earnings news to watch out for.

For Monday, Cramer was bullish on Caterpillar ( CAT), Kimberly-Clark ( KMB) and VF Corp ( VFC), along with Eaton ( ETN), a stock which he owns for his charitable trust, Action Alerts PLUS . He said that even Netflix ( NFLX) might pop if the subscriber exodus is less than expected.

On Tuesday, Cramer said to buy 3M ( MMM) on any weakness. He was also bullish on Cummins ( CMI) and UPS ( UPS), two more Action Alerts PLUS names, along with DuPont ( DD).

Wednesday brings earnings from Ford ( F), a stock that's on the move with the possibility of a labor strike gone, along with troubled gold miners Agnico-Eagle Mines ( AEM) and Goldcorp ( GG). Cramer said he prefers the SPDR Gold Shares ( GLD).

For Thursday, Cramer was bullish on Bristol Meyers-Squibb ( BMY), Celgene ( CELG), International Paper ( IP), Waste Management ( WM), Procter & Gamble ( PG), Deckers Outdoor ( DECK) and Electronic Arts ( ERTS), with Avon Products ( AVP) being the sole negative call in the group.

Finally, for Friday, Cramer was bullish on two Action Alerts PLUS names, Chevron ( CVX) and Weyerhaeuser ( WY), two stocks he'd buy on any weakness.

Squeezed Consumer Play

" You don't make new high list for just showing up," Cramer reminded viewers, "you need to earn it." That's why he's bullish on Ross Stores ( ROST), the nation's second largest off-price retailer and one that's been on the 52-week high list for weeks.

Cramer said that Ross is a play on the squeezed consumer and the ever budget-conscious middle class, as Ross sells department store merchandise at discounts between 20% to 60%. He said this segment is one of the best performing parts of retail and is driven by great sourcing and finding terrific products at great prices.

But Ross is more than just a store in a great segment, the company is also executing on all cylinders, as the company last updated, with a 5% bump up in same-store sales and a 7% reduction in inventory values. Ross also raised guidance from between $1 to $1.04 a share all the way to between $1.16 to $1.18 a share. Cramer said this company has been on top of everything about their business.

Ross also has a lot of room to expand, said Cramer, with the company only having 1,013 Ross stores and another 88 in its up-and-coming Didi's chain. Ross slowed its growth during the recession, but is turning up its plans going forward.

With the stock up 39% year to date, Cramer suggested waiting for a 5%- to-8% pullback before jumping in. "Don't chase it," he told viewers, even if shares are trading at just 13.8 times earnings with a 13% growth rate.

Winning Formula

In the "Executive Decision" segment, Cramer spoke with Monty Moran, co-CEO of Chipotle Mexican Grill ( CMG), whose shares are up $25, or 8.3%, today as it reported a six-cents-a-share earnings beat on a 24% boost in revenues and same-store sales up a stunning 11.3%.

While Chipotle was delivering on so many metrics, Cramer said that the analysts have all been focused on one, food costs. Moran said that food costs are one thing the company can't control, but it's also something that effects everyone equally. What they can control, however, is hiring the best people and exposing them to a great culture and delivering a great customer experience, something the company does extremely well.

Moran explained that nearly 97% of all Chipotle managers were initially crew members, and the company now pays a $10,000 bonus to any manager that helps cultivate a crew member into becoming a manager. The result? The hiring of a phenomenal staff.

Moran also expanding on Chipotle's "food with integrity" concept, which emphasizes only the best raw ingredients as well as sustainability, animal welfare and health and wellness. "We spend more on food as a percentage than any other restaurant," he said, and when the customers taste the difference, they come back for more.

When asked about breaking the mold when it comes to food selection and spices, Moran said that Chipotle offers only a small menu, but customizes it to customers' tastes. That said, the company is not afraid to spice things up, as it's done in their Shophouse Asian concept. "We haven't decreased the spices at Chipotle in 18 years," said Moran, and people have come to love it.

Even trading at 38 times earnings, Cramer said he's not worried about this company's share price. "This kind of greatness can last for years and years," he concluded.

Mad Mail

Cramer followed up on Empire District Electric ( EDE), a company that stumped him in an earlier show. He said that initially, the company suspending its dividend for 2012 was a red flag, but then he noted that this was only the case because Empire District is rebuilding after a devastating tornado leveled Joplin, Mo. Once the company reinstates its dividend, it will yield 5%, which makes it a winner.

When asked whether Goodyear Tire ( GT) or Cooper Tire ( CTB) was the better tire company, Cramer said that after the airlines, tires were his least favorite business and would stay away from both.

Finally, when asked whether Research in Motion ( RIMM) could recover from its recent outages, Cramer said he only sees pain ahead for this struggling smartphone maker.

Lightning Round

Cramer was bullish on VF Corp ( VFC), Jones Group ( JNY), Westport Innovations ( WPRT), EOG Resources ( EOG) and Nucor ( NUE).

He was bearish on Aeropostale ( ARO), LinkedIn ( LNKD), Tesla Motors ( TSLA), Cimarex Energy ( XEC) and Timken ( TKR).

Closing Comments

In his "No Huddle Offense" segment, Cramer opined on the bears' thesis that any outcome in Europe has to be catastrophic, and that there isn't enough money in the world to bail out the European banks and the countries of Europe won't sacrifice their credit ratings in order to get the job done.

Cramer reminded viewers that in the wake of our 2008 financial crisis, the U.S. was left with a banking system that was a whole lot stronger than it was before. More importantly, Cramer said that Europe has learned from history that unrest breeds uprisings and dictators, which are far more costly than credit downgrades. "The markets are more resilient than you think," 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 Eaton, Cummins, UPS, Chevron, WY.

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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