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

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NEW YORK ( TheStreet) -- "Someday I promise to have a game plan that doesn't start with Europe," Jim Cramer told his "Mad Money" TV show viewers on Friday.

But next week won't be that week, he continued, as Europe remains in control.

Cramer said that his game plan starts on Sunday with Spanish elections. He said the response to those elections will set the tone for the rest of the week's trading.

On Monday, Cramer said he expects disappointing words from Hewlett-Packard ( HPQ) and doesn't expect that company to have anything positive to say. Another company of little interest, Tech Data ( TECD), a company not worth owning, but one worth listening to for their read on tech.

For Tuesday, Cramer said that DSW ( DSW) might be worth buying ahead of their quarter, as rivals Foot Locker ( FL) and Deckers Outdoor ( DECK) both reported positive earnings. Also on Tuesday, Pandora ( P), a stock that Cramer said is not for him.

John Deere ( DE), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , tops the list for Wednesday. Cramer said this company often has a gloomy conference call, and that weakness is an opportunity to buy.

Also on Wednesday, the deadline looms for our hopelessly deadlocked congressional super committee. Cramer said that no one has any hope a deal will be reached, so maybe their results won't be so disappointing after all.

Cramer also reminded viewers that since Europe will not be taking a holiday on Thursday, our markets could be impacted when they return for a shortened session on Friday.

Oil Shale Play Prevails

Closing out his "Stock Supermarket" series, Cramer examined energy producers Green Plains Renewable ( GPRE) vs. EOG Resources ( EOG) to see which company is the true bargain.

On the surface, investors may opt for Green Plains which trades at 6.3 times earnings. EOG trades for 22 times earnings. But using the PEG Ratio, which divides a company's multiple by its growth rate, Cramer said investors will get a different story. Green Plains has a PEG ratio of one, he said, which is good. But EOG has a PEG ratio of .3, which is a whole lot better.

Cramer explained that EOG is an oil and gas producer with fantastic acreage in our nation's oil shale fields, primarily the Eagleford shale. He said the company is the top producer in Eagleford and its Eagleford assets are worth more than the entire company is presently valued. EOG grew production by 49% year over year and has plans to spend 90% of its capital expenditures next year finding the more lucrative oil and gas liquids vs. just natural gas alone.

Green Plains is a decent, well run producer of ethanol, said Cramer, but ethanol is problematic. First, it doesn't have a lot of growth. It also suffers as the price of corn, the primary ingredient in ethanol, rises. Cramer said that Green Plains is more like a refiner than a producer in that regard. Finally, Cramer said that Green Plains relies on government subsidies set to expire at the end of this year. The prospect of that subsidy being cut or eliminated are pretty high, Cramer explained.

That's why EOG is the better play, said Cramer. That company's super high growth rate makes its future earnings all the more valuable.

Telltale 10 Days Ahead

In the "Executive Decision" segment, Cramer went on location with Jim Sinegal, co-founder and CEO of Costco ( COST), a stock that's delivered a 4,793% gain since the company went public in 1985.

Sinegal said that the next 10 days will tell the tale for retail this holiday season. He remains optimistic, but noted that Costco competes with everyone, including online and offline retailers and even grocery stores. Sinegal said that he expects home entertainment, including LCD and LED TVs to be hot sellers again this year.

When asked how recent price increases were received amongst Costco's 64 million members, Sinegal said that the increases were received well and that Costco is already hard at work using that money to bring even better value to its stores. Speaking of stores, Sinegal said that Costco has always underestimated its market potential, noting that in the Los Angeles market alone the company could add another 20 locations.

When asked about his legacy as a retailer, the soon-to-be-retiring Sinegal said that he's most proud of the team that he's built. He said it takes skill to run a company of Costco's size and he's built an excellent team of smart people. When asked the same question, many of Sinegal's employees noted that affordable health care for all employees should be Sinegal's most important accomplishment.

On that topic, Sinegal said that Costco wants to keep great employees, and the company has a duty to provide good wages. He said that healthcare is a necessity, even for a low-cost leader like Costco.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included Chevron ( CVX), McDonald's ( MCD), Caterpillar ( CAT), Kimberly-Clark ( KMB) and Teva Pharmaceuticals ( TEVA).

Cramer said "Hallelujah" to this collection of stocks.

The second caller's top holdings included Papa John's ( PZZA), Walmart ( WMT), General Mills ( GIS), Dow Chemical ( DOW) and Utilities Select SPDR ( XLU) as their top five stocks.

Cramer also blessed this portfolio as diversifi

The third caller's top stocks were Oracle ( ORCL), TDAmeritrade ( AMTD), SPDR Gold Shares ( GLD), Transocean ( RIG) and EZCorp ( EZPW).

Cramer was bullish on this portfolio as well.

Lightning Round

Cramer was bullish on Oracle ( ORCL), Amarin ( AMRN) and Sanofi-Aventis ( SNY).

Cramer was bearish on Computer Associates ( CA), McDermott International ( MDR) and IntraLinks Holdings ( IL).

Concluding Remarks

In his "No Huddle Offense" segment, Cramer handicapped the likelihood on a European bailout. He said that there's only a 60% chance of a bailout at this point, but all of the options are hard to swallow.

Cramer said that the Europeans could print euros to buy bad bonds and take them out of circulation, they could continue the status quo and rescue only as much as needed, or the can simply let the countries and banks fend for themselves, which will most certainly lead to deep recessions.

Given that any of these options could still happen, Cramer said investors still can't own any banks stocks and need to hide in high-yielding dividend names. He said even those will fall on the whims of Europe, but they'll at least be the first to bounce back.

--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 Deere.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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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