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

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NEW YORK ( TheStreet) -- "We're in good shape to buy on the dips," Jim Cramer told his "Mad Money" TV show viewers Friday. That is, if the Euro doesn't take another plunge.

Cramer said that although our markets are still linked to Europe, earnings here should matter again barring any catastrophic news from over there.

That's why in his game plan for next week's trading, Cramer said he'll be watching Dollar General ( DG) on Monday. He said if news is good, it's time to buy rival and best of breed Dollar Tree ( DLTR).

For Tuesday, Cramer said AutoZone ( AZ) should deliver strong numbers, but the earnings of home builder Toll Brothers ( TOL) likely won't matter as the stock has already run up ahead of the news. Also on Tuesday, it's an investor day for Lowes ( LOW). Cramer said news should be good, but he still likes Home Depot ( HD).

For Wednesday, Cramer said he'll be watching Yum Brands ( YUM) for news of a possible spin-off of Taco Bell and strong numbers out of China. He'll also be listening in on Parker Hannifin ( PH) for the latest on the oil patch.

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Thursday brings Cramer fav Costco ( COST). Cramer said he's still a fan and would buy on any weakness.

Finally on Friday, embattled propane company Ferrellgas Partners ( FGP) reports. Cramer said he still likes Energy Transfer Partners ( ETP) more. Also on Friday, Edwards Lifesciences ( EW), a stock Cramer said is undervalued.

Value Play

For "Speculation Friday," Cramer featured Comverse Technology ( CMVT), which provides software and services to telco operators.

Cramer explained that Comverse was ensnared in a terrible options-backdating scandal back in 2006, which the company's then CEO fleeing to a foreign country to escape extradition.

Afterwards, the company never recovered and was eventually delisted. But now, Comverse is back and was relished on the Nasdaq in September. Management is currently said to be seeking "strategic options" for the company, code for breaking itself up and selling off the pieces.

That's where the story gets interesting, said Cramer, as Comverse owns a stake in Verint Systems ( VRNT) valued at $747 million or $3.64 a share. Comverse as a whole is valued at only $1.3 billion. The company also has $2 billion of net operation losses that can be carried forward to offset tax bills. This leaves Comverse' remaining business valued at just 81 cents a share.

Cramer said that the sum of Comverse' parts are worth at least a 35% premium to where its trades today. That fact should make the company a prime target for private equity firms, he noted. But even without a takeover or breakup, Cramer said that Comverse' business is improving and the company is trading just 55 cents off its 52-week low, minimizing the downside risk.

Riding High

Rounding out his "Stocking Stuffers" list of companies that are outside of the European contagion. Tonight's recommendation, McDonalds ( MCD), one of the largest restaurant chains in the world, feeding nearly 1% of the world's population every day.

Cramer said that McDonalds is a great company with fantastic management and can survive just about any disaster. The company fared well in the financial crisis of 2008 and so far has been sales gains, not declines in Europe, with sales up 16.6% in Russia and a few percentage points in the UK, France and Germany.

Shares of McDonalds are flirting atar 52-week high after the company boosted its dividend by 15% to a 2.9% yield. The company is also ramping up its international expansion and should have 2,000 locations in China by 2013.

McDonalds is also accelerating store growth in emerging markets around the globe and is re-imaging stores here in the U.S. to include more drive-thru capacity and nice dining rooms. Many stores are also making the jump to 24-hour service, further boosting profits.

There's a lot to like about McDonalds, said Cramer, as the company is adding staff to provide better service, is introducing tons of new items, and will be raising prices across the board to offset rising commodity costs. He said the stock is expensive here at its high, and he would wait for a pullback before buying in.

Case for Drilling

In a special interview, Cramer spoke with Josh Mandel, Ohio's state treasurer who recently came out in favor of oil and gas drilling in the state's Utica shale formation, one of the nation's largest oil and gas discoveries.

Mandel called drilling in the Utica shale a policy that will create jobs, provide affordable energy and bring national security. He said that only Washington is standing in the way.

Asked why Congress does not endorse natural gas, Mandel explained that they're getting pressure from the media and from the fringe extremists, but every citizen needs to get on the phone and have their voice heard. Mandel said that natural gas is an issue that Republicans and Democrats can agree on, since it puts America at a competitive advantage. "People need to call their congressmen and women," said Mandel.

Mandel's final point was that drilling for U.S. natural gas doesn't just create oil and gas jobs. He said it provides an economic boost for restaurants and hotels, truck drivers, construction and hundreds of other professions. It's just what America needs to get back on it's feet.

Lightning Round

Cramer was bullish on Waste Management ( WM), SandRidge Mississippian Trust ( SDT), Salesforce.com ( CRM), Lululemon Athletica ( LULU), Siemens ( SI) and AT&T ( T).

Cramer was bearish on RF Micro Devices ( RFMD), Sprint Nextel ( S) and Green Mountain Coffee Roasters ( GMCR).

Closing Comments

In his "No Huddle Offense" segment, Cramer said that now might be the time to change course on Nordic American Tankers ( NAT), which he's panned in recent months.

Cramer said that recent upgrades of Nordic American's rivals has made him think that the bottom may finally be forming in the tanker group, now that European uncertainties are waning and the global economies are on the mend.

He said that borrowing money to pay its 9.6% dividend yield is still troublesome, but shipping rates can turn on a dime and might be doing so in the very near future.

--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 not long any stock mentioned.

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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