NEW YORK ( TheStreet) --"Europe's leaders actually did something worth while this week," Jim Cramer told his "Mad Money" TV show viewers on Friday. He said with the positive news out of Europe, he's keeping his threat level assessment at DEFCON 3 as he prepares for next week's trading. Cramer said that on Monday he'll be watching the IPOs of Michael Kors and social gaming network Zynga. He said both should be bought, but only on the IPO and not in the open market. After they debut, they should be sold. Cramer said that Zynga may even be strong enough to lift rival Electronic Arts ( ERTS). For Tuesday, Cramer said the Federal Reserve meeting will have his attention, as will the outlook from General Electric ( GE), which now yields 4%. He said that Best Buy ( BBY) also reports, but that stock remains in secular decline and should not be bought. Then on Wednesday, Cramer recommended both Broadcom ( BRCM) and Avnet ( AVT), two stocks with low expectations that should have bottomed. > >> Bull or Bear? Vote in Our Poll Thursday brings a slew of news from market mover FedEx ( FDX), along with Pier 1 Imports ( PIR), Accenture ( ACN), Honeywell ( HON), Research In Motion ( RIMM) and Adobe ( ADBE). Cramer was bullish on Pier 1, Accenture and Honeywell, but said that it's too early for new products from Adobe to matter and Research In Motion remains a weak hold at best. Finally for Friday, Cramer said Darden Restaurants ( DRI) reports, and while the company has a great dividend yield, management appears to have lost its way and needs to outline a serious turnaround plan.
Financial Fears Ease"Today's European summit did accomplish something good," Cramer told viewers as he opined on today's Euro-news. He said that what the markets have been fearing most -- a Lehman-esque banking collapse in one of the European nations -- has finally been taken off the table, at least for now. Cramer said that while today's news doesn't bring any new buyers into the sovereignn debt market, it does limit the selling, giving banks a chance to catch their breath and work towards further resolutions. He said that the U.S., and indeed the world, will be dealing with Europe's debt problems for years and years to come, but at least for now, the bankers and governments are on the same side and the banks will be protected, which is good news for all. What does all of this mean for U.S. stocks? Cramer said it means that U.S. investors are willing to pay higher multiples for companies with good earnings, which is exactly why shares of companies with good earnings rallies on today's news.
Speculative Healthcare PlayFor his "Speculation Friday" segment, Cramer highlighted SXC Health Solutions ( SXCI) a pharmacy benefit manager that's actually two companies in one with great growth prospects. Cramer explained that SXC began as a healthcare technology company that sold software to pharmacy benefit managers. Then four year ago, the company acquired one of its customers, the first in a series of similar transactions that has vaulted the benefit management side of the company's business to 90% of its sales. Cramer said that the SXC's software now acts like a trojan horse, for once a benefit manager has the software installed, it's likely to transfer patients to SXC's in-house platform or be acquired outright. That's why the company forecasts 30% revenue growth in 2012. Like all pharmacy benefit managers, Cramer said SXC benefits from the wave of drugs coming off-patent in the coming years and overall as more and more health providers begin using benefit managers like SXC. So why is the company speculative? Cramer explained that one of SXC's largest customers, which accounts for 39% of sales, is being acquired and might ultimate leave the company. Such a move would be a big blow to SXC, said Cramer, but the possibility also exists that the acquirer may convert its entire system to the SXC platform. Shares of SXC trade at 24 times earnings with a 20% long-term growth rate. The stock is currently nine points off its 52-week high, and Cramer said investors should use caution when buying in.