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

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NEW YORK ( TheStreet) -- "Things are better; that will be the take away from next week's earnings," Jim Cramer told his "Mad Money" TV show viewers on Friday, as he laid out his game plan for next week's trading.

Cramer said that on Monday, he'll be watching Halliburton ( HAL) and Texas Instruments ( TXN) for their latest earnings. He said that Halliburton will likely disappoint, as it's levered to natural gas, but Texas Instruments has become a darling and should do well.

For Tuesday, DuPont ( DD), Kimberly-Clark ( KMB), McDonald's ( MCD) and Apple ( AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , take center stage. Cramer expects good things from DuPont and Kimberly, but said McDonald's could sell off after its earnings release. Apple, he said, will likely blow away its already inflated estimates.

Wednesday brings Conoco-Phillips ( COP), Abbott Labs ( ABT), Boeing ( BA) and Occidential Petroleum ( OXY). Cramer was bullish on all four names.

Then on Thursday, Cramer said that Caterpillar ( CAT), 3M ( MMM), Nucor Steel ( NUE) and Starbucks ( SBUX) will be reporting. He was equally bullish on this group of stocks as well.

Finally on Friday, Cramer said Honeywell ( HON) will report the consistent earnings he's come to expect from that great company. However he's in "listen-only" mode regarding Altria ( MO) and Procter & Gamble ( PG).

Regarding the Federal Reserve meeting on Wednesday, Cramer said he welcomes interest rate hikes, as that would mean the economy is stronger than anyone realizes.

Production Ramps Up

In an exclusive "Executive Decision" segment, Cramer spoke with Andrew Gould, chairman of Schlumberger ( SLB), the oil service giant that just posted great earnings and a 10% dividend boost.

When asked about the overall state of the oil industry, Gould said that 2011 was a great year for exploration successes and when it comes to 2012, this will be the year that production at those new discoveries begins to ramp up. He said that in the U.S., the diversion of oil and natural gas prices has never been greater, but that does not apply to the rest of the world.

In what he described as a turn in fortune form the last few years, Gould explained that successes in finding new oil, especially offshore all over the world, has been staggering. "Those finds will come," he continued.

When asked about hydraulic fracturing here in the U.S., Gould painted an upbeat picture, saying that the theme is "do more with less." He said that new technologies will allow for less fracturing with cleaner fluids and less water, resulting in the same outputs with far less environmental concerns. We'll only be fracturing the "sweet spots," he continued.

Cramer remained bullish on Schlumberger, saying that the price of oil is poised to remain high for the foreseeable future and increased drilling activity worldwide is great news for the company.

Diversification Key

For the last of his "Tune Up" auto stocks, Cramer highlighted American Axel & Manufacturing ( AXL), a speculative $11 stock that Cramer said was cheap and moving in the right direction.

American Axel manufactures drive train parts and systems for cars and light trucks and has a $1.1 billion backlog of business. Cramer said this gives the company not only great visibility but t also has only 4% of its sales vulnerable to the ailing European markets. The stock is up 14% for the year, but Cramer noted that shares are still down 23.7% over the past 12 months and off 63% from its 2007 highs.

With a multiple of 5.6 times earnings and a 16% growth rate, Cramer said there's no doubt that American Axel is a cheap stock, but why is it a speculative stock? Lack of diversification.

Cramer explained that nearly 70% of American Axel's sales come from a single customer, General Motors ( GM). In addition, 81% of sales come from a single segment of the auto market, light trucks.

On the plus side however, the company has a plan to diversify its business both away from GM and away from light trucks. The plan calls for GM sales to account for only 60% of sales this year and head lower from there.

Cramer also noted that American Axel is also diversifying geographically as well, expanding into high-growth areas like China and Thailand. Put that all together, and Cramer said he sees a cheap stock with a lot of potential as auto sales in the U.S. continue to expand.

Hard Work Pays Off

In a second "Executive Decision" segment, Cramer spoke with Bryan Jordan, chairman, president and CEO of First Horizon National ( FHN), which Cramer called a terrific regional bank. Its stock is up 13% for the year.

Jordan said that First Horizon has worked hard over the past four years to refocus its efforts on its core banking and capital markets business. He said the bank is also controlling its costs as it continues to scale out of its national mortgage business which ceased operating in 2008. Overall, Jordan noted, 2011 was a strong year for First Horizon and he feels confident about the progress it has made.

When asked for more information on the costs associated with mortgages that ended in 2008, Jordan explained that the bank remains on the hook if there are any problems with the mortgages it wrote, even years later. He said those mortgages continue to be a problem, to the tune of $160 million in 2011, but the trends are improving as time marches forward.

Finally, when asked what would spur more lending activity, Jordan said that a continued recovery in the economy along with improvements in unemployment would certainly do the trick.

Cramer said that First Horizon is a bank that's doing everything right, and he predicted the stock moves 20% higher in 2012 as a result of their efforts.

Lightning Round

Cramer was bullish on Freeport-McMoRan ( FCX), American Express ( AXP), American Tower ( AMT), Trimble Navigation ( TRMB) and Garmin ( GRMN).

Cramer was bearish on Alcoa ( AA), Ctrip.com International ( CTRP) and Sprint Nextel ( S).

Tech Rebound

In his "No Huddle Offense" segment, Cramer opined on three tech stocks that were once left for dead, but now appear to be springing back to life. He said that Intel ( INTC), Microsoft ( MSFT) and IBM ( IBM) all rallied today, each for their own reasons.

Cramer said that Intel reported killer margins and is making believers out of investors who once downplayed the company's post-PC future. Microsoft, he said, is reinventing itself with Xbox and could go higher as the company gets its mojo back. Meanwhile, IBM has become a consistent delivery machine on the earnings front.

All three, said Cramer, go higher.

--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.

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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