NEW YORK ( TheStreet) -- Jim Cramer expects good things to happen in next week's trading. He told his "Mad Money" TV show viewers Friday that they should be patient and stay constructive, using market declines to buy in and not bail out of stocks. Cramer said while his game plan for next week's trading hinges on Friday's latest labor report, there are still a few interesting stocks to watch out for. On Monday, Cramer said he'll be listening to Arcos Dorados ( ARCO) for a read on whether the stalled McDonald's ( MCD) might be worth buying soon. He'll also be listening to the ConocoPhillips ( COP) investor update. Cramer said this stock, which he owns for his charitable trust,
Huge Short InterestSome stocks just cannot be owned no matter how hot the sector it's in, Cramer told viewers. Such is the case with women's handbag and accessory maker Vera Bradley ( VRA). Cramer said while there's a huge bull market in women's accessories, Vera simply doesn't measure up to some higher-end rivals like Michael Kors ( KORS) or Coach ( COH). Cramer explained that the stock of Vera Bradley has become a battleground. On the one hand, the company excels in store growth, as it plans to expand its store count by 29% this year. But on the other hand, the company has been falling short in same-store sales growth, which trails that of Kors or Coach. But Cramer said the real problem with Vera is not with the company itself, but rather with its shareholders. He said of the company's 19-million share float, a colossal 10.9 million of those shares are sold short. With so many investors betting against Vera, Cramer said the company's fundamentals no longer matter. What matters now is how much pain or gain can that mountain of short-sellers take. "That's something I can't determine," admitted Cramer. At issue for the shorts is the fact that Vera introduces three to four new styles every quarter, meaning the company is forced to discount any unsold inventory from the previous quarter, sometimes heavily. Cramer said with Vera shares trading at 22 times earnings, matching that of its growth rate, owning the stock is simply not worth the risk. Cramer advised picking up some Coach instead, as that stock trades for roughly the same price.
Much More Than GPSFor today's installment of his "What The Heck" segment, Cramer turned to the curious case of GPS-maker Garmin ( GRMN), which has rallied 44% over the past five months, despite many investors feeling that stand-alone GPS units are a thing of the past with so many smartphones now including the technology. Upon closer examination, Cramer discovered that it's the bears who are wrong about Garmin, as the company long-ago diversified away from its cash-cow automotive GPS business into several fast-growing, lucrative markets. He said that Garmin's 31-cent-a-share earnings beat last month was not a fluke, but a harbinger of things to come. it turns out that Garmin derives half of its revenues, and 75% of its operating profits, from segments outside of automotive. The company's fitness segment, which makes watches and devices for runners and bikers, saw sales up 17% last quarter, and the company expects 20% growth for the group in 2012. Additionally, Garmin's division handling marine and aviation applications are also seeing strong growth. The company even has dog training and tracking devices. Cramer said that GPS's for your car are in Garmin's past, not its future. The company has a hefty $12.79 a share of cash on its books and trades at a scant 12 times earnings with a 12% growth rate. Cramer also noted the company's 3.4% yield as an added bonus. "This is one rally that makes sense," Cramer concluded.