Cramer's 'Mad Money' Recap: Next Week's Game Plan

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NEW YORK ( TheStreet) -- After a terrific two-day rally on Wall Street, what should investors be looking forward to next week?

Jim Cramer told "Mad Money" viewers that he's hoping for more easing of interest rates from China and more clarity from Europe, along with a slew of earnings news.

On Monday, Cramer said he'll be watching Anadarko Petroleum ( APC), Cirrus Logic ( CRUS) and Masco ( MAS). He said that Anadarko should signal that natural gas has bottomed while Cirrus Logic may signal what lies ahead for Apple ( AAPL), a stock he owns for his charitable trust, Action Alerts PLUS . He called Masco one of the few bright spots in the investing universe now that housing is strengthening.

Tuesday brings high-end luxury retailer Coach ( COH) along with drug maker Pfizer ( PFE). Coach will likely be troubled, said Cramer, and he hopes that Pfizer announces moves to bring out value in that troubled stock.

Then on Wednesday it's Allergan ( AGN), Avon Products ( AVP) and Time Warner ( TWX). Cramer was bullish on Time Warner and told investors to buy into Allergan ahead of earnings. As for Avon, Cramer said it's not enough that Andrea Jung resigned as CEO, she must also resign from Avon's board as well.

For Thursday, Jim Beam ( BEAM), Chart Industries ( GTLS) and Clorox ( CLX) will step up to the plate. Cramer was bullish on Beam and Chart Industries but said Clorox, another Action Alerts PLUS name, needs growth to stay in his good graces.

Finally, on Friday the troubled Procter & Gamble ( PG) reports. Cramer said this company must show investors how it plans to regain market share and turn itself around.

All of these earnings won't matter much if there is negative news from the Federal Reserve on Wednesday, trouble at the European Central Bank on Thursday or the U.S. posts a worse-than-expected jobs number on Friday. He told investors to trim their high-flying stocks on Thursday just in case.

Behind the Headlines

"Look behind the headlines," Cramer commanded viewers, as he explored three high-profile companies that reported yesterday. Those companies were Amazon.com ( AMZN), Starbucks ( SBUX) and Facebook ( FB), stocks Wall Street loves, dislikes and absolutely hates.

Cramer said the headlines surrounding Amazon's earnings sounded a wholesale retreat for the ecommerce giant, but in reality Amazon's problem is simply too much demand.

He said the company is investing heavily in new warehouses to deliver more goods faster, ultimately making customers even happier. Meanwhile, it's expanding gross margins by 8%. What's not to love?

Starbucks also reported a strong number with same-store sales up 7%. But the headlines only focused on a decline in sales that started in June and continued into early July.

Cramer said the company seems to have hit a wall, which is worrisome, but even on the company's conference call things seemed to already be getting out of hand, with analysts panicking. Cramer said he's taking more of a wait-and-see approach to Starbucks.

Finally, there's Facebook. Cramer said Facebook's first conference call was "just plain weird," more of an infomercial for itself rather than an update on how the company is doing. He said it's clear that Facebook needs a sales force to sell it's good and cannot rely on a self-service approach for advertisers like Google ( GOOG). The company was overvalued at its IPO, he said, and remains overvalued today.

Facebook may know its users, Cramer concluded, but they're still amateurs at making money.

Speculation Friday

For "Speculation Friday" Cramer highlighted a company he teased on Thursday, a company that's approaching a key stock level that investors afford to miss. That company is Sprint Nextel ( S) and the key level is $5 a share.

Cramer said that normally when a stock has had a big run like Sprint just had, he'd be recommending investors take profits. But in the case of Sprint, now just 70 cents away from $5 a share, investors need to keep on buying. Why? Because $5 a share is a key level where big institutional investors are allowed to buy in and when there are more buyers, stocks go higher.

There are three things Sprint is doing right, said Cramer. First, the company finally inked a deal to carry the iPhone, which 1.5 million customers bought last quarter, 40% of them new to Sprint.

Second, the company is the only carrier to offer unlimited data plans, the "hook that catches fish," as Cramer called it.

Finally, Sprint is shuttering its legacy Nextel network by mid-2013, relieving it of a huge burden and freeing up spectrum for other uses.

Cramer said the wireless business is fantastic and Sprint's problem has been the troubled merger with Nextel and not having the iPhone. But with those problems solved, Sprint is finally "playing in the same league" as its much larger rivals and is putting up the numbers to prove it.

Sprint now has sizable cash flow and is retiring its debts. It will soon be strong enough to refinance its remaining debt at much more favorable interest rates, Cramer added, and there's always a possibility of a merger with T-Mobile.

That's why at under $5 a share, Cramer called Sprint a buy, buy, buy.

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

Chesapeake Energy ( CHK): "I think that Anadarko Petroleum ( APC) is a better buy, as is Apache ( APA)."

Church & Dwight ( CHD): "That stock never quits. That is a terrific one."

Magnum Hunter Resources ( MHR): "Its a spec on oil coming back, but you can hold onto it."

OSI Systems ( OSIS): "I like it. It is a small-cap stock, though."

Danaher ( DHR): "I like the guys that run this company. That's a name I want to own."

Agnico-Eagle Mines ( AEM): "The quarter was not so bad but in the end I'm sending you to SPDR Gold Shares ( GLD)."

Alltel Corp ( AT): "I think the dividend is safe and I like the yield. "

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Jim Reid-Anderson, chairman, president and CEO of Six Flags Entertainment ( SIX), the regional theme-park operator with 19 locations and a 4.1% dividend yield.

Reid-Anderson said Six Flags has always had a history of huge debt loads but those issues were rectified during the company's bankruptcy in 2008. Since then, he said, the new team "hasn't looked back." Six Flags is now focused on being the best regional theme-park operator out there.

When asked about how business is faring during a new crisis of confidence with consumers, Reid-Anderson noted that Six Flags offers its customers a lot of value and the company hasn't seen a drop in sales. He said that even fluctuating gas prices don't seem to be affecting sales as 85% of Six Flags guests live within one hour of the park.

When asked about the company's 40% stake in Dick Clark Productions, Reid-Anderson admitted the stake is not core to Six Flags' business and a divestiture is not out of the question. He touted the company's free cash flow and sizable dividend yield even with the Dick Clark holdings.

Cramer was bullish on Six Flags, a company he said has growth, domestic security and a very nice yield.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on a number of what he dubbed "senior" biotech stocks including Gilead Sciences ( GILD), Amgen ( AMGN) and Celgene ( CELG).

Cramer said while companies like Merck ( MRK) pay investors to wait for a turnaround and companies like Abbott Labs ( ABT), an Action Alerts PLUS name, are breaking up to create value, the senior biotechs are making investors money the old-fashioned way, by creating new drugs.

Cramer called these companies the risk-takers, not afraid to make mistakes, and ones with proven track records of delivering on most of their promises. Sure, these stocks are not for the faint of heart, he added, but their core businesses are on fire and their prospects have never been greater.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, ABT and CLX.

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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