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

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NEW YORK ( TheStreet) -- If you want to know what a bull market looks like, look at September. It's supposed to be the worst trading month of the year but it turned out terrific, Jim Cramer told "Mad Money" viewers Friday.

The central bank optimism that drove the market isn't going away soon, he said. Next week will have some big-picture data points and if they turn out badly, particularly the Friday unemployment numbers, "we'll roll back the bountiful September harvest," Cramer said.

Tuesday he'll be watching Mosaic ( MOS), which despite its beautiful name sells fertilizers, perhaps the least glamorous products on earth. "The agriculture trade is alive and well," Cramer said, but should be played with Monsanto ( MON) because it's the "higher quality company" even though Mosaic is much cheaper.

As for Monsanto, which reports Wednesday, "they'd better blow away the numbers, or else," Cramer said.

Family Dollar ( FDO) also reports Wednesday. "I don't think Family Dollar is going to be as bad as the analysts think," he said.

As for Marriott ( MAR), which reports Thursday, it got downgraded about a week ago and Cramer says the analysts must know something we don't. He says to buy Wyndham ( WYN) for being the cheapest stock in the sector while having the best value.

In economic news, Monday brings the Institute of Supply Management index. This is the number that will call into question the whole idea of a slowdown, Cramer said. "We need a better number to get this stock market higher."

Also Monday, we'll see the German purchasing agents report. Cramer said we need the Germans to realize their hard line is hurting themselves.

On Thursday comes news from the European Central Bank, which may tell us if Spain has met its endpoints.

The U.S. nonfarm employment report Friday will be "the most important piece of data this week, this year if you're Mitt Romney," Cramer said. Look out below if the number is low because we, the market, will get hammered, Cramer warned.

Also, Cramer fave PVH ( PVN) hosts its analyst day Tuesday, and he said the company usually uses the event to share some good news. Retail and banking have been the stalwarts of the quarter, he said.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with David Melcher, CEO of ITT Excelis ( XLS), a technology company that makes systems for NASA, the FAA, and night-vision goggles for U.S. troops.

Cramer said Excelis is an inexpensive stock at about $10 a share and there isn't much risk to owning it.

Melcher said since the company's spinoff last October, it has been more focused on investments and able to control its destiny in areas such as mergers and acquisitions. The company has become more focused on defense, aerospace and networking products, Melcher said, as opposed to worrying about other products before the split.

Cramer said Excelis products are not as dependent on the Cold War, but may be affected by cuts in U.S. military spending.

Melcher said the Defense Department doesn't know where the cuts will come any more than the industry can. He added that Excelis can do better than the overall market will do.

The company is looking at selling some of its presently military applications commercially. Melcher said, for instance, the company can sell night-vision goggles internationally but they are not the top grade used by our military.

Cramer said he's concerned the technology could fall into the wrong hands, but Melcher said the security of their networks, used in FAA and NASA, are a top priority.

Cramer said he loves high-yielding stocks but he often worries about them. Excelis is one he doesn't worry about.

All That Glitters

Investing in gold is risky, Cramer said, and it's not for sissies. But if you agree with him that gold is going to hit $2,000 an ounce, then Sandstorm Gold ( SAND) is too good to ignore.

Think of the small Canadian company as a bank for miners. The company lends money to gold miners in return for a percentage of the future gold production, Cramer said.

Sandstorm is a smaller version of Franklin Nevada ( FNV).

Cramer, who is always looking for a lower risk way to play gold with a lot of upscale says Sandstorm is compelling. Cash flow is expected to double in 2012, and grow 43% in 2013.

Sandstorm has eight gold streams and three royalties in its portfolio. Five of the mines are producing. Cramer said the mines are located in geopolitically stable areas of Brazil, Canada, Mexico and Nevada.

Cramer said if you buy, wait for a pullback. Gold stock and the whole gold complex are wildly overbought. If you buy, wait five days and use limit orders.

Lightning Round

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

Pitney Bowes ( PBI): That yield is so high I'm calling it a red flag. I do not want to own that stock.

Leap Wireless ( LEAP): I am not going to buy it. I don't want to be in that business. I'd rather be in Sprint ( S).

PDL Biopharma ( PDLI): This is a real good speculative stock. I like the group and I'm going to endorse it.

Genworth ( GNW): I think the business is just ok. I don't mind buying their insurance, I just don't want to buy their stock.

Clean Fuel Energies ( CLNE): I think Clean Energy is just ok. Don't buy.

Cabela's ( CAB): We've liked them for some time here. I'm reiterating the buy.

Ford Motor ( F): No. Why? Because Europe is not good. I don't want to own Ford. The international business is way too tough.

Mad Mail

In the "Mad Mail" viewer feedback segment, Cramer went back to discuss Corrections Corp. of America ( CWX), the largest owner of privatized prisons in the country. The stock has had a massive run, he said, but a lot of that is anticipation of the company converting to a real estate investment trust that gets special tax treatment and returns 90% of its profits to shareholders in the form of dividends.

But first the IRS has to give permission for the conversion. If it doesn't, there could be a decline in the stock. "I would not buy it" at current levels but wait a few months, he advised.

Speaking of a stock that stumped him, he said he needed to do some homework on Splunk ( SPLK), a computer services company that helps firms manage their networks more efficiently, before giving an opinion.

Splunk had a "smoking hot" IPO in April, he said, and its valuation is "like lava."

"I'll say this for Splunk," he said, "it's a good idea but budgets are tight. Free products do similar things."

Also, come Oct. 15 the lockup period will be over and insiders can start selling their shares. "Take the money and run," he advised.

Finally, he said he was touched by the reaction from viewers writing after his "Day of Atonement" show Wednesday where he admitted his investment mistakes. "People know I do the show for you and I work hard every day to try to do the right thing to help your family save," he said.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off on the new iPhone 5 and the coming BlackBerry 10 from Research In Motion ( RIMM), which he said are two phones he doesn't like but had better sell well or their companies' stocks will not rally.

The iPhone, of course, is made by Apple ( AAPL), a stock he owns for his charitable trust, Action Alerts PLUS. He noted CEO Tim Cook's apology for the phone's map application, "which has been universally panned."

The stock, however, remains investible although there's no hurry to buy. The map app's black eye is only temporary. He's also in no hurry to get the iPhone 5 either. There's no way he's going to trade up on a phone where the map app is a trade down.

Cramer said he has been worried ever since Steve Jobs died that Apple would be compromised in what it gives users. The iPhone 5 is not ready for its millions of map app users, he said.

He said he likes the BlackBerry keyboard, but he's not even sure when the BlackBerry 10 is coming out. "It may be six months before we see BlackBerry 10," he said. Who can wait for then?

Research In Motion may not have the BlackBerry 10 in hand but it sure has cash on hand. It has become a better long than a short, Cramer said.

Now that the company has stopped the bleeding it may catch a takeover bid just for its intellectual property, its great keyboard and its 80 million strong subscriber list.

--By Anthony Buccino for TheStreet.com

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.

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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