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

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NEW YORK ( TheStreet) -- There are a ton of earnings coming out next week, Jim Cramer told "Mad Money" viewers Friday, as he laid out his game plan for next week's trading.

Cramer said investors need to stop, look and listen before they buy and make sure they can process all of the information that will be coming at them.

On Monday, Cramer said Citigroup ( C) will be reporting. While the banks are cheap and making a lot of money, he still prefers sticking with JPMorgan Chase ( JPM), a stock he owns for his charitable trust, Action Alerts PLUS, along with Wells Fargo ( WFC).

Then on Tuesday, Coca-Cola ( KO) and IBM ( IBM), two more Action Alerts PLUS holdings, will report along with Goldman Sachs ( GS) and Johnson & Johnson ( JNJ).

Cramer said he expects good things from Coke and IBM but really has no idea whether Goldman has any earnings power or not. He said if Johnson & Johnson lays any groundwork for splitting itself up, that would be extremely bullish for that stock.

Wednesday brings earnings from Bank of America ( BAC) and Pepsico ( PEP). Cramer said he'd buy Bank of America on weakness ahead of its earnings as this company is cleaning up its balance sheet and putting its past behind it. He also expects good things from Pepsico but would also like to hear the company's stance on the pushback against sugary sodas.

Another busy day on Thursday, as Union Pacific ( UNP) pulls into the station. Cramer said he'd be in this name on weakness. He was less bullish on Chipotle Mexican Grill ( CMG), a stock he said could see another down leg coming if same-store sales are not over 9%.

Also reporting on Thursday, Google ( GOOG) and Microsoft ( MSFT). Cramer was bullish on Google but said that he's amazed that some analysts are predicting a shortfall for Microsoft ahead of a major product cycle, Windows 8.

Finally on Friday, General Electric ( GE) and Honeywell ( HON) report. Cramer was bullish on GE, an Action Alerts PLUS stock, as well as Honeywell, which he would buy on weakness. Then there was Schlumberger ( SLB), yet another Action Alerts PLUS name, and one that Cramer said has growth and profitability.

Speculation Friday

For "Speculation Friday," Cramer followed up on NPS Pharmaceuticals ( NPSP), a stock he featured on Sept. 18 on the premise the company would receive positive news from the U.S. Food and Drug Administration in October. NPS did indeed receive that positive news, sending shares up 32% in just the three weeks since the mention. Cramer said investors should not be greedy and should ring the register on NPS.

But what about the next NPS Pharma? Cramer said he likes ISIS Pharmaceuticals ( ISIS), a $12-a-share biotech with a drug discovery platform that is providing the company with no less than 25 new drug possibilities.

One of those possibilities is a drug called Kynamro, which is up before the FDA late next week. Kynamro treats a rare condition in children which produces extremely high cholesterol, up to four times that of normal adults. The condition may be rare, afflicting only 3,000 patients in the U.S., but Cramer said if successful, Kynamro could possibly be used for more patients.

There is a caveat however, as another company, Aegerion Pharmaceuticals ( AEGR), has a similar drug before the FDA on Tuesday. Cramer said he expects both drugs will receive approval, but noted that ISIS poses less risk to investors as the company is larger with more cash on hand in case the FDA needs more data. The company also has those other 24 drugs in the pipeline, which would help it weather and negative news.

Cramer said he'd start half a position in ISIS on Monday, then buy the rest on Tuesday if ISIS gets hit on a Aegerion approval. He warned not to chase the stock higher, however, a warning he gives on all speculative stocks.

'Anointed' Stocks

For the final installment of his "Anointed Q4 Stocks," Cramer recommended a pair of biotech names that he said money managers will be clamoring for over the next two and a half months.

He said that investors need to add Alexion Pharmaceuticals ( ALXN), a stock that's already up 56% for the year, and Gilead Sciences ( GILD), which is up 66%, to their portfolios.

Cramer explained Alexion has so-called orphan drugs to treat rare blood disorders. The "orphan" status means the government helps in any way possible to bring these drugs to market.

Alexion's primary drug, Soliris, is one of the most expensive drugs available, costing $500,000 a year. The company is now seeking to expand Soliris to treat rare kidney diseases, which could add another $900 million to Soliris already $2 billion in revenues. Tack on other possible uses for Soliris and Cramer said Alexion could have $5.4 billion in revenue over the next few years. That's part of the reason why shares of Alexion are up 321% since Cramer first recommended it in October 2010.

Then there's Gilead Sciences, primarily known for its quad pill HIV treatment that can be taken just once a day. Gilead also has a strong hepatitis-c franchise, which could be worth $8 billion over the next six years. Cramer explained that unlike the current treatment, which is a 24-week injection regiment with varied results, Gilead's treatment is only a 12-week oral treatment that has seen 100% cure rates in some patients.

Unlike many other stocks, Alexion and Gilead are secular growers, said Cramer, and therefore don't need a strong global economy to do well.

Lightning Round

In the Lightning Round, Cramer was bullish on Eli Lilly ( LLY), Monro Muffler ( MNRO) and Kinder Morgan Energy Partners ( KMP).

Cramer was bearish on Cooper Tire & Rubber ( CTB), Fusion IO ( FIO), Kinder Morgan ( KMI) and Nvidia ( NVDA).

Cramer Goes 'Bad'

In a special interview, Cramer spoke with actor, writer and director Bryan Cranston, star of the new motion picture "Argo" as well as AMC's TV series "Breaking Bad." Cramer said "Breaking Bad," while centered around a highly successful drug dealer, also affords viewers an honest look into exactly what it takes to start and operate a small business.

Cranston agreed with Cramer's sentiments, saying that while many view actors as portraying fantasy, in reality actors try and define the truth and honesty around their characters. In the case of "Breaking Bad," Cranston said he shadowed university professors for a few days just to better understand the world of science and chemistry.

For the movie "Argo" he spent a week at CIA headquarters learning that while the spy trade does have its secretive mystique, it's also filled with the same bureaucracy we all face every day.

Returning to the "Breaking Bad" series, Cranston said that even the drug trade needs smart people to run highly efficient operations, just as the rest of the business world. "These are smart, careful people," he added.

Cramer said while he doesn't condone the drug trade, he said that viewers of the series can sure learn a lot about how to run a successful small enterprise.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on today's Workday ( WDAY) initial public offering, a deal that was priced into the stratosphere at 40 times sales, even though the company has no earnings.

Cramer said that on the surface it may seem like a repeat of the 1999 dot-com blast zone, but if you think about it Workday's valuation makes sense.

He said unlike the Facebook ( FB) IPO, Workday did everything right. Management was not selling on the deal, they were buying. The company priced the deal low and wasn't greedy. Finally, Workday offered 14% of their stock to the public, instead of a tiny sliver that would create incredible demand.

Cramer said in an environment where technology is unseasonably weak outside of Apple ( AAPL) and a handful of others, it makes "a ton of sense" that investors are willing to pay up for a company with sustainable long-term growth.

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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, GE, IBM, JPM, KO, SLB and WFC.

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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