Cramer's 'Mad Money' Recap: No Vacation Without Legislation

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NEW YORK ( TheStreet) -- With the fiscal cliff less than a month away, is it possible our Congress could go off on vacation? Yes, it is, Jim Cramer told "Mad Money" viewers Friday.

With the purchasing power of Americans ready to drop dramatically when taxes rise if no deal is reached, Cramer urged Congress to resolve the crisis before even thinking about leaving Washington.

"No vacation without legislation," he stressed. If there's no deal before members go on vacation, the odds go to 50-50 there will be a deal by the end of the year.

"Let's hope the policymakers work it out, but prepare for the worst if they don't," Cramer said.

With that in mind, Cramer said his game plan for next week starts with the Sunday morning talk shows, which have become more important for him to watch than football to get an idea what members of Congress will do next. Then on Monday he'll see how the markets react.

Tuesday, Cramer will be watching Dell ( DELL) investor meeting. He plans to keep an ear open for word of a leveraged buyout. Monster Beverage ( MNST) will also be meeting with analysts. While it should be a "lovefest," Cramer said, pay attention to what's said.

Wednesday brings Joy Global ( JOY) earnings, which could shed some light on China's economic state. He suggests taking another look at Restoration Hardware ( RH) ahead of their earnings report Wednesday.

Ciena ( CIEN) reports on Thursday but Cramer is "not expecting much" based on peers' performance, so stay away.

Cramer favorite Pier 1 ( PIR) also reports Thursday -- will the stock continue to deliver? Cramer said he would consider buying CVS Caremark ( CVS) ahead of earnings and will be watching Phillips 66 ( PSX) earnings. United Technology's ( UTX) report will give us a sense of how aerospace is doing, he said.

Friday brings Scotts Miracle-Gro ( SMG), which has "burned, scalded and mutilated" investors, Cramer said. "It's been making endless excuses for missed quarters," he said. "Can they explain the poor execution? I'll listen, but frankly I doubt it."

Power to the People

Always on the lookout for new products with original applications, Cramer talked to the chairman and CEO of BioLite, a private company that has created a 33-ounce wood-burning stove that also generates electricity.

Imagine what this would've meant to people during and after Hurricane Sandy who were left without heat or power?

As it happens, CEO Jonathan Cedar and Chairman John Levy told Cramer, they did go around Brooklyn, N.Y., where the company is based, and other affected areas to help people charge their cellphones and leave them some of the stoves.

"This is personal-scale energy access," Cedar said.

The stove, which can heat a cup of tea in four minutes, is also being tested in third-world nations where there isn't a lot of access to power -- but everyone has a cellphone.

Right now the stove, costing, $130, is only available through the company's Web site, BioLitestove.com, but next year it will be available in wholesale locations.

Unlocking DST's Value

When it comes to DST Systems ( DST), an information processing and software services company, there are many ways it could unlock value, Cramer said.

It could be an acquisition target, or it could split itself in two, he pointed out.

So far, the company parts are worth more than its whole and it's been selling off non-core assets. The company looks like it's preparing itself for a sale, Cramer said. If it catches a buyer DST could be worth $75 a share.

Cramer reminded viewers that he does not recommend buying a stock based on its takeover value but must be worth something on its earnings.

"Even if DST doesn't get bought out, it has a fabulous story," Cramer concluded.

Lightning Round

In the Lightning Round, Cramer was bullish on PDC Energy ( PDCE), UnitedHealthcare ( UNH), Merrimack Pharmaceuticals ( MACK), Cabela's ( CAB) and American Capital Agency ( AGNC).

Cramer was bearish on Finistar ( FNSR) and Hovnanian ( HOV).

Mad Mail

Doing his homework as a follow-up to some earlier questions, Cramer said Micros Systems ( MCRS) is very cheap and its valuation is attractive. He suggests starting a position here on weakness. It's a nice entry point, buy, but keep an eye peeled for lower prices.

Xylem ( XYL), the company that pumped 12 feet of water out of the Brooklyn Battery tunnel after Hurricane Sandy, is an exciting pure-play water company. Its stock isn't doing so well because of weakness in Europe. Cramer suggests waiting for a pullback to $24 before buying.

Cramer suggested taking a pass on PrivateBancorp ( PVTB).

Asked via Twitter about Mondelez International ( MDLZ), a holding in Cramer's charitable trust, Action Alerts PLUS, he said the former Kraft unit has seen its stock going down since the spinoff. It's a fast-growing snacks business overseas. It acts terrible. It's got a terrific restructuring, so buy it and be patient.

Is it time to ring the register on Johnson and Johnson ( JNJ) and Enterprise Products Partners ( EPD)? tweeters ask.

But Cramer asks, why would you ring the register? Did something happen? Are there fact changes? JNJ could split up and immediately go to $75, $80 a share, Cramer is a buyer. Likewise, no way should you sell EPD, Cramer said, it has one of the best and safest yield. Buy more.

No Huddle Offense

Who is really doing well in retail? Cramer asked. Well, with holiday shopping season in full swing and consumers facing a real wallop to the paycheck come Jan. 1 if there is no deal, the winner is Lululemon ( LULU).

Lulu's last earnings numbers were "astounding," Cramer said, but its weak outlook has gotten investors nervous.

Cramer scoffed at that. Lulu customers tend to be wealthy so won't be as affected by the fiscal cliff. It has 200 stores and can easily open more, including internationally, where it has started to expand. Its yoga clothes are well-made and it encourages better health.

"It's not too late to buy Lulu," Cramer concluded.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

-- Written by Anthony Buccino and Margo D. Beller in New York.

At the time of publication, Cramer's Action Alerts PLUS had a position in MDLZ.

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."

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