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

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NEW YORK ( TheStreet) -- Earnings season may have only just begun, but Jim Cramer told "Mad Money" viewers Friday he likes what he's been hearing so far. That's why his game plan for next week's trading includes a few outright buys.

Cramer said on Tuesday he'll be listening to Freeport McMoRan ( FCX) report what should be a nasty quarter. He said the company has a lot of explaining to do for its recent acquisitions. Then there's Johnson & Johnson ( JNJ), a stock Cramer told viewers they'd better not sell. Also on Tuesday, Google ( GOOG) reports. Cramer said he has a wait-and-see attitude towards Google.

For Wednesday, all eyes will be on Apple ( AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS . Cramer said he also has a wait-and-see for this most important earnings release from the world's most valued company. He'll also be watching Netflix ( NFLX) to see if the company can match its stock's performance of late.

Thursday brings 3M ( MMM), Celgene ( CELG) and Microsoft ( MSFT). Cramer said he'd buy 3M and Celgene, a stock that's up 23 points since the company's CEO last appeared on Mad Money. He was not as optimistic on Microsoft's prospects.

Finally. on Friday, it's Honeywell ( HON) reporting and Cramer said he's a buyer ahead of those results. He was also a fan of Kimberly-Clark ( KMB) and Weyerhaeuser ( WY), both of which also report.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Bryan Jordan, chairman, president and CEO of First Horizon ( FHN), a regional bank that saw its stock fall 3% in Friday's trading after the company reported a decline in its net interest margin.

Jordan said his company's stock price has been volatile as the markets attempt to re-value the regional banks. He predicted that net interest margins may drift a little lower throughout the course of 2013, but noted that they will see some offsets to that from their loan portfolio. Overall, Jordan said First Horizon should remain stable in a difficult environment.

When asked why the bank's capital markets business did not generate higher fees, Jordan said that Hurricane Sandy closed the markets for a few days, which impacted upon earnings.

Turning to the company's stock buyback program, Jordan said First Horizon continues to drive returns for share holders. He said the bank has bought back $135 million worth of stock and sees a boost to its dividend in the future. As for loan growth, Jordan predicted only modest loan growth consistent with an economy growing at 2% to 3% in 2013.

Cramer said he remains a believer in First Horizon and said that as housing picks up, loan growth will as well.

Hot Donuts

Shares of Krispy Kreme ( KKD) have been on fire of late, up 75% over the past two months. But have investors missed the move? Cramer said not a chance -- he thinks shares can hit at least $14 a share with ease.

Cramer said Krispy Kreme is giving investors two ways to win. The first is the possibility of a takeover. He said similar takeovers have been going for a 30% premium, which would value Krispy Kreme at 29 times earnings, or a whopping $16.24 a share.

But even without a takeover, Cramer said the coffee and donut chain is still a worthwhile investment. After a checkered past, the company has now delivered positive same-store sales for 16 consecutive quarters, most recently delivering a 6.8% boost in sales. The company also delivered a four-cent-a-share earnings beat with better-than-expected revenues and upside guidance to boot.

Cramer reminded viewers that Wall Street loves growth and Krispy Kreme is continuing to grow its 744-store count, both domestically and abroad. He said the stock remains cheap compared to Dunkin Brands ( DNKN), which trades at 23 times earnings with a 17% growth rate, and Starbucks ( SBUX), which trades at 21 times earnings with an 18% growth rate.

Lightning Round

In the Lightning Round, Cramer was bullish on KKR Financial Holdings ( KFN), Synovus Financial ( SNV), International Rectifier ( IRF) and American International Group ( AIG).

Cramer was bearish on Verizon ( VZ) and Aflac ( AFL).

A Business Transformed

In a second "Executive Decision" segment, Cramer sat down with Barry Davis, president and CEO of Crosstex Energy ( XTEX), a master limited partnership with 3,500 miles of pipeline and 10 natural gas processing plants.

Davis said Crosstex has transformed its business over the past few years. He said the company now derives 90% of its revenue from fee-based services, up from just 70% a few years ago. Davis said Crosstex is also diversifying into new geographies and has lowered its exposure to natural gas from 90% to just 50%. Fee-based services, he explained, are far less volatile, which makes Crosstex a more consistent earner.

Davis said he is very confident in America's oil and natural gas business, which is why he's investing over $1 billion in new infrastructure. He sees strong industrial growth in America, especially over the next two to three years.

Cramer said that he's a big fan of this 8.5% yielder, and that as Crosstex grows there's no reason why its dividend shouldn't grow along with it.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer reminded viewers that hope should never be part of the investing equation.

He said that while companies like Schlumberger ( SLB) and General Electric ( GE) both sounded more confident on their conference calls, and Morgan Stanley ( MS) went from having no hope to lots of hope on its call, he's still looking for more facts and data to support these new, higher stock prices.

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

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

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AIG, SBUX and SLB.

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