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

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NEW YORK ( TheStreet) -- This terrific market just keeps going higher, Jim Cramer told "Mad Money" viewers Friday.

But his game plan for next week's trading is still to urge caution, so investors should do their homework and only buy on weakness and not into strength.

Cramer said on Monday he'll be watching Caterpillar ( CAT), a company he said has set the bar too high. He advised buying CAT only under $93. Yahoo! ( YHOO) also reports on Monday, and Cramer said that company's new CEO continues to turn things around.

Tuesday brings EMC ( EMC), about which Cramer has some trepidation, along with Ford ( F), Pfizer ( PFE) and Amazon.com ( AMZN). Cramer said he's a buyer of all three stocks, but only after they report and especially if they get knocked down.

On Wednesday, it's Boeing ( BA) and Qualcomm's ( QCOM) turn at bat. Cramer said he'd steer clear of Boeing and use United Technologies ( UTX) or Honeywell ( HON) for aerospace exposure. As for Qualcomm, Cramer said he wants to listen and hear that company's take on the saturation of smart phones.

Thursday's stocks include DST Systems ( DST), Fortune Brands Home and Security ( FBHS) and Manitowac ( MTW), three stocks Cramer said need to do unlock some shareholder value.

Also on Thursday, packaging makers Bemis ( BMS) and Berry Plastics ( BERY), two stocks Cramer recently featured as buy, buy, buys.

Finally on Friday, Exxon Mobil ( XOM) and Chevron ( CVX), a stock Cramer owns for his charitable trust, Action Alerts PLUS , will report. Cramer said he'd sell Exxon into any strength and buy more Chevron on any weakness.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Dan Fulton, president and CEO of Weyerhaeuser ( WY), a stock that Cramer sold for Action Alerts PLUS after it had risen 36% over the past six months. Shares of Weyerhaeuser fell 2% in the day's trading after it reported a monster quarter.

Fulton said it's been a long time coming, but he now feels very confident about the housing recovery in the U.S. He said he was very encouraged by the turn in California as well as in other hard-hit areas of the country. Fulton also noted that Weyerhaeuser's export business, particularly to the Asia-Pacific region, remains strong and growing.

When asked about the effects of Hurricane Sandy on the building supply market, Fulton explained it will take time for the rebuilding effort to get into full swing. He said demand is already strong for both lumber and oriented strand board, or OSB, products, and that will continue as the building season gets underway.

Similarly, Fulton said Japan's rebuilding efforts after the tsunami there of a few years ago have also been slow to get underway because the primary concerns were for emergency shelter followed by the need to rebuilt infrastructure, both of which needed to be completed before a big rebuild in housing.

Cramer said that perhaps he sold Weyerhaeuser too soon as the company seems poised for a very strong 2013.

Herbalife Is Unhealthy

How can investors win big on the battle that has become Herbalife ( HLF)? Cramer said by staying as far away as possible and watching the fireworks from a safe distance.

Cramer explained that as the battle between billionaires Bill Ackman and Carl Icahn rages on, there's absolutely no way for regular investors to know what comes next. He said Ackman, who has accused Herbalife of fraud and is short the stock, has stated he expects shares to fall to zero. But that depends on the government stepping in and indicting the company, said Cramer, something that may or may not happen.

As for Icahn, he's likely betting that Herbalife will either buy back a ton of shares or get a takeover bid, thereby forcing a short squeeze to wipe out Ackman. Cramer said this is why the fight is no longer over the fundamentals of Herbalife, but rather how the bad blood between these billionaires ail resolve itself.

Lightning Round

In the Lightning Round, Cramer was bullish on Synovus Financial ( SNV), Accenture ( ACN), SAP AG ( SAP), Invesco Mortgage Capital ( IVR), National Oilwell Varco ( NOV), Camden Property ( CPT), Bank of America ( BAC), Wells Fargo ( WFC) and Hormel Foods ( HRL).

Big on Chips

In the second "Executive Decision" segment, Cramer spoke with T.J. Rodgers, president and CEO of Cypress Semiconductor ( CY), a sub-$10 stock that now 4.4%. Cypress manufactures programmable systems on a chip as well as controllers for touch screens and other devices.

Rodgers said there's still a big market for semiconductors, but what's changed is who's buying them. He said smartphones now rule the roost. When the economy turns, people stop buying phones, which feeds all the way to the chip manufacturers in short order. He said that while Cypress has always been run as a lean company, it is still working hard to cut additional costs from their balance sheet.

When asked about the company's dividend, Rodgers said Cypress will continue to pay one but the company has also bought back a lot of stock, even incurring some debt to do so. Rodgers said the buyback was the right thing to do as the stock was undervalued.

Cramer said investors who feel the world's economy has bottomed should do their homework because Cypress should be one of the companies to benefit from a global recovery.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the notion that weakness in a stock is a buying opportunity. He said that companies like Schlumberger ( SLB) and Accenture ( ACN) are just two of many examples of stocks that blew up, only to recover in short order.

Need more examples? How about Starbucks ( SBUX) and Procter & Gamble ( PG)? Cramer said it's clear that this market forgives, forgets and then proceeds higher. These two and Schlumberger are also Action Alerts Plus holdings.

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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 CVX, PG, SBUX, SLB, UTX and WFC.

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