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

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NEW YORK ( TheStreet) -- Next week's trading all hinges on Federal Reserve Chairman Ben Bernanke, Jim Cramer told his "Mad Money" TV show viewers Friday.

Cramer said Bernanke's testimony before the Senate on Tuesday will determine whether the market has more rallies like today, or more fear-induced selling like Thursday.

Beyond the Fed, Cramer said he'll be watching Lowe's ( LOW) on Monday as well as rival Home Depot ( HD), a stock Cramer owns for his charitable trust, Action Alerts PLUS, for a read on the housing recovery.

Also on Monday is an analyst day for Darden Restaurants ( DRI), which should offer insight on consumer spending, and also Hertz ( HTZ).

Tuesday also brings earnings from Saks ( SKS) and AutoZone ( AZO) along with American Tower ( AMT). Cramer said he'll be interested in the latest retail trends and thinks that American Tower could surprise to the upside.

On Wednesday, it's Dollar Tree ( DLTR) and Groupon ( GRPN) offering insight into the value shopping segment, while Joy Global ( JOY) should provide a fresh perspective on the recovery in China.

Finally, on Thursday, Cramer said he'll be watching more retailers, mainly Best Buy ( BBY), Kohl's ( KSS) and Deckers Outdoor ( DECK). He said Best Buy will offer a read on discretionary spending, while Kohl's and Deckers may offer insights into possible takeovers or buyouts.

A Market With Amnesia

Don't be so quick to bail out of a bad stock because in this market that bad stock might just come roaring back, Cramer told viewers.

Cramer said he's been amazed at the market's willingness to forgive even the worst performers. That certainly was the case with Hewlett-Packard ( HPQ), which saw its shares soar 12.5% in Friday's trading.

The market also seems willing to forgive Johnson & Johnson ( JNJ), with those shares barely skipping a beat after not one, but two government probes. The markets also like Boeing ( BA), sending those shares near 52-week highs while its flagship Dreamliner continues to have its wings clipped.

It's almost as if the market has amnesia as it bids up shares of Norfolk Southern ( NSC) after the company called a bottom in the coal market, its second such prediction. It has also bid up FedEx ( FDX) despite that company's bleak outlook last quarter.

Cramer said perhaps the only stock the markets don't like at the moment is Apple ( AAPL), another Action Alerts PLUS name. He said that's ironic since before a few months ago Apple was one of the bigger value creators of all time.

Speculation Friday

For "Speculation Friday," Cramer recommended, of all things, a mortgage insurer. He said that after years of being toxic, Radian Group ( RDN) may now be in a position to make up for its prior sins.

The mortgage insurers were among the biggest losers of the financial crisis, said Cramer, as millions of homeowners defaulted on their loans, sending many insurers into bankruptcy themselves. But now that the crisis has passed and lending standards have tightened, Cramer said this group won't stay dead forever -- which is why shares of Radian have rallied 250% from their lows.

The fact of the matter is that as housing recovers, it's doing so with fewer mortgage insurers still standing, and those that remain are in far better shape than they were before 2008. That's why Radian, which was the number three player, is now solidly number one, having written $37 billion in policies in 2012, an increase of 139%.

Radian is at an inflection point, said Cramer. The company expects to return to profitability this year and possibly even this quarter. With a book value of $14 a share, he said shares of Radian Group won't be trading at $8 for long.

Lightning Round

In the Lightning Round, Cramer was bullish on Verizon ( VZ), VirnetX ( VHC), AT&T ( T), Linn Energy ( LINE), Alnylam Pharmaceuticals ( ALNY), BioMarin ( BMRN), Aqua America ( WTR), Bank of America ( BAC) and LAM Research ( LRCX).

Cramer was bearish on Frontier Communications ( FTR), Vonage Holdings ( VG), CenturyLink ( CTL), Permian Basin Royalty Trust ( PBT), Molycorp ( MCP) and Photronics ( PLAB).

Mad Mail

In the "Mad Mail" viewer feedback segment, Cramer followed up on InvenSense ( INVN), which stumped him during an earlier show. He said he was too conservative in not recommending the stock in November, but sometimes being conservative means missing some upside.

Cramer was bearish on Computer Sciences ( CSC), saying this company has exposure to both government spending and Europe, so he'd be taking profits. He was also bearish on Bloomin Brands ( BLMN), owners of Outback Steakhouse among other chains, saying the company is fully valued and he'd only be interested under $16 a share.

When asked about Johnson Controls ( JCI), Cramer said he's not a fan at the moment. Likewise with VMWare ( VMW). Cramer noted he's grown tired of the "big data theme" for the moment.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Michael Landy, chief operating officer of Monmouth Real Estate ( MNR), an industrial real estate investment trust with a 5.6% yield. Monmouth delivered a three-cent-a-share earnings beat on Feb. 7 and currently has a 94% occupancy rate for its properties.

Landy said that Monmouth's strategy is to only focus on investment-grade tenants, which gives his company an "all star" lineup of blue-chip tenants including FedEx, which leases many facilities from Monmouth. Landy said FedEx has worked with Monmouth for over 20 years and has a solid, long-term relationship, which is one of his company's biggest strengths.

That's why Monmouth weathered the recession fairly unscathed and was able to sustain its earnings without cutting its dividend. There were no outward signs of recession at Monmouth, Landy said. The growth of Internet commerce continues to be a big driver for companies like FedEx, he said, which translates into continued earnings for Monmouth.

When asked about the possibility of a dividend increase in the future, Landy confirmed that Monmouth has many projects in its pipeline that can produce additional revenue.

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-- 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

At the time of publication, Cramer's Action Alerts PLUS had a positions in AAPL and HD.

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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