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

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NEW YORK ( TheStreet) -- As long as earnings continue to exceed expectations, this market won't see a meaningful pullback, Jim Cramer told his "Mad Money" TV show viewers Friday as he laid out his game plan for next week's trading.

Cramer said Monday he'll be watching Campbell's Soup ( CPB), which is now overvalued against its historical average. He said investors need to pay attention to this stock as a bellwether for the rest of its sector, and he's not betting on a strong quarter or a strong reaction. Cramer said he's also looking for the IPOs of Ply Gem and ChannelAdvisor, both worth the investment.

Tuesday brings a host of retailers, including Best Buy ( BBY), Home Depot ( HD), TJX Stores ( TJX) and AutoZone ( AZO), along with NetApp ( NTAP). Cramer said he'd hold off on all of these names as retail has gotten too hot to handle and Net App is involved with an activist shareholder.

Wednesday brings Hewlett-Packard ( HPQ), Lowe's ( LOW), Target ( TGT) and home builder Toll Brothers ( TOL). Cramer said he's not betting on any of these stocks either, but would consider Lowe's if it sells off on Home Depot's quarter.

Then, on Thursday, Dollar Tree ( DLTR), Ross Stores ( ROST), Sears Holdings ( SHLD) and Williams-Sonoma ( WSM), and also Salesforce.com ( CRM). Cramer said he's expecting Salesforce to "shoot the lights out" and would only consider Sears and Williams-Sonoma on weakness.

Finally, on Friday, Foot Locker ( FL) and Abercrombie & Fitch ( ANF) will report. Cramer said once again that expectations have gotten too high.

Speculation Friday

For "Speculation Friday," Cramer turned his sights on a stock that's been in decline for a full eight years, falling from $45 in 2005 to a mere $5 a share at the beginning of the year. That stock, Boston Scientific ( BSX), has been riddled with problems, said Cramer, including slowing businesses, recalls and lawsuits and even Food and Drug Administration warning letters regarding quality control.

But since the beginning of the year, Boston Scientific has rallied 59% off its lows, from $5 a share to just over $9 today. Cramer said the combination of stabilization of its old products, along with the prospects of some exciting new ones, may have finally turned the tide for the company.

Thanks to some smart acquisitions, Boston Scientific is poised to debut everything from new asthma treatments to better implantable defibrillators, most of which won't move the needle until 2014, said Cramer, but that means the time to get into the stock is today. The company is also being helped by growth overseas, which has helped not only stabilize sales, but prompted management to declare that a small increase in revenue is possible in the second half of 2013.

Boston Scientific trades at just 12.5 times earnings, said Cramer, but with growth returning the stock could fetch a multiple to match that of its peers, which would value the stock a full 26% higher than it trades today. Shares have already had a big rally, Cramer admitted, but there's still definitely room to run.

Hidden Potential

Sometimes the sum of the parts are worth more than the whole, Cramer reminded viewers as he highlighted yet another company with hidden potential to bring out value, if only its management realized that breaking up would be the best thing for shareholders.

Cramer said that Baxter International ( BAX) could follow in the footsteps of Abbott Laboratoriess ( ABT), which spun off its AbbVie ( ABBV) division to huge gains.

Cramer explained that while Baxter is only up 9% so far this year, the company could do so much better if only it split its pharma business, which makes vaccines and other bioscience products, from its medical device business. He said combined as a single company, Baxter gets lost in the shuffle. But as two separate companies, analysts and investors would not only take notice, but also be able to assign full value to its parts.

Cramer reminded viewers that since its split, Abbott Labs is up 12%, while AbbVie is up 33%. Johnson & Johnson ( JNJ) has rallied 42% over the past 12 months on the mere speculation that the company might split itself into four units.

So what's Baxter really worth? Cramer valued the pharma business at $56 a share and the company's medical devices at another $31 a share, giving the company a total value of $87.50 a share, or 19.5% higher than it trades today.

Lightning Round

In the Lightning Round, Cramer was bullish on Ubiquiti Networks ( UBNT), Cornerstone OnDemand ( CSOD) and Heckmann ( HEK).

Cramer was bearish on Potash ( POT).

Mad Tweets

In the "Mad Tweets" segment, Cramer responded to questions sent via Twitter to @JimCramer.

He said Radian Group ( RDN) remains very undervalued.

Cramer told another tweeter that investors should always reinvest their dividends. Always.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the horrendous IPO of Facebook ( FB), a stock he owns for his charitable trust, Action Alerts PLUS. The first anniversary of that IPO is Saturday.

Cramer likened the Facebook IPO to a man-made forest fire, saying the IPO was a sad event for all those involved and especially those who love the markets as much as he does.

He said the combination of a greedy company, lopsided market information and an untrustworthy system led to institutional and inside investors cashing out just as millions of individual investors were buying in.

Since its IPO, Facebook has been able to re-engineer its mobile strategy, but it has never been able to regain the trust of Wall Street, said Cramer. He said Action Alerts PLUS owns the stock as a long-term speculation and has yet to be rewarded. Meanwhile, Cramer said he can't blame any investor for still not trusting the company.

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

-- 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 position in FB, JNJ and TJX.

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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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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