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

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK ( TheStreet) -- One day we'll get to talk about stocks again, Jim Cramer told his "Mad Money" TV show viewers Friday, but unfortunately that day will not be today as Washington continues to dominate the financial headlines. That's why Cramer said his game plan for next week's trading is identical to this week's: sell first and ask questions later.

Other than the continued hardline discussions in Washington, Cramer said the only number that will move the markets will be Friday's jobs report. Here again, it's a "good news is bad news" situation as putting more people back to work will be seen as the time Ben Bernanke will drop the boom on interest rates.

Outside of Washington, Cramer said he'll be watching Paychex ( PAYX) on Monday, as he worries that prior gains may be given up by a weaker outlook. Tuesday's only stock news will be Walgreens ( WAG), Cramer said, and that company has been on a roll, reclaiming lost market share.

Wednesday brings more comments from Bernanke, which may help to soothe fears for Friday, Cramer noted. Also on Wednesday, seed giant Monsanto ( MON) reports. Cramer said that while Monsanto should do well with a growing global economy, the issue of farm subsidies could come up in Washington, making even this stock a tough one to call.

Also on the watch list are two high-yielders, Clorox ( CLX) and Eli Lilly ( LLY). Cramer said both these stocks could also come under fire depending on what Bernanke & Company have to say.

Cramer said his advice is to continue to raise cash and wait for the moment a budget deal is reach, because even a bad deal will give the market certainty and only then will it be allowed to head higher.

No Huddle offense

In his "No Huddle Offense" segment, Cramer explained what he means by a great "regional to national" story. He said in the case of Dunkin Brands ( DNKN), a chain that's clustered in the Northeast and along the East Coast, there is still many years of growth ahead as this high quality operator adds locations in the two-thirds of the country where it has none.

Compare that opportunity to that of J.C. Penney ( JCP) or Sears Holdings ( SHLD), retailers that already have locations throughout the entire country. Those chains need fewer, not more, stores, said Cramer, the complete opposite of Dunkin, which could easily support thousands more.

So the next time Cramer talks about "regional to national," just think about Dunkin Brands and the decade of growth it has in front it.

Speculation Friday

For "Speculation Friday," Cramer turned his sights on Pharmacyclics ( PCYC), the small biotech firm that received not one, but three analyst upgrades despite the stock having already soared 130% so far this year.

Cramer said that he doesn't care where the stock of Pharmacyclics came from, only where it's going, and in this case he completely agrees with the three analysts. Why? Because Pharmacyclics' new blood cancer drug, submitted for Food and Drug Administration approval this summer, is proving to be a blockbuster therapy that could revolutionize how blood cancers are treated.

Cramer noted that what's exciting about Pharmacyclics is not that its drug is showing remarkable results with few side effects, but that the drug is achieving these results all by itself. This new drug is so good, it turns out, it doesn't need to be part of a cocktail of drugs as all other therapies dictate.

Given the hefty price tag of the drug, $125,000 a year, analysts are now expecting $6.5 billion a year in peak revenue. Not all of that will reach Pharmacyclics, however, as it has a 50/50 split with Johnson & Johnson ( JNJ).

While some analyst shy away from Pharmacyclics given its $10 billion valuation, Cramer noted that companies including Alexion Pharmaceuticals ( ALXN), are also expected to bring in $3.5 billion, and that company is valued at $22 billion -- meaning Pharmacyclics could double or more and still be valued in line with its peers.

There are still risks, however, which is why investors need to do their homework before investing, Cramer noted,.

Lightning Round

In the Lightning Round, Cramer was bullish on LifeLock ( LOCK), Oasis Petroleum ( OAS), Rite Aid ( RAD) and Verizon ( VZ).

Cramer was bearish on Linn Energy ( LINE).

Executive Decision: Ron Squarer

In the "Executive Decision" segment, Cramer sat down with Ron Squarer, CEO of Array BioPharma ( ARRY), another speculative biotech company fighting the war against cancer. Shares of Array are up 64% so far in 2013.

Squarer said one of the big reasons for his company's success has been having great partners. He said Array has partnered with a number of big names in the industry and has learned a lot while helping to bring many new exciting treatments to fruition. That said, Squarer also said any biotech's success comes down to two things: good science and excellent decisions, both of which Array has been fortunate to have in recent years.

Squarer highlighted a few projects, including a partnership with Onyx Pharmaceuticals ( ONXX) for a drug they call "520." He said there should be news out by the end of the year for this blood cancer treatment. Also on the horizon, 502, the company's asthma treatment, which is potentially the first major advance in 15 years in that area.

Cramer said that like Pharmacyclics, Array is another great speculative way to play the many advances that are being made in the fight against cancer.

Mad Tweets

In his "Mad Tweets" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said Nektar Threrapeutics ( NKTR), which saw its shares plummet 24% today after one of its drugs failed to make the grade, should be held until the company's analyst day on Oct. 8.

Cramer said that all the good news is already baked into the stock of GT Advanced Technologies ( GTAT), and he'd wait for a pullback before considering it.

Turning to two IPOs from May, Cramer said Insys Therapeutics ( INSY) may have already risen 320% for the year but it remains reasonably valued. He was not impressed with Cyan ( CYNI), which missed its first quarter as a public company.

When asked about International Paper ( IP), Cramer said a recent downgrade was wrong. He was less enthusiastic about Westport Innovations ( WPRT), saying that while he still likes the story, the company needs a lot more financing.

Finally, Cramer said that he's still bullish on GameStop ( GME) ahead of the new game cycle and would buy shares on any weakness.

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

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- 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 JNJ and LINE.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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.

If you liked this article you might like

A New and Different Kind of Market: Cramer's 'Mad Money' Recap (Thursday 12/21)

A New and Different Kind of Market: Cramer's 'Mad Money' Recap (Thursday 12/21)

Every Business Is a Tech Business to Some Degree

Every Business Is a Tech Business to Some Degree

Tax Law, Wells Fargo, AT&T, Apple - 5 Things You Must Know

Tax Law, Wells Fargo, AT&T, Apple - 5 Things You Must Know

Apple, Banks, Earnings and All the Market News You Need in Under 60 Seconds

Apple, Banks, Earnings and All the Market News You Need in Under 60 Seconds

Paychex Stock Is Extended, Be Prepared for a Vicious Correction

Paychex Stock Is Extended, Be Prepared for a Vicious Correction