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

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NEW YORK ( TheStreet) -- On a special edition of his "Mad Money" TV show Friday, Jim Cramer saluted our troops by hosting a live studio audience of men and women who are serving or have served in our military.

He said today's rally shows what happens when good news is treated as good news and not as a reason to fear the Federal Reserve.

Cramer also laid out his game plan for next week's trading.

Monday, he'll be watching the Chinese industrial production numbers, along with the initial public offering of children's apparel Web site Zulily.

On Tuesday, Cramer said he'll be watching the health care conference that may bring news from Bristol-Myers Squibb ( BMY) and Johnson & Johnson ( JNJ).

Next, on Wednesday, it's earnings from AFC Enterprises ( AFCE), purveyors of Popeye's restaurants, along with network equipment maker Cisco ( CSCO), which he said will be the most controversial conference call of the week as the tech sector remains in flux.

Lots of retail earnings on Thursday, said Cramer, including Wal-Mart ( WMT), Kohl's ( KSS) and Nordstrom ( JWN). Cramer said he expects a good holiday for all with higher employment and lower gasoline prices. Another plus on Thursday will be Viacom ( VIAB), the media giant with a giant stock buyback that is actually making a difference.

Finally, on Friday, Cramer said the U.S. industrial production numbers will be in the spotlight and he's looking for more good news that the domestic economy continues to stir.

Executive Decision: Don Knauss

In the "Executive Decision" segment, Cramer sat down on location with Don Knauss, chairman and CEO of Clorox ( CLX), as they celebrated the second annual Kingsford Invitational Grilling Competition, with all proceeds benefiting veterans.

Knauss, himself a Marine Corps veteran, said that 15% of Clorox's hires in 2013 were veterans, and veterans make excellent employees for Clorox thanks to the fact they're mission-oriented, work well in teams and have a maturity and work ethic that's rivaled by none.

Turning to the business of Clorox, Knauss said he's challenged every brand in the company to innovate around health and wellness, sustainability, affordability and multi-cultural areas, and every brand has responded in at least one area. Even a business as mature as bleach is seeing sales up 14% when it would typically rise only 1% to 2% in line with inflation.

Knauss said Medicare is no longer reimbursing hospitals for what it deems "preventable injuries," which now include infections. That means disinfectants like bleach are in increasing demand. Additionally, Clorox has been innovating its bleach offerings to make them more compact and easier to use, something consumers like.

Knauss also commented on its acquisition of Burt's Bees, a brand that's growing by double digits despite its premium price points. He said Burt's has expanded from five to over 25 countries and there's a lot of growth left.

Cramer said Clorox once again proves how American innovation is alive and well and he continues to recommend the stock.

Game Changers

In a segment he called "Game Changers," Cramer dove into the bull market in video games being brought on by new game consoles, set to debut in just a few weeks. Cramer's been a longtime proponent of game retailer GameStop ( GME), but tonight focused on the game publishers, mainly Activision ( ATVI), Electronic Arts ( EA) and Take-Two Interactive ( TTWO).

The video game business is hit-driven, Cramer told viewers, which means whoever has the hottest titles and franchises can expect to reap the most rewards. Activision recently beat its quarterly estimates but offered tepid guidance for the end of the year. Meanwhile, Electronic Arts has been turning itself around with moves into online and social gaming, but it also tempered expectations for the remainder of 2013.

Then there's Take-Two Interactive, purveyors of the wildly successful Grand Theft Auto gaming franchise. Take-Two delivered phenomenal earnings, beating Wall Street expectations by 76 cents a share on a 340% year-over-year rise in revenue. The company also trades at just nine times earning with a 12% growth rate, making it the least expensive of the group.

Lightning Round

In the Lightning Round, Cramer was bullish on Chipotle Mexican Grill ( CMG), Banco Bilbao Vizcaya Argentaria ( BBVA), Gilead Sciences ( GILD), Verizon ( VZ), American Electric Power ( AEP) and Sirius XM Radio ( SIRI).

Cramer was bearish on Banco Santander ( SAN), Potash ( POT) and LeapFrog ( LF).

Calling the Cadets

In the "Calling the Cadets" segment, Cramer took a few questions from the cadets of the West Point investment club.

Cramer told the first cadet that if they don't have the time or inclination to manage their own portfolios, investing in mutual funds is still a great way to invest in one's future.

He hold the second cadet that the biggest mistake young people make is not taking enough risk in their investments. Older investors do the opposite -- they take on too much risk for their age and time horizon.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer reminded viewers that investing is not about being the fastest, it's about being the most thoughtful -- which is why he never recommends trading after-hours when companies first report. You must wait for the conference calls, he said, as Groupon ( GRPN) and Priceline ( PCLN) both demonstrated.

Shares of Priceline saw almost a 100-point swing from the lows after the company reported to the highs of today's trading. Cramer said that was caused by inexperienced traders who pulled the trigger based on the headlines, rather than waiting for the facts. Groupon as well as Walt Disney ( DIS) saw their shares dip on their earnings release but also quickly reversed course as investors realized things were not as bad as everyone believed.

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 CSCO and JNJ.

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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