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

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NEW YORK (TheStreet) -- This week was all about the shift from growth to value, Jim Cramer told his Mad Money viewers Friday. Next week probably won't be any different.

That's why Cramer's game plan for next week's trading starts off with Apple (AAPL), a stock he owns for his charitable trust, Action Alerts PLUS, and its rumored bid for the privately held Beats. Cramer said he's curious to see if the rumors are true because a streaming business could reinvigorate the iTunes music business.

On Tuesday Cramer said he'll be watching Fossil (FOSL) and Take-Two Interactive (TTWO). He said Fossil's accessory business is full of risks but also lots of rewards. Cramer also felt that Take-Two still had some upside left.

Wednesday brings John Deere (DE), SodaStream (SODA) and Cisco (CSCO). Cramer said he'd be a seller of Deere after they report, as management's conservative nature almost always knocks the stock lower. He was not a fan of SodaStream and was also cautious about Cisco.

Thursday is retail day, with Kohl's (KSS), Walmart (WMT) and J.C. Penney (JCP), among others, reporting. Cramer said he'd buy into Walmart ahead of its earnings.

Finally, on Friday, Cramer said all eyes will be on the latest housing starts number. Too low, and interest rates could finally fall to a level low enough to spark demand, he concluded.

Seriously Seeking Value

Breaking up a company unlocks a lot of money for shareholders, Cramer reminded viewers. He highlighted three recent announcements that are sure to create a ton of value.

First up, Energizer (ENR), best known for its batteries but also a company that houses personal care brands like Schick, Playtex, Diaper Genie and Banana Boat. Cramer said this complicated entity will never be fully appreciated by Wall Street, which is why the company announced on April 30 that it's spinning off its personal care division. Shares instantly responded up 15%, but Cramer said he'd be a buyer on any weakness.

Next is Mondelez (MDLZ), the global snack maker that owns Oreo and Cadbury but also a sizable coffee business. Mondelez announced it's spinning off its coffee interests into a new company of which it will own 49%. Cramer said that's another win for investors.

Finally, there's Alliant Techsystems (ATK), a stock that's already up 130% since Cramer recommended it in January 2013. Alliant is shedding its sporting division so it can merge with Orbital Sciences (ORB) and become a defense powerhouse that will certainly commend a higher multiple that it receives today.

Pulling the Plug on eCommerce?

Is it "game over" for the ecommerce stocks? It certainly seems that way after online advertiser Rocket Fuel (FUEL) became the latest in the ecom group to blow up in spectacular fashion.

Rocket Fuel came public last September to much fanfare, Cramer recalled, and traded as high at $66 a share in January. However, after reporting 95% sales growth in its most recent quarter, investors ran for the exits, sending shares below $22 a share. Cramer said the markets simply aren't tolerating fast-growing companies that hope to turn a profit far out in the future.

Rocket Fuel is not alone, however. Online ad stock Millennial Media (MM) has fallen 53% this year, while Channel Advisor (ECOM) is off 47%.

This mass exodus from growth is only made worse by the fact that there are still more companies in this crowded online advertising space waiting to come public. Cramer said the industry will need to see lots of mergers and failures in order to save itself. In the end, there may not be anything left to save.

Cramer's Playbook

For the next installment of "Cramer's Playbook," Cramer taught viewers about the notion of opportunity cost and explained why risk isn't always a bad thing.

Cramer said many beginning investors fear taking risks and feel the safety of a simple savings account or bank CD is enough to get them started. Unfortunately, nothing could be further from the truth, said Cramer. It's actually irresponsible to your money in such an account that pays next to nothing.

Cramer said that yes, these investments are safe, and you won't lose your money, but to get that safety you're giving up any hope of many profits.

Living in today's world is hard enough, Cramer continued. Wages are stagnant and the basics, like food, increasing all the time. Simply relying on your paycheck is no longer enough, he said, and everyone needs to use their money to make money.

By investing in a diversified basket of stocks, investors can hope for a return of at least 8% a year, which is enough to double your money in less than a decade. You can't build wealth without taking risks, Cramer concluded.

Lightning Round

In the Lightning Round, Cramer was bullish on Sprint (S), Alcoa (AA), Bristol-Myers Squibb (BMY) and HomeStreet (HMST).

Cramer was bearish on Briggs & Stratton (BGG).

Executive Decision: Jon Oringer

For his "Executive Decision" segment, Cramer sat down with Jon Oringer, CEO of Shutterstock (SSTK), the online media marketplace that makes it easy for businesses to license high-quality images and media.

Oringer explained Shutterstock is a two-sided marketplace, one where photographers, professional and amateur, can upload their images and businesses around the globe can buy them for use on their Web sites and in their other materials. He said his company has paid out more than $200 million to photographers so far and has more than 35 million images available on its Web site.

When asked how Shutterstock competes, Oringer said it is a tech company at its core and is constantly innovating to help customers find the right image for their needs faster and get it to them more economically.

Cramer said he's a fan of Shutterstock.

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 AAPL.

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