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

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NEW YORK (TheStreet) -- Volatility will continue to reign supreme, Jim Cramer said on Mad Money Friday as he laid out his game plan for next week's trading. Cramer said this week's rally was spurred on by the bears being caught with their pants down but what happens next week is anyone's guess.

Cramer said his week will start on Tuesday with earnings from AutoZone (AZO) and Workday (WDAY). He said AutoZone remains a favorite as the company has decreased its share count from 56 million to 34 million in just the past five years. As for Workday, Cramer said the company will likely post great growth but the markets may not react well to it.

Wednesday brings earnings from Michael Kors (KORS) and Toll Brothers (TOL). Cramer said he'd be a buyer of Kors and Toll Brothers should confirm that a mini housing recovery is at hand after the long, brutal winter.

On Thursday, it's Costco (COST), a stock Cramer owns for his charitable trust, Action Alerts PLUS, and Splunk (SPLK) reporting. Cramer said Costco should have great numbers compared to other retailers but Splunk is another high-growth speculative stock the markets may not how what to do with.

Finally, on Friday, Ann (ANN), formerly Ann Talyor, will be reporting. Cramer said he expects good things from this retailer as well.

What Have We Learned?

What can investors learn from this quarter's round of retail earnings? Cramer said this quarter's lesson is that not all retailers are created equal.

Cramer said there's unprecedented pressure on retailers to adapt and connect to their customers in new ways. Those that are up for the task are flourishing, but those sticking to what they've always done are getting crushed.

Among the winners are Williams-Sonoma (WSM), said Cramer, a company that's now split right down the middle between bricks-and-mortar stores and online and catalog sales. Another standout: Nordstrom (JWN), a company investing billions in its online and omni-channel efforts to serve its customers better. Finally, Cramer said that Home Depot (HD) remains a standout as well, with a terrific stock buyback to boot.

Which are the ones falling behind? Cramer said it's clear that PetSmart (PETM) and Dick's Sporting Goods (DKS) have lost their way, as has Target (TGT), which recently booted its CEO as a result.

Cramer said investors need to do their homework before investing in retail. The exchange-traded funds may treat all retailers as replaceable commodities, but they're anything but.

Goodbye, CEO; Hello, Breakup

When a long-time CEO retires, there's always a chance for a change in strategy, Cramer told viewers. In the case of Danaher (DHR) that new strategy might include a breakup to unlock value.

Cramer has long sung the praises of corporate breakups. He said once a company reaches a certain size, it just cannot be effectiely managed or valued by the Wall Street analysts -- which is why splitting into manageable pieces is always met with higher share prices.

Danaher is a conglomerate now worth $54 billion, thanks to a 25-year history of smart acquisitions. After hundreds of these deals, shares of Danaher have risen 7,587% over those past 25 years.

But as the company grows, these deals "move the needle" less and less, Cramer said, which is why a split makes so much sense. It would allow the pieces to resume a strategy that has a long history of results.

Cramer said Danaher should split into four units: a water business, industrial technology, life sciences and testing and measurement. All of these parts total up to $90 a share, Cramer said, or 15% more than shares trade today. Give the parts the premium they deserve and that number could be as high as $100 a share, for a 27% premium.

Executive Decision: Stanley Crooke

For his "Executive Decision" segment, Cramer spoke with Dr. Stanley Crooke, chairman and CEO of Isis Pharmaceuticals (ISIS), a stock that's been cut in half in recent weeks despite the company's 32 drugs under development. Shares of Isis popped 11.5% today on positive data for one of those drugs.

Crooke said today's news centered around the company's anti-thrombosis drug, which was proven to be seven times more effective in a small number of patients. He said the drug could be used very broadly in a number of indications but there is still more work to be done to get the drug to approval.

Crooke also touted his company's triglyceride drug as another promising compound. He said this drug, too, "looks like a winner to us," but admitted that all drug discovery takes time to come into fruition, as it should.

Cramer said Isis remains a winner in his book and after its big share decline is worth a spot in everyone's portfolio.

Lightning Round

In the Lightning Round, Cramer was bullish on MasterCard (MA), Qiagen NV (QGEN), Dunkin Brands (DNKN), Starbucks (SBUX), Ensco International (ESV), RR Donnelley (RRD), Air Lease Corporation (AL) and Boeing (BA).

Cramer was bearish on SeaDrill Limited (SDRL), GameStop (GME) and FLY Leasing (FLY).

Executive Decision: Mark Dankberg

In his second "Executive Decision" segment, Cramer spoke with Mark Dankberg, chairman and CEO of ViaSat (VSAT), the in-flight wifi provider whose shares have fallen 20 points from their highs as competition heats up.

Dankberg said that while analysts have been focused on the number of subscribers the company is adding, he feels that may not be the best metric to value his company. He said the quality of the service offered and the higher revenue per subscriber are things he focuses on as ViaSat grows.

Dankberg continued that the company has 100 planes deployed but expects 400 by the end of the year. He said it will be interesting to see the customer engagement once the fleet is fully implemented.

When asked about the incoming competition from AT&T (T) for residential satellite service, Dankberg said he takes the AT&T threat seriously but noted ViaSat can compete with any terrestrial based service quite nicely.

Cramer said the competition may be heating up but there's no denying ViaSat has the superior technology.

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 BA, COST and ESV.

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