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

 

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NEW YORK ( TheStreet) -- The markets may be feeling some pain next week, Jim Cramer said on  Mad Money Friday as he laid out his game plan. Cramer said that with the Federal Reserve meeting on Wednesday and the Alibaba initial public offering on Friday, there could be a lot of money moving out of stocks.

Cramer said on Monday he'll be watching both Apple (AAPL) , a stock he owns for his charitable trust, Action Alerts PLUS, to hear the latest iPhone 6 preorder sales. He'll also be keeping an be on Yahoo! (YHOO) , as that company will be the biggest benefactor of the Alibaba IPO on Friday.

Tuesday brings earnings from Adobe Systems (ADBE) , and Cramer said the stock's reaction will provide a gauge on the health of the tech sector.

On Wednesday, all eyes will be on the Fed, Cramer said. The U.S. and world economies aren't strong enough to handle rapidly rising interest rates, he said, but that won't stop the bond market from overreacting to any news that comes out of the Fed's statement. Investors need to respect the bond market because it can have a big impact on stocks.

Also on Wednesday is FedEx (FDX) , which will provide an excellent read on the health of the global economy.

Then on Thursday it's Rite-Aid (RAD) and ConAgra (CAG) , two stocks Cramer said he'll be listening to for more information.

Finally, on Friday it's the big Alibaba IPO, the largest in history. Cramer said fund managers need to do a lot of selling in order to make room for this huge IPO, so expect weakness all week. If investors can get in on the deal Cramer suggested doing so, although its already been reported that the deal is oversubscribed.

Visteon Is a Winner

There's a business that you've probably never heard of that's worth a lot more than the sum of its parts, Cramer told viewers, and that company is the auto parts conglomerate Visteon (VC) .

Cramer said earlier this week that shares of Visteon ran to all-time highs on the news that its management may be considering a plan to split the company into two. But even with shares at these inflated levels, Cramer said Visteon deserves to see its shares trade even higher as the breakup plan would unlock a ton of value.

Visteon's management already has a long history of aggressively rewarding shareholders with big acquisitions and divestitures, Cramer said, so splitting itself is a real possibility. Currently, the company encompasses an electronics company and a climate control company, both of which are very exciting.

Cramer said Visteon's electronics business is benefiting from the boom in infotainment and driver information systems being added to vehicles. All cars are getting more electronics and Visteon has the scale to grow.

Then there's climate control, also in demand as hybrid and electric cars need battery cooling systems and hybrids also need new technology to manage climate when the engines are turned off to conserve fuel.

Just how much are these parts worth separately? Cramer said Visteon's climate control unit could fetch $95 a share while its electronics division is worth another $45 a share. Add the company's acquisition of Johnson Controls for another $17 a share and back out its debt of $25 a share and you get $132 a share, or 23% higher than where the stock trades today.

Time to Buy Whole Foods?

It might be time to start kicking the tires again with Whole Foods Market (WFM) , Cramer told viewers, as a turnaround may be coming at long last.

Cramer said it's clear that earlier this year the momentum shifted from Whole Foods to rivals like Kroger (KR) . While shares of Whole Foods have fallen 34% in 2014, shares of Kroger are up 31% to 52-week highs. Yet, even with these diverging share prices, Kroger still trades at just 14 times earnings while Whole Foods trades at 22 times.

Can Whole Foods get its mojo back? Cramer thinks it can, especially with the company's new Affinity loyalty program and its affiliation with ApplePay coming soon. Given that Whole Foods trades on its same-store sales, Cramer said he expects the company to see at least some gains in this metric from these programs and increased advertising spending.

Cramer said shares of Whole Foods could still fall more from current levels, but he'd start nibbling on any weakness.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said Ulta Salon (ULTA) is back after the company reported a near-perfect quarter that sent shares soaring 18% in today's session.

Cramer said Ulta had it all this quarter, from a 9.6% rise in same-store sales to an omni-channel approach that seems impervious to Amazon.com (AMZN) to an upcoming analyst day in October.

After peaking at $130 a share in late 2013, Ulta shares were pummeled to below $80 after its now-infamous December conference call where analyst expectations were seriously reset to the downside. But since then the company has been under-promising and over-delivering and Cramer said analysts will be clamoring to upgrade the stock come October.

Lightning Round

In the Lightning Round, Cramer was bullish on CSX (CSX) , Union Pacific (UNP) , PPL Corp (PPL) , T-Mobile US (TMUS) and Apple.

Cramer was bearish on Carnival (CCL) , Las Vegas Sands (LVS) and Sony (SNE) .

Cramer's Homework

In the "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier episodes. He said that Ring Central (RNG) was too speculative and not worth the risk. He was more upbeat on AutoHome (ATHM) , an auto web site in China, saying he's willing to bless it for speculation after the Alibaba IPO brings the markets lower.

In the "Mad Tweets" segment, Cramer responded to questions sent via Twitter to @JimCramer. He said that 3M (MMM) , an Action Alerts PLUS holding, should be bought on any weakness. Cramer was also bullish on National Oilwell Varco (NOV) but said we need to see oil hit $90 a barrel first.

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

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-- 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 and MMM.

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