Jim Cramer's 'Mad Money' Recap: Bull Market Rides on G20 Weekend

 

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NEW YORK ( TheStreet) -- Will the bull market continue into next week? Jim Cramer told his Mad Money TV show viewers Friday that it all depends on the big G20 meeting over the weekend and whether a path to peace in the Ukraine can be forged.

Beyond global politics, Cramer said he'll be watching the earnings of Tyson Foods (TSN) on Monday, as good earnings there will reignite talks of more consolidation in the food sector.

Next on Tuesday, Home Depot (HD) will have Cramer's ear, as they will provide a read on the health of the American consumer. Also on Tuesday, Jack in the Box (JACK) , which could talk the Mexican restaurant stocks higher, VIPshop (VIPS) , a proxy for how well China is faring, and PetsMart (PETM) , the besieged retailer that is flat on the year.

On Wednesday, Keurig Green Mountain (GMCR) will be reporting, along with Salesforce.com (CRM) , two perennial Cramer favs.

Thursday brings earnings from Mobileye (MBLY) , a stock Cramer said to be careful with as it's already had a big run, and BestBuy (BBY) , a stock that will tell us how well GoPro (GPRO) is selling.

Finally on Friday, Foot Locker (FL) reports, and Cramer said that's the time to buy Nike (NKE) and Under Armour (UA) , along with Deckers Brands (DECK) and Skechers (SKX) .

Battleground Globalstar

What the heck should investors do with their shares of satellite phone maker Globalstar (GSAT) ? Cramer recommended this speculative name back in early July at $4 a share, but since then, the stock has become a battleground, forcing Cramer to admit "this was a bad call."

Cramer explained that Globalstar has petitioned the FCC for permission to use its spectrum for terrestrial service instead of for satellite-only communications. The company asserts that the current spectrum for wifi is filling up fast, creating a need for a premium, high-speed wifi network that only Globalstar can provide.

But the hedge fund of Kerrisdale Capital Management cried foul at Globalstar's assertions, and warned investors, and the FCC, that the company's plans simply won't work. That has sent shares of Globalstar down 60%. According to Kerrisdale, there is no wifi congestion problem, nor a market for what Globalstar hopes to offer.

Cramer said after reviewing these recent claims, its become apparent that Globalstar is just too risky to own. The company has $630 million in debt and is already missing targets to service that debt. The longer the FCC delays its decision, the worse shape Globalstar will be in, he added. And even if approval does come, Kerrisdale may be right and the company may not be able to build such a service or find a market if it does.

"There are easier ways to make money," Cramer concluded, which is why its time to admit defeat and ring the register on Globalstar.

What Could Go Wrong Go Wrong?

In 2014, just about everything that could go wrong for short-sellers, has. That was Cramer's conclusion after a surprise reversal in the oil patch yesterday.

Cramer explained that in the hedge fund game, there's always pressure to make money, even on the down days. So it's not surprising to see funds shorting stocks like Helmerich & Payne (HP) , a company that by its own admissions last quarter would likely begin to see some project cancellations now that oil prices have plummeted into the $70s.

That's why analysts were pressuring the company for answers this quarter, Cramer noted, even going as far as questioning the viability of Helmerich's 40-year dividend. But as often has happened in 2014, the short sellers' gains were short lived, as rumors of Halliburton (HAL) making a bid for rival Baker Hughes (BHI) saw those gains wiped out as Helmerich's stock rebounded.

That's why Cramer said he's focusing on what's working in this market and not trying to play the short-seller's game.

Executive Decision: Martin Anstice

For his "Executive Decision" segment, Cramer sat down with Martin Anstice, president and CEO of LAM Research (LRCX) , the semiconductor equipment maker that's up a solid 37% since Cramer last checked in back in April.

Anstice said that LAM has always been on the cutting edge of technology, and while his company doesn't have a crystal ball to tell them what the next hot technology will be, they do have their fingers on the pulse of the latest research and know what technologies are viable and which aren't quite ready yet.

When asked about their visibility into the future, Anstice noted that there are always three to five year cycles of investments being made. Unlike years past, Anstice said that supply and demand is a lot tighter and more disciplined, which means there is far less cyclicality.

Cramer agreed, saying that the semiconductor business, once very boom or bust, has now become a solid consistent winner.

Lightning Round

In the Lightning Round, Cramer was bullish on Alcoa (AA) and Yelp (YELP) .

Cramer was bearish on Prospect Capital (PSEC) , HCA Holdings (HCA) , SolarWinds (SWI) and Groupon (GRPN) .

No Huddle Offense

In his "No Huddle Offense" segment, Cramer told investors not to abandon the retailers, especially Ross Stores (ROST) and TJX Companies (TJX) , both of which received downgrades today.

Cramer said while the analysts fear expectations have gotten too high, in reality, this is the perfect climate for retail and expectations should be high. He said consumer confidence is up, gas prices are down, and while yes, many retail stocks are trading above historical averages, they probably deserve to be.

The retail stocks have not been leading the markets higher thus far, Cramer concluded, but the positive things happening at Wal-Mart (WMT) may be just the beginning for the group.

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 no position in stocks mentioned.

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