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The stock market continues to be crazy, Jim Cramer admitted to his Mad Money viewers Friday, but underneath it all, corporate earnings have actually been pretty good. That's why Cramer's game plan for this week continues to focus on earnings as well as big dividend yields.
After the long Presidents Day weekend, Cramer said he'll be watching Hormel Foods (HRL) and animal health giant Zoetis (ZTS) when they report on Tuesday. He warned that investors should be careful with Hormel, as it trades at a 52-week high and at 30 times earnings, but noted that the company is terrific. As for Zoetis, Cramer cautioned that large hedge funds could be sellers, so investors should steer clear.
Next, on Wednesday, Cramer said he's a fan of Dr Pepper Snapple (DPS) , as well as Priceline (PCLN) and T-Mobile US (TMUS) , but would only buy on weakness. Cramer will also be listening to Noble Energy (NBL) for an update on oil production.
Thursday brings earnings from Walmart (WMT) and Six Flags (SIX) . Cramer said he's a buyer of Walmart if its yield tops 3.5%, and he is a buyer of Six Flags right now, as that stock sports a 5% yield.
Off the Tape
In his "Off the Tape" segment, Cramer sat down with Manny Stul, co-CEO of the Australian-based and privately held Moose Toys, best known for its Shopkins line of girls' collectibles.
Stul said Moose is now the sixth-largest toy maker in America and the only foreign company outside of Lego to ever break the top 10. He said he wants Moose to move into the No. 5 spot this year.
When asked about going public, Stul said that right now Moose is happy being private and just focusing on its brands. Moose has also been wildly successful with its YouTube channel, which has garnered over one billion views so far.
Executive Decision: Lowell McAdam
McAdam said Verizon's experience has been that if you build it, customers will come. When Verizon builds a better network, McAdam said, customers use it.
That's why Verizon has partnered with the National Football League, wiring up two stadiums with super-fast wireless that tops one gigabit of throughput for phones and tablets. McAdam explained with that much capacity, football fans can watch instant replays, make their own highlight reels and see plays from 360 degree angles and still have capacity to spare.
When asked about competition, McAdam said the proof is in the numbers, which is why he looks at Verizon's loyalty numbers. The company loses less than 1% of its subscribers every year.
Finally, turning to TV, McAdam said for years customers have complained about bloated 300-channel bundles, so Verizon is now offering skinny bundles to meet those needs. That has triggered lawsuits with content providers. McAdam said Verizon has to take risks and give customers what they want or they'll be out of business.
Finding a Bottom
Finding a bottom after a long decline can be incredibly lucrative, Cramer told viewers, as was the case in 2009 when he set his sights on AT&T (T) as about the most bulletproof recommendation he could muster.
Cramer said that at the time AT&T was still hitting it out of the park with Apple's (AAPL) iPhone, and yielded a hefty 6.2% at the time. But, to be sure, Cramer consulted with not one but four chartists.
All four technicians agreed AT&T had a climax low at $21 a share and was building a base at that level. The volume at the time indicated that the sellers had "exhausted" themselves and buyers were finally stepping up in greater numbers.
But finding a bottom in a stock is not necessarily finding a stock that's heading higher. For that, the technicians used a 200-day moving average, and AT&T's cross above that average, to determine that the move was indeed for real.
Using these two reliable patterns, Cramer said he was able to capture a fabulous buying opportunity.
Alcoa's 'Head and Shoulders'
Cramer said both Europe and China had begun to slow, creating an aluminum glut for Alcoa and stunting its otherwise stellar turnaround plans. Had he adhered to his discipline, his losses could have been averted.
The opposite was true in 2013 when colleague Tim Collins told Cramer to consider Pfizer (PFE) , which had just completed a reverse head and shoulders pattern, among the most bullish of patterns that technicians seek.
Sure enough, shares of Pfizer popped over 10% after Collins identified the move. That's why Cramer said patterns matter, and when investors see a reliable pattern in a chart, they should take heed.
Domino's 'Cup and Handle'
Cramer's last lesson in charting involved one of his favorite patterns, the "cup and handle." He said that when shares of Domino's Pizza (DPZ) , which he originally recommended at $10 a share, shot up to $30 before drifting lower, he turned to colleague Ed Ponsi for help.
Ponsi did not advise selling Domino's, as Cramer expected, but suggested buying more. Why? Because the stock had just completed a cup and handle pattern and was ready for another leg higher.
Ponsi nailed that recommendation, Cramer recalled, and Domino's doubled from that recommendation.
Ponsi was also correct on his 2011 call on Monster Beverage (MNST) , then called Hansen, which displayed a cup and handle. The $49 stock jumped to $79, confounding the naysayers at the time.
The fundamentals and technicals can coexist, Cramer said, and investors need to make peace with both of them.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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