Friday, October 25, 2013

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

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NEW YORK (TheStreet) -- This market just doesn't know when to quit, Jim Cramer said on "Mad Money" Friday. That's why Cramer's game plan for next week's trading includes a lot of bulls.

On Monday, Cramer said, all eyes will be on Apple (AAPL), a stock he owns for his charitable trust, Action Alerts PLUS, and Herbalife (HLF). Cramer said things should be looking up at Apple with margins expanding, while Herbalife remains an activist investor battleground.

Tuesday brings Yelp (YELP), LinkedIn (LNKD) and Gilead Sciences (GILD). Cramer said Yelp needs to raise more money and he'd love to hear of a 3:1 stock split from LinkedIn. He expressed concern for Gilead, however, noting that even good news may be ignored by the markets. Wednesday sees earnings from Facebook (FB), another Action Alerts PLUS holding, along with Starbucks (SBUX) and General Motors (GM). Cramer said he'd take some profits in Facebook, but would be a buyer of Starbucks on weakness and GM at current levels. Then on Thursday, Exxon Mobil (XOM) and First Solar (FSLR) take center stage. Cramer said Exxon will announce nothing special, but First Solar could deliver an upside surprise. Cramer advised buying Noble Energy (NBL), another Action Alerts PLUS holding, on any Exxon weakness. Finally, on Friday Chevron (CVX) reports and Cramer said he'd be a buyer of this oil giant on any weakness. Executive Decision: Chuck Bunch In his "Executive Decision" segment, Cramer spoke with Chuck Bunch, chairman and CEO of PPG (PPG), which recently delivered an earnings beat of 12 cents a share on a 17% rise in revenue. Shares of PPG are up 25% since Cramer last spoke with Bunch in April. Bunch said PPG has been focused on increasing productivity in Europe for the past few years, which has led to record operating earnings in the region. He said any improvement in Europe will now be a huge driver for the company going forward. When asked whether a turn is indeed at hand in Europe, Bunch said that PPG is seeing improvements in the U.K. as well as in Germany, but southern Europe is still slowly turning positive.

Bunch did have positive things to say about his company's finances, noting PPG has a strong balance sheet, lots of cash on hand and is ready for another big acquisition if one comes along. He said the possibility of a share buyback is also an opportunity.

Among the other bright spots for PPG is aerospace, where commercial aviation continues to more than make up for any weakness in military spending. Bunch was also upbeat on PPG's adhesives, sealants and specialty chemical products, all of which were up in the quarter. Executive Decision: Sandy Cutler

In a second "Executive Decision" segment, Cramer spoke with Sandy Cutler, chairman and CEO of Eaton (ETN), an Action Alerts PLUS holding that's up 11% since Cramer last checked in back in August.

Cutler said Eaton delivered a very strong quarter, with sales up 42% and profits up 48%. He said global electronics bookings were up 5% and aerospace bookings were up 6%, making for some encouraging momentum going into 2014 and beyond. Cutler was also bullish on Eaton's purchase of Cooper Industries, saying his company is building on the synergies of that acquisition and will have many more synergies and cost savings in the future. Other positives at Eaton include a pickup in both light residential and large commercial construction and the company's lighting division, which is leading the industry in transitioning to new, energy-efficient LED light bulbs. Cramer said shares of Eaton are not done going higher. Lightning Round In the Lightning Round, Cramer was bullish on MGM Resorts (MGM) and Icahn Enterprises (IEP). Cramer was bearish on First Majestic Silver (AG), Sony (SNE) and Atmel (ATML). Executive Decision: James Volker In a third "Executive Decision" segment, Cramer checked in with James Volker, chairman and CEO of Whiting Petroleum (WLL), which just posted a 20-cents-a-share earnings beat on a stellar 56% rise in revenue, both of which stemmed from a 12% increase in the company's oil and gas production. Volker said Whiting's success stems from keeping an eye on drilling and completion costs. He said the company's drilling times have been cut in half and Whiting can now drill a well 10,000 feet deep and 10,000 feet horizontally in just 11 to 15 days. Additionally, new technology has allowed those wells to be drilled using just a single drill bit, saving even more time from not having to change bits. When asked about the lucrative Niobrara region of Colorado, Volker explained the company has always known there was a lot of oil in the region, but only with the new technologies has it been able to extract it. Using that new technology, Whiting has seen wells in the Niobrara produce twice as much oil in a given area than even the Bakken shale has delivered. With so many positive things happening in the oil patch, Cramer said Whiting will be a winner for years to come No Huddle Offense In his "No Huddle Offense" segment, Cramer reminded viewers the goal of owning stocks is to make money, and money made in Amazon.com (AMZN) is just as legitimate as other stocks. Cramer explained that for some the 24,000% rise in Amazon shares since the company came public in 1997 was somehow not for real. Amazon shares trade at nosebleed valuations, yet the company has yet to turn a profit. But it's the market that determines the value of stocks, Cramer said, not the academics or the skeptics who feel Amazon's valuation just shouldn't be where it is. The bank will accept your deposit, even if the money was made in Amazon and even if the company is more focused on revenue growth than profits, Cramer concluded. 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, ETN, FB and NBL. Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money." None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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