It was back to a normal play-by-play Game Plan this week on Mad Money, except for Cramer’s caveat that the market needs weakness to force the Fed to cut interest rates. After all, who wants to see 7 million people lose their homes?
Here are Cramer’s picks for next week:
Dollar Tree is a good buy on the consumer trend toward saving money. Cramer expects a good quarterly report on Wednesday, and he thinks it might be worth buying some DLTR before then.
Freddie Mac could help mitigate this subprime mess, Cramer said, if only the president would allow it to. But Republican opposition to companies that facilitate buyers in a credit crunch makes this a trade Cramer can’t get behind.
Avoid H&R Block, Cramer said. Even Warren Buffett sold this stock. It’s just too pinned down by subprime.
Cramer called Dell the best buy for next week. He’s anticipating upgrades will come now that Michael Dell is back in the driver’s seat.
Sycamore is a cash-rich, optical-networking stock, and it’s one of Cramer’s speculative favorites. The cash provides a nice cushion while the company figures out how to rationalize the optical business.
Lastly, Cramer is sticking by Sears Holdings. When Eddie Lampert finally closes all the underperforming stores, Cramer thinks the stock will go much higher. Also, if the Fed cuts rates, SHLD could go as high as $170 no matter what Lampert does, Cramer said. A rate cut and full rationalization of the business could push SHLD to $195.
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