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Current DateTime: 10:58:08 21 Nov 2009
LinksList Documentid: 33424199

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Cramer: Earnings, IPOs Dominate Next Week’s Game Plan
Published: Friday, 6 Nov 2009 | 7:29 PM ET
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By: Tom Brennan
Web Editor, Mad Money

A worse-than-expected jobs report pushed the unemployment rate to 10.2%, the highest in over 26 years, but still the markets refused to go down. The Dow still jumped 17 points and the S&P 500 climbed two points, regardless. The bears, it seemed, had lost their last excuse to jeer improvements in both the economy and stocks.

That means “there’s nothing lurking now,” Cramer said, “nothing holding back the buyers for next week’s five sessions.”

With that in mind, he laid out his Game Plan for viewers:

Clean Energy Fuels [CLNE  Loading...      ()   ]: Cramer expects the company to lose money when it reports Monday after the close, that’s OK. He likes the stock less for its earnings and more for its exposure to natural gas. Cramer hopes that Washington will adopt nat gas as a bridge fuel, and that would put CLNE, which operates fueling stations, in a sweet spot of sorts. He also likes Fuel Systems Solutions [FSYS  Loading...      ()   ], which retrofits cars to run on nat gas. The company reported a better-than-expected quarter on Thursday, and the stock’s up 46% since Cramer’s Aug. 13 recommendation. He thinks FSYS could still go higher.

Fluor [FLR  Loading...      ()   ]: This company’s Monday report may offer clues as to when stimulus spending will hit the infrastructure sector. Earlier this week Vulcan Materials [VMC  Loading...      ()   ] said very little cash has left federal coffers yet, so the fourth quarter should be big. Cramer recommended watching FLR for a similar statement.

Diana Shipping [DSX  Loading...      ()   ]: Warren Buffett, through his acquisition of Burlington Northern Santa Fe [BNI  Loading...      ()   ], is bullish on coal, Cramer said, and that’s a hot commodity in China. Not to mention, Joy Global [JOYG  Loading...      ()   ] has called the country the biggest market for coal equipment in the world. This should mean that the dry-bulk shippers like DSX will be next to rally. Cramer doesn’t expect a good quarter when the company reports on Tuesday, but 2010 should be much better than 2009.

Ralcorp [RAH  Loading...      ()   ]: This private-label cereal maker also reports Tuesday. Cramer said he’d be watching to gauge his consumer trade-down thesis. Has the economy picked up enough that people are willing to spend on brand-name products? RAH will let us know.

Applied Materials [AMAT  Loading...      ()   ]: Morgan Stanley may have downgraded the semiconductor group this week, but Cramer’s still bullish. He expects to hear a good story from AMAT, a chip-equipment manufacturer, on Wednesday, in addition to good news about orders. In the chip business, he said, orders are more important than earnings.

In retail, Macy’s [M  Loading...      ()   ], Kohl’s [KSS  Loading...      ()   ], Walmart [WMT  Loading...      ()   ], Urban Outfitters [URBN  Loading...      ()   ] and Nordstrom [JWN  Loading...      ()   ] report next week. While Cramer doubts we’ll get anything positive from KSS and WMT, Macy’s should deliver an upside surprise. He’d tell viewers to buy M ahead of the Wednesday quarter, he said, if the stock didn’t jump more than $1 today. Look for strong quarters from URBN and JWN as well, he said.

The Walt Disney Co. [DIS  Loading...      ()   ]: Cramer said the company and the stock have been improving, but he’s not confident enough yet to make a call. Investors should listen to the conference call, as Disney is a tremendous gauge of the consumer.

Lastly, Dollar General comes public next week. Given the success of Hyatt and Ancestry.com [ACOM  Loading...      ()   ], Mad Money viewers might want to buy this deal, too. Cramer said he’d do an in-depth report on the IPO, that way they get the right price.

Call Cramer: 1-800-743-CNBC

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Current DateTime: 06:39:37 21 Nov 2009
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