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Cramer's game plan: Retail value traps to avoid next week

Cramer's game plan: Retail value traps to avoid next week
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Cramer's game plan: Retail value traps to avoid next week

After a brutal week of continual selling in bear markets like technology, banks and pharma, Jim Cramer is ready for the bear to continue its revenge on stocks next week.

Most notable have been brick and mortar retail stocks, which are now competing with the monstrous earnings recently reported by Amazon and declining mall traffic.

"They are all looking mighty cheap. They do, however, seem like value traps to me," the "Mad Money" host said.

And as earnings season winds down, Cramer saw various themes emerge that could be pernicious to the earnings of many companies. He reviewed those themes by outlining the stocks and events on his radar next week:


Monday: Wayfair, Horizon Pharma, Teva Pharmaceutical, Tyson Foods
Wayfair: With retail's massive disruption from Amazon, Cramer can't wait to see if the abandonment of shopping mall stores will feed into online company Wayfair.

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Tuesday: Allergan, Disney, Norwegian Cruise
Allergan: Many investors have compared Allergan to being a lot like Valeant, and Cramer doesn't think the bloodletting is finished for the group.

"They are all in the grips of one of the worst bear markets I have ever seen," Cramer said.

Wednesday: Macy's, Wendy's, Jack in the Box, Boeing analyst meeting
Wendy's: With McDonald's resurgence of value meals and all-day breakfast, many fast food chains have had a hard time competing with the golden arches. Cramer thinks Wendy's can escape unscathed, but that doesn't mean the stock can go higher. It just means it might not go down after the quarter.

Thursday: Nordstrom, Kohl's, Ralph Lauren, Perrigo
Nordstrom, Kohl's, Ralph Lauren: While these stocks might look cheap, Cramer fears they could be value traps. He does not have conviction that they will be able to overcome both Amazon and a decline in mall shopping.

Friday: Honda Motor, J.C. Penney
J.C. Penney: Given Cramer's thesis on slowing mall traffic, nothing would surprise him at this point with J.C. Penney.

"I wouldn't want to own Penney going into the quarter unless it gets so crushed by other retailers that it has already been softened to a level where it can bounce," Cramer said.

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