Game Plan for the Week of March 26 – Part 1

Data storage and management company Brocade Communications Systems has an analyst meeting on Thursday, March 29, and Cramer is betting it raises its estimates. There’s been a decent amount of integration with recently bought McData – integration is Wall Street gibberish for firing lots of people as the sales forces and R&D teams are synergized, which saves money for Brocade.

There’s only one analyst that covers the company that has numbers well above the rest – Laura Conigliaro at Goldman Sachs – but Cramer is predicting that the rest will raise numbers after the analyst meeting, propelling the stock higher. That’s means you want to buy in before Thursday.

Two points of caution: The stock has already had a decent run from $8.50 to $10, but Cramer thinks that’s to be expected after closing the McData deal. Then there’s the fact that Brocade competes with Cisco Systems, a huge no-no in Cramer’s book. But a recent report suggested the Brocade was at the top of Cisco’s list of acquisition targets, so competition might not be an issue.

If you visit this site, you know that Cramer is negative on tech, baring Hewlett-Packard and Apple. But the potential for Brocade’s estimate revisions is a good play in an otherwise-hideous sector.

Aside of that, Phillips van Heusen, Carmax, Accenture and DSW all report next week. Every one of these stocks is expensive, trading at almost 20 times earnings, but Cramer is expecting strong earnings from them all. Home Gamers could make some money on these plays.

The only inexpensive stock worth playing next week as far as Cramer’s concerned is Movado. Remember, Movado isn’t just watches anymore. It’s Coach, Tommy Hilfiger, Juicy Couture, Hugo Boss and Lacoste. There could be a substantial upside surprise and a nice move up in the shares.

Bottom Line: Cramer likes Brocade ahead of the analyst meeting Thursday. He likes Phillips Van Heusen, Carmax, Accenture and DSW on their earnings even though they aren’t cheap. And Movado is his number-one play ahead of earnings.

Jim’s charitable trust owns Goldman Sachs and Hewlett-Packard.

Questions? Comments?