Cramer's 'Mad Money' Recap: Avoid Trading on Headlines Next Week (Final)
NEW YORK ( TheStreet) -- With a tidal wave of earnings coming next week, Jim Cramer reminded viewers on his "Mad Money" TV show Friday to keep their fingers off the trigger and avoid trading on the headlines. He said confusion reigns supreme during this most difficult of earnings weeks and mistakes can damage a portfolio in an instant.
Cramer's game plan for next week's trading included Conoco-Phillips (COP) , Netflix (NFLX) and Texas Instruments (TXN) on Monday. Cramer was torn on Conoco, as the company is splitting itself up to bring out value, but is still levered to the ailing natural gas. He was bearish on Netflix, a company that is too expensive, and took a wait-and-see attitude for Texas Instruments.
Cramer said Apple must beat $11.80 a share in earnings and revenue of $41 billion to impress Wall Street. He was bullish on AT&T, saying the downside was minimal, and was comfortable with both Panera and 3M.
For Wednesday, Boeing (BA) , Caterpillar (CAT) , Wyndham Worldwide (WYN) and Cliffs Natural Resources (CLF) will take the stage. Cramer was bullish on Boeing, Caterpillar and Wyndham, but wanted just to listen to Cliffs Natural.
Still more stocks on Thursday included Celgene (CELG) , a stock Cramer said to buy on weakness, along with Exxon-Mobil (XOM) , a big but not great oil company; Amazon.com (AMZN) , a company that will be hard-pressed to make its numbers; Deckers Outdoor (DECK) , a stock that Cramer said may have peaked; and Zynga (ZNGA) , a company with no real earnings.
Finally on Friday, Cramer said he'll be watching International Paper (IP) , another Action Alerts PLUS holding, Procter & Gamble (PG) and VF Corp (VFC) . Cramer was bullish on IP, but said he likes Kimberly-Clark (KMB) over Procter. He was a fan of VF Corp, but noted the stock always gets hit after earnings.
The Stanley Black & Decker FiascoWhen you combine great expectations with a disappointing headline earnings number and a delayed conference call, that's a recipe for disaster, Cramer told viewers. And a disaster it was when Stanley Black & Decker (SWK) , an Action Alerts PLUS stock, reported earnings this Wednesday. Headlines read of a 3-cent-a-share earnings miss and shares plummeted 7%.
Was this selloff warranted? After listening to the conference call and analyzing the results, Cramer said absolutely not. He first criticized Stanley's management for its ludicrous policy of holding its conference call at 10am the day following their earnings release. That policy single-handedly created an information vacuum that was largely responsible for the collapse in its share price, Cramer concluded.