Jim Cramer Blog

CME Group Inc. (NYSE:CME) was the S&P 500's biggest gainer on word that the Justice Department would approve CME's purchase of NYMEX, the New York Mercantile Exchange. The Short Term PowerRating for CME is 1.
Goldman Sachs (NYSE:GSblew away earnings estimates this morning before the open, having largely avoided the worst of the lending crisis that has haunted its Wall Street peers. The Short Term PowerRating for GS is 2.
FedEx (NYSE:FDX) is scheduled to report quarterly earnings Wednesday before the open. Analysts are expecting earnings of $1.47 per share. The Short Term PowerRating for FDX is 5.
Zions Bancorporation (NasdaqGS:ZION) was down more than 10% on Tuesday as a Goldman Sachs report suggested tough times for regional banks through 2009. The Short Term PowerRating for ZION is 5.
Canadian Solar (NasdaqGM:CSIQ) closed up more than 10% on news that the company was boosting its 2008 sales forecast by as much as $220 million. The Short Term PowerRating for CSIQ is 2.
In their earnings announcment Tuesday before the open, Best Buy (NYSE:BBY) topped analyst estimates by six cents per share. The Short Term PowerRating for BBY is 4.
Morgan Stanley (NYSE:MS) reports earnings tomorrow before the bell, with analysts expecting EPS of $0.92. The Short Term PowerRating for MS is 3.

Labels: BBY, CME, CSIQ, FDX, GS, Hot Stocks, ZION

A Deutsche Bank AG analysis of options trading activity in both Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) - among others - suggests that traders are pricing in significant dividend cuts across the board in the financial services industry. The Short Term PowerRating for GS is 5 and the Short Term PowerRating for C is 6.
Nvidia (NasdaqGS:NVDA), one of the biggest makers of computer graphics chips, was downgraded today from "neutral" to "sell" by FTN Midwest, citing growing inventories and competition. The Short Term PowerRating for NVDA is 5.
The death watch for Lehman Brothers (NYSE:LEH) continues, with Wachovia Corp and Credit Suisse downgrading the stock due to Lehman's larger than expected losses. The Short Term PowerRating for LEH is 6.
National City Corp (NYSE:NCC), the largest bank in Ohio, admitted to having a "Memorandum of Understanding" with the Federal Reserve Bank of Cleveland with regard to questions over asset quality, liquidity and risk management. The Short Term PowerRating for NCC is 8.
The less than optimistic forecast provided by Texas Instruments (NYSE:TXN) during its mid-quarter outlook led traders to sell the stock on Tuesday. The Short Term PowerRating for TXN is 5.
Anticipated revenue growth from operations overseas led Deutsche Bank AG to upgrade Coca Cola (NYSE:KO) from "hold" to "buy." The Short Term PowerRating for KO is 4.

Labels: C, GS, Hot Stocks, KO, LEH, NCC, NVDA, TXN

Scale out of Apple AAPL Jim Cramer said on CNBC's "Stop Trading!" segment Monday.
Cramer told investors to sell as Apple CEO Steve Jobs discussed the next-generation iPhone at the Worldwide Developer Conference. The phone has faster data downloads and may outpace devices from Apple rivals Palm PALM and Research In Motion RIMM.
Cramer called the news "marginally positive," saying, "You wanted to sell most of your position into this launch because of the hoopla." He said that he would have changed this strategy if the new phone had a camera that could simulate Apple's iChat software for its Mac computers. "I'm not changing my view," he said.
"I think Apple has been a great trade in a really bad market," Cramer said. However, "the odds do not favor another run on top of this."
As for RIM's prospects, Cramer said he doesn't want to sell the stock. "I still think that BlackBerry is a terrific name." He said he would be a buyer of RIM shares at around $120.
Cramer ended the segment by saying that debt downgrades in the homebuilders sector spell more pain for the space. He said that regional banks Washington Mutual (WM) and National City (NCC) also face similar difficulties. "When I see the homebuilders being downgraded, I know there's more pain ahead," he said.
Published By TheStreet.com

Labels: Apple Inc., Blackberry, iChat, iPhone, Jim Cramer, NCC, PALM, RIMM, Steve Jobs, Stop Trading, WM

News that the Centro smartphone was taking customers away from the iPhone boosted shares of Palm (NasdaqGS:PALM) which manufactures the Internet-capable device. The Short Term PowerRating for PALM is 3.
An upgrade from Deutsche Bank AG helped oil refiners such as Tesoro (NYSE:TSO) move higher on Monday. The Short Term PowerRating for TSO is 3.
Lehman Brothers (NYSE:LEH) was among a number of Wall Street investment banks that saw its debt rating downgraded by Standard and Poor's on Monday. The Short Term PowerRating for LEH is 6.
Acorda Therapeutics (NasdaqGM:ACOR) was a standout stock on Monday as investors bid shares higher in the wake of positive clinical trial results for the biotech company's multiple sclerosis drug.
Toll Brothers (NYSE:TOL) is scheduled to announce quarterly earnings tomorrow morning before the bell. Analysts are expecting a loss of 0.87 EPS. The Short Term PowerRating for TOL is 5.
The board of directors of Wachovia (NYSE:WB) finally removed CEO Ken Thompson, while Washington Mutual (NYSE:WM) announced that Kerry Killinger would be replaced as chairman - though Killinger will stay on as CEO. The Short Term PowerRating for WM is 6.

Labels: ACOR, Hot Stocks, LEH, PALM, TOL, TSO, WB, WM

"If there's one thing I've learned in my years and years of trying to help make people money, it's that you've got to play by the rules," Jim Cramer told viewers of his "Mad Money" TV show.
Almost every time he's broken his own rules, Cramer said, he's lost money. "That's why the rules are there: They keep you disciplined and they keep you from making mistakes," he said.
In his book, Jim Cramer's Real Money: Sane Investing in an Insane World, Cramer laid out all the rules he played by while running money at his hedge fund.
But in the year he's spent working on his "Mad Money" TV show, he said, he's learned more about stocks than he did during the five years he spent at his hedge fund.
Therefore, he has 20 new rules for people to use in his book, Jim Cramer's Mad Money: Watch TV, Get Rich.
But because Cramer wants his viewers to make money and believes these new rules will help, he said he's going to dedicate his show to explaining five of the 20 rules laid out in the book.
"The new rules aren't just about being an individual investor trying to beat the market," he said. "They're about how an individual investor can understand how the big institutions work."
"There's no such thing as 'the market,' and we shouldn't reify it," Cramer went on to say. "There are just a bunch of funds that control most of the money that goes into stocks, and the guys running the funds mostly think the same way."
Published By TheStreet.com

Labels: Jim Cramer, Mad Money

"Wind power is the cheapest form of renewable energy out there," Jim Cramer reminded viewers of his "Mad Money" TV show Wednesday.
A longtime bull of the wind power business, Cramer cited a recent report stating that 30% of our nation's energy could be derived by wind power by 2040.
To help illustrate the many great companies involved in the wind power business, Cramer built a windmill from scratch, piece by piece, to show which companies make each component.
First, Cramer featured the wind tower business that makes the support structures for windmills. Here, he reiterated past recommendations of both Trinity Industries (TRN) and Otter Tail (OTTR) as the best stocks to own.
Next, Cramer featured the windmill blades, and said that Owens Corning (OC) has the best composite materials business for this high-stress application.
Cramer then focused on the nacelle, the structure that houses a windmill's turbine. Here, he identified Woodward Governor (WGOV), Thomas & Betts (TNB) and Kaydon (KDN) as the companies to own for turbines, bearings and the other components found in the nacelle.
Finally, Cramer said both MasTec (MTZ) and Thomas & Betts are the best companies for the wind power infrastructure needed to bring power from the mill to the grid.
Cramer placed all seven of these companies into what he called the "Mad Money Wind-ex," his index of wind power stocks. He said with the American Wind Energy Association's annual conference beginning in Houston next week, there should be a lot of buzz surrounding all of these names going forward.
Published By TheStreet.com

Labels: Jim Cramer, KDN, Mad, MTZ, OC, OTTR, TNB, TRN, WGOV

Buy Ralph Lauren (RL), Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"I like it because of the J.C. Penney (JCP) tie-in," Cramer said. He said today's move "seems like a bit of a short squeeze," he said, but "I think it can go higher from here."
Elsewhere in apparel, Cramer said that VF Corp. (VFC) "is the analogue of Ralph Lauren. ... If Ralph Lauren's good you don't leave this stock."
Cramer went on to praise management at Eaton (ETN). He said the company is "part of my new-tech world," and predicted it would hit a 52-week high. He said he also likes Emerson (EMR). "These companies are on fire," he said.
Of Nucor (NUE), Cramer said the company's secondary offering is an entry point. He advised more caution on Cleveland-Cliffs (CLF). "Let it cool off before you buy it here," he said.
Cramer was less bullish on AIG (AIG) and Wachovia (WB). "These are serial needers of capital," he said. He said firing AIG CEO Marty Sullivan would cause the stock to go up, and chastised Wachovia for its acquisition of Golden West. "This was one of the dumbest acquisitions ever and they're paying for it," he said.
"If they knew what they owned I would be more comfortable," Cramer said of AIG and Wachovia. "They're like Citigroup (C)." He said that when the companies claim to know what they have, "they're being wishful."
Published By TheStreet.com

Labels: AIG, C, CLF, EMR, ETN, JCP, Jim Cramer, NUE, RL, Stop Trading, VFC, WB