Jim Cramer Blog

Sprint Nextel Corp., the nation's third largest wireless carrier, said Wednesday that fourth-quarter profits rose 33 percent on stronger revenue, but the company continued to lose high-quality subscribers.
The company, based in Reston, Va., with operational headquarters in Overland Park, Kan., reported earning $261 million, or 9 cents per share, during the October-December period, compared with $195 million, or 7 cents per share, a year earlier.
The fourth quarter earnings were one penny better than that expected by analysts surveyed by Thomson Financial.

Labels: S, Sprint Nextel Corp.

Federal Reserve Chairman Ben Bernanke faced his first market crisis with a calm, matter-of-fact demeanor that won praise from lawmakers and economists alike.
Rather than the famously opaque language that predecessor Alan Greenspan sometimes employed, Bernanke answered lawmakers' questions with plain vanilla statements Wednesday
Testifying the day after the market's 416-point plunge, Bernanke told the House Budget Committee that the Fed was monitoring market developments but had seen nothing that would cause it to change its positive outlook for the economy.
Discussing market operations, he said, "They seem to be working well, normally."

Labels: Ben Bernanke

Stocks staged a partial recovery from yesterday's massive sell-off, buoyed by bargain hunting and some soothing words about the economy from Federal Reserve Chairman Ben Bernanke. After opening strongly, stocks traded unevenly. They briefly dipped lower only to rebound sharply by mid-morning before settling into a comfortable trading range for the rest of the day. Bonds reversed course as well. The 10-year Treasury note pulled back, adding 4 basis points after dropping -12 bp yesterday. The benchmark bond closed yielding 4.55%. Crude oil prices inched higher.
Testifying before the House Banking Committee today, Bernanke said "there didn't seem to be any single trigger" to yesterday's sell-off and that he didn't see much point in revisiting individual news events from yesterday. More important for today's market action is that he re-affirmed the comments he made before the Congress earlier in the month. Bernanke said the Fed is still "looking for moderate growth in the economy going forward." He also said that while the central bank is concerned enough about the subprime mortgage market to provide "guidance to lenders about proper procedures for underwriting," he added that the Fed didn't see any signs that problems in the subprime arena were spreading into the broader mortgage market, or dampening sales activity.
Housing, however, remains a murky picture. Yesterday, the National Association of Realtors said sales of existing homes accelerated at their fastest pace in seven months, spurred on by falling prices. However, the Commerce Department reported today that sales of new homes continue to suffer, plummeting -16.6% in January from December, the sharpest one-month decline in 13 years. The economy also grew more slowly in Q4 of last year than previously forecasted, the Commerce Department said in a separate report. GDP grew a revised 2.2% last quarter, not the 3.5% initially forecast. The downward revision was expected.
Home improvement retailer Home Depot (NYSE: HD - News) added to the housing picture by saying it doesn't expect the residential construction market to start improving until the end of this year and early next year. As a result, the company predicted that its earnings will decline between -4% to -9% this year and that sales growth will be flat to up 2%. The company nonetheless plans to invest up to $2.2 billion this year in improvements to its business. The figures were contained in a news release distributed in conjunction with an investor meeting today.
Among the day's top-performing stocks was Sprint Nextel (NYSE: S - News). The stock added 5% after the company announced better-than-expected results. The wireless carrier delivered a 32% increase in its Q4 profit. While the company increased its overall subscriber count, many were less-profitable "pay-as-you-go" customers. Monthly subscribers, which are more profitable, continue to defect from Nextel, which has suffered from quality issues and outdated phones. Subscribers can read our full analysis of Sprint's results in today's issue.
Merck (NYSE: MRK - News) produced a solid advance today after the drugmaker said it anticipates better-than-expected Q1 earnings and raised its full-year EPS guidance. The stock gained 2% in today's trading. Martha Stewart Living Omnimedia (NYSE: MSO - News), meanwhile, delivered a five-fold increase in its Q4 profit. The company said new products and strength in all of its businesses helped produce earnings of $16.2 million, or 31 cents a share, compared to $2.95 million, or 6 cents a share, last year. Revenue rose 15% to $97 million.
Published by BullMarket.com

Labels: HD, MRK, MSO, S

Stocks staged a partial recovery from yesterday's massive sell-off, buoyed by bargain hunting and some soothing words about the economy from Federal Reserve Chairman Ben Bernanke. After opening strongly, stocks traded unevenly. They briefly dipped lower only to rebound sharply by mid-morning before settling into a comfortable trading range for the rest of the day. Bonds reversed course as well. The 10-year Treasury note pulled back, adding 4 basis points after dropping -12 bp yesterday. The benchmark bond closed yielding 4.55%. Crude oil prices inched higher.
Testifying before the House Banking Committee today, Bernanke said "there didn't seem to be any single trigger" to yesterday's sell-off and that he didn't see much point in revisiting individual news events from yesterday. More important for today's market action is that he re-affirmed the comments he made before the Congress earlier in the month. Bernanke said the Fed is still "looking for moderate growth in the economy going forward." He also said that while the central bank is concerned enough about the subprime mortgage market to provide "guidance to lenders about proper procedures for underwriting," he added that the Fed didn't see any signs that problems in the subprime arena were spreading into the broader mortgage market, or dampening sales activity.
Housing, however, remains a murky picture. Yesterday, the National Association of Realtors said sales of existing homes accelerated at their fastest pace in seven months, spurred on by falling prices. However, the Commerce Department reported today that sales of new homes continue to suffer, plummeting -16.6% in January from December, the sharpest one-month decline in 13 years. The economy also grew more slowly in Q4 of last year than previously forecasted, the Commerce Department said in a separate report. GDP grew a revised 2.2% last quarter, not the 3.5% initially forecast. The downward revision was expected.
Home improvement retailer Home Depot (NYSE: HD - News) added to the housing picture by saying it doesn't expect the residential construction market to start improving until the end of this year and early next year. As a result, the company predicted that its earnings will decline between -4% to -9% this year and that sales growth will be flat to up 2%. The company nonetheless plans to invest up to $2.2 billion this year in improvements to its business. The figures were contained in a news release distributed in conjunction with an investor meeting today.
Among the day's top-performing stocks was Sprint Nextel (NYSE: S - News). The stock added 5% after the company announced better-than-expected results. The wireless carrier delivered a 32% increase in its Q4 profit. While the company increased its overall subscriber count, many were less-profitable "pay-as-you-go" customers. Monthly subscribers, which are more profitable, continue to defect from Nextel, which has suffered from quality issues and outdated phones. Subscribers can read our full analysis of Sprint's results in today's issue.
Merck (NYSE: MRK - News) produced a solid advance today after the drugmaker said it anticipates better-than-expected Q1 earnings and raised its full-year EPS guidance. The stock gained 2% in today's trading. Martha Stewart Living Omnimedia (NYSE: MSO - News), meanwhile, delivered a five-fold increase in its Q4 profit. The company said new products and strength in all of its businesses helped produce earnings of $16.2 million, or 31 cents a share, compared to $2.95 million, or 6 cents a share, last year. Revenue rose 15% to $97 million.
Published by BullMarket.com

Labels: HD, MRK, MSO, S

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Parallel Petroleum (NasdaqGM:PLLL - News) beat earnings Wednesday after the market closed with $0.29 EPS over a consensus of $0.12 EPS. PLLL's PowerRating is 4.
Tenaris (NYSE:TS - News) beat earnings on Wednesday afternoon, announcing $0.91 EPS over an expected $0.89 EPS. TS's PowerRating is 6.
Del Monte (NYSE:DLM - News) reports quarterly earnings on Thursday before the bell, with analysts looking for $0.22 EPS. DLM's PowerRating is 6.
Energy Partners (NYSE:EPL - News) is looking to report $0.05 EPS on Thursday before the market opens. EPL's PowerRating is 4.
LifeCell (NasdaqGS:LIFC - News) announces earnings on Thursday before the bell; look for $0.16 EPS. LIFC's PowerRating is 4.
Pride International (NYSE:PDE - News) should report $0.47 EPS Thursday morning. PDE's PowerRating is 5.
When Staples (NasdaqGS:SPLS - News) reports earnings Thursday before the action begins, look for $0.45 EPS. SPLS's PowerRating is 6.
**Correction: CarMax (NYSE:KMX - News) reports earnings March 29, not February 28 as reported yesterday.
PowerRatings are courtesy of PowerRatings.net

Labels: DLM, EPL, Hot Stocks, KMX, LIFC, PDE, PLLL, SPLS, TS

Barr Pharmaceuticals (NYSE:BRL - News) said it lost $390.9 million, or $3.67 a share, vs. a profit of $94.9 million, or 88 cents a share a year earlier. Excluding items, earnings for the quarter ending Dec. 31 would have been 83 cents a share. Revenue rose 79% to $584 million from last year's $325.5 million, with product sales growing 85% to $536.6 million. Analysts surveyed by Thomson Financial had been expecting earnings of 73 cents a share and revenue of $521.3 million, on average. Looking ahead, the Woodcliff Lake, N.J. pharmaceutical company expects 2007 adjusted earnings of $3.00 to $3.30 a share, surrounding analyst forecasts of a $3.23 a share.
Bitstream (NasdaqCM:BITS - News) shares fell after the Cambridge, Mass.-based software development company reported fourth-quarter net earnings of $630,000, or 6 cents a share, down from $788,000, or 8 cents a share, in the year-ago period. Revenue rose to $5.55 million from $4.62 million.
BlackRock Inc. (NYSE:BLK - News) said it is raising its quarterly cash dividend 60% to 67 cents a share from 42 cents. The dividend is payable March 23 to shareholders of record as of March 7, the New York-based investment management firm said.
Blount International (NYSE:BLT - News) shares slumped after the Portland, Ore.-based outdoor products and power equipment company reported fourth-quarter earnings of $9.04 million, or 19 cents a share, down from $56.2 million, or $1.17 a share, in the year-ago period. The company said the results in the year-ago quarter were favorably impacted by a significant income tax benefit. Revenue fell to $158.1 million from $176.9 million. Analysts polled by Thomson Financial were expecting a per-share profit of 20 cents on revenue of $156.2 million. Blount expects 2007 sales in a range of flat to down 3%, and operating income of $85 million to $90 million.
Emcore Corp. (NasdaqGM:EMKR - News) filed to expand the scope of its patent infringement lawsuits against Optium Corp. (NasdaqGM:OPTM - News) to include one additional patent and an additional product line.
E.W. Scripps & Co. (NYSE:SSP - News) cut its first-quarter earnings forecast, citing greater-than-expected weakness at its newspapers. The Cincinnati-based media company said it now expects a profit from continuing operations of 33 to 37 cents a share in the March quarter, down from its previous estimate of 39 cents to 43 cents a share. A year earlier, Scripps earned 49 cents per share. The company pointed to lower-than-expected newspaper advertising sales, costs related to a leadership change at the retail search engine Shopzilla, and weaker-than-expected results for its Internet search business.
Fremont General Corp. (NYSE:FMT - News) shares slid after the mortgage lender said late Tuesday it will postpone the release of its fourth quarter and full-year 2006 results, which was scheduled for Wednesday. Santa Monica-based Fremont also said it will not file its 2006 Form 10-K by March 1.
Idera Pharmaceuticals (AMEX:IDP - News) was initiated with a buy rating at Canaccord Adams.
Integra LifeSciences (NasdaqGS:IART - News) said fourth-quarter net income slipped to $10.1 million, or 34 cents a share, from $10.6 million, or 33 cents a share, while revenue climbed 72% to $125 million on sales of acquired products, surgical instruments and ultrasonic surgical systems. Adjusted for equity-based compensation charges, acquisition-related charges, and other items, it would've earned 50 cents a share compared to 37 cents a share last year. Analysts polled by Thomson Financial expected earnings of 42 cents a share on revenue of $121 million. For 2007, earnings are seen between $1.70 and $1.80 a share on revenue between $508 million and $520 million, growing to $2.05 to $2.25 a share in earnings in 2008 on revenue between $570 million and $590 million.
Interpublic Group (NYSE:IPG - News) swung to a fourth-quarter profit, boosted by lower severance expenses, professional fees and production costs. The New York advertising and marketing services company had fourth-quarter earnings of $69.1 million, or 11 cents a share, compared with a loss of $22.9 million, or 8 cents, a year earlier. Interpublic said revenue fell 1%, to $1.88 billion from $1.9 billion a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 21 cents a share on revenue of $1.88 billion. In addition, Interpublic said it has re-mediated a significant number of its existing material weaknesses, and it remains on track to be compliant with the Sarbanes-Oxley Act by the time it files its 2007 annual report.
Joy Global (NasdaqGS:JOYG - News) shares dropped after the company posted a first-quarter profit of $60 million, or 51 cents a share, on sales of about $560 million. The average estimate of analysts polled by Thomson Financial was for earnings of 60 cents a share in the January period on revenue of $629.4 million.
LECG Corp.'s (NasdaqGS:XPRT - News) fourth-quarter net income fell 39% to $3.52 million, or 14 cents a share, from $5.81 million, or 23 cents a share, a year earlier. The Emeryville, Calif., economic consulting company's revenue grew 22% to $88.9 million form $73 million in the year-ago period.
Magellan Health Services Inc. (NasdaqGS:MGLN - News) reported fourth-quarter net income of $22.5 million, or 58 cents a share, down from $52.2 million, or $1.38 a share, earned in the same period during 2005. Quarterly revenue generated by the Avon, Conn.-based health-care management services provider reached $461.3 million from the prior year's $436.4 million. Earnings in the latest quarter benefited from one-time favorable contractual settlements of $5.1 million as well as out-of-period favorable care development of $1.7 million, Magellan Health said. The year-earlier period reflected in part the sale of certain assets to Aetna. Analysts were looking for earnings of 48 cents a share on revenue of $464 million, according to estimates compiled by Thomson Financial.
Ormat Technologies (NYSE:ORA - News) swung to a fourth-quarter profit from a year-earlier loss on 13% higher revenue. Earnings were $4.2 million, or 12 cents a share, compared with a loss of $5.1 million, or 16 cents, in the year-earlier period. Revenue reached $66.7 million from $58.8 million. In the latest period, the earnings reflect 1 cent a share from compensation expense. The year-ago loss reflects a $10.3 million charge to refinance debt.
PRA International (NasdaqGS:PRAI - News) shares slumped after the Reston, Va.-based provider of clinical development services reported fourth-quarter net income of $5.72 million, or 23 cents a share, compared with $7.5 million, or 31 cents a share, in the year-ago period. Revenue rose to $92.5 million from $76.5 million. Analysts polled by Thomson Financial were expecting a per-share profit of 29 cents on revenue of $81.7 million. PRA forecast 2007 earnings of 48 cents to 58 cents a share and adjusted earnings 95 cents to $1.05 a share. The company expects 2007 service revenue, excluding reimbursed out-of-pocket costs associated with client projects and programs, to be in the range of $330 million to $350 million. Analysts are looking for earnings of $1.28 a share.
Salary.com Inc. (NasdaqGM:SLRY - News) said underwriters of its initial public offering have exercised in full their over-allotment option to buy an additional 855,000 shares of common stock. The shares were purchased at the IPO price of $10.50 a share.
Salix Pharmaceuticals (NasdaqGM:SLXP - News) forecast earnings of 85 cents a share on total product revenue of about $260 million for fiscal 2007. The current average estimate of analysts polled by Thomson Financial is for a profit of 87 cents a share for the year.
Sierra Health Services Inc. (NYSE:SIE - News) expects to incur a loss in fiscal 2007, due primarily to an enhanced version of its Medicare Part D prescription drug program. In January, Sierra began offering an enhanced version of its PDP, which provided prescription-drug benefits through the coverage gap.
Syniverse Holdings Inc.'s (NYSE:SVR - News) fourth-quarter net income surged to $59.1 million, or 88 cents a share, from $15.3 million, or 23 cents a share, a year ago. Cash net income was 20 cents a share, the company said. The Tampa, Fla., provider of technology services said revenue increased 2.7% to $85.8 million from $83.6 million a year ago.
URS Corp. (NYSE:URS - News) reported fourth-quarter net earnings of $26.3 million, or 51 cents a share, up from $25.9 million, or 51 cents a share, in the year-ago period. Revenue at the San Francisco-based engineering and construction management company rose to $1.09 billion from $1.07 billion.
Published By MarketWatch

Labels: BITS, BLK, BLT, BRL, EMKR, FMT, IART, IDP, IPG, JOYG, MGLN, ORA, PRAI, SIE, SLRY, SLXP, SSP, SVR, URS, XPRT

New Plan Excel Realty Trust (NYSE:NXL - News) shares gained after the New York-based company late Tuesday agreed to be acquired by Centro Properties Group in a deal valued at $6.2 billion including debt. Australia-based Centro Properties has agreed to pay $33.15 in cash for New Plan, representing a 12.9% premium to New Plan's closing share price on Tuesday. The deal will be completed through a cash tender offer, which is expected to begin within 10 business days. The tender offer is expected to close in the second quarter.
Novatel Wireless Inc.'s (NasdaqGM:NVTL - News) fourth-quarter net income rose sharply to $2.4 million, or 8 cents a share, from $121,000, or less than a penny a share, a year earlier, helped by a strong broadband market and non-PC card products. Revenue rose 58% to $77 million from $48.7 million a year earlier.
Palomar Medical Technologies (NasdaqGS:PMTI - News) was upgraded to buy from hold at W.R. Hambrecht following a recent correction in the company's stock price, as well as a partnership inked by a competitor of the maker of laser-based medical and cosmetic products. "This morning's partnership announcement between Procter & Gamble Co. and Syneron Medical Ltd. ...validates our belief that the light-based home-use market is imminent and very real," analyst Emily Johnson wrote in a research note. Johnson also cited efforts by Palomar to revitalize its international sales and a lack of concern regarding the company's recent sales personnel turnover. A price target of $49 was set as well.
R.J. Reynolds Tobacco Co. (NYSE:RAI - News) said an appeals court upheld the company's view that its market-share based discount programs are "size-blind" and not discriminatory. The Winston-Salem, N.C., tobacco company said the 6th Circuit Court of Appeals upheld a lower court's ruling dismissing an antitrust lawsuit brought by Smith Wholesale Co. of Tennessee, and 18 other wholesalers.
South Jersey Industries Inc.'s (NYSE:SJI - News) fourth-quarter net income rose to $19.9 million, or 68 cents a share, from $13.7 million, or 47 cents a share, a year earlier. The energy holding company said Wednesday total expenses fell to $210.4 million from $257.7 million. Revenue at the Folsom, N.J., company decreased 12% to $250.3 million from $285.4 million. For 2007, South Jersey Industries expects income from continuing operations before items to increase by more than a 7% from a year ago.
Southwest Gas Corp.'s (NYSE:SWX - News) fourth-quarter net income rose 54% to $46.7 million, or $1.11 a share, from $30.3 million, or 76 cents a share, helped by colder weather than a year earlier. The Las Vegas natural gas company's revenue rose 14% to $565.1 million from $497 million a year earlier.
Sprint Nextel (NYSE:S - News) said fourth-quarter profit rose 34% to $261 million, or 9 cents a share, with operating revenue up 7% to $10.44 billion. The Reston, Va. carrier said 9% wireless revenue growth after adding 742,000 customers offset a 2% long-distance revenue decline. On an adjusted basis, its profit would've climbed 26% to 29 cents a share. Analysts polled by Thomson Financial expected earnings of 28 cents a share on revenue of $10.39 billion.
SPX Corp. (NYSE:SPW - News) said that its fourth-quarter net income rose to $86.8 million, or $1.47 a share, from $47.4 million, or 72 cents a share, a year ago. Adjusted earnings per share totaled $1.18, in line with analyst forecasts. Sales at the flow technology company rose to $1.3 billion, from $1.1 billion a year ago, driven by a 11.5% rise in organic revenue, acquisitions and currency fluctuations. The company said that its strong performance has continued in 2007 and it's raising its first quarter earnings per share guidance to a range of 47 cents to 52 cents, from a previous range of 45 cents to 50 cents. It also tightened its annual EPS guidance range to $3.85 to $3.95 from a prior range of $3.80 to $3.95.
StarTek Inc. (NYSE:SRT - News), the Denver provider of business-process-outsourcing services to the communications industry, reported fourth-quarter earnings per share fell 27% on 4.4% lower revenue. The company earned 8 cents a share compared with 11 cents, as revenue fell to $59.1 million. Gross-profit margin for the quarter shrank to 14.3% from 15.8%. StarTek said "revenue from several clients declined due to challenges in hiring and retaining enough agents to respond to client demands and unfavorable changes in revenue mix."
Wynn Resorts Ltd. (NasdaqGS:WYNN - News) reported a fourth-quarter net loss of $55.4 million, or 55 cents a share, compared with a net loss of $9.89 million, or 10 cents a share, during the year-ago period. Net revenue at the Las Vegas-based casino resort operator rose to $563.6 million from $269.4 million.
Published By MarketWatch

Labels: NVTL, NXL, PMTI, RAI, S, SJI, SPW, SRT, SWX, WYNN

Apple Inc. (NasdaqGS:AAPL - News) Chief Operating Officer Tim Cook reiterated that the company remains on track to release its iPhone mobile-phone product in June, and that Apple expects to sell 10 million of the devices in 2008.
Audible Inc. (NasdaqGM:ADBL - News) reported a fourth-quarter net loss of $700,000, or 3 cents a share, compared with a net loss of $2.18 million, or 9 cents a share, in the year-ago period. Revenue at the Newark, N.J.-based provider of Internet audio content rose to $23.3 million in the latest quarter from $18.3 million a year ago. The stock was upgraded to buy from hold at Jefferies & Co.
BEA Systems (NasdaqGS:BEAS - News) was upgraded to peer perform from underperform at Bear Stearns.
CDC Corp. (NasdaqGM:CHINA - News) lifted its financial outlook for 2007, saying it now expects adjusted net income of $57 million to $62 million, above its prior forecast of $55 million to $60 million. The company expects revenue of $415 million to $420 million for the year, a boost from its previous estimate of $401 million to $411 million.
Ciena (NasdaqGS:CIEN - News) was upgraded to overweight from neutral by J.P. Morgan, as the broker said the recovery in the optical market is greater than it first expected.
Deckers Outdoor Corp.'s (NasdaqGS:DECK - News) preliminary fourth-quarter results indicate net income nearly doubled to $23.5 million, or $1.82 a share, from $12.1 million, or 94 cents a share, a year earlier. The Goleta, Calif., maker of outdoor footwear and apparel said net sales increased 37% to $124.4 million from $91 million a year ago.
Dollar Thrifty Automotive Group (NYSE:DTG - News) reported a fourth-quarter loss of $2.7 million, or 11 cents a share, down from a year-ago profit of $8.2 million, or 31 cents a share. The latest results include 10 cents a share in transition costs related to the outsourcing of information technology services and a charge of 5 cents a share from a decrease in the fair value of derivatives, while last year's performance reflects a gain of 11 cents a share from an increase in the fair value of derivatives. Revenue rose 11.5% in the three months ended Dec. 31 to $392.8 million from $352.4 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a loss of a penny per share in the December period. The company said the latest results reflect a very strong pricing environment, as well as significantly higher vehicle depreciation and interest costs compared to last year. Looking ahead, the Tulsa, Okla., car rental company sees earnings of $2.50 to $2.90 a share in 2007. Wall Street's current consensus estimate is for a profit of $2.62 a share for the year.
Dollar Tree Stores Inc.'s (NasdaqGS:DLTR - News) fiscal fourth-quarter net income rose to $97.6 million, or 96 cents a share, from $86.5 million, or 81 cents a share, a year ago. A Thomson Financial survey of analysts, on average, predicted earnings of 94 cents a share for the quarter. Analysts' estimates usually exclude items. The Chesapeake, Va., discount retailer's net sales for the quarter ended Feb. 3 rose 22% to $1.32 billion from $1.08 billion a year ago, boosted by an extra sales week in the current quarter. The company expects first-quarter earnings of 32 cents to 35 cents a share on sales of $935 million to $955 million.
Dycom Industries Inc. (NYSE:DY - News) shares rose after the Palm Beach Gardens, Fla.-based engineering and construction services provider reported fiscal second-quarter net earnings of $5.59 million, or 14 cents a share, up from $3.87 million, or 10 cents a share, in the year-ago period. Revenue rose to $258.3 million from $237.1 million. Analysts polled by Thomson Financial were expecting a per-share profit of 13 cents on revenue of $253.4 million. Dycom forecast fiscal third-quarter earnings from continuing operations of 23 cents to 28 cents a share on revenue of $275 million to $295 million. Analysts are looking for a per-share profit of 24 cents on revenue of $275 million.
Goodyear Tire & Rubber Co. (NYSE:GT - News) plans to record a charge of $65 million in the first quarter of 2007 for changes to its benefit and pension plans. The Akron, Ohio-based tire maker said, among other changes, current and future salaried retirees will contribute more toward the cost of their medical benefits and that the company would freeze its defined benefit pension plan for current salaried employees, replacing it with 401(k) retirement accounts. The changes will be phased in over a two-year period, and Goodyear expects savings of $80 million to $90 million in 2007, $100 million to $110 million in 2008, and $80 million to $90 million in 2009 and beyond.
Hospira (NYSE:HSP - News) reported a nearly 80% jump in fourth quarter profit Wednesday on higher product volumes, higher prices and favorable currency exchange. The company earned $47.4 million, or 30 cents a share, on the period - up from $26.6 million, or 16 cents. On an adjusted basis, Hospira said it would have earned 43 cents a share, vs. 32 cents in the last three months of 2005. Revenue came in at $706.5 million, a gain of 9.3%. The average estimate of analysts polled by Thomson Financial was for Hospira to earn 38 cents a share on $674 million in revenue.
Kenneth Cole Productions Inc. (NYSE:KCP - News) reported fourth-quarter net earnings of $7.99 million, or 39 cents a share, up 6.9% from $7.48 million, or 37 cents a share, in the year-ago period. Revenue in the quarter ended Dec. 31 rose to $122.4 million from $119.8 million.
King Pharmaceuticals (NYSE:KG - News) reported fourth-quarter earnings of $37 million, or 15 cents a share, up from a year-ago loss of $95 million, or 39 cents a share. Excluding items, such as charges from asset impairment and an arbitration settlement, the company earned $98.8 million, or 41 cents a share, in the latest quarter. Revenue rose in the three months ended Dec. 31 to $512.9 million from $423.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 37 cents a share in the December period on revenue of $480.6 million.
Komag (NasdaqGS:KOMG - News) shares rose after American Technology Research analyst Shaw Wu lifted his rating on the hard-disk maker's stock to neutral from sell. Wu said Komag is benefitting from more sales to its largest customer, Seagate Technology , which accounts for 37% of Komag's revenue. However, Wu warned that Komag faces other fundamental challenges as it deals with rising costs and competition involving a shift to newer disk-recording technologies.
L-3 Communications (NYSE:LLL - News) was upgraded to neutral from underweight by J.P. Morgan, with the brokerage saying the stock should have limited downside given its high free cash flow yield. "We believe 2007 could be a more challenging year for defense stocks, and given L-3's more modest valuation, we no longer expect it to underperform the group," the broker said.
Leap Wireless International (NasdaqGS:LEAP - News) shares advanced after the San Diego-based provider of wireless communications services reported a fourth-quarter net loss of $39.4 million, or 60 cents a share. In the same quarter last year, the company posted a net profit of $4.95 million, or 8 cents a share. Revenue rose to $315.5 million from $228.9 million. Analysts polled by Thomson Financial were expecting a per-share loss of 35 cents on revenue of $316 million. Leap said it added 262,000 net new customers in the fourth quarter, and expects to add 260,000 to 320,000 net new customers in the first quarter.
Martha Stewart Living Omnimedia (NYSE:MSO - News) said fourth-quarter net income jumped to $16.2 million, or 31 cents a share, from $2.9 million, or 6 cents a share in the year-ago period. Total revenue rose to $97 million from $84.6 million. Analysts, on average, expected it to earn 25 cents a share on revenue of $95 million, according to Thomson Financial. For 2007, the company is expecting revenue in the range of $330 million to $340 million, operating income in the range of $5.5 million to $8.5 million and adjusted EBITDA in the range of $32 million to $35 million, including an investment of $8 million in "Blueprint" magazine.
Medical Action Industries (NasdaqGS:MDCI - News) was upgraded to buy from neutral at Sidoti & Co.
Merck & Co. (NYSE:MRK - News) said it expects its first-quarter profit will be 63 to 67 cents a share, excluding restructuring charges related to site closures and position eliminations, and targets reported first-quarter earnings per share of 58 cents to 64 cents. Whitehouse Station, N.J.-based Merck cited early revenue trends across Merck's range of products. The company also raised its anticipated 2007 earnings forecast range to $2.55 to $2.65 a share, excluding items related to site closures and position eliminations, and its full-year 2007 reported earnings range to $2.40 to $2.55 a share. Analysts, on average, expect it to earn 60 cents a share for the first quarter and $2.62 a share for the year, according to Thomson Financial. Merck said its forecasts do not reflect the establishment of any reserves for any potential liability relating to the Vioxx litigation.
Midwest Air Group Inc. (AMEX:MEH - News) , citing its own growth forecasts, urged its shareholders again Wednesday to reject a takeover offer from AirTran Holdings Inc. "AirTran's low-cost carrier business model is in trouble. By virtually any metric, AirTran's business is deteriorating," according to a letter Midwest sent to its shareholders.
Published By MarketWatch

Labels: AAPL, ADBL, BEAS, CHINA, CIEN, DECK, DLTR, DTG, DY, GT, HSP, KCP, KG, KOMG, LEAP, LLL, MDCI, MEH, MRK, MSO

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Bear Sterns Apr 170 Calls (NYSE:BSC - News). BSC's PowerRating is 7.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
New Century Financial Apr 20 Puts (NYSE:NEW - News). NEW's PowerRating is 8.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Goldman Sachs Mar 210 Calls (NYSE:GS - News). GS' PowerRating is 7.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
iMCSI Emerging Markets Index Fund Mar 105 (AMEX:EEM - News). EEM's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Questar Corp. (NYSE:STR - News). STR's PowerRating is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Public Storage (NYSE:PSA - News). PSA's PowerRating is 7.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Office Depot (NYSE:ODP - News). ODP's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: BSC, EEM, GS, NEW, ODP, PSA, stock options, STR

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Guess (NYSE:GES - News). GES's PowerRating is 7.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Allegheny Technologies (NYSE:ATI - News). ATI's PowerRating is 7.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Boeing (NYSE:BA - News). BA's PowerRating is 6.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Barnes & Noble (NYSE:BKS - News). BKS's PowerRating is 7.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Computer Sciences (NYSE:CSC - News). CSC's PowerRating is 7.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Las Vegas Sands (NYSE:LVS - News). LVS's PowerRating is 8.
Bearish
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Global Industries (NasdaqGS:GLBL - News). GLBL's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: ATI, BA, BKS, CSC, GES, GLBL, Hot Stocks, LVS

Bullish calls:
Celgene (NasdaqGS: CELG): ' ... down $3 - where Bob Hugin [CEO] came on our show and assured us that things are good. So I'm going... CELG, particularly if you can get it under $50, which would be a gift.'AT&T (NYSE: T - News): ' Tomorrow morning, T - It would be a gift if that stock opened down. It's got yield protection. It's got a buyback. It's got superb management. It fits all my criteria. 'J.C. Penney (NYSE: JCP - News): 'I think you can possibly own a JCP, which is buying back stock and people think it missed the quarter, but Mike Ullman [CEO] is saying good things.'Procter & Gamble (NYSE: PG - News)Colgate (NYSE: CL - News)Diageo (NYSE: DEO - News)Wyndham (NYSE: WYN - News): 'I've been doing a lot of work on WYN, which is a spinoff of Cendant. I like that more [than CHH].'Hilton (NYSE: HLT - News): 'You know I've been a big fan of HLT.'
Bearish calls:
Pain Therapeutics (NasdaqGM: PTIE): ' ... even though PTIE seems to have really good earnings power coming up next year, I think it's too risky. I honestly would rather see you in a CELG.'Salesforce.com (NYSE: CRM - News): 'I think the stock should be lower. I do not get why that stock hangs in in this bad market. I don't want to own CRM, and I don't want anyone else to either. I invite the CEO if he wants to come on and talk about his stock selling.'Retail Ventures (NYSE: RVI - News): 'In this market, when you're worried, and you have a stock that's a point off its 52-week high, we are strictly in a no-prisoners mode. You take that, and you ring the register.'Playtex Products (NYSE: PYX - News): 'I like the cohort. I believe that that kind of consumer-related business is not going to have a slowdown here... But why do you need to be in PYX - a point off its high - when you can be in PG? When you can be in CL? When you can be in DEO, which just reported a great quarter?'Choice Hotels International (NYSE: CHH - News): 'It's a franchiser of hotels ... I don't think I need to go down in the food chain to your name. I've got a bunch of them that I think are cheaper and better, and those are the ones that I want to go with.'
Published By SeekingAlpha

Labels: CELG, CHH, CL, CRM, DEO, HLT, JCP, Jim Cramer, Lightning Round, Mad Money, PG, PTIE, PYX, RVI, WYN

Protect Yourself
Cramer discussed the market's 416 point plunge, the worst one-day drop in years, which began with an "overheated market" in China. He added, "my sources indicate a big options trade went awry and some concentrated ETF selling ... simply crushed this market as easily as a knife through butter." Cramer suggested three safeguards to protect investors against "the whims of a broken market": stocks which pay dividends equal or higher than Treasuries after taxes, bargain stocks with great buybacks and stocks which are defensive enough to weather a worldwide slowdown. He added the only way to be safe is to invest in companies which meet at least one of these criteria.
Trust the Big Five : Merrill Lynch (NYSE: MER - News), Lehman Brothers (NYSE: LEH - News), Morgan Stanley (NYSE: MS - News), Bear Stearns (NYSE: BSC - News), and Goldman Sachs (NYSE: GS - News)
There is hope in the five major brokers, says Cramer, all of which have great management. He calls these five the "best-run companies on Earth" and notes they are selling at a 30% discount, which will not last. They are low because they have been getting hit for the last five days, and Cramer warns they will go down before going back up, but he would start a position as they drop. Although he likes all five, Cramer's top pick is GS, and calls it "the best-run I've ever seen it."

Don't Panic
Cramer notes that, when the market breaks, people make the mistake of panic selling and regret it later. He would use the down time as an opportunity to buy good stocks on the cheap. There will be buying opportunity, according to Cramer, since he doubts the drop is finished, just as the 1987 crash continued after that fateful first day. Cramer reiterated his warning to look for buybacks and dividends when buying.
CEO Interview: James Morgan of Daktronics (NasdaqGS: DAKT)
When Cramer asked James Morgan why Daktronics would still be a good investment after missing its quarter, he responded that the disappointment was related to projections for the coming quarter, drivers of growth are still in place and the company will be able to respond to anticipated growth. "One of the limiting factors is getting though the regulatory constraints that exist," he added, saying that regulations are preventing digital billboards from going up more quickly. Cramer comments that he is ambivalent about DAKT and gives it a "don't buy."

Labels: BSC, DAKT, GS, Jim Cramer, LEH, Mad Money, MER, MS

The number of shares of NYSE Group Inc.'s stock trading on the public market is about to explode.
The first event to inject more shares into the market comes next month. The operator of the New York Stock Exchange prevents former seat-holders, who received stock when NYSE went public in March 2006, from selling their shares.

That lockup expires March 7, and JPMorgan Securities analyst Kenneth B. Worthington foresees the expiration freeing 24.6 million NYSE shares, increasing the exchange's outstanding stock by half.
There are two types of former NYSE members, Worthington wrote in a research report. The majority bought membership as an investment, hoping to rent seats to traders. Worthington said he senses most of these will sell their stock once it is unlocked.
The rest are stock brokers who sought to bolster their trading on the Big Board. Worthington said they will sell, too, but not until later.

Labels: NYSE Group Inc., NYX

China's main stock index opened lower on Wednesday but recovered quickly and moved into positive territory as heavily weighted financial blue chips climbed.
The benchmark Shanghai Composite Index (^SSEC - News) opened down 1.34 percent, but after five minutes stood 1.18 percent higher at 2,804.454 points.
On Tuesday the market plunged 8.84 percent, its biggest fall in a decade, in a sell-off that jolted global financial markets.
Analysts said Chinese investors remained nervous after Tuesday's rout but recently created funds had entered the market to accumulate shares for long-term investment.
Officials denied various rumors that fueled Tuesday's tumble, including talk that China might impose a stock capital gains tax and that the head of the securities regulator might step down.

Chinese stocks plunged nearly 9 percent Tuesday, their biggest drop in a decade, rattling markets from Hong Kong to Singapore and as far away as New York amid fears of a slowdown in China's economy.
Investors were also spooked by comments Monday from former Federal Reserve Chairman Alan Greenspan, who said a recession in the U.S. was "possible" later this year.
One day after sending Shanghai's benchmark index to a record, investors dumped stocks to lock in profits amid speculation about a fresh round of austerity measures from Beijing to slow the nation's sizzling economy. The Shanghai Composite Index tumbled 8.8 percent, or 268.81 points, to close at 2,771.79, its largest decline since it fell 8.9 percent on Feb. 18, 1997, at the time of the death of Communist Party elder Deng Xiaoping.

Labels: Chinese Economy, Chinese Stocks

Stocks had their worst day of trading since the Sept. 11, 2001, terrorist attacks Tuesday, briefly hurtling the Dow Jones industrials down more than 500 points on a worldwide tide of concern that the U.S. and Chinese economies are stumbling and that share prices have become overinflated.
The steepness of the market's drop, as well as its global breadth, signaled a possible correction after a long period of stable and steadily rising stock markets, which had not been shaken by such a volatile day of trading in several years.
A 9 percent slide in Chinese stocks, which came a day after investors sent Shanghai's benchmark index to a record high close, set the tone for U.S. trading. The Dow began the day falling sharply, and the decline accelerated throughout the course of the session before stocks took a huge plunge in late afternoon as computer-driven sell programs kicked in.
The Dow fell 546.02, or 4.3 percent, to 12,086.06 before recovering some ground in the last hour of trading to close down 416.02, or 3.29 percent, at 12,216.24, according to preliminary calculations. Because the worst of the plunge took place after 2:30 p.m., the New York Stock Exchange's trading limits, designed to halt such precipitous moves, were not activated.
The decline was the Dow's worst since Sept. 17, 2001, the first trading day after the terror attacks, when the blue chips closed down 684.81, or 7.13 percent.
The drop hit every sector of stocks across the market. Riskier issues such as small-cap and technology stocks suffered the biggest declines.

Labels: Global Market Plunge