Jim Cramer Blog

Rupert Murdoch edged closer to his goal of owning Wall Street Journal publisher Dow Jones & Co. late Tuesday as the board of his News Corp. media conglomerate signed off on the $5 billion deal, a person with knowledge of the matter said.
The Journal reported on its Web site late Tuesday that Dow Jones' board had also approved the deal, removing the last significant hurdle, but a company spokeswoman declined to comment.
If he succeeds, as seems likely, Murdoch would get one of the great trophies of U.S. journalism and a newspaper that is considered required daily reading among the business and power elite.
The deal would also expand Murdoch's already massive global media and entertainment empire News Corp., which owns the Fox broadcast network; Fox News Channel; the Twentieth Century Fox movie and TV studio; MySpace; newspapers in Australia and the U.K.; and several satellite TV broadcasters.

Labels: Dow Jones and Co. Inc., News Corp, NWS

Equity prices started the day strong on upbeat economic data, but the rally evaporated in the afternoon heat as credit market fears once again took hold of the market. At the close, the Dow Jones Industrials lost -146 points, while the Nasdaq dropped -37. The broader S&P also gave up -19 points on the session. Crude oil ended the day at an all-time closing high of $78.21, up $1.38 on the day.
Several data points came out today in the economic arena, chief among them consumer spending figures. The Commerce Department reported that consumer spending rose 0.1% in June, down from 0.5% in May. The dropoff in spending was due to still falling home prices as well as higher fuel costs. Incomes rose 0.4%. The Conference Board also said today that consumer confidence rose to a six-year high of 112.6. Meanwhile, the Association of Purchasing Management said that construction spending unexpectedly fell last month.
On the corporate earnings front, General Motors (NYSE: GM - News) said net income hit $891 million, or $1.56 a share, compared to a loss of -$3.48 billion, or -$5.98 a share. The automotive giant said revenues declined -13% to $46.8 billion. Excluding charges related to its restructuring, it would have earned $2.48 a share, which handily beat analyst estimates of $1.13 a share. Investors sent the shares up mid-day, but they fell with the overall market at the end of the day.
Elsewhere in earnings, tech giant Sun Microsystems (Nasdaq: SUNW - News) said it earned $329 million, or 9 cents a share, in its fiscal fourth quarter. It reported a loss of -$301 million, or -9 cents a share, in the same period a year ago. Revenues were little changed at $3.84 billion from $3.83 billion last year. Analysts were looking for a profit of 5 cents a share. Its management attributed its profit beat to cost cutting measures as its operating expenses fell by -25% in the quarter compared to last year. Shares rose 4.3% on the trading session.
Shares of the largest U.S. refiner Valero (NYSE: VLO - News) fell 3.0% after the company said it earned $2.25 billion, or $3.89 a share, up from $1.9 billion, or $2.98 a share, last year. Revenues fell -5.7% to $24.2 billion from $25.6 billion last year. Despite the falloff in revenue, higher refining margins and strong demand for petroleum products drove profits.
In other news, consumer products and pharmaceutical maker Johnson & Johnson (NYSE: JNJ - News) said that it would be eliminating -4% of its workforce, which will save the company $1.3-1.6 billion next year. The move comes amid two of its top-selling drugs facing generic competition. Shares rose 0.7%.
By the BullMarket.com Staff

Labels: GM, JNJ, SUNW, VLO

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Chipotle Mexican Grill, Inc. (NYSE:CMG - News) beat earnings estimates after Tuesday's close. The company reported $0.60 EPS versus estimates of $0.44 EPS. CMG's PowerRating is 5.
Whole Foods Markets Inc. (NasdaqGS:WFMI - News) reported $0.35 EPS versus estimates of $0.33 EPS after the close on Tuesday. WFMI's PowerRating is 5.
Arcelor Mittal (NYSE:MT - News) is expected to announce $1.82 EPS on Wednesday morning. MT's PowerRating is 6.
Cigna Corp. (NYSE:CI - News) is looking to report $0.88 EPS when the company announces earnings on Wednesday morning. CI's PowerRating is 6.
Mastercard Inc. (NYSE:MA - News) should report $1.32 EPS early Wednesday. MA's PowerRating is 6.
Time Warner (NYSE:TWX - News) is looking to have EPS of $0.20 on Wednesday before the market opens. TWX's PowerRating is 5.
Teva Pharmaceutical Industries (NasdaqGS:TEVA - News) should report $0.55 earnings per share early Wednesday. TEVA's PowerRating is 6.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CI, CMG, Hot Stocks, MA, MT, TEVA, TWX, WFMI

Hilton Hotels Corp. reported strong earnings growth Tuesday in the second quarter as it prepared to be acquired by the Blackstone Group.
The worldwide hotel and resort company reported net income of $165 million, or 40 cents a share, for the quarter ended June 30, up from $144 million, or 35 cents per share, in the same period last year.
Revenue increased to $2.085 billion from $2.005 billion in the year-ago period.
Excluding one-time items, earnings per share increased to 38 cents for the quarter, the company said.
The results beat expectations from analysts, who had been looking for earnings of 33 cents per share and revenue of $2.07 billion, according to Thomson Financial.

Labels: Hilton Hotels Corp., HLT

General Motors Corp. earned $891 million in the second quarter, a huge reversal from the $3.4 billion loss it posted in the same period last year and the third straight quarterly profit for the nation's largest automaker.
GM said Tuesday the latest results reflected improved sales in growing international markets.
Its results surpassed Wall Street expectations, and its shares rose more than 2 percent in midday trading.
"Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings," Chairman and Chief Executive Rick Wagoner said in a statement.
The automaker, though, continued to lose money in its home market, North America, where it reported a net loss from continuing operations of $39 million. That was a vast improvement over the second quarter of last year, when the company reported a net loss of $3.95 billion in North America.

Labels: General Motors Corporation, GM

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 Underpriced 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.
Goldman Sachs Sep 230 Calls (NYSE:GS - News). GS' PowerRating is 5.
Most Underpriced 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.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News). FRO's PowerRating is 6.
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.
Mastercard Inc. Aug 185 Calls (NYSE:MA - News). MA's PowerRating is 6.
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.
Chipotle Mexican Grill, Inc. Aug 80 Puts (NYSE:CMG - News). CMG's PowerRating is 5.
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.
TD Ameritrade Holding Corporation (NasdaqGS:AMTD - News). AMTD's PowerRating is 6.
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.
Utilities Select Sector SPDR (AMEX:XLU - News). XLU's PowerRating is 5.
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.
Goodyear Tire & Rubber Co. (NYSE:GT - News). GT's PowerRating is 7.
PowerRatings are courtesy of TradingMarkets.com

Labels: AMTD, CMG, FRO, GS, GT, MA, stock options, XLU

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
Our research shows that stocks exhibiting this price behavior, while trading above their 200-day moving average, have on average, shown positive returns 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. To learn more about our research into stocks exhibiting this type of behavior, go to TradingMarkets.com.
Gaps Down 5% or More: Radioshack (NYSE:RSH - News). RSH's PowerRating is 8.
Laps Down 5% or More: Elan (NYSE:ELN - News). ELN's PowerRating is 8.
5+ Consecutive Down Days: Harvest Natural Resources (NYSE:HNR - News). HNR's PowerRating is 9.
5+ Consecutive Lower Lows: Checkpoint Systems (NYSE:CKP - News). CKP's PowerRating is 9.
2-Period RSI Below 2: O2Micro International (NasdaqGS:OIIM - News). OIIM's PowerRating is 9.
Bearish
Our research shows that stocks exhibiting this price behavior, while trading below their 200-day moving average, have on average, shown negative returns 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
5+ Consecutive Up Days: Nomura (NYSE:NMR - News). NMR's PowerRating is 3.
Stocks Up 10% or More: Vertex Pharmaceuticals (NasdaqGS:VRTX - News). VRTX's PowerRating is 3.

Labels: CKP, ELN, HNR, Hot Stocks, NMR, OIIM, RSH, VRTX

No-Go for Bonuses
While the mortgage crisis has been a Main Street issue for six months, it has now become a Wall Street issue; "The bonus pool is completely in doubt now," Cramer said. "If you had done something really great in mortgages, I think now you're going to get laid off. The table of employment in mortgages and private equity is just way too high." The recent aggressive hiring in private equity and mortgages is going to be reversed through massive downsizing, Cramer predicted, and since those two divisions were responsible major earnings, these financial stocks are "not going to be cheap." He added that banks, "the ones with very big deposit bases -- I think that they will be purchased after they go down lower," and adds Barclays would be wiser to consider buying Countrywide, Washington Mutual, Bank of America, or even Wachovia rather than ABN Amro. "I think anything's possible as these stocks continue to go down," Cramer said. "We have a very weak dollar, so these companies are being put on double sale, and I really genuinely believe that they will not be independent at this pace."

Labels: Jim Cramer, Wall Street Confidential

Honeywell (NYSE: HON - News), Corning (NYSE: GLW - News), Schlumberger (NYSE: SLB - News), United Technologies (NYSE: UTX - News) and Boeing (NYSE: BA - News): After Friday's selloff which was sparked by a trading glitch, Cramer took another look at companies with outstanding earnings reports, and concluded HON, GLW and SLB are buys as well as UTX and BA which benefitted from overseas exposure. Cramer believes if the glitch had not happened, there might have been a rally on Friday instead of a selloff.

Labels: BA, GLW, HON, Jim Cramer, Jim Cramer's Stop Trading, SLB, UTX

Bullish calls:
Caterpillar (NYSE: CAT - News): 'I wish I hadn't talked about it, so I could have bought more... I urge you to buy that. I see an upside surprise.'Level 3 Communications (NasdaqGS: LVLT - News): 'We caught it at $3. It went to $6. It's pulled back. I don't know when the (bandwidth) shortage is going to flash, 'Shortage! Shortage! Shortage!,' but when it does, you can't wait and then buy it! You have to keep it now.'Allscripts Healthcare Solutions (NasdaqGS: MDRX - News): 'Hey, anything that does healthcare cost containment like Medco Health is just fantastic in this market. It's a triple buy!'Cheesecake Factory (NasdaqGS: CAKE - News): ' ... they have to put up more stores. I think it's a decent buy right here. It's come down a lot. Let's pull the trigger on some CAKE... even though the bears would say that no one is ever going to have cheesecake, because they can't afford it anymore...'Johnson Controls (NYSE: JCI - News): ' ... the lead just killed them! I think the lead price is coming down... I think JCI is going back up. I like the stock. This is a classic example of what you should be buying right now...'Amylin Pharmaceuticals (NasdaqGS: AMLN - News): 'I think biotech is precisely right going into the fall. AMLN is good ... new position. I have not liked that stock... 'Amgen (NasdaqGS: AMGN - News): 'Amgen is good...'Ladish (NasdaqGM: LDSH - News): 'I think that LDSH is a great buy, but the one thing I'd caution... How many stocks can say this?... 52-week high... but again, jet engines. That's a keeper.'Woodward Governor (NasdaqGS: WGOV - News)Sun Microsystems (NasdaqGS: SUNW - News): 'Unbelievable quarter ... This is a company I have hated for a decade! I got bullish on it about a quarter ago ... Don't run from SUNW. Run to it! Buy, buy, buy!'Ryerson (NYSE: RYI - News)Reliance Steel (NYSE: RS - News): ' ... as good as RYI is, Reliance Steel is even better!'Google (NasdaqGS: GOOG - News): ' GOOG's done going down. The bears are going to be trapped ... I think GOOG's going back to its high ... No one thinks that except for me... Buy, buy, buy!'Continental Resources (NYSE: CLR - News): 'I think you can stick with CLR.'XTO Energy (NYSE: XTO - News): 'I am sticking with, and buying for my charitable trust, XTO Energy, which is now the cheapest oil and gas company in the world!'
Bearish calls:
Whirlpool (NYSE: WHR - News): 'That was a bad quarter ... It wasn't saved by Brazil. I've got to give you a don't buy.'
Published By SeekingAlpha

Labels: AMGN, AMLN, CAKE, CAT, CLR, GOOG, JCI, Jim Cramer, LDSH, Lightning Round, LVLT, Mad Money, MDRX, RS, RYI, SUNW, WGOV, WHR, XTO

Doomsday Scenario: MDC Holdings (NYSE: MDC - News), DR Horton (NYSE: DHI - News), Pulte Homes (NYSE: PHM - News) and Toll Brothers (NYSE: TOL - News)
Cramer created a doomsday scenario which probably will not happen, since the bank crisis in 1990 was "ten times worse" than the problems of today. However, he would avoid any companies which deal with borrowing and lending money, particularly housing: DHI, PHM and TOL. The only housing stock that isn't hopeless now is MDC, but Cramer would still not buy. He would also avoid financials amid bearish fears that loans will not be repaid and yields will shrink; "You can't own anything that even walks by a mortgage," Cramer warned. He would not touch companies which need financing for deals. However, Cramer added; "the worst-case scenario will be derailed," and the doom and gloom will not really materialize
If Ben will Budge: Centex (NYSE: CTX - News), Lennar (NYSE: LEN - News), Bear Stearns (NYSE: BSC - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
Cramer discussed two scenarios which could reverse doomsday: overseas buyers and an interest rate cut. He is confident that if the Federal Reserve reduces rates by only one percent, housing will make a comeback (especially DHI, PHM, CTX, LEN), financials GS and C will recover and the Dow will jump to 15.
Playing it Safe: Celgene (NasdaqGS: CELG - News), Kellogg (NYSE: K - News), Schlumberger (NYSE: SLB - News), Medco Health Solutions (NYSE: MHS - News), Kimberly-Clark (NYSE: KMB - News), Amazon.com (NasdaqGS: AMZN - News), Google (NasdaqGS: GOOG - News), Apple (Other OTC: APPL.PK - News) and Research in Motion (NasdaqGS: RIMM - News)
Even if the Fed doesn't budge rates, investors can still create a safe portfolio consisting of CELG, K, SLB, MHS and KMB. He also directed viewers to his six wild bull markets: oil and oil services, agriculture, machinery, aerospace, infrastructure and minerals, and his four horse men of tech: AMZN, GOOG, APPL and RIMM.
Mad Mail: Brookfield Asset Management (NYSE: BAM - News), Rite Aid (NYSE: RAD - News), ValueClick Inc. (VLCK)
Cramer urged a mailer not to sell BAM, because it is an international company, unaffected by subprime woes, and is similar to Warren Buffet's Berkshire Hathaway; "If you sold Warren Buffet because of a housing problem, forget it!" To a mailer concerned about RAD, Cramer said, "The integration is going very well. I'm holding your hand on RAD, and begging you not to sell it." Concerning VLCK's bad quarter, he commented, "I don't have my arms around it yet. To me, the stock looks like it's going to see $18, before you see a bottom."
Published By SeekingAlpha

Labels: AAPL, AMZN, BAM, BSC, CELG, CTX, DHI, GOOG, GS, Jim Cramer, K, KMB, LEN, Mad Money, MDC, MHS, PHM, RIMM, SLB, TOL

Wall Street found a foothold Monday as investors, still anxious that a credit crunch could crimp U.S. growth, took advantage of low prices after last week's steep losses. The Dow Jones industrial average surged more than 90 points.
Some solid earnings and takeover activity boosted the stock market, which was coming off the Dow's and the Standard & Poor's 500 index's biggest weekly drops in nearly five years. The Dow is still down about 4.8 percent from its July 19 record close of 14,000.41, having caved under worries about a shakier lending climate.
In a sign that aversion to corporate debt hasn't stanched dealmaking, industrial equipment manufacturer Ingersoll-Rand said it's selling its Bobcat earth-moving division and two other units to Korea's Doosan Infracore for $4.9 billion.

Sun Microsystems Inc. posted a fiscal fourth-quarter profit that beat Wall Street's expectations as the server and software maker benefited from lower expenses and increased adoption of its open-source operating system.
Sun said it earned $329 million, or 9 cents per share, for the quarter ended June 30. That compares with a loss of $301 million, or 9 cents per share, during the same period last year.
Revenues were $3.84 billion, a slight increase from the $3.83 billion in sales the Santa Clara-based company had last year.

Labels: Sun Microsystems Inc., SUNW

Yahoo Inc. has made telecom exec Maggie Wilderotter a director.
Wilderotter is chairman and CEO of Citizens Communications Co., a Stamford, Conn., company that provides telephone and Internet service in 20 states.
Industry analysts had expected CEO Jerry Yang to bring in new directors as part of his plans to shake up the Sunnyvale company.
Yahoo board's came under fire this year for the pay package it awarded former CEO Terry Semel. In 2006, Semel received a compensation package valued at $71.7 million. In June, Semel was rated the most overpaid CEO among the Bay Area's largest publicly traded companies by the San Francisco Business Times, following an analysis of pay and company performance.
Yang replaced Semel in June.
Published July 30, 2007 by San Francisco Business Times

Labels: Yahoo Inc., YHOO

Bill Gates, the chairman of software maker Microsoft Corp., sold 2 million shares of common stock, according to a Securities and Exchange Commission filing Friday.
In a Form 4 filed with the SEC, Gates reported he sold the shares Wednesday for $30.39 to $31.10 apiece.
Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

Labels: Bill Gates, Microsoft Corp., MSFT

Gum and candy maker Wm. Wrigley Jr. Co. said Monday its second-quarter net income climbed 21 percent, fueled by growing international sales and a weakened U.S. dollar.
Quarterly profit for the period ending June 30 rose to $169.8 million, or 61 cents per share. That's up from $140.6 million, or 51 cents per share, in the year-ago period. Results included a penny-per-share charge related to supply chain restructuring.
Revenue surged a better-than-expected 14 percent to $1.38 billion from $1.21 billion last year, beating Wall Street forecasts.

Labels: William Wrigley Jr. Co., WWY

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 Underpriced 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.

Pozen Inc. Sep 22.5 Calls (NasdaqGM:POZN - News). POZN's PowerRating is 7.
Most Underpriced 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.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News). FRO's PowerRating is 7.
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.
Perini Corp. Aug 60 Calls (NYSE:PCR - News). PCR's PowerRating is 9.
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.
Mastercard Inc. Aug 135 Puts (NYSE:MA - News). MA's PowerRating is 7.
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.
Union Pacific Corp. (NYSE:UNP - News). UNP's PowerRating is 7.
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.
Netgear Inc. (NasdaqGS:NTGR - News). NTGR'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.
DR Horton Inc. (NYSE:DHI - News). DHI's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: DHI, FRO, MA, NTGR, PCR, POZN, stock options, UNP

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
Our research shows that stocks exhibiting this price behavior, while trading above their 200-day moving average, have on average, shown positive returns 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.

Gaps Down 5% or More: Volcom (NasdaqGS:VLCM - News). VLCM's PowerRating is 8.
Laps Down 5% or More: Kyocera (NYSE:KYO - News). KYO's PowerRating is 7.
5+ Consecutive Down Days: Raser Technologies (NYSE:RZ - News). RZ's PowerRating is 10. 5+ Consecutive Lower Lows: Gulfport Energy (NasdaqGS:GPOR - News). GPOR's PowerRating is 9.
2-Period RSI Below 2: True Religion Apparel (NasdaqGM:TRLG - News). TRLG's PowerRating is 9.
Bearish
Our research shows that stocks exhibiting this price behavior, while trading below their 200-day moving average, have on average, shown negative returns 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
5+ Consecutive Up Days: ProShares UltraShort Mid Cap 400 (AMEX:MZZ - News). MZZ's PowerRating is 3.
5+ Consecutive Higher Highs: ProShares UltraShort Dow 30 (AMEX:DXD - News). DXD's PowerRating is 4.

Labels: DXD, GPOR, Hot Stocks, KYO, MZZ, RZ, TRLG, VLCM

ExxonMobil (NYSE: XOM - News): Cramer predicts XOM will fall from $86.70 to the low to mid $80s in the next few days. He would buy, since crude oil is at $77, and the stock will bounce back in spite of its lackluster quarter. Cramer commmented XOM should behave like an oil company and keep drilling instead of like a bank.
Annaly Capital Management (NYSE: NLY - News): Cramer says the REITs are "on fire" and would buy NLY because of CEO Mike Farrell; "This is his time. We've been waiting for it to be his time..."

Labels: Jim Cramer, Jim Cramer's Stop Trading, NLY, XOM

Bullish Calls:
Woodward Governor (NasdaqGS: WGOV - News): 'That's in the bull market of aerospace. It's in the bull market of infrastructure.'Caterpillar (NYSE: CAT - News)Sears Holdings (NasdaqGS: SHLD - News): 'Everybody's decided ... it's too hard ... am not giving up on Eddie Lampert. Let everyone else give up. I am not. I'm with him.'Toyota Motor (NYSE: TM - News): 'Long term, Toyota's the winner. ... In 2010, this company's going to own the world. Now, if you can't take the pain between now and 2010, by all means, go buy a mutual fund.'Macy's (NYSE: M - News): 'They've all given up on Macy's. ... Me? I don't know. Terry Lundgren's pretty good. .... I'd rather pull the trigger. I'd rather run toward what looks like a house of pleasure.'
Bearish calls:
Manitowoc (NYSE: MTW - News): 'This stock has just been hammered unfairly. ... We've got to wait till it settles, and it's not going to settle, because it's still in freefall.'Alcoa (NYSE: AA - News): 'It did not get the bid in the end ... it's trading only on fundamentals. On fundamentals, it's worth $35. ... I got too greedy on Alcoa.'
Published By SeekingAlpha

Labels: AA, CAT, Jim Cramer, Lightning Round, M, Mad Money, MTW, SHLD, TM, WGOV

PepsiCo (P'EP), Kellogg (NYSE: K - News), Nova Chemicals (NYSE: NCX - News), Schering-Plough (NYSE: SGP - News) and Celgene (NasdaqGS: CELG - News), EMC (NYSE: EMC - News)
In the aftermath 0f last week's carnage, Cramer urged investors to search in the rubble for damaged stocks but not damaged companies. One indicator that the damage is only skin deep is if the companies reported great quarters right before the selloff. However, financial and housing stocks are simply no good, according to Cramer. While Pepsi and Kellogg both reported great quarters, Pepsi jumped and then gave back its gain while Kellogg went flat. He prefers Pepsi to Coke and thinks this $66 stock is really worth $80. Cramer predicted Kellogg will have a great quarter. He considers both stocks to be an antidote for a slowing economy. Concerning NCX, Cramer said the quarter was strong and he thinks the company will be taken over. Cramer likes SGP and CELG, even though the latter stock is up. Cramer liked EMC's quarter so much, he bought the stock, and he says the company's spinoff of VMWare will be VMware "the sexiest initial public offering of the year."
Boeing (NYSE: BA - News) and Lockheed Martin (NYSE: LMT - News)Cramer predicts BA and LMT will go to $120, since both had been at $80 and are now around the $100 mark. BA is producing fuel-efficient planes which hold more passengers and is not affected by the domestic economy. Cramer would buy a maximum of 100 shares incrementally. He adds LMT is a good play on the Iraq War, since the defense budget is "huge." Cramer added LMT is a good international stock and is a "buyback king."
Adobe (NasdaqGS: ADBE - News)
Cramer feels secure about the tech because the sector usuallly does well in the late summer and it has the least exposure to housing ills. He likes ADBE right now even more than Microsoft because he thinks the third and fourth quarter will benefit from sales of Creative Suite 3, the "best software for publishing."
Mad Mail: Transocean (NYSE: RIG - News) and Omniture (NasdaqGM: OMTR - News)
Cramer calls RIG the most creditworthy company apart from Schlumberger, but he would recommend selling some gains. He adds that he hopes those who saw a $4 jump for OMTR sold some stock.

Published By SeekingAlpha

Labels: ADBE, BA, CELG, EMC, Jim Cramer, K, Mad Money, NCX, OMTR, RIG, SGP