Jim Cramer Blog

President Bush on Friday outlined ways to help homeowners facing foreclosure -- the administration's first effort to deal with an expected wave of defaults fueled by the mortgage crisis.

The initiatives, which are not aimed at bailing out lenders or speculators, are designed to help homeowners with risky mortgages keep their houses. In remarks in the Rose Garden, Bush also discussed efforts to keep the problems from arising in the future.

Labels: Mortgages

Here are 7 options to watch for Tuesday.
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.
Lennar Nov 35 Calls (NYSE:LEN - News)
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.
Ciena Oct 35 Puts (NasdaqGS:CIEN - News)
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.
Lehman Brothers Sep 60 Calls (NYSE:LEH - News)
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.
CME Group Sep 500 Puts (NYSE:CME - News)
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.
PetroChina (NYSE:PTR - News)
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.
MoneyGram International (NYSE:MGI - News)
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.
Nucor (NYSE:NUE - News)
Published by TradingMarkets.com

Labels: CIEN, CME, Hot Stock Options, LEH, LEN, MGI, NUE, PTR

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
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.
Watson Pharmaceuticals (NYSE:WPI - News). WPI's PowerRating (for Traders) 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.
Alliance Data (NYSE:ADS - News). ADS's PowerRating (for Traders) is 6.
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.
Amerigon (NasdaqGM:ARGN - News). ARGN's PowerRating (for Traders) is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up 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 close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
California Pizza Kitchen (NasdaqGS:CPKI - News). CPKI's PowerRating (for Traders) is 3.
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.
Take Two Interactive Software (NasdaqGS:TTWO - News) & Sappi Limited (NYSE:SPP - News). TTWO's PowerRating (for Traders) is 3, and SPP's PowerRating (for Traders) is 3..
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
XM Satellite Radio (NasdaqGS:XMSR - News). XMSR's PowerRating (for Traders) is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADS, ARGN, CPKI, Hot Stocks, SPP, TTWO, WPI, XMSR

Don't Buy and Hold
In spite of the fact that Cramer was a money manager "with a terrific track record" he admitted to having made every mistake he describes in his book, Jim Cramer's Real Money, Sane Investing in an Insane World, as well as every faux pas mentioned in his new publication, Jim Cramer's Mad Money: Watch TV, Get Rich. Cramer identifies the single worst and most common mistake as adopting a "buy and hold" strategy, which is disastrous because "it's just not true that your stock will necessarily bounce back." Just hanging onto a stock might have worked 30 or 40 years ago when "taxes were high and commissions were even higher," but in today's world, investors need to do homework on their stocks, and investors who don't have the time to research their investments on a weekly basis should go into mutual funds. Don't Dwell on Regrets
Although Cramer says he is the worst offender when it comes to this vice, he urges investors not to waste precious time grieving over past mistakes, since one "cannot afford to get thrown off their game." Instead Cramer emphasizes the importance of going forward and not losing confidence.
Tips are for Waiters not for Traders
"You have to discipline yourself so that you never, ever take a tip seriously," Cramer said, and he discussed the non-existence of real stock tips. For instance, if someone would say that Nokia is about to buy Research in Motion, the only way he would know is if he were an insider, and taking a tip from an insider is illegal. Cramer emphasized the importance of avoiding temptation in such a case: "Having the Securities and Exchange Commission investigate you is pure hell even if you haven't done anything wrong," he said. "Imagine how bad it would be if you were actually guilty of something." However, A non-insider who would tell an investor about a potential, unpublicized merger would have no basis for knowing, and should also be ignored: "If you get a tip, it's either illegal, incorrect or straight-up manipulative."
Diversify, Diversify
"I like to think that I'm universally loved, but people really tend to hate me when one sector is en fuego and I tell them to take some money out of it and spread it around because you can't keep all your eggs in one basket," Cramer said. However, once the "hot" sector falls out of favor, people thank Cramer for telling them to stay diversified. Cramer warns investors not to have more than 20% of their money invested in a single sector. "You absolutely must stay diversified, and this rule can't be bent, broken or spindled."
Don't Buy an Entire Postion at Once
"The single most arrogant thing you can do as an investor is buy your whole position in a stock at once," Cramer said. Investors who buy incrementally make more money and do not have the regret of having jumped hastily into a stock. Cramer suggests looking for opportunities to buy gradually.

Published by SeekingAlpha

Labels: Hot Stocks, Jim Cramer, Lightning Round, Mad Money

Here are 7 options to watch for Tuesday.
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.
Google Sep 530 Calls (NasdaqGS:GOOG - News)
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.
Altria Group Sep 60 Puts (NYSE:MO - News)
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.
Lehman Brothers Sep 55 Calls (NYSE:LEH - News)
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.
Bear Stearns Oct 85 Puts (NYSE:BSC - News)
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.
None Today
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.
None Today
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.
Home Depot (NYSE:HD - News)

Labels: BSC, GOOG, HD, LEH, MO, stock options

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
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.
Oppenheimer Holdings (NYSE:OPY - News). OPY's PowerRating (for Traders) is 8.
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.
Black Box (NasdaqGS:BBOX - News). BBOX's PowerRating (for Traders) is 6.
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.
Amerigon (NasdaqGM:ARGN - News). ARGN's PowerRating (for Traders) is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up 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 close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Innovative Solutions (NasdaqGS:ISSC - News). ISSC's PowerRating (for Traders) is 3.
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.
CEC Entertainment (NYSE:CEC - News) & NuStar (NYSE:NS - News). NS's PowerRating (for Traders) is 4, and CEC's PowerRating (for Traders) is 3..
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Gateway (NYSE:GTW - News). GTW's PowerRating (for Traders) is 1.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ARGN, BBOX, CEC, GTW, Hot Stocks, ISSC, NS, OPY

Stocks surged today as investors went bargain hunting following yesterday's sell-off. At the close, the major market averages gained back most of what they lost yesterday, with the Dow ending up 248 points, and 90% of the stocks in the S&P finishing higher. Oil continued to rise on the week, with the price of crude jumping $1.78 to finish at $73.51 a barrel.

In corporate news, tobacco giant Altria Group (NYSE: MO - News) announced that it will spin off its international tobacco business amid an ongoing corporate restructuring. Current Altria CEO Louis Camilleri will serve as chairman and CEO of Philip Morris International, while Michael Szymanczyk will become chairman and CEO of Altria. Its board of directors also increased the dividend 8.7%. Shares rose 1.1%. Subscribers can read our analysis of Altria in today's issue.
In the specialty retailing space, Big Lots (NYSE: BIG - News) shares surged 9.9% after the company earned $23.4 million, or 22 cents a share, in its second quarter, up from $4.3 million, or 4 cents a share, last year. Earnings from continuing operations came in at 21 cents a share, higher than analyst estimates of 12 cents a share. Sales rose to $1.08 billion, while same-store sales increased 5.2%. For its third quarter, the company expects to earn between 9-13 cents a share and sees fourth-quarter EPS coming in at a range of 87-92 cents, higher than analyst estimates of 84 cents.
Investors sent shares of Williams-Sonoma (NYSE: WSM - News) higher by 10.6% after the retailer said sales at its key brands drove revenue higher. For the second quarter, the company said earnings equaled $26 million, or 23 cents a share, down from $35 million, or 30 cents a share, in the year-ago period. Excluding certain items in both years, the company said EPS slipped to 24 cents from 25 cent last year. The figure easily topped Wall Street estimates calling for EPS of 16 cents. Revenues increased 4.1% to $859.4 million. The gourmet cookware chain said it expects full-year earnings to come in at $1.82-1.90, up from its previous forecast of $1.73-1.81 a share.
Technology firm Seagate Technology (NYSE: STX - News) announced late Tuesday that it sees a higher fiscal first-quarter profit due to increased sales of high-end devices. Excluding one-time items, it expects earnings of 62-66 cents a share, which is above its earlier forecast of 40-44 cents a share. It forecasts sales to come in at $3.15-3.23 billion and sees margins rising to 24% from 20. Shares rose 3.8%.

By the BullMarket.com Staff

Labels: BIG, MO, STX, WSM

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
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.

Medarex (NasdaqGM:MEDX - News). MEDX's PowerRating (for Traders) is 8.
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.
United Industrial Corporation (NYSE:UIC - News). UIC's PowerRating (for Traders) 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.
Acadia Pharmaceuticals (NasdaqGM:ACAD - News). ACAD's PowerRating (for Traders) is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up 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 close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Innovative Solutions (NasdaqGS:ISSC - News) . ISSC's PowerRating (for Traders) is 3.
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.
Sprint Nextel (NYSE:S - News) & E.W. Scripps Company SP. S's PowerRating (for Traders) is 4, and SSP's PowerRating (for Traders) is 3..
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Leap Wireless (NasdaqGS:LEAP - News). LEAP's PowerRating (for Traders) is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ACAD, Hot Stocks, ISSC, LEAP, MEDX, S, UIC

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Chico's FAS (NYSE:CHS - News) missed earnings on Wednesday afternoon, announcing $0.22 EPS versus an estimated $0.26 EPS. CHS's PowerRating (for Traders) is 4.
Ciena (NasdaqGS:CIEN - News) announces earnings on Thursday morning, with analysts looking for $0.30 EPS. CIEN's PowerRating (for Traders) is 5.
Del Monte (NYSE:DLM - News) reports earnings Thursday morning before the bell, so be watching for $0.01 EPS. DLM's PowerRating (for Traders) is 5.
When Freddie Mac (NYSE:FRE - News) reports quarterly earnings on Thursday morning, anaylsts will be watching for $0.81 EPS. FRE's PowerRating (for Traders) is 5.
Genesco (NYSE:GCO - News) reports tomorrow morning; watch for $0.30 EPS. GCO's PowerRating (for Traders) is 6.
Sears Holding (NasdaqGS:SHLD - News) and Tiffany (NYSE:TIF - News) both report on Thursday morning; SHLD expects $1.13 EPS, and TIF expects $0.35 EPS. SHLD's PowerRating (for Traders) is 5, and TIF's PowerRating (for Traders) is 5.
PowerRating (for Traders)s are courtesy of TradingMarkets.com

Labels: CHS, CIEN, DLM, FRE, GCO, Hot Stocks, SHLD, TIF

Stocks opened the session lower after disappointing economic data caused investors to be wary of current economic conditions. Later in the day, equities accelerated their losses after credit fears once again took control of the market. All the major stock indices closed near their lows for the day. Over in the energy patch, oil prices also ended the day slightly lower.
On the economic docket today, the New York Conference board said that consumer confidence this month plunged the most since Hurricane Katrina nearly two years ago. The index fell to 105, from a revised 111.9 in July, the conference board said. Even though the readings were low, economists were looking for a larger drop to 104. Elsewhere, home prices fell the most in 20 years according to the Case-Shiller report, which recorded a -3.2% drop in home sales nationally in the second quarter.
In company-related news, consumer and commercial finance company CIT Group (NYSE: CIT - News) announced that it would close its mortgage lending operations and take a $35 million pretax charge in its third quarter for severance and exit costs. Last month, the company reported a loss due to a $495.3 million after-tax charge to reduce the value of some home loan receivables. The company also announced that it is cutting 550 jobs.
Shares of financial service company State Street (NYSE: STT - News) plunged after it reported in filings that it has exposure to about $29 billion worth of commercial paper conduits. Conduits are retail and commercial loans that are bundled into packages and backed by short-term debt from the commercial paper market. Also plaguing the company are reports that of one of its bond funds has lost more than a third of its value in recent weeks.
Internet service provider (ISP) EarthLink (Nasdaq: ELNK - News) shares rose after the company announced that it will cut 900 jobs or half of its work force and close four offices in an attempt to reduce operating costs. It also announced that it will repurchase $200 million of its own stock. The company cut its sales range for the year to $1.19-$1.21 billion, down from a previous range of $1.23-$1.24 billion. Full-year net loss is expected to come in between -$79 to -109 million.
On the deal front, pharmacy benefit manager Medco Health Solutions (NYSE: MHS - News) agreed to buy blood-glucose test maker Polymedica (Nasdaq: PLMD - News) in an all-cash deal valued at $1.5 billion, or $53 a share, which represents a 17% premium to where the shares closed on Monday. Medco says the deal will help it boost sales of its diabetes care products.
By the BullMarket.com Staff

Labels: CIT, ELNK, MHS, PLMD, STT

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Micros Systems (NasdaqGS:MCRS - News) beat earnings on Wednesday after the close, announcing $0.75 EPS over an expected $0.70 EPS. MCRS's PowerRating (for Traders) is 5.

Big Lots (NYSE:BIG - News) reports earnings on Wednesday before the bell; watch for $0.12 EPS. BIG's PowerRating (for Traders) is 5.
Brown Shoe (NYSE:BWS - News) is looking to announce $0.25 EPS before the market opens on Wednesday. BWS's PowerRating (for Traders) is 5.
Dollar Tree (NasdaqGS:DLTR - News) should report $0.33 EPS on Wednesday morning. DLTR's PowerRating (for Traders) is 5.
When Energy Conversion (NasdaqGS:ENER - News) announces quarterly earnings on Wednesday before the bell, be watching for -$0.11 EPS. ENER's PowerRating (for Traders) is 5.
Joy Global (NasdaqGS:JOYG - News) and Williams-Sonoma (NYSE:WSM - News) both report earnings on Wednesday morning; watch for $0.69 EPS from JOYG and $0.16 EPS from WSM. JOYG's PowerRating (for Traders) is 4, and WSM's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: BIG, BWS, DLTR, ENER, Hot Stocks, JOYG, MCRS, WSM

Fall into the Gap (GPS)
Although Cramer admits he has disliked retail lately, the sector will be a hot area when the Fed continues to cut interest rates. What was once the worst of the worst, Gap, is now best-of-breed, with a better balance sheet, new CEO Glenn Murphy, $2.7 billion in cash and investments and a revenue of $151.9 billion. In addition, this "great turnaround story" is buying back stock aggressively and is polishing its Banana Republic Brand. Cramer would wait about 5 days before buying.
Old King Kohl's: Limited Brands (LTD), Tween Brands (TWB) and Kohl's(KSS)
Unlike LTD and TWB, retailers Cramer thinks deserve to be doing badly, it is a mystery that people seem not to like Kohl's, which has "dropped like a rock;" a full 28% since April. Cramer likes the fact no one is paying attention to Kohl's which sells at 13x forward earnings and has a growth rate of 18%. He also noted the store is focusing on high-end designer brands, such Vera Wang's label. Cramer concluded KSS has the best risk-reward if the Fed keeps cutting and "deserves to be bought."
Fly Like an Eagle: American Eagle Outfitters (AEO)
Cramer suggests looking for retail stocks with vigorous insider buying and low evaluations; these factors characterize AEO, which is "worth buying." AEO's sales increased 17% year over year and is currently selling at 12 times next year's earnings. Craner would wait until the stock dips to between $22 and $25 before buying.
Mad Mail: Crocs (CROX), American Eagle Outfitters (AEO) Although Cramer still believes CROX has further to climb, he admits concern over the company's insider selling; "I will temper my enthusiasm a tad," he said. Cramer added AEO is a good stock for a 7th grader, and is an investment that can be held onto for a few years.

Published by SeekingAlpha

Labels: AEO, CROX, GPS, Hot Stocks, Jim Cramer, KSS, LTD, Mad Money, TWB

Stocks drifted lower after data showed continued softness in the housing market, with investors once again hesitant to bid up stocks following Friday's strong rally. The Dow erased -57 points, while the Nasdaq and S&P 500 lost -15 and -13 points, respectively. Oil rose 95 cents to finish the session at $72.04.
The National Association of Realtors reported today that sales of previously owned homes in July fell the most in more than five years. The glut of unsold homes also climbed the most since 1991. The group reported that purchases declined -0.2% to an annual rate of 5.75 million homes. Inventories, meanwhile, were the equivalent of 9.2 months of supply. Sales dropped -9% and the median household value fell -0.6% to $228,900. The supply of homes for sale at the end of the month climbed 5.1% to 4.59 million.
On the political landscape, U.S. Attorney General Alberto Gonzales resigned from his post amid what has been a tenure marked by a political fight over the firings of federal prosecutors. He is expected to officially leave his post on September 17th.
On the M&A front, Home Depot (NYSE: HD - News) agreed to sell its HD Supply business to private equity for $8.5 billion, an -18% reduction in price offered at the onset of the deal. The financers that were part of the deal were looking for price cuts as the credit markets have recently gotten more difficult to navigate. Shares rose 1.6%.
Also in deal news, Taiwan based Acer agreed to buy computer maker Gateway Computer (NYSE: GTW - News) for $710 million, or $1.90 a share, a 57% premium to Gateway's closing price on Friday. The combined company would overtake Lenovo (OTC: LNVGY - News) as the third-largest maker of computers. United States Steel (NYSE: X - News) agreed to buy Canadian based Stelco for $1.1 billion in an effort to bolster its position in the flat iron steel market. U.S. Steel shares fell -0.4% on the session.
Shares of Altria Group (NYSE: MO - News), meanwhile, rose 1.3% after a Citigroup analyst predicted the tobacco company would announce the spin-off its international unit at a meeting on Wednesday. The move has been speculated upon for quite some time. Subscribers can read our analysis of Altria in today's issue.
By the BullMarket.com Staff

Labels: GTW, HD, LNVGY, MO, X

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
China Medical Technologies (NasdaqGS:CMED - News) reports earnings on Tuesday morning before the bell; watch for $0.29 EPS. CMED's PowerRating (for Traders) is 4.
Corinthian Colleges (NasdaqGS:COCO - News) is expected to announce $0.04 EPS before the bell on Tuesday. COCO's PowerRating (for Traders) is 5.
Analysts will be watching for Sanderson Farms (NasdaqGS:SAFM - News) to report $1.93 EPS before the market opens on Tuesday morning. SAFM's PowerRating (for Traders) is 4.
Tuesday Morning (NasdaqGS:TUES - News) will report earnings before the bell tomorrow; look for $0.05 EPS. TUES's PowerRating (for Traders) is 5.
Borders Group (NYSE:BGP - News), Dycom (NYSE:DY - News) and Micros Systems (NasdaqGS:MCRS - News) all report on Tuesday afternoon after the market closes, so watch for heightened price action and volatility ahead of the bell. BGP's PowerRating (for Traders) is 4, DY's PowerRating (for Traders) is 4 and MCRS's PowerRating (for Traders) is 6.
Correction: On Friday, August 24, we reported that Computer Sciences (NYSE:CSC - News) was due to report on Monday, August 27. The company has not scheduled an earnings announcement for its next reporting quarter.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: BGP, CMED, COCO, CSC, DY, Hot Stocks, MCRS, SAFM, TUES

Here are 7 options to watch for Monday.
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.

CME Group Sep 600 Calls (NYSE:CME - News)
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.
Google Sep 500 Puts (NYSE:GOOG - News)
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.
China Petroleum & Chemical Oct 125 Calls (NYSE:SNP - News)
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.
Bear Stearns Sep 100 Puts (NYSE:BSC - News)
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.
None today
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.
None today
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.
JPMorgan Chase (NYSE:JPM - News)

Labels: BSC, CME, GOOG, JPM, SNP, stock options

Citigroup (C) pulled together its emerging-markets credit group and its global credit-trading business. The combined group will be headed by Carey Lathrop, a nearly 20-year veteran of the bank who led the emerging-markets business.
Crocs (CROX), in an attempt to diversify its product line, will introduce a line of apparel for men and children. The apparel line, which Crocs intends to unveil today, will feature regular fibers, such as cotton, interwoven with a lightweight derivative of the pliable, plastic resin used to make Crocs' shoes. It will make its debut in stores in October.
Home Depot (HD) agreed to cut the price in its supply division sale to buyout firms by $1.8 billion, sources said on Sunday, as a housing market drop and a credit crunch forced all sides to renegotiate.
Marsh & McLennan (MMC) said it has agreed to buy back $800 million worth of its outstanding shares in an accelerated share repurchase transaction. The company said it will fund the transaction with proceeds from the recent sale of Putnam Investments and that it will conduct the purchase under the $1.5-billion share buyback authorization announced on Aug. 7.
Rambus (RMBS) said the special litigation committee established by the board has finished its review of stock options practices and submitted a final report to court. The special litigation committee was composed of two independent directors, J. Thomas Bentley and Abraham Sofaer, and it conducted its review with the assistance of independent counsel, the company said.
United States Steel (X) said it will buy Canadian steelmaker Stelco for $1.1 billion in a cash deal, including X paying $36.59 per share of Stelco.
Wal-Mart (WMT) is considering acquisitions in its home market as it seeks to open smaller stores and limit its reliance on giant supercenters for growth, the Financial Times reported.
Published by Minyanville.com

Labels: C, CROX, HD, Hot Stocks, MMC, RMBS, WMT, X

At midday, stocks were rising modestly on upbeat economic and housing data. Stocks have been less volatile this week as investors have been patient and trying to dissect what the Fed will do at its next scheduled meeting in September. Also midday, oil was trading higher on the day.
In economic news, the Commerce Department said that Durable Good orders gained more than forecast in July. For the month, orders climbed 5.9%, the biggest gain since September. Today's figure came after a revised 1.9% the prior month. Excluding transportation equipment, orders rose 3.7%, the most in nearly two years. In the housing side of the economic picture, sales of new homes increased 2.8% in July to a seasonally adjusted rate of 870,000. Inventory of homes fell -1%, the fourth-straight month it has fallen. The median price of a home in the U.S. was $239.500, up 0.6% from last year's measure.
To end the week, several companies reported quarterly earnings, among them number-two burger giant Burger King (NYSE: BKC - News). For the quarter ended June 30th, the company reported earnings of $36 million, or 26 cents a share, up from a year-ago loss of -$10 million, or -8 cents a share. Excluding items from both those quarters, it earned $40 million, or 29 cents a share, up from $25 million, or 18 cents a share, in 2006. Analysts on average were looking for EPS of 27 cents. Sales hit $590 million, up from $533 million last year. Same-store sales increased 4.4% worldwide, with the U.S. and Canada showing growth of 4.8%. The company attributed the strong quarter to increased sales in its breakfast and late-night operations in the U.S. and Canada.
Continuing on the food theme, ketchup maker H.J. Heinz (NYSE: HNZ - News) said its first-quarter earnings grew 6%. For the quarter, the company posted net income of $205.3 million, or 63 cents a share, up from $194.1 million, or 58 cents a share, in the same period a year ago. Sales climbed 9% to $2.25 billion on double-digit growth in ketchup, beans, and soups. Its earnings came in line with what the street was forecasting. It also increased its full-year EPS outlook to the top of its range of $2.54-2.60.
Over in the tech world, embattled chipmaker Marvell Tech (Nasdaq: MRVL - News) posted a loss of -$56.5 million, or -10 cents a share, compared to a profit of $44.9 million, or 7 cents a share, last year. Excluding stock-based compensation, it would have earned 6 cents a share, in line with what analysts were expecting. Sales rose 14% to $656.7 million on increased sales of its communications and wireless network chips. Costs, meanwhile, surged, as R&D expenses increased 55% and SG&A costs rose 71% from year-ago levels.
In corporate M&A news, the nation's largest home improvement retailer, Home Depot (NYSE: HD - News), said it may cut its sale of its HD Supply unit by as much as $1 billion in an effort to salvage the deal. The deal, which was announced last quarter for $10.3 billion, is in jeopardy as its buyers, private equity groups Bain Capital; The Carlyle Group; and Clayton, Dubilier & Rice, are seeking price cuts. The financers on the deal, which include three top Wall St. banks, are seeking price cuts as well as they are hesitant to finance the mega-billion dollar deal in the current debt market environment.

Labels: BKC, HD, HNZ, MRVL

This is the reason why Barack Obama wants to limit lobbyist political power in the US.
After 14 books and 21 movies of being beaten and bruised--but staying alive, secret agent James Bond isn't just lucky; he's good. No matter how dire his circumstance, Bond's cunning intellect, charm, and use of gadgetry allow him to escape death and complete his mission. In other words, Bond has certain enduring qualities that are impossible for his foes to replicate or disarm and that lead to his success time after time. But what can James Bond teach us about stock investing?
Simply put, all firms hit rough patches at some point, but great firms hold competitive advantages that always pull them through. Just like Bond, firms that make good long-term investments are at their best when their backs are against the wall. Do your stocks have what it takes to succeed in the long run? Today we put several specialty pharmaceutical firms to the test.
An Introduction to Specialty PharmaceuticalsSpecialty pharmaceutical firms are more marketers than researchers, relying on acquisitions to fill their drug pipelines. The few drugs that are developed internally are usually not new compounds, but rather reformulations of existing drugs that offer less frequent dosing or better safety profiles. By far, the most prized asset of each of these firms is their salesforce, which blankets physicians and adds value to their products.
However, stuck in between big resourceful drug companies and innovative biotechnology firms, not all specialty pharmaceuticals compete effectively. At last count, the top-10 big drug firms controlled more than 68% of all pharmaceutical sales representatives in the United States. In addition, biotech firms are constantly breaking ground on new treatments that replace existing therapies. As a result, we think only the specialty pharmaceutical firms that utilize their salesforce most efficiently will endure this competition and succeed in the long run.
Before we determine which firms make the cut, we've identified seven secret weapons used by specialty pharmaceuticals to increase salesforc