Jim Cramer Blog

Buy Caterpillar (CAT), Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
On news of an earthquake that has cost a great deal of damage and as many as 15,000 lives, Cramer spoke of the "rebuild in China," which he said was an equivalent of Hurricane Katrina in terms of infrastructure buildout. He pointed viewers to Caterpillar and Terex (TRX) as plays on the news. He also recommended Cummins (CMI). "They're all headed up ... because of the rebuild," he said.
Cramer said today's rally has a lot to do with bullish action from mortgage insurer Freddie Mac (FRE). "They have gotten rid of the systemic risk," he said. He called Freddie Mac and Fannie Mae (FNM) the "last of the black holes" for the financial crunch.
Cramer said Freddie is getting a lot of business, which he thinks may actually offset the company's losses. He said bears don't believe that's the case, but he pointed out that Freddie is a well-run company. Fannie is not as good, he said.
In the consumer discretionary space, Cramer said he had thought "the buyers would just call it quits" after the government's stimulus checks came in. He revised his forecast, saying maybe earnings from Kohl's (KSS) tomorrow will be the time to sell.
He expressed his surprise at the continued rise of some retailers. "Certainly we know that Costco (COST) is better than we thought. ... TJX (TJX) was a little disappointing, and look -- it goes up." He pointed out that Wal-Mart (WMT) stock has traded back to where it was before reporting earnings.
"A lot of people feel that the worst is over," Cramer said. He pointed out that the Fed called victory when inflation numbers came in better than expected.
Cramer also said that the year of wind power may arrive this year, not next year as he had previously predicted. He pointed out bullish action in Fluor (FLR) and First Solar (FSLR) as evidence of alternative energy stories.
He also said that Research In Motion (RIMM), Apple (AAPL) and MasterCard (MA) are offering leadership in the economy.
On the housing crisis, Cramer said that Toll Brothers (TOL) CEO Bob Toll was "negative negative negative" when the two spoke on last night's "Mad Money" TV show. He predicted that the housing problem in Florida would be much better in 18 months.

Published By TheStreet.com

Labels: AAPL, CAT, CMI, COST, FLR, FNM, FRE, FSLR, Jim Cramer, KSS, MA, RIMM, Stop Trading, TJX, TOL, TRX, WMT

On news that EnCana (ECA) would be splitting into a natural gas firm and an integrated oil company, Cramer said several other companies might make a similar move. He pointed to Anadarko (APC) and ExxonMobil (XOM).
"My urging is you go over these companies," Cramer said. "They all have oil, and they've all got gas businesses." He advised against chasing the stocks higher, but said that inventory numbers could send these stocks down, creating a buying opportunity.
Cramer also discussed Toll Brothers (TOL) CEO Bob Toll, who will be appearing on "Mad Money" tonight. Cramer praised Toll for always being "straight with me." He said the homebuilding CEO is "not bullish at all." Cramer said he would ask Toll why he is talking about buying more land, a move of which Cramer is skeptical.
Published By TheStreet.com

Labels: APC, ECA, Jim Cramer, Mad Money, TOL, XOM

Crocs (NasdaqGS:CROX) ended Thursday up more than 14% after the company announced a forecast for 2008 that was better than expectations. The company's first quarter profits of $0.09 per share, excluding some items, were in line with analyst estimates. The Short Term PowerRating for CROX is 5.
Better than expected same store sales helped boost shares of Wal-Mart (NYSE:WMT) though Costco (NasdaqGS:COST), which also reported strong sales, was lower on the day. The Short Term PowerRating for WMT is 6 and the Short Term PowerRating for COST is 5.
Defense contractor Alliant Techsystems (NYSE:ATK) announced fourth quarter earnings that were up by nearly 20% to $1.83 per share, beating estimates. The Short Term PowerRating for ATK is 5.
Activision (NasdaqGS:ATVI) reported quarterly earnings of $0.17 per share, more than triple analyst estimates. The Short Term PowerRating for ATVI is 5.
Questions by the Justice Department about the company's handling of a study involving its cholesterol drug Vytorin did not stop shares of Schering Plough (NYSE:SGP) from gaining nearly 3% on the day. The Short Term PowerRating for SGP is 5.
Shares of Best Buy (NYSE:BBY) slid more than 3% on news that the company has spent $2.1 billion for a stake in British consumer electronics retailer, Carphone Warehouse. The Short Term PowerRating for BBY is 4.

Labels: ATK, ATVI, BBY, COST, CROX, Hot Stocks, SGP, WMT

Yahoo (NasdaqGS:YHOO) rallied late in the day to finish down 15% after Microsoft withdrew its bid for the company. The Short Term PowerRating for YHOO is 5.
Shares of Sprint (NYSE:S) rallied on the news that the company was considering selling or spinning off Nextel as an independent entity. The Short Term PowerRating for S is 5.
Fannie Mae (NYSE:FNM) announces earnings before the open on Tuesday, with analysts expecting EPS of -$0.81. The Short Term PowerRating for FNM is 4.
Bank of America (NYSE:BAC) announced that it planned to complete its take over of Countrywide Financial despite an analyst report critical of the takeover. The Short Term PowerRating for BAC is 4.
Reporting earnings before the market opens on Tuesday, Sara Lee LE is expected to announce earnings per share of $0.24. The Short Term PowerRating forSLE is 4.
The box office success of "Ironman" encouraged traders to bid shares of Marvel Entertainment (NYSE:MVL) higher by more than 9% on Monday. The Short Term PowerRating for MVL is 5.
Shares of General Motors (NYSE:GM) lost more than 3% on news of a labor dispute at a plant in Kansas. The Short Term PowerRating for GM is 2.

Labels: BAC, FNM, Hot Stocks, MVL, S, YHOO

JP Morgan Chase (NYSE:JPM) reported first quarter earnings of $0.68, beating estimates by $0.04. JPM's Short term PowerRating is 5.
Intel (NasdaqGS:INTC) also beat estimates by $0.04 and issued Q2 guidance in-line. INTC's Short term PowerRating is 5.
comScore reported the number of people clicking Google's paid search ads fell for the third straight month. Google (NasdaqGS:GOOG) is scheduled to report earnings after the close on Thursday. GOOG's Short term PowerRating is 5.
After the market close, eBay (NasdaqGS:EBAY) reported earning of $0.42, beating estimates by $0.03. EBAY's Short term PowerRating is 4.
And, International Business Machines (NYSE:IBM) beat estimates by $0.20 and issued an upbeat forecast. IBM's Short term PowerRating is 5.
Before the market open, Merrill Lynch (NYSE:MER) is scheduled to report, with analysts looking for a loss of -$1.99 per share. MER's Short term PowerRating is 5.
Pfizer (NYSE:PFE) is also due to report and expectations are pegged at $0.66. PFE's Short term PowerRating is 4.

Labels: Ebay, GOOG, IBM, MER, pfe, Stocks to Watch

Rainy Days and Mondays
Cramer devoted Monday's show to giving his viewers more insights into how he trades. For those who are frustrated with rainy days, Cramer suggests using down times to shop for fallen stocks, particularly those which are upgraded by analysts, since they usually go up after the selloff is over.
True Value
While the term undervalued is thrown around alot, Cramer provided a formula to determine the value of a stock. If a stock has a price-to-earnings multiple remember E (the earnings) times M (the multiple) equals P (the price) -that's lower than its growth rate, then that stock is cheap, Cramer said. However, he warned this is not a hard and fast rule, since stock may seem cheap because earnings estimates need to be cut, are not such good buys if their fundamentals are declining, or if they are going to miss their earnings targets. Similarly, a stock may seem expensive, but if its earnings need to be revised higher, its multiple will come down, and it has more room to run, said Cramer. While the market is dynamic and does not lend itself to rigid rules, Cramer emphasized stocks with accelerating growth are more valuable than those with de-celerating growth, which should be sold. Even if one envisions a comeback for a sluggish stock, it should be sold and re-purchased, according to Cramer.
Hitting Bottom
It is very difficult to determine when a stock has bottomed, and instead of predicting the lowest point, Cramer would buy with wide scales on the way down, gradually purchasing more; when it's so low you can hardly believe how poorly the stock is trading, you double down, he said. However, it is still important to leave room to put more money in when the stock finally bites the dust. Good indications that a stock has bottomed are when most of the analysts have downgraded it or when it doesn't decline lower on bad news. Heavy insider buying after a decline is a sure sign a stock is a buy.
When Bad Things Happen to Good Stocks
Cramer took issue with the notion that when a stock gets hammered it somehow deserved it; Plenty of great companies are unfairly sold off by investors who simply don't get it, he said. He emphasized homework is necessary to determine the difference between a broken stock and a broken company. Cramer recommended making a shopping list of favorite companies which are being forced down. He warned against assuming a so-called blue chip stock is invincible, because there is no such thing as a blue chip. Finally, when Cramer would sell into strength when the stock has completed its run.
Published By SeekingAlpha

Labels: Jim Cramer, Mad Money

To whom it may concern,
My name is Garrett Benner and I’m an associate with Benner & Piperato in Eastern Pennsylvania, USA. I currently represent a real estate developer who is looking to sell a fully approved 125 lot residential housing subdivision. All lots are approximately 1- acre. The reason for the sale has to do with lack of capital to make improvements (roads, drainage, etc). The approximate cost of improvements are $5 million. The location of the project is a 40 minute drive from Philadelphia, PA and approximately a 1 hour drive from New York City. The market value of these lots based on comparable sales are anywhere from $300-500k. It is the last tract of developable land left in the area known as Saucon Valley. The location of this project in relation to Saucon Valley country club also adds a significant amount of value to potential homebuyers (1/2 mile). Please let me know if you would be interested in such a project. I do feel there is value in this project due its location and overall reason for the sale. Let me know if I can send you more information on the project. I hope to hear from you.

Sincerely,
Garrett R. Benner
610-867-3900

Labels: distressed real estate, homebuilder, Real Estate, real estate investments