Jim Cramer Blog

Here are 7 stocks to watch...
Ambac Financial (NYSE:ABK) lost nearly 20% after the company announced plans to raise $1.5 billion and stop insuring mortgage-backed securities. ABK's Short Term PowerRating is 5.
Big Lots (NYSE:BIG) was the biggest gainer in the S&P500 after the company beat estimates and raised guidance. BIG's Short Term PowerRating is 3.
Chico's FAS (NYSE:CHS) lost nearly 14% after revenues fell short. CHS' Short Term PowerRating is 5.
BJ's Wholesale Club (NYSE:BJ) rose nearly 7% after the company beat estimates and reported an increase in same store sales. BJ's Short Term PowerRating is 5.
After the close, PETsMART (NasdaqGS:PETM) missed earnings estimates by $0.07. PETM's Short Term PowerRating is 4.
Urban Outfitters (NYSE:URBN) is scheduled to report before the market open, with analysts expecting $0.29. URBN's Short Term PowerRating is 5.
Do you think Exxon Mobil (NYSE:XOM) will close up or down on Friday? XOM's Short Term PowerRating is 4. Play TradingMarkets Up or Down Daily Stock Contest for the chance to win $1000 every month by predicting the direction of a stock.
Published By TradingMarkets.com

Labels: ABK, BIG, BJ, CHS, Hot Stocks, PETM, URBN, XOM

Get into General Motors (GM), Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.
The auto giant is a "heavily unionized company, and it's going to be non-unionized," Cramer said. "This is a non-union company very soon. I salute GM." He recommended preferred shares for more conservative investors.
Cramer weighed in on Kynikos Associates' Jim Chanos' short position in bond insurers MBIA (MBI) and Ambac (ABK). The move makes "a huge amount of sense," Cramer said. "The Buffett thing is really bad" for these companies.
"I admit Chanos is a rigorous thinker. I have watched his thinking for 20 years," Cramer added, recalling the investor's excellent call on Boston Chicken, which filed for bankruptcy in the late 1990s.
Cramer also discussed Pershing Square Capital founder Bill Ackman's call on Sears (SHLD). Cramer agrees with Ackman's long position in the retailer. "In Eddie Lampert I trust," he proclaimed, referring to Sears' chairman. "I'm not going back on my view."
Cramer continued, "It's very clear that this is a housing recession and [Sears is] housing." He said he thinks critics have been too hard on Lampert and Sears.
Published By TheStreet.com

Labels: ABK, CNBC's Stop Trading, GM, Jim Cramer, MBI, SHLD, Stop Trading

Stock index futures rose on Friday as strong earnings from Microsoft Corp (NasdaqGS:MSFT - News) and a speedy agreement on a U.S. economic stimulus package helped boost investor confidence.

Shares of Ambac Financial Group Inc's (NYSE:ABK - News) rose on a London newspaper report that investor Wilbur Ross is in serious talks to take over the bond insurer. Concerns insurers might lose their top credit ratings forcing massive bond losses for investors have weighed on global markets all week.
Microsoft raised its full-year earnings outlook above Wall Street targets and reported a 79 percent rise in quarterly profit.

Labels: ABK, Ambac Fiancial Group Inc., Microsoft Corp., MSFT, Tax Stimulus

Consolidation in key industries may help investors in this oversold market, Jim Cramer said on CNBC's "Stop Trading!" segment Thursday.
Cramer commented on the overall economic condition, prodded by Federal Reserve Chairman Ben Bernanke's speech today: "We are at the precipice. ... We need shotgun marriages."
Bank of America (BAC) helped the odds of one such marriage today by announcing a deal with beleaguered mortgage lender Countrywide (CFC).
"This is what happens at the bottom," Cramer said. "I just don't know why the Fed would say you got to pay a premium for Countrywide." He added that "They don't want Countrywide to go out of business, because the servicing thing would play havoc." Cramer believes that Wachovia (WB) and Wells Fargo (WFC) will respond well to a rate cut: "These stocks go down every day."
Berkshire Hathaway's (BRKA) overtures to bond insurers Ambac (ABK) and MBIA (MBI) yesterday also indicated there may be hope in the troubled financial markets, Cramer said.
Airline stocks were treated to a similar rebound today, Cramer noted. Calling American Airlines operator AMR (AMR) "worth a lot," Cramer said that in a month, he will be recommending the group.
Cramer continues to recommend the agricultural sector. "I love the ag guys because ag is so good," he said. "That Mosaic (MOS) was down yesterday was just the shorts pressing their bets again."
Published By TheStreet.com

Labels: ABK, AMR, BAC, BRKA, CFC, Jim Cramer, MBI, MOS, Stop Trading, WB, WFC

Coca Cola (KO) is a good pick for 2008's volatile trading environment, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"Coca Cola said on my show not that long ago [that] raw costs [and] commodity costs actually peaked. ... People are paying much more for those earnings because they're so consistent. ... Coke is going to continue to go higher," Cramer said.
Meanwhile, Berkshire Hathaway (BRKA) insurance executive Ajit Jain is spurring a short squeeze on Ambac (ABK) and MBIA (MBI), Cramer said.
Cramer's skeptical about Jain's assertion today on CNBC that Berkshire Hathaway may buy one of the beleaguered bond insurers. "Why open a business and therefore crush your competitors when you want to buy?" He says it doesn't make sense to go shooting against them and also buy them.
Cramer is leery of Ambac and MBIA's viability. "Buffett has historically not wanted to buy black boxes," Cramer continued. "Eric Dinallo, [New York's] superintendent of insurance, is saying 'I don't trust these companies.'"
"The shorts cover then put out," Cramer concluded, because of continued turmoil in the housing and financial markets.
Cramer also commented on Google's (GOOG) recent bounce. "I still think Google is the tell for this market. ... It is not the fundamentals driving Google or Apple (AAPL). If that were the case, Apple would be at $200 and Google would be at $700."
Published By TheStreet.com

Labels: AAPL, ABK, BRKA, GOOG, Jim Cramer, KO, MBI, Stop Trading

Amback (ABK), Wachovia (WB), Countrywide Financial (CFC), MGIC (MTG), Washington Mutual (WM), Fannie Mae (FNM), Freddie Mac (FRE), Pepsico (PEP), Colgate (CL), Procter and Gamble (PG), Diageo (DEO)
Cramer said the Fed's liquidity strategy is going to make banks suffer more and noted the bad performance of ABK, WB, CFC, MTG, WM, FNM and FRE. He said favorite defensive stocks PEP, CL, PG and DEO were thriving. Cramer called on the Fed to vacate its Ivory Tower and find out what is really going on in the market.
Apple (AAPL), Hewlett-Packard (HPQ), Google (GOOG), Research in Motion (RIMM), Intel (INTC), Nvidia (NVDA), Texas Instruments (TXN), Sigma Designs (SIGM), AT &T (T)
Cramer commented if the Fed had cut half a point, there would be more stocks to recommend, but with a quarter point interest rate reduction, it looks like slim pickings, except for tech. His perennial favorites in the sector: AAPL, HPQ, GOOG, RIMM, INTC, NVDA, TXN are in great shape, Cramer said.
In addition, Cramer singled out Sigma Designs as a play on the decline of cable companies and as comparable services are provided by telephone companies. AT &T announced it is spending $5 billion on its U-verse TV service, and Sigma, which designs the chips for service, will benefit. Analysts raised their price targets after Sigma reported a fantastic quarter, and the company has a high quality problem of not making enough chips to meet demand. Cramer suggests letting SIGM come down a bit before buying.
Published By SeekingAlpha

Labels: AAPL, ABK, CFC, CL, DEO, FNM, FRE, GOOG, HPQ, INTC, Jim Cramer, Mad Money, MTG, NVDA, PEP, PG, RIMM, TXN, WB, WM

The Dow dropped 362 points and the Nasdaq fell 64 points Thursday, crushing the stock market. The Chairman & CEO of Merriman Curhan Ford & Co, Jonathan Merriman, joined the show to discuss stocks he feels have potential in the selloff. Merriman likes Smith & Wesson (SWHC) here and thinks it's a huge opportunity to buy the stock while it's low. Macke still likes video game stocks like Electronic Arts (ERTS) and Activision (ATVI). Adami recommends buying Aministaff (ASF). Finerman likes NYMEX (NMX) and Crocs (CROX). Merriman thinks she is very early to be buying CROX here. Najarian favors Manitowoc (MTW).
The founder and president of Seabreeze partner, Doug Kass, joined the show to give his take on the mortgage insurers. Kass thinks names like Ambac (ABK), PMI Group
(PMI) and MBIA (MBI) don't have enough capital to keep running. Kass also says his sources are telling him that Citigroup (C) will get rid of CEO Chuck Prince this weekend. Charlie Gasparino joined the show to discuss his take on the CEO turmoil at Citigroup and agrees with Kass and expects that Citigroup CEO, Chuck Prince, is about to get the axe.
Najarian feels that Bear Stearns (BSC) and Merrill Lynch (MER) would benefit the most from a management change. Finerman is long Goldman Sachs (GS) and short Merrill.
Word on the Street
Crude oil traded over $96 before selling off to close at $93. Adami was surprised that Exxon Mobil (XOM) didn't go lower on Thursday. He sees the valuation on Chevron (CVX) as compelling and there could be a buying opportunity in the stock. Tesoro (TSO) is another name to look at here.
Microsoft (MSFT) bucked the trend on Thursday and finished the day up. Macke still likes Hewlett-Packard (HPQ).
Las Vegas Sands (LVS) plunged 17% after hours on a bearish earnings report.
Pops & Drops
Pops- Investment Technology Group (ITG) traded up 2%.
United Therapeutics (UTHR) popped 38% higher after study results showed its inhaled-high blood drug.
Drops- Sprint Nextel (S) fell 3% after profits fell 73% in the third quarter.
Manitowoc (MTW) fell 11% off of concerns for the crane maker's backlog.
Garmin (GRMN) fell 7% on concerns over a bidding war with TomTom for Tele Atlas.
Target (TGT) fell 5%.
Face2Face
Cathy asked if Google, Apple (AAPL) and Research In Motion (RIMM) trying to beat each other for the highest share price? Macke says Apple and Research In Motion have split. He advised Cathy not to believe the hype on stock splits just buy less shares.
Scot from Virginia asked if Adami liked Fluor (FLR). Adami still likes Fluor and he feels the story is still intact.
Another writer asked what Finerman is going to do with BEA Systems (BEAS) with the Oracle (ORCL) deal off. Finerman thinks by the end of the day we will see a deal with Oracle and BEA Systems.
John said he owns some Dicks Sporting Goods (DKS) and knows Najarian likes them as well based partially on their sales of names like Under Armour (UA), Nike (NKE) and Crocs. He asked if the recent sell-off based on Croc's numbers and does this change your bullish sentiment on the company? Najarian tells John that even though there are some concerns for Dicks Sporting Goods, right now he still likes the company.
Final Trade
Macke would buy Electronic Arts (ERTS) on a dip.
Adami favors Intel (INTC).
Finerman prefers Flowserve (FLS).
Najarian recommends buying Cypress Semiconductor (CY) for a solar play.

Labels: ABK, ASF, BSC, CNBC, CROX, Fast Money, Fast Money Recap, MBI, MTW, PMI, SWHC

Ambac (NYSE:ABK - News) was upgraded to overweight from equal-weight at Morgan Stanley
Andersons Inc. (NASDAQ:ANDE - News) was upgraded to buy from neutral at Banc of America Securities. The firm also lifted its price target on the stock to $52 from $44.
Bear Stearns (NYSE:BSC - News) said its fourth quarter net income rose 38% to a record $562.8 million, or $4 a share on total revenue of $4.47 billion. A year ago, the company earned $407 million, or $2.90 a share, on $3.18 billion total revenue. Analysts polled by Thomson Financial, on average, expected the company to earn $3.36 a share on revenue of $2.20 billion.
Cadence Design Systems (NASDAQ:CDNS - News) priced offerings of senior convertible notes worth a total of $500 million. The company said the initial conversion rate for both the 2011 notes and the 2013 notes is 47.2813 common shares per $1,000 in principal amount of notes for a conversion price of about $21.15.
Carrizo Oil & Co. (NASDAQ:CRZO - News) was initiated with an outperform rating at RBC Capital Markets.
Ciena Corp. (NASDAQ:CIEN - News) reported fiscal fourth-quarter earnings of $13.1 million, or 14 cents a share, up from a year-ago loss of $252.9 million, or $3.06 a share. Last year's results included a total charge of $222.3 million related to impairment of goodwill and long-lived assets. On an adjusted basis, excluding items, the Linthicum, Md., maker of optical networking products earned $14.6 million, or 16 cents a share, in the latest quarter. Revenue rose 35.3% in the three months ended Oct. 31 to $160 million from $118.2 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 13 cents a share in the October period on revenue of $160 million. Looking ahead, Ciena said it expects low single-digit revenue growth in the first quarter on a sequential basis.
Costco Wholesale (NASDAQ:COST - News), the Issaquah, Wash., warehouse retailer, reported fiscal first-quarter net income rose 9.8% on 9.4% higher revenue. For the 12 weeks ended Nov. 26, Costco profit rose to $236.9 million, or 51 cents a share, from $215.8 million, or 45 cents, in the year-earlier period. Revenue reached $14.15 billion from $12.93 billion. Net sales rose 9% to $13.85 billion. Same-store sales -- revenue from stores open at least a year, eliminating the effects of acquisitions and divestitures -- rose 4%. A survey of analysts by Thomson First Call produced consensus estimates of 50 cents of profit on $14.06 billion of sales for Costco. The retailer also said it would take a second-quarter charge of $45 million as it increased the exercise price on certain stock options for more than 1,000 employees who are U.S. taxpayers. It said that it's making the changes in line with its internal stock-option inquiry and with a Nov. 30 ruling by the U.S. Internal Revenue Service. The company also said it would make payment to the employees to reduce the adverse tax effects of the move.
Cousins Properties Inc. (NYSE:CUZ - News) was upgraded to overweight from equal-weight at Lehman Bros. The firm also lifted its price target on the stock to $38 from $35.
Empire Resources (AMEX:ERS - News) said its board has declared a special dividend of 16 cents a share for the fourth quarter, in addition to its regular quarterly payout of 5 cents a share. The dividends are to be paid on Jan. 17 to shareholders of record on Dec. 29. The Fort Lee, N.J., distributor of semi-finished aluminum products also said its board plans to review its internal dividend policy on a quarterly basis.
First Potomac (NYSE:FPO - News) was upgraded to buy from neutral at Merrill Lynch.
Ford Motor (NYSE:F - News) was upgraded to neutral from sell at Merrill Lynch, which said the automaker's efforts to raise liquidity have been more successful than previously expected. Analyst John Murphy believes the next move by Ford's chief executive Alan Mulally will be to unveil a new operating plan at the Detroit auto show in mid-January. "It is tough to believe that a turnaround can be affected in short order, but clarity on Mulally's plan could be viewed positively by the market," Murphy said in a research note. "Furthermore, Ford's new liquidity position may allow it to be tougher or more creative in the course of negotiating a contract with the United Auto Workers in 2007."
GenVec (NASDAQ:GNVC - News) shares leapt after the Gaithersburg, Md.-based biopharmaceutical company said an independent data safety monitoring board has completed its interim analysis of safety data from the ongoing Phase II/III clinical trial with TNFerade in locally advanced pancreatic cancer. The DSMB recommended that the trial continue, GenVec said, and also supported the use of endoscopic ultrasonography as an alternative to percutaneous tumor administration. GenVec said it has provided its interim safety data to the Food and Drug Administration and is waiting for final clearance to move forward with EUS administration.
Great Wolf Resorts (NASDAQ:WOLF - News) was upgraded to buy from hold at A.G. Edwards.
Honeywell International (NYSE:HON - News) said it expects earnings of $2.85 to $2.95 a share for fiscal 2007, a performance that would represent growth of between 13% and 17%. It sees sales growing about 5% to $32.6 billion for 2007. The Morris Township, N.J., diversified technology and manufacturing products company sees 2007 cash flow from operations of between $3.2 billion and $3.4 billion for the year with free cash flow projected between $2.4 billion and $2.6 billion. The current average estimate of analysts polled by Thomson First Call is for earnings of $2.93 a share in fiscal 2007 on revenue of $32.75 billion. The Dow component also confirmed an outlook for earnings of $2.51 to $2.53 a share in fiscal 2006 on sales of roughly $31.2 billion. Wall Street's current consensus estimate for 2006 is for earnings of $2.52 a share on revenue of $31.15 billion.
Icos (NASDAQ:ICOS - News) issued a 2006 and 2007 financial forecast early Thursday, ahead of a planned December 19 special shareholders meeting where stockholders will vote on whether to accept partner Eli Lilly's takeover offer of $32 a share in cash. For the fourth quarter 2006, Icos sees earnings of 17 to 22 cents a share, with full-year earnings of 33 to 38 cents a share. Including taxes, Icos expects fourth quarter results of 26 to 34 cents a share, and 49 to 57 cents for the full year 2006. For 2007, Icos is expecting earnings per share of 78 to 94 cents a share. Including taxes, the 2007 range is earnings per share of $1.17 to $1.41. Icos and Lilly co-market the erectile dysfunction drug Cialis.
Insmed (NASDAQ:INSM - News) shares surged after the biopharmaceutical company said recent study results confirm that Iplex, a treatment for growth failure, allows more flexibility in handling and administration for patients and caregivers.
Input/Output Inc. (NYSE:IO - News) said it's received a contract to provide 14 of its land seismic imaging systems to Oil and Natural Gas Corp. Ltd., India's national oil company. The company said the deal is worth more than $50 million.
Journal Register Co. (NYSE:JRC - News) agreed to sign on to Google's Print Ad program, which allows current Google advertisers to buy ads in print newspapers. Journal Register said its flagship newspaper, the New Haven (Conn.) Register, will participate in the partnership. Financial terms were not disclosed. More than 50 major newspapers are currently a part of the Google program, including the New York Times, the Boston Globe, the Washington Post and the Seattle Times. Newspapers are seeking ways to increase print ad revenue, which has been on the decline for several years as more readers turn to the Internet for news and information, and several traditional newspaper advertisers have fallen on hard times.
Liberty Media Holding Corp. (NASDAQ:LCAPA - News) was upgraded to buy from hold at Deutsche Bank Securities.
LodgeNet Entertainment Corp. (NASDAQ:LNET - News) agreed with Liberty Media to purchase Ascent Entertainment Group Inc., which owns On Command Corp., for $380 million. The purchase will be paid at closing by issuing 2.05 million LodgeNet shares, and $332 million in cash.
Microsoft Corp. (NASDAQ:MSFT - News) and Hewlett-Packard (NYSE:HPQ - News) said they have entered a 3-year agreement to sell technology products and services. The companies said they would invest at least $300 million to cover their collaborative efforts.
Nuance Communications (NASDAQ:NUAN - News) was initiated with a buy rating at Citigroup Investment Research.
Pacer International (NASDAQ:PACR - News) was initiated with a buy rating at Key Banc Capital Markets.
PGT Inc. (NASDAQ:PGTI - News) was upgraded to buy from neutral at SunTrust Robinson Humphrey. The firm cited valuation.
Stanley Works (NYSE:SWK - News) agreed to acquire HSM Electronic Protection Services, a provider of security alarm monitoring services based in Lisle, Ill., for $545 million. Stanley expects the deal to close in early 2007. It anticipates the transaction will be neutral to earnings in 2007 before adding 20 to 25 cents a share to earnings by 2009, the third year, and 35 to 35 cents a share to earnings by 2011, the fifth year.
Suntech Power Holdings (NYSE:STP - News) was initiated with a buy rating at Jefferies & Co.
Supervalu (NYSE:SVU - News) said it now expects fiscal 2007 per-share earnings of $2.32 to $2.43, up from its previous range of $2.18 to $2.41. The Minneapolis-based supermarket operator also narrowed its 2007 pro forma view, saying it sees per-share earnings of $2.66 to $2.74. The previous pro forma earnings view was $2.62 to $2.80 a share for the year.
Thermo Fisher Scientific (NYSE:TMO - News) estimated fourth-quarter adjusted earnings at 52 cents to 54 cents a share and increased its estimates of adjusted earnings for 2006 and 2007. A survey of analysts by Thomson First Call produced a consensus estimate of 53 cents for the quarter. For 2006, Thermo Fisher expects to earn an adjusted $1.83 to $1.86 a share on revenue of $8.8 billion. Thermo Electron and Fisher Scientific merged early in November; the revenue estimate is pro forma, as if the two companies had been combined for the full year. First Call projects earnings of $1.81 for 2006. In 2007, the company expects to earn $2.35 to $2.45 a share, compared with its previous estimate of $2.27 to $2.37.
Topps Co. (NASDAQ:TOPP - News) was initiated with a buy rating at Morgan Joseph & Co. The firm set a price target on the stock of $11.
Shares in Worthington Industries (NYSE:WOR - News) jumped after Prudential Equity Group released a note late Wednesday speculating that the Columbus, Ohio-based steel processor would be a likely target for No. 1 steel maker Mittal Steel (NYSE:MT - News), the main subsidiary of Arcelor Mittal . Prudential analyst John Tumazos noted Mittal has made public statements indicating an interest in owning steel distribution assets in the U.S. Worthington "would effectively satisfy MT's requirements," said Tumazos, adding he had no inside information about any deal.
-MarketWatch

Labels: ABK, ANDE, BSC, CDNS, CIEN, COST, CRZO, CUZ, ERS, F, FPO, GNVC, HON, ICOS, INSM, IO, JRC, SVU, TMO, WOLF