Jim Cramer Blog

The Federal Reserve finally got it right by cutting its target rate 50 basis points, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"There's no interpretation, this was just positive," Cramer said. "We have money flush from the sidelines." He believes that the financials will mount a recovery based on the Fed's move. "Bank of America (BAC) will want to buy Countrywide (CFC)."
"Fifty basis points is good," Cramer continued. He anticipates a market recovery thanks to the rate cut.
Cramer observed that some positive results are already visible. "People bought the WaMu (WM)preferred. That's good. ... This is a huge positive, and the market should react. ... It's huge. ... GM's (GM) breaking out. The GM preferred ... is a fantastic piece of paper."
Investors should get in now, although "perhaps they'll give you something that is negative to give you another chance," Cramer said.
In Cramer's view, the export economy is "red hot." He said he was "raising numbers on all financials."
"All is forgiven," Cramer said of his previous animosity toward the Federal Reserve. "Financials should be bought."
Cramer added that playing the agriculture boom is still a smart move. "Oil's going to $100. ... I think you can still own Bunge (BG) upgraded. ... Archer Daniels (ADM) is good."
On the overall economy, Cramer declared, "I am bullish. ... I'm not going to change my mind ... [the Fed] did it right."

Labels: ADM, BAC, BG, CFC, GM, Jim Cramer, Stop Trading, WM

New Rule #1 : There's a market for everything; pay attention to how it works, Archer Daniels Midland (ADM), Andersons (ANDE) and VeraSun (VSE)
Cramer reiterated his recommendation that investors read his first book: Jim Cramer's Real Money: Sane Investing in an Insane World, in addition to his newest publication, Jim Cramer's Mad Money: Watch TV Get Rich, which contains 20 brand new investment rules, 5 of which he described on Tuesday's show. His first new rule requires that investors be aware of how stocks trade and that there are many sub-markets within the market. When faced with a trendy stock, it is more important to pay attention to supply and demand than media hype. For instance, late in 2005 when demand for ethanol stocks was high and supply was low, it was possible to make truckloads of money with ADM and ANDE. However, when VeraSun went public in June 2006, Cramer declared that the ethanol story was over, since the supply of ethanol exceeded demand. If you'd just been paying attention to the fundamentals, or to the hype about ethanol in the media, you would've been caught totally off-guard by the downturn in ethanol, Cramer said.
New Rule #2: Make sure your stocks actually fit the bill, Microsoft (MSFT) and Cisco (CSCO)
In addition to doing homework, Cramer warned, Don't be bamboozled by what sector your stock belongs to. Instead, know precisely what you own and why you own it. Cramer cautions viewers not to confuse a rally in an entire sector with a rally within the sector. Broad sector rallies are not too difficult to spot or predict. For instance, when the Fed cuts interest rates, rallies are prevalent among cyclicals, and when the economy is perceived as being weak, consumer staples rally. However, most rallies don't work that way, Cramer said. For instance, when there were stories about a tech rally in June 2005, Cramer chose MSFT and CSCO as names that represented tech, when the upsurge was actually a gadget rally, and did not affect these stocks. Cramer suggests looking at industries within sectors.
New Rule #3: Latin America is Always a Trade, BanColombia (CIB)
Cramer envisions that one day this rule may be revoked, but not in the near future, because every time there is an amazing, long-term growth story in Latin America, it will wind up being a trade. This has nothing to do with the fundamentals of the companies, but is the result of huge market-moving investment firms which have the conviction that Latin America is always a trade, and the stocks get hammered as soon as they move on. Cramer admitted that he made this mistake by thinking that CIB was an investment when it was actually a trade.
New Rule #4: Be a Lemming.
Although he confessed that, at first, this rule may sound stupid and terrible, it actually makes sense to go with the big institutions and the movement of the market if the investor has done sufficient homework. This doesn't mean to ride momentum blindly, but it is true that stocks which hit a 52-week high often keep increasing. This isn't about being a unique and individual snowflake. It's about trying to make money, Cramer said.
New Rule #5: Don't be afraid to say something is too hard.
Some things are just too difficult to game, even after doing lot of homework. Cramer confesses that his rough spot is predicting restaurant same-store sales growth; There are too many better, easier ways to make money in the market, he said. Restaurant CEOs have a hard time predicting their own same-store sales, and the weirdest, most unexpected factors can cause worse-than-expected results. Since there is always a bull market somewhere, Cramer doesn't see the point in knocking one's head against the wall with something that is too hard.
Published By SeekingAlpha

Labels: ADM, ANDE, CIB, CSCO, Jim Cramer, Mad Money, MSFT, VSE

Citigroup (C) dropped the ball on today's earnings report, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday
I got this wrong," he said. "I expected bold action ... I didn't get bold action." Cramer was expecting CEO Vikram Pandit to take more writedowns this quarter to demonstrate that the bank was righting itself. "If you took all that capital ... I don't know why didn't you take out more of the bad."
Cramer added that saving triple-A rated bonds was a fool's errand. "Every other bit of triple-A ... is backed up by agency paper that you cannot afford. ... If you hide behind triple-A, it better be the American Automobile."
Pandit's management actions were not forceful enough either, Cramer believes. "I want to see [Japanese brokerage and Citi acquisition] Nikko Cordial out ... I want to hear a repudiation of previous management. ... It's time for [board member] Bob [Rubin] to move on."
The action by Citigroup was not decisive enough. "There was a chance the stock could've been up today. ... The stock could've been up if [Pandit] went clean clean clean," Cramer said. "I just wanted bold statements. I'm not asking for Jack Bauer."
Cramer recommended trading out of Citi common stock and buying convertible preferred shares. "I would love to be able to swap this," he said.
Cramer concluded the segment by issuing caution about a pick he'd been plugging for a long time: "Agriculture went parabolic yesterday. ... When stocks go parabolic, meaning they went up $8 like Mosaic (MOS) ... If you don't take something off the table, you're going to get hurt."
The entire agriculture sector is too hot lately, Cramer added, saying to watch out for stocks such as Archer Daniels Midland (ADM) and Deere (DE).
Published By TheStreet.com

Labels: ADM, C, DE, Jim Cramer, MOS, Stop Trading

Citigroup (C) fell 5% Monday after news of more write-downs and CEO Chuck Prince’s departure. Charlie Gasparino joined the show to give his opinion on Citigroup. He thinks that Citigroup didn’t pop on the news of Prince leaving because Chairman Robert Rubin failed to communicate the new Citigroup vision that everyone on Wall Street was looking for. Macke thinks that Citigroup has to clear the deck and bring in somebody new to run the company.
Chartology: Technical analyst John Roque of Natexis Bleichroeder was on the show to give his analysis on the technical signs in the market. Roque still likes the longer term trend line on the S&P moving average. He predicts that the financials will be under performers for a long time. Roque also points out that the trend for oil, silver and gold remains up and if history is a guide that up trend will continue. He is positive about Newmont Mining (NEM) and thinks the stock can trade into the high $80’s.
Ethanol: Archer Daniels Midland (ADM) is set to report earnings on Tuesday. Najarian tells investors to look to at Deere (DE) and Bunge (BG) instead. Adami would rather be in Potash (POT) for an ethanol play.
IAC/InterActive Corp (IACI) announced plans Monday to split up into 5 separate companies. Also, Kraft (KFT) is looking to sell its Post cereal business for $2.8 billion. Finerman is happy with the news. Macke also likes Kraft's plans, but he wasn’t a big fan of IAC/InterActive’s plans to spin off divisions. Najarian thinks that Johnson & Johnson (JNJ) could benefit from a break up.
Technology: Google (GOOG) announces plans to create an open platform, Android, for the mobile phone market. Sun Microsystems (JAVA) falls after hours on lighter then expected revenue numbers. Macke thinks companies like VMware (VMW) and its technology could put JAVA out of business in the future. Dell (DELL) announced plans on Monday to buy virtualization software maker EqualLogic for $1.4 billion. Activision (ATVI) reports a second quarter profit as revenue soars.
Word on the Street: Time Warner (TWX) CEO Richard Parsons will step down on January 1st and be replaced by Chief Operating Officer Jeffrey Bewkes. Finerman likes the retail stocks better than financials. She bought call options on Friday and Monday on Crocs (CROX) and also thinks Under Armour (UA) and Dick’s Sporting Goods (DKS) are interesting here. PetroChina (PTR) topped $1 trillion in market cap surpassing Exxon Mobil (XOM). Adami likes that Chevron (CVX) preformed okay in a lousy tape today.
Pops & Drops
Pops -First Solar (FSLR) traded up 10% after hours on news of a $1 billion module supply contract.
Marvel Entertainment (MVL) traded up 16% on a strong profits report.
Mattel (MAT) traded up 4%
Ballard Power Systems (BLDP) traded up 12%
WellCare Health Plans (WCG) popped 22% on a 67% increase in profits.
Sysco (SYY) traded up 2% after reporting a 16% rise in profits.

Labels: ADM, ATVI, BG, BLDP, CROX, DE, DELL, DKS, Fast Money Recap, GOOG, IACI, JAVA, JNJ, MAT, MVL, NEM, POT, TWX, UA, VMW

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Cutera (NasdaqGS:CUTR - News) beat earnings expectations on Monday afternoon, announcing $0.30 EPS over an expected $0.29 EPS. CUTR's PowerRating (for Traders) is 6.

Novatel Wireless (NasdaqGM:NVTL - News) beat earnings expectations on Monday, with $0.31 EPS over a consensus of $0.28 EPS. NVTL's PowerRating (for Traders) is 5.
Archer-Daniels (NYSE:ADM - News) reports earnings on Tuesday morning, with analysts looking for $0.59 EPS. ADM's PowerRating (for Traders) is 6.
When El Paso (NYSE:EP - News) announces quarterly results on Tuesday before the bell, watch for $0.23 ESP. EP's PowerRating (for Traders) is 5.
Fuel-Tech (NasdaqGM:FTEK - News) should report $0.06 EPS tomorrow morning before the market opens. FTEK's PowerRating (for Traders) is 6.
Analysts are watching for the International Securities Exchange (NYSE:ISE - News) to report $0.53 EPS on Tuesday morning. ISE's PowerRating (for Traders) is 5.
Lear (NYSE:LEA - News) should announce $0.17 EPS tomorrow morning. LEA's PowerRating (for Traders) is 4.

Labels: ADM, CUTR, EP, FTEK, ISE, LEA, NVTL, Stocks to Watch

Procter & Gamble (PG): Procter & Gamble is cheap to the mid-$70s. Stay in it.

Dominion (D): Cramer gives it the triple buy!

Omniture (OMTR): "Stock is going to $35. Do not sell."

Boeing (BA): Sotck goes to $120. Boeing "all aboard."

Ceragon Networks (CRNT): "Just go buy Cisco (CSCO)"

Intuitive Surgical (ISRG): Wait until you have $10,000 or more. Cramer endorses the stock.

Archer Daniels Midland (ADM): Buy Deere (DE), Monsanto (MON), and Bunge (BG) instead. "52 week high."

Seagate (STX): Cramer doesn't like the disk drive stocks, and thinks you should go with Intel (INTC) or Hewlett-Packard (HPQ).

Chevron (CVX): Cramer thinks you have to own the stock unless you own ExxonMobil (XOM) or ConocoPhillips (COP).

Labels: ADM, BG, COP, CRNT, CSCO, CVX, D, DE, HPQ, INTC, ISRG, Jim Cramer, Lightning Round, Mad Money, MON, OMTR, PG, STX, XOM

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Archer-Daniels Midland (NYSE:ADM - News) reports earnings on Monday before the bell; watch for $0.59 EPS. ADM's PowerRating is 5.
Cameco (NYSE:CCJ - News) looks to report $0.42 EPS on Monday morning before the bell. CCJ's PowerRating is 6.
Humana (NYSE:HUM - News) is expected to announce $1.39 EPS on Monday morning. HUM's PowerRating is 6.
Monster Worldwide (NasdaqGS:MNST - News) is looking to report $0.34 EPS when the company announces earnings on Monday morning. MNST's PowerRating is 7.
RadioShack (NYSE:RSH - News) should report $0.24 EPS early Monday. RSH's PowerRating is 7.
CF Industries (NYSE:CF - News) and Titanium Metals (NYSE:TIE - News) both report after the bell on Monday. Watch for heightened price and volume. CF's PowerRating is 9 and TIE's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADM, CCJ, CF, HUM, MNST, RSH, TIE

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Archer-Daniels Midland (NYSE:ADM - News) reports earnings on Monday before the bell; watch for $0.59 EPS. ADM's PowerRating is 5.
Cameco (NYSE:CCJ - News) looks to report $0.42 EPS on Monday morning before the bell. CCJ's PowerRating is 6.
Humana (NYSE:HUM - News) is expected to announce $1.39 EPS on Monday morning. HUM's PowerRating is 6.
Monster Worldwide (NasdaqGS:MNST - News) is looking to report $0.34 EPS when the company announces earnings on Monday morning. MNST's PowerRating is 7.
RadioShack (NYSE:RSH - News) should report $0.24 EPS early Monday. RSH's PowerRating is 7.
CF Industries (NYSE:CF - News) and Titanium Metals (NYSE:TIE - News) both report after the bell on Monday. Watch for heightened price and volume. CF's PowerRating is 9 and TIE's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADM, CCJ, CF, Hot Stocks, HUM, MNST, RSH, TIE

On the Fed:Cramer reiterated his prediction that the Fed will cut interest rates, despite the recent rise. He thinks it is "too early" to say a cut isn't possible, and a slowing U.S. economy should convince the Fed to make a reduction.
Lamar Advertising (NasdaqGS: LAMR - News) and Daktronics (NasdaqGS: DAKT - News): Cramer said he sold LAMR because he is concerned that flashing billboards may not be so popular; "We have too many distractions already." He also noted DAKT, which makes the boards, is not doing well.
Archer Daniels Midland (NYSE: ADM - News): After ADM's "really horrible quarter" Cramer confesses he was wrong to get behind this company; "I thought that they had congressional mindshare."
General Dynamics (NYSE: GD - News): Concerning worries about nukes and China, Cramer said, "I would buy GD. GD is my cold war play."

Published by SeekingAlpha

Labels: ADM, DAKT, GD, Jim Cramer, LAMR, Stop Trading

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Principal Financial Group (NYSE:PFG - News) missed earnings on Monday after the close; analysts were looking for $0.93 EPS, but PFG only announced $0.87 EPS. PFG's PowerRating is 5.
Standard Microsystems (NasdaqGS:SMSC - News) beat earnings on Monday, announcing $0.44 EPS over an expected $0.37 EPS. SMSC's PowerRating is 7.
Archer-Daniels (NYSE:ADM - News) reports earnings on Tuesday before the bell; look for $0.61 EPS. ADM's PowerRating is 6.
Celanese (NYSE:CE - News) announces quarterly earnings Tuesday before the market opens, with analysts watching for $0.73 EPS. CE's PowerRating is 4.
When Liz Claiborne (NYSE:LIZ - News) reports earnings Tuesday morning, watch for $0.60 EPS. LIZ's PowerRating is 5.
NYMEX (NYSE:NMX - News) should report $0.57 EPS before the bell on Tuesday morning. NMX does not have a PowerRating due to its short trading history.
Watch for Qwest (NYSE:Q - News) to announce $0.09 EPS on Tuesday morning. Q's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: ADM, CE, Hot Stocks, LIZ, NMX, PFG, Q, SMSC

Bullish Calls:
Archer Daniels Midland (NYSE: ADM): 'We're not going to go into the ethanol business! If we do, we're going to buy the one ethanol company that I think actually has earnings and a business model, which is ADM!'Danaher (NYSE: DHR): 'Down $4 from the high. I want you to pull the trigger. I want you to get long DHR.'Citigroup (NYSE: C): 'Chuck Prince overpaid today, made a dilutive acquisition for a hedge fund... Once again, board members... Mr. George David, Mr. Kenneth Derr, Mr. Rubin... Will you please broom the guy! C'mon! C - I like it, because I think the company will eventually come to their senses and give Chuck Prince the boot... 'Haynes (NasdaqGM: HAYN): 'Did we nail that one after the secondary? What did we pick up? A quick $12 there? This stock is going higher. This is one of those high-performance alloy stocks ... The stock is on a ramp. Yes! HAYN is a keeper!'Eli Lilly (NYSE: LLY): 'LLY's finally starting to get a little jiggy here. It is not my favorite at all ... I think it goes to $60 by options expiration next Friday, and then, I want you to sell it. Not until then.'Abbot Laboratories (NYSE: ABT)Crocs (NasdaqGS: CROX): 'How much do we like CROX?! ... Literally, literally, more than a quarter of the stock is short? That's wrong. We like CROX. We think it goes to $60.'National Oilwell Varco (NYSE: NOV): 'It's up a quick $15 but, you know what? NOV at $83 goes to $90. I'm sticking by it. It grows at 25%. It has a 20x multiple.'Transocean (NYSE: )GobalSantaFe (NYSE: GSF)Halliburton (NYSE: HAL - News): 'I think HAL is going to make a bid for Weatherford.'Immucor (NasdaqGS: BLUD): 'At $20, I had that management on, and I embraced that stock and, you know what? 52-week high.'Akamai Technologies (NasdaqGS: AKAM): 'I'm still going to send you to AKAM. Because, if you want web, I'm giving you AKAM.'J.C. Penney (NYSE: JCP): 'Why don't you buy some JCP? I want to stick with the best of the breed. I want you to stick with those that should get the benefit of the doubt...'
Bearish calls:
Aventine Renewable Energy (NYSE: )JetBlue (NasdaqGS: JBLU): 'Here we are, all the way back to $11 ... We just need to see this quarter. When we find out how much money we had to put into the new systems ... we will get bullish and pull the trigger!'Digital River (NasdaqGS: DRIV): 'Cry me a digital river! This stock is up so much since I recommended it, I'm scared of it. Sell, sell, sell!'Open Text (NasdaqGS: OTEX): 'You know what? That is a good company. I tend not to like this kind of web company.. sell, sell, sell!'Family Dollar Stores (NYSE: FDO): 'No! No! I don't think FDO's having that good a quarter. It's down 10% from its high. I don't want you in that. '
Published By SeekingAlpha

Labels: ABT, ADM, C, DHR, FDO, GSF, HAL, JBLU, JCP, Jim Cramer, Lightning Round, LLY, Mad Money, NOV, OTEX

Stocks rebounded from a volatile morning session to essentially close flat. A change in U.S. tariff policies towards some goods from China put a scare into investors in the morning who feared the start of a trade war, but stocks were gradually able to rebound in the afternoon and push into positive territory. Crude oil prices eased modestly. Overshadowing crude was a sharp drop in corn futures prices following an upbeat corn crop forecast from the government. The 10-year Treasury note closed unchanged.
Stocks dropped sharply in the morning after the Commerce Department announced it was reversing a long-standing policy and that tariffs will be imposed on some Chinese goods. The Bush Administration also said it is considering a request from the U.S. paper industry for protection from cheaper imports from China. In economic news, the Commerce Department earlier reported February personal income rose at a seasonally adjusted rate of 0.6%. Personal consumption grew 0.6% from the prior month.
Corn futures fell sharply on the Chicago Board of Trade after the federal government released its crop forecast. The Department of Agriculture said farmers will plant 90.5 million acres of corn this spring, above its earlier estimate of 87 million acres, and about 15% more than the 78 million acres of corn planted last year. Ethanol producers like Archer Daniels Midland (NYSE: ADM - News), who are expected to be buyers of the additional corn output, will benefit from the lower prices.
Shares of drugmaker Novartis (NYSE: NVS - News) shed -3.9% after the Food & Drug Administration asked the Swiss company to stop selling its irritable bowel treatment Zelnorm after it was linked to an increased risk of heart attacks and strokes. Zelnorm generated $561 million in sales in 2006, about 80% of which came from the U.S. market. The drug had been approved for the short-term treatment of constipation in women with IBS, and for patients younger than 65 with chronic constipation.
In merger news, two Los Angeles billionaires joined forces to bid for Tribune Co. (NYSE: TRB - News), which owns the Chicago Tribune, Los Angeles Times, numerous broadcast and other media properties, and the Chicago Cubs baseball team. Eli Broad and Ron Burkle submitted a bid valued at $34 a share that includes an employee ownership provision, according to reports. Tribune was pushed to seek a buyer by its disgruntled major shareholder, the Chandler family. Tribune shares gained 1.9% today.
Shares of game maker Take-Two Interactive Software (Nasdaq: TTWO - News) slipped -4.6% after a group of shareholders that control 46% of the company's stock succeeded in efforts to replace the current board with six new directors. The maker of the "Grand Theft Auto" game was caught up in an options back-dating scandal that resulted in a guilty plea to related charges from former Chairman and Chief Executive Ryan Brant.
PC maker Dell (Nasdaq: DELL - News) traded lower after the company said an internal investigation of its accounting practices had revealed evidence of misconduct, but the company did not say what it found. Dell, which faces federal investigations into its finances, said it will likely need to restate prior financial results once its internal probe is complete.
By the BullMarket.com Staff

Labels: ADM, DELL, NVS, TRB, TTWO

Last week, investors interpreted statements from the Federal Reserve Board's announcement that it would keep its primary interest rate at 5.25% as indicating the central bank might be moving towards a rate cut later in the year. Today, Fed Chairman Ben Bernanke suggested that investors may have jumped to that conclusion too quickly. Predictably, stocks sank today on renewed fears of inflation. The 10-year Treasury note also declined, while crude oil futures pushed above $64 a barrel.

Bernanke, in testimony before a joint congressional committee, said the decision to drop the long-standing phrase "additional firming" -- which was always interpretted to be code for "rate hike" -- was simply intended to give the bank "a bit more flexibility given the uncertainties that [the Fed is] facing and the risks that are occurring on both sides of [the Fed's] outlook." Inflation, Bernanke noted, remains a concern, but the economy is still growing, albeit more slowly than in previous years. He added that he does not expect the economy to slip into recession and that he sees no evidence that the problems occurring in the subprime sector are impacting the broader economy, which many investors have feared will happen.
Also weighing on stocks today was a weaker-than-expected rebound in durable goods orders in February. After a sharp -9.3% drop in January in orders for products expected to last at least three years, economists were looking for growth of 3.5% in February. According to the Commerce Department, durable goods orders rose by only 2.5% to a seasonally adjusted $207 billion.
Builders remained a focus of investors today. Beazer Homes USA (NYSE: BZH - News) sank -8.4% after the company confirmed that it is cooperating with a probe by several federal government agencies into its mortgage business. The company has not been accused of any wrongdoing at this point. Sinking for a second-consecutive day were shares of Lennar (NYSE: LEN - News), the Florida homebuilder that released sharply lower fiscal Q1 earnings yesterday. Following Lennar lower were Toll Brothers (NYSE: TOL - News), KB Home (NYSE: KBH - News), Pulte Homes (NYSE: PHM - News), and Hovnanian (NYSE: HOV - News).
Shares of Circuit City (NYSE: CC - News), the nation's No. 2 electronics retailer, moved higher after the company said it planned to cut about 8.5% of its in-store staff. The company said it would cut highly paid workers that earn "well above the market-based salary range for their role" and replace them with less costly workers. The company also plans to cut 130 corporate information technology jobs and outsource their functions to International Business Machines (NYSE: IBM - News). The nation's top electronics retailer, Best Buy (NYSE: BBY - News), closed lower.
Agriculture products giant and ethanol producer Archer Daniels Midland (NYSE: ADM - News) added 2.5% after Citigroup suggested the company will benefit from an expected drop in corn prices, which is a key ingredient in domestically produced ethanol. Fellow ethanol producer Verasun Energy (NYSE: VSE - News) also added 3.8%.

Labels: ADM, BBY, BZH, CC, HOV, IBM, KBH, LEN, PHM, TOL, VSE

Agrium (NYSE: AGU - News), Agco (NYSE: AG - News), Deere (NYSE: DE - News) and Archer Daniels Midland (NYSE: ADM - News), Bunge (NYSE: BG - News), Monsanto (NYSE: MON - News), Landec (NasdaqGS: LNDC), DuPont (NYSE: DD - News), VeraSun (NYSE: VSE - News), Baker Hughes (NYSE: BHI - News), Transocean (NYSE: RIG - News)
The "new OPEC" is comprised of companies which are involved in corn production for ethanol, and Cramer says that names such as AGU, AG, DE, ADM, and have "tremendous visibility" which means "you can pile in and not have to sell." He predicts the visibility continuing until 2009 and 2010, since both Democrats and Republicans are interested in raising tariffs to keep ethanol out of other countries, but he feels that the agricultural sector may have problems with capacity. Cramer also likes BG, MON, LNDC, and DD which are "long-term winners," and, unlike VeraSun, do not actually produce ethanol. He says that BHI is a "poorly executed company that is taking down the whole group." Cramer says that RIG is making too much cash to be public, and is surprised that it has not received an offer from a private equity firm. He does not think RIG will suffer the same fate as BHI because "Transocean is not levered to the Gulf; it is levered to the rest of the world, and that's what's important."

Labels: ADM, AG, AGU, BG, BHI, DD, DE, Jim Cramer, LNDC, MON, RIG, VSE, Wall Street Confidential

Bullish calls:
Archer Daniels Midland (NYSE: ADM - News): 'ADM has done nothing since that beautiful, magnifico quarter. For every two shares of AVR, you go buy one ADM.'Acme Packet (NasdaqGM: APKT): 'You are onto it .... 'APKT is a situation where I think that you - if it gets back to where it was this morning in that brief moment - you have to back up the truck.'Whirlpool (NYSE: WHR - News): 'WHR had run from $82 to $94. I think that WHR is going to hit it big. It had a very big acquisition with Maytag. It hasn't all worked out yet. It will work out.'ValueClick (NasdaqGS: VCLK): ''I am an old dot-commer from way back... and VCLK is one of the survivors that has done remarkable things on the web. This is a company that does advertising solutions for companies that need to be on the web ... great quarter. Great numbers. $26 goes higher. Management is continually beating estimates.'Vulcan Materials (NYSE: VMC - News): 'Now, that stock has been on a tear. But, you know what? We're not done. We liked it in the 70s - we like it to $140. I see 30 more points. It is cheap still, and we've still got a lot of highways that need aggregate.'MasterCard (NYSE: MA - News): 'The stock is up gigunda ahead of this quarter. I mean gigunda. Up another 2 smackers today - one of my best picks ever ... I still think their going to blow the numbers away! I don't think that MA is done.'Corning (NYSE: GLW - News): 'Ever since that quarter, where diesel engines were good, where fiber's coming back, where big-screen TV inventories have been worked off; I have said to buy GLW, and I'm reiterating it right now!'EMC (NYSE: EMC - News): 'I liked the news today with the spinoff. I'm going bullish right here.'Melco PBL Entertainment (NasdaqGM: MPEL): 'It's hurting. I know it's hurting. It's a Macau gambling play. I like it.'
Bearish calls:
Aventine Renewable Energy (NYSE: AVR - News): 'My friend, you are barking up the wrong ethanol pick! ... I want you out of AVR - even though it's all the way down - sell, sell, sell! and right now, for every two shares of AVR, you go buy one ADM.'SAP (NYSE: SAP - News): 'Holy cow, is that a stinker. Sell, sell, sell! That CEO talked a big game - a good game - but he's involved in a vicious price war with another stock that I don't like, ORCL.'Oracle (NasdaqGS: ORCL): 'I don't want anything to do with that segment. It is banned on Mad Money! Sell, sell, sell!'Thor Industries (NYSE: THO - News): ' Look, there is nothing better than an Airstream ... But! This is not the stock to own at this point in the cycle ... It's an expensive stock. Using a lot of gasoline. No. We're going to stay away ... 'don't buy.'Tibco Software (NasdaqGS: TIBX): 'Controversial. The problem with TIBX is that it's growing at 14%, and it sells at 24x earnings. Limited upside. Don't buy, don't buy.'
Published By SeekingAlpha

Labels: ADM, APKT, AVR, EMC, GLW, Jim Cramer, Lightning Round, MA, Mad Money, ORCL, SAP, TBIX, THO, VCLK, VMC, WHR

Bullish calls:
Nymex Holdings (NYSE: NMX - News): 'This stock does nothing but go up. ... Stick with it.'Grainger (NYSE: GWW - News)Wesco (NYSE: WCC - News): 'Did you see the explosion in that stock this week off the quarter? ... Still very, very cheap. I am recommending it heartily.'Chevron (NYSE: CVX - News): 'Holy cow! ... I look for the dividend to go up. I look for another buyback. I think you should back up the truck. That's my favorite integrated oil.'Devon Energy (NYSE: DVN - News)Amgen (NasdaqGS: AMGN)Genentech (NYSE: DNA - News)Celgene (NasdaqGS: CELG)Hewlett-Packard (NYSE: HPQ - News): ' ... is not just a PC assembler ... this is a technology company, run by Mark Hurd, who I think is the best. ... I need you to load up the boat, Hewlett-Pacakrd, that's best in show.'Valero Energy (NYSE: VLO - News): 'Not bad. ... it's a cheap stock ... 'Archer Daniels Midland (NYSE: ADM - News): 'If I want to refine these days, I'm gonna refine soybean or corn. I'm buying Archer Daniels Midland.'Amor Holdings (NYSE: AH - News)General Dynamics (NYSE: GD - News)L-3 Communications (NYSE: LLL - News)
Bearish calls:
1-800-Flowers.com (NasdaqGS: FLWS): 'It doesn't deserve to be owned. We're ixnaying.'Sirius Satellite Radio (NasdaqGS: SIRI): 'You know that stock ain't going anywhere. ... I want you to sell it nine ways to Super Bowl Sunday. 'Medarex (NasdaqGM: MEDX): 'This is precisely what I'm railing against at this juncture.'Illumina (NasdaqGM: ILMN): 'Not a good quarter. Expenses are going to rise. ... I need you out of that stock, and I want you to sell it right now.'Force Protection (NasdaqCM: FRPT): 'I think you need to go with the majors here.'
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Labels: ADM, AH, AMGN, CELG, CVX, DNA, DVN, FLWS, GD, GWW, HPQ, Jim Cramer, LLL, Mad Money, MEDX, NMX, SIRI, VLO, WCC

Bullish calls:
Nymex Holdings (NYSE: NMX - News): 'This stock does nothing but go up. ... Stick with it.'Grainger (NYSE: GWW - News)Wesco (NYSE: WCC - News): 'Did you see the explosion in that stock this week off the quarter? ... Still very, very cheap. I am recommending it heartily.'Chevron (NYSE: CVX - News): 'Holy cow! ... I look for the dividend to go up. I look for another buyback. I think you should back up the truck. That's my favorite integrated oil.'Devon Energy (NYSE: DVN - News)Amgen (NasdaqGS: AMGN)Genentech (NYSE: DNA - News)Celgene (NasdaqGS: CELG)Hewlett-Packard (NYSE: HPQ - News): ' ... is not just a PC assembler ... this is a technology company, run by Mark Hurd, who I think is the best. ... I need you to load up the boat, Hewlett-Pacakrd, that's best in show.'Valero Energy (NYSE: VLO - News): 'Not bad. ... it's a cheap stock ... 'Archer Daniels Midland (NYSE: ADM - News): 'If I want to refine these days, I'm gonna refine soybean or corn. I'm buying Archer Daniels Midland.'Amor Holdings (NYSE: AH - News)General Dynamics (NYSE: GD - News)L-3 Communications (NYSE: LLL - News)
Bearish calls:
1-800-Flowers.com (NasdaqGS: FLWS): 'It doesn't deserve to be owned. We're ixnaying.'Sirius Satellite Radio (NasdaqGS: SIRI): 'You know that stock ain't going anywhere. ... I want you to sell it nine ways to Super Bowl Sunday. 'Medarex (NasdaqGM: MEDX): 'This is precisely what I'm railing against at this juncture.'Illumina (NasdaqGM: ILMN): 'Not a good quarter. Expenses are going to rise. ... I need you out of that stock, and I want you to sell it right now.'Force Protection (NasdaqCM: FRPT): 'I think you need to go with the majors here.'

Labels: ADM, AH, CVX, DNA, DVN, FLWS, FRPT, GD, GWW, HPQ, ILMN, Jim Cramer, Lightning Round, LLL, Mad Money, MEDX, NMX, SIRI, VLO, WCC

Merger talk and earnings dominated the five-day trading week, while an analysts' fears lead to a two-day sell-off of diet company NutriSystem Inc.
Newsprint and coated mechanical paper producer Bowater Inc. said Monday it will combine with Canadian rival Abitibi-Consolidated Inc. to form AtibitiBowater Inc., and the news sent both company's stock Bowater stock soaring. If approved, the deal would close in the third quarter of 2007.
Greenville, S.C.-based Bowater shares rose $5.29, or 24 percent, to $27.44 on Monday, with trading at almost 13 times its normal volume on the New York Stock Exchange. Shares remained steady Tuesday as analysts responded, with trading about six times higher than normal. Volume tapered as the week continued, and Bowater stock ended the week at $27.60.
Abitibi's American shares added 69 cents, or 26 percent, to $3.33 on Monday, with volume likewise at almost 13 times typical trading on the NYSE. Volume remained high for the rest of the week, with the stock edging down slightly to end the week at $3.15, still up 19.3 percent.
Before the bell Tuesday, Citigroup analyst Gregory Badishkanian cut his price target for NutriSystem Inc. shares to $95 from $105, saying the company was heading for volatility after low Web site traffic and weak results from the GNC retail test.
Shares of Horsham, Pa.-based NutriSystem plunged Tuesday, losing $5.79, or 10 percent, to $52.05 on the Nasdaq. Trading was about seven times normal volume, with 12.6 million shares changing hands.
After the market closed, the company said it would surpass Wall Street's profit forecast for the fourth quarter, but fall 10 cents short of analysts' earnings per share prediction for the first quarter. Analysts responding by cutting their price targets, and in Wednesday trading, the stock lost another $8, or 15.4 percent, as 16.6 million shares were traded - about nine times the stock's average.
Trading was four times the stock's average on Thursday, and shares gave up 51 cents more. It closed the week at $43.20, a lost of 25 percent in four days.
Estee Lauder Cos. Inc. said Wednesday that its fiscal second-quarter profit more than doubled from the same period last year. Revenue increased 12 percent, and the New York cosmetic maker also cut costs. The results surpassed analysts' expectations.
The stock shot up to a 52-week high of $48.15 on the way to an NYSE close of $47.50, a gain of $6.17, or 14.9 percent. About 7.8 million shares, six times the average volume, were traded. Trading more than doubled the stock's average Thursday and Friday as Lauder slipped back. It ended the week at $46.13, down $1.37, or 2.9 percent, from Wednesday's close but still sporting an 11.6 percent gain over the three days.
Archer Daniels Midland Co. gained ground Thursday as it reported greater profit from its corn processing sector, driving the company's second-quarter profit up 20 percent. The Decatur, Ill., agricultural processing company's quarterly results beat Wall Street predictions.
Shares gained $3.47, or 10.8 percent, to $35.47 on the NYSE. Trading was more than three times the average volume at 20.7 million shares. The stock lost 20 cents the next day as trading was 50 percent higher than normal to close the week at $35.27.
Rackable Systems Inc. fell hard Friday, as the compan