Jim Cramer Blog

Agriculture's stuck for the moment, but it's still a good long-term play, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"Agrium (AGU) was on a monster good call," Cramer said, referring to the company's earnings report today. "I think Mosaic (MOS) is better than Agrium."
"I was concerned that Deere (DE) would come out and not say what the market wanted," Cramer said. He added that Potash (POT) has rolled over here.
Although he thinks the sector is great for the long term, "it's not all coming together right now." Of the agriculture stocks, he called Agrium "best in show right now, other than Mosaic."
For the group to pick back up, Cramer said, oil needs to reach $100 a barrel. "You gotta have that oil component come up," he stressed.
Still, some companies might be worth a look. "I think Deere ... makes a lot of sense here." He called the company a long-term buy. "Agrium is cheap. Mosaic is cheap." Cramer added that he likes fertilizer plays the best. "The group has stalled as a contingent except fertilizer. ... I think fertilizer is a worldwide oil and food play."
Cramer also pointed to natural gas, another group to watch. He likes Ultra Petroleum (UPL). He expressed exasperation that investors kept lamenting that nothing is hitting a new high.
"These stocks hit a new high every day. Coal hits a new high every day," he said. He concluded by stating he believes the global switch to natural gas is underway.
Published By TheStreet.com

Labels: AGU, CNBC's Stop Trading, DE, Jim Cramer, MOS, POT, Stop Trading, UPL

Cramer believes one of the fund's names, Nokia (NOK), is underrated. "Nokia just went down ... under a misperception that it was getting killed. Nokia is the winner."
Cramer added that search behemoth Google (GOOG) is "just resting" ahead of its earnings report.
Of Corning (GLW), Cramer said "Everyone is panicking." Cramer owns Corning for his charitable trust, Action Alerts PLUS.
Cramer couldn't get behind all of Magellan's names, however. "The one that is the true glass-half-full for him and half-empty for me is Staples (SPLS). I just don't like retail at all."
To conclude, Cramer reaffirmed his belief in energy and agriculture plays, saying that Canadian Natural Resources (CNQ) was "so right." He added that Mosaic (MOS), John Deere (DE), Agrium (AGU) and Monsanto (MON) are still solid stocks.
Published By TheStreet.com

Labels: AGU, CNBC's Stop Trading, CNQ, DE, GLW, GOOG, Jim Cramer, MON, MOS, NOK, SPLS

Stick with agriculture and recession stocks, Jim Cramer said on CNBC's "Stop Trading!" segment Friday.
"Mosaic (MOS) is terrific. ... I think Agrium (AGU) is a catch-up ... to Mosaic," Cramer said. "You're going to do better with that than ... betting against Procter (PG)."
More broadly, Cramer believes the market is frantic as shorts try to cover their bets on the bond insurers. "Today's a big short-squeeze day. 'Let's short squeeze Ambac (ABK) and MBIA (MBI).'"
In the financial sector, Cramer expects more take-unders like Bank of America's (BAC) purchase of Countrywide (CFC). He foresees Washington Mutual (WM) on the auction block, adding that CEO "Kerry Killinger is doing his best to do a bad job. ... Washington Mutual at $15 is like Countrywide at $8."
Cramer encouraged investors to play conservatively. "I would be partial to Coke (KO)," he said, adding that he was encouraged that commodity prices are down for the soft-drink company. Pepsi (PEP) is another good pick, he added.
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Labels: AGU, BAC, CFC, CNBC's Stop Trading, Jim Cramer, KO, MBI, MOS, PEP, PG, WM

Irrigation equipment maker Lindsay (LNN) is a name to watch, Jim Cramer said on CNBC's "Stop Trading!" segment Thursday.The company's rise today is an illustration of a broader bull run in agriculture. "We are now so knee-deep in ag that even the sprinkler systems are making a lot of money," he said. "There is clear sailing for this area right into the end of the year. Agrium (AGU) just did a big secondary; it's now above the secondary price. ... This is the area."Investors should also remember names like Potash (POT), "This is a longer cycle than you think because there are such short harvests. ... Grain demand is great."On the other hand, investors need to be more cautiously optimistic with more discretionary businesses, including Winnebago (WGO).
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Labels: AGU, CNBC's Stop Trading, Jim Cramer, LNN, POT, WGO

The Fuel is Greener: Deere (DE), Monsanto (MON), Bunge (BG), Mosaic (MOS), Agrium (AGU), Potash (POT)
When looking at the agriculture bull market, Cramer urged investors to think energy and not food. As oil prices rise, the pressure to develop alternative fuels from soybeans and corn will increase. This has been good news for farming stocks such as Deere, Bunge and Monsanto and especially fertilizer companies, Agrium, Potash and Mosaic. "All of these gains have been driven by demand," Cramer said and sees years of upside in this sector. However, since many agriculture stocks have already increased substantially, Cramer would wait for a decline before buying many of them.
Still Time for NYSE Euronext (NYX)
While NYX has been the worst performing stock Cramer has seen in 26 years in the business, he would stay with it. His thesis for owning the stock is unchanged and the only reason NYX went down is because "it was just going down…. Even though you hate owning it, nothing fundamental has changed for the company underneath it." In fact, NYX keeps beating estimates, its fundamentals are better than they were at the beginning of the year, and Cramer thinks this bear raid on NYX can't last forever.
Sitting on the Fed Fence: Kroger (KR), Costco (COST)
Cramer advised a wait and see strategy concerning the Fed meeting on Tuesday. A quarter point cut in rates could lead to recession fears and may bring some stocks down. On the other hand, a half a point cut could be a buying opportunity for banks tech and industrials. If it weren’t for the meeting, Cramer would suggest buying Costco and Kroger ahead of their earnings reports, but now he recommends waiting before making a move.
Meet the Mutual Fund Manager: Ron Muhlenkamp of Muhlenkamp (MUHLX) with stocks: Altria (MO), Devon Energy (DVN), Cemex (CX)
Cramer said investing in a mutual fund is really an investment in the fund’s manager, and invited Ron Muhlenkamp to discuss his strategy of finding good companies at low prices, particularly names others don’t recognize yet or like. He discussed MO, one of the fund’s holdings and said there is room to grow for DVN and CX.
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Labels: AGU, BG, COST, CX, DE, DVN, Jim Cramer, KR, Mad Money, MO, MON, MOS, MUHLX, NYSE Euronext Inc., NYX, POT

Bullish:

Boston Beer (SAM), beer brewers are in right now, so he wants to buy it at this price.
Research In Motion (RIMM), take half your profits off the table and wait for a dip in the stock to buy.
Monsanto (MON), Cramer thinks this is a buy
Deere (DE),
Potash (POT)
Bunge (BG),
Syngenta (SYT),
Mosaic (MOS),
Agrium (AGU),
XTO Energy (XTO),
Devon Energy (DVN),
Apache (APA),
Prudential (PRU),
Intel (INTC),
athenahealth (ATHN) - Cramer is bullish on this stock,
UnitedHealth (UNH).

Bearish:
Delta Petroleum (DPTR), rather have you in XTO, Devon Petroleum or Apache (APA)
Excel Maritime Carriers (EXM), too volatile to recommend at this price.
MetLife (MET)
SanDisk (SNDK). Buy Intel before you buy SanDisk.

Labels: AGU, BG, DE, Jim Cramer, Lightning Round, Mad Money Lightning Round, MON, MOS, POT, RIMM, SAM, SYT

Bullish Calls:

Under Armour (NYSE: UA - News): 'I know the stock is up a lot ... but you know what? I am sticking by it.'Crocs (NasdaqGS: CROX - News)Texas Instruments (NYSE: TXN - News): 'I'd rather see you in Texas.'Analog Devices (NYSE: ADI - News)Intel (NasdaqGS: INTC - News): ' ... and more important, I would rather see you in Intel.'Consolidated Edison (NYSE: ED - News)Deere (NYSE: DE - News)Agrium (NYSE: AGU - News)Monsanto (NYSE: MON - News)Seaspan (NYSE: SSW - News)Eagle Bulk Shipping (NasdaqGS: EGLE - News)General Maritime (NYSE: GMR - News)Integrys Energy (NYSE: TEG - News): 'High-quality electricity and natural gas distributor with a 5% yield ... That one I particularly like.'NYSE Euronext (NYSE: NYX - News): 'The estimates are too low. The volume's been great. ... That's why I like the New York Stock Exhange.'Air Products & Chemical (NYSE: APD - News)
Bearish calls:
Atmel (NasdaqGS: ATML - News)Hansen Natural (NasdaqGS: HANS - News): 'I have to give it a Don'tBuy, because I can't figure out why it was up today.'Terra Nitrogen (NYSE: TNH - News): 'I'd rather see you in Deere or Agrium or don't forget Monsanto. Those are better.'American Electric (NYSE: AEP - News): 'I think it's a well-run company, but I've got ConEd.'Akamai (NasdaqGS: AKAM - News)GrafTech (NYSE: GTI - News): ' ... At $14, it's too high for me. I'm going to tell you not to buy it.'

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Labels: ADI, AGU, APD, CROX, DE, ED, EGLE, GMR, GTI, INTC, Jim Cramer, Lightning Round, Mad Money, MON, NYX, SSW, TEG, TXN, UA

Bullish Calls:

FactSet Research Systems (NYSE: FDS - News): 'I think this is a natural to be snapped up by someone.'Dynegy (NYSE: DYN - News): 'A lot of people feel that it's speculative... All I can say is that they don't do as well when natural gas is weak... But that company is worth - on a break up value - a lot more ...buy, buy, buy!'Brocade Communications (NasdaqGS: BRCD - News): 'BRCD is being unfairly beaten up... It's just not that bad... But I have to tell you - if you're going to be in that sector - BRCD goes up against Cisco and CSCO is my favorite stock in that group.'EMC (NYSE: EMC - News): 'I've been buying EMC Corp. for my charitable trust, because of VM Ware... It's going to be the next big IPO since Google.'Cisco Systems (NasdaqGS: CSCO - News): 'CSCO is my favorite stock in that group.'Indevus Pharmaceuticals (NasdaqGM: IDEV - News): ' ... we've been behind IDEV... We think that that's a great spec play, and it's only a buck off its high, but we continue to like it very much.'Costco (NasdaqGS: COST - News):'I think that COST is a buy. It's my favorite retailer... literally, my favorite retailer of the group that everybody knows I cannot stand! COST reigns supreme! 'Acergy (NasdaqGS: ACGY - News): 'I think that, when you get a stock like ACGY, you've just got to ride it.'CF Industries (NYSE: CF - News): 'Please, let's ring a little register on the ag bull market. Sell, sell, sell!... No, I'm not backing away from the ag bull market! I'm simply saying that, when we play greedy, we get our heads cut off.'Mosaic (NYSE: MOS - News)Agrium (NYSE: AGU - News)Potash (NYSE: POT - News)
Bearish calls:
First Solar (NasdaqGM: FSLR - News): ' ... sell, sell, sell! - and the answer is, I've not done my job well enough. We must not be pigs. We will get killed.'General Cable (NYSE: BGC - News): 'I'm thinking I'm doubling on some of these... I've got doubles. Why am I not being more aggressive in telling people to ring the register .'Buffalo Wild Wings (NasdaqGS: BWLD - News): 'We must not be pigs.'Alcatel-Lucent (NYSE: ALU - News): 'Patricia Russo is on the Wall of Shame! And, once again, I tell you that, as long as she's running that company, despite a fabulous bull market in communications equipment, that remains a sell, sell, sell! '

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Labels: ACGY, AGU, ALU, BGC, BRCD, BWLD, CF, COST, CSCO, DYN, EMC, FDS, FSLR, IDEV, Jim Cramer, Lightning Round, Mad Money, MOS, POT

Potash (NYSE: POT - News): 'POT has been on the 52-week high list for what seems like months. I still like it ... Stay with POT.'Mosaic (NYSE: MOS - News): ' ... fertilizer ... Mosaic, Agrium and Monsanto ... these are all ag plays. And the ag complex, along with the aerospace complex, are in major bull market mode.'Monsanto (NYSE: MON - News)Agrium (NYSE: AGU - News)Cisco (NasdaqGS: CSCO): 'I think CSCO - with a lot of stock to buy back - with some great product offerings - should be bought at $26 ... we're down a buck and a half, and I think it's worth it to pull the trigger right here.'Virgin Media (NasdaqGS: VMED): ' ... hasn't even started the triple play yet. I was early in that stock. Early means 'wrong' in the parlance of Wall Street... But we're down a dollar in this stock and I think we should stay with VMED.'Clearwire (NasdaqGS: CLWR): 'It should never have gone down to $17. That was just crazy. I want to stick by CLWR. 'ViaSat (NasdaqGS: VSAT): 'I was surprised to see that stock go down too ... grows at 17%, with a 20x multiple. I think you've got to stick with it! I would even pull the trigger now that I've taken a look at it.'ING Group (NYSE: ING - News): 'I say ING is maybe one of the cheapest banks in the world. I like their online strategy. I am with you, I'd buy that stock!'Cleveland-Cliffs (NYSE: CLF - News): 'I think that CLF - which is the largest iron ore producer in this country - is going to be hard to maintain its independence. I want to buy some below $70...but I was, like you, chagrinned about that delayed earnings report.'3M (NYSE: MMM - News): 'This is a weak-dollar stock. We've got a weak dollar environment, a big Asian proprietary business. MMM has been a monster, a monster! MMM is going higher. MMM is still cheap. It can go up another two multiple points on that growth rate. I say it goes to $100. It's the strongest stock in the Dow.'Dynegy (NYSE: DYN - News):El Paso (NYSE: EP - News): 'We have been behind this company, ever since they decided to clean up their balance sheet.'Dynegy (NYSE: DYN - News)Halliburton (NYSE: HAL - News)
Bearish calls:
Harris Interactive (NasdaqGS: HPOL): 'I don't see a lot going on there ... Don't buy, don't buy.'Lamar Advertising (NasdaqGS: LAMR): ' ... even though the quarter was terrific, I worry about regulation coming in ... They make billboards that change, and they're very exciting, but maybe so exciting that they cause accidents! ... Sell, sell, sell!'HMS Holdings (NasdaqGS: HMSY): 'This stock is very expensive. It sells at more than twice its growth, so I cannot recommend it on this show. Don't buy, don't buy. But I do like that segment very much. But valuation keeps me from pulling the trigger.'Giant Industries (NYSE: GI - News): 'I myself am a seller of the refiners. I think that margins have peaked. I would sell that stock. Ring the register. You've got a gigantic gain. Please don't give that gain back. Sell, sell, sell!'
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Labels: AGU, CLF, CLWR, DYN, EP, HAL, ING, Jim Cramer, Lightning Round, MMM, MON, MOS, POT, VMED, VSAT

Bullish calls:
Sears (NasdaqGS: SHLD)Monsanto (NYSE: MON - News): 'The bears and the analysts refuse to get behind this stock ... They think it's overvalued as a chemical stock. It's part of the ag play ... hybrid corn seeds, in a world where we are short corn seeds. MON is not done going up. I would be an aggressive buyer right here at $59. ('mon-back sound).'Agrium (NYSE: AGU - News)Deere (NYSE: DE - News)Spartan Motors (NasdaqGS: SPAR):' I want you in SPAR. That's the one to pull the trigger on right now.'Virgin Media (NasdaqGS: VMED): 'I want VMED to be bought here! VMED is the play for cable in Europe, in London... It has been stalled here ... I think you want to pull the trigger on VMED. I like it as much as ever. All aboard.'Time Warner (NYSE: TWX - News): 'Other cable companies - notably CMCSA and TWX - have started to move back up.'Comcast (NasdaqGS: CMCSA) Research In Motion (NasdaqGS: RIMM): 'RIMM hit a 52-week high today ... Almost no other tech stock I follow has done that. I think it's a sign of strength ... I bet RIMM is having a great quarter. They have survived every single war imaginable. I'm not backing away. I still like the stock. I would still be a buyer. Buy, buy, buy!'Toyota Motor (NYSE: TM - News): 'The stock is stuck... It's been hurt by weak sales of Tundra - their F-150 competitor... It's also been hurt by a strong yen ... That's a mistake. $126? Come on. I'm doing a triple buy.'Hexcel (NYSE: HXL - News): 'HXL is engineered product. That stock is down more than 20% from its high? That's a colossal mistake. Buy, buy, buy!'Allegheny Technologies (NYSE: ATI - News): 'Did you know that ATI - my stock of the year last year - another new high today! That one's a winner.'Foster Wheeler (NasdaqGS: FWLT): 'FWLT is the way to play construction. They've got the best order book.'Lockheed Martin (NYSE: LMT - News)L-3 Communications (NYSE: LLL - News)General Dynamics (NYSE: GD - News)Theravance (NasdaqGM: THRX): 'THRX was the stock that stumped me last week, and one of the reasons why it stumped me is that it's moving up very rapidly ... The stock had a big run but, you know what? I think it's really got that great bloodline now... So I like THRX.'
Bearish calls:
Hudson City Bancorp (NasdaqGS: HCBK): ' ... with the yield curve... with the 10-year at 4.75%, and the short rates higher, that's a nightmare for any regional bank ... Don't buy, don't buy.'Force Protection (NasdaqCM: FRPT): 'I believe that SPAR, which then gives the products to FRPT, is the better play.'Veraz Networks (NasdaqGM: VRAZ): 'This one I got behind. It is not working. That is worrisome to me. When they don't work like this, I've got to pull my situation, and do more work.'XM Satellite Radio (NasdaqGS: XMSR): 'XMSR is very problematic ... The FCC and congress have made this dea (merger with Sirius Satellite Radio) too difficult ... I want to sell XMSR.'Crystallex (AMEX: KRY - News): 'KRY has been creeping up ... I would recommend sell at $4 and change. I'll buy it back at $2 and change. I do not trust this Chavez. You can't either.'CDW (NasdaqGS: CDWC)Washington Group (NYSE: WNG - News): 'I like the construction group, but you know my favorite has not been WMG, but it's been FWLT.'SAIC (NYSE: SAI - News): 'I don't want to be linked to government spending right now, because I think it's not trustworthy... '
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Labels: AGU, ATI, BBY. RIMM, CMCSA, DE, FWLT, GD, HXL, Jim Cramer, Lightning Round, LLL, LMT, Mad Money, MON, SHLD, SPAR, THRX, TM, TWX, VMED

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

On the Mend: Viacom (NYSE: VIA - News), Time Warner (NYSE: TWX - News)
Cramer says that a broken stock can make a comeback only when the company is prepared to do something drastic to prove that profits are its chief concern. He is bullish on Viacom since it announced that it is cutting 250 jobs at MTV. Cramer compares this scenario to TWX's rise after selling of 18 of its magazines. The mistake Viacom has made, according to Cramer, is that it was being run like a growth company even after it stopped growing, and "became a victim of its own success" by its almost exclusive focus on a younger demographic. Since the company is more concerned about profits than growth, Cramer expects the company will deliver and adds that it is trading at a "big discount."

Lamson & Sessions (NYSE: LMS - News), American Standard (NYSE: ASD - News), Home Depot (NYSE: HD - News)
Cramer discussed the "damned up flood of money in private-equity firms" and commented that if he were working at a private equity firm, he would want to buy LMS which is a gift at $28.25. Since the raw cost of PVC piping, one of LMS' products, is "dropping like a rock," the company should benefit, and its shortfall has already been priced into the stock. LMS is part of Cramer's "private equity dream" which includes ASD's plumbing business and HD's building and supply company. If a private-equity company purchases these three, it can form a "plumbing and construction powerhouse" that could go public in a few years.

Hit or Miss: Whirlpool (NYSE: WHR - News), General Electric (NYSE: GE - News)
Cramer cited a Financial Times article reporting the most earnings misses this quarter since the third quarter of 2004, but he said that an earnings miss is not a reason to sell a stock, but can even be an incentive to buy or to hold, since most of the time, a poor report is already baked into the stock, as was the case with WHR. Cramer likes WHR because it and GE have a "virtual monopoly" on washers and dryers and that it has integrated its acquisition Maytag well. Cramer warned viewers not to buy after hours or before doing research on the stock.
CEO Interview: Michael Wilson, Agrium (NYSE: AGU - News)
Cramer commented that while many fertilizer companies see "capacity come on and new plants being built," he doesn't notice the same thing happening with AGU. Michael Wilson responded that progress has been slow since few anticipated the tight market, and the company hasn't been building new plants. However, fertilizer demand "is a major global phenomenon," he added, and the company already has 500 retail stores. Cramer is bullish on Agrium because he believes in the agricultural complex.
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Labels: AGU, ASD, GE, HD, Jim Cramer, LMS, Mad Money, TWX, VIA, WHR

Agrium (NYSE:AGU - News) was downgraded to neutral from buy at UBS.
Alphatec Holdings Inc. (NASDAQ:ATEC - News) said President and Chief Executive Ronald Hiscock has left the company, along with Chief Administrative Officer Vicky Romanoski. The Carlsbad, Calif.-based spinal device manufacturer provided no reason for the departure of the two executives. John Foster, Alphatec's executive chairman, is assuming the position of president and CEO.
Altair Nanotechnologies (NASDAQ:ALTI - News) shares dropped after the company reached a deal with institutional investors to raise $23.15 million in net proceeds, after fees and expenses, in a "registered direct" offering through the sale of its common shares and warrants. The Canadian developer of nanomaterial and titanium dioxide pigment technologies said it has also entered into subscription agreements, and has agreed to sell 9.26 million units, with each unit consisting of one common share and one warrant to purchase one-fourth of a share. The transaction's closing is scheduled for Dec. 18.
Argon ST (NASDAQ:STST - News) shares fell after the Fairfax, Va.-based developer of systems and sensors for signals intelligence reported fourth-quarter net earnings of $4.1 million, or 18 cents a share, down from $6.06 million, or 29 cents a share, in the year-ago period. Revenue fell to $66.1 million from $83.7 million. Analysts polled by Thomson First Call had forecast a per-share profit of 30 cents on revenue of $90.8 million. The company forecast fiscal 2007 revenue of $305 million to $325 million, and income from operations of $36 million to $39 million.
Beacon Roofing Supply (NASDAQ:BECN - News) reported fourth-quarter net earnings of $14.6 million, or 32 cents a share, up from $10.4 million, or 25 cents a share, on the year-ago period. Revenue jumped to $431.3 million from $231.2 million. Analysts polled by Thomson First Call had forecast a per-share profit of 33 cents on revenue of $405.8 million. "Although we have seen a slowdown in our business since the fourth quarter, when adjusting for five fewer business days than in the first quarter of 2006, our sales continued to grow slightly in the first quarter of fiscal year 2007 through November compared to the first quarter of 2006, considering that there has been no price inflation," said Robert Buck, president and chief executive, in a statement. "As a result, we are optimistic about 2007 and excited about our future."
Cal Dive (NYSE:DVR - News) shares fell in the company's stock market debut.
Chordiant (NASDAQ:CHRD - News) said it expects a fourth-quarter net loss of $8.4 million, and a loss of $7.1 million excluding stock-based compensation. The software company said it sees quarterly revenue of $21.7 million, up 2% from the same period in the prior year, while Wall Street is looking for $27 million.
Shares in EMI Group PLC plunged as the company confirmed that takeover talks with an unnamed bidder had ceased.
Shares of Encysive Pharmaceuticals (NASDAQ:ENCY - News) retreated as it emerged that the Food and Drug Administration still isn't satisfied with the company's application to market a prospective pulmonary drug.
Forest Laboratories (NYSE:FRX - News) agreed to buy privately-held Cerexa for $480 million in cash. Cerexa's lead compound, a broad-spectrum injectable antibiotic called ceftaroline acetate, is slated to begin Phase III clinical testing during the first quarter 2007. Forest said the drug could be on the market as early as 2010, if approved. As a result of the transaction, Forest plans to take a one-time after-tax charge of about 96 cents a share. Excluding the one-time after-tax charge, Forest said it still sees fiscal 2007 earnings per share coming in between $2.60 and $2.65. The deal is expected to close in Forest's fiscal fourth quarter.
Geron Corp. (NASDAQ:GERN - News) said it's agreed to sell common stock to institutional investors in a deal expected to yield gross proceeds of $40 million. The Menlo Park, Calif., biopharmaceutical company is selling the stock at $8 per share, compared to Wednesday's closing price at $9.34. The deal includes an over-allotment option for the sale of an additional $15 million worth of common stock at the same price per share, as well as longer term warrants, exercisable after 180 days, for the purchase of three million shares at an unspecified premium. Geron plans to use the proceeds to fund clinical trials and for regulatory activities.
Introgen Therapeutics Inc. (NASDAQ:INGN - News) said it has offered 4.99 million shares of its common stock. The Austin, Texas-based biopharmaceutical company said it expects to receive gross proceeds of about $24 million. Introgen said it expects to use net proceeds from the offering primarily for working capital and other general corporate purposes, including the development of its clinical programs which include Advexin, INGN 241 and its other programs.
Lehman Brothers (NYSE:LEH - News) said record investment-banking revenue helped propel fourth-quarter profit higher by 22%, surpassing Wall Street estimates, but earnings growth lagged rivals the record results from Goldman Sachs and Bear Stearns earlier this week.
Magellan Health Services (NASDAQ:MGLN - News) announced its financial guidance for fiscal 2007. The group said it sees earnings in the range of $1.67 to $2.04 a share on sales of $2.05 billion to $2.15 billion. Chief Executive Steven Shulman said the outlook reflects the group's view of the coming year as one of transition.
Netflix (NASDAQ:NFLX - News) was initiated with a sell rating at Banc of America Securities with a price target of $24.
Obagi Medical Products (NASDAQ:OMPI - News) shares fell in the company's initial public offering.
Pier 1 Imports Inc. (NYSE:PIR - News) posted a wider third-quarter loss, hurt by increased markdowns and higher marketing costs, but said sales of holiday merchandise have been encouraging.
Smith Micro Software (NASDAQ:SMSI - News) priced an offering of 4.5 million shares at $14.75 per share. The company has granted the underwriters an option to purchase up to an extra 675,000 shares to cover any over-allotments.
United Rentals (NYSE:URI - News) was downgraded to neutral from buy at UBS.
United Technologies (NYSE:UTX - News) backed its 2006 earnings outlook of $3.68 to $3.69 a share. Analysts polled by Thomson First call expect per-share earnings of $3.69. United Technologies also said its board approved a share repurchase program for up to 60 million shares worth about $4 billion at current prices.
Winnebago Industries Inc. (NYSE:WGO - News) said first-quarter net income for the three months ended Nov. 25 fell to $7.9 million, or 25 cents a share, from $14.6 million, or 44 cents a share in the year-ago period. Revenue dropped 13% to $201.8 million. Analysts surveyed by Thomson First Call forecast earnings of 31 cents a share and revenue of $210 million, on average. "While we remained solidly profitable, the motor home market continues to be challenging," said Winnebago Chairman and CEO Bruce Hertzke. "The first quarter of fiscal 2007 was negatively impacted by lower motor home deliveries, particularly of higher priced models in all of our product classes." The company said market conditions remain challenging. The Forest City, Iowa company also cited reluctance by dealers to increase inventory during the winter.

Labels: AGU, ALTI, ATEC, BECN, CHRD, DVR, ENCY, FRX, GERN, INGN, LEH, MGLN, NFLX, OMPI, PIR, SMSI, STST, UTX, WGO

Two Perfect Plays: Agrium (NYSE: AGU - News), Mosaic (NYSE: MOS - News) and Citigroup (NYSE: C - News)
Cramer identifies fertilizer companies AGU and MOS as two "perfect plays" for the presidential primaries, since the candidates will start going for the caucuses in corn-belt state Iowa, and they will be talking about ethanol. Not only has demand for the alternative fuel increased, but corn yields have declined 1.5%, and farmers will be buying more fertilizer to increase production. Cramer suggests picking up the stocks and selling them into the caucuses. On a side note, Cramer remarked that he is "outraged" that Citigroup has not explained the sudden 2.25% jump in its stock to $51.85, and apparently, some people knew that the stock was headed higher ahead of time. "I'm ashamed by the system sometimes," Cramer said. "I want answers."
Manchurian Candidate: Global Sources (NASDAQ: GSOL - News)
Although Cramer is usually bearish on Chinese stocks because of their association with Communism and that "China is a country that can legally seize any assets it wants," Cramer is making an exception in the case of GSOL because, after doing some homework, he thinks that the stock is headed from $14 on a "not-so-long march" to $20, but since the stock is thinly traded, he suggests using limit orders. Global Sources, which sells ads on the internet and in magazines, is the second largest business-to-business Chinese company, and is set to purchase Number 3 on the list. Cramer points out that it is trading at under 50% of its growth rate, and has shown that it is a "survivor" in a web industry that sees many failures.

Game Plan for Next Week: Best Buy (NYSE: BBY - News), Goldman Sachs (NYSE: GS - News), Bear Stearns (NYSE: BSC - News), Lehman Brothers (NYSE: LEH - News) and Hewlitt-Packard (NYSE: HPQ - News)
Cramer approves of analyst Jonathan Cramer's buy rating on Best Buy, which is down on worries about consumer spending and should be bought before its earnings report next week because it will rebound. "The long-term picture for the stock is good," he said. While Cramer thinks that GS will have a great quarter, he is "a tad concerned" because it is up. If the stock goes under $200, Cramer would pick some up along with Bear Stearns and Lehman Brothers. He would also buy some HPQ ahead of the analyst meeting on December 12.

Mad Mail: Trump Entertainment (NASDAQ: TRMP - News), Level 3 Communications (NASDAQ: LVLT - News), Broadwing (NASDAQ: BWNG - News)
Cramer bets that TRMP will beat out four other casino companies in the Philadelphia decision later this month, because rather than building a casino on the waterfront, Trump is planning to put his operation in a "not-so-great neighborhood" where it can generate jobs. If Trump loses the bid, Cramer says that it will drop to $19 and that people should buy it. On another note, Cramer said not to wait in buying LVLT until after its purchase of BWNG because the acquisition has "totally been factored into the stock."
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He believes that Agrium (AGU) and Mosaic (MOS) are two "perfect plays" off the primaries.
Entering "the presidential pander season," Cramer said it's time to look at Iowa, as this is where are all the presidential candidates will start going for the caucuses. He said they also will go there because corn production has become important.
"The driver behind corn is the ethanol demand," Cramer said. Not only has there been a huge addition to the demand in ethanol, but also corn yields are down 1.5%. "Corn yields must come up, and money will be spent to bring them up," he said.
Farmers will most likely buy more fertilizer to produce more corn and then will sell the corn to companies that will convert it to ethanol, Cramer said. Mosaic and Agrium are two fertilizer companies he believes people should consider buying.
He advised buying and holding the stocks and selling them into the presidential caucuses in 2008.
On a separate note, Cramer said he is "outraged" with Citigroup (C), as it has not given any indication as to why the stock surged today.
It seems some people knew that it was going to go higher, while others where left in the dark, he said.
"I'm ashamed by the system sometimes," Cramer said. "I want answers."
Citigroup closed up $1.14, or 2.25%, at $51.85 Friday.
A Vote for China
Cramer said that although he ordinarily never likes to recommend Chinese companies or "Communist stocks" on his show, he's giving in and advising people to buy Global Sources (GSOL).
"China is a country that can legally seize any assets it wants," he said. But after doing his homework, Cramer said he would be a buyer of Global Sources.
The stock is at $14, and he believes that it is about to take "a not-so-long march" to $20. However, as the stock is "thinly traded," Cramer urged his viewers to use limit orders.
Global Sources, which makes its money by selling ads on its Web sites and in its magazines, is the second-largest business-to-business company in China and is in the process of acquiring the No. 3 company.
Moreover, Cramer said he wasn't able to hold out on recommending a China-based stock any longer because of Global Sources' numbers. The company should earn 50 cents a share this year and is on track to earn 70 cents a share next year.
Plus, it trades at less than half its growth rate and is thus undervalued, he said.
Further, Cramer believes that it is a "reliable" company and is a "survivor," as there were hundreds of Internet-based business-to-business companies that ultimately failed.
Cramerica
Analyst Jonathan Cramer, who recently put out a report encouraging people to buy Best Buy (BBY), knows what he's talking about, according to Cramer.
As market players tend to get "jittery about consumer spending" ahead of the quarter, the stock has gone down, he said. But Cramer believes that the best way to buy Best Buy is on weakness because it tends to bounce back.
"The long-term picture for the stock is good," he said. "Buy into weakness before it reports next week."
Moving on with his game plan, Cramer told viewers all the brokers report next week. Out of them he said Goldman Sachs (GS), which he owns for his charitable trust, Action Alerts PLUS, is going to have a "great" quarter. However, Cramer said he is "a tad concerned" with this stock as it has gone up.
If Goldman gets hit, and particularly goes below $200, he advised people to buy it. If Goldman gets hit, Cramer also suggested buying smaller portions of Lehman Brothers (LEH) and Bear Stearns (BSC) ahead of their quarters.
Goldman closed at $205.10 Friday.
Further, Cramer advised picking up some Hewlett-Packard (HPQ), which he owns for his charitable trust, Action Alerts PLUS, before the company has its analyst meeting on Dec. 12.
Mad Mail
In his "Mad Mail" segment, Cramer told a viewer that although there are five casino companies up for th