Jim Cramer Blog

Stocks surged today, recouping most of their losses following Friday's big sell-off. Financials rose sharply following severe losses in the past couple weeks due to worrisome credit markets. At the close, the Dow Jones finished the day up 287 points, while the tech-laden Nasdaq rose 36 points and the S&P 500 climbed 35 points. Also aiding the bulls today was a plunge in the price of crude after energy investors were cautious on what a slowing U.S. economy would do to prices. Crude fell -$3.42 a barrel to end at $72.06.

After just completing the purchase of Chrysler, Cerberus nabbed Bob Nardelli to serve as chief executive officer, replacing Tom LaSorda who will become vice chairman. Nardelli was previously the CEO of home improvement retailer Home Depot (NYSE: HD - News). In other management changes, Co-Chief Operating Officer Warren Spector was ousted from Bear Sterns (NYSE: BSC - News) after meltdowns at two of its hedge funds. After falling as much as -7% in early trading, the Wall Street bank's shares rose 5.0%.
American Home Mortgage (NYSE: AHM - News) shares plunged -36.7%% after the company announced that it has filed for Chapter 11 bankruptcy protection. Its operations were shutdown on August 2nd, and its staff was reduced to 1,000 individuals. The company is now the second-biggest residential lender in the U.S. to close this year.
In M&A news, burger giant McDonalds (NYSE: MCD - News) said it would sell its Boston Market properties to private equity group Sun Capital Partners in an effort to focus on its main businesses. Financial terms of the deal were not publicly disclosed. The world's largest restaurant company plans on closing the deal in its current quarter. Shares rose 1.9% on an upbeat day in the markets.
In retailing news, the world's largest retailer, Wal-Mart Stores (NYSE: WMT - News), said it entered into a joint venture with the Bharti Group in which it will set up retail stores and a supply chain in India, the second-largest country by population. Shares of Wal-Mart rose 3.3%.
In earnings news, Berkshire Hathaway (NYSE: BRK-B - News, BRK-A - News) reported a 33% increase in its Q2 net income late Friday, fueled by solid growth from its insurance and utility businesses. Revenue rose 13% to $27.35 billion.

By the BullMarket.com Staff

Labels: AHM, BRK-A, BRK-B, BSC, HD, MCD, WMT

American Home Mortgage (NYSE: AHM - News), Countrywide Financial (NYSE: CFC - News), Thornburg Mortgage (NYSE: TMA - News), Redwoods Trust (NYSE: RWT - News), Rait Financial Trust (NYSE: RAS - News) and NovaStar Financial (NYSE: NFI - News)
After the demise of AHM, Cramer would not recommend subprime mortgage lending companies, but he predicts CFC will survive as well as TMA, which "did a lot of loaning only to rich people." He sees hope for RWT because it is under 10%, and he warned any stock in the sector with a yield over 10% is not going to make it. RAS and NFI, which did a 4 -for-1 reverse split, are entirely at the mercy of the banks, and are therefore "totally uninvestible" because the Wells Fargos "have no interest in keeping you alive," Cramer commented. "They'd rather just take the loss." While admitting this inspires "tremendous panic" Cramer feels like sticking his neck out, because "It's first man out lives and I want our people to be first man out."

Published By SeekingAlpha

Labels: AHM, CFC, Jim Cramer, NFI, RAS, RWT, TMA, Wall Street Confidential

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
American Home Mortgage June 25 Calls (NYSE:AHM). AHM's PowerRating is 2.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Dow Chemical May 45 Puts (NYSE:DOW). DOW's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Dendreon May 17.5 Calls (NasdaqGM:DNDN). DNDN's PowerRating is 9.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Google Inc. June 430 Puts (NasdaqGS:GOOG). GOOG's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
None today
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
WellCare Health Plans (NYSE:WCG). WCG's PowerRating is 7.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Monster Worldwide (NasdaqGS:MNST). MNST's PowerRating is 5.
Lexmark International (NYSE:LXK) . LXK's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AHM, DNDN, DOW, GOOG, LXK, MNST, stock options, WCG

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
American Real Estate Partners (NYSE:ACP). ACP's PowerRating is 8.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Affiliated Computer Services (NYSE:ACS). ACS's PowerRating is 7.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Marriott (NYSE:MAR). MAR's PowerRating is 7.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Anheuser-Busch (NYSE:BUD) & Polo Ralph Lauren (NYSE:RL). BUD's PowerRating is 6, and RL's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
American Home Mortgage Investment (NYSE:AHM). AHM's PowerRating is 2.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Penwest Pharmaceuticals (NasdaqGM:PPCO). PPCO's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: ACP, ACS, AHM, BUD, Hot Stocks, MAR, PPCO, RL

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
American Real Estate Partners (NYSE:ACP - News). ACP's PowerRating is 8.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Affiliated Computer Services (NYSE:ACS - News). ACS's PowerRating is 7.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Marriott (NYSE:MAR - News). MAR's PowerRating is 7.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Anheuser-Busch (NYSE:BUD - News) & Polo Ralph Lauren (NYSE:RL - News). BUD's PowerRating is 6, and RL's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
American Home Mortgage Investment (NYSE:AHM - News). AHM's PowerRating is 2.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Penwest Pharmaceuticals (NasdaqGM:PPCO - News). PPCO's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: ACP, ACS, AHM, BUD, Hot Stocks, MAR, PPCO, RL

Symbol
Name
Last Trade
Change
Volume
Related Info
ADLR
ADOLOR CORP
3.68 1:29PM ET
5.04 (57.80%)
18,117,425

GSX
GASCO ENERGY INC
1.93 1:24PM ET
0.46 (19.25%)
3,157,376

HPOL
HARRIS INTERACTIVE
5.12 1:29PM ET
0.99 (16.20%)
1,241,159

CORT
CORCEPT THERAPEUTICS
1.65 1:29PM ET
0.31 (15.82%)
337,125

HCTL
HEALTHCARE TECH LTD
1.47 1:17PM ET
0.18 (10.90%)
118,643

AGEN
ANTIGENICS INC
3.75 1:29PM ET
0.56 (12.99%)
2,181,292

CPBRW
CLEARPOINT BUS WTS
1.10 1:29PM ET
0.15 (12.00%)
4,100

VHI
VALHI INC
17.17 1:25PM ET
2.39 (12.22%)
188,500

KT
KATY IND INC
1.86 1:23PM ET
0.11 (5.58%)
8,100

QFAB
QUAKER FABRIC CP
1.07 1:08PM ET
0.11 (9.32%)
5,917

CIPH
CIPHERGEN BIOSYSTE
1.20 1:26PM ET
0.14 (10.45%)
205,045

IAX
INTL ABSORBENTS INC
3.5318 1:14PM ET
0.2682 (7.06%)
29,200

IMH
IMPAC MTG HLDGS INC
4.65 1:25PM ET
0.45 (8.82%)
1,097,800

AHM
AMER HOME MTG INVT
19.98 1:25PM ET
1.94 (8.85%)
3,149,100

CEGE
CELL GENESYS INC
6.23 1:30PM ET
0.63 (9.18%)
22,348,231

RGR
STURM RUGER AND CO
12.51 1:24PM ET
1.19 (8.69%)
767,000

KAD
ARCADIA RESOURCES
1.35 1:24PM ET
0.13 (8.78%)
142,400

CMRO
COMARCO INC
6.76 12:30PM ET
0.64 (8.65%)
34,910

STX
SEAGATE TECHNOLOGY
21.45 1:25PM ET
2.01 (8.57%)
24,450,300

LBIX
LEADING BRANDS
2.424 1:29PM ET
0.226 (8.53%)
80,399

BPG
BPI ENERGY HLDGS
1.17 1:24PM ET
0.14 (10.69%)
844,600

Labels: ADLR, AGEN, AHM, BPG, CEGE, CIPH, CMRO, CORT, CPBRW, GSX, HPOL, IAX, IMH, KAD, KT, LBIX, QFAB, RGR, STX, VHI

Stocks traded timidly on the cusp of first-quarter earnings season, which kicks off after tomorrow's closing bell when aluminum giant Alcoa (NYSE: AA - News) becomes the first major company to report results for the quarter ended March 31st. The major market averages were mixed, with tech shares trading slightly lower, while the other major averages eked out fractional gains. There seemed to be little news to spark activity today, though crude oil prices did drop sharply. The 10-year Treasury note also posted a slight gain in today's trading.
Railroad stocks moved higher after Berkshire Hathaway (NYSE: BKR-B - News) disclosed it had taken a nearly 11% stake in Burlington Northern Santa Fe (NYSE: BNI - News), along with smaller stakes in two other undisclosed railroad companies. Speculation on the remaining candidates focused on Union Pacific (NYSE: UNP - News), Norfolk Southern (NYSE: NSC - News), and CSX (NYSE: CSX - News), all of which closed higher. Burlington Northern shares finished up 6.5%.
In profit news, chipmaker Advanced Micro Devices (NYSE: AMD - News) warned that its Q1 profit will likely come in below forecasts, but its shares still gained 3.8% on short covering. AMD said revenue will be $1.23 billion, or -$475 million shy of the high end of its initial estimates. Unit sales and average selling prices continue to drop due to its price war with rival Intel (Nasdaq: INTC - News), which closed up 2.7%. AMD said it would impose a partial hiring freeze and curtail other spending in an effort to cut costs. The news drew mixed analyst reaction. JMP Securities, which overall sees an upside to AMD, maintained its "market outperform" rating, but cut its target from $17 to $16. Friedman Billings Ramsey, meanwhile, reiterated its "under perform" rating and cut its target from $10 to $9.
Mortgage investment trust American Home Mortgage Investment (NYSE: AHM - News) plunged -15.2% after the company sharply cut its Q1 earnings forecast. The firm focuses on the prime and near-prime sectors, not subprime, but it warned investors that problems in the secondary mortgage and mortgage-backed securities markets will result in reduced profits of 40 cents to 60 cents a share, sharply lower than its earlier forecast of $1.11 to $1.17 a share in earnings. The company also cut its dividend to 70 cents from $1.12.
In tech news, shares of Internet phone company Vonage Holdings (NYSE: VG - News) sank sharply after the company came up on the wrong end of another ruling in its patent dispute with Verizon Communications (NYSE: VZ - News). Last Friday, a federal judge ruled Vonage must stop adding new customers; the company immediately appealed and was granted a temporary stay. The company earlier was found to be in violation of several basic patents held by Verizon.
By the Bullmarket.com Staff

Labels: AA, AHM, AMD, BKR-B, BNI, CSX, INTC, NSC, UNP, VG, VZ

New Century (NEWC) and the Dirty Dozen: Cramer listed 12 subprime stocks bears are targeting after the fall of New Century. While not all of these names deserve to be hounded, Cramer believes investors should be careful before buying or selling:
1. IndyMac (NYSE: NDE - News)2. CharterMac (NYSE: CHC - News)3. Friedman Billings (NYSE: FBR - News)4. Fremont General (NYSE: FMT - News)5. Redwood Trust (NYSE: RWT - News)6. Newcastle Investment (NYSE: NCT - News)7. American Home Mortgage (NYSE: AHM - News)8. Gramercy (NYSE: GKK - News)9. RAIT (NYSE: RAS - News)10. Accredited (NasdaqGS: LEND)11. Thornburg Mortgage (NYSE: TMA - News)12. CapitalSource (NYSE: CSE - News)

Labels: AHM, CHC, CSE, FBR, FMT, GKK, Jim Cramer, Jim Cramer's Stop Trading, LEND, NCT, NDE, NEWC, RAS, RWT, TMA

Bullish calls:
RPM International (NYSE: RPM - News): 'Rustoleum! The stock got hit for $2 bucks. Down to 3% yield again. C'mon! Back up the truck for RPM, one of the great long-term performers and, by the way, a very conservative management.'Six Flags (NYSE: SIX - News): 'You should buy SIX in the spring, ahead of the summer season... We had that guy Mark Shapiro on... That guy just rocks.'General Maritime (NYSE: GMR - News): ' Remember, I have not been a fan of the tanker stocks, but the one guy I trust is Georgiopoulos. He's the CEO. He's actually the founder. It's his money man. We've got to go with him.'Halliburton (NYSE: HAL - News): 'You keep your HAL! The prince ... is now the king! ... has a 10% buyback ... HAL is awakening from its slumber. It is now marching upward. It has been my value stock of the year.'Staples (NasdaqGS: SPLS): 'Sport, I recommended this thing right here (at its current price) and it has not moved at all. And yet, it keeps delivering and delivering and delivering. I am not abandoning it. It's one of the best-run retailers out there.'Hewlett-Packard (NYSE: HPQ - News): 'I like HPQ. It's been stuck here, under $40. I want you to make the switch out of the DELL and into the HPQ.'Under Armour (NYSE: UA - News): 'That stock holds in like you won't believe! ... I think the breakdown in Reebok, which is now owned by Adidas, where it's now going to lose a lot of shelf space, is going to be UA's gain. I like UA so much, that I have to contain myself!'Charter Communications (NasdaqGM: CHTR): ' ... this is the level. Anybody who bought CHTR at $3.10, you must buy it here. This company is going to be able to refinance and refinance and refinance, because interest rates are so low. I am sticking by CHTR. 'Graco (NYSE: GGG - News): 'I didn't believe that the stock should be this low. He does have a lot of North America that's weak... I think that guy is great. I would take advantage of the fact that GGG is down. Take advantage of his honesty. I would pull the trigger.'
Neutral calls:
Cadbury Schweppes (NYSE: CSG - News): 'It yields 3.68% and it's all the way down to $41?... I've got to look at that .... Let's do a segment on CSG - I don't know whether it's going to be positive or negative - next week.'
Bearish calls:
Bausch & Lomb (NYSE: BOL - News): ' Here's the deal: I think that BOL - as long as it's run by Ron Zarella - is a nightmare. And he is in my hall of shame. Sell, sell, sell! He's ridiculous. He should step down. And, you know what Ron? It's not personal. It's just business.'American Home Mortgage (NYSE: AHM - News): 'That dividend is 18%, and I think some large dividends, unlike hips, do lie. I want to be careful of that ... that dividend is a distinct red flag. I'm nervous.'Dell (NasdaqGS: DELL): 'No. Sell, sell, sell! No, Michael Dell cannot work miracles. I like HPQ*. It's been stuck here, under $40. I want you to make the switch out of the DELL and into the HPQ.'Iconix Brand (NasdaqGM: ICON): 'This stock has so much momentum that it actually - and I don't mean this to be negative - this one scare's me, it's got so much momentum... I keep reading about it virtually everywhere ... I don't want to buy it, even though I know it's doing the right thing. Don't buy, don't buy.'Gmarket (NasdaqGM: GMKT): 'You know, GMKT's bad ... This has been a tough market. GMKT I was too bullish on it ... I hope it really goes up so we can really dump on it and get everybody out of it.'Melco PBL Entertainment (NasdaqGM: MPEL):Micron Technology (NYSE: MU - News): 'Not in our lifetime. Sell, sell, sell! Stay away my friend!'Pfizer (NYSE: PFE - News):Crown Media Holdings (NasdaqGM: CRWN): 'Your stock stinks! Sell, sell, sell!'

Published By SeekingAlpha

Labels: AHM, BOL, CHTR, CRWN, CSG, DELL, GGG, GMR, HAL, HPQ, ICON, Jim Cramer, Lightning Round, Mad Money, MU, pfe, RPM, SIX, UA

A rebound overnight in Asian markets carried westward to Europe and ignited gains on Wall Street today, sending the major market averages up more than 1% today. The rebound came despite some sluggish economic numbers from the government. Oil prices also resumed climbing as did metals, with gold, platinum, and silver all notching solid gains today. The yield on the 10-Treasury note rose to 4.53% as the bond market moved lower.
Many market observers cautioned that today's advance doesn't mean the recent correction has run its course. Among the cautionary news today was a revised report on U.S. productivity during Q4 of last year. The Commerce Department now says the productivity of U.S. workers grew at only a 1.6% annualized rate, or about half of the 3.0% gain the government agency initially forecasted.
Labor costs, meanwhile, soared, increasing to a revised 6.6%, compared with an earlier estimate of 1.7% growth. The revisions to the labor cost index and the drop in productivity point to inflationary pressures that make it less likely the Federal Reserve will act to reduce interest rates anytime soon. On top of those reports, the Commerce Department said that factory orders dropped by -5.6% in January, the biggest decline since July 2000.
Investors were willing to look past those numbers today, as buying interest was buoyed by strong gains on the Japanese, German, and British markets. Technology stocks paced today's advance, led by solid gains from Apple (Nasdaq: AAPL - News), which added 2%, and Google (Nasdaq: GOOG - News), up 4%. Google CEO Eric Schmidt said the two companies were working on additional projects, but didn't elaborate in an appearance at a West Coast technology conference. Terry Semel, CEO of Google's rival Yahoo (Nasdaq: YHOO - News), appeared at the same conference, where he said Yahoo's new Panama search technology is off to a solid start delivering better results for advertisers. The stock added 2%.
Citigroup (NYSE: C - News) enjoyed a 3% bounce after announcing a nearly $11 billion tender offer to take control of Japan's Nikko Cordial brokerage. An offer from Citi was expected since Nikko Cordial has run into problems related to an accounting scandal. Due to the scandal, the firm faces the risk of being delisted by the Tokyo Stock Exchange. Citi's relationship with the company and the weakened position it is in opened the opportunity for the U.S. banking giant. Subscribers can read our detailed analysis of the proposed deal in today's issue.
In M&A news, private equity firms Tornante and Madison Dearborn Partners said they have a deal in place to buy Topps (Nasdaq: TOPP - News), the famed maker of trading cards featuring Major League Baseball players, for $385 million. Tornante is the investment vehicle of Michael Eisner, former CEO of Walt Disney (NYSE: DIS - News). Topps gained 10% after the announcement.
Finally, investors took another look at battered subprime lenders today. Shares of New Century Financial (NYSE: NEW - News) rose 10% on more than 6x average daily volume, but the stock still has a long way to go to recoup yesterday's 69% dive. The chief financial officer of Countrywide Financial (NYSE: CFC - News), meanwhile, told an investor conference that while some subprime lenders might fail, his company won't. CFO Eric Sieracki called Countrywide a "top-conditioned athlete" that will get past current woes in the sector. The stock added 5% today. Other originators like American Home Mortgage Investment (NYSE: AHM - News) and Accredited Home Lenders Holding (Nasdaq: LEND - News) climbed 8% and 9%, respectively.
By the BullMarket.com Staff

Labels: AAPL, AHM, C, CFC, DIS, GOOG, LEND, NEW, TOPP, YHOO