Jim Cramer Blog

Cramer started the Lightning Round by recommending that holders of Baidu.com (BIDU) and Focus Media (FMCN) take some profits off the table. The holders of these stocks should sell half their holdings.

Bullish:
Cisco (CSCO) is a better choice than Arris Group
Procter & Gamble (PG)
AK Steel (AKS): Cramer recommended owning AKS on the potential for a takeover.
Go with Wynn (WYNN) and Las Vegas Sands (LVS) instead
Republic Services (RSG): Likes it but would go with Waste Management (WMI) is the best-of-breed stock in this space.
Altria (MO): Stick with it and buy more if it goes below $65.
Intuitive Surgical (ISRG): "One of the great growers."
Freeport-McMoRan (FCX): Cramer expects FCX to go $120, but he wouldn't frown on investors taking profits.
Cramer likes Best Buy (BBY) or Lululemon (LULU) better.
Chipotle (CMG) instead of Buffalo Wild Wings
Garmin (GRMN): Cramer likes the stock, but it's up too much today.

Bearish:
Harman International (HAR): Wait until December to look at.
Arris Group (ARRS): Overpay
Global Payments (GPN): Cramer's not interested.
Melco (MPEL): Three boo's
E*Trade (ETFC): Cramer isn't bullish on the stock just yet. He said he doesn't think it goes below $9.
GigaMedia (GIGM): Cisco (CSCO) is the better play here also.
hhgregg Inc (HGG): No
Buffalo Wild Wings (BWLD): Cramer thinks you should get out of Buffalo Wild Wings

Labels: AKS, BBY, BIDU, CMG, CSCO, FCX, FMCN, GRMN, ISRG, Jim Cramer, Lightning Round, LULU, LVS, Mad Money, MO, PG, RSG, WYNN

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.
Oil Services HOLDR Oct 185.0 Calls (AMEX:OIH - News). OIH's PowerRating is 6.
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.
SanDisk Sep 52.2 Puts (NasdaqGS:SNDK - News). SNDK'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.
Potash Sep 90.0 Calls (NYSE:POT - News). POT's PowerRating is 7.
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 Sep 440.0 Puts (NasdaqGS:GOOG - News). 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.
AK Steel (NYSE:AKS - News). AKS' PowerRating is 7.
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.
AmeriCredit Corp. (NYSE:ACF - News). ACF's PowerRating is 5.
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.
Motorola (NYSE:MOT - News). MOT's PowerRating is 5.
PowerRatings are courtesy of www.PowerRatings.net

Labels: ACF, AKS, GOOG, MOT, OIH, POT, SNDK, stock options

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.
Google Inc. June 540 Calls (NasdaqGS:GOOG). GOOG's PowerRating is 5.
Baidu.com June 125 Calls (NasdaqGM:BIDU). BIDU's PowerRating is 5.
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.
MedImmune June 50 Puts (NasdaqGS:MEDI). MEDI's PowerRating is 2.
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.
AK Steel Holding June 22.5 Calls (NYSE:AKS). AKS' PowerRating is 5.
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.
iShares MSCI Emerging Markets Index June 115 Puts (AMEX:EEM). EEM's PowerRating is 6.
iShares FTSE/Xinhua China 25 Index May 105 Puts (AMEX:FXI.TO). FXI'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.
None Today
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.
F5 Networks Inc. (NasdaqGS:FFIV). FFIV's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AKS, EEM, FFIV, FXI, GOOG, MEDI, stock options

Only two trading days remain in the year and, in the absence of any market nosedives between now and Friday, bulls will probably be pleased with the stock market’s performance in 2006. The S&P 500 Index ($SPX) has added a respectable 14.3%, the Dow Jones Industrial Average ($INDU) is up 16.74% to record highs, and the NASDAQ ($COMPQ) is up 10.24%.The gains aren’t limited to the large cap stocks of the Dow, S&P 500, or NASDAQ. The Russell 2000 Small Cap Index ($RUT) gained 18.5% and the S&P MidCap Index ($MID) rose more than 10%. In addition, nearly every sector of the market moved higher as well. Steel stocks were among the best gainers. Investor appetite for steel companies rose amid merger hopes and better pricing for the metal. So, despite concerns about slowing demand from autos and housing, stocks like AK Steel (AKS) and Chaparral Steel (CHAP) surged more than 100%. The SIG Steel Producers Index ($STQ) is up nearly 50% on the year. Tech stocks traded mostly higher. Computer stocks led the sector in 2006. The GSTI Computer Index ($GHA) surged 31.65% since December 31, 2005. Internet and software stocks also did well. However, semiconductors did not. The PHLX Semiconductor Index ($SOX) is off 2% and, at 469.97; the chip index is below its 2003 closing value of 508.21 The Dogs of the Dow ($MUT) made a comeback. The investment strategy, which involves buying the ten Dow stocks with the highest dividend yields at the beginning of the year, delivered a 27% return so far in 2006. The advance follows an 8.85% decline in 2005. Energy stocks continued their dominant performance. The Select Sector Energy Fund (XLE), which holds all of the energy-related stocks from within the S&P 500 Index, is up 18%. The gains add to a 23.4% advance in 03, a 31.8% rally in 04, and a 38.5% surge last year. Major oil companies led the rally. The AMEX Oil Index ($XOI) is up 21.4%. Meanwhile, the AMEX Natural Gas Index ($XNG) has added 12.53% and the PHLX Oil Service Index ($OSX) gained 11.1%.Brokers and banks helped lift the financials. The Select Sector Financial Fund (XLF) rallied 17.21%. Commodity-related stocks, consumer staples, retailers, and cyclicals also beat the S&P 500 Index. Utilities, airlines, and gold mining stocks also did well in 2006.
By Frederic Ruffy, Optionetics.com

Labels: AKS, CHAP, GHA, MUT, OSX, SOX, STQ, XLE, XLF, XNG, XOI

WellPoint (NYSE: WLP - News), MedcoHealth (NYSE: MHS - News), Quest Diagnostics (NYSE: DGX - News), Schering-Plough (NYSE: SGP - News), Johnson & Johnson (NYSE: JNJ - News), Pfizer (NYSE: PFE - News) Merck (NYSE: MRK - News), Novartis (NYSE: NVS - News), GlaxoSmithKline (NYSE: GSK - News) - Cramer notes that drug stocks are having a post-election rally and are screaming "buy, buy, buy!" with the exception of Pfizer, a "challenged company" which has fired a lot of people to "create an upside surprise by lowering its bar." Cramer likes MHS, DGX, SGP, JNJ, MRK, NVS, GSK and adds that WLP is best of breed.

Sacked Citi: Citigroup (NYSE: C - News) - Cramer comments that since CEO Chuck Prince protected Citibank against New York Attorney General Eliot Spitzer, shareholders have been "brain dead and happy" and fail to realize that there needs to be a change in leadership. Concerning suggestions that Citibank should be broken up, Cramer said, "I believe that breakup calls make sense, but not until you have someone at the helm who can make a difference." Cramer suggested selling Citibank.
Housing, General Motors (NYSE: GM - News), Ford (NYSE: F - News) and Exxon (NYSE: XOM - News) - Cramer notes that in housing, sellers are "desperate", are cutting prices, and buyers should take advantage of the current inventory excess. "There is not an industry in the world that can finance nonproducing inventory except oil, which is why I like that business so much," Cramer said. "Its inventory goes up in price as it sits because of a developing multiyear storage." Homebuilding is a cyclical rather than a secular grower, explains Cramer adding that they "downgraded the cyclicals at the bottom of the cycle because the price-to-earnings ratios soared." Cramer notes the pullback of the auto and housing sectors and predicts a "big decline" in the economy, adding that GM and Ford are laying off workers. Cramer does see some momentum in energy with Exxon as the "annointed stock."
Bullish calls:
Las Vegas Sands (NYSE: LVS - News) and MasterCard (NYSE: MA - News): Although these stocks are "beaten down" Cramer declares that they are going up and would pull the trigger if they go down five or six points because "even the best ones need to take a breather."Saks (NYSE: SKS - News) and Nordstrom (NYSE: JWN - News): Saks is "in the midst of a major turnaround" and should join ranks with JWN.Bank of America (NYSE: BAC - News): This company knows how to treat its shareholders, according to Cramer.Cisco (NASDAQ: CSCO - News): Cramer says he is a "Cisco guy" when it comes to telecom.AK Steel (NYSE: AKS - News): Cramer likes this company but prefers Reliance Steel (NYSE: RS - News).
Neutral/Bearish calls:
Continental (NYSE: CAL - News): Cramer likes this airline, but since the sector has had a "tremendous" run, he would take profit now.JPMorgan (NYSE: JPM - News): "Fine," says Cramer, but not a "must own."RF Micro Devices (NASDAQ: RFMD - News)Coldwater Creek (NASDAQ: CWTR - News): When a caller complained about being in the "house of pain" with Coldwater Creek, Cramer replied, "That's because it's a huge mistake."

Labels: AKS, BAC, C, CSCO, DGX, GM, GSK, Jim Cramer, JNJ, JWN, LVS, MHS, MRK, NVS, pfe, Real Money Radio, SGP, SKS, WLP, XOM