Jim Cramer Blog

Bullish Calls:

Macy's (NYSE: M - News): 'I am still banking with Terry Lundgren. I am not running away. I think the company, at $40 bucks, represents good value. 'Nike (NYSE: NKE - News): ' ... that looks like it's going to break through $60 next week.'Under Armour (NYSE: UA - News): 'I prefer Under Armour (to Crocs) here.'Coca-Cola (NYSE: KO - News): 'If I'm going to buy a soda company, I'm going to buy Coca-Cola.'Intel (NasdaqGS: INTC - News): 'The quarter's fine. You can't get excited about it. The stock will percolate higher.'Centex (NYSE: CTX - News): 'The only one that seemed to have stopped building homes before it got really crucial and horrible was Centex. If you insist on bottom-fishing in the group, I want you in CTX.'AT&T (NYSE: T - News): 'You do not sell T.'Verizon (NYSE: VZ - News)Foster Wheeler (NasdaqGS: FWLT - News): 'Buy FWLT on the way down. That's how I would play it.'Gildan Activewear (NYSE: GIL - News): ' ... has tremendous momentum. It remains one of my favorite stocks. I want to own it. I want to hold it. I say that, down to $32, is a real buy.'Nastech Pharmaceuticals (NasdaqGM: NSTK - News): ' ... had two patents today. One on obesity. This is our favorite spec of the year now in biotech. $12.96. If you pay more than $13, you're wrong. I think it's the most exciting stock out there.'
Bearish calls:
Jamba (NasdaqGM: JMBA - News): 'I know it's got great buzz. That's not enough for me anymore. Not after the Jones Soda come down... I'm not playing!'Crocs (NasdaqGS: CROX - News): 'I think the near-term move has been made and I prefer Under Armour here.'DR Horton (NYSE: DHI - News)Toll Brothers (NYSE: TOL - News)Lennar (NYSE: LEN - News)Alcan (NYSE: AL - News)

Published By SeekingAlpha

Labels: AL, CROX, CTX, FWLT, GIL, INTC, Jim Cramer, JMBA, KO, LEN, Lightning Round, M, Mad Money, NKE, NSTK, TOL, UA, VZ

The stock market rallied across the board today, with the Dow Jones surging almost 284 points, the Nasdaq gaining nearly 50, and the S&P 500 up about 29 points. The Dow and S&P hit all-time closing highs. Stocks were buoyed by retail sales numbers as well as strong deal flow. Upbeat economic data also sparked a rally for the bulls.

In economic news, economists raised U.S. growth estimates following a report that showed exports rose to a record in May. Economists predict that the export data will add at least 1% to second quarter GDP. U.S. foreclosures, meanwhile, jumped to a record amid rising rates and falling home prices. RealtyTrac reported that foreclosures reached 926,000 in the first half of the year.
Shares of the nation's second-largest discount retailer Target (NYSE: TGT - News) notched an all-time high after it reported a 3.3% rise in June same-store sales. Also helping the shares gain steam was the news that activist shareholder William Ackman of Pershing Square Capital has accumulated a 5% stake in the retailer. Target finished the day higher by 6.8%.
In other retailing news, Wal-Mart (NYSE: WMT - News) said June sales rose 2.4%, which easily beat consensus estimates of 0.9%. The world's largest retailer noted that the environment remained "challenging." Macy's (NYSE: M - News), meanwhile, sank -2.9% after the company said June same-store sales declined -2.7%, more than analysts had expected. The company previously forecasted a range of flat to negative -2% for same-store sales. Macy's also cut its earnings for the upcoming quarter to 20-30 cents a share from a previous forecast of 35-45 cents a share.
In merger news, Rio Tinto agreed to purchase rival Alcan (NYSE: AL - News) for $38.1 billion, smashing a hostile bid by Alcoa (NYSE: AA - News). The offer is 33% higher than Alcoa's recent bid. Rio Tinto's output in aluminum will expand fourfold once the merger is completed. In earnings news, Marriott International (NYSE: MAR - News) said earnings rose 11% to $207 million. Excluding certain items, EPS was 57 cents a share. The company said it benefited from its strong timeshare business. However, shares fell on reports that its REVPAR (revenue per average room) outlook will fall for the upcoming quarter. The company expects REVPAR growth of 5.6% in the Americas, below estimates of 6.4%. Shares fell -2.8%.

By the BullMarket.com Staff

Labels: AA, AL, M, MAR, TGT, WMT

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Marriott (NYSE:MAR - News) announced beating earnings during trading hours today, with $0.57 EPS over an expected $0.53 EPS. MAR's PowerRating is 5.
Commerce Bancshares (NasdaqGS:CBSH - News) also beat earnings during the day, with $0.79 EPS over a consensus of $0.77 EPS. CBSH's PowerRating is 4.
General Electric (NYSE:GE - News) announces earnings on Friday morning, with analysts expecting $0.52 EPS. GE's PowerRating is 5.
Rio Tinto (NYSE:RTP - News) announced on Thursday it has reached an agreement to buy aluminum producer Alcan (NYSE:AL - News) for $38.1 billion. RTP's bid bested rival Alcoa's (NYSE:AA - News) offer of $28 billion. RTP's PowerRating is 6, and AL's PowerRating is 3 and AA's PowerRating is 5.
Motorola (NYSE:MOT - News) warned that the company's Q2 results would be lower than expected, on slow sales in Europe and Asia. MOT's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AA, AL, CBSH, GE, Hot Stocks, MAR, MOT, RTP

Mining giant Rio Tinto has offered to buy Canadian aluminum company Alcan Inc. for $38.1 billion in cash, the companies said Thursday, in a friendly takeover that tops a hostile bid by U.S.-based Alcoa.
The bid exceeds a $28 billion offer of cash and stock from Alcoa Inc. that Alcan's board rejected in May, and would create the world's largest aluminum company.
In a joint statement, Rio Tinto and Alcan said the Anglo-Australian miner was offering $101 per share for Alcan and that Alcan's board was recommending the deal to shareholders.

Labels: AL, Alcan Inc.

Stocks surged Thursday, carrying the Dow Jones industrials into record territory as investors gleaned some positive consumer spending trends from retailers' generally sluggish June sales reports.
A new bid for aluminum maker Alcan Inc. added to the upbeat mood on Wall Street, which drove the Dow up more than 100 points to a new intraday high. Helping stocks was a move by Wal-Mart, one of the 30 companies that make up the Dow Jones industrial average. The company's report helped ease some investors' worries about the health of the consumer ahead of the Commerce Department's Friday report on U.S. retail sales. The stock market got an additional boost after mining company Rio Tinto offered to buy Canadian aluminum producer Alcan for $38.1 billion. The offer topped a bid from Alcoa Inc. that Alcan's board rejected in May, and Alcoa is considering whether to make another bid. In late morning trading, the Dow Jones industrial average rose 143.55, or 1.06 percent, to 13,721.42, after climbing to 13,724.11, an intraday record. The Dow's record close is 13,676.32, set June 4.
Broader stock indicators also surged higher.
The Standard & Poor's 500 index rose 12.35, or 0.81 percent, to 1,531.11, nearing its record close of 1,539.18, which also came on June 4.
The Nasdaq composite index rose 18.81, or 0.71 percent, to 2,670.60. Light, sweet crude rose 72 cents to $73.28 per barrel on the New York Mercantile Exchange.
Alcan and Alcoa shares jumped Thursday following Rio Tinto's move to top Alcoa's hostile bid for Alcan.
Source: Madlen Read, AP Business Writer

Labels: AA, AL, HD, JCP, M, MOT, RTP, SHLD, WMT

After a seesaw day, the Dow, S&P 500 and Nasdaq all closed down, but not by much. Oil prices rose again on threats of a labor strike by Nigerian workers. Futures ended the day up 1.6% to $69.09, above Friday's close of $68.00. The National Association of Home Builders (NAHB) released its builders' housing market index for June with a score of 28, the lowest since February 1991. The index, which tracks builders' outlooks for the housing market, is down from 42 one year ago. The chief economist for the NAHB said that the organization expects home prices to be a drag on the economy for the rest of 2007. This announcement comes a day ahead of the U.S. government releasing its new housing starts and building permits statistics for May.
Fast-food restaurant Wendy's (NYSE: WEN - News) is reportedly putting itself on the market after cutting its full-year earnings guidance. While there is no timetable for the sale, a special committee of the board of directors is overseeing the process after making the initial recommendation. The earnings forecast is now $295-$315 million, or $1.09-$1.32 per share. Analysts put the EPS at $1.27. While the company struggles with a shrinking market share, it announced same-store sales growth of 3.8% in the first quarter and 0.7% thus far in the second quarter through June 15th.
Australian-based mining company BHP Billiton (NYSE: BHP) is apparently in a buying mood. One source said the company is exploring options regarding a potential $40 billion takeover of Pittsburgh-based Alcoa (NYSE: AA), while Reuters said late in the day that it was looking to buy Alcan (NYSE: AL). Alcoa was recently in the news for its failed bid to take over Alcan. Alcoa was up 0.7% on the day, Alcan rose 0.9%, and BHP saw an increase of 1.3%.
General Electric (NYSE: GE) is reportedly working with Financial Times publisher Pearson Plc (NYSE: PSO) to structure a bid for Dow Jones (NYSE: DJ). The two companies plan to combine The Wall Street Journal with its current offerings of CNBC and The Financial Times. The Bancroft family, owners of the company, are currently developing a proposal to submit to original suitor News Corp. (NYSE: NWS) that would maintain the company's editorial independence.
Friendly Ice Cream (Amex: FRN) has agreed to be taken private by private equity firm Sun Capital Partners. Sun Capital Partners will acquire the ice cream parlor and casual restaurant chain for $15.50 per share, or $337.2 million. The stock has been criticized in recent months by shareholders, including a letter sent in March by activist investors. The day after the letter was sent, the company announced that it would seek to be acquired.
Finish Line Inc. (Nasdaq: FINL), a sports-clothing retailer, announced today that it would pay $1.5 billion in cash to acquire Genesco, Inc. (NYSE: GCO). Genesco recently rejected an offer from Foot Locker (NYSE: FL) to be acquired saying that the offer was too low. Finish Line Inc. says that the combined operations would have sales of about $2.8 billion from 2,870 stores in the United States, Canada, and Puerto Rico.
By the BullMarket.com Staff

Labels: AA, AL, BHP, DJ, FINL, FL, FRN, GCO, GE, PSO

Bullish:
Networks (NasdaqGM: ARUN): 'Blowout quarter last week ... How about we wait for a pullback, before we back up the truck... If it goes below $20, you've got to be willing to pull the trigger.'Merrill Lynch (NYSE: MER): ' MER is not going to have any problem going over $100.00 ... Because MER is incredibly well-run. The sub-prime problems are in the past ... That stock needs to go higher right now. Buy, buy, buy!'Level 3 Communications (NasdaqGS: LVLT): 'I think this stock is going to finish the year - yes, and if I may be so bold... - at between $7 and $8. So any one of these declines is just another opportunity to load the boat up with LVLT.'Wal-Mart (NYSE: WMT): 'I got behind WMT in the mid-$40s, and I am not backing away now at $50. It's got much more upside.'Alcoa (NYSE: AA): ' I think Alcoa and Alcan are going to merge... You know I think that AA is not going to be public in a year if they don't get that deal...'Alcan (NYSE: AL)Dominion Resources (NYSE: D): 'I think that one may be a better diversified utility company than yours (Targa Resources). So let's make that switch.'Research In Motion (NasdaqGS: RIMM): 'That has the better fundamentals (than Palm.)'Freeport-McMoRan (NYSE: FCX)Qualcomm (NasdaqGS: QCOM): 'If you want to be in a semiconductor play that has to do with cell, I will send you to QualComm.'BHP Billiton (NYSE: BHP) CVRD (NYSE: RIO): ' ... among the cheapest mineral stocks ... It's just too darn cheap, too well-run and, ever since they were able to buy the largest nickel company ... this thing wreaks of monopoly!'Barnes & Noble (NYSE: BKS): 'I actually like very much the Barnes & Noble quarter, and they're buying back a lot of stock.'
Bearish calls:
Target (NYSE: TGT): ' ... sell, sell, sell... let's take a little off the table, and go into Wal-Mart.Aluminum Corp. of China (NYSE: ACH) 'The Chinese market is overheated. I liked this stock initially as a dividend play. Now that it only yields 2%.'Targa Resources (NasdaqGM: NGLS)Palm (NasdaqGS: PALM): 'You got lucky. I need you out of PALM. I would rather see you in Research In Motion ... You just lucky with that Elevation bid... I want to head to the hills, PALM. Sell, sell, sell!'Scholastic (NasdaqGS: SCHL): 'Oh, way too inconsistent. It's really hurt a lot of people.'Tesoro (NYSE: TSO): 'I want you to sell that. That move has peaked. Those margins cannot be sustained ... 'Valero Energy (NYSE: VLO): 'I want TSO and VLO sold.'RF Micro Devices (NasdaqGS: RFMD): 'I am not going to bless RFMD. Not on this show. No way ... I understand the speculative desire for RFMD, but I am not going to tell you to stay with it.'

Labels: AA, ACH, AL, ARUN, BHP, BKS, D, FCX, Jim Cramer, Lightning Round, LVLT, Mad Money, MER, NGLS, PALM, QCOM, RIMM, RIO, TGT, WMT

Lower volume marked the beginning of the summer, as the Dow, S&P 500, and Nasdaq all closed up. Gold and silver were up, while oil, on news that the Nigerian oil workers' strike was over and a new president sworn in, fell more than -$2. While last week's reports showed that both new and existing home inventories are up, year-over-year prices dropped almost -1.5% from Q1 2006 according to the S&P/Case-Shiller Home Price Index. Consumers, meanwhile, continue to remain confident, with the Consumer Confidence Index for May coming in a better-than-expected 108.0.

The news continued to be dominated by discussion of M&A activity. Alcan (NYSE: AL) and Alcoa (NYSE: AA) are at the center of a maelstrom of speculation following the latter's failed attempt to purchase the former. Some analysts are now predicting that Alcan will reverse the tables and try to make a bid for Alcoa. Theories are being tossed around as to whether there are other potential buyers for either company, as demonstrated by the fact that Alcoa options for July have risen.
The FTC opened an investigation today, examining the proposed Google (Nasdaq: GOOG) acquisition of DoubleClick. The deal, which is worth approximately $3.1 billion, was originally criticized by competitors Microsoft (Nasdaq: MSFT ) and Yahoo (Nasdaq: YHOO), but both companies have since made moves that mimic Google's purchase. Representatives from Google have stated that they expect the deal to fly through the regulatory phase and be approved by year's end.
Apartment REIT Archstone Smith (NYSE: ASN) has agreed to be acquired by Tishman Speyer and Lehman Brothers (NYSE: LEH) in a deal estimated at $22.2 billion. The buyers have agreed to acquire Archstone for $60.75 per share in cash, a premium of 22.7% on May 24th, before news of the deal broke.
Avaya (NYSE: AV - News) is reportedly beginning the process of putting itself on the market and speaking with potential suitors. So far, the company is speaking both with Silver Lake Partners, a private equity firm, and Nortel Networks (NYSE: NT - News), a technology company. The company seems to be a promising target for a buyout based on its lack of debt and high level of cash flow. The stock finished up 15.3%.
Barclay's (NYSE: BCS ) may have some competition in its purchase of ABN Amro (NYSE: ABN). The Royal Bank of Scotland is reportedly making a move to purchase the smaller investment bank, offering more than Barclay's. While ABN Amro does not seem interested in pursuing the RBS deal, the would-be suitor is threatening to bring the deal straight to the shareholders if it feels that management does not give it enough attention.
VeriSign (Nasdaq: VRSN) announced today that Stratton Sclavos has resigned as CEO of the company, but no reason was given for the move. William Roper, Jr., a former independent director, has been named as CEO and president. VeriSign has also postponed an analyst call that was scheduled for June 6th.

By the BullMarket.com Staff

Labels: AA, ABN, AL, ASN, AV, BCS, GOOG, LEH, MSFT, NT, VRSN, YHOO

The Dow Jones and S&P 500 continue to flirt with record closings, but today both ended further away than when trading opened. Both fell fractionally, and they were joined by the Nasdaq, which fell -0.47%. Today followed the same pattern of the past two sessions with all three indices climbing early before falling back. At 2:00PM, the downward decline for the day came about, and although there was a slight rebound, it was not enough to push the markets into positive territory for the day's end.
The Energy Information Association announced the weekly gas inventories this morning. The stockpiles rose higher than analyst estimates, almost doubling the prediction of 800,000 barrels. Crude oil stocks also rose by approximately 2 million barrels.
There were a number of retailers out with earnings today, with Target (NYSE: TGT), Men's Wearhouse (NYSE: MWH), and GameStop (NYSE: GME) all reporting results. Target saw first-quarter profits jump 18%, as same-store sales rose 4.3%. Earnings per share rose to 75 cents from 65 cents in 4Q06, an increase of 8%. Target's credit card was also a major profit center, adding $143 million in pretax earnings. Bull Market Report subscribers can read our report on Target's earnings in today's edition.
Men's Wearhouse saw an earnings increase of 49.1%, as sales rose 14.2%. Another growth indicator -- tuxedo rentals in its Men's Wearhouse stores, which accounts for 12% of its revenue stream -- jumped 34.2%. The company also saw benefits from its acquisition of After Hours Formalwear, which analysts expect to bring increased value and revenue to the company.
GameStop also released higher-than-expected earnings today, topping the charts at 111% net earnings growth. The company saw total sales grow 23%, with same-store sales increasing 15.3%, bolstered by the release of next generation hardware such as Sony's (NYSE: SNE) Playstation3 and Nintendo's Wii. A strong game market also helped. The stock fell -4.9%, though, as investors were disappointed with Q2 guidance.
In other news, Alcan (NYSE: AL) rejected a bid made by Alcoa (NYSE: AA). Both companies' stocks rose on the news. Meanwhile, Payless Shoe Source (NYSE: PSS) moved forward in its attempt to purchase Stride Rite shoes, and Boston-based women's health companies Hologic (Nasdaq: HOLX) and Cytyc (Nasdaq: CYTC) agreed to merge.
By the BullMarket.com Staff

Labels: AA, AL, CYTC, GME, HOLX, MWH, PSS, SNE, TGT

Alcoa Inc. shares hit a five-year high Wednesday, rising to the biggest midday gain on the Dow Jones industrial average after rival Alcan Inc. said its shareholders should turn down Alcoa's takeover offer.
The index added 48.68, to 13,588.63, with 22 of the 30 stocks in the green.
A Prudential analyst said Alcan may turn the tables and buy Alcoa. Alcan shares were also up, indicating investors think Alcoa will raise its bid or another company will make an offer for Alcan. Alcoa shares rose $1.8, or 4.6 percent, to $40.75, and peaked at $40.80.
Caterpillar Inc. stock also reached an annual high, continuing its gains for the week. Shares of the heavy machinery maker rose $1.54, or 2.1 percent, to $77.06. The stock climbed as high as $77.25.
Shares of home improvement retailer The Home Depot Inc. added 45 cents to $38.98, erasing Tuesday's loss.
On the losing side, Honeywell International Inc. shares fell 75 cents to $56.22. The stock neared a seven-year high Friday, and on Tuesday, Honeywell agreed to buy Dimensions International, a defense logistics company, for $230 million.
International Business Machines Corp. stock gave up 63 cents, to $106.07. Shares have been declining since Friday, when the stock reached a five-year peak after IBM said it could double its earnings by 2010 after cutting costs and buying back shares.
Shares of aerospace company Boeing Co. were down 67 cents to $95.80. Boeing reiterated its 2007 and 2008 forecasts at an investors' conference Wednesday, but investors may be disappointed that the company did not raise those outlooks.

Published by AP

Labels: AA, AL, BA, CAT, HD, HON, IBM

Alcoa (NYSE: AA), Alcan (NYSE: AL), BHP Billiton (NYSE: BHP), CVRD Rio (NYSE: RIO)
Cramer thinks AA bid for AL because it wanted to prevent rivals BHP and RIO from making an initial move. He comments AA has been desperately trying to raise its stock price by every means possible, including selling divisions, but it is still at $35 in spite of a great quarter. He added, "I think Alcan would put itself up for sale and have a real bidding auction rather than do a deal with Alcoa." If a deal does go through, Cramer says it is "worth watching" because it could spark an antitrust controversy.

Labels: AA, AL, BHP, Jim Cramer, RIO, Wall Street Confidential

Alcoa (NYSE: AA), Alcan (NYSE: AL), Cleveland Cliffs (NYSE: CLF): Cramer would play AA's bid for AL by purchasing some CLF, even though it is at its 52-week high. He noted CLF is a $3 billion company with a "tremendous" repository of iron, and he predicted iron will soon be in short supply. Cramer reiterated his comment that AA will not be public by next year; "This sector is so fluid, that I would not bet against anybody. Everybody's for sale."
Apple Inc. (NasdaqGS: AAPL), Boeing (NYSE: BA) and Deere & Co. (NYSE: DE): Cramer predicts these three will be breakout stocks, since Apple will release its iPhone next month, the aerospace cycle is "amazing," and agriculture is healthy; "we're off to the moon with DE," commented Cramer. He observed that while the stocks seem expensive on 2007, they are cheap on next year's earnings, and resolved to trade in his Zanderphone (referring to Motorola's CEO Ed Zander) for an iPhone.
Cameco (NYSE: CCJ) and Mosaic (NYSE: MOS): Cramer likes CCJ and MOS as a plays for producing uranium from phosphates but would wait until the stocks pull back because they have both have increased substantially. He prefers MOS since it has agriculture to fall back on.

Labels: AA, AL, BA, CCJ, CLF, DE, Jim Cramer, Jim Cramer's Stop Trading, MOS

Blue Chip stocks as measured by the Dow Jones Industrial Average inched upward to another record close, but stocks were otherwise mixed today as the technology sector closed fractionally lower. Oil prices inched down, but the 10-year Treasury note gained.
The Dow set its 20th record close since the beginning of the year. Part of the Dow's boost came from a hostile bid by Alcoa (NYSE: AA), a Dow component, for its Canadian rival Alcan (NYSE: AL). Alcoa offered an unsolicited bid of $26.9 billion for its cross-border competitor. Were the bid to be successful -- and Wall Street was betting today that the price would go higher -- the combined companies would control 20% of the world's aluminum production and would put back together companies split up over antitrust concerns years ago. Alcoa said it would address those issues by divesting itself of other assets. Alcoa's cash-and-stock offer valued Alcan at $73.25 a share, but investors quickly bid up the price of Alcan's stock above that level. Alcoa's shares also closed 8.3% higher.
Another factor that will drive trading this week will be the Federal Reserve, which meets on Tuesday and Wednesday to discuss interest rates and the economy. Most observers expect the Fed to hold the line on rates once again, but investors will be closely watching for any indications of a sentiment change from the central bank.
In other news, Johnson & Johnson (NYSE: JNJ) closed lower after announcing that a new drug-coated stent being developed by its Conor MedSystems unit had failed a key trial and would be pulled from overseas markets. Stents are used by heart surgeons to open up clogged arteries and keep blood flowing. Plans to introduce the new stent into the U.S. were also shelved. Some analysts suggested the announcement wasn't a major financial blow because the product was only expected to be a modest contributor over the next 12-18 months. Shares of Boston Scientific (NYSE: BSX) and Abbott Laboratories (NYSE: ABT), which offer competing products, rose on the news.
In the tech sector, Yahoo (Nasdaq: YHOO) backtracked following Friday's advance that was driven by rumors that it's talking to Microsoft (Nasdaq: MSFT) about some sort of linkage that would enable the two companies to better blunt Google (Nasdaq: GOOG).
Chipmaker Marvell Technologies (Nasdaq: MRVL) gained 1.1% after the company announced management changes to address problems stemming from its stock-option program. The company's board said its options problems were the result of a "systemic failure of internal controls." Marvell's CFO quit and the company fired the general counsel of its U.S. subsidiary. Co-founder Sehat Sutardja was asked to give up the chairman's title, but remains as CEO. Co-founder Weili Dai will assume a "significantly reduced role."
Finally, Berkshire Hathaway (NYSE: BKR-B) held its annual meeting over the weekend, during which CEO Warren Buffett commented that he's shopping for a huge deal in the $40-$60 billion range, but he's having trouble finding the right candidate. He also talked about succession plans, though he has no immediate plans of stepping down.

Labels: AA, ABT, AL, BSX, GOOG, JNJ, MRVL, YHOO

Symbol
Name
Last Trade
Change
Volume
Related Info
IPSUW
IMPERIAL SUGAR WTS
10.2645 1:58PM ET
2.3445 (29.60%)
56,461

AL
ALCAN INC
80.85 2:04PM ET
19.82 (32.48%)
27,373,153
OCAS
OHIO CASUALTY CP
43.16 2:09PM ET
9.84 (29.53%)
5,188,480

SEA-WT
STAR MARITIME ACQ WT
3.40 1:59PM ET
0.62 (22.30%)
561,800

VOXW
VOXWARE INC
7.04 2:08PM ET
1.24 (21.36%)
227,026
FREEZ
FREESEAS INC WT Z
1.25 1:31PM ET
0.20 (19.05%)
11,196

RCKY
ROCKY BRANDS INC
13.5805 2:09PM ET
2.1405 (18.71%)
323,649

SLP
SIMULATIONS PLUS INC
11.67 2:02PM ET
1.67 (16.70%)
203,355

IPSU
IMPERIAL SUGAR CO
31.24 2:09PM ET
3.66 (13.27%)
1,440,796

NRVN
NATURE VISION INC
2.46 1:47PM ET
0.25 (11.31%)
11,680

CGR
CLAUDE RESOURCES ORD
1.6399 2:01PM ET
0.1899 (13.10%)
822,200

IOT
INCOME OP RL INV INC
6.055 10:51AM ET
0.655 (12.13%)
1,000

CRY
CRYOLIFE INC
11.84 2:04PM ET
1.27 (12.02%)
923,700

UFPT
UFP TECH INC
6.3988 2:08PM ET
0.6888 (12.06%)
322,130

IPA
INTERPHARM HLDGS INC
1.75 1:58PM ET
0.18 (11.46%)
67,800
WAVX
WAVE SYSTEMS CP CL A
2.6394 2:08PM ET
0.2894 (12.31%)
274,272

AVII
AVI BIOPHARMA INC
3.07 2:08PM ET
0.30 (10.83%)
2,720,798
GNSY
GENESYS SA ADR
1.6799 1:58PM ET
0.1599 (10.52%)
1,173
GNET
GLOBAL TRAFFIC NETWO
6.9628 2:02PM ET
0.6628 (10.52%)
152,910

Labels: AL, AVII, CGR, CRYO, FREEZ, GNET, GNSY, IOT, IPA, IPSU, IPSUW, NRVN, OCAS, RCKY, SLP, UFPT, VOXW, WAVX

Which stocks to buy?
George F. Foley, a portfolio manager for the Glenmede Large Cap Value and Core Value funds, is leaning heavily toward materials companies, particularly well-known names such as Alcoa (AA), Alcan (AL), and Phelps Dodge (PD) that he thinks can benefit from gains in efficiency. Merrill Lynch & Co. chief investment strategist Richard Bernstein favors high-quality tech companies, discount retailers, global defense companies, and multiline insurers. He also likes industrials and telecom shares as the demand for raw materials and expertise increases in a burgeoning global infrastructure.
Tech seems to be a common theme for 2007. John B. Cunningham, chief investment officer at J. & W. Seligman & Co. in New York, likes hardware specialists such as computer, hard drive, and memory makers as consumer demand for electronics and capital spending by big corporations continue at a healthy clip. "The fundamentals are still very solid," he says. "We think tech can outperform the broader market." He also recommends telecom equipment makers as regional phone operators expand their systems to compete with cable operators.
Don't forget financials, says Edward Yardeni, chief investment strategist of Oak Associates Ltd. He says the stocks of investment banks and asset managers are good ways to bet on merger mania and retiring baby boomers. And although energy has been one of the best-performing sectors in the S&P for the last three years, plenty of opportunities remain, he says. There's still momentum in the drilling, equipment, and services companies. "Look around," says Yardeni. "We have a capital-spending boom going on."
Internationally focused investors should expect global economic growth to slow but not to crash, and opportunities to persist. Developed markets seem especially cheap, trading at an average of 12.4 times expected 2007 earnings, compared with a 10-year average of 18.7, according to MFS. "There's still massive liquidity looking for a home, and valuations are still attractive in a number of markets," agrees Simon Davis, co-chief investment officer based in London for Putnam Investments.
Davis says that while many China-based companies have been bid too high, it's smart to look at suppliers to an economy that continues to grow 10% a year. He favors mining and natural resources outfits in Australia, including Zinifex, BHP Billiton (BHP), and Rio Tinto (RTP), which is dual headquartered in Melbourne and London.
The likely losers?
Bessemer's Stern cautions investors to stay away from housing-related stocks such as homebuilders, construction companies, and savings and loans. Although it may be tempting to think that there are bargains among them, he says "the profits they've posted in the last couple of years exaggerate their long-term earnings potential."
Profit margins at small regional banks will keep being squeezed by higher short-term interest rates. And the pressure on companies to use their free cash to buy back shares and issue dividends rather than pay down debt doesn't bode well for high-grade corporate bonds.
The biggest risk to investors: inattention. Yardeni, who predicted the strong stock market of 2006, says the S&P could reach 1600 by midyear, a 13% gain, which will get investors worried about higher interest rates. And the ensuing sell-off, he says, will offer opportunity once again.
By Mara Der Hovanesian
By BusinessWeek Online

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