Jim Cramer Blog

The Dow closed up 51 points and the S&P 500 finished up 6 points. Crude oil is closing in on $100 as we near Thanksgiving. John Kilduff, an analyst at MF Global, joined the show to discuss his take on oil. He predicts the top on crude could be in area of $108 to $110. Adami favors Chevron (CVX), which he feels is cheaper then ExxonMobil (XOM). He advises looking at refiners like Tesoro (TSO) here. Finerman owns Tesoro and she is also looking at buying ConocoPhillips (COP).
Regional airlines are benefiting from the delays and congestion at larger airports. Airlines like Midwest (MEH) and Allegiant (ALGT) are benefiting from this trend. Adami says the way to play this trend is to buy the private jet makers like Textron (TXT), General Dynamics (GD), Embrear (ERJ) and Honeywell (HON).
For Defensive stocks Najarian likes Merck (MRK), Genentech (DNA) and Biogen (BIIB). However, Finerman would get defensive with names like Altria (MO) and Kraft (KFT). Adami also recommends Altria, Unilever (UL) and Procter & Gamble (PG).
Word on the Street
Target (TGT) reported a 4.4% fall in profits.
Whole Foods Market (WFMI) reported a decline in fourth-quarter profits, but sales top Wall Street estimates.
Google (GOOG) trades up 4% after Credit Suisse raised their price target to $900. Najarian believes names like Research In Motion (RIMM), Google and Apple (AAPL) are starting to show strength again. He would look to get back into these stocks around these levels. Adami prefers Microsoft (MSFT).
Najarian would keep an eye on ISIS Pharmaceuticals (ISIS) and Sangamo Biosciences (SGMO).
Pops & Drops
Pops - Barnes & Noble (BKS) traded up 13% after reporting higher internet sales.
Exxon (XOM) traded up 4% after UBS upgraded the stock.
Kraft (KFT) traded up 2%.
Utilities EFT (XLU) traded up 1%.
Drops - Office Depot (ODP) fell 7% after reporting a 9% decline in profits.
Echostar (DISH) fell 7%
Ericsson (ERIC) fell 12%
Hovnanian (HOV) fell 9%.
GameStop (GME) fell 4% after the video game maker missed analyst estimates.
Saks (SKS) fell 2% after missing estimates.
Final Trade
Macke likes the price action in Microsoft (MSFT).
Adami recommends Freeport McMorRan (FCX).
Finerman says to short the iShares Dow Jones US Real Estate ETF (IYR).
Najarian would purchase Pulte Homes (PHM) for a short term buy.

Labels: ALGT, BIIB, CNBC, CNBC's Fast Money, COP, CVX, erj, Fast Money, GD, GOOG, HON, MEH, MRK, PG, TGT, TSO, TXT, UL, WFMI, XOM

Allegiant Travel Co. (NasdaqGM:ALGT - News) was initiated with a buy rating at Merrill Lynch. The firm set a 12-month price target on the stock of $36. Bear Stearns also began coverage of the company, starting with a peer perform rating.
Amphenol Corp. (NYSE:APH - News) reported fourth-quarter earnings of $78.4 million, or 85 cents a share, up from a year-ago profit of $55.8 million, or 61 cents a share. The latest results reflect a benefit of 2 cents a share related to a reduction in the company's effective tax rate as well as stock option expense of 2 cents a share. Sales rose in the three months ended Dec. 31 to $659.4 million from $508.1 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 81 cents a share in the December period on revenue of $649.3 million. Looking ahead, the Wallingford, Conn., maker of electrical and optical connector products forecast earnings of 80 to 82 cents a share for the first quarter on revenue of between $635 million and $645 million. It sees a profit of $3.45 to $3.55 a share for the full year on revenue of between $2.65 billion and $2.71 billion. The company also said it's planning a two-for-one stock split, payable on March 30 to shareholders of record on March 16.
ASML Holdings (NasdaqGS:ASML - News) was upgraded to buy from sell at ABN-Amro following a strong fourth-quarter financial report. The company was also upgraded to hold from reduce at Fortis Bank. The microchip equipment maker posted a profit of 205.5 million euros for the quarter, up from 51.6 million euros a year earlier.
Bill Barrett Corp. (NYSE:BBG - News) was initiated with a buy rating at A.G. Edwards. The firm set a price target of $35.
Bridgford Foods (NasdaqGM:BRID - News) shares jumped after the Anaheim, Calif.-based company reported fourth-quarter net earnings of $1.08 million, or 11 cents a share. In the comparable period last year, the company posted a net loss of $340,000, or 3 cents a share. Revenue in the 17 weeks ended Nov. 3 rose to $43.2 million from $41.9 million. The comparable period last year had 16 weeks, the company said.
CVS Corp. (NYSE:CVS - News) and Caremark Rx Inc. (NYSE:CMX - News) said qualified Caremark Rx Inc. shareholders will receive a one-time cash dividend of $2 per share after the proposed merger between the companies closes. The companies will also retire 150 million shares of the new company after the deal closes.
Flow International (NasdaqGM:FLOW - News) closed its previously disclosed audit committee probe of allegations that certain members of Flow Asia intentionally and inappropriately recognized certain revenues in fiscal 2007 that should have been recorded in fiscal 2006. As a result, the company said it expects its restated fiscal 2006 results to show an increase to revenue of about $2 million, with a net after tax increase to net income of about $2 million.
HealthSpring (NYSE:HS - News) said it expects earnings of $1.55 to $1.65 a share for fiscal 2007 on revenue of between $1.5 billion and $1.6 billion. The current average estimate of analysts polled by Thomson First Call is for a profit of 34 cents a share in the December period. The Nashville, Tenn., managed care company anticipates its Medicare Advantage membership to be in the range of 130,000 to 135,000 by the end of 2007, up from 115,000 at the close of 2006.
Investors Financial Services (NasdaqGS:IFIN - News) was upgraded to market perform from underperform at Ryan Beck & Co.
Lennar Corp. (NYSE:LEN - News), the Miami homebuilder, swung to a fourth-quarter loss from a year-earlier profit on 15% lower revenue. For the quarter ended Nov. 30, Lennar posted a loss of $195.6 million, or $1.24 a share, compared with net income of $581.2 million, or $3.54, in the year-earlier period. Revenue fell to $4.27 billion from $5.03 billion. A survey of analysts by Thomson First Call produced consensus estimates of a loss of $1.11 on revenue of $4.17 billion.
National Financial Partners Corp. (NYSE:NFP - News) said it expects its fourth-quarter per-share earnings "will be broadly consistent" with the consensus analyst estimate. "This view is consistent with the growth of NFP's firms, acquisition activity, and the challenging life insurance underwriting environment," the company said in a statement.
Neurocrine Biosciences Inc. (NasdaqGS:NBIX - News) was upgraded to overweight from equal weight at Lehman Bros. The firm also boosted its price target on the stock to $18 from $8.
Parker-Hannifin Corp. (NYSE:PH - News) reported fiscal second-quarter earnings of $193 million, or $1.64 a share, up from a year-ago profit of $129 million, or $1.07 a share. The latest results reflect a benefit of 9 cents a share from renewal of a federal tax credit for increasing research activities. Sales rose in the three months ended Dec. 31 to $2.51 billion from $2.16 billion in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of $1.40 a share on sales of $2.45 billion in the December period. The Cleveland-based maker of motion and control technology products attributed its profit increase in the second quarter to the strong performance of its Industrial International and Aerospace business segments. Looking ahead, Parker-Hannifin lifted its outlook for the full year to earnings from continuing operations of $6.35 to $6.75 per share from its prior projection of $6.05 to $6.45 a share. Wall Street's current consensus estimate for the year is for a profit of $6.38 a share.
Progressive Corp. (NYSE:PGR - News) reported net income of $138.9 million, or 18 cents a share, for the month of December, up from a year-ago equivalent profit of $122.9 million, or 15 cents a share. For the quarter ended Dec. 31, the Mayfield Village, Ohio-based insurance provider said it earned $400.9 million, or 53 cents a share, up from last year's earnings of $281.6 million, or 35 cents a share. The average estimate of analysts polled by Thomson First Call was for a profit of 50 cents a share in the December quarter.
SPX Corp. (NYSE:SPW - News) said it expects earnings from continuing operations of $3.80 to $3.95 a share for fiscal 2007 on revenue of about $4.7 billion. The Charlotte, N.C., maker of flow technology, test and measurement products said it expects the primary drivers for its profit growth in 2007, estimated at between 26% and 31% from 2006's target, to be continued strength across all of its business segments and a reduced tax rate. The current average estimate of analysts polled by Thomson First Call is for a profit of $3.59 a share in fiscal 2007 on revenue of $4.59 billion. SPX sees free cash flow from continuing operations of between $240 million and $280 million for fiscal 2007.
Shares of Star Scientific (NasdaqGM:STSI - News) soared after the company said decisions on three pending summary-judgment motions in its patent-infringement lawsuit against R.J. Reynolds Tobacco Co., a unit of Reynolds American (NYSE:RAI - News), will be available on the court's Web site on Friday. The Chester, Va., developer of technologies designed to reduce tobacco toxins said in a filing with the Securities and Exchange Commission that Judge Marvin J. Garbis of the U.S. District Court for the District of Maryland provided notice of his rulings on the motions last week. Star Scientific filed a patent-infringement suit in 2001 alleging that Reynolds had violated the company's process to reduce the level of nitrosamines - a carcinogenic toxin - in tobacco.
State Street Corp. (NYSE:STT - News) said fourth-quarter net income for the three months ended Dec. 31 rose 17% to $291 million, or 86 cents a share, from $249 million, or 74 cents a share in the year-ago period. The Boston-based lender said revenue increased 15% to $1.62 billion. Analysts surveyed by Thomson First Call forecast earnings of 84 cents a share and revenue of $1.56 billion, on average. Expenses rose 13% to $1.18 billion from $1.04 billion. Return on shareholders' equity was flat at 15.9%. For 2007, State Street said it plans to target the upper end of its long-term financial goals of revenue growth of 8% to 12%, earnings per share growth of 10% to 15%, and return on equity of 14% to 17%.
Sterling Construction Co. (NasdaqGS:STRL - News) was upgraded to buy from hold at Morgan Joseph & Co.
Stewart Enterprises (NasdaqGS:STEI - News) reported fourth-quarter earnings from continuing operations of $10.7 million, or 10 cents a share, up from a year-ago loss of $2 million, or 2 cents a share. Excluding items, the New Orleans funeral and cemetery services provider posted a profit from continuing operations of $9.2 million, or 9 cents a share in the latest quarter. Revenue rose in the three-month period to $131.2 million from $114.1 million last year. The average estimate of analysts polled by Thomson First Call was for a profit of 6 cents a share in the October period.
TSYS (NYSE:TSS - News) said fourth-quarter net earnings rose to $87.1 million, or 44 cents a share, from $49.7 million, or 25 cents a share, in the same period last year, on the back of higher revenue. The company now sees 2007 net income growth falling between 3% and 5% vs. 2006, down from its prior outlook of a 9% to 7%.
Xoma Ltd. (NasdaqGM:XOMA - News) and Schering-Plough (NYSE:SGP - News) expanded their collaboration agreement, with Schering-Plough exercising its right to initiate additional development programs. Xoma said it would receive upfront payments for each additional program, as well as research funding and royalties on any sales of the products.
Published By Michael Baron

Labels: ALGT, APH, ASML, BBG, BRID, CMX, CVS, FLOW, IFIN, LEN, NBIX, NFP, PGR, PH, RAI, SGP, SPW, STSI, XOMA

Wells Fargo (WFC) looks like a good play right now on the bank rally, Jim Cramer said Monday on CNBC's Stop Trading! segment.
Cramer said the bank index is at a 52-week high and other big-name financial stocks have rallied sharply this fall. But so far Wells Fargo has been left behind, perhaps because investors are concerned about its exposure to the risky subprime lending business.
Cramer said it's OK to buy Wells here because the San Francisco-based institution "really knows how to handle itself." He said worries about the effect of subprime mortgages on big, robust lenders like Wells has been overstated, in that loan-loss "reserves haven't been tapped as much as you'd think." Cramer added that he wouldn't short subprime lenders because if the Fed cuts interest rates, the stocks will double.
Cramer also likes Akamai (AKAM), which he said is currently "the gold standard of high growth" in the technology business. He said the Web site enabler "reminds me of Cisco (CSCO)" when it came public, back in the early 1990s.
Cramer said he likes recent airline IPO Allegiant (ALGT), but would pass on recent Nasdaq 100 addition Level 3 (LVLT).
Published By TheStreet.com

Labels: AKAM, ALGT, CSCO, Jim Cramer, Jim Cramer's Stop Trading, LVLT, WFC

Regional airline Allegiant Travel Co. took off on its first day of trading Friday, closing 39 percent higher than its IPO price on the Nasdaq Stock Market.
Allegiant Travel closed at $25.10 a share, up from its IPO price of $18. It had opened at $24 a share on Friday morning.
The Las Vegas-based airline sold 5 million shares at a price above its expected $15 to $17 range, which was set by underwriters.
Allegiant focuses its plane routes on leisure travelers in 45 small American cities, connecting them nonstop to vacation destinations in Las Vegas, Orlando and Tampa-St. Petersburg. It's adding three more small originating cities to its routes in the coming months, and has identified 52 additional airports in the United States and Canada that may fit its growth plan.
Unlike many passenger carriers, Allegiant doesn't sell tickets through Web sites like Expedia or travel agency services like Sabre, for which it would have to pay fees; instead, customers must buy tickets at its counters or on its own Web site.

Labels: ALGT, Allegiant Travel Co.

Aegean Marine Petroleum Network (NYSE:ANW - News) shares surged Friday in the company's stock market debut.
Allegiant Travel (NASDAQ:ALGT - News) shares jumped in the company's initial public offering.
Arena Pharmaceuticals (NASDAQ:ARNA - News) priced a public offering of 11.5 million common shares at $13.21 each, the stock's closing price on Thursday. The deal includes an over-allotment option for the sale of an additional 1.725 million shares. San Diego-based Arena said CIBC World Markets served as the sole book-running manager in the offering.
Atwood Oceanics Inc. (NYSE:ATW - News) reported fourth-quarter net earnings of $23.2 million, or 74 cents a share, compared with $6.66 million, or 21 cents a share, in the same period last year, as revenue jumped.
Cascade Corp. (NYSE:CAE - News) said third-quarter net income rose, as revenue gained, to $12.3 million, or 94 cents a share, from $10.8 million, or 84 cents a share, during the same period in the prior year. Also, the company is increasing its revolver to $125 million from $25 million to fund potential acquisitions and to provide short-term funding for the share repurchase program.
Shares of Citigroup (NYSE:C - News) traded at their highest level since April 2004 on Friday. In a research note, analysts at Lehman Bros. said they expect the company's management to provide an outlook for positive operating leverage and improving net interest margins in 2007 when it holds an investor presentation next weeks. The analysts said they do not expect the company to announce any plans to break it up.
Credence Systems (NASDAQ:CMOS - News) said the fourth-quarter net loss narrowed, as operating expenses fell, to $1.94 million, or 2 cents a share, from a net loss of $22.5 million, or 23 cents a share, during the same period in the prior year.
Esterline Technologies Corp. (NYSE:ESL - News) reported fourth-quarter net earnings of $18.4 million, or 71 cents a share, up 19% from $15.4 million, or 60 cents a share, during the year-ago period. The company also said it now expects fiscal 2007 per-earnings of $2.45 to $2.60, up from its previous outlook of $2.40 to $2.60, boosted by record backlogs and new products coming to market.
Shares of Forgent Networks (NASDAQ:FORG - News) soared after the Austin, Texas-based technology licensing company posted a profit for its fiscal first quarter due to a doubling of revenue. The company, which also provides office administration software, earned $2.7 million, or 11 cents a share, for the three months ended Oct. 31 on revenue of $9.1 million. In the same period a year earlier, Forgent lost $300,000, or a penny per share, on revenue of $4.4 million. Looking ahead, the company said it expects to continue to generate intellectual property licensing revenue in fiscal 2007.
Shares of Hansen Natural Corp. (NASDAQ:HANS - News) surged after the Corona, Calif., beverage company disclosed it's recorded more than $500 million in gross sales for its Monster Energy drinks since their launch on January 1. The company said it reached the milestone in November.
Harsco Corp. (NYSE:HSC - News) reaffirmed its outlook for earnings from continuing operations of $4.49 to $4.51 a share in 2006 on revenue of more than $3.3 billion. The company also forecast earnings from continuing operations of $5.05 to $5.15 a share in 2007 with sales projected to grow more than 7%. The current average estimates of analysts polled by Thomson First Call are for profits of $4.51 a share in 2006 and $5.06 a share in 2007.
Heelys Inc. (NASDAQ:HLYS - News) shares jumped in one of the top IPO performances of the year.
Ingersoll-Rand Co. (NYSE:IR - News) said it has authorized the buyback of up to $2 billion of its Class A shares.
Investment Technology Group (NYSE:ITG - News) said November average daily volume rose to 175 million shares from 119 million shares a year earlier, and up from 150 million shares in October. Total U.S. volume was 3.7 billion shares vs. last year's 2.5 billion shares and last month's 3.3 billion shares.
Mace Security International (NASDAQ:MACE - News) agreed to sell its Arizona car wash operations for $19.3 million cash. Mace, Mount Laurel, N.J., said the sale includes 12 car washes and represents about $10 million of Mace's total revenue of $68 million in 2005. Nine of the car washes are owned and three are leased.
Millennium Pharmaceuticals Inc. (NASDAQ:MLNM - News) said the Food and Drug Administration has granted full approval of Velcade for the treatment of patients with mantle cell lymphoma who have received at least one prior therapy. MCL is a form of non-Hodgkin's lymphoma which has a U.S. prevalence of 10,000 patients. Cambridge, Mass.-based Millennium said the approval marks the first indication for Velcade in lymphoma, the most common blood cancer.
Nanometrics Inc. (NASDAQ:NANO - News) said it has received a favorable Markman decision in the patent infringement case brought by Nova Measuring Instruments Ltd. (NASDAQ:NVMI - News).
Online Resources Corp. (NASDAQ:ORCC - News) said it sees a first-quarter 2007 per-share net loss of 33 to 35 cents on revenue of $30 million to $31.5 million. Pro forma, or "core net income," for the quarter is expected to range from a loss of a penny to a profit of a penny.
QMed (NASDAQ:QMED - News) shares rose after the Eatontown, N.J.-based provider of information management systems to health plans said it has reached an agreement with Alere Medical Inc. to settle their litigation and arbitration. Financial terms of the settlement were not disclosed, although QMed said the agreement calls for Alere to pay a "low seven-figure dollar amount," which is to be received by Dec. 13.
Shares of PriceSmart Inc. (NASDAQ:PSMT - News) advanced after the San Diego, Calif., warehouse club retailer said its same-store sales jumped 18.5% in November. Total sales for November rose 22.9% to $69.7 million from $56.7 million in the same period a year earlier.
Verifone Holdings Inc. (NYSE:PAY - News) reported fourth-quarter net earnings of $13.9 million, or 20 cents a share, compared with $12.1 million, or 18 cents a share, in the same period last year, on the back of strong revenue from international business.
By Michael Baron of MarketWatch

Labels: ALGT, ANW, ARNA, ATW, C, CAE, CMOS, ESL, FORG, HANS, HLYS, Hot Stocks, HSC, IR, MACE, MLNM, NANO, PAY