Jim Cramer Blog

Consolidation in key industries may help investors in this oversold market, Jim Cramer said on CNBC's "Stop Trading!" segment Thursday.
Cramer commented on the overall economic condition, prodded by Federal Reserve Chairman Ben Bernanke's speech today: "We are at the precipice. ... We need shotgun marriages."
Bank of America (BAC) helped the odds of one such marriage today by announcing a deal with beleaguered mortgage lender Countrywide (CFC).
"This is what happens at the bottom," Cramer said. "I just don't know why the Fed would say you got to pay a premium for Countrywide." He added that "They don't want Countrywide to go out of business, because the servicing thing would play havoc." Cramer believes that Wachovia (WB) and Wells Fargo (WFC) will respond well to a rate cut: "These stocks go down every day."
Berkshire Hathaway's (BRKA) overtures to bond insurers Ambac (ABK) and MBIA (MBI) yesterday also indicated there may be hope in the troubled financial markets, Cramer said.
Airline stocks were treated to a similar rebound today, Cramer noted. Calling American Airlines operator AMR (AMR) "worth a lot," Cramer said that in a month, he will be recommending the group.
Cramer continues to recommend the agricultural sector. "I love the ag guys because ag is so good," he said. "That Mosaic (MOS) was down yesterday was just the shorts pressing their bets again."
Published By TheStreet.com

Labels: ABK, AMR, BAC, BRKA, CFC, Jim Cramer, MBI, MOS, Stop Trading, WB, WFC

Stocks rose out of the gate, but were unable to hold gains as profit takers emerged after last week's solid market gains. Leading the decliners were banks, while tech shares held up relatively well. At the close, the Dow Jones lost -61 points, while the Nasdaq lost -3 points and the S&P fell -8 points. Over in the energy patch, crude eased -67 cents to finish at $80.95 a barrel.
Factory workers at General Motors (NYSE: GM - News) walked off the job on Monday after a contract negotiation deadline passed. The company failed to reach a new labor agreement with the United Auto Workers (UAW). GM is seeking to cut labor and healthcare costs after a string of billion dollar losses the past several years has left the automobile giant looking for ways to cut expenses. GM shares declined -1.2%.
Mining giant BHP Billiton (NYSE: BHP - News) saw its shares rise 4.7% after it was reported that the company is close to announcing that it has uncovered what is potentially the largest gold resource in the world at its Olympic Dam mine in Southern Australia. The report was made public by the Herald Sun.
In deal news, Abu Dhabi National Energy Company agreed to buy Canada's PrimeWest Energy Trust (NYSE: PWI - News) for $2.4 billion plus the assumption of debt. Today's deal marks the sixth acquisition for Saudi based Abu Dhabi since November. The deal, valued at $4 billion, represents a premium of 34% over where PrimeWest shares ended on Friday. The deal would give Abu Dhabi National daily production of more than 61,000 barrels of oil and gas equivalent.
Elsewhere, Australian-based Sims Group agreed to buy Metal Management (NYSE: MM - News) for $1.6 billion in stock to create the world's largest publicly traded scrap-metal recycler. The deal is valued at an 18% premium to where Metal Managements shares ended last week. The combined company would have total pro forma sales of $6.8 billion.
In tech news, shares of ValueClick (NYSE: VCLK - News) rose 7.4% after rumors circulated that the marketing company may be a takeover target. Elsewhere, EMC (NYSE: EMC - News) notched a 52-week high after several Wall Street analysts offered upbeat views of the storage maker, noting that the stock was a "buy" due to EMC's large stake in virtualization maker VMware (NYSE: VMW - News), which it spun off as an IPO about two months ago.
In other corporate news, commercial airline giant AMR (NYSE: AMR - News) tumbled -14.4% after the company reported in a regulatory filing that it expects passenger revenue from its mainline and regional carries to rise in a range of 3.7-4.7%. The rise is below many of its rivals.
By Mike Conte, BullMarket.com

Labels: AMR, BHP, EMC, GM, MM, PWI, VCLK, VMW

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.
Mastercard Inc. Oct 180 Calls (NYSE:MA - News). MA's PowerRating is 7.
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.
Chipotle Mexican Grill, Inc. Sep 90 Puts (NYSE:CMG - News). CMG's PowerRating is 3.
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.
American International Group, Inc. Aug 65 Calls (NYSE:AIG - News). AIG's 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.
Goldman Sachs Sep 160 Puts (NYSE:GS - News). GS' PowerRating is 5.
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.
Unilever (NYSE:UN - News). UN's PowerRating is 6.
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.
Myriad Genetics Inc. (NasdaqGS:MYGN - News). MYGN's PowerRating is 6.
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.
AMR Corp. (NYSE:AMR - News). AMR's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AIG, AMR, CMG, GS, MA, MYGN, stock options, UN

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.

USANA Health Sciences July 45 Calls (NasdaqGS:USNA). USNA's PowerRating is 4.
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.
Celgene Jul 60 Puts (NasdaqGS:CELG). CELG' 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.
Google Inc. July 550 Calls (NasdaqGS:GOOG). GOOG's PowerRating is 6.
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.
Research In Motion July 150 Puts (NasdaqGS:RIMM). RIMM's PowerRating is 4.
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.
Applera Corp-Applied Biosystems Group (NYSE:ABI). ABI's PowerRating is 4.
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.
Utilities Select Sector SPDR (AMEX:XLU). XLU's PowerRating is 6.
AMR Corp. (NYSE:AMR). AMR's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: ABI, AMR, CELG, GOOG, Google Inc., RIMM, stock options, USNA, XLU

Ameren Corp. (NYSE:AEE - News) reported fourth-quarter earnings of $61 million, or 30 cents a share, up from a year-ago profit of $20 million, or 10 cents a share. The latest results included storm-related costs of $28 million, or 13 cents a share. Revenue slid in the latest three months to $1.62 billion from $1.7 billion in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 39 cents a share in the December period. Looking ahead, the St. Louis-based electricity and natural gas utility operator said it expects non-GAAP (generally accepted accounting principles) earnings of $3.15 to $3.60 a share for fiscal 2007. Wall Street's current consensus estimate is for a profit of $3.85 a share for 2007.
AMR Corp. (NYSE:AMR - News) was downgraded to neutral from buy at Goldman Sachs.
Baidu.com Inc. (NasdaqGM:BIDU - News) said fourth-quarter net income rose, as revenue gained, to 122.8 million yuan ($15.8 million), or Y3.54 per share (46 U.S. cents), from Y$24.5 million, or Y0.71 per share, during the same period in the prior year.
Baker Hughes Inc. (NYSE:BHI - News) said that fourth-quarter net income rose to $326.2 million, or $1.02 a share, from $257.9 million, or 75 cents a share, a year ago, after charges related to a settlement deal with the Securities and Exchange Commission and the Department of Justice amounted to 12 cents a share, or $46 million. Analysts had been expecting the drilling and oil services provider to post earnings of $1.19 a share according to data compiled by Thomson Financial. Sales rose 23% to $2.5 billion. Baker Hughes said that it's expecting revenue outside North America to rise by between 17% and 19% in 2007.
Biogen Idec Inc. (NasdaqGS:BIIB - News) said Thursday its fourth-quarter net income more than doubled to $108.6 million, or 32 cents a share, from $55.6 million, or 16 cents, a year earlier. The biotechnology company said Thursday it earned 53 cents a share before items for the latest fourth quarter. Fourth quarter revenue increased 12% to $708.3 million from $632.9 million, driven primarily by sales of its Avonex multiple sclerosis drug and its Rituxan rheumatoid arthritis treatment. Analysts surveyed by Thomson Financial, on average, expected the San Diego company to earn 55 cents a share on revenue of $714.2 million for the final quarter of 2006. For 2007, Biogen Idec expects net income of $1.69 a share to $1.84 a share. It also expects to earn $2.50 to $2.65 a share before items on revenue growth in the mid-teens on a percentage basis.
Bonso Electronics (NasdaqGM:BNSO - News) reported a loss of $630,000, or 11 cents a share, for its fiscal third quarter ended Dec. 31, wider than a loss of $76,000, or a penny per share, in the year-ago period.
Cimarex Energy (NYSE:XEC - News) said fourth-quarter net income dropped 65% to $58.7 million, or 70 cents a share, on a 41% decline in gas prices and a 2% drop in oil prices. It also took $1.4 million, or a penny a share, in repair costs from hurricanes Katrina and Rita. Analysts polled by Thomson Financial expected earnings of 71 cents a share. Oil and gas production averaged 441 million cubic feet from 431 million Mcfe a day in the year-ago quarter. It plans to spend between $800 million and $1 billion on capital spending for 2007 and sees first-quarter production between 435 and 445 million Mcfe a day.
Equifax Inc. (NYSE:EFX - News) agreed to acquire Talx Corp. (NasdaqGS:TALX - News) in a stock and cash transaction valued at $1.4 billion, including the assumption of debt. Equifax, an Atlanta-based information technology company, said the acquisition is aligned with the company's long-term growth strategy of expanding into new markets and acquiring proprietary data sources.
Evergreen Solar (NasdaqGM:ESLR - News) said its fourth-quarter net loss widened to $5.47 million, or 8 cents a share, from $5.04 million, or 8 cents a share, in the same period last year. The Marlboro, Mass.-based maker of solar power products said revenue more than doubled to $32.4 million from $11.6 million. Analysts polled by Thomson First Call had expected a per-share loss of 8 cents, on revenue of $34 million. For the first quarter, Evergreen sees a net loss of $7 million to $7.5 million.
EXCO Resources Inc. (NYSE:XCO - News) said it is proposing to offer up to $2 billion in preferred stock. The offer includes the private placement of up to $400 million of 6% cumulative convertible perpetual preferred stock, and $1.6 billion of 11% cumulative preferred stock to institutional investors.
Favrille (NasdaqGM:FVRL - News) said that its fourth-quarter net profit widened to $10.2 million, or 35 cents a share, from $9.6 million, or 48 cents, a year ago. Analysts were expecting the company to post earnings of 39 cents a share, according to data compiled by Thomson Financial. Research and development costs rose to $7.7 million, from $7.5 million at the same point a year ago primarily due to extra personnel and non-cash expenses. The company said that it expects total operating expenses for 2007 in a range of $48 million to $52 million, and said it believes that its cash should be sufficient to fund operations for at least 12 months.
Foundation Coal Holdings (NYSE:FCL - News) said it lost $21.9 million, or 48 cents a share, in the fourth quarter, hit by charges related to its Wabash mine and other costs. The company earned $28.6 million, or 61 cents a share, in the same period a year ago. Excluding charges, the company would have earned $2.2 million, or 5 cents a share, in the quarter. The average estimate of analysts polled by Thomson Financial was for earnings of 23 cents a share. Coal sales revenue rose to $345.9 million from $334.4 million. Thomson Financial was looking for revenue of $343.8 million. The company said it expects revenue of $1.49 to $1.58 billion in 2007 and earnings of 90 cents to $1.50 a share. Thomson is looking for revenue of $1.45 billion on earnings of $2.19 a share.
Granite Construction (NYSE:GVA - News) shares fell after the company unveiled plans for a restructuring in order to improve profits at its Heavy Construction Division projects. The company also said it expects revenue from the Heavy Construction Division to be about $800 million in 2007, down from a total of $1.1 billion in 2006. Granite also posted a provide of $600,000, or 2 cents a share, for the fourth quarter, reflecting a $18 million goodwill write-down. In the year-ago period, the company earned $35.8 million, or 86 cents a share.
Hanover Compressor Co. (NYSE:HC - News) said that it swung to a fourth-quarter net profit of $30.1 million, or 28 cents a share. The company said that it returned to profitability due to favorable markets and a focus of capital return. The results also included a $10.2 million tax benefit. Analysts had been expecting the company to report earnings of 14 cents a share. Last year, the gas compression services company reported a net loss of $4.2 million, or 4 cents a share. Revenue rose 15% to $101.5 million.
Heartland Payment Systems (NYSE:HPY - News) said it expects earnings of 16 to 18 cents a share for the first quarter. The average estimate of analysts polled by Thomson Financial is for a profit of 20 cents a share in the March period.
Hornbeck Offshore (NYSE:HOS - News) said fourth-quarter net income rose to $17 million, or 64 cents a share, from $15.1 million, or 55 cents a share, with revenue up 14% to $65 million. Excluding the impact of FAS123R accounting rules, it would've earned 66 cents a share. Analysts polled by Thomson Financial expected earnings of 59 cents a share. It expects 2007 earnings between $2.19 and $2.68 a share and first-quarter earnings between 42 and 55 cents a share. Analysts, on average, expected 2007 earnings of $2.55 a share.
Lifetime Fitness (NYSE:LTM - News) said it expects earnings of $1.71 to $1.74 a share for fiscal 2007 on revenue of between $640 million and $650 million. Wall Street's current consensus estimate is for a profit of $1.72 a share on revenue of $646 million for the year from the Eden Prairie, Minn., fitness center operator.
Lufkin Industries Inc. (NasdaqGS:LUFK - News) said fourth-quarter net income for the three months ended Dec. 31 rose to $23 million, or $1.52 a share, from $15.4 million, or $1.03 a share in the year-ago period. Operating income increased to $28.2 million from $23.7 million. Revenue rose to $165.6 million from $145.4 million. Two analysts surveyed by Thomson Financial forecast earnings of $1.21 a share, on average. The seller of pumps for oil extraction expects first-quarter profit of 95 cents a share to $1.15 a share, compared with $1.01 a share last year.
Olympic Steel Inc. (NasdaqGM:ZEUS - News) reported fourth-quarter earnings of $3.8 million, or 35 cents a share, down from a year-ago profit of $7.3 million, or 70 cents a share. Sales rose 10.4% in the latest three months to $226.1 million from $204.8 million in the same period a year earlier. The average estimate of Thomson Financial was for a profit of 39 cents a share in the December period. "High fourth quarter service center inventories, as reflected by the Metals Service Center Institute, clearly caused a deteriorating market at yearend, said Michael Siegal, the company's chairman and CEO. "We believe that situation will be remediated by the end of the first quarter of 2007, as demand is increasing, imports are being significantly reduced, input costs (such as scrap) are on the rise again, and domestic steel production appears in control."

Published By MarketWatch

Labels: AEE, AMR, BHI, BIDU, BIIB, BNSO, EFX, ESLR, FCL, FVRL, GVA, HC, HOS, HPY, LTM, LUFK, TALX, XCO, XEC, ZEUS

Labels: AGN, AMR, ATI, CAL, CFC, HP, Jim Cramer, Lightning Round, Mad Money, NEW, RIG, ZMH

The parent of American Airlines, the nation's largest carrier, said Wednesday it earned a narrow profit in the fourth quarter, defying Wall Street's prediction of a small loss by overcoming slightly disappointing revenue with cost-cutting. The company's shares hit a 52-week high.
AMR Corp. also posted its first full-year profit since 2000, helped by strong demand for travel that allowed carriers to raise fares throughout the year.
Chairman and Chief Executive Gerard Arpey called the results a milestone in the company's turnaround.
AMR said it earned $17 million, or seven cents per share, in the Dec. 31 quarter compared to a loss of $600 million, or $3.46 cents per share, a year earlier, when AMR was weighed down by special charges.
Analysts expected AMR to lose 13 cents per share in the most-recent quarter.

Labels: AMR, AMR Corporation

Intel (NASDAQ:INTC - News) beat earnings estimates, announcing $0.26 EPS over an expected $0.25 EPS. INTC's PowerRating is 4.
AMR Corp (NYSE:AMR - News) is set to announce $0.03 EPS on Wednesday before the open. AMR's PowerRating is 3.
Look for Charles Schwab (NASDAQ:SCHW - News) to report $0.21 EPS before the bell Wednesday. SCHW's PowerRating is 5.
Analysts are expecting JP Morgan (NYSE:JPM - News) to announce $0.94 EPS on Wednesday morning. JPM's PowerRating is 5.
Lennar (NYSE:LEN - News) looks set to report -$1.11 EPS tomorrow before the opening bell. LEN's PowerRating is 5.
Progressive (NYSE:PGR - News) is expected to report $0.50 EPS Wednesday morning. PGR's PowerRating is 5.
Southwest Air (NYSE:LUV - News) looks to announce quarterly earnings of $0.13 EPS Wednesday. LUV's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AMR, INTC, JPM, LEN, LUV, PGR, SCHW

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Intel (NASDAQ:INTC - News) beat earnings estimates, announcing $0.26 EPS over an expected $0.25 EPS. INTC's PowerRating is 4.
AMR Corp (NYSE:AMR - News) is set to announce $0.03 EPS on Wednesday before the open. AMR's PowerRating is 3.
Look for Charles Schwab (NASDAQ:SCHW - News) to report $0.21 EPS before the bell Wednesday. SCHW's PowerRating is 5.
Analysts are expecting JP Morgan (NYSE:JPM - News) to announce $0.94 EPS on Wednesday morning. JPM's PowerRating is 5.
Lennar (NYSE:LEN - News) looks set to report -$1.11 EPS tomorrow before the opening bell. LEN's PowerRating is 5.
Progressive (NYSE:PGR - News) is expected to report $0.50 EPS Wednesday morning. PGR's PowerRating is 5.
Southwest Air (NYSE:LUV - News) looks to announce quarterly earnings of $0.13 EPS Wednesday. LUV's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AMR, Hot Stocks, INTC, JPM, LEN, LUV, PGR, SCHW

AMR Corp. (NYSE:AMR - News) shares rose after Citigroup lifted its price target on the stock to $46 from $34 as part of a larger bullish call on the airline industry. The firm also boosted targets for JetBlue (NASDAQ:JBLU - News) and Southwest Airlines (NYSE:LUV - News).
Bio-Reference Laboratories (NASDAQ:BRLI - News) was upgraded to buy from hold at Jefferies & Co. The firm also boosted its price target on the stock to $30 from $26.
CDC Corp. (NASDAQ:CHINA - News) said it expects fourth-quarter software license revenue to rise approximately 37% to $13.8 million to $14.2 million from $10.2 million a year earlier. The Chinese business software company expects to report earnings estimates for the quarter ending December by early-February, with analysts surveyed by Thomson First Call forecasting earnings of 7 cents a share, on average.
Dendreon (NASDAQ:DNDN - News) shares rose after the Food and Drug Administration has granted priority review status to the company's prostate cancer drug candidate Provenge, meaning that the agency should make a decision on whether to approve the product within six months of receiving the company's market application. Dendreon said Tuesday it expects the FDA to render its decision by May 15. A biotechnology product, Provenge is for the treatment of asymptomatic, metastatic, hormone refractory prostate cancer.
ElkCorp (NYSE:ELK - News) disclosed an amendment to its previously disclosed merger agreement with private equity firm The Carlyle Group. The revised deal calls for Carlyle to commence a tender offer to acquire all outstanding ElkCorp common shares for $40.50 each in cash on or before Thursday. The agreement, which values ElkCorp at about $1.05 billion, including the assumption of $173 million in debt, represents an increase of $2.50 per share from the $38 offer called for in the parties' original Dec. 18 agreement. ElkCorp's board is recommending that shareholders tender their stock to the Carlyle offer and reject a $40 per share cash tender offer from Building Materials Corp. of America.
Pharmacy benefits manager Express Scripts Inc. (NASDAQ:ESRX - News) said it launched its exchange offer for all outstanding shares of larger rival Caremark Rx Inc. (NYSE:CMX - News) . Under the terms of the deal, St. Louis-based Express Scripts is offering to pay Caremark shareholders $29.25 in cash and 0.426 shares of Express Scripts for each share of Caremark held. Based on closing stock prices on Jan. 12, Express Scripts said its offer has a value of $56.87 per share, or about $25 billion, and gives Caremark stockholders a 7% premium to the current value of the rival offer from drugstore operator CVS Corp. (NYSE:CVS - News). The offer from Express Scripts and withdrawal rights are scheduled to expire at midnight Eastern Standard Time on Feb. 13, subject to extension.
FairPoint Communications (NYSE:FRP - News) shares jumped after the company reached a deal with Verizon Communications (NYSE:VZ - News) to combine certain assets in less populated areas of New England. The agreement calls for Verizon to spin off certain operations in Maine, Vermont and New Hampshire and merge them with FairPoint. Verizon investors will receive 1 share of FairPoint for every 55 shares of Verizon held.
FedEx (NYSE:FDX - News) was upgraded to overweight from neutral at J.P. Morgan, citing valuation.
Genesis HealthCare Corp. (NASDAQ:GHCI - News) agreed to be acquired for $63 a share in cash by a joint venture between affiliates of Formation Capital LLC and JER Partners. The deal is valued at $1.7 billion, including the assumption of $450 million in debt, Genesis said. The company said the $63-a-share offer represents a 31% premium over its average share closing price over the past 30 days. The deal to take the company private must still be approved by shareholders. Kennett Square, Pa.-based Genesis provides healthcare and support services to the elderly.
GMH Communities Trust (NYSE:GCT - News) was upgraded to neutral from sell at Banc of America Securities on valuation.
HealthExtras (NASDAQ:HLEX - News) was upgraded to outperform from market perform at Raymond James.
Highway Holdings (NASDAQ:HIHO - News) said it's received two initial original equipment manufacturer orders from U.S. based customers. Financial terms weren't disclosed.
Infrasource Services (NYSE:IFS - News) lifted its outlook for the fourth quarter, saying it saw higher than expected revenue from the successful completion of several projects, increased customer demand for greater volumes of work and favorable weather. The Media, Pa., utility transmission network construction services provider now sees earnings of 15 to 17 cents a share for the fourth quarter on revenue of between $240 million and $250 million. Its previous outlook was for a profit of 11 to 13 cents a share on revenue ranging from $200 million and $210 million in the period.
Interpool Inc. (NYSE:IPX - News) said its board has received a $24 per share acquisition proposal from a group led by Martin Tuchman, its chief executive officer and chairman. Princeton, N.J.-based Interpool, a maker of transportation equipment, said the group includes other significant investors and an investment fund affiliated with Fortis Merchant Banking. Interpool said its board has formed a special committee to review and evaluate the proposal.
Masco (NYSE:MAS - News) was upgraded to buy from neutral at UBS.
Mercer International (NASDAQ:MERC - News) was upgraded to outperform from sector perform at RBC Capital Markets. The firm also lifted its price target on the stock to $14 from $12, citing a higher outlook for pulp prices.
Mills Corp. (NYSE:MLS - News) shares rose after current stockholder Farallon Partners said in a filing with the Securities and Exchange Commission that they've submitted a term sheet to Mills' financial advisors for a proposed acquisition of an additional $499 million worth of shares at a price of $20 each.

Labels: AMR, BRLI, CHINA, CMX, CVS, DNDN, ESRX, FDX, GCT, GHCI, HIHO, HLEX, IFS, IPX, JBLU, LUV, MAS, MERC, MLS, VZ

The background evidence of the week was somewhat mixed and of the type that could always conjure the spin doctors of Wall Street to don the bear goggles. Make no mistake about it though, a decisive shift in investor psychology opted to embrace the bull at large, with the end result fresh multi-year and all-time-highs. For the five day period S&P500 ($SPX) and NASDAQ Composite ($COMPQ) are up 1.49% to 2.82% on sure signs of investor satisfaction.Aggressively lower energy prices certainly helped market bulls this week. It’s not always the case, as the relative weakness and potential earnings concerns over the ‘profit-engine’ of the energy complex (XLE, OIH) need to be ignored or used as the proverbial sacrifice fly, so that other sectors may prosper. That was the case this past week as Black Gold slid precipitously to two year lows. At the same time, the West Texas ETF (USO) fell by -9% to fresh all-time-lows of 43.50 before closing off -6.69% at 44.63. Abnormally warm weather in the northeast, continued bearish build ups of inventories, further not-so-smart institutional monies rotations and trader skepticism over OPEC cuts all played a part in the action. Meanwhile, concern over the ‘price drilling’ being an actual harbinger of a weaker economy dissipated and lost favor with a giddy Wall Street and other data saying something else entirely. After a couple warnings curveballs thrown in the week prior, the official start to the Q4 earnings season was a bullish catalyst for the market. While it’s still too early to determine any type of trend, lowered expectations for Corporate America and a cautious investor mood have been countered by strong results and outlooks from the likes of Alcoa (AA) and Genentech (DNA). While the 22% growth seen in the third-quarter isn’t likely to be matched, bullish reactions to upside surprises thus far do suggest sufficient pessimism coming into the period. Now all Wall Street needs are 450-plus reports from the S&P500, to see if they’ve got it right.One place Wall Street seems certain it has it right is a rotation into large cap technology. An outsized 2.82% gainer and a second straight week of outperformance is a testament to that belief of value found, four plus years into the broader market’s Bull Run. However, as a further testament to a market still composed of stocks and obviously not tolerant of disappointments: sales warnings out of veritable tech names such as Tellabs (TLAB), SAP (SAP) and Advanced Micro (AMD) were punished by investors. While the initial broader market concern / impact was shaken off each time and ultimately favored the “Buy, Buy, Buy!” routine, some canaries outside of the coal / energy mine have been spotted and possibly worth listening too. It also looks like Wall Street is in the mood to embrace strength outside of the corporate kind. Economic data this week contained potentially damaging information for bulls insistent of rate cuts. However, when all was said and done, the market reacted favorably to a stronger economy and one not in need of the Fed easing monetary policy. Friday’s much stronger-than-expected .9% retail sales increase solidified traders shift towards relief over an economy that’s showing more signs of bottoming without further intervention. In fact, some analysts feel the data could point to an upward revision for the Q4 GDP. The bond market is listening as well. Fed funds futures are pricing in almost no chance of a cut before May and treasury yields soared to their best levels in more than two months. The widely followed 10-Year closed at 4.77% and up 13 basis points on the week, but below the key 5% level and a point where another kind of market intervention might come into play.ON TAP THIS WEEKInvestors received an equal dose of high profile surprises and warnings last week, but all told the total count of less than a handful makes for a clean slate as earnings intensify this week. The holiday shortened work-week will have plenty of high-profile names in a myriad of industry groups. Currently, earnings expectations are riding low as Wall Street makes provisions for the end of thirteen quarters of double digit growth from the S&P500. That’s likely to happen, as much of that success was directly linked to the oil patch, which has lost more than a bit of its energy mojo. Financials, also a very heavily weighted group, will likely surprise to the upside as deal making and the capital markets have been benevolent overall. It’s anticipated though that much of what the market does in the coming weeks will be riding heavily on the current rotation into large cap tech and the NASDAQ. Investors won’t want to see further disappointments from that group with so much money now obviously betting on a confirmation of those actions. As mentioned prior, expectations for the Fed cutting rates before May are down to a near zero vote of confidence. The economic data of late has shown both a tightening labor market and enough resilience in the manufactured slowdown to keep interest rates on hold and possibly even nudged up if conditions persist. The current environment is taking place as well, in a market that’s seen hard declines in physical prices of underlying commodities. That means that should those prices firm, an additional force could also be at work, as to keep a rate cut out of the equation for 2007. The week is full of fresh data on both the inflation and growth fronts, so economic watchdogs should make sure to keep note of what’s on tap by looking at the schedule below. What does a rate cut or none offered actually mean to investors? The underlying theme that a reduction is good for the market will always have a home on Wall Street. However, the current popular vote—as evidenced by higher stock prices—is geared towards wanting an economic turnaround despite some concerns over higher price pressures. Until yields move to levels that are deemed attractive enough to pull the rug from under equities, Wall Street can apparently have its cake and eat it too.
TuesdayEconomic: NY Empire Index (20)Earnings: Ameritrade (AMTD), Forest Labs (FRX), US Banc (USB), Wells Fargo (WFC), Intel (INTC), Linear Tech (LLTC)
WednesdayEconomic: PPI & Core (.6%, .1%), Ind Prod & Cap Util (.1%, 81.8%), Weekly Crude, Beige BookEarnings: AMR (AMR), Freeport McMoran (FCX), Lennar (LEN), JP Morgan (JPM), Apple (AAPL), Lam Research (LRCX), Washington Mutual (WM)
ThursdayEconomic: CPI & Core (.5%, .2%), Housing & Permits (1.575M, 1.510M), Weekly Claims (315K), Leading Indicators (.2%), Philly Fed (3.0)Earnings: Bank of NY (BK), Continental (CAL), Harley-Davidson (HOG), Jeffries (JEF), Knight (NITE), Merrill (MER), United Health (UNH), Cap One (COF), Cree (CREE), IBM (IBM), Molex (MOLX), Xilinx (XLNX)
FridayEconomic: Michigan Sentiment (92.0)Earnings: Amcol (ACO), Citigroup (C), General Electric (GE), Motorola (MOT), Schlumberger (SLB), Suntrust (STI), Satyam (SAY), Johnson Controls (JCI), Fastenal (FAST)
Chris Tyler

Labels: AA, AAPL, AMD, AMR, CAL, DNA, FCX, INTC, JPM, LEN, LLTC, MER, OIH, SAP, TLAB, UNH, USB, USO, WFC, XLE

Labels: AAPL, AMR, IBM, IRM, PERY, SI

Drug companies commanded the spotlight in the premarket electronic trading session Tuesday, with several companies reporting results of key drug tests.
Shares of Telik Inc. plunged in premarket trading after the Palo Alto, Calif.-based drug developer said studies showed its Telcyta drug didn't show a significant improvement in survival rates for lung cancer patients.
Chief Executive Michael Wick said in a statement the results were "extremely disappointing."
Shares plunged $11.75, or 72 percent, to $4.51 in the premarket session, after closing the Nasdaq Friday at $16.26. Should the drop be sustained in the regular session, shares would open well below the stock's 52-week bottom of 414.37.
A licensing deal worth as much as $10 million sent Englewood Cliffs, N.J.-based drug developer EpiCept Corp.'s shares vaulting in premarket trading.
EpiCept Corp. said early Tuesday it agreed to license Durect Corp. to market a patch containing a drug called Bupivacaine, which treats back pain. The deal is worth at least $1 million to EpiCept, which booked less than $1 million revenue in 2005.
EpiCept's shares added 18 cents, or 13 percent, to $1.57 in premarket trading. The stock closed the Nasdaq Friday at $1.39 after hitting a 52-week low earlier in the day. Durect shares closed Friday at $4.49 on the Nasdaq.
Shares of Sciclone Pharmaceuticals Inc. in the early session continued an ascension that began Friday when the San Mateo, Calif.-based drug developer said a trial showed the company's Zadaxin drug helped patients with skin cancer survive longer.
The stock rose 23 cents, or 7.3 percent, to $3.36 in premarket trading after closing Friday on the Nasdaq at $3.13.
Savvis Inc. agreed to sell its content delivery network services business for $135 million, sending the Town & Country, Mo.-based information technology company's stock higher in premarket trading.
Savvis, which sold the business to Level 3 Communications Inc., also forecast 2007 revenue of $815 million to $835 million, compared with Wall Street forecasts for revenue of $852.6 million.
Savvis shares rose $1.08, or 3 percent, to $37 in premarket trading after closing on the Nasdaq Friday at $35.92. Level 3 Communications shares added 2 cents in the early session from their Friday close to $5.66.
Late Friday, AMR Corp., which operates American Airlines, warned in a Securities and Exchange Commission filing it will lose money in the fourth quarter, while analysts were forecasting for profit of 50 cents per share.
The stock fell $1.05, or 3.5 percent, to $29.20 in premarket trading after closing the Big Board Friday at $30.25.
JPMorgan Securities analyst Jamie Baker said investors "may be reasonably forgiving of AMR's quarterly loss and steep variance to consensus" estimates because the numbers don't suggest weaker demand. The loss stems from fuel costs and maintenance expenses, he said.
Shares of Taylor Devices Inc. jumped in premarket trading after an earthquake off southwestern Taiwan triggered a tsunami heading toward the Philippines. The North Tonawanda, N.Y.-based company, which makes equipment and devices protecting buildings from natural disaster, typically trades heavily after natural disasters like earthquakes and tsunamis.
Taylor Devices' stock rose 34 cents, or 5.6 percent, to $6.41 in premarket trading after closing on the Nasdaq Friday at $6.07.

Labels: AMR, DRRX, EPCT, LVLT, SCLN, SVVS, TAYD, TELK

Bullish calls:
AMR (NYSE: AMR - News): 'AMR is okay. I like CAL more.'Continental (NYSE: CAL - News)BEA Systems (NASDAQ: BEAS - News): 'I think this stock has got 52-week high potential. $13 going to $16. I am backing the truck up - BEAS!'Under Armour (NASDAQ: UARM - News): 'UARM is a buy. It has great growth. Remember, the valuation is stretched. It grows at 23%, and sells at 58x earnings. That's a little expensive, but it stayed down for a nanosecond, and then went up. I think that's the best management in the business.'VeriFone (NYSE: PAY - News)MasterCard (NYSE: MA - News): 'I'm reloading MA, because it's done going down.'Akamai Technologies (NASDAQ: AKAM - News): 'AKAM is the company you need to have streaming video work.'Level 3 Communications (NASDAQ: LVLT - News): 'I'm giving Jerry LVLT, which is part of the bandwidth shortage.'Cisco (NASDAQ: CSCO - News): 'Take a little off the table, because bulls make money, bears make money and hogs get slaughtered. The stock's going to $30 though.'Disney (NYSE: DIS - News): 'I think DIS is a slow grower, on the way to $38. It's not going to set any world speed records, but it's a good solid holding.'Sirius Satellite Radio (NASDAQ: SIRI - News): ' I think SIRI is going to be so good. I think Mel is going to hit the numbers. 6.1 gets the stock to $4.50. 6.3 million, and we've got a $5.50 stock. I don't want to do any of the derivative plays though. I just want to bank on Mel Karmazen.'Safeway (NYSE: SWY - News): ' I like SWY. That is the only one in that area.'Sysco (NYSE: SYY - News)WellPoint (NYSE: WLP - News): 'I am going to buy WLP - buy, buy, buy!'Humana (NYSE: HUM - News): 'I am going to buy HUM.'America Movil (NYSE: AMX - News): 'I got off this horse 10 points ago, for my charitable trust. I should never have done that and, the truth is, AMX is the single best play in Latin America.'
Bearish calls:
Sirenza Microdevices (NASDAQ: SMDI - News): 'No. I once recommended this, had a really good trade, and then I left it. Sometimes, you just don't want to look back.'Koninklijke Ahold (NYSE: AHO - News): 'Candidly, I am not a fan of AHO. People may know them as Stop and Shop and Giant.'Tsakos Energy (NYSE: TNP - News): 'TNP should mean 'take no prisoners ... You've got a 5% yield. I do not think that should sustain it. You are up 22% year-to-date in TNP, and you, my friend, are ringing the register right now!'Odyssey Healthcare (NASDAQ: ODSY - News): 'No, no. Hospice services. It's like not that much of a business, to be honest.'

Labels: AMR, BEAS, CAL, DIS, Jim Cramer, Mad Money, Sirius, UARM

Shares of U.S. airlines fell on Monday, with Continental Airlines (CAL.N: Quote, Profile, Research) down more than 6.5 percent, partly on rising oil prices. Additional pressure on the stocks came as investor enthusiasm for the industry consolidation outlook diminished, one analyst said. AMR Corp. (AMR.N: Quote, Profile, Research), parent of American Airlines, UAL Corp. (UAUA.O: Quote, Profile, Research), parent of United Airlines, and US Airways Group (LCC.N: