Jim Cramer Blog

Dennis Gartman, author of The Gartman Letter, joined the show to discuss his take on the dollar, which he predicted last Friday was due for a bounce. The dollar had its biggest one day reversal in a year on Monday. He also noted that in the last 4 days the U.S. dollar had the biggest rally versus the Canadian dollar that he has seen in his life. He also wouldn't be surprised to see gold fall another $40. Also, Gartman is looking for oil to fall $10-$15 before Thanksgiving.
Merrill Lynch economist David Rosenberg said on Monday that the last time he's seen a drop in consumer confidence to this degree during the Holiday season; the economy was in a recession. Macke thinks the Tuesday earnings reports from Home Depot (HD) and Wal-Mart (WMT) will be horrific. The only retailer he expects a good earnings report from is Kohl's (KSS) and his wild card is Macy's (M). He would get long Costco (COST) and Target (TGT). Adami thinks a trade is setting up for Coldwater Creek (CWTR), which he mentions has a very high short interest.
E*Trade (ETFC) lost 60% of its value Monday on concerns over the companies loan portfolio. Finerman thinks the most clear trade is to be long TD Ameritrade Holding (AMTD). Finerman sees opportunity for TD Ameritrade to steal E*Trade clients with all the problems they're having. She also likes Charles Schwab (SCHW).
IBM (IBM) bought Cognos (COGN) for $5 billion and Fortune Brands (FO) sold its wine business to Constellation Brands (STZ) for $885 million. Adami declares United States Steel (X) will be the next company to be taken over.
Word on the Street
Technology stocks continued to slide Monday with leaders like Google (GOOG) dropping 5%, Apple (AAPL) dropping 7% and Research In Motion (RIMM) dropping 9%. Adami likes Hewlett Packard (HPQ) ahead of next Monday's earnings report.
Rio Tinto (RTP) hits a record high after BHP Billiton (BHP) laid out the details for its $140 billion all-share offer.
Adami says the big pharmaceutical story is not fiction and Merck (MRK) is for real. He also loves defense play Johnson & Johnson (JNJ). Macke agrees with Adami and that right now is a good time to be long Merck, Procter & Gamble (PG), Pfizer (PFE) and Church & Dwight (CHD) for a defensive portfolio. Najarian wants to keep an eye on Eli Lilly (LLY).
Pops & Drops
Pops - Cisco Systems (CSCO) traded up 2% on Monday as the market declined.
Mattel (MAT) traded up 4% off a JPMorgan upgrade.
Starwood (HOT) traded up 2%
Washington Mutual (WM) traded up 1% as the financial stocks mounted a rally on Monday.
American Airlines (AMR), US Airways (LCC) and Delta (DAL) all traded up more than 5% as oil prices declined.
Starbucks (SBUX) traded up 3%.
Drops - Freeport McMoRan (FCX) fell 10% as commodity stocks were hit off the dollar rally.
Tyson Foods (TSN) fell 3% after cutting its 2008 forecast.
Sotheby's (BID) fell 2%.
Mosaic (MOS) fell 14% off the dollar rally.
Final Trade
Macke likes defensive play Procter & Gamble (PG).
Adami recommends Cisco Systems (CSCO).
Finerman and Najarian both picked TD Ameritrade Holding (AMTD).

Labels: AMTD, CNBC, CNBC's Fast Money, COST, CWTR, dennis gartman, ETFC, Fast Money, Fast Money Recap, HD, KSS, TGT, WMT

Bulls were in a buying mood today after investors picked up stocks in anticipation of more deals coming to Wall Street. At the end of trading, all three major averages gained more than 1%. Leading the advance was the tech-laden Nasdaq, which gained 1.3%. Over in the energy sector, oil continued to sell off, ending the session at $69.26, down -31 cents.
The nation's four largest money center banks, Citigroup (NYSE: C - News), JP Morgan Chase (NYSE: JPM - News), Bank of America (NYSE: BAC - News), and Wachovia (NYSE: WB - News) all reported today that they borrowed $500 million each from the Federal Reserve's discount window on behalf of clients. The move was aimed at showing confidence amid a spreading credit crunch. The borrowing event comes after the Fed cut the discount rate by 50 basis points last Friday.
Staying on the topic of the recent credit crunch, shares of tax services company H&R Block (NYSE: HRB - News) fell -1.8% after it had to draw down bank credit lines when its Block Financial Unit was locked out of the commercial paper market. The company said it took down a net of $650 million in working capital lines.
On the news front, pharmaceutical giant Pfizer (NYSE: PFE - News) said it hired Frank D'Amelio to serve as its chief financial officer (CFO) replacing Alan Levin, who announced his resignation in May. D'Amelio recently served as SVP and chief administrative officer of Paris-based Alcatel-Lucent (NYSE: ALU - News).
Shares of energy exchange NYMEX Holdings (NYSE: NMX - News) rose 6.1% after the company officially announced that it is in talks with potential parties regarding a business combination. It also said it could cut 150 jobs and sell its Manhattan headquarters, which it thinks could fetch north of $500 million. Meanwhile, rumors swirled that Ameritade (Nasdaq: AMTD - News) and E*Trade (Nasdaq: ETFC - News) could merge following a report in The Wall Street Journal that the two sides were in talks.
Lastly, on the earnings front, medical device maker Medtronic (NYSE: MDT - News) said net income rose 13% to $675 million, or 59 cents a share, up from $599 million, or 51 cents a share, last year. Sales increased 8% to $3.13 billion. Excluding one-time items, it reported earnings of $711 million, or 62 cents a share, in line with what analysts had expected. Shares fell -0.4%.
By the BullMarket.com Staff

Labels: ALU, AMTD, BAC, C, ETFC, HRB, JPM, MDT, NMX, pfe, WB

Stock futures bounded higher Wednesday on speculation that the Federal Reserve will move to mitigate a growing credit crunch by cutting interest rates.
Wall Street ended mixed Tuesday, with the Dow Jones industrials giving up some 30 points while both the Nasdaq composite and Standard & Poor's 500 finished slightly higher. Investors weighed statements from government officials and policymakers over if and when the Fed will move to cut interest rates.
Online brokerages TD Ameritrade Holding Corp. and E-Trade Financial Corp. are said to have been in discussions about a possible deal for weeks, according to The Wall Street Journal. However, the report said they are not close to a deal.
Meanwhile, Nymex Holdings Inc. Chairman Richard Schaeffer said Tuesday the commodities exchange owner has held preliminary discussions about a potential combination, but there is no guarantee of a deal. We believe this other party to be NYSE Group. NYX needs a futures exchange exposure and Nymex is their best fit.

Labels: Ameritrade, AMTD, E-Trade Financial Corp., ETFC, NMX, Nymex Holdings Inc., NYSE Euronext Inc., NYX

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.
Goldman Sachs Sep 230 Calls (NYSE:GS - News). GS' PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News). FRO's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Aug 185 Calls (NYSE:MA - News). MA'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.
Chipotle Mexican Grill, Inc. Aug 80 Puts (NYSE:CMG - News). CMG's 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.
TD Ameritrade Holding Corporation (NasdaqGS:AMTD - News). AMTD'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.
Utilities Select Sector SPDR (AMEX:XLU - News). XLU's PowerRating is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Goodyear Tire & Rubber Co. (NYSE:GT - News). GT's PowerRating is 7.
PowerRatings are courtesy of TradingMarkets.com

Labels: AMTD, CMG, FRO, GS, GT, MA, stock options, XLU

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
F5 Networks (NasdaqGS:FFIV). FFIV's PowerRating is 6.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Kenneth Cole Productions (NYSE:KCP) & UAL Corporation (NasdaqGS:UAUA). KCP's PowerRating is 7, and UAUA's PowerRating is 8.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
WellPoint (NYSE:WLP) . WLP's PowerRating is 6.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Kraft Foods (NYSE:KFT). KFT's PowerRating is 4.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
TD Ameritrade (NasdaqGS:AMTD). AMTD's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Crosstex Energy (NasdaqGS:XTXI). XTXI's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: AMTD, FFIV, Hot Stocks, KCP, KFT, UAUA, WLP, XTXI

It was a tale of two markets today as solid earnings reports from two of the Dow Jones Industrial Average, coupled with benign inflation data, helped push that market indicator to new heights intraday before it closed short of another record. The tech-heavy Nasdaq composite, in contrast, hovered near the unchanged mark for much of the session before ultimately closing fractionally lower. The 10-year Treasury note again found buyers today while crude oil prices declined. The British pound also made news on the currency markets, pushing past the psychologically important $2 level for the first time since 1992, though the weak-dollar trend has been in place for some time.
U.S. consumer prices rose a sharp 0.6% in March, but much of that gain was attributable to the rising price of energy, which jumped 5.9% last month. It was the sharpest one-month increase in energy costs since Hurricane Katrina helped shut down a portion of the nation's refining capacity in the summer of 2005. Investors were encouraged, however, that so-called core inflation, which strips out energy as well as food costs, was only up a scant 0.1%.
In earnings news, strong sales outside of North America helped propel the soft-drink maker Coca-Cola (NYSE: KO - News), a Dow component, to a 14% earnings increase. Revenue increased 17%. Growth was propelled by a 9% gain in overseas unit-case volume, which offset a -3% decline in the same North American sales metric. Satisfied investors pushed the company's shares up 3%.
The Q1 bottom-line results for pharmaceutical maker Johnson & Johnson (NYSE: JNJ - News) declined -22% as the result of charges related to its acquisition of Conor Medsystems, but investors were encouraged by record sales of nearly $13 billion, a 16% increase over last year's Q1 results. Shares increased 2% in today's trading. J&J is another one of the 30 stocks that make up the blue chip Dow index, which was also helped by a late afternoon rally from McDonald's (NYSE: MCD - News)
TD Ameritrade (Nasdaq: AMTD - News), meanwhile, slumped -9% after the online broker posted results that missed expectations and lowered its outlook for the remainder of the year. The company said it earned $141 million, or 23 cents a share for its second fiscal quarter ended March 31, against $173 million, or 30 cents a share, last year when results were aided by one-time gains. Its rival Charles Schwab (Nasdaq: SCHW - News), meanwhile, reported a Q1 profit of $273 million, or 22 cents a share, compared with $243 million, or 19 cents a share, a year earlier. Revenue from continuing operations increased 9% to $1.15 billion. The results were in line with Wall Street's expectations.
Earnings results continued to come in from the banking sector. Wells Fargo (NYSE: WFC - News), the nation's No. 4 bank, reported an 11% increase in Q1 profits, but also revealed an increase in bad loans. The bank, however, insisted its loan portfolio is largely isolated from difficulties in the subprime sector. Wells Fargo earned $2.24 billion, or 66 cents per share, compared with $2 billion, or 60 cents, a year ago. Revenue rose 10%. Regional bank SunTrust Banks (NYSE: STI - News) said its Q1 net income fell 3% to $514 million, while Regions Financial (NYSE: RF - News) reported a 13% profit increase to $333 million. After the bell, Washington Mutual (NYSE: WM - News) reported a decline in Q1 profit, hurt by a loss in its mortgage unit.

Labels: AMTD, JNJ, KO, MCD, RF, SCHW, STI, WFC, WM

Bullish calls:
Schlumberger (NYSE: SLB - News): 'I'm steering people toward SLB.'Transocean (NYSE: RIG - News): ' ... that's the cheapest international driller, now that SLB has run so much. That's a better buy.'Companhia Vale do Rio Doce (NYSE: RIO - News)Allegheny Technologies (NYSE: ATI - News)Wachovia (NYSE: WB - News): 'This is a 4% yielder with decent growth. Good quarter today. You know I like the regional banks. I say it's okay. I prefer BNS.'Bank of Nova Scotia (NYSE: BNS - News): ' I prefer BNS [to WB].'Ford (NYSE: F - News)Marvell Technology (NASDAQ: MRVL - News): 'I am going to recommend - even at the price of perhaps a shortfall near term - MRVL. I think that's one down and 10 up. That's my gift to you.'Charles Schwab (SCHW): 'SCHW's good. ETFC's good. AMTD's good. They all trade more expensively, though, than the full-service brokers.'Ameritrade (NASDAQ: AMTD - News)E*Trade (NASDAQ: ETFC - News)Goldman Sachs (NYSE: GS - News): 'I have been recommending GS. The stock's been down for two days and, you know what? (motions to back up the truck for a 'mon-back) - even that short of time, and I want to buy GS, because I'm using a $300 price target and it's one of my stock picks of the year - my value stock pick...'Johnson Controls (NYSE: JCI - News)Adobe Systems (NASDAQ: ADBE - News): 'I think ADBE is unfairly being brought down. I think ADBE is right here ... I'd like to buy this one for my charitable trust. That's how great I think it is down here ... It's a triple buy. Buy, buy, buy! ... I want you to stay with it.'@Road (NASDAQ: ARDI - News): ' Good speculative play on the net. I like it, I'll endorse it.'Darden Restaurants (NYSE: DRI - News): 'Yes! That's a well-run company!'
Bearish calls:
Talisman Energy (NYSE: TLM - News): 'I don't want to be in TLM. I want to be in RIG.'Zoltek (NASDAQ: ZOLT - News): ' I don't like ZOLT. I think it's played out. We recommended it on this show at $12. When it doubled, we took our profits. And I'm not going back. I do not want to own ZOLT.'Syntax-Brillian (NASDAQ: BRLC - News): 'No can do, my friend. That's like hamburger helper. I'd rather go for the real thing; I'd rather go for the filet mignon [MRVL].'Fuel-Tech (NASDAQ: FTEK - News): 'I like pollution control stories somewhat ... I'm concerned that this is one of those 'State of the Union' plays, where it drops down tomorrow, so let's take profits today.'Visteon (VC)SAIC (NYSE: SAI - News): 'There is a sense that the consulting companies that report to the government for military purposes aren't doing well ... I think that SAI - which I liked a little too much, I now say - is just 'don't buy, don't buy' ... New position for me - new negativity.'Evergreen Solar (NASDAQ: ESLR - News): 'Another one of these (bear)... I am not going to countenance any of these solar plays with energy going down!'Baker Hughes (NYSE: BHI - News): 'BHI has a decent product portfolio, but RIG* is the name of the game ... because it's an international driller. 'Complete Production Services (NYSE: CPX - News): 'No, we're going to RIG.'
Published by SeekingAlpha

Labels: ADBE, AMTD, ARDI, ATI, BNS, BRLC, DRI, ETFC, F, GS, JCI, Jim Cramer, Mad Money, MRVL, RIG, RIO, SLB, TLM, WB, ZOLT

The stock market drifted today as investors failed to find a clear sign to follow at the start of a holiday-shortened trading week. There were some solid earning results from the banking and financial sector, but they failed to generate much excitement in the overall market, which closed mixed. The Dow Jones Industrial Average and S&P 500 both advanced, while the tech-heavy Nasdaq composite lagged. Oil prices tumbled to less than $51 a barrel after an oil minister in Saudi Arabia suggested there was little need for production cutbacks by OPEC. The 10-year Treasury note edged higher, cutting the yield to 4.75%.
Technology stocks have led recent market gains, and investors seemed to be holding back waiting for results from semiconductor maker Intel (Nasdaq: INTC - News), which is considered a sector bellwether. Intel disappointed investors after the bell, as the company guided for lower-than-expected gross margins. Tech stocks moved lower in the session, paced by declines by Cisco Systems (Nasdaq: CSCO - News), which was downgraded by two brokers. Prudential reduced Cisco to "neutral" from "overweight," and Bank of America cut the network equipment maker to "neutral" from "buy." In both cases, the new ratings are equal to a "hold" rating.
Elsewhere in tech, security software maker Symantec (Nasdaq: SYMC - News) plummeted -13% after the company reduced its fiscal Q3 and full-year outlook. The company cut its revenue outlook due to weak sales in its data center management business. CIBC World Markets immediately cut its rating on Symantec to "sector perform" from "sector outperform." In other ratings action, J.P. Morgan upgraded Sirius Satellite Radio (Nasdaq: SIRI - News) and its rival XM Satellite Radio Holdings (Nasdaq: XMSR - News) to "overweight" from "neutral." The former added 1%, while the latter finished only fractionally higher. FedEx (NYSE: FDX - News), meanwhile, added 3%, following a J.P. Morgan upgrade from "neutral" to "overweight."
Online broker TD Ameritrade Holdings (Nasdaq: AMTD - News) gained 4% after the company reported a blowout quarter. For its fiscal Q1 ended December 31st, the company reported a profit of $146 million, or 24 cents a share, up from $86 million, or 21 cents, a year ago. The small increase in EPS was due to a nearly 50% jump in the number of shares outstanding over the last year. Revenue and earnings gains benefited from Ameritrade's acquisition of TD Waterhouse's U.S. business last year. Rival E*Trade Financial (Nasdaq: ETFC - News) added 2%, while Charles Schwab (Nasdaq: SCHW - News) closed lower after trading flat for much of the day.
In the banking sector, San Francisco-based Wells Fargo (NYSE: WFC - News) reported results that were in line with expectations. The bank earned $2.2 billion, or 64 cents per share, in Q4, against $1.9 billion, or 57 cents, a year ago. In a disquieting note, The Wall Street Journal reported that the bank's results raised concerns about credit quality, as Wells Fargo reported an increase in bad loans. Wells Fargo reported -$726 million in net credit losses in the final three months of 2006, up from -$663 million the previous quarter and -$703 million in Q4 2005. Investors seemed unconcerned today as the stock rose 2%.
In other news, General Electric (NYSE: GE - News) said it would buy the aerospace business of Smiths Group, Britain's third-largest aerospace company, for $4.8 billion in cash. GE is already the world's largest manufacturer of aircraft engines. Citigroup (NYSE: C - News), meanwhile, is planning to drop the word "group" from its name along with its red umbrella logo, the New York Times reported. The umbrella logo came over with Travelers Group when it merged with then-named Citibank in 1998. The bank concluded from market research that the umbrella may have worked for an insurer for over 100 years, but it doesn't resonate with banking customers.
By the BullMarket.com Staff

Labels: AMTD, C, CSCO, ETFC, FDX, GE, INTC, SCHW, SIRI, SYMC, WFC, XMSR

Monro Muffler Brake Inc. (NASDAQ:MNRO - News) said third-quarter net income for the three months ended Dec. 23 rose 20% to $4.9 million or 32 cents a share, from $4.1 million, or 27 cents a share in the year-ago period. Analysts surveyed by Thomson First Call forecast earnings of 32 cents a share, on average. Sales grew 15% to $103.8 million, a record. Looking ahead, the Rochester, N.Y. retailer expects fourth-quarter earnings of 37-40 cents a share, compared to the First Call estimate of 40 cents a share.
NCR Corp. (NYSE:NCR - News) expects fourth-quarter per-share earnings of 91 cents or higher. The average earnings estimate of five analysts surveyed by Thomson First Call is 80 cents a share. NCR, of Dayton, Ohio, said it expects fourth-quarter revenue of more than $1.8 billion. The company also forecast 2006 per-share earnings at $2.04 or higher, before adjustments. The average estimate of analysts is $1.97 a share. NCR expects 2007 earnings of $2.40 to $2.50 a share. The 2007 average earnings estimate of analysts is $2.46 a share.
Netflix (NASDAQ:NFLX - News) shares rose after the company unveiled a feature allowing subscribers to immediately watch movies and television series on their computers. The company plans to make the option available to subscribers in a phased roll-out over the next six months.
Nokia (NYSE:NOK - News) was upgraded to buy from sell at Goldman Sachs. The firm said it believes a perfect storm of negative news, including a profit warning at U.S. rival Motorola and the launch of Apple's iPhone, has coincided with the bottom of Nokia's profit cycle, driving the stock's 17% underperformance relative to the FTSE Europe since July. The broker, however, said it expects the stock to rebound from there, especially after the Finnish company posts quarterly results next week. "We have high confidence that Nokia will post solid fourth-quarter earnings of 0.27 euro a share, allowing 2007 EPS to bottom, while new products should drive a recovery in sentiment as well as average selling prices and gross margins during the first half of 2007," the firm said.
PerkinElmer Inc. (NYSE:PKI - News) was upgraded to buy from neutral at UBS. The firm also lifted its price target on the stock to $27 from $23.
Phoenix Technologies Ltd. (NASDAQ:PTEC - News) was in focus after Ramius Capital Group's Admiral Advisors unit Tuesday disclosed a revised bid to acquire the company for $5.25 per share in cash. The firm, which is Phoenix's largest shareholder, said its non-binding offer isn't subject to financing but does carry other conditions, including completion of due diligence.
PW Eagle (NASDAQ:PWEI - News) agreed to be acquired by J.M. Manufacturing for $400 million, or $33.50 per share in cash. PW Eagle in May announced it was considering strategic alternatives. The pipe maker's stock closed at $29.86 on Friday.
Retalix Ltd. (NASDAQ:RTLX - News) affirmed its estimate that fourth-quarter net income would come in at more than $1.6 million, adjusted net would exceed $4 million, and revenue would exceed $54 million. The adjusted-profit figure excludes equity-based compensation costs of $1.7 million and acquisition-related amortization of $700,000, after taxes, Retalix said in a statement.
Sirius Satellite (NASDAQ:SIRI - News) was upgraded to overweight from neutral at J.P. Morgan. The firm made the same call on XM Satellite Holdings (NASDAQ:XMSR - News). J.P. Morgan said it is now assuming that growth rates for the companies have peaked, but even with cautious growth assumptions, the broker said it sees Sirius having more than 15 million subscribers by 2010 and XM having more than 14 million subscribers. These subscription levels will be largely due to deals with automakers to get satellite radio preinstalled in new cars. "We see potential upside as the momentum in the industry appears to be towards making satellite radio a standard feature, which is not yet included in our models," J.P. Morgan said. It added there is also the possibility that the two companies could attempt a merger in 2007, though regulatory approval would not be certain. XM, for its part, was also downgraded to neutral at Banc of America Securities.
Smith & Wollensky Restaurant Group (NASDAQ:SWRG - News) shares soared after Landry's Restaurants (NYSE:LNY - News) offered to acquire the company for $7.50 per share. Landry's noted this consideration represents roughly a 50% premium to Friday's close for Smith & Wollensky shares at $5.03 each. "We believe that a combination of the two companies would be in the best interest of the stockholders of both companies," said Tilman Fertitta, Landry's chairman, president and CEO, in a statement.
Taleo Corp. (NASDAQ:TLEO - News) was upgraded to overweight from neutral at J.P. Morgan.
TD Ameritrade (NASDAQ:AMTD - News) said its first quarter net income rose to $145.6 million, or 24 cents a share from $86 million, or 21 cents a share a year ago. In the latest quarter, there were 612.8 million average shares outstanding, compared to 417.1 million shares a year ago. Net income in the latest quarter included a gain of $614,000 from the sale of investments. Net revenues in the first quarter rose to $535.2 million, compared to $277.3 million a year ago. Analysts polled by Thomson First Call had, on average, expected the company to earn 22 cents a share on revenue of $517 million. The company also reaffirmed the $1.10 a share midpoint in its estimated outlook for earnings for fiscal 2007.
USI Holdings Corp. (NASDAQ:USIH - News) agreed to be acquired by GS Capital Partners, a private equity affiliate of Goldman Sachs (NYSE:GS - News) for $17 per share. The transaction is valued at roughly $1.4 billion, including debt repayment. The $17 per share consideration represents a 20.5% premium to the average closing price for USI's common shares during the 30 calendar days prior to Oct. 24.
WCI Communities (NYSE:WCI - News) shares rallied after billionaire financier Carl Icahn said in a regulatory filing that he's increased his stake in the company, and has accumulated about 14.6% of the company's outstanding shares. Icahn said he plans to contact the company to get its views "on how to unlock the inherent value of the shares."
XTL Biopharmaceuticals Ltd. (NASDAQ:XTLB - News) shares rose after the company said its subsidiary has signed an agreement with Dov Pharmaceutical Inc. (Other OTC:DOVP.PK - News) to in-license the worldwide rights for Bicifadine for the treatment of neuropathic pain. Under the terms of the deal, XTL will make an up-front payment of $7.5 million in cash, in addition to milestone payments of up to $126.5 million in cash and/or ordinary shares over the life of the license. XTL said it must also pay royalties on sales of the product.
Zevex International (NASDAQ:ZVXI - News) agreed to be acquired by Moog (AMEX:MOG.TO - News) for $13 per share for a maximum purchase of $83.8 million. Following the merger, expected to close in March, Zevex will become a part of Moog's Medical Devices Segment.

Labels: AMTD, GS, LNY, MNRO, NCR, NFLX, NOK, PKI, PTEC, PWEI, RTLX, SIRI, SWRG, TLEO, USIH, WCI, XMSR, XTLB, ZVXI

Online brokerage TD Ameritrade Holding Corp. reported a 69 percent jump in first-quarter net earnings Tuesday, citing the asset-based revenue it gained through its latest acquisition.
Ameritrade reported quarterly net earnings of $145.6 million, or 24 cents per share. That's up from $86 million, or 21 cents per share in the year ago period. Per-share results are based on 603 million average shares outstanding, up sharply from 406.6 million a year ago.
Excluding items, the company earned $173 million, or 28 cents per share, in the latest quarter.
A year ago this month, Ameritrade acquired TD Waterhouse's U.S. retail securities business to help attract more long-term investors and diversify its revenues, so last year's first-quarter results included significantly less asset-based revenue from items such as money market fees and interest revenue.
Revenue nearly doubled to $535.2 million from $277.3 million last year.
Analysts polled by Thomson Financial were expecting net earnings per share of 22 cents on revenue of $517.44 million during the quarter.
"After four record years, we've begun the new year with our best quarter ever," Chief Executive Joe Moglia said.
The company expects to complete its integration of TD Waterhouse's assets within the next year.
Trading activity remained brisk during the quarter that ended Dec. 31. Ameritrade handled an average of 237,538 trades per day during the first quarter, up from the fourth quarter's 204,480 trades per day and last year's first quarter trading average of 156,245 trades per day.
Ameritrade said it expects to earn $1.10 per share in fiscal 2007. Analysts are expecting earnings per share of $1.12 for the full year.
Shares rose 63 cents, or 3.6 percent, to $17.98 in premarket trading.
Published by Josh Funk, AP Business Writer

Labels: AMTD

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Ameritrade (NASDAQ:AMTD - News) announces earnings Tuesday morning; look for $0.22 EPS. AMTD's PowerRating is 3.
Charles Schwab (NASDAQ:SCHW - News) reports quarterly earnings before the open on Tuesday, with analysts expecting $0.21 EPS. SCHW's PowerRating is 5.
Commerce Bancorp (NYSE:CBH - News) is expected to announce $0.40 EPS before the bell Tuesday. CBH's PowerRating is 5.
On Tuesday morning, watch for US Bancorp (NYSE:USB - News) to report $0.67 EPS. USB's PowerRating is 6.
Analysts are expecting $0.64 EPS from Wells Fargo (NYSE:WFC - News) when the company reports Tuesday morning. WFC's PowerRating is 6.
Intel (NASDAQ:INTC - News) and H.B. Fuller (NYSE:FUL - News) both report on Tuesday afternoon, so watch for heightened volatility and volume ahead of the close. INTC's PowerRating is 4, and FUL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: AMTD, CBH, FUL, Hot Stocks, INTC, SCHW, USB, WFC

Ameritrade (NASDAQ:AMTD - News) announces earnings Tuesday morning; look for $0.22 EPS. AMTD's PowerRating is 3.
Charles Schwab (NASDAQ:SCHW - News) reports quarterly earnings before the open on Tuesday, with analysts expecting $0.21 EPS. SCHW's PowerRating is 5.
Commerce Bancorp (NYSE:CBH - News) is expected to announce $0.40 EPS before the bell Tuesday. CBH's PowerRating is 5.
On Tuesday morning, watch for US Bancorp (NYSE:USB - News) to report $0.67 EPS. USB's PowerRating is 6.
Analysts are expecting $0.64 EPS from Wells Fargo (NYSE:WFC - News) when the company reports Tuesday morning. WFC's PowerRating is 6.
Intel (NASDAQ:INTC - News) and H.B. Fuller (NYSE:FUL - News) both report on Tuesday afternoon, so watch for heightened volatility and volume ahead of the close. INTC's PowerRating is 4, and FUL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: AMTD, CBH, FUL, INTC, SCHW, USB, WFC

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Ameritrade (NASDAQ:AMTD - News) announces earnings Tuesday morning; look for $0.22 EPS. AMTD's PowerRating is 3.
Charles Schwab (NASDAQ:SCHW - News) reports quarterly earnings before the open on Tuesday, with analysts expecting $0.21 EPS. SCHW's PowerRating is 5.
Commerce Bancorp (NYSE:CBH - News) is expected to announce $0.40 EPS before the bell Tuesday. CBH's PowerRating is 5.
On Tuesday morning, watch for US Bancorp (NYSE:USB - News) to report $0.67 EPS. USB's PowerRating is 6.
Analysts are expecting $0.64 EPS from Wells Fargo (NYSE:WFC - News) when the company reports Tuesday morning. WFC's PowerRating is 6.
Intel (NASDAQ:INTC - News) and H.B. Fuller (NYSE:FUL - News) both report on Tuesday afternoon, so watch for heightened volatility and volume ahead of the close. INTC's PowerRating is 4, and FUL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: AMTD, CBH, FUL, Hot Stocks, INTC, SCHW, USB, WFC

Bullish calls:
Goldman Sachs (NYSE: GS - News): 'I am going to send you to the lowest multiple stock in the group, which also happens to be the best. I am going to send you, once again, to GS.'Adobe Systems (NASDAQ: ADBE - News): 'I recommended ADBE right here at $40. It's been stalled. That's ADBE's fault, not mine. The stock is about to ramp. It's one of the few tech stocks that is still below where it reported its quarter. I'm giving it two thumbs up, way up.'DivX (NASDAQ: DIVX - News): 'Yesterday, it hit $21. Is that right? Frankly, it's not going to be the gold standard. I think this... If it goes back to $21, (pull the trigger to buy it...), but only if it goes back to $21.'Stryker (NYSE: SYK - News): 'This whole group is en fuego ... SYK is ... the sweet spot for this particular market, because they are going to be able to keep raising prices... This is the baby boomers play for bones.'Coldwater Creek (NASDAQ: CWTR - News): 'Stuck at $24 until we see the quarter. I like that. It feels coiled spring to me.'
Bearish calls:
TD Ameritrade (NASDAQ: AMTD - News): 'It does seem like a coiled spring, doesn't it? ... even though I like AMTD - ... I am going to send you to GS.'Yahoo! (NASDAQ: YHOO - News): 'You know what? There's no buyout. As a matter of fact, I would sell it before Sue Decker opens her mouth and pre-announces to the downside once again.'Valero Energy (NYSE: VLO - News): 'My take: The stock could go as low as $47. Only then would I sanction (sound effect: pulling the trigger - a buy). 'Rentech (AMEX: RTK - News): 'When the Saudis, and the rest of the OPEC-kers decided to get together, and keep oil all the way down, under $60, what happened is the (buzzer sounds) - RTK is an alternative energy play ... If oil goes to $50, RTK goes to $2.'Allscripts Healthcare Solutions (NASDAQ: MDRX - News): 'We liked the stock at $14. At $27, it's all Johnny come lately. I say no can do. Let's make some sales.'Alcatel Lucent (NYSE: ALU - News): 'I'm pre-disposed to be a bear, because the management there - Patricia Russo from Lucent - really hurt me. But, you know what? I am hearing the quarter's good. I am hearing that the business is coming back, so I'm giving it a tepid one thumb up, taking it out of the sell, sell, sell category and landing it into the don't buy, don't buy.'
Published By SeekingAlpha

Labels: ADBE, ALU, AMTD, CWTR, DIVX, GS, Jim Cramer, Lightning Round, Mad Money, MDRX, RTK, SYK, VLO, YHOO

Bank of America Corp. (BAC.N: Quote, Profile, Research) said on Tuesday customers may trade stocks online for free in 30 additional U.S. states, mainly in the Midwest and Southwest, speeding up the roll-out of a program that roiled the brokerage industry. The program lets investors make up to 30 free online equity trades per month through Banc of America Investment Services Inc. if they deposit at least $25,000 with the No. 2 U.S. bank. It is intended to encourage people to do more business with Charlotte, North Carolina-based Bank of America, which operates more than 5,700 branches. The bank has about 1.6 million brokerage customers. The launch of the program initially sent shares of Charles Schwab Corp. (SCHW.O: Quote, Profile, Research), E*Trade Financial Corp. (ET.N: Quote, Profile, Research) and TD Ameritrade Holding Corp. (AMTD.O: Quote, Profile, Research) several percent lower.
Rivals have not raced to match the lowered fees. E*Trade has said it will not offer free trades, but offers other accounts and services that may offset any benefits from free trading.
Bank of America shares closed Monday at $52.65 on the New York Stock Exchange. They began the year at $46.15.
Source: Reuters.com

Labels: AMTD, BAC, Bank of America, Charles Schwab Corp., ET, Hot Stocks, SCHW, Stock Market