Jim Cramer Blog

Exxon (XOM), Conco-Phillips (COP), Schlumberger (SLB), Ultra Petroleum (UPL), Apache (APA), Anadarko (APC), XTO Energy (XTO), Arch Coal (ACI), Peabody Energy (BTU), First Solar (FSLR), Applied Materials (AMAT), MEMC Electronics (WFR), Mosaic (MOS), Deere (DE), CSX (CSX), Chicago Bridge and Iron (CBI), Jacobs Engineering (JEC), Shaw Group (SGR)
Contrary to popular belief, retail did not cause the rally in the Dow and the Nasdaq, but the culprit was oil, which is the umbrella that makes everything work. Not only did oil stocks like XOM, COP and SLB do well, but Cramer says oil will fuel other stocks the energy sector such as UPL, APA, XTO, ACI and BTU, as well as alternative energy plays FSLR (which reported a better-than-expected quarter and historically fabulous upside guidance), AMAT and WFR. Cramer considers ag stocks as members of the energy sector, given the development of ethanol, and would look at MOS, DE. He added rail such as CSX, and infrastructure, CBI, JEC and SGR will also rise with the oil umbrella.
Conviction Stock: FMC Corp (FMC)
A rally one day may spell a down day the next, and it is hard to know what a stock is really worth in this mad market, said Cramer. He was looking for a conviction stock which could give a little bit of certainty about what it was worth, and came up with FMC, a soda ash company in an underexposed sector which is currently enjoying a silent bull market. Soda ash is used to make glass, brick, water softener and most importantly, agricultural chemicals. Cramer says he feels certain that FMC will reach $70, a 30% upside.

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Labels: ACI, AMAT, APA, APC, BTU, CBI, COP, CSX, DE, FSLR, JEC, Jim Cramer, Mad Money, MOS, SGR, SLB, UPL, WFR, XOM, XTO

Shaw Group (SGR), ABB (ABB)
Infrastructure is one of Cramer's favorite bull markets, and nuclear energy, particularly for emerging economies like India and China, is the sweet spot. Cramer's pick in this sector is Shaw Group, which reported a "beautiful quarter" with a 40% increase in revenue and a backlog of projects which is up 57% since last year and is triple the size of the company. Cramer prefers Shaw to ABB and added, "Given its diminutive size, I would be shocked if it was independent a year from now. But anyhow we like this one for the long haul."
Good as Gold: Yamana (AUY) Barrick (ABX)
Cramer reiterated his two favorite gold picks, Barrick and Yamana, as insurance against inflation. He stressed these are stocks to hold onto and should not be sold if one doesn't see immediate results. He noted AUY has a large mine in China, and ABX succeeds finding and producing more gold when other companies in the sector have stalled.
Sell Block: Peabody Energy (BTU), Massey Energy (MEE), Arch Coal (ACI), International Coal (ICO), Apache (APA), XTO Energy (XTO) Andarko (APC), ConcoPhillips (COP)
King Coal has been dethroned by a recent bill in Congress which threatens to raise dramatically the costs of burning the fuel, and will render stocks in the sector as "untouchable." While investors have been "coining money" with BTU, Cramer would sell the stock, as well as MEE, ACI and ICO. At the same time, Cramer declared "2008 is going to be the year for natural gas," and recommended buying XTO, APC, APA and COP.
CEO Interview: Matthew O'Connell, GeoEye (GEOY)
Matthew O'Connell announced the launch of the company's third satellite, and mentioned Boeing, General Dynamics and ITT participated in the production and launch of the satellite. "We paid up to get a great team," said O'Connell. Cramer said GEOY is and will remain a great speculative stock.
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Labels: ABB, ABX, ACI, APA, APC, AUY, BTU, COP, GEOY, ICO, Jim Cramer, Mad Money, MEE, SGR, XTO

Abbott Labs (ABT): Cramer likes this stock because it has great drugs and diagnostics. He also recommended Baxter (BAX), Bard (BCR), and Becton Dickinson (BDX).
Infinera (INFN): Cramer doesn't want to be in this stock because he doesn't like the optical sector.
Southern Copper (PCU): Cramer is bullish on this stock, but he thinks Freeport McMoran (FCX) is better since it's cheap and he thinks it will be taken over soon.
Nordstroms (JWN): Cramer thinks this stock should go up to $36, so he would buy the stock here.
E*Trade (ETFC): Cramer thinks you will get hurt if you try to invest in this stock. He is bearish.
Anthracite Capital (AHR): This is a residential REIT, so Cramer is bearish. He recommended the caller buy Annaly Capital (NLY) instead.
Anadarko Petroleum (APC): Cramer thinks this stock is terrific, along with Apache (APA), Devon (DVN), and XTO (XTO).
Trane (TT): Cramer said he has been looking at this stock and was actually going to recommend it later tonight, but he has second thoughts about it because of its residential construction exposure. He still thinks it is a well run company.
Northern Trust (NTRS): Cramer thinks this and State Street (STT) are the best run financial institutions in the country, so he wants to recommend both of them.

Labels: ABT, AHR, APA, APC, BAX, DVN, ETFC, FCX, INFN, Jim Cramer, JWN, Lightning Round, Mad Money, NLY, PCU, STT, TT NTRS, XTO

On Monday's show, Cramer started with his reasons that the market has not hit a bottom yet. He does not think that the Fed will continue to cut rates, and that mortgages and weak consumers will hurt stocks. Cramer thinks this is a time to preserve capital, not go on the offensive in this market.
Cramer then went to the phone lines. The first caller asked whether options expiration will cause the market to fall further, and Cramer said that he thinks tomorrow is the time to pick up some of the good stocks that have been hit the hardest over the past few days. Second caller asked Cramer how a weak dollar helps the economy, and what companies are in the best position to take advantage of it? Cramer said that he thinks the dollar is about to bottom, so he doesn't want anyone to try and profit off of a weak dollar now. The next caller asked if now is the time to buy a stock like Sandridge (SD), and Cramer said that he wants you to buy high quality oil stocks that pay high dividends before looking at a stock like that one.
Cramer then gave his pick for a stock that could give a cautious portfolio a boost when the market turns around and that stock was Apache (APA). Cramer has been pushing this stock since July, and he is still behind it because it can maintain its earning multiple. The CEO of the company was on the show to talk about the company's plans for the future, and his opinion on the price of oil.
Cramer came back fromt he lightning round and reviewed a duel between two analysts over Wyeth (WYE). One analyst upgraded the stock, and another analyst downgraded it at the same time. Cramer agrees with the analyst who upgraded the stock since he is bullish at this time. Cramer likes WYE because it is a defensive stock, people will want to own it if a recession hits, and they are buying back stock.
Mad Mail: The first email asked about E*Trade (ETFC), and Cramer said he wants people to stay away from it. The next email asked about Foster Wheeler (FWLT), and Cramer said that although it is a great company, the stock is losing momentum in this market. The next email asked about Cramer's Dow prediction, and he said that his prediction was based on the Fed cutting rates further, which they seem unwilling to do. The next email asked about NRG's (NRG) storage of spent fuel rods, and Cramer said that he should have asked the CEO that question when he was on the show. The last emailer asked about ways to profit from the reduction of the crack spread as oil prices decline, and Cramer said he thinks the best play on that idea is Marathon (MRO).
Sudden Death. In sudden death Cramer was bullish on Sirius (SIRI), Nordstrom (JWN), and Aecom (ACM). Cramer was bearish on Acadia Pharmaceuticals (ACAD).

Labels: APA, ETFC, FWLT, Jim Cramer, Mad Money, Mad MOney Recap, NRG, WYE

Trish Regan hosted. Crude oil at $95.93, up 3.5%. Bill Miller says the greatest gains in the next 5 years will be in financials. Believes that techs will plummet in the years to come. Tony Dwyer of FTN Midwest says trading is at a crossroads between slowing and recession. He says to look at tech and healthcare for investments, to favor domestic as opposed to foreign sectors. Scott Richter recommends energy stock Apache (APA). Dave Hayes and Julia Boorstin came next. They discussed Hollywood writers likely to strike for the first time since 1988. 1.2% of revenues go to writers. 90% of writers voted yes to strike at last night's writer's guild meeting. Scripted dramas will feel impact first. Main concerns are dvd and internet revenues. Likely to last through the first quarter of next year. John Harwood was next, discussing democratic candidates for 2008. He says if the democratic party wins the white house in '08, we will see many changes to business and financial sectors. Frontrunner for the democrats; Hillary Clinton was quoted saying "If I am elected president, I plan on taking money out of the pockets of big business." Donald Straszheim of Roth Capital Partners says; China Investment Corporation (CIC) will be buying into the financial sector via security firms. Donald says CIC will not affect the way these companies run. He is quoted saying: "China's financial sector is primitive and weak at best." Rick Santelli gives the Bond report saying, pre-foreclosures are influencing revenues and money transfer for the bond market. The bond market is closing on new lows today. Google was the next topic, up 5.77%. John Dvorak says there is no end in sight for the number 5 company; Google, because no one can compete. The $222 billion company is quoted as being "relentless." They are up 608% since 2004, by finding new ways to index the entire internet. 380 million people use Google everyday. Stop Trading with Jim Cramer was next. His pick is Coca-Cola Ent. Mystery death of a NY real estate agent was the closing topic. Linda Stein was found beaten to death in her apartment. She developed many big name connections as a broker and real estate agent, working with the likes of Elton John and The Ramones.

Labels: APA, cic, CNBC, Street Signs, trish regan

Bullish Calls:
Chesapeake Energy (NYSE: CHK - News): 'The whole complex of natural gas is so ridiculously too low. Just because we had a couple of months stored... CHK is a great driller. It's got great assets. I believe that natural gas will come back in vogue.'Wynn Resorts (NasdaqGS: WYNN - News): 'Look, Macau gambling is for real! I've been behind the Macau gambling... I still like Wynn.'Las Vegas Sands (NYSE: LVS - News)Apache (NYSE: APA - News): 'I like APA. It has oil, it has gas, and it's right. It's beaten down, and I would pull the trigger today! 'Schlumberger (NYSE: SLB - News): 'Do you know that Schlumberger is selling at 17x next year's earnings?... This is just a very inexpensive stock... how could I not recommend that unbelievable best-of-breed?...'Helix Energy (NYSE: HLX - News): ' ... as much as I like the HLX... If SLB's selling at 17x earnings, I mean, how could I not recommend that unbelievable best-of-breed?... 'Shaw Group (NYSE: SGR - News): ' ... don't hold me to it, but I think that's going to be good. And SGR is on a remarkable run!... Now, look, understand... We had that horrible bridge tragedy, but all of us know the infrastructure is woefully needing repair. It's SGR. The infrastructure bull market is probably the strongest market on earth!'Fluor (NYSE: FLR - News)McDermott (NYSE: MDR - News)DaimlerChrysler (NYSE: DCX - News)Boeing (NYSE: BA - News): ' ... but I am reiterating absolutely that Boeing is a buy, and the orders will trickle down. It's just that we don't have them right now.'Cisco (NasdaqGS: CSCO - News): ' ... reported a blowout quarter tonight - as we've been predicting endlessly, and finally it happened... Remember, he did announce the $5 billion buyback at the end of his last quarter... buy, buy, buy - CSCO, even above $31. 'Level 3 Communications (NasdaqGS: LVLT - News)Garmin (NasdaqGS: GRMN - News): ' ... conference call for GRMN was amazing. The guide up was huge... GRMN's a keeper! Stay with GRMN - buy, buy, buy! 'Crocs (NasdaqGS: CROX - News)Under Armour (NYSE: UA - News)Temple Inland (NYSE: TIN - News): ' ... Temple Inland remains my favorite, courtesy of Carl Icaan and his restructuring. '
Bearish calls:
Zebra Technologies (NasdaqGS: ZBRA - News): 'I personally think that the bar code business has peaked. It's just not exciting to me. I don't want to be in it. Don't buy, don't buy.'Haynes International (NasdaqGM: HAYN - News): '... didn't report a good quarter..., is the aerospace bull market caput?... I think that there's a big lag between when the (Boeing) Dreamliner gets built, and all of these stocks blow away their numbers... Now it's still painful ... I think this group is going to be on hold, and the better side is the defense stocks right now..'.Starbucks (NasdaqGS: SBUX - News): ' ... I want good, solid growth... and consistent growth... and SBUX can no longer give that to me. Don't buy, don't buy. At $23, I'll pull the trigger.'Juniper Networks (NasdaqGS: JNPR - News): 'I believe that CSCO is better than JNPR. I am telling you - sell, sell, sell - JNPR.'Weyerhauser (NYSE: WY - News): 'They can't deliver.'
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Labels: APA, BA, CHK, CSCO, DCX, FLR, GRMN, HLX, Jim Cramer, JNPR, Lightning Round, LVLT, LVS, Mad Money, MDR, SBUX, SGR, SLB, WYNN, ZBRA

Avoid Private Equity: Blackstone (NYSE: BX - News)
Cramer would not buy private equity firms and suggests staying away from the Apollo and KKR IPOs. A former hedge fund manager, Cramer says he knows a thing or two about private equity. He believes the stocks are too expensive and investors would be catching these names at the end of the trend. In addition, if a Democrat wins the White House, he or she will propose taxing "the heck out" of private equity and squeezing the firms dry. Cramer added there are "too many people with too much money trying to get a piece of the action." Finally, companies are taken public at the end of a cycle, and "coming public means they're selling, not buying," Cramer said.
That 80s Show: Apache (NYSE: APA - News)
This week, Cramer has been discussing his theory that once the $80 threshold is broken, a stock becomes "annointed," rises to $100 and eventually reaches $120. He added once a stock hits $100 it will only go down again if it splits. Apache is a name Cramer believes will provide support for this theory because "people will keep buying it." Oil is one of the sectors driving the market, and Apache's advantage over other oil companies is its ability to thrive in challenging areas because of its low production costs and to improve on cheap products it purchases from its rivals. Cramer adds APA is trading at only 1o times earnings; "This stock is mispriced!" Most of APA's oil reserves are in the U.S., and the company has raised its product guidance. "I would buy APA before it gets away from you," Cramer said.
Overcoming Soros: Bon-Ton (NasdaqGS: BONT - News), CVS (NYSE: CVS - News), Rite Aid (NYSE: RAD - News), Qualcomm (NasdaqGS: QCOM - News), Texas Instruments (NYSE: TXN - News), Gen-Probe (NasdaqGS: GPRO - News)
Cramer says he doesn't want people to invest like George Soros, "I want to be better than Soros!" For instance, Soros owns BONT which Cramer thinks is alright for the long term, but "short term it really stinks." Although Cramer likes Soros pick CVS after its Caremark acquisition, he prefers RAD. He would also swap Soros' QCOM for his choice, TXN. However, Cramer agrees with Soros about buying GPRO because the stock is "instant growth" with 40% market share for blood screening tests and 58% market share for chlamydia and gonorrhea tests. The company is also making deals with industry leaders such as General Electric, 3M and Millipore.
Mad Mail: Manitowoc (NYSE: MTW - News), Costco (NasdaqGS: COST - News), Casey's (NasdaqGS: CASY - News), Rite Aid (NYSE: RAD - News), Cemex (NYSE: CX - News)
Cramer agreed with a viewer that MTW fits his $80-$100-$120 theory. Since COST is a gas station as well as a retailer, he considers it a viable alternative to CASY. Cramer added he isn't concerned about RAD after the Medicaid ruling, but would let the "good times roll." Being locked in by the housing cycle is not a bad thing for those who hold CX, he said, because the company is "growing like a weed."
Published by SeekingAlpha

Labels: APA, BONT, BX, CASY, COST, CVS, CX, GPRO, Jim Cramer, Mad Money, MTW, QCOM, RAD, TXN

Summary: Barron's interviews Art Smith, head of John S. Herold energy research firm. Some key points:
Big companies have essentially stopped exploration, using profits in stock-buybacks and dividends. Eventually large companies will start pursuing those companies that hold undeveloped reserves and require capital.
Natural gas prices are low in comparison to oil. Among the most undervalued companies: Anadarko Petroleum Corp. (NYSE: APC - News), Chesapeake Energy Corp. (NYSE: CHK - News), Apache Corp. (NYSE: APA - News), EnCana Corp. (NYSE: ECA - News) and Canadian Natural Resources Ltd. (NYSE: CNQ - News).
He's 'crazy' about oil-sands reserves, and is 'absolutely convinced' big players Suncor Energy Inc. (NYSE: SU - News) and Nexen Inc. (NYSE: NXY - News) will be acquired by big companies. "Buy some and put it in your kids' or your grandkids' account and just forget about it."
He recommends writing covered calls on cheap stocks, specifically ConocoPhillips (NYSE: COP - News) and Royal Dutch Shell .
There is a re-emergence of the master limited partnership [MLP}. Upstream companies that stand to benefit from the cost-depletion tax advantage: Linn Energy LLC (NasdaqGM: LINE), EV Energy Partners (NasdaqGS: EVEP), Kinder Morgan Energy Partners L.P. (NYSE: KMP - News), Enterprise Products Partners L.P. (NYSE: EPD - News) and Plains All American Pipeline L.P. (NYSE: PAA - News).
Oil prices: I'm in the camp that says we could easily have $80 oil this year.
Published by SeekingAlpha

Labels: APA, APC, CHK, CNQ, COP, ECA, EPD, EVEP, KMP, LINE, NXY, PAA, SU

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
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
MedImmune (NasdaqGS:MEDI - News). MEDI's PowerRating is 6.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Maguire Properties (NYSE:MPG - News). MPG's PowerRating is 5.
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.
Abbott Laboratories (NYSE:ABT - News). ABT'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.
Apache Corporation (NYSE:APA - News)
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.
Cognos (NasdaqGS:COGN - News). COGN's PowerRating is 7.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five 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.
Genomic Health (NasdaqGM:GHDX - News). GHDX's PowerRating is 7.
Bearish
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.
Valassis Communications (NYSE:VCI - News). VCI's PowerRating is 2.
PowerRatings are courtesy of PowerRatings.net

Labels: ABT, APA, COGN, GHDX, Hot Stocks, MEDI, MPG, VCI

Alaska Air Group Inc. (NYSE:ALK - News) said January traffic at its Alaska Airlines' unit fell 0.8% while its capacity rose 2.8%. That translated to a fall in load factor, or percentage of seats filled with paying passengers, to 66.5% from 69%. Horizon Air January traffic rose 0.3%, its capacity rose 2.6%, translating to a load factor fall to 63.3% from 64.7%.
Anadarko Petroleum (NYSE:APA - News) said it expects a charge of roughly $100 million related to Algeria's new "exceptional profits" tax, which applies when monthly average Brent Crude prices exceed $30 per barrel. The energy exploration and production company said Monday the charge represents an estimated liability for the period from Aug. 1 through Dec. 31. The Houston company expects a relief because Anadarko operates its Algerian assets under a production-sharing contract that includes a stabilization clause, which is designed to protect the investment and related asset value.
Bisys Group (NYSE:BSG - News) filed its Form 10-Q for the period ended Sept. 30, 2006, and reported net income of $14 million, compared with $13.4 million during the year-ago period. Revenue for the first fiscal quarter of 2007 was $211.5 million vs. $205.7 million.
British Airways (NYSE:BAB - News) reported a 2.8% drop in passenger traffic in January, due to flights being cancelled on the risk of a strike by its cabin crew. Its passenger load factor, a measure of passengers to available seats, dropped 3 percentage points to 69.5%. The market continues to show good demand in premium cabins. The weakness in some non-premium segments is also still a feature, the airline said.
Burger King Holdings Inc. (NYSE:BKC - News) filed to sell 20 million shares from selling stockholders, including entities managed by Bain Capital, Goldman Sachs and Texas Pacific Group. Based on its closing price of $20.28 a share on Friday, the stock offering will raise about $406 million. The offering comes after Burger King held its initial public offering of 25 million shares at $17 a share on May 18, 2006.
Columbia Laboratories' (NasdaqGM:CBRX - News) shares plummeted 69% to $1.44 in Monday morning trade after the Livingston, N.J.-based company announced late Sunday that its Phase III clinical trial of progesterone for the prevention of preterm birth did not achieve any reduction in the incidence of preterm birth at week 32, the primary endpoint. Progesterone also did not reduce the incidence of preterm birth at weeks 28, 35 and 37, the secondary endpoints of the study. Robert Mills, Columbia's chief executive, called the results "extremely disappointing."
Electronic Arts (NasdaqGS:ERTS - News) was downgraded to neutral from overweight at J.P. Morgan. The firm cited valuation and competition from a strong line up of games at its competitors. The broker added another possibility is that the industry could witness further hardware shipment cuts, which could limit demand for Electronic Arts' new titles.
Lexmark International (NYSE:LXK - News) was downgraded to reduce from neutral at UBS.
Majesco Entertainment Co. (NasdaqCM:COOL - News) said its financial statements for the fiscal year ended Oct. 31, 2006 contain a going concern modification. According to a Jan. 29 filing, the company's auditors have issued an opinion indicating that there is substantial doubt about the company's ability to continue as a going concern because Majesco has incurred net losses for the years ended Oct. 31, 2005 and 2006.
The McClatchy Co. (NYSE:MNI - News) was cut to market perform from outperform at Wachovia, which cited valuation and the continuing challenges in the advertising market, especially in the real estate category. "When we initiated coverage of the stock with an outperform rating, we thought the company would be able to increase its estimated cost savings related to the Knight Ridder deal. However, we now think any upside will be more than offset by revenue declines," Wachovia said. "While the stock has been weak, we think continued downward revisions of consensus estimates will make it difficult for the stock to trade materially higher," it added.
Midas Inc. (NYSE:MDS - News) said it plans to record a charge of $1.9 million in the fourth quarter related to closing six unprofitable company-owned shops in Florida. The company also said it expects a decline in U.S. comparable shop sales of 1.7% for the fourth quarter and 1.5% for the full year, citing lower advertising than in the year-ago period.
Nathan's Famous Inc. (NasdaqGM:NATH - News) reported third-quarter earnings of $1.1 million, or 17 cents a share, up from a year-ago profit of $770,000, or 12 cents a share.
NewMarket (NYSE:NEU - News) shares fell after the Richmond, Va.-based maker of chemical additives late Friday reported fourth-quarter net earnings of $4.5 million, or 26 cents a share, down from $11.1 million, or 64 cents a share, in the year-ago period. Excluding special items, the company posted a per-share profit of 60 cents vs. 46 cents. Revenue rose to $306.2 million from $293.7 million.
Overstock.com (NasdaqGM:OSTK - News) filed a lawsuit in the Superior Court of California, County of San Francisco seeking damages of $3.48 billion against a group of companies it says control over 80% of the prime brokerage market. The company also reported a fourth-quarter loss that widened to $40.7 million, or $1.92 a share, from $6.28 million, or 33 cents a share, a year earlier, hurt by lower revenue and increased expenses. The Salt Lake City-based online closeout retailer said revenue fell 6% to $297.5 million from $318 million a year earlier on lower traffic rates and smaller gross margins. Analysts polled by Thomson Financial expected, on average, a fourth-quarter loss of 85 cents a share on revenue of $305.7 million.
PMI Group (NYSE:PMI - News) said fourth-quarter net income fell 7% to $100.5 million, though earnings per share rose 7% to $1.19 a share, in line with analyst forecasts. Revenue rose 12% to $318 million. The profit declines amid loss reserve additions in U.S. mortgage insurance operations and an increase in total incurred losses in PMI Australia.
Regal-Beloit Corp. (NYSE:RBC - News) reported fourth-quarter earnings of $23 million, or 68 cents a share, up from a year-ago profit of $20.3 million, or 63 cents a share. Net sales slipped 2.5% in the latest three months to $366.6 million from $376.2 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 68 cents a share in the December period.
Royal Caribbean Cruises (NYSE:RCL - News) said fourth-quarter net income for the three months ended Dec. 31 rose to $46.6 million, or 22 cents a share, from a loss of $3.6 million, or 2 cents a share in the year-ago period. Revenue rose to $1.15 billion from $1 billion. Analysts surveyed by Thomson Financial forecast earnings of 20 cents a share and revenue of $1.16 billion, on average. The cruise line expects first-quarter income of 3 to 8 cents a share. The current analyst estimate is 32 cents a share. For the full year, Royal Caribbean forecast earnings of $3.05-$3.20, compared to the analyst estimate of $3.15 a share.
State Street Corp. (NYSE:STT - News) has agreed to buy Investors Financial Services Corp. (NasdaqGS:IFIN - News) for around $4.5 billion in stock. Investors Financial shareholders will receive 0.906 shares of State Street common stock for each share held, based upon the closing price of State Street common stock on February 2. Approximately 62 million State Street common shares will be issued in the transaction. The transaction is expected to be dilutive to State Street's operating earnings in 2007, neutral to earnings in 2008 on an operating basis, lift earnings in 2008 on a cash basis and lift operating earnings in 2009, based on anticipated pre-tax cost savings of approximately $345 million to $365 million during the first two years following closing. State Street expects to take restructuring charges of between $625 million to $675 million.
Transmeta Corp. (NasdaqGM:TMTA - News) shares tumbled after the company said it's streamlining its operations to focus on its core business of intellectual property licensing. The company plans to decrease its workforce by roughly 39% as part of the restructuring, shedding about 75 employees, mostly in its engineering services businesses.
Unitrin Inc. (NYSE:UTR - News) reported fourth-quarter net earnings of $61.6 million, or 91 cents a share, down 29% from $86.7 million, or $1.26 a share, in the year-ago period. Revenue at the Chicago-based financial services company rose to $763.9 million from $755.9 million.
YRC Worldwide (NasdaqGS:YRCW - News) was downgraded to neutral from outperform at Credit Suisse.

Labels: ALK, APA, BAB, BKC, BSG, CBRX, COOL, ERTS, LXK, MDS, MNI, NATH, NEU, OSTK, PMI, RBC, RCL, STT

Active Power (NasdaqGM:ACPW - News), in a preliminary report due to an ongoing stock option grant review, said fourth-quarter revenue rose 60% to $8.3 million. Prior to any impact from the review of the Company's historical option-granting procedures, the gross margin percentage was below the guidance provided at the commencement of the quarter and was approximately break-even for the quarter, it said. First-quarter revenue is seen between $6 million and $7 million, and it expects to lose 8 cents to 10 cents a share, excluding any stock option impact. The power supply company intends to issue full results for the quarter and year and to file its Annual Report on Form 10-K as soon as practicable after completion of the option review.
Amazon.com (NasdaqGS:AMZN - News) reported its profit dropped by half, even while sales rose 34%, as the company lost the benefit of a large tax gain it had a year ago and saw its operating margin narrow.
Amtech Systems Inc. (NasdaqGM:ASYS - News) agreed to sell 2.6 million shares in a public offering at $7.05 a share. The firm, which manufactures equipment for the semiconductor industry, said it expects to generate net proceeds of around $16.5 million, or $19.3 million if over-allotment options are exercised. Amtech added it intends to use the proceeds for working capital or possible acquisitions connected to the planned expansion of its solar and semiconductor business. The offer is expected to close Feb. 6.
Anadarko Petroleum Corp. (NYSE:APC - News) agreed to sell its interests in certain natural gas properties in Oklahoma and Texas to Exco Resources Inc. (NYSE:XCO - News) for $860 million. The company said the sale is effective Jan. 1, 2007, and that it anticipates the deal will close during the second quarter. Anadarko said about 155 fields were included in the sale, producing about 103 million cubic feet equivalent of natural gas per day from more than 1,300 wells as of the end of the year.
Angiotech Pharmaceuticals (NasdaqGS:ANPI - News) narrowed its fourth-quarter loss to $11.7 million, or 6 cents a share, from $51.3 million, or 50 cents a share. Excluding one-time items such as restructuring costs, the company earned 14 cents a share, compared with 16 cents a share from a year ago. Analysts, on average, forecast earnings of 15 cents a share, according to a survey taken by Thomson Financial. Revenue rose to $93.3 million from $43.8 million a year ago. The company expects first-quarter adjusted earnings of 4 to 5 cents a share and 2007 earnings of 40 to 50 cents a share. Analysts expect earnings of 14 cents a share in the quarter and 68 cents a share for the year.
Apache Corp. (NYSE:APA - News) was downgraded to hold from buy at Citigroup.
Arch Coal (NYSE:ACI - News) swung to a fourth-quarter profit, boosted by a larger percentage of metallurgical coal sales and the roll-off of lower priced sales contracts. The St. Louis coal mining and transportation company had fourth-quarter net income available to common shareholders of $79.5 million, or 55 cents a share, compared with a loss of $1.04 million, or 1 cents a share, a year earlier. Arch said revenue for the quarter ended Dec. 31, fell 0.2% to $618.4 million from $619.8 million a year earlier. Analysts surveyed by Thomson Financial expected, on average, earnings of 39 cents a share on revenue of $649 million. In addition, Arch said it expects 2007 earnings of $1.25 to $2 a share, and adjusted earnings before interest, taxes, depreciation and amortization of $530 million to $650 million.
Avid Technologies (NasdaqGS:AVID - News) was downgraded to underweight at J.P. Morgan.
Baldor Electric Co. (NYSE:BEZ - News) reported fourth-quarter net earnings of $12.2 million, or 37 cents a share, compared with $13.1 million, or 39 cents a share, in the same period last year, as expenses rose.
Bookham Inc. (NasdaqGM:BKHM - News) reported a fiscal second-quarter net loss of $21.3 million, or 31 cents a share, compared with a net loss of $11.9 million, or 28 cents a share, in the year-ago period. Revenue fell to $56.3 million from $60.7 million. Analysts polled by Thomson Financial were expecting a per-share loss of 16 cents on revenue of $57.8 million. The company expects fiscal third-quarter revenue of $44 million to $48 million.
Chevron Corp. (NYSE:CVX - News) reported fourth-quarter earnings of $3.77 billion, or $1.74 a share, down from a year-ago profit of $4.14 billion, or $1.86 a share. The San Ramon, Calif., oil and gas giant said a sharp decline in U.S. natural gas prices in the latest quarter compared to last year offset improved operating performance from its oil and gas fields and refineries, especially in the U.S. Total revenue and other income fell to $47.75 billion in the latest three months from $53.79 billion in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of $1.73 a share in the December period. The company attributed most of the sales decline in the latest quarter to the impact of an accounting rule change that requires certain purchase and sale contracts with the same counterparty to be netted for reporting.
Digene Corp. (NasdaqGS:DIGE - News) said second-quarter net income rose, as revenue gained, to $6.1 million, or 25 cents a share, from $3 million, or 14 cents a share, during the same period in the prior year. Before items, quarterly per-share income rose to 27 cents from 23 cents.
Ericsson (NasdaqGS:ERIC - News), the world's largest maker of wireless networks, on Friday said fourth-quarter net profit rose 14% to 9.73 billion Swedish kronor ($1.4 billion), or 0.61 krona a share, from 8.54 billion kronor, or 0.54 krona a share, a year earlier. Sales climbed 18% to 53.7 billion kronor. Consensus analyst forecasts were for earnings of 0.55 krona a share on sales of 53.8 billion kronor, according to a survey by SME Direkt. Operating margin for the quarter was flat from the year-ago period at 22.7%. Ericsson's board proposed a dividend of 0.50 krona a share for 2006.
Gap Inc. (NYSE:GPS - News) named Marka Hansen, a 20-year veteran of the company who heads its Banana Republic unit, to lead the largest and most important division, the Gap stores.
GMX Resources Inc. (NasdaqGM:GMXR - News), the Oklahoma City natural-gas producer, is offering 2 million shares at $34.82. GMX shares closed on Thursday at $36.83. The company said in a statement that it would use what it expects to be about $65.5 million of net proceeds from the deal to fund its drilling program and for general purposes. Subject to conditions, the deal is set to close around Feb. 7, GMX said.
Illumina Inc. (NasdaqGM:ILMN - News) reported fourth-quarter net earnings of $17.1 million, or 34 cents a share, compared with $326,000, or a penny a share, in the same period last year, as product revenue almost tripled. Excluding non-cash stock-based compensation, the San Diego-based maker of tools for genetic analysis posted per-share earnings of 42 cents. Total revenue rose to $60.4 million from $23 million. The company sees 2007 per-share earnings of about 86 cents, excluding items, on revenue of $295 million to $315 million. For the first quarter, Illumina expects per-share earnings of about 16 cents, excluding items, on revenue between $64 million and $68 million.
IMS Health Inc. (NYSE:RX - News) reported fourth-quarter net earnings of $65.5 million, or 32 cents a share, down 27% from $89.4 million, or 38 cents a share, in the same quarter a year earlier. Revenue totaled $543.5 million in the latest quarter compared with $477.7 million last year.
InfoSpace Inc. (NasdaqGS:INSP - News) reported fourth-quarter net earnings of $30 million, or 91 cents a share, compared with $37.9 million, or $1.13 a share, in the same period last year, as expenses rose.
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8x8 Inc. (NasdaqCM:EGHT - News) shares slid after the Santa Clara, Calif.-based provider of internet-based telephony products posted a fiscal third-quarter net loss of $3.06 million, or 5 cents a share, vs. a net loss of $6.79 million, or 12 cents a share, for the same period last year. Excluding stock-based compensation, the company posted a loss of 4 cents a share. Revenue rose to $13.2 million from $8.48 million.
Alliance Data Systems Corp. (NYSE:ADS - News) said fourth-quarter net income rose, as revenue gained, to $39.6 million, or 48 cents a share, from $31.3 million, or 38 cents a share, during the same period in the prior year.
Andrew Corp. (NasdaqGS:ANDW - News) swung to fiscal first-quarter loss of $2.55 million, or 2 cents a share, from year-earlier net income of $14.8 million, or 9 cents a share. The maker of communications systems said loss for the latest quarter reflects an aggregate charge of 10 cents a share for restructuring, amortization, litigation costs and a provision for a quality issue. First-quarter total sales increased to $522.2 million from $514.7 million, as wireless-infrastructure sales increased 3% to $499 million. Analysts surveyed by Thomson Financial, on average, expected the Westchester, Ill., company to earn 12 cents a share on sales of $552.4 million for the first quarter ended Dec. 31. Analysts' estimates typically exclude unusual items.
Applebee's International Inc. (NasdaqGS:APPB - News) said its January system-wide domestic sales at restaurants open at least one year fell 5.8%. Comparable sales for domestic franchise restaurants decreased 5.5% for the four-week period ended Jan. 28.
Apache (NYSE:APA - News) said its fourth-quarter net income fell to $520.8 million, or $1.56 a share, from $788.2 million, or $2.35 a share, a year ago, reflecting lower gas prices. A Thomson Financial survey of analysts, on average, expected earnings of $1.60 a share for the quarter. Analysts' estimates usually exclude items.
Archstone-Smith (NYSE:ASN - News), the Denver real-estate investment trust focused on apartments, reported fourth-quarter net income fell 5.8% on 30% higher revenue. Earnings were $306.6 million, or $1.36 a share, compared with $325.4 million, or $1.52, in the year-earlier period. Per-share funds from operations reflecting gains and losses rose 5% $1.46 from $1.39. In 2007, the company expects to earn $2.20 to $2.50 a share and report FFO of $2.24 to $2.38.
Comcast Corp. (NasdaqGS:CMCSA - News) said fourth-quarter net income for the three months ended Dec. 31 nearly tripled to $390 million or 18 cents a share, from $133 million, or 6 cents a share in the year-ago period. Income from continuing operations rose to 20 cents a share from 5 cents a share. Adjusted income in the latest quarter was 21 cents a share. Operating cash flow increased to $2.59 billion from $2.04 billion. Revenue climbed to $7.03 billion from $5.42 billion. Analysts surveyed by Thomson Financial forecast earnings of 24 cents a share and revenue of $7.13 billion. For 2007, Comcast (NasdaqGS:CMCSK - News) forecasts consolidated revenue growth of at least 11% on an adjusted basis and consolidated operating cash flow growth of at least 13%.
CRM Holdings Ltd. (NasdaqGS:CRMH - News) said it expects fourth-quarter earnings of 23 to 27 cents a share for the fourth quarter, including charges of 11 cents a share and gains totaling 14 cents a share. For the year ended Dec. 31, the company sees earnings of 87 to 89 cents a share. The current average estimate of analysts polled by Thomson Financial is for a profit of 24 cents a share in the December quarter.
Gevity HR (NasdaqGS:GVHR - News) shares slipped after the company said it expects revenue of about $156 million for the fourth quarter, lower than a previous forecast for revenue of between $167 million and $177 million due to higher client attrition and lower client production than anticipated.
Goodrich Corp. (NYSE:GR - News) reported fourth-quarter earnings of $98.9 million, or 78 cents a share, up from a year-ago profit of $69.6 million, or 56 cents a share. Sales rose in the latest three months to $1.54 billion from $1.4 billion in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 67 cents a share in the December period on revenue of $1.49 billion. Looking ahead, the Charlotte, N.C., aerospace and defense systems provider lifted its outlook for fiscal 2007 to earnings of $2.95 to $3.15 a share from a prior projection of $2.90 to $3.10 a share. It sees sales of between $6.2 billion and $6.4 billion for the year. Wall Street's current consensus estimate is for earnings of $3.06 a share in 2007.
Hanesbrands (NYSE:HBI - News) said net income in the quarter ending Dec. 30 fell 78% to $23.8 million as sales fell 4.3% to $1.13 billion. The company said the fall in profit was largely due to a higher interest expense, reduced operating profit and higher income tax. Revenue was down due to weakness in the innerwear segment and the intentional discontinuance of low-margin product lines. The company said its results also include items associated with restructuring and its spin-off as an independent company. Hanesbrands was previously a division of Sara Lee Corp.
Hartes-Hanks Communications (NYSE:HHS - News) was downgraded to neutral from outperform at Robert W. Baird.
JDS Uniphase (NasdaqGS:JDSU - News) shares slid after the fiber optics networking company said it swung to income in the second quarter of $23.2 million or 10 cents a share. During the same period in the prior year, the San Jose, Calif.-based company reported a net loss of $42.1 million, or 20 cents a share. Before items, quarterly per-share income was 13 cents. In the prior year's period, the pro forma per-share loss was 2 cents. JDSU said quarterly revenue rose to $366.3 million from $312.9 million in the prior year. Analysts polled by Thomson Financial were looking for $363 million. For the third quarter, the company sees revenue of $333 million to $353 million, while Wall Street is looking for $351 million.
Shares of NeuroMetrix Inc. (NasdaqGM:NURO - News) fell after the Waltham, Mass.-based medical device company reported fourth-quarter net earnings of $1.21 million, or 9 cents a share, up from $805,451, or 6 cents a share, last year. Excluding items, the company posted a per-share profit of 14 cents compared with 7 cents. Revenue rose to $14.2 million from $10.3 million. Analysts polled by Thomson Financial were expecting a per-share profit of 12 cents on revenue of $15.7 million.
Playboy Enterprises (NYSE:PLA - News) was downgraded to sector perform from outperform at RBC Capital Markets.
QuickLogic (NasdaqGM:QUIK - News) shares fell after the company posted a non-GAAP loss of $7.7 million, or 27 cents a share, for the fourth quarter, down from a year-ago equivalent profit of $3.9 million, or 14 cents a share. Revenue at the Sunnyvale, Calif., provider of programmable logic memory products dropped 28% to $34.9 million in the latest three months. Wall Street's consensus estimate was for a loss of 5 cents a share in the March period.
Rofin-Sinar Technologies (NasdaqGS:RSTI - News) shares slid after the Plymouth, Mich.-based maker of laser beam sources reported fiscal first-quarter net earnings of $11.49 million, or 75 cents a share, up slightly from $11.36 million, or 75 cents a share, last year. Revenue rose to $111.7 million from $95.4 million. Analysts polled by Thomson Financial were expecting a per-share profit of 76 cents on revenue of $105.1 million.
Semiconductor Manufacturing International Corp. (NYSE:SMI - News) swung to a fourth-quarter profit, boosted by an 80% decline in operating expenses and a $41.7 million gain on the sale of properties. The Shanghai semiconductor foundry on Tuesday posted net income of $1.33 million, or less than a penny per ADS, from a year-earlier loss of $14.8 million, or about 4 cents per ADS. Semiconductor Manufacturing said quarterly revenue rose 15% to $383.8 million from $333.1 million in the year-earlier period. Operating expenses fell to $10.6 million from $51.8 million a year earlier. Semiconductor said it expects continued growth and improved profitability in 2007. The company said it expects controlled capital expenditures of about $720 million in 2007.
SI International (NasdaqGS:SINT - News) was downgraded to market perform from outperform at Wachovia Securities.
SRA International Inc. (NYSE:SRX - News) reported second-quarter net earnings of $16.7 million, or 29 cents a share, compared with $15.9 million, or 28 cents a share, in the same period the prior year, on the back of higher revenue.
Telular Corp. (NasdaqGM:WRLS - News) said its first-quarter loss widened to $2.1 million, or 12 cents a share, from a year-ago loss of $1.3 million, or 8 cents a share. The latest results included amortization and goodwill charges of $2 million.
TJX Cos. (NYSE:TJX - News) said January same-sales rose 4%, helped by growth in most of its smaller divisions and Marmaxx's in-line performance and it expects fourth-quarter earnings from continuing operations of 48 cents to 50 cents a share. The Framingham, Mass., clothing retailer said total sales for the four weeks ended Jan. 27, increased 8% to $1 billion from $900 million a year earlier. The company also anticipates a fourth-quarter charge of about 1 cent a share related to an unauthorized intrusion into its computer system process. The company said it doesn't yet have enough information to estimate losses related to the intrusion.
Tractor Supply Co. (NasdaqGS:TSCO - News) reported fourth-quarter net earnings of $29.5 million, or 72 cents a share, compared with $30.9 million, or 75 cents a share, in the same period last year, as expenses rose.
Ultralife Batteries (NasdaqGM:ULBI - News) said it expects to report an operating loss of about $1.5 million for the fourth quarter on revenue of between $30 million and $30.5 million. The current average estimate of analysts polled by Thomson First Call is for a profit of 7 cents a share in the December period.
Under Armour (NYSE:UA - News) shares fell after the company posted a fourth-quarter profit of $11.9 million, or 24 cents a share, up from year-ago earnings of $7 million, or 8 cents a share. The latest results included a tax credit-related gain of $1 million, or 2 cents a share. Revenue rose 55% in the three-month period to $135.3 million from $87.3 million a year earlier. Wall Street's consensus estimate was for earnings of 25 cents a share.
Verso Technologies (NasdaqCM:VRSO - News) disclosed a $2 million private placement of common shares and five-year warrants.
W.P. Stewart & Co. (NYSE:WPL - News) said Chairman William Stewart is returning to the chief executive officer post at the company, replacing John Russell, who served in the role on an interim basis. In addition, Merrill Lynch downgraded the stock to sell from neutral, citing a drop in assets under management.
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