Jim Cramer Blog

Breaking Up is Good to Do: Citigroup (NYSE: C - News)
The best thing C could do, according to Cramer, other than ridding itself of "Clown Prince" [CEO Chuck Prince] is to split itself up; "I think the one-stop shop for everything financial doesn't work." Cramer predicts if C breaks up into five businesses, the stock will jump from from $54 to $63. However, since such a move is not definite, Cramer warns investors of the "calculated risk" involved in buying C.
CEO Interview, Mary Sammons of Rite Aid (NYSE: RAD - News)
Cramer observed the company is 50% up from last year, expects more upside on the close of its Eckerd deal, and says it is "striking distance" from Walgreen. When he asked Mary Sammons about the benefits of the acquisition, she replied, "We believe there are even greater margin and revenue opportunities not included in our forecast." On the subject of the company's debt, Sammons commented cash flow created by the purchase of new stores will help RAD balance its budget. Cramer is still bullish on RAD and predicts it will reach $8 or $9.
Sparkling Clean Ingredients: Colgate - Palmolive (NYSE: CL - News) and Procter and Gamble (NYSE: PG - News)
In Latin America, Chinese-produced toothpaste was found to have DEG, a chemical used in antifreeze which should not be consumed even in trace amounts, according to the FDA. This is good news for CL, which Cramer preferst to PG because CL has a larger international presence. In addition, Cramer comments CL is a "leaner, meaner company" which should grab substantial market share from "lumbering giant" PG.
Mad Mail: aQuantive (NasdaqGS: AQNT - News), Raser Technologies (NYSEArca: RZ), Corning (NYSE: GLW - News)
Cramer told a viewer he would sell AQNT since it has been taken over. Responding to another question, he said RZ is too speculative and he would buy GLW instead.
Published by SeekingAlpha

Labels: AQNT, C, CL, GLW, Jim Cramer, Mad Money, PG, RAD, RZ

Microsoft (NasdaqGS: MSFT), aQuantive (NasdaqGS: AQNT), Yahoo (NasdaqGS: YHOO): Cramer calls MSFT's bid to buy AQNT at $6 billion a "game changer," and he doesn't see any reason why it wouldn't also buy YHOO for $50 billion. The bid may usher in the beginning of a "land grab against Google." While Cramer wouldn't buy a down company solely because of a potential takeover, he notes YHOO has great traffic and thinks the stock could reach $34 immediately if CEO Terry Semel takes a "permanent vacation."
Verizon (NYSE: VZ), Dicks Sporting Goods, (NYSE: DKS), UnderArmour (NYSE: UA): Cramer wished a good weekend to the Citigroup analyst who upgraded VZ, but added he is "late," and the good news at the company is not new. Cramer predicts DKS' conference call will indicate a comeback for UA which is "done going down."
Baker Hughes (NYSE: BHI), Canetic Resources Trust (NYSE: CNE), Nabors (NYSE: NBR - News), Halliburton (NYSE: HAL), Grant Pridecos (NYSE: GRP), Grey Wolf (AMEX: GW): On BHI's report of rising rig counts, Cramer sees a growth in natural gas drilling which had been "written off," and he would take a look at CNE, NBR, HAL, GRP and even GW.

Labels: AQNT, BHI, CNE, DKS, GRP, GW, HAL, Jim Cramer, Jim Cramer's Stop Trading, MSFT, NBR, UA, VZ, YHOO

Symbol
Name
Last Trade
Change
Volume
Related Info
OMR
ODYSSEY MARINE EXPL
8.32 May 18
3.72 (80.87%)
8,532,200

AQNT
AQUANTIVE INC
63.79 May 18
27.92 (77.84%)
45,226,978

CHIP
VERICHIP CORPORATION
5.76 May 18
1.43 (33.03%)
410,235
IOX
IOMED INC
2.61 May 18
0.62 (31.16%)
387,800
QTWW
QUANTUM FUEL SYS
1.51 May 18
0.33 (27.97%)
1,538,830
TONE
TIERONE FINL CP
31.40 May 18
6.48 (26.00%)
1,297,926
DSTI
DAYSTAR TECHNOLOGIES
4.59 May 18
0.89 (24.05%)
697,111

OMTR
OMNITURE, INC.
19.13 May 18
3.36 (21.31%)
2,468,913
ADST
ADSTAR INC
1.90 May 18
0.33 (21.02%)
181,751

TRMP
TRUMP ENTERTAINMENT
15.80 May 18
2.73 (20.89%)
4,253,773

NM-WT
NAVIOS MARITIME WTS
5.29 May 18
0.89 (20.23%)
731,100

ENOC
ENERNOC, INC.
31.13 May 18
5.13 (19.73%)
4,176,973

URZ
URANERZ ENERGY CORP
6.13 May 18
1.00 (19.49%)
1,540,650

THK
THINK PARTNERSHIP
2.80 May 18
0.44 (18.64%)
2,011,400
SUF
SULPHCO INC
4.29 May 18
0.65 (17.86%)
617,244

JRCC
JAMES RIVER COAL NEW
13.68 May 18
2.06 (17.73%)
3,999,268

INOC
INNOTRAC CORP
3.03 May 18
0.45 (17.44%)
NPLA
INPLAY TECHNOLOGIES
1.32 May 18
0.19 (16.81%)
893,601
CTEL
CITY TELECOM(HK) L
4.62 May 18
0.66 (16.67%)
247,935

ITYC
INTEGRITY BANCSHARES
8.95 May 18
1.26 (16.38%)
41,308

Labels: ADST, AQNT, CHIP, CTEL, DSTI, ENOC, INOC, IOX, ITYC, JRCC, NPLA, OMR, OMTR, QTWW, SUF, THK, TONE, TRMP, URZ

Good economic news and continued strength in the M&A sector pushed all the major averages higher throughout the day. The Dow Jones Industrials Average set a new record close and the S&P 500 is only five points away from setting a new all-time record. A flurry of deals helped spark the rally in the overall market. Consumer confidence also helped fuel the gains on the street today. Over in the bond market, treasury prices declined, sending yields higher. The benchmark 10-year note now yields 4.81%. Over in the energy pits, crude settled up 8 cents to $64.94 a barrel, while gasoline and natural gas prices declined.
On the economic front, the U.S. Consumer Confidence Index (CCI) showed an unexpected gain in May for the first time in nearly four months. Sentiment rose to 88.7 from 87.1 in April. The average estimate on the street had expected the number to come in at 86.2 for the month. The rise was attributed to a strong stock market as well as a strong, healthy labor market. Once again, the main drag on the downside was rising gasoline prices, which continue to put a drag on consumer spending.
On the international front, China made headlines when it reported that it will begin to let its currency trade in a wider range band against the dollar (USD). The People's Republic also plans on hiking interest rates as well as raising bank reserve requirements in order to cool down the booming stock market and economy.
M&A mania continues on Wall Street, as tech titan Microsoft (Nasdaq: MSFT) agreed to acquire aQuantive (Nasdaq: AQNT) for roughly $6 billion, a premium of 85% over the closing price on Thursday. The digital marketing services and technology company fits into the software giant's strategic initiatives as it continues to compete with Google (Nasdaq: GOOG ) in the online ad space, in which Google has a dominant market share. Last month, Google made a $3.1 billion offer for DoubleClick.
Shares of hotel and casino operator Trump Entertainment Resorts (Nasdaq: TRMP) surged more than 20% on news that it has suitors for its business operations. Suitors have been rumored to be interested in the company before, but management confirmed more detailed interest in the buying of the entire business. Elsewhere in M&A, General Electric (NYSE: GE) is close to selling its Plastics division to Saudi Sabic Industries Corp for $11 billion. GE has been looking to sell its Plastics division due to the volatility of crude prices in recent years. The news sent GE shares up more than 1.2% in today's trading.
On the earnings front, shares of personal finance software maker Intuit (Nasdaq: INTU) soared 13.9% after the company reported better-than-expected earnings. Sales cracked the $1 billion mark for the fist time, as its TurboTax line of products did exceptionally well in the period just ended. Elsewhere in the equity arena, investment banks were in the upgrading mood today as several banks raised targets on a number of big-cap names. Merrill Lynch upped shares of chipmaker Intel (Nasdaq: INTC) to "buy" from "neutral," citing continued EPS growth ahead. Intel shares gained 2% on the day. JP Morgan upped shares of NYSE Euronext(NYSE: NYX) to "neutral" from "underweight," citing prospects of declining compensation expenses. Shares of telco giant Verizon Communications(NYSE: VZ) gained ground after Citigroup analyst Michael Rollins upped the shares to a "buy" from a "sell." Shares of Verizon gained 1.1% on the trading day.
We all have had fantasies about lost ships and the visions of striking it rich with treasure. Well today some lived that dream. Investors in deep sea shipwreck exploration company Odyssey Marine Exploration (NYSE: OMR) are lining their pockets with loot to the tune of 80.9% in stock appreciation. The company announced today that over 500,000 silver coins and hundreds of gold coins were collected from an old ship-wreck code-named "Black Swan." For all you technical traders out there, this one stock has finally broken out of its long-term trading range!
By the BullMarket.com Staff

Labels: AQNT, GE, GOOG, INTC, INTU, MSFT, NYX, OMR, TRMP, VZ

Symbol
Name
Last Trade
Change
Volume
Related Info
UG
UNITED GUARDIAN INC
12.80 1:06PM ET
3.35 (35.45%)
177,800

TRIS
TRI-S SECURITY CORP
3.56 1:15PM ET
0.84 (30.88%)
355,842
FREEW
FREESEAS INC
1.40 1:20PM ET
0.25 (21.74%)
65,945

GOAM
GOAMERICA INC NEW
6.75 1:20PM ET
1.27 (23.18%)
358,426

ENG
ENGLOBAL CORP
7.86 1:15PM ET
1.36 (20.92%)
1,421,900

NRVN
NATURE VISION INC
2.95 12:44PM ET
0.45 (18.00%)
28,950

ATRO
ASTRONICS CP
24.45 1:20PM ET
3.70 (17.83%)
110,878

NILE
BLUE NILE, INC.
55.70 1:20PM ET
8.35 (17.63%)
1,215,214

HRVE
HARVEY ELECTRONICS
2.39 1:17PM ET
0.73 (43.98%)
256,048

WRNC
WARNACO GROUP INC
32.25 1:20PM ET
4.26 (15.22%)
1,280,575
LIOX
LIONBRIDGE TECH
6.00 1:19PM ET
0.79 (15.16%)
1,355,846

FLA
FLORIDA EAST COAST
84.67 1:15PM ET
10.54 (14.22%)
4,373,149
FREE
FREESEAS INC
5.98 1:20PM ET
0.74 (14.12%)
265,371

GENE
GENETIC TECH SPON
5.5900 1:15PM ET
0.6780 (13.80%)
24,234

UHCO
UNIVERSAL AMERICAN
20.84 1:20PM ET
2.33 (12.59%)
2,266,924

CESI
CATALYTICA ENERGY
1.75 1:17PM ET
0.21 (13.64%)
91,818

OMPI
OBAGI MEDICAL
16.69 1:20PM ET
1.95 (13.23%)
397,851
CYDS
CYGNE DESIGNS INC
1.50 12:47PM ET
0.17 (12.78%)
35,472

HSKA
HESKA CORPORATION
2.43 1:18PM ET
0.26 (11.98%)
1,271,681

AQNT
AQUANTIVE INC
33.32 1:20PM ET
3.61 (12.15%)
8,826,624

Labels: AQNT, ATRO, CESI, CYDS, ENG, FLA, FREE, FREEW, GENE, GOAM, HRVE, HSKA, LIOX, NILE, NRVN, OMPI, TRIS, UGI, UHCO, WRNC

Green Day: Foster Wheeler (NasdaqGS: FWLT) and Shaw Group (NYSE: SGR)
Cramer declared April 2, the day the Supreme Court ruled against the EPA for not regulating carbon emissions "Green Day," and announced his decision to devote a week-long series to environmental stocks. He believes this "landmark decision" will put a "higher multiple on everything green," and suggests buying FWLT and SGR. FWLT is "a leader in fluidized bed boilers," which create fewer sulfur dioxide and nitrogen oxide emissions. He added FWLT has a low multiple and predicts it will rise from $68 to $105. Cramer thinks nuclear is the best anti-global warming fuel and likes SGR because it "has a huge inside edge on nuclear projects in the U.S. and abroad," has recently won contracts and expects to attract more in the near future. Cramer concluded these stocks should make people some mad money in a few years.

Kellogg (NYSE: K), Coca-Cola (NYSE: KO), Goldman Sachs (NYSE: GS), Capital One Financial (NYSE: COF)
Cramer doesn't regret his aversion to fearmongering, a strategy which might have won him some media praise, but would have been "painfully wrong." Instead, he is glad he recommended buying KO and K seven weeks ago. Concerning banks, "the second bottom that I called is still happening," he said and predicts analysts will start upgrading these stocks this week. He has no worries about suggesting GS, since it is a cheap financial stock which he feels will go higher. Cramer also is bullish on COF because he feels "the stigma of credit cards is going to go away."
Related: Ticker Sense wonders if GS failure to take part in last week's rally is cause for concern.
Mad Mail: ValueClick (NasdaqGS: VCLK) and aQuantive (NasdaqGS: AQNT), Steel Technologies (NasdaqGS: STTX)Although VCLK and AQNT have risen, Cramer still likes them because they are attractive takeover targets. He told another viewer no one could have predicted the STTX buyout, because the bears were focusing on the excess of steel, and Cramer predicts more consolidation in this area, which will leave only three or four companies standing.
Published By SeekingAlpha

Labels: AQNT, COF, FWLT, GS, Jim Cramer, K, KO, Mad Money, SGR, STTK, VCLK

By Any Other Name: Rosetta Resources (NasdaqGS: ROSE)
Cramer told investors to take a look at ROSE, a small, often-overlooked gas company which he says is "criminally mispriced" since it purchased Calpine Powers oil and natural gas assets for much less than they were worth. He comments ROSE is a "$35 stock, masquerading as a $21 name" and the assets it purchased were worth two and a half times the $1.5 billion ROSE paid in 2005. The one concern keeping ROSE back is Calpine's creditors may want to reclaim Calpine's assets from ROSE, but Cramer feels any attempt will fail, because " ... 'it is very hard to get this 'fraudulent conveyance' stuff." Although Cramer would wait a couple of days and use limit orders, he would definitely back up the truck and buy ROSE.
The Next Big Thing in Biotech: Incyte (NasdaqGM: INCY)
Cramer recalls how he "nailed" Nastech Pharmaceuticals in March, calls Incyte the next Nastech and "the stuff dreams are made of." With $330 million in cash, Incyte is a company that trades on hope, comments Cramer, and such companies are good investments if they are developing drugs for a variety of markets and have big end markets. Currently, INCY is producing drugs for HIV, inflammation and cancer, areas with "tremendous" potential. Although INCY has yet to see a Phase III drug, "it has potentially positive catalysts coming out soon," and Cramer would buy INCY before it releases Phase I and Phase II data later in the year. He would wait until Thursday and pick up INCY at $7.
Consolation Prizes: Valueclick (NasdaqGS: VCLK) and aQuantive (NasdaqGS: AQNT)
The real winner in the bidding war between Google and Microsoft over Doubleclick will be VCLK or AQNT, said Cramer, since the "loser" will buy either one of these companies. In addition, Time Warner and Yahoo have also been looking at VCLK and AQNT. Even if no one buys the companies, Cramer is bullish on them for their earnings alone; "The stocks can hold their own if they don't get acquired."
CEO Interview: Jordan Greenhall of DivX (NasdaqGM: DIVX)
Jordan Greenhall commented DIVX's great quarter wasn't a surprise with "strong performance" across the board. When asked to explain what his company does, Greenhall said the object is "to take Internet at the center and move it out to any device you can think of." When Cramer asked about a secondary offering, Greenhall replied DIVX is not considering that strategy right now. After the interview, Cramer said, "This stock is going higher than it did after-hours... Up 10% is not enough. This stock is rocking again."
Published by SeekingAlpha

Labels: AQNT, DIVX, Hot Stocks, INCY, Jim Cramer, Mad Money, ROSE, VCLK