Jim Cramer Blog

Not a Borrower but a Lender Be: Cash America International (NYSE: CSH - News), Advance America, Cash Advance Centers (NYSE: AEA - News), New Century (NYSE: NEW - News) and NovaStar (NYSE: NFI - News)
"Where others see catastrophe, I see opportunity," Cramer said concerning the subprime lending crisis, and suggested playing difficulties with working class loans by investing in"pawnbrokers and loan sharks." Cramer calls CSH the "largest player in pawn lending," and comments the slightly risky and morally dubious AEA is "cheap, cheap, cheap." While others are spending their time and resources shorting NEW and NFI, Cramer prefers being bullish on CSH and AEA.

Rubble Stock: Chemed (NYSE: CHE - News)
Thursday's so-called "rubble stock" which Cramer thinks did not deserve the beating it took during the selloff was Chemed, a company which has a thriving Vitas hospice operation and Roto-Rooter plumbing business. Cramer likes CHE because it "blew away its numbers" right before the selloff, and although it has recovered somewhat, CHE is still low enough to buy. CHE jumped $7 in one day, and shed $2 during The Fall, and although the drop was not significant, Cramer still believes CHE is "immunized" against downside and he would buy it before "it gets its mojo back."

Sell Block: Fortress (NYSE: FIG - News), Goldman Sachs (NYSE: GS - News), Melco PBL Entertainment (NasdaqGM: MPEL), IPG Photonics (NasdaqGM: IPGP), Wynn (NasdaqGS: WYNN), Las Vegas Sands (NYSE: LVS - News), Artes Medical (NasdaqGM: ARTE), Switch & Data Facilities (NasdaqGM: SDXC), Aero Vironment (NasdaqGM: AVAV), Opnext (NasdaqGS: OPXT)
Cramer dedicated Thursday's Sell Block to tracking the success and failure of recent IPOs. He suggested selling FIG and buying GS instead. He would also sell MPEL and IPGP "on any strength," and admitted that Meclo was an "unmitigated disaster," and apologized for backing it, saying he "extrapolated" his bullishness from the success of WYNN and LVS in Macau. Cramer was glad he didn't recommend ARTE, because the company is not thriving, but would buy SDXC which is cheaper than its rivals and will have a "positive news flow in the near term." He also likes AVAV as a defense play and would pick up OPXT, but only when it dips.
CFO Interview: Rick Lindner, AT&T (NYSE: T - News)
Cramer asked CFO Rick Lindner how the company was able to put cash into AT & T Wireless, continue to develop and build its network and raise its dividend simultaneously. Lindner replied, "First of all, we've done three large acquisitions in the past three years," which have resulted in "tremendous opportunities for merger synergies. And those synergies are driving double-digit growth." He also commented on new products and growth in wireless and data. Although Cramer usually discourages a "buy and hold" strategy, he said investors "can buy AT&T and put it away," because it is well-run and has a solid yield.
Published By SeekingAlpha

Labels: AEA, ARTE, CHE, CSH, FIG, GS, Jim Cramer, LVS, Mad Money, NEW, NFI, SDXC, WYNN

Apple Computer (NASDAQ:AAPL - News) shares slid after a news report suggested that some company officials may have falsified stock-option documents in the past to maximize profits for executives. The news report, which appeared on the Web site Law.com, said federal prosecutors are examining the documents to determine whether criminal charges should be filed. The story cited "individuals familiar with the case who requested anonymity." The report also said Chief Executive Steve Jobs has decided that he needs to hire his own attorney to deal with the Justice Department and Securities and Exchange Commission. Until now, Jobs has been represented by the company's outside law firm. Apple has previously said that its own internal investigation has found no misconduct by Jobs or other senior executives.
Artes Medical (NASDAQ:ARTE - News) said the underwriters of its initial public offering have exercised in full an over-allotment option to purchase an additional 690,000 common shares for $6 each.
Baldwin Technology Co. (AMEX:BLD - News) disclosed plans for a restructuring in order to integrate its recently acquired Oxy-Dry Group with existing operations. The Shelton, Conn., maker of offset printing press accessories and controls said Oxy-Dry's business has been slower than expected and it believes it will substantially complete the plan in its current fiscal year ending June 30. Baldwin expects the total cost of the plan to be about $4.6 million with $1 million being recorded as a pre-tax charge in its fiscal second quarter ending Dec. 31 and the remaining $3 million to be recorded as liabilities in the acquisition's purchase price. The company anticipates annual savings of about $3.7 million from the plan.
Euro Tech Holdings Co. Ltd. (NASDAQ:CLWT - News) posted interim results for the six months ended June 30, saying its net loss totaled $73,000 in the period, wider than a loss of $46,000 in the year-ago equivalent period. Revenue fell 11% in the period to $12.4 million from $13.9 million last year. The company said the performance was expected because more and more foreign suppliers and manufacturers are seeking to sell their products directly in China, which is making it "more difficult to operate each day." The company added that it's signed a letter of intent to purchase a 20% equity interest in the Tianlian Desulfurization and Dust Removal Co. Ltd. for a maximum of $4.5 million as part of its plans to expand into the air pollution control business.
Telik (NASDAQ:TELK - News) shares extended their decline following Tuesday's news of disappointing clinical trial news for its anti-cancer drug candidate.
Wolverine Tube (NYSE:WLV - News) said the New York Stock Exchange plans to suspend trading in the company's stock before the opening on Jan. 3, and begin delisting procedures.
By Michael Baron

Labels: AAPL, ARTE, BLD, CLWT, TELK, WLV