Jim Cramer Blog

CFO Interview: Kevin Rauckman, Garmin (NasdaqGS: GRMN - News)
Cramer says its time to "Bernanke-proof" portfolios with growth stocks like Garmin which has seen a 42% earnings growth year over year in its second quarter. Rauckman agreed with Cramer that GRMN could sustain growth in this environment and mentioned the company recently opened a third factory in Taiwan to increase manufacturing capacity. Cramer would buy GRMN, when it pulls back from $91.20 to $85 or $87.
"No Money No Cry"
Dressed up as a Rastafarian, Cramer declared "Every little thing may not be alright," but investors still need to feel the good vibrations, in spite of the fact Bernanke is "willing to nuke the economy" to fight inflation. However, hedge funds are playing a role in the problem, since they have overstated the value of their assets and are "selling anything that moves" to cover their losses. Cramer expects the mess to return later in the month. He added growth stocks will "triumph in the end" and commented, "even the brain-dead" will get their money out of the market, otherwise: "no money, no cry."
Mad Mail: Texas Instruments (NYSE: TXN - News), American Standard (NYSE: ASD - News) and KBR (NYSE: KBR - News)
Cramer would buy TXN because the company is buying back stock "hand over fist", the TXN is not expensive and "tech is seasonably right." Concerning ASD, Cramer says he is not "flummoxed" by the stock's lackluster performance. He added he is bullish on KBR.
Published By SeekingAlpha

Labels: ASD, GRMN, Jim Cramer, Mad Money, TXN

Bullish calls:
Raytheon (NYSE: RTN - News): 'Raytheon's probably the cheapest.'General Dynamics (GDNorthrop Grumman (NYSE: NOC - News)Lockheed Martin (NYSE: LMT - News)Frontline (NYSE: FRO - News):'Yours is a winner. Frontline is a buy. I see the stock went down today, but, you know, a lot of stocks went down today. That's a good one.'UnitedHealth (NYSE: UNH - News): 'Understand, I've owned this stock for a couple of years for my charitable trust. This is precisely the kind of stock that does well on a slowdown. ... I want to buy the stock.'Norfolk Southern (NYSE: NSC - News): 'Every railroad stock has been killed. ... All of them are owned by very big hedge funds. ... People say to themselves, 'I guess all the hedge funds are getting killed.' That is not true. ... I still like the stock.'Trinity Industries (NYSE: TRN - News): 'When this mortgage mess clears up, I think Trinity comes back. I think that's the kind of stock you buy. ... I'm not backing away."'Nastech Pharmaceutical (NasdaqGM: NSTK - News): 'I would prefer, if you want to speculate, that you speculate with Nastech Pharmaceutical.'American Standard (NYSE: ASD - News): 'I frankly don't know why the market hates it so much. ... I'm stickin' by. It's painful, but I'm stickin' by it.'LKQ (NasdaqGS: LKQX - News): 'I like your company. I would stick with it.'Yamana Gold (NYSE: AUY - News): 'I'll stick with Yamana.'
Bearish calls:
Boston Scientific (NYSE: BSX - News): 'They canceled an IPO. I don't like the balance sheet. This is not my favorite company in the group. Even at $13, I'm going to reiterate that I can't get behind the medical company Boston Scientific.'Spartan Motors (NasdaqGS: SPAR - News)Jones Soda (NasdaqCM: JSDA): 'They missed the quarter. You cannot miss the quarter and be a high-multiple stock. Not only did they miss the quarter -- they missed the last quarter. ... I cannot pull the trigger. ... Jones is in the penalty box.'Limited Brands (NYSE: LTD - News): 'Here's a company that's doing absolutely everything right, but no one cares. My take is this: The Limited is too cheap, but I can't think of a catalyst to turn this stock around.'St. Joe (NYSE: JOE - News): 'I cannot be in the stock. It's just not the place to be.'WCI Communities (NYSE: WCI - News)SuperGen (NasdaqGM: SUPG - News)Coeur d'Alene Mines (NYSE: CDE - News): 'I have never been a fan of Coeur d'Alene. They always issue a lot of stock. They never seem to go anywhere.'
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Labels: ASD, AUY, BSX, CDE, FRO, Jim Cramer, JOE, Lightning Round, LKQX, LMT, LTD, Mad Money, NOC, NSC, NSTK, RTN, SPAR, SUPG, TRN, UNH

Down but Not Out
While some would see Wednesday's selloff as a sign to get out of the market, Cramer suggested thinking of the decline as a massive sale to buy good stocks at a discount. Reminding viewers of his rule: "Buy damaged stocks, not damaged goods," Cramer recommended objective stocks, which are in bull markets and are not affected by rumors rather than subjective stocks, such as brokers and banks, which are often the victims of vicious gossip.
The German Colossus: Siemens AG (NYSE: SI - News)
Cramer remarked "socialist" Europe is beating capitalist America at its own game, and discussed "The German General Electric." Siemens, a megacap conglomerate, is one of the world's largest engineering and electronic companies, and its exposure to infrastructure has been largely responsible for its rise from $82 to $147 in one year. In addition, Siemens provides communications technology, built part of the world's fastest train, and constructs airports and power plants.

CEO Interview: Fred Poses, American Standard (NYSE: ASD - News)
Poses discussed the company's upcoming spinoff of two of its three businesses; the remainder will be in the air conditioning and heating industry, which is a "great" place to be. Since the three businesses are not connected, "We think we will create more value for shareholders by splitting them up," said Poses. Cramer told viewers to use ASD's recent decline as a buying opportunity.

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Labels: ASD, Jim Cramer, Mad Money, SI

Eurovision Stock Contest: Philips Electronics N.V. (NYSE: PHG - News)
Cramer is dedicating a segment this week to European stocks because they are hot right now and, unlike American stocks, are resistant to the rising interest rates in their respective countries. He would not choose an ETF, since they do not contain best-of-breed companies, but are filled with "Eurotrash" he said. Monday's pick is PHG which Cramer says worth 20% more than its current price. In addition, this manufacturer of high-tech gear has a 20% upside, although Cramer warns investors not to pay too much for the stock.
Ride the Wild Bull: Woodward Governor Co. (NasdaqGS: WGOV - News)
Cramer says few have heard of WGOV until now, and the company is getting attention because it has doubled in the past two years. He adds the aerospace cycle is going to be long, and stocks in wild bull markets can double twice. Cramer adds WGOVis also in a double sweet spot because it has one foot in the aerospace sector and one in energy, and it resembles Honeywell and Johnson Controls combined.
Going to Pieces: American Standard (NYSE: ASD - News)
Cramer says he doesn't care about ASD's earnings report on Wednesday, and is interested in ASD because it is getting ready to spin off Wabco, its vehicle systems business, followed by its kitchen and bath business. ASD will then become Trane, a heating, ventilation and air-conditioning company. Cramer thinks its possible a private equity company will swallow ASD whole before the spin-offs, and notes Deutsche Bank has said ASD is worth $70 in spite of its $61 price tag. Cramer predicts the stock will rise $4 in the short-term, and would buy half before ASD reports on Wednesday and half on a decline.
CEO Interview: Bruce Williamson, Dynegy (NYSE: DYN - News)
Bruce Williamson discussed the difficulty of building power plants and how supply is static while demand is increasing. DYN's current power plants will benefit from "rising value and rising economic performance." Cramer said Williamson is a moneymaker and DYN should be valued not just in the short term, but based on all of its plants. "You'll get a much higher price," Cramer said.
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Labels: ASD, DYN, Jim Cramer, Mad Money, PHG, WGOV

Lights, Camera, Auction: Sotheby's (NYSE: BID)
Even though it has doubled from where he recommended it last year, Cramer still likes BID as an inflation stock and as a play on conspicuous consumption. When an inflation threat looms, it is time to pick up gold and collectibles, comments Cramer, and this auction house has seen a dramatic run up of 31% in four weeks, strong earnings growth, with numbers on the low end. While some may suspect that the huge auction in May is already priced into the stock, Cramer thinks the market is not behaving rationally, and would buy BID, sell it when the auctions begin on May 8, and pick it up again on a weakness for those who want BID as an investment.
Fertile Hopes: Mosaic (NYSE: MOS) and CF Industries (NYSE: CF)
Cramer commented the rest of the world is leaving the US behind when it comes to nuclear energy, and urged investors take a look at MOS or CF as speculative stocks. Both companies have the technology to turn phosphates from fertilizer into uranium. Although they have not been discussing this technology openly, Cramer thinks MOS and CF are being "coy" and will want to profit from uranium's rise to $113 per pound. Although Cramer wouldn't mind buying CF even after its big move, he prefers MOS, since "Mosaic is the largest producer of phosphate on earth," Cramer said. He thinks both companies are worth buying as long as uranium stays over $50 and would invest soon "before the market starts to price in the new uranium upside" for them.

Next Week's Game Plan: Saks (NYSE: SKS - News), Federated Department Stores (NYSE: FD ), Steel Dynamics Inc. (NasdaqGS: STLD), Coca-Cola Co. (NYSE: KO), Wells Fargo & Co. (NYSE: WFC) and Washington Mutual Inc. (NYSE: WM), Annaly Capital Management (NYSE: NLY), United Technologies Corp. (NYSE: UTX), eBay Inc. (NasdaqGS: EBAY), American Standard Companies, Inc. (NYSE: ASD), Harley Davidson (NYSE: HOG - News), Quest Diagnostics (NYSE: DGX), Schering-Plough Corp. (NYSE: SGP), intuitive Surgical Inc. (NasdaqGS: ISRG), Schlumberger Limited (NYSE: SLB), Grey Wolf (AMEX: GW)
While SKS and FD are down because of disappointing quarters, Cramer reiterated his suggestion to give the companies the benefit of the doubt and would buy them on Monday. He commented STLD is in a "sweet spot" and is the perfect takeover target which would buy under $45. A "total breakout quarter" is in store for KO on Tuesday, according to Cramer, who points out that KO is an ideal weak dollar stock with good prospects in Japan, and he suggests paying up to $50.85. Cramer is wary of WM and WFC which have mortgage exposure and would hedge by picking up NLY. He admits UTX "humiliated" him when it rose as he was bearish, and now that he is impressed with the stock, Cramer calls it a "gift" below $65. On Wednesday, Cramer's "favorite internet stock" and value play, Ebay reports. Cramer would buy ASD before it splits next quarter and would not be intimidated by CEO Fred Poses' selling of the stock, since the move was planned. On the other hand, HOG has too much inventory, and Cramer calls it a heartbreaking stock. Thursday a "really big day,"Cramer commented, adding Quest Diagnostics has gone up, but is still cheap. He believes the takeover rumors and says, " I don't think you can afford not to be in DGX." Cramer also likes SGP which he believes is going to $30. He sees a "blowout" coming for ISRG because of its advanced surgery technology. Finally, Cramer would get into SLB if it is below $75 on Friday, because he predicts a "monster quarter." He would own SLB for a trade up to $80. In his "Mad Mail" segment, Cramer called the land driller GW "no good" and said "You have to be offshore."
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Labels: ASD, bid, CF, DGX, Ebay, FD, GW, HOG, Jim Cramer, KO, Mad Money, MOS, SGP, SKS, SLB, STLD, UTX, WFC, WM

American Standard (NYSE: ASD - News), Fortune Brands (NYSE: FO - News): Cramer likes ASD and FO as stealth housing plays, but says any pure housing stock is going lower and is "too hard to own."
Coke (NYSE: KO - News): Coke is a great way to play the weak dollar and finally "has the wind at its back," Cramer said; "It is becoming a much-loved stock again." Cramer predicts a significant upside surprise on KO's report next Tuesday, perhaps as high as $55. He also sees the stock reaching $60 if it is successful in Japan, but more gradually, in 18 months.
Mastercard (NYSE: MA - News): Concerning MA's buyback, Cramer says it shows the company's legal problems are in the past and the IPO was priced too low. The company is also allowing some large investors to convert their stakes into shares. Up up 2% at $110, MA should go higher, says Cramer.
Published by SeekingAlpha

Labels: ASD, FO, Hot Stocks, Jim Cramer, KO, MA, Stop Trading

On the Mend: Viacom (NYSE: VIA - News), Time Warner (NYSE: TWX - News)
Cramer says that a broken stock can make a comeback only when the company is prepared to do something drastic to prove that profits are its chief concern. He is bullish on Viacom since it announced that it is cutting 250 jobs at MTV. Cramer compares this scenario to TWX's rise after selling of 18 of its magazines. The mistake Viacom has made, according to Cramer, is that it was being run like a growth company even after it stopped growing, and "became a victim of its own success" by its almost exclusive focus on a younger demographic. Since the company is more concerned about profits than growth, Cramer expects the company will deliver and adds that it is trading at a "big discount."

Lamson & Sessions (NYSE: LMS - News), American Standard (NYSE: ASD - News), Home Depot (NYSE: HD - News)
Cramer discussed the "damned up flood of money in private-equity firms" and commented that if he were working at a private equity firm, he would want to buy LMS which is a gift at $28.25. Since the raw cost of PVC piping, one of LMS' products, is "dropping like a rock," the company should benefit, and its shortfall has already been priced into the stock. LMS is part of Cramer's "private equity dream" which includes ASD's plumbing business and HD's building and supply company. If a private-equity company purchases these three, it can form a "plumbing and construction powerhouse" that could go public in a few years.

Hit or Miss: Whirlpool (NYSE: WHR - News), General Electric (NYSE: GE - News)
Cramer cited a Financial Times article reporting the most earnings misses this quarter since the third quarter of 2004, but he said that an earnings miss is not a reason to sell a stock, but can even be an incentive to buy or to hold, since most of the time, a poor report is already baked into the stock, as was the case with WHR. Cramer likes WHR because it and GE have a "virtual monopoly" on washers and dryers and that it has integrated its acquisition Maytag well. Cramer warned viewers not to buy after hours or before doing research on the stock.
CEO Interview: Michael Wilson, Agrium (NYSE: AGU - News)
Cramer commented that while many fertilizer companies see "capacity come on and new plants being built," he doesn't notice the same thing happening with AGU. Michael Wilson responded that progress has been slow since few anticipated the tight market, and the company hasn't been building new plants. However, fertilizer demand "is a major global phenomenon," he added, and the company already has 500 retail stores. Cramer is bullish on Agrium because he believes in the agricultural complex.
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Labels: AGU, ASD, GE, HD, Jim Cramer, LMS, Mad Money, TWX, VIA, WHR

On The Up and Up: Boeing (NYSE: BA - News), Ingersoll Rand (NYSE: IR - News), Caterpillar (NYSE: CAT - News), Black & Decker (NYSE: BDK - News), American Standard (NYSE: ASD - News), Alliant Tech (NYSE: ATK - News), Whirlpool (NYSE: WHR - News), Cisco (NasdaqGS: CSCO), VF Corp. (NYSE: VFC - News), Disney (NYSE: DIS - News), Bunge (NYSE: BG - News), Curtiss-Wright (NYSE: CW - News)
Cramer suggested that one should "buy high, sell higher" and recommnended stocks for which the new law of physics is "What goes up the first day must go up again and again;" BA IR, CAT, BDK, ASD and ATK. Cramer's "best bet" for the coming week is WHR since it has a "near monopoly" but low expectations, and at $92.35, he thinks the stock could go at least to $120. Cramer also likes CSCO, which is also faced with low expectations, and VFC. He added that DIS should see another rally and Bunge is ready for a comeback. In addition, CW should get a bounce from its earnings report on Thursday.
Related: Whirlpool recently sold its Hoover division.
Contrarian Stocks: Yahoo! (NasdaqGS: YHOO), Google (NasdaqGS: GOOG), eBay (NasdaqGS: EBAY)
Cramer comments on the seeming illogic of Yahoo and eBay's rise and Google's fall, but explains that it is a case of accelerating versus decelerating growth. Yahoo and eBay are both "broken stocks", but with Yahoo's Panama, there is hope for a comeback. In addition, the fact that eBay was "written off" gave its halfway decent number enough power to attract buyers. Cramer predicts that Yahoo and eBay are not finished going up. Although Google reported a "blowout quarter," its 99% growth last year has dwindled to 40%. However, Cramer says that since Google has a virtual monopoly on page search as well as a low muliple, he reiterates his prediction that the stock will go to $600, but believes it may stop at $450 first.
Related: Yaser Anwar takes a close look at Google's earnings.
New IPO: Switch & Data (SDXC), Level 3 Communications (NasdaqGS: LVLT), Equinix (NasdaqGS: EQIX), Akamai Technologies (NasdaqGS: AKAM), Apple (NasdaqGS: AAPL) and Microsoft (NasdaqGS: MSFT)
Cramer recommends picking up next week's hot IPO, Switch & Data, which is not a typical broadband company, but provides infrastructure for servers, making LVLT's work possible. Other customers include: Akamai Technologies Apple and Microsoft. Cramer is basing his predictions on EQIX's success, since it provides a similar service and doubled in 2006. He would get a into the stock through the following underwriters: Deutsche Bank, Jefferies & Co., CIBC World Markets, Raymond James, Lazard Capital Markets, RBC Capital Markets and Merriman Curhan Ford. Otherwise, he would buy the IPO for up to $20 and sell at $24.
Mad Mail: NYSE Group (NYSE: NYX - News), Halliburton (NYSE: HAL - News)
Cramer still likes NYX as would also stick with Halliburton, which he thinks is inexpensive and good.
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Labels: ASD, ATG. ATK, BA, BDK, BG, CAT, CSCO, CW, DIS, Ebay, GOOG, HAL, IR, Jim Cramer, Mad Money, NYX, VFC, WHR, YHOO

On The Up and Up: Boeing (NYSE: BA - News), Ingersoll Rand (NYSE: IR - News), Caterpillar (NYSE: CAT - News), Black & Decker (NYSE: BDK - News), American Standard (NYSE: ASD - News), Alliant Tech (NYSE: ATK - News), Whirlpool (NYSE: WHR - News), Cisco (NasdaqGS: CSCO), VF Corp. (NYSE: VFC - News), Disney (NYSE: DIS - News), Bunge (NYSE: BG - News), Curtiss-Wright (NYSE: CW - News)
Cramer suggested that one should "buy high, sell higher" and recommnended stocks for which the new law of physics is "What goes up the first day must go up again and again;" BA IR, CAT, BDK, ASD and ATK. Cramer's "best bet" for the coming week is WHR since it has a "near monopoly" but low expectations, and at $92.35, he thinks the stock could go at least to $120. Cramer also likes CSCO, which is also faced with low expectations, and VFC. He added that DIS should see another rally and Bunge is ready for a comeback. In addition, CW should get a bounce from its earnings report on Thursday.

Contrarian Stocks: Yahoo! (NasdaqGS: YHOO), Google (NasdaqGS: GOOG), eBay (NasdaqGS: EBAY)
Cramer comments on the seeming illogic of Yahoo and eBay's rise and Google's fall, but explains that it is a case of accelerating versus decelerating growth. Yahoo and eBay are both "broken stocks", but with Yahoo's Panama, there is hope for a comeback. In addition, the fact that eBay was "written off" gave its halfway decent number enough power to attract buyers. Cramer predicts that Yahoo and eBay are not finished going up. Although Google reported a "blowout quarter," its 99% growth last year has dwindled to 40%. However, Cramer says that since Google has a virtual monopoly on page search as well as a low muliple, he reiterates his prediction that the stock will go to $600, but believes it may stop at $450 first.
Related: Yaser Anwar takes a close look at Google's earnings.
New IPO: Switch & Data (SDXC), Level 3 Communications (NasdaqGS: LVLT), Equinix (NasdaqGS: EQIX), Akamai Technologies (NasdaqGS: AKAM), Apple (NasdaqGS: AAPL) and Microsoft (NasdaqGS: MSFT)
Cramer recommends picking up next week's hot IPO, Switch & Data, which is not a typical broadband company, but provides infrastructure for servers, making LVLT's work possible. Other customers include: Akamai Technologies Apple and Microsoft. Cramer is basing his predictions on EQIX's success, since it provides a similar service and doubled in 2006. He would get a into the stock through the following underwriters: Deutsche Bank, Jefferies & Co., CIBC World Markets, Raymond James, Lazard Capital Markets, RBC Capital Markets and Merriman Curhan Ford. Otherwise, he would buy the IPO for up to $20 and sell at $24.

Labels: AAPL, ASD, ATG. ATK, BA, BDK, BG, CAT, CW, DIS, Ebay, GOOG, IR, Jim Cramer, LVLT, Mad Money, MSFT, SDXC, VFC, WHR, YHOO

Better than Good: Archer Daniels Midland (NYSE: ADM - News), Boeing (NYSE: BA - News), Starbucks (NasdaqGS: SBUX)
ADM and BA saw their stocks soar because they were good, but Cramer says for great stocks like SBUX "good is not good enough," and these companies need a better-than-expected performance. Cramer invited SBUX chairman and founder Howard Schultz onto the show, and Schultz denied that the company is in trouble, and commented "If you look at the quarter, the underlying factors were so strong," he said. Schultz mentioned the hidden opportunity in the company's card growth, its plans to expand into Russia and India this summer, and the wage increase SBUX recently gave its employees. When Cramer asked about the cost of new stores, Schultz responded, "for the balance of this year, all of Starbucks real estate is done," and that all leases have been signed. Since SBUX is putting up drive-throughs and counters in rest stops, it should save money on real estate. Cramer thinks of SBUX as a good long-term stock, but sees it in terms of a 5 year rather than an 18 month investment.
Feeling at Home: Chipotle (NYSE: CMG - News), Ruth's Chris Steak House (NasdaqGS: RUTH), Darden Restaurants (NYSE: DRI - News)
Last week, when Danny Meyer, restauranteur and author of Setting the Table: The Transforming Power of Hospitality in Business, visited Mad Money, Cramer discovered the missing multiple which drives restaurant stocks higher: hospitality. This is the reason Chipotle is worth more than RUTH, which serves overpriced American meat, according to Cramer, and Red Lobster or the Olive Garden, which provide nothing unique in terms of hospitality, food or service. Although CMG is the most expensive stock of the three, the "at home" feeling it gives its customers makes the stock more valuable.

Sell Block: Boston Scientific (NYSE: BSX - News), Gilead Sciences (NasdaqGS: GILD), Laureate Education (NasdaqGS: LAUR), 3M (NYSE: MMM - News), Smith & Wesson (NasdaqGS: SWHC)
Cramer would sell BSX and suggested taking profits in GILD, but would let the rest of it ride. Since Laureate's CEO announced a leveraged buyout, Cramer would sell LAUR. Cramer regretted recommending 3M, since its quarter was "awful." He suggested selling SWHC.
CEO Interview: Fred Poses, American Standard (NYSE: ASD - News)
Cramer congratulated Fred Poses on ASD's recent rise, and Poses attributed the success to the companies treating its three business as separate. When Cramer asked if ASD was selling its kitchen and bath unit at a low, Poses responded that companies will see its value and pay for its great potential. "Unlocking shareholder value is what we look for, and you did it in one swoop," Cramer told Poses. "I'm a bull on American Standard."
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Labels: ASD, BSX, Jim Cramer, Mad Money, MMM

Bullish calls:
Yamana Gold (NYSE: AUY - News)Freeport-McMoRan (NYSE: FCX - News): 'I'm endorsing it. Let's buy some.'Cemex (NYSE: CX - News): 'They want to be a monopolist when it comes to cement. They want to own North America, and you know what? They're going to do it. Cemex even right here still goes higher.'Microsoft (NasdaqGS: MSFT): ' I have morphed into a Steve Ballmer fan. ... The stock is going to be stalled right here, but I do like it.'Hewlett-Packard (NYSE: HPQ - News)Comcast (NasdaqGS: CMCSA): 'I'm going to send you to Brian Roberts at Comcast.'Level 3 Communications (NasdaqGS: LVLT)Adobe Systems (NasdaqGS: ADBE): 'People think I'm wrong on Adobe. ... Adobe is stalled; that was a great quarter. ... I just know that it is biding time; 38 is a way station going to 45.'Halliburton (NYSE: HAL - News): 'Halliburton's quarter was good. They're buying back a huge amount of stock. 'mon back [buy]'Volcano (NasdaqGM: VOLC): 'Medical devices rock.'United Technologies (NYSE: UTX - News): '...back and bigger than ever. Heating, ventilation and air conditioning.'American Standard (NYSE: ASD - News)
Bearish calls:
American Oriental Bioengineering (NYSE: AOB - News): '...this stock is running too far. I want to do a Don'tBuy. Maybe if it comes down...'Anixter International (NYSE: AXE - News)Chesapeake Energy (NYSE: CHK - News): 'Problematic ... every time it goes up to 32, 33, we get that inevitable selling.'Mannatech (NasdaqGS: MTEX)AnnTaylor Stores (NYSE: ANN - News)

Labels: ANN, AOB, ASD, AUY, AXE, CHK, CX, FCX, HAL, HPQ, Jim Cramer, Lightning Round, Mad Money, UTX

AGL Resources (NYSE:ATG - News) reported fourth-quarter earnings of $47 million, or 60 cents a share, and said it expects a profit of $2.75 to $2.85 a share for fiscal 2007. The Atlanta-based energy services provider also said its board has approved an 11% hike in its annual dividend rate to $1.64 a share.
Alliant Techsystems (NYSE:ATK - News) reported third-quarter earnings rose 8.8% on 17% higher revenue. Earnings reached $51.2 million, or $1.53 a share, from $47.1 million, or $1.26, in the year-earlier period. Revenue rose to $900.3 million from $770 million. A survey of analysts by Thomson Financial produced consensus estimates of $1.32 a share on revenue of $844 million. ATK lifted its estimate of earnings for fiscal 2007 to $5.10 to $5.15 a share, from its previous estimate of $4.95 to $5.05. And it now estimates sales at $3.5 billion, up from an earlier estimate of more than $3.45 billion.
American Standard Cos. Inc. (NYSE:ASD - News) reported fourth-quarter earnings of $114.3 million, or 56 cents a share, up from a year-ago profit of $64.4 million, or 30 cents a share. On an adjusted basis, excluding certain items, the company earned $104.5 million, or 51 cents a share, in the latest quarter. Sales at the Piscataway, N.J., maker of air conditioning systems as well as bath and kitchen products rose to $2.7 billion in the three months ended Dec. 31 from $2.55 billion in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 51 cents a share in the December period. Looking ahead, the company forecast adjusted earnings of $3.15 to $3.25 a share for fiscal 2007 on sales growth of about 8%. For the first quarter, it sees adjusted earnings of 48 to 52 cents a share with sales rising about 6%. Wall Street's current consensus estimate is for a profit of $3.08 a share for the year and 48 cents a share in the March period. The company also announced a restructuring plan calling for the separation of its three businesses.
Archer Daniels Midland (NYSE:ADM - News) said higher prices for the biofuel offset rising corn costs in its fiscal second quarter. Overall corn processing operating profits rose $99 million for the quarter to $335 million. "Increased starch, sweetener and ethanol selling prices contributed to the earnings improvement and were partially offset by increasing net corn costs," the company said. The Decatur, Ill.-based company also said fiscal second-quarter earnings rose to $441.3 million, or 67 cents a share, from $367.7 million, or 56 cents a share, a year earlier. Revenue for the quarter ending December increased 18% to $10.98 billion from last year's $9.3 billion. Analysts surveyed by Thomson Financial had been expecting earnings of 60 cents a share and revenue of $9.52 billion, on average.
Armor Holdings Inc. (NYSE:AH - News) said fourth-quarter net income rose to $37.8 million, or $1.02 a share, from $37.6 million, of $1.04 a share, during the same period in the prior year.
AstraZeneca (NYSE:AZN - News) announced plans to cut 3,000 jobs over the next three years. It will take $500 million in charges, of which $300 million will be in cash, the drugmaker said. The company also reported that its fourth-quarter profit before tax jumped 25% to $2.1 billion, after sales climbed 14% to $7.15 billion. The Anglo-Swedish pharmaceutical said sales of its top five growth products -- Nexium, Seroquel, Crestor, Arimidex and Symbicort -- rose 23% to $3.7 billion. It hikes its dividend 32% for the year to $1.72 a share and plans to buy back $4 billion in shares during 2007. AstraZeneca said 2007 earnings are seen in the range of $3.80 to $4.05 a share, excluding the impact of U.S. sales of Toprol XL and any productivity initiatives.
Brink's Co. (NYSE:BCO - News) reported fourth-quarter net income more than doubled due to earnings from discontinued operations. Fourth-quarter net reached $126.6 million, or $2.71 a share, from $47.7 million, or 83 cents, in the year-earlier period. Shares outstanding fell 19% to 46.7 million. Earnings from continuing operations were 71 cents a share against 11 cents as profit and revenue rose in both of Brink's operating units. Revenue rose 14% to $755.9 million from $663.1 million. A survey of analysts by Thomson Financial produced consensus estimates of 62 cents of profit on $723 million of revenue.
Carbo Ceramics (NYSE:CRR - News) reported fourth-quarter earnings of $15 million, or 61 cents a share, up from a year-ago profit of $10.4 million, or 43 cents a share. Revenue rose in the latest three months to $87 million from $63.6 million a year earlier.
Celgene (NasdaqGS:CELG - News) fourth-quarter earnings rose to $22.9 million, or 6 cents a share, from $3.93 million, or a cent a share, a year earlier. The company said adjusted earnings rose to $74.5 million, or 18 cents a share, from $10.2 million, or 3 cents a share. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of 18 cents a share on revenue of $268.4 million. The Summit, N.J., pharmaceutical company said total revenue rose 84% to $275 million from $149.3 million in the year-ago period, helped by sales of Revlimid and Thalomid. Product sales rose to $251.9 million from $128.7 million.
Children's Place Retail Stores (NasdaqGS:PLCE - News) said it earned $38 million in the third quarter as sales rose 25% to $550.4 million, according to preliminary data. The figures may be revised as the company continues to work on a restatement of past results to correct the accounting for stock option grants. Same-store sales rose 14% in the quarter, the Secaucus, N.J. retailer said in a statement. Thomson Financial was looking for sales of $548.5 million. The company said it now expects net income of $45 to $48 million in the fourth quarter. For January, same-store sales are expected to decline at a mid-single digit rate at its Children's Place stores and rise at a pace in the mid-twenties at Disney stores. For fiscal 2007, the company is expecting earnings of $3.55 to $3.65 a share.
Christopher & Banks Corp. (NYSE:CBK - News) said it expects earnings of 7 to 8 cents a share for the fourth quarter, below Wall Street's consensus estimate for a profit of 14 cents a share. The Minneapolis-based women's clothing retailer said aggressive markdowns in the quarter led to lower average unit retails.
Clorox (NYSE:CLX - News) said its second-quarter earnings rose 16%, boosted by record sales of its Fresh Step cat litter, higher sales of Kingsford grilling products and increased shipments of home-care products in Mexico and Argentina.
Concur Technologies Inc. (NasdaqGM:CNQR - News) reported first-quarter net earnings of $993,000, or 2 cents a share, up 53% from $648,000, or 2 cents a share, during the year-ago period. There were 40.2 million shares outstanding during the quarter compared with 36.5 million a year ago.
Cutera (NasdaqGS:CUTR - News) shares rose after the Brisbane, Calif.-based company reported fourth-quarter net earnings of $7.12 million, or 50 cents a share, up from $5.81 million, or 41 cents a share, in the year-ago period. Excluding items, earnings came in at 55 cents a share. Revenue rose to $30.5 million from $24 million. Analysts polled by Thomson Financial were expecting earnings of 41 cents a share on revenue of $30.2 million. The company expects first-quarter earning of 21 cents a share, or 28 cents a share excluding items, on revenue of $26 million, and 2007 earnings of $1.30 a share, or $1.57 a share excluding items, on revenue of $126 million.
Dell (NasdaqGS:DELL - News) named company founder Michael Dell chief executive effective immediately, to replace Kevin Rollins. The Round Rock, Texas, computer company said Dell will retain his duties as chairman.
Eli Lilly (NYSE:LLY - News) was upgraded to overweight from neutral at Prudential Equity, which cited expectations for earnings growth of around 10% over the next four years as well as an attractive current valuation. "Due to low generic exposure and what we believe is an increasingly stable base business, we see Eli Lilly growing earnings at above average rates for the next several years," Prudential said.
Elizabeth Arden (NasdaqGS:RDEN - News) posted a fiscal second-quarter profit of $26.2 million, or 92 cents a share, as sales rose 18.8% to $410.8 million. Looking ahead, the New York-based beauty products provider lifted the lower end of its outlook for fiscal 2007 earnings to $1.15 to $1.20 a share from the prior projection of $1.10 to $1.20 a share.
Gilead Sciences Inc. (NasdaqGS:GILD - News) swung to a fourth-quarter loss of $1.67 billion, or $3.62 a share. In the same period the year before, the company posted net earnings of $281.6 million, or 59 cents a share.
Green Mountain Coffee (NasdaqGS:GMCR - News) shares jumped after the company reported first-quarter earnings of $2.4 million, or 30 cents a share, down from a year-ago profit of $3 million, or 38 cents a share. On a non-GAAP basis, the Waterbury, Vt.-based coffee provider earned $3.7 million, or 46 cents a share, in the latest quarter. Looking ahead, Green Mountain sees non-GAAP earnings of $2.11 to $2.17 a share in fiscal 2007.
Helmerich & Payne (NYSE:HP - News) reported first-quarter earnings of $110.8 million, or $1.06 a share, on operating revenue of $386.4 million. In the same period a year earlier, the company earned $50.8 million, or 48 cents a share, on revenue of $255.4 million. The latest results include a gain of 15 cents a share from the sale of portfolio securities, while last year's report reflects 2 cents a share in similar gains.
Published By MarketWatch

Labels: ADM, AH, ASD, ATG. ATK, AZN, BCO, CBK, CELG, CLX, CNQR, CRR, CUTR, DELL, GILD, GMCR, HP, LLY, PLCE, RDEN

Short Busting: Waste Services (NasdaqGM: WSII)
Cramer devoted the program to short-busting, which is a technique of beating the shorts, or people who bet against a particular stock. Short-busters make money in a short squeeze, when all of the shorts try to cover their shares at once. To benefit from a short bust, Cramer suggests keeping track of a stock's average daily volume, which indicates how difficult it would be for shorts to close or cover their positions. If shorts are deep, they will bring up the price to sell with profits. Cramer also suggested taking a look at insider buying, which shows that a stock is alright. Cramer's first short-buster is WSII, which is disliked because it has high prices and low margins. Although the company seems "heinous" Cramer notes that with 1.5 million of its shares sold short and an average trading volume of 104,000 shares a day, it would take the shorts 15 days to close their positions on WSII. Since the company has "significant insider presence" and improving fundamentals, Cramer would bust the shorts and buy WSII.
Seeing Green with Greenbrier Companies (NYSE: GBX - News)
Cramer's next shortbuster is GBS, which produces and sells equipment for freight cars. Although the company did not make its quarter, has a large debt and "serious production issues," Cramer feels that the rail industry is in "a multi-year bull market." With 1.98 million shares sold short and an average daily trading volume of 519,000 shares, Cramer says that the shorts would not be able to close their positions quickly enough. Cramer notes that the company has a strong backlog for rail cars, robust insider buying, and that its acquisitions will kick in during the next quarter; he says GBX is "excellent."
The Cat is Back: Caterpillar (NYSE: CAT - News), Black & Decker (NYSE: BDK - News) and American Standard (NYSE: ASD - News)
Cramer says that the best way to play a cyclical stock is to pay next to nothing for then when it seems the economy has peaked. For instance, when the economy reached its peak last spring, CAT came tumbling after; "The drop was based on fears that its growth would slow, and the fears turned out to be true," Cramer said. However, Caterpillar reported a quarter that many found disappointing, but the stock rose, which is what happens when you "catch a real bottom," observed Cramer, who commented that its not too late to buy CAT as well as BDK and ASD, all of which are going up.
CEO Interview: Frank Sullivan, RPM International (NYSE: RPM - News)
Cramer asked about how the holding company deals with the names of its subsidiaries which produce coatings and sealants for industrial and consumer markets. Frank Sullivan replied that keeping the names of its acquisitions is an essential ingredient to RPM's success as well as its policy of maintaining the management of companies it purchases. "RPM has never let us down, and it's not going to," commented Cramer who said RPM is a triple buy.
Published by SeekingAlpha

Labels: ASD, BDK, CAT, GBX, RPM, WSII

Texas Instruments (NYSE: TXN - News), Cisco (NASDAQ: CSCO - News), Apple (NASDAQ: AAPL - News), Tellabs (NASDAQ: TLAB - News), Nortel (NYSE: NT - News), Alcatel (NYSE: ALU - News)
Cramer comments that TXN-led rally is a perfect chance to sell; "These are predictable rallies," he said. "When you have a very bad options hangover that finishes right near the end of the day, and you have a big, bad event like Texas Instruments to get through, then you're going to have a several-day rally." Cramer adds that he doesn't care for TLAB, NT and ALU, and the only two tech stock he would stick with are Apple and Cisco.
American Standard (NYSE: ASD - News) and Masco (NYSE: MAS - News) and Black & Decker (NYSE: BDK - News)
In spite of Goldman Sach's upgrade of the sector, Cramer warns that housing is being attacked by the shorts and the media, however, the "momentum of the buyers" is great. He adds that these stocks don't trade according to their fundamentals and that pin action companies such as ASD and MAS have been inching up every day. Cramer adds that Black and Decker is a buy because it has preannounced.
Schlumberger (NYSE: SLB - News), Transocean (NYSE: RIG - News), GlobalSantaFe (NYSE: GSF - News), Halliburton (NYSE: HAL - News), Hoku Scientific (NASDAQ: HOKU - News)
Cramer disagrees with an Bear Stearns call on oil which implies that SLB is clueless. He likes SLB,RIG and GSF, saying that he is usually cautious of Americna and Canadian drillers. He predicts that HAL will make an international acquisition. He calls HOKU a "trading vehicle" and says it will be a "huge short down the road." He concludes by commenting that while the President makes is seem as if he going to make a move toward alternative energy, investors will have to sell these stocks between 9:30 and 4:30 on Wednesday.
Published by SeekingAlpha

Labels: AAPL, ALU, ASD, BDK, CSCO, GSF, HAL, HOKU, Jim Cramer, MAS, NT, RIG, SLB, TLAB, TXN

Nike (NYSE: NKE - News), Under Armour (NASDAQ: UARM - News) and Adidas (Other OTC: ADDYY.PK - News)
Cramer says that Nike and UARM "just got lucky" because Reebok, owned by Adidas made a false step and decided to slash its advertising budget. Since he stresses the importance of diversification, Cramer wouldn't own both Nike and UARM, but suggests that Nike is for conservative investors and UARM is the "more aggressive high-risk, high-reward stock." When it comes to shoes, UARM only makes football cleets, but has 24% of the market share and Nike's cleet business has dropped 13%. However, Nike is marketing its soccer shoes in Europe, and is expected to deal a serious blow to Reebok. Ultimately, the choice between Nike and UARM depends on how much risk the individual investor can handle.
Sears (NASDAQ: SHLD - News), Costco (NASDAQ: COST - News), J.C. Penney (NYSE: JCP - News) and Berkshire Hathaway
Cramer cautions against bearishness in the wake of Sears' ten point drop following its earnings report, and adds "in this business, we call that a gift" and would use the decline as a chance to pick up the stock. Although bears would call Sears a "disappointing retailer" Cramer doesn't think of Sears as a retailer but as "an investment vehicle for Eddie Lampert," and for real retail, investors should look to Costco and JCP. Although he likes Sears' tools, he doesn't like the stores, but compares the stock to Berkshire Hathaway and says that it is "one of the best investments of our time" since CEO Eddie Lampert is a master money manager. "Buying Sears is like putting your money in a great hedge fund," but with less risk, remarks Cramer, adding that "It's so cheap it hurts" and to pick it up soon because it will bounce back "hard and fast."
Sell Block: Coach (NYSE: COH - News), Reader's Digest (NYSE: RDA - News), Borders Group (NYSE: BGP - News), Black & Decker (NYSE: BDK - News), Fortune Brands (NYSE: FO - News), American Standard (NYSE: ASD - News), HDFC (NYSE: HDB - News), Isis Pnarmaceuticals (NASDAQ: ISIS - News), KB Home (NYSE: KBH - News), Autodesk (NASDAQ: ADSK - News), NightHawk (NASDAQ: NHWK - News), Oil Services Holders (AMEX: OIH - News), Halliburton (NYSE: HAL - News)
Cramer likes Coach, but would take some off the table and would sell Reader's Digest, which has received a takeover bid. He also suggests taking profit in BGP and BDK, and prefers ASD and FO. Cramer would "declare victory" by selling HDFC and would ignore the hype in Isis' press release about its drugs, since it is not a buy. He would hold onto KBH and to ADSK. Cramer likes NHWK as a play on the Democrat's plan to cut healthcare, but urges investors to sell OIH and other oil service stocks except for HAL.
Mad Mail: Bunge (NYSE: BG - News), Provident Energy Trust (NYSE: PVX - News), Zumiez (NASDAQ: ZUMZ - News), Vulcan Materials (NYSE: VMC - News)
Cramer suggests picking up Bunge as a play on consumers' worry over trans-fats. He likes PVX because it has a 13% yield, although he would avoid ZUMZ because he doesn't think it will recover from its bad quarter. He still likes Vulcan at $89.
Published By SeekingAlpha

Labels: ASD, BDK, BGP, COST, HAL, HDB, JCP, Jim Cramer, Mad Money, NKE, PVX, RDA, SHLD, UARM