Jim Cramer Blog

Crocs (NasdaqGS:CROX) ended Thursday up more than 14% after the company announced a forecast for 2008 that was better than expectations. The company's first quarter profits of $0.09 per share, excluding some items, were in line with analyst estimates. The Short Term PowerRating for CROX is 5.
Better than expected same store sales helped boost shares of Wal-Mart (NYSE:WMT) though Costco (NasdaqGS:COST), which also reported strong sales, was lower on the day. The Short Term PowerRating for WMT is 6 and the Short Term PowerRating for COST is 5.
Defense contractor Alliant Techsystems (NYSE:ATK) announced fourth quarter earnings that were up by nearly 20% to $1.83 per share, beating estimates. The Short Term PowerRating for ATK is 5.
Activision (NasdaqGS:ATVI) reported quarterly earnings of $0.17 per share, more than triple analyst estimates. The Short Term PowerRating for ATVI is 5.
Questions by the Justice Department about the company's handling of a study involving its cholesterol drug Vytorin did not stop shares of Schering Plough (NYSE:SGP) from gaining nearly 3% on the day. The Short Term PowerRating for SGP is 5.
Shares of Best Buy (NYSE:BBY) slid more than 3% on news that the company has spent $2.1 billion for a stake in British consumer electronics retailer, Carphone Warehouse. The Short Term PowerRating for BBY is 4.

Labels: ATK, ATVI, BBY, COST, CROX, Hot Stocks, SGP, WMT

General Dynamics (GD), Alliant Techsystems (ATK), L-3 communications (LLL), Raytheon (RTN), Lockheed Martin (LMT) Northrop Grumman (NOC)
Faced with the prospect of an economic slowdown, investors should look to defense stocks which "are the darlings of Wall Street…regardless of how the economy is doing." Political considerations won't affect the stocks, since Republicans like to spend on defense and Democrats want to look strong. Cramer concentrated on RTN since his prior recommendations, GD, ATK, LLL, LMT and NOC have all gone up. Cramer thinks RTN can easily beat its lukewarm guidance and notes the company's "fabulous" buyback and international growth.
ConcoPhillips (COP)
The oils have crept down on news of new taxes for oil companies and are low at least compared to rising crude costs. Cramer would use any dip as a buying opportunity for a long-term investment because "there's a simple case for oil … We're running out of it." He prefers COP because it is inexpensive, sells natural gas (which Cramer believes is consistently undervalued) and is not exposed to corrupt Third World regimes.
Related: Kurt Wulff comments on COP's low price and strong cash flow.
CEO Interview: T.J. Rodgers Cypress Semiconductor (CY), Sunpower (SPWR)
Cramer said Cypress is a good stock for those nervous about semiconductors, and Rodgers discussed the company's "extraordinarily flexible" chip that can be used in an e-bike, a Nordic track and an iPod. CY recently reported a "blockbuster" quarter and is seeing an upswing in demand for its products. In addition, CY owns half of Sunpower and plans to find a way to allow shareholders to benefit from this holding after tax restrictions are removed. Cramer said CY is the "cheap way" to own Sunpower.
Related: Eric Savitz asks if Cypress'core value worth is less than nothing.
MBIA (MBI), MGIC Investment (MTG)
Cramer would be wary of making too much money at once, an indication that an investor is not diversified enough. He suggests anyone who profited from the rise in MTG and MBI last week should sell the stocks, since they are not going higher.
Published By SeekingAlpha

Labels: ATK, COP, CY, GD, Jim Cramer, LLL, LMT, Mad Money, MBI, MTG, NOC, RTN, SPWR

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.
Alliance Techsystems (NYSE:ATK - News). ATK's PowerRating is 5.
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.
J2 Global Communications (NasdaqGS:JCOM - News). JCOM's PowerRating is 4.
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. Historically, these stocks have provided traders with a significant edge.
China Telecom (NYSE:CHA - News). CHA's PowerRating is 7.
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.
Zoran Corporation (NasdaqGS:ZRAN - News). ZRAN's PowerRating is 7.
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.
Terra Nitrogen (NYSE:TNH - News). TNH's PowerRating is 9.
Bearish
5+ Consecutive Up Days: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Cheesecake Factory (NasdaqGS:CAKE - News). CAKE's PowerRating is 4.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Daktronics (NasdaqGS:DAKT - News). DAKT's PowerRating is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ATK, CAKE, CHA, DAKT, Hot Stocks, JCOM, TNH, ZRAN

Getting Defensive: Alliant Techsystems Inc. (NYSE: ATK - News)
Cramer expressed his hope that viewers took advanatage of Tuesday's morning upsurge to sell financials, brokers and housing stocks and to invest in his six wild bull markets: aerospace, minerals, infrastructure, oil, agriculture and machinery. He added a seventh wild bull market to the list: defense. Cramer believes the U.S. will be in Iraq for a long time, because both parties want to prove they are tough on security. He discussed three things that characterize a good defense stock: it's cheap, it's mostly levered to defense, and it's a U.S. company. Cramer's second favorite defense stock is ATK, a lead play which is "in almost every single projectile that the U.S. can launch at an enemy, be it a bullet or a tank round" and derives 86% of its sales from defense. ATK is cheap with an 11% long-term growth rate, and a 14.4x multiple. He added ATK is buying so much stock, it seems to be taking itself private. ATK bought back 10% of its own company last year, and a substantial increase in its orders, Cramer thinks an upside surprise is in store. He would buy half a position before and half after the company's earnings report.
Pull the Trigger on Raytheon (NYSE: RTN - News)
Cramer's favorite defense stock is RTN which is 95% levered to defense. It is cheap, with a 16x growth rate, and RTN sells as just 15x earnings; "It's just plain undervalued," Cramer remarked. RTN just won two major contracts and raised its guidance by 20 cents. In addition, RTN has been buying back stock aggressively and still has $611 million left in the repurchase authorization.
Related: Scott Sacknoff notes P/E is not the only consideration when looking at defense stocks.
CEO Interview: David Wenner B&G Foods (NYSE: BGS - News)
David Wenner discussed the company's strategy of revamping small, overlooked brands; "We focus on them and are typically successful in turning them around." Cramer recommended BGS for those who are worried about the pain caused by mortgages.
Published By SeekingAlpha

Labels: ATK, BGS, Jim Cramer, Mad Money, RTN

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Crocs (NasdaqGS:CROX - News) beat earnings on Thursday afternoon, with $0.61 EPS compared to a consensus of $0.49 EPS. CROX's PowerRating is 4.
Chesapeake Energy (NYSE:CHK - News) beat earnings on Thursday afternoon, announcing $0.87 EPS over expectations of $0.78 EPS. CHK's PowerRating is 3.
Alliant Techsystems (NYSE:ATK - News) reports earnings on Friday before the bell; watch for $1.43 EPS. ATK's PowerRating is 5.
Eastman Kodak (NYSE:EK - News) should report -$0.02 EPS before the market opens on Friday. EK's PowerRating is 5.
When KBR Incorporated (NYSE:KBR - News) announces earnings before the bell tomorrow morning, watch for $0.23 EPS. KBR does not have a PowerRating due to its short trading history.
Analysts are watching for Public Service (NYSE:PEG - News) to report $1.15 EPS on Friday morning. PEG's PowerRating is 6.
Weyerhaeuser (NYSE:WY - News) should report $0.37 EPS when the company reports earnings tomorrow morning. WY's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: ATK, CHK, EK, Hot Stocks, KBR, PEG, WY

IndyMac Bancorp (NYSE: NDE - News): No news is bad news in the case of NDE, according to Cramer who comments that selling isn't done until a subprime lending company goes under. He suspects NDE wants to pretend everything is fine, and the fact that NDE hasn't announced its dividends are suspended or hasn't given any indication of its financials is a special code for "We don't have a clue what's going on, but we'll let you know when we're out of business."
T. Rowe Price (NasdaqGS: TROW), Polo Ralph Lauren (NYSE: RL - News), Alliant Techsystems (NYSE: ATK - News), Coke (NYSE: KO - News) and Heinz (NYSE: HNZ - News): Cramer suggests being on the lookout for companies like TROW, RL, ATK, KO and HNZ which yield substantial dividends, and he notes that all of them, particularly ATK and HNZ, had really strong quarters. He also likes the fact that Coke recieved three upgrades in the last two weeks, but despairs of Wall Street's indifference.
IAC/InterActiveCorp (NasdaqGS: IACI): CEO Barry Diller has been buying back stock at $37 and $38 and is putting billions of dollars to work, comments Cramer; "but they still sell it below where he wants to buy it. I call that stupid."

Labels: ATK, HNZ, Jim Cramer, Jim Cramer's Stop Trading, KO, NDE, RL