Jim Cramer Blog

Cleveland Cliffs (CLF), BHP Billington (BHP), Freeport-McMoran (FCX), Boeing (BA), Potash (POT), Deere (DE), Schlumberger (SLB), XTO Energy (XTO)
Tuesday saw the return of Cramer's five long-term bull markets: aerospace, minerals and mining, oil and oil service, agriculture and infrastructure, and those who believe that recovery is coming ruled the day. Aerospace was lifted by BA's news that, after several delays, the delivery of the long-awaited 787 Dreamliner may come on time. News of coal and copper shortages was good for BHP Billington and Freeport-McMoran. Cramer also recommended Cleveland Cliffs. Potash rallied after a bullish interview with CEO Bill Doyle. Cramer also mentioned his favorite ag stocks, Deere, and suggested investors buy more rather than worry about the sector on the next down day. Oil is well after Bear Stearns' upgrade of SLB and XTO's strong earnings. Infrastructure got a lift from Buffett's bid to rescue bond insurers, but Cramer warned that all of these gains could disappear, given how quickly the market has been moving.
CEO Interview: David Novak, Yum! Brands (YUM)
Cramer said Yum is one of the most pro-shareholder and pro-growth companies he has seen and is impressed by YUM's aggressive moves into China. In 2007, one new store was opened in China every day and three a day were opened in December 2007. Novak said the company's performance reminds him of how McDonalds began its initial expansion in the States. Domestic growth has not been forgotten, said Novak, adding the company will concentrate on desserts, healthier offerings and new beverages.
Published By SeekingAlpha

Labels: BA, BHP, CLF, DE, FCX, Jim Cramer, Mad Money, POT, SLB, XTO, YUM

- 2007 revenues rose 8 percent to $66.4 billion
- Full-year net income increased 84 percent to $4.1 billion while EPS grew to $5.28 per share, driving cash flow to $9.6 billion
- Fourth-quarter EPS grew to $1.36 per share on revenue of $17.5 billion
- Backlog reached a record $327 billion
- 2008 EPS guidance raised to between $5.70 and $5.85 per share
Table 1. Summary Financial Results
(Millions, except 4th Quarter Full Year per share data) 2007 2006 Change 2007 2006 Change
Revenues $17,477 $17,541 (0%) $66,387 $61,530 8% Earnings From Operations $1,516 $1,152 32% $5,830 $3,014 93% Operating Margin 8.7% 6.6% 2.1 Pts 8.8% 4.9% 3.9 Pts Reported Net Income $1,033 $989 4% $4,074 $2,215 84% Reported Earnings per Share $1.36 $1.29 5% $5.28 $2.85 85% Adjusted Earnings per Share * $1.35 $1.30 4% $5.26 $3.83 37% Operating Cash Flow $1,893 $2,441 (22%) $9,584 $7,499 28%
* Non-GAAP measure. A complete definition of Boeing's use of non-GAAP measures, identified by an asterisk (*), is found on page 8, "Non-GAAP Measure Disclosure." A complete reconciliation to reported EPS is attached to this release.

Labels: BA, Boeing Co.

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Robert Half (NYSE:RHI - News) beat earnings expectations on Tuesday afternoon, reporting $0.50 EPS versus a consensus of $0.47 EPS. RHI's PowerRating (for Traders) is 4.
Altria (NYSE:MO - News) reports earnings on Wednesday before the market opens, with traders looking for $0.97 EPS. MO's PowerRating (for Traders) is 5.
Analysts will be watching for Baker Hughes (NYSE:BHI - News) to report $1.28 EPS on Wednesday morning before the bell. BHI's PowerRating (for Traders) is 3.
Boeing (NYSE:BA - News) looks set to report $1.32 EPS on early Wednesday. BA's PowerRating (for Traders) is 4.
When Dominion (NYSE:D - News) reports quarterly results on Wednesday before the bell, look for $0.56 EPS. D's PowerRating (for Traders) is 5.
Merck (NYSE:MRK - News) is aiming to announce $0.74 EPS on Wednesday morning before the stock markets open. MRK's PowerRating (for Traders) is 6.
Kellogg (NYSE:K - News) should report $0.44 EPS tomorrow morning. K's PowerRating (for Traders) is 4.

Labels: BA, BHI, D, Hot Stocks, K, MO, MRK, RHI

Here are 7 trading ideas for today. This list comes directly from the TradingMarkets Stock Indicators page and is based upon our latest quantitative research.
Bullish
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.
Overstock.com (NasdaqGM:OSTK - News). OSTK's PowerRating (for Traders) is 6.
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.
China Finance Online (NasdaqGM:JRJC - News). JRJC's PowerRating (for Traders) is 6.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
E*Trade Financial (NasdaqGS:ETFC - News). ETFC's PowerRating (for Traders) is 4.
5+ Consecutive Up Days: These are stocks that have closed up 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 close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Children's Place (NasdaqGS:PLCE - News) & Interoil Corporation (NYSE:IOC - News). PLCE's PowerRating (for Traders) is 3, and IOC's PowerRating (for Traders) is 3.
5+ Consecutive Higher Highs: 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.
Boeing (NYSE:BA - News). BA's PowerRating (for Traders) is 3.
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 (for Traders) is 2.
Published By TradingMarkets.com

Labels: BA, DAKT, ETFC, Hot Stocks, IOC, JRJC, OSTK, PLCE

On Tuesday's show Cramer gave out 5 rules for investing in the stock market. His first rule is that there is a market for everything, including the stocks themselves. He said an example was how ethanol stocks were very hot about a year ago, and then several IPOs came on the market, so there was an oversupply of ethanol stocks on the market and the entire sector went down. So the ethanol business and news didn't matter because there were too many ethanol stocks available. Cramer said another example was his recommendation of Sealy (ZZ) at its IPO where he liked the stock, but didn't realize that there was a glut of IPOs, so the IPO market was saturated and the stock tanked.
Cramer took soma calls. The first caller asked how you can know whether an IPO is a good investment or not, and Cramer said that the key is the offering price for the shares. Another caller asked if there are any sectors that Wall Street overlooks, and Cramer said that you should look for a sector that used to have 10 analysts and only has 1 or 2 now and consider that sector for a turnaround. The next caller asked about the Vonage (VG) IPO, and Cramer said that this IPO was overhyped and that they should not have let the company sell stock to its customers.
Cramer's second rule is to know what you own. Sectors don't always matter since stocks within a sector can rally without others. Industries within a sector are the key to rallies, not the sector itself. An example occurred a couple years ago when he called for a tech rally and recommended Cisco (CSCO) and Microsoft (MSFT) because they were the big tech stocks, and he should have been thinking more specifically about the gadget industry within tech, since stocks like Apple (AAPL) were up big. He also said that he wants you to do at least 1 hour of homework each week for each stock you own. He thinks you should give your money to a mutual fund if you don't have enough time.
A caller asked why you don't see big rallies in the biotech sector, and Cramer explained that biotech stocks are moved by FDA rulings, not broader industry moves. The next caller asked how to find the pin action within a sector that Cramer talks about, and he used an example where Boeing (BA) reported a great quarter, and you should look to see who makes the components of the planes they make, since their sales will rise with Boeing's. The next caller asked how to predict performance if a sector is split, like Internet search with Yahoo! (YHOO) and Google (GOOG), and Cramer said that you need to look at management and other company specific factors in that case.
Cramer's third rule is that Latin America should always be treated as a shorter term trade since Wall Street has preconceived notions about the region that prevent it from being a long term investment, and they are the ones who move the market. You should always take profits as a Latin American stock moves up so you don't get caught when the big investors move out of their trade. A caller asked how important our economy is to Chinese stocks, and Cramer said that he doesn't like to recommend Chinese stocks because he doesn't trust their economy. The other caller asked about stocks like Wal-mart (WMT) and Starbucks (SBUX) that are expanding in China, and Cramer said that Starbucks could be the next Yum! Brands (YUM) which doubled their stock price after they doubled their stores in China.
Cramer's next rule is that being a lemming is ok, but he still wants you to go your homework, but if you agree with the moves that big investors are making, then it's good to go with the momentum.
His last rule was to not be afraid to say that something is too difficult to invest or trade on. His example is restaurant same store sales, which he has been crushed on in the past since there are so many factors that contribute to the number and the reaction. He said you aren't being weak, but smart by focusing your time someplace where you can make money.

Labels: AAPL, BA, CHINA, CSCO, GOOG, IPO, Jim Cramer, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, MSFT, SBUX, VG, WMT, YHOO, YUM, ZZ

Bullish
AT&T (T),
Verizon (VZ),
Boeing (BA)- Bullish
Sears (SHLD)- bullish because they are buying back a lot of stock, they have large real estate holdings, and their earnings from Sears Canada will be strong.
National Oilwell Varco (NOV) and Transocean (RIG)- likes both.
Freeport-McMoRan (FCX),
comScore (SCOR)- recommended a couple weeks ago..still bullish.
Oshkosh Truck (OSK),
Masimo (MASI)- Cramer had the CEO on the show a couple weeks ago and he was bullish on the stock, and now Cramer agrees.
First Solar (FSLR),
SunPower (SPWR)
MEMC Electronic Materials (WFR).

Bearish
MetroPCS Communications (PCS)- thinks AT&T (T) and Verizon (VZ) are better wireless plays. Titanium Metals (TIE)- recommended Freeport McMoran (FCX) instead.
Allegheny Technologies (ATI),
Spartan Motors (SPAR)- likes Oshkosh Truck (OSK) instead.
LDK Solar (LDK)- stay away.
lululemon (LULU)- ring the register.

Labels: ATT. T, BA, FCX, Jim Cramer, Lightning Round, Mad Money Lightning Round, RIG, SCOR, SHLD, VZ

CHICAGO, Oct. 24 /PRNewswire-FirstCall/ -- The Boeing Company's (NYSE: BA - News) third-quarter net earnings increased to $1.1 billion, or $1.44 per share, from $694 million, or $0.89 per share, in the same period last year (Table 1). Third-quarter revenues increased 12 percent to $16.5 billion while earnings from operations rose to $1.5 billion, yielding a 9.1 percent operating margin. Excluding last year's charge of $0.22 per share in the period to exit the Connexion business, adjusted earnings per share* rose 30 percent.
Boeing increased its 2007 guidance for revenue, earnings per share and cash flow due to core business performance and lower corporate costs, and now expects earnings per share this year to be between $5.05 and $5.15. The company's guidance now reflects the previously disclosed revision to the 787 delivery schedule, and the 2008 EPS outlook is reaffirmed.
"Our focus on growth and productivity is driving strong financial performance across our company," said Boeing Chairman, President and CEO Jim McNerney. "With our record backlog and healthy, growing markets, the tasks at hand are to execute our programs, continue expanding our business base, and become more efficient every day."

Labels: BA, Boeing Co.

Word on the Street

Bad news from Boeing (BA) and Honeywell (HON) helped the bears. DaimlerChrysler (DAI) was hit with bad news Wednesday as the United Auto Workers are striking. Macke doesn't think the strike will impact the auto supply stocks and favors Johnson Controls (JCI) and American Axle (AXL). Seymour recommends Magna (MGA).

Dennis Gartman

Gartman says the Fed isn't concerned about inflation and will continue to cut rates. He would be a buyer on weakness in gold and sell short the U.S. dollar. He would accomplish this via the streetTRACKS Gold Trust (GLD). Seymour is still concerned about inflation.

Stents

Wednesday night news broke that the FDA advisory panel is backing drug-coated stents made by Medtronic (MDT). CNBC's Mike Huckman recommends investors look at SurModics (SRDX), Abbott Labs (ABT), Novartis (NVS) and Wyeth (WYE). Lawsuit risk keeps Najarian from being a fan of the stent market. He would rather be in Myriad Genetics (MYGN). Medical device maker Zimmer (ZMH) saw huge options activity Wednesday.

Pops & Drops

Pops-Nokia (NOK) traded up 1%. Najarian

Akamai (AKAM) traded up 4% after being upgraded.

Google (GOOG) traded up 2%. Seymour claims the beat goes on with Google.

Drops- Alcoa (AA) fell 3% after earnings disappointed.

PetSmart (PETM) fell 4% after lowering profit forecasts.

Turkcell (TKC) dropped 5%.

I-Robot (IRBT) fell 8% after reporting a loss.

TempurPedic International (TPX) fell 7% after bearish analyst comments.

Final Trade

Jon Najarian: Google (GOOG) is going to trade to $700 before the end of the year.

Pete Najarian favors ValueClick (VCLK).

Seymour: ConocoPhillips (COP) for its European exposure.

Finerman: Tyco Electronics (TEL).

Macke: Merck (MRK).

Labels: BA, CNBC, DAI, Fast Money, Fast Money Recap, GLD, HON, JCI, MGA

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
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.
Boeing (NYSE:BA - News). BA's PowerRating (for Traders) 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.
Cablevision (NYSE:CVC - News). CVC's PowerRating (for Traders) is 6.
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.
Plum Creek Timber (NYSE:PCL - News). PCL's PowerRating (for Traders) is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up 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 close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Sears Holding (NasdaqGS:SHLD - News). SHLD's PowerRating (for Traders) is 3.
5+ Consecutive Higher Highs: 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.
Continental Airlines (NYSE:CAL - News). CAL's PowerRating (for Traders) is 3.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average 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.
Nicor (NYSE:GAS - News). GAS's PowerRating (for Traders) is 3.
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.
KB Home (NYSE:KBH - News). KBH's PowerRating (for Traders) is 4.
Published By TradingMarkets.com

Labels: BA, CAL, CVC, GAS, Hot Stocks, KBH, PCL, SHLD

Cramer began his show Friday saying how well his "Four Horsemen of Tech"; Google (GOOG), Research in Motion (RIMM), Apple (AAPL), and Amazon.com (AMZN) are doing. "$80 to $120" stocks list. The stocks were Boeing(BA), Caterpillar(CAT), ConocoPhillips (COP), Air Products(APD), Apache(APA), Terex(TEX), and Energizer(ENR). Cramer admitted that he recommended these stocks too late in the bull market, and that most of these stocks fell after he first recommended them . They are up 5% now, and Cramer thinks that these stocks are the "perfect group." He likes CAT and TEX the best, followed by COP.
Overlooked IPOs: Masimo (MASI). Cramer believes that it has a superior product and a great recurring revenue stream with purchases of disposable parts for the medical sensor they make.
After the lightning round Cramer talked about Allergan (AGN). Cramer said people have a desire to look good, and this stock is in a great position to profit, while moving into traditional medical market. He then had the CEO of the company on the phone to discuss future earnings and sales.
Mad Mail: Cramer answered a few emails. He told viewers to ignore the downgrade on Boeing (BA) since he thinks the stock is going higher. He then answered a question about FiberTower (FTWR), which he doesn't like. In response to another emailer, Cramer said he likes Starent (STAR) because it's an intellectual property play.

Labels: AGN, AMZN, BA, CAT, COP, ENR, GOOG, Jim Cramer, Mad Money, Mad MOney Recap, MASI, RIMM

Ford (F): Cramer began Monday's show by recommending investors buy Ford. Thinks that it will profit off the fact that GM broke the unions with its latest negotiations and that it is selling some of its units. Jim then took a couple of phone calls. The first call was about Tata Motors (TTM), which Cramer likes, but he thinks is too expensive. The second caller asked about Toyota (TM). Cramer won't back Toyota because the weak dollar hurts their sales and the Japanese market is the worst in the world.
In the next segment, Cramer continued to talk about investing opportunities related to GM's success against the UAW. He looked off the beaten path and found American Axle and Manufacturing (AXL) since the company makes auto parts, and has a labor contract that ends in the near future.
Cramer then took some more phone calls. He was asked about Garmin (GRMN), which Cramer thinks fell too much, but he will be concerned about it once the Navteq (NVT) and Nokia (NOK) merger is completed next year. Another caller asked about Eaton (ETN), and Cramer said that it’s one of his favorite manufacturing stocks. The next caller asked about CarMax (KMX), and Cramer said that you should think about pulling the trigger in late November to avoid tax-loss selling.
After the lightning round, Cramer talked about a stock that went public this summer without much attention and considers it an overlooked IPO. His pick is Dolan Media (DM), which helps process mortgage defaults.
Mad Mail:
Cramer read emails about NYSE-EuroNext (NYX), which Cramer thinks he "blew it" when he recommended the stock. Boeing (BA): Despite past devastating news, Cramer believes in it. Siemens (SI): Cramer thinks is in great shape and that you should hold onto it.

Labels: AXL, BA, DM, ETN, F, GRMN, Jim Cramer, KMX, Mad Money, Mad MOney Recap, NOK, NVT, NYX, SI, TM, TTM

Cramer began Friday's show by sharing his CEO Hall of Shame. These are stocks that he thinks would be better off if the CEO quit or was forced out.
Alcatel-Lucent (ALU): Cramer thinks the CEO was given an ultimatum to deliver results now.
Marsh McLennan (MMC): The company should be broken up, and that splitting the company up is the only way shares will increase unless the CEO leaves.

Next, Cramer took some phone calls about other stocks with bad CEOs, like Pall (PLL). He also told people that he can't recommend buying Sirius (SIRI) now because it's too expensive, and that he thinks you should stay away from Palm (PALM).
Next, Cramer did a "Speculation Friday" segment, where he recommends high risk stocks. BioMarin (BMRN), a small biotech firm. It has developed a drug for pheylketonuria that will be the only drug on the market, protecting it from generic competition until 2015 in the US and 2018 in Europe. Cramer thinks the drug will be approved by the end of the year, but if it doesn't, it will be a risky investment.
Other calls: La-z-boy (LZB): Cramer doesn't like, and Sangamo BioSci (SGMO):He thinks is very risky.

After the lightning round, Cramer discussed what stocks he think will take the Dow to his year end target of 14,548. They are American Express (AXP), AIG (AIG), JPMorgan Chase (JPM), Citigroup (C), DuPont (DD), Altria (MO), Boeing (BA), and Caterpillar (CAT).

In the last segment, Cramer answered some emails. He changed his mind on GigaMedia (GIGM), making it a buy now, and told viewers to wait for a pullback on (AMZN) since it's "marked up heavily."

Labels: ALU, AMZN, AXP, BA, BMRN, CAT, DD, Jim Cramer, JPM, Mad Money, Mad MOney Recap, MMC, PALM, Pll, SIRI

Stocks continued their march higher today, despite more weak housing data. The Nasdaq led the way gaining 11 points, while the Dow and S&P were also finished in the green. Oil traded strongly, rising $2.58 to $82.88 a barrel, while natural gas fell. Gold rose on the day.
On the economic front, the Commerce Department announced that GDP grew at a revised 3.8% annual rate for the quarter ended in June. It was the economy's strongest showing in a little over a year. The National Association for Business Economic is predicting growth of 2.4% for the current quarter ending September. Meanwhile, new home sales fell to the lowest level in seven years for the month of August, dropping -8.3%. The median sales price fell -7.5% to $225,700, the biggest drop in 37 years. Despite the housing woes, fewer workers filed for jobless benefits last week, with claims dropping by -15,000 to 298,000.
In earnings news, retailer Bed Bath & Beyond (Nasdaq: BBBY - News) posted net income of $147 million, or 55 cents a share, compared to $145.5 million, or 51 cents a share, a year earlier. Excluding a one-time tax benefit, EPS came in at 52 cents, in line with analyst estimates. Revenue rose 10% to $1.77 billion, while same-store sales climbed 2.2%. The stock fell -1.1%.
Like most homebuilders, KB Homes (NYSE: KBH - News) wasn't able to turn a profit when it announced earnings this morning, swinging to a loss of -$35.6 million, or -46 cents per share, compared to a profit of $153.2 million, or $1.90 per share, in the year-ago period. The sale of the company's French division helped the bottom line, as its loss from continuing operations came in at -$478.6 million, or -$6.19 per share. Revenue plummeted -32% to $1.54 billion from $2.28 billion a year ago, as unit deliveries dropped -28% and the average selling price fell -7%. The company had two large writedowns on the value of unsold inventory and joint-venture holdings.
Rite Aid (NYSE: RAD - News) shares tumbled -4.2% after the pharmacy reported a wider loss and cut revenue and earnings guidance. For Q2, Rite Aid recorded a loss attributable to common shareholders of -$78.2 million, or -10 cents per share, versus a loss of -$8.2 million, or -2 cents per share, last year. The quarter included a one-time financing commitment charge of $12.9 million. Revenue rose nearly 54% from $4.29 billion to $6.6 billion, but fell just short of the $6.8 billion consensus. The company also cut its full-year guidance to a loss of -$78 million to -$161 million on revenue of $24.5-$25.1 billion. Previously, the company had forecasted a loss of -$47 million to -$129 million on revenue of $25.3-$26 billion.
In other corporate news, Google (Nasdaq: GOOG - News) announced that it is looking to increase its staff by a third over the next several years. Before you get that resume ready, though, note that most of the news jobs will be for engineers located in Europe. If you're willing to relocate across the pond, note that British Airways (OTC: BAIRY - News) today ordered $8.2 billion in new aircraft from Boeing (NYSE: BA - News) and Airbus, making it the airline's largest purchase in more than a decade. The news was considered a mixed bag for Boeing, as previously it was the exclusive large passenger plane provider for British Airways. The planes are expected to be delivered between 2010 and 2014. Boeing shares rose 1.0%.
In M&A news, a group led by JC FLowers said that it would not go through with its $26 billion purchase of Sallie Mae (NYSE: SLM - News). The student lender said it would take legal action, as the group has no basis for breaking the merger agreement.
By the BullMarket.com Staff

Labels: BA, BAIRY, BBBY, Boeing Co., GOOG, Google Inc., KB Homes, KBH, RAD, Rite Aid Corp., Sallie Mae, SLM

True Value: Aircastle (NYSE: AYR - News) Genesis Lease (NYSE: GLS - News)
Cramer suggested buying value stocks in the wake of the selloff. He defines a value stock as one which is down 20% from its 52-week high and pays a minimum of 3% in dividends. Such stocks are cheap because hedge fund managers have recently been forced to sell "good companies with broken stocks." A high dividend stock should do well if the Fed continues to cut rates. Cramer's first value pick was AYR, which owns and leases jets and was sold off in June by investors worried about the credit crisis. Cramer notes the COO has bought 2,000 shares and comments insiders "only buy for one reason: They think their company's stock is going up."He also suggested value play GLS, which is down 15% since Cramer recommended it, but has $1.2 billion in capital and a dividend at 8.2%.
EMC (NYSE: EMC - News), VMware (NYSE: VMW - News)
Cramer also touted momentum stocks as a way of dealing with the current economic climate, and recommended looking at the new high list. He predicted a significant upside for EMC, up just 3% after it spun off VMW, a stock that has risen to $70 from its initial public offering of $19. He added EMC trades at only 11 times next year's earnings, but recommended waiting for a bit before buying.

Sell Block: Boeing (NYSE: BA - News), ConocoPhillips (NYSE: COP - News), Terex (NYSE: TEX - News), Caterpillar (NYSE: CAT - News), Air Product & Chemicals (NYSE: APD - News), Energizer Holdings (NYSE: ENR - News), XTO Energy (NYSE: XTO - News)
Cramer revisited his $80 to $120 stocks he covered in July, admitting that he "misjudged the market" now that the S & P is down 4.5%. He still likes BA, down 3.3% since his recommendation, as well as COP, TEX and CAT. Cramer says APD has pricing power, given the paucity of chemical companies, ENR is good but a bit expensive and prefers XTO to other energy companies.
Mad Mail: Omniture (NasdaqGM: OMTR - News), Apple (NasdaqGS: AAPL - News), Countrywide Financial (NYSE: CFC - News), Bank of America (NYSE: BAC - News), Crocs (NasdaqGS: CROX - News)
Cramer predicts OMTR is going to $30 and says Apple is "going to be terrific." The CFC "play is over" and the curtain is rising for BAC. He feels Crocs is "on a mission" and recommends listening to the conference call.
Published By SeekingAlpha

Labels: AAPL, APD, AYR, BA, BAC, CAT, CFC, COP, CROX, EMC, ENR, GLS, Jim Cramer, Mad Money, OMTR, TEX, VMW, XTO

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.

Allegheny Energy (NYSE:AYE - News). AYE'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.
Ceridian (NYSE:CEN - News). CEN'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. Historically, these stocks have provided traders with a significant edge.
Energizer Holdings (NYSE:ENR - News). ENR'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.
Rockwood Holdings (NYSE:ROC - News). ORC's PowerRating is 8.
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.
Boeing (NYSE:BA - News). BA's PowerRating is 6.
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.
Abraxis BioScience (NasdaqGS:ABBI - News). ABBI's PowerRating is 3.
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.
Beazer Homes (NYSE:BZH - News). BZH's PowerRating is 1.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ABBI, AYE, BA, BZH, CEN, ENR, Hot Stocks, ROC

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.'
Published By SeekingAlpha

Labels: APA, BA, CHK, CSCO, DCX, FLR, GRMN, HLX, Jim Cramer, JNPR, Lightning Round, LVLT, LVS, Mad Money, MDR, SBUX, SGR, SLB, WYNN, ZBRA