Jim Cramer Blog

Yahoo (NasdaqGS:YHOO) rallied late in the day to finish down 15% after Microsoft withdrew its bid for the company. The Short Term PowerRating for YHOO is 5.
Shares of Sprint (NYSE:S) rallied on the news that the company was considering selling or spinning off Nextel as an independent entity. The Short Term PowerRating for S is 5.
Fannie Mae (NYSE:FNM) announces earnings before the open on Tuesday, with analysts expecting EPS of -$0.81. The Short Term PowerRating for FNM is 4.
Bank of America (NYSE:BAC) announced that it planned to complete its take over of Countrywide Financial despite an analyst report critical of the takeover. The Short Term PowerRating for BAC is 4.
Reporting earnings before the market opens on Tuesday, Sara Lee LE is expected to announce earnings per share of $0.24. The Short Term PowerRating forSLE is 4.
The box office success of "Ironman" encouraged traders to bid shares of Marvel Entertainment (NYSE:MVL) higher by more than 9% on Monday. The Short Term PowerRating for MVL is 5.
Shares of General Motors (NYSE:GM) lost more than 3% on news of a labor dispute at a plant in Kansas. The Short Term PowerRating for GM is 2.

Labels: BAC, FNM, Hot Stocks, MVL, S, YHOO

Altria (MO), Bank of America (BAC), Chevron (CVX), Honeywell (HON), Conco-Phillips (COP), Freeport-McMoran (FCX), Schlumberger (SLB), American International Group (AIG), Pfizer (PFE), Cisco (CSCO)
Cramer was disappointed with Dow Jones' facelift which involved getting rid of Altria, and Honeywell, and adding Bank of America and Chevron. Three economic themes Cramer thinks should have been expressed in the Index changes are the growing importance of natural resources, the dwindling power of the financial sector and international growth. None of these themes were reflected in today's choices, Cramer commented. He said a financial should have been removed rather than added to the Dow, COP would have been a better choice than CVX, and would have considered including FCX or SLB in addition to keeping HON. He would have dropped AIG which is a travesty masquerading as an insurance company whose CEO, Martin Sullivan, was recently added to Cramer's Wall of Shame. He would also give Pfizer the pink slip, and would consider adding CSCO, since it is diversified.
Raytheon (RTN)
In spite of Goldman's Sachs note of Early indications of slowing growth in defense spending..., the military budget keeps growing; President Bush is asking for a $515 million for 2009 which is a 7.5% increase. Cramer likes RTN in this space because it has strong international sales, and is up 25% since Goldman's downgrade last March, but he would wait for a pullback before buying.
McDonald's (MCD), Darden (DRI)
One month of data does not justify a bearish position on a restaurant stock, said Cramer, noting McDonald's $6 rise since Bear Stearns hastily downgraded the stock for weak December same store sales (January same store sales increases 5.7%) An even faster kneejerk (or, rather, prejerk) occurred when Darden was downgraded only a few minutes before its better-than-expected guidance was released. The moral of the story, according to Cramer, is that when analysts unfairly downgrade stock on scant data, it is time to buy. Cramer would buy MCD now even though it has risen a bit.
Published By SeekingAlpha

Labels: AIG, BAC, COP, CSCO, CVX, DRI, FCX, HON, Jim Cramer, Mad Money, MCD, MO, pfe, RTN, SLB

The Federal Reserve finally got it right by cutting its target rate 50 basis points, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"There's no interpretation, this was just positive," Cramer said. "We have money flush from the sidelines." He believes that the financials will mount a recovery based on the Fed's move. "Bank of America (BAC) will want to buy Countrywide (CFC)."
"Fifty basis points is good," Cramer continued. He anticipates a market recovery thanks to the rate cut.
Cramer observed that some positive results are already visible. "People bought the WaMu (WM)preferred. That's good. ... This is a huge positive, and the market should react. ... It's huge. ... GM's (GM) breaking out. The GM preferred ... is a fantastic piece of paper."
Investors should get in now, although "perhaps they'll give you something that is negative to give you another chance," Cramer said.
In Cramer's view, the export economy is "red hot." He said he was "raising numbers on all financials."
"All is forgiven," Cramer said of his previous animosity toward the Federal Reserve. "Financials should be bought."
Cramer added that playing the agriculture boom is still a smart move. "Oil's going to $100. ... I think you can still own Bunge (BG) upgraded. ... Archer Daniels (ADM) is good."
On the overall economy, Cramer declared, "I am bullish. ... I'm not going to change my mind ... [the Fed] did it right."

Labels: ADM, BAC, BG, CFC, GM, Jim Cramer, Stop Trading, WM

InterContinental Exchange's price had risen dramatically since Cramer recommended the stock on "Mad Money," but has since returned to previous levels, Cramer said. Neither stock has responded favorably to today's news that the CME, which operates the Chicago Mercantile Exchange and the Chicago Board of Trade, is in talks to buy ICE. "What is the ICE doing down?" Cramer asked.
Cramer also believes the economy is not headed for a recession. He named earnings calls from Honeywell (HON), Caterpillar (CAT), Parker Hannifin (PH) and others as signs of the market's health.
Cramer also noted that the KBW Bank Index and the PHLX Housing Sector Index are rallying because of the rate cuts.
In spite of the positive news, Cramer said he believes more action is needed. Given "the losses that we saw for the quarterlies from a Bank of America (BAC) or a Wachovia (WB) ... I genuinely feel that we are too close to the precipice to stop.
"That doesn't mean that a Honeywell isn't doing fine without it," Cramer cautioned. "It's like 1998, when the economy was booming. ... We had to stop the decline [in the financials] ."
Cramer believes the bank woes may remain independent of the broader economy. "The problems are not with IBM (IBM) or Verizon (VZ) ... AT&T (T ) ... Nokia (NOK) ... Microsoft (MSFT)."
Cramer added that the Federal Reserve's 75-basis-point rate cut last week was helpful. "You needed that cut to be able to raise all that money last week." However, the crisis isn't over. "Home price appreciation is nonexistent. ... We saw that number today. ... The oil futures are saying no recession. I think the Fed cuts are needed again."
Published By TheStreet.com

Labels: BAC, CAT, HON, IBM, ICE, Jim Cramer, MSFT, NOK, PH, Stop Trading, T, VZ, WB

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Bank of America (NYSE:BAC - News) reports earnings on Tuesday morning, with traders looking for $0.18 EPS. BAC's PowerRating (for Traders) is 5.
DuPont (NYSE:DD - News) is looking to report $0.49 EPS on Tuesday before the market opens. DD's PowerRating (for Traders) is 5.
Analyst will be watching for Fastenal (NasdaqGS:FAST - News) to announce $0.36 EPS on Tuesday before the bell. FAST's PowerRating (for Traders) is 6.
When Johnson & Johnson (NYSE:JNJ - News) announces quarterly results on Tuesday morning, watch for $0.86 EPS. JNJ's PowerRating (for Traders) is 6.
Suncor Energy (NYSE:SU - News) is poised to announce $1.51 EPS early Tuesday morning. SU's PowerRating (for Traders) is 6.
UnitedHealth (NYSE:UNH - News) should report $0.92 EPS on Tuesday morning. UNH's PowerRating (for Traders) is 6.
Wachovia (NYSE:WB - News) is expected to report $0.33 EPS early Tuesday. WB's PowerRating (for Traders) is 6.

Labels: BAC, DD, FAST, Hot Stocks, JNJ, SU, UNH, WB

Stick with agriculture and recession stocks, Jim Cramer said on CNBC's "Stop Trading!" segment Friday.
"Mosaic (MOS) is terrific. ... I think Agrium (AGU) is a catch-up ... to Mosaic," Cramer said. "You're going to do better with that than ... betting against Procter (PG)."
More broadly, Cramer believes the market is frantic as shorts try to cover their bets on the bond insurers. "Today's a big short-squeeze day. 'Let's short squeeze Ambac (ABK) and MBIA (MBI).'"
In the financial sector, Cramer expects more take-unders like Bank of America's (BAC) purchase of Countrywide (CFC). He foresees Washington Mutual (WM) on the auction block, adding that CEO "Kerry Killinger is doing his best to do a bad job. ... Washington Mutual at $15 is like Countrywide at $8."
Cramer encouraged investors to play conservatively. "I would be partial to Coke (KO)," he said, adding that he was encouraged that commodity prices are down for the soft-drink company. Pepsi (PEP) is another good pick, he added.
Published By TheStreet.com

Labels: AGU, BAC, CFC, CNBC's Stop Trading, Jim Cramer, KO, MBI, MOS, PEP, PG, WM

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Countrywide Financial (NYSE:CFC - News) rallied 47% on reports that Bank of America (NYSE:BAC - News) is in advanced talks to buy the biggest U.S. mortgage lender. CFC's PowerRating (for Traders) is 7, and BAC's PowerRating (for Traders) is 5.
AnnTaylor (NYSE:ANN - News) fell 15% after reporting a drop in same-store sales for the holiday season and cutting its earnings forecast. ANN's PowerRating (for Traders) is 7.
IHS (NYSE:IHS - News) beat earnings expectations on Thursday afternoon, reporting $0.47 EPS over a consensus of $0.43 EPS. IHS's PowerRating (for Traders) is 7.
Shuffle Master (NasdaqGS:SHFL - News) matched earnings expectations on Thursday afternoon with $0.10 EPS. SHFL's PowerRating (for Traders) is 6.
Synnex (NYSE:SNX - News) also beat earnings estimates, reporting $0.61 EPS over $0.53 EPS. SNX's PowerRating (for Traders) is 5.
Infosys (NasdaqGS:INFY - News) reports earnings on Friday before the market opens, with traders looking for $0.51 EPS. INFY's PowerRating (for Traders) is 5.

Labels: ANN, BAC, CFC, Hot Stocks, IHS, INFY, SHFL, SNX

Consolidation in key industries may help investors in this oversold market, Jim Cramer said on CNBC's "Stop Trading!" segment Thursday.
Cramer commented on the overall economic condition, prodded by Federal Reserve Chairman Ben Bernanke's speech today: "We are at the precipice. ... We need shotgun marriages."
Bank of America (BAC) helped the odds of one such marriage today by announcing a deal with beleaguered mortgage lender Countrywide (CFC).
"This is what happens at the bottom," Cramer said. "I just don't know why the Fed would say you got to pay a premium for Countrywide." He added that "They don't want Countrywide to go out of business, because the servicing thing would play havoc." Cramer believes that Wachovia (WB) and Wells Fargo (WFC) will respond well to a rate cut: "These stocks go down every day."
Berkshire Hathaway's (BRKA) overtures to bond insurers Ambac (ABK) and MBIA (MBI) yesterday also indicated there may be hope in the troubled financial markets, Cramer said.
Airline stocks were treated to a similar rebound today, Cramer noted. Calling American Airlines operator AMR (AMR) "worth a lot," Cramer said that in a month, he will be recommending the group.
Cramer continues to recommend the agricultural sector. "I love the ag guys because ag is so good," he said. "That Mosaic (MOS) was down yesterday was just the shorts pressing their bets again."
Published By TheStreet.com

Labels: ABK, AMR, BAC, BRKA, CFC, Jim Cramer, MBI, MOS, Stop Trading, WB, WFC

All three major indices posted modest gains after a volatile session, as investors absorbed news of more mortgage-related losses and a Fed liquidity plan. The Dow added 41 points to end the day at 13,479. Meanwhile, the Nasdaq and S&P each closed up for the session to finish at 2,671 and 1,487, respectfully. Light, sweet crude prices surged higher to settle at $94.39 a barrel. Treasury prices tumbled, while gold prices gained to end at $818.80 an ounce. The dollar fell against the euro, but gained against the yen.
The Federal Reserve announced today that it will mount a joint effort with other central banks to inject billions of dollars of liquidity into the financial system in order to combat the credit crunch. The plan calls for the central bank to conduct four special auctions that will allow banks to bid for the opportunity to borrow directly from the Fed. The first two auctions will take place next week and will be for up to $20 billion each. The amounts of the remaining two auctions will be decided in January 2008.
In other economic news, a report from the Commerce Department showed that the U.S trade deficit widened in October. A reading of the report showed that imports exceeded exports by $57.8 billion, up from a gap of $57.2 billion September. Economists had predicted the gap would be $57 billion.
In corporate news, shares of Bank of America (NYSE: BAC - News) fell -2.7% on the day after the company disclosed in a regulatory filing that it expects fourth-quarter write-downs to exceed the -$3 billion it had predicted last month but was uncertain how big the write-down would be. The bank also said it expects to set aside $3.3 billion in loan-loss provisions in the fourth quarter, which is approximately $1.3 billion more than the previous period. The company expects to remain profitable in the fourth quarter.
Elsewhere, 3M Co. (NYSE: MMM - News), the maker of Scotch tape and Post-it notes, said it expects earnings growth of at least 10% for the full year 2008 fueled by overseas sales and exchange rates. The company said it expects 2008 earnings per share to be between $5.44-$5.47 per share. Analysts, on average, were looking for earnings growth of 9%, or EPS of $5.43 per share. 3M's stock was up 2.4% for the day.
Also today, shares of Sallie Mae (NYSE: SLM - News) tumbled -10.8% after the company slashed its earnings guidance for the fourth quarter and full-year 2008. The student lender also disclosed that it has failed to renegotiate a buyout offer from an investor group that balked at its original offer of $25 billion several months ago. For the quarter, Sallie expects to earn between 52-57 cents per share. On average, analysts were looking for fourth-quarter earnings of 71 cents per share, which is down from previous estimates of 74 cents last month. The company lowered its earnings guidance for 2008 to be between $2.60-$2.80 per share, down from $3.25 per share.
In M&A activity, software giant Microsoft (Nasdaq: MSFT - News) announced today that it had acquired U.K.-based Multimap, a provider of location and mapping technology. Financial terms of the deal were not disclosed. Microsoft said the mapping technology could be used to complement several of its current offerings and may be integrated with future products. Shares of Microsoft were up 1.1% on the day.
By the BullMarket.com Staff

Labels: BAC, MMM, MSFT, SLM

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
eBay (NasdaqGS:EBAY - News) smashed earnings expectations on Wednesday, announcing $0.41 EPS over an expected $0.33 EPS. EBAY's PowerRating (for Traders) is 5.
Alliance Data (NYSE:ADS - News) also beat earnings Wednesday, with $1.01 EPS over a consensus of $0.93 EPS. ADS's PowerRating (for Traders) is 5.
Bank of America (NYSE:BAC - News) reports earnings on Thursday before the bell, with analysts looking for $1.06 EPS. BAC's PowerRating (for Traders) is 5.
Commerce Bancorp (NYSE:CBH - News) is looking to report $0.41 EPS before the market opens on Thursday morning. CBH's PowerRating (for Traders) is 7.
Dow Jones (NYSE:DJ - News) should report $0.22 EPS on Thursday morning before the bell. DJ's PowerRating (for Traders) is 5.
Analysts are watching for Continental Airlines (NYSE:CAL - News) to report $2.19 EPS on Thursday before the market opens. CAL's PowerRating (for Traders) is 5.
Pfizer (NYSE:PFE - News) should announce $0.52 EPS tomorrow morning. PFE's PowerRating (for Traders) is 5.

Labels: ADS, BAC, CAL, CBH, DJ, Ebay, Hot Stocks, pfe

Commodity Stocks
Adami: Exxon Mobil (XOM)- Take profits. US Bancorp (USB)- Sees trade opportunity. Gold- Down. Oil- Down. KB Home (KBH)- Likes for a trade. Morgan Stanley (MS) and Bank of America (BAC) also traded higher.
Macke: warns against shorting the financials because he believes the sector will continue to work on the long side. Before earnings, Macke also likes TCF Financial (TCB). Macke also believes that Activison (ATVI) and Electronic Arts (ERTS) make more money off the games for the Wii than games for the Playstation.
China: iShares FTSE/Xinhau China 25 Index (FXI) traded higher for the second day in a row. Najarian: U.S. investors can trade China ETF's and ADR's even when the market in China is closed. Although it has had a monster run, he still believes that Baidu.com (BIDU) will trade higher. Najarian owns BIDU. He also likes the Macau trade with Wynn (WYNN) and Las Vegas Sands (LVS).
Micron (MU) traded lower after hours on a $158 million loss. Najarian believes the run in Micron has already happened. He prefers Sandisk (SNDK) and Rambus (RMBS). Adami believes that Micron will trade higher from current levels.
Pops & Drops
POPS -- Pepsi Bottling Group (PBG) traded up 2%, hitting an all-time high. PDL BioPharma (PDLI) traded up 9%. Kohl's (KSS) popped 2% on news the firm is going to increase the number of stores by 67%. Ciena (CIEN) traded up 9% on a bullish gross margin forecast.
DROPS- Garmin (GRMN) fell 7%. Finerman sees Garmin's only solution is to buy NAVTEQ (NVT).
Face2Face
First viewer: Las Vegas Sands and Melco Entertainment (MPEL). Najarian responds that Wynn Resorts looks better then Las Vegas Sands.
CB Richard Ellis (CBG): which has fallen from $42 and is now trading at $28. Adami concedes that CB Richard is OK for a trade with a stop at $24.
Research In Motion (RIMM), NVIDIA (NVDA), EMC Corporation (EMC), Blue Nile (NILE) and Apple (AAPL) Macke believes it's a good idea to take some off the table in these momentum names.
Final Trade
Macke likes Johnson & Johnson (JNJ).
Finerman recommends Kohl's (KSS).
Adami is drawn to the action in Dean Foods (DF).
Najarian prefers PDL BioPharma (PDLI)

Labels: ATVI, BAC, BIDU, CNBC, ERTS, Fast Money, Fast Money Recap, FXI, GRMN, KBH, LVS, MU, SNDK, USB, WYNN, XOM

Buy Texas Instruments (TXN), Jim Cramer said Friday on CNBC's "Stop Trading!" segment.
Cramer said the chip giant has "nothing to do with its cash" but buy back stock, which is why the stock should go to $45 from a recent $36.83.
Cramer also likes the bank stocks, from Citi (C) and JPMorgan (JPM) to Wells Fargo (WFC) and Bank of America (BAC), despite some brokerage downgrades tied to possible loan losses. Cramer said to "downgrade now is wrong" on these stocks, because they had performed so poorly headed into this week's Fed rate cut.

Labels: BAC, Bank of America Corp., C, Citigroup Inc., Jim Cramer, Jim Cramer's Stop Trading, JP Morgan Chase and Co., JPM, Texas Instruments Inc., TXN, Wells Fargo and Co., WFC

Bullish Calls:
Yamana Gold (AUY): 'If you need a gold company, we're going to go with AUY.' Luxottica Group (LUX): 'Oakley shades.They're still talking about it.That means Oakley's still cool.T. Payne likes Oakley.I say two thumbs up, LUX.' Oakley (OO) Sam Adams (SAM) Molson Coors Brewing (TAP): 'I've got to tell you, TAP, at $89 bucks.' Nvidia (NVDA): 'That's what I want you in. NVDA is now best of breed. That's the play.' Wynn Resorts (WYNN): 'I recommended WYNN and the next day...Bear Stearns downgraded it, and you know what?... the stock went up. Cramer 1. Bear 0. And it's still up.' Service Corporation International (SCI):' this is a funeralcompany...this was the hottest, greatest company ever. It had some major financial problems, and it has come back. It's a buy on its own.' Bank of America (BAC)
Bearish calls:
Harmony Gold Mining (HMY): 'Whether it be the Harmony Club in New York City, or the HMY, I'm saying no way... Sell, sell, sell' Anheuser-Busch (BUD): 'BUD is the laggard. I don't want you to own BUD.' Silicon Motion Technology (SIMO) Melco PBL Entertainment (MPEL): 'MPEL is not for me, because of the big overruns. '
Published By SeekingAlpha

Labels: AUY, BAC, BUD, HMY, Jim Cramer, Lightning Round, LUX, Mad Money, MPEL, NVDA, OO, SAM, SCI, SIMO, TAP, WYNN

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

CFCStocks meandered most of the day as credit concerns continued to pressure the market. Bulls were hesitant to keep the recent rally going as Bears attempted to gain control. At the close, the tug-of-war ended with the Dow ending essentially flat on the session. Both the Nasdaq and S&P finished in negative territory. Oil, on the other hand, rose 57 cents to close at $69.83.
In economic news, the Labor Department said that initial jobless claims fell by -2,000 to 322,000, the lowest level since August. The four-week average, meanwhile, rose by 4,750 to 317,750. The number of people continuing to collect unemployment benefits rose by 16,000 reaching 2.57 million.
In corporate news, shares of the nation's largest mortgage company Countrywide Financial (NYSE: CFC - News) rose 0.9% after it announced that banking behemoth Bank of America (NYSE: BAC - News) has invested $2 billion in the company. Under the terms of the deal, Bank of America has acquired $2 billion in the form of convertible preferred stock yielding 7.25% annually. It will not have any voting rights under the preferred shares. It will have the option of converting its shares into common shares of the company at a price of $18 a share, a steep discount to the current value of CFC's stock price. The investment comes in the midst of an industry-wide shakeout following a severe credit crunch.
With much of the earnings season in the books, specialty retailers seem to be the last in line to report. Clothing retailer Children's Place (Nasdaq: PCLE - News) today reported a loss of -$27.1 million on sales of $424.3 million for its second quarter. EPS numbers weren't supplied due to an SEC inquiry. Same-store sales fell -1%. It also cut its full-year profit forecast to $2.25-2.40 a share, well below its previous range of $3.45-3.55 a share. Shares plunged -16.9% on the earnings announcement and also on news that it is experiencing troubles with its licensing deal with Disney (NYSE: DIS - News).
Video game retailer GameStop (NYSE: GME - News), conversely, blew the cover off its second-quarter earnings. For Q2, it said net income reached $21.8 million, or 13 cents a share, significantly higher than the $3.18 million, or 2 cents a share, profit it recorded last year. Sales surged 39% to $1.34 billion from $963 million in the same period a year ago. Same-store sales grew by 29% in its latest quarter. The numbers beat analyst estimates of 9 cents a share on sales of $1.19 billion. Shares surged 9.3%.
On the M&A front, a couple of small deals were announced. Technology giant IBM (NYSE: IBM - News) said it acquired privately held WebDialogs, which specializes in Web conferencing. Financial terms of the deal were not publicly disclosed. WebDialogs will become part of IBM's software group. Elsewhere, food company Hormel Foods (NYSE: HRL - News) agreed to buy cooked meat producer Burke for $110 million. Hormel said the deal will be accretive to earnings in its fiscal year 2008 and will give $125 million in sales to the company. Shares rose 1.1%.
By the BullMarket.com Staff

Labels: BAC, CFC, DIS, GME, HRL, IBM, PCLE

Bank of America Corp. has invested $2 billion in Countrywide Financial Corp., the largest mortgage lender in the United States.
The investment comes in the form of a nonvoting convertible preferred security yielding 7.25 percent annually. The security can be converted into common stock at $18 per share.
"We believe that in the current turmoil the stock market has been underestimating the value in Countrywide's operations and assets," says Ken Lewis, BofA chairman and chief executive. "This investment reflects our confidence in their business and recognizes the importance of the company in providing home financing across the country."
Lewis says he hopes the investment will be a step toward a return to more normal liquidity in the mortgage markets.
California-based Countrywide (NYSE:CFC - News) services the mortgages of one in seven U.S. households, he says.
Charlotte-based BofA (NYSE:BAC - News) is one of the world's largest financial institutions, with more than 5,700 retail-banking offices and 17,000 ATMs.
Published August 22, 2007 by the Charlotte Business Journal

Labels: BAC, Bank of America Corp., CFC, Countrywide Financial Corp.