Jim Cramer Blog

"I was worried about them for months," Cramer said. He added that he's done worrying now, because the insurers' troubles are so widely known. "When everybody knows about it ... you're done."
"I would never own those stocks," Cramer stressed, calling them "the moral hazard."
In the wake of the Fed's 50-basis-point rate cut, Cramer predicted a housing shortage.
Regarding the economic stimulus package currently making its way through Congress, Cramer quipped, "Go buy a Black & Decker (BDK) power saw." He added that people should use the rebate checks offered in the package to "pay down their credit card debt."
All joking aside, Cramer said he believes people are already taking his advice. "I'm telling you what they will do" with the money, he said. "That's why Whirlpool (WHR) ramped."
Cramer said that value stocks are the good bets for this environment. "Ryland's (RYL) good."
Investors should stick with early-cycle picks and avoid recent momentum plays, Cramer concluded. "Energy does not do that well right now. ... China does not do that well. Whatever was momentum doesn't do well."
Published By TheStreet.com

Labels: BDK, Jim Cramer, RYL, Stop Trading, WHR

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Alberto-Culver (NYSE:ACV - News) reports earnings on Monday before the market opens, with traders looking for $0.26 EPS. ACV's PowerRating (for Traders) is 5.
Black & Decker (NYSE:BDK - News) announces quarterly results on Monday morning; watch for $1.03 EPS. BDK's PowerRating (for Traders) is 4.
Halliburton (NYSE:HAL - News) is poised to report $0.69 EPS on Monday morning before the bell. HAL's PowerRating (for Traders) is 4.
When McDonald's (NYSE:MCD - News) announces results on Monday morning, traders will be watching for $0.71 EPS. MCD's PowerRating (for Traders) is 4.
Tyson Foods (NYSE:TSN - News) expects to report $0.04 EPS on Monday morning. TSN's PowerRating (for Traders) is 5.
Analysts will be watching for Verizon (NYSE:VZ - News) to report for $0.62 EPS on Monday morning. VZ's PowerRating (for Traders) is 5.
On Monday afternoon, watch for SanDisk (NasdaqGS:SNDK - News) to report $0.64 EPS. SNDK's PowerRating (for Traders) is 5.

Labels: ACV, BDK, HAL, Hot Stocks, MCD, SNDK, TSN, VZ

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
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.
Covance (NYSE:CVD - News) & Ultra Petroleum (NYSE:UPL - News). CVD's PowerRating (for Traders) is 7, and UPL's PowerRating (for Traders) is 8.
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.
Ecolab (NYSE:ECL - News). ECL'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.
Johnson & Johnson (NYSE:JNJ - News). JNJ'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.
W&T Offshore (NYSE:WTI - News). WTI's PowerRating (for Traders) is 8.
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.
Bed Bath & Beyond (NasdaqGS:BBBY - News). BBBY's PowerRatings (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.
Black & Decker (NYSE:BDK - News). BDK's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: BBBY, BDK, CVD, ECL, JNJ, Trading Ideas, UPL, WTI

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Adobe Systems (NasdaqGS:ADBE - News) reports earnings on Monday before the bell, with traders looking for $0.48 EPS. ADBE's PowerRating (for Traders) is 5.
When Spartech (NYSE:SEH - News) announces quarterly results on Monday morning, analysts will be watching for $0.01 EPS. SEH's PowerRating (for Traders) is 6.
Black & Decker (NYSE:BDK - News) fell over 6% on Friday, after lowering its profit forecast for Q4 and the full year. BDK's PowerRating (for Traders) is 5.
CDC Corporation (NasdaqGM:CHINA - News) plummeted 17% after missing analyst earnings estimates on Friday morning. CHINA's PowerRating (for Traders) is 6.
Evergreen Solar (NasdaqGM:ESLR - News) ralled 12% after announcing plans to purchase enough refined silicon to produce 1,000 megawatts of modules by 2012. ESLR's PowerRating (for Traders) is 3.
JA Solar Holdings (NasdaqGM:JASO - News) also rallied 12% after projecting the company will beat analyst estimates for Q4. JASO's PowerRating (for Traders) is 4.
Quiksilver (NYSE:ZQK - News) fell 10% on Friday after missing earnings estimates on Friday morning.

Labels: ADBE, BDK, CHINA, ESLR, Hot Stocks, JASO, SEH, ZQK

Best Buy (NYSE: BBY - News), Circuit City (NYSE: CC - News) and Costco (NasdaqGS: COST - News): BBY is not the best buy because warnings from Home Depot and Sears. While Cramer searched desperately for a reason to be bullish on CC, he couldn't find one. COST is Cramer's favorite warehouse retailer because it is where "the rich people shop."
Whirlpool (NYSE: WHR - News) and Black & Decker (NYSE: BDK - News): Cramer would avoid these stocks because he doesn't envision a housing turnaround in the near future.

Labels: BBY, BDK, CC, COST, Jim Cramer, Stop Trading, WHR

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. Historically, these stocks have provided traders with a significant edge.

Black & Decker (NYSE:BDK) & Onyx Pharmaceuticals (NasdaqGM:ONXX). BDK's PowerRating is 6, and ONXX's PowerRating is 8.
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.
International Paper (NYSE:IP) & Archstone-Smith (NYSE:ASN). IP's PowerRating is 6, and ASN's PowerRating is7.
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.
Gymboree (NasdaqGS:GYMB) & Penn National Gaming (NasdaqGS:PENN). GYMB's PowerRating is 8, and PENN's PowerRating is 8.
Bearish
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.
Citizens Republic Bancorp (NasdaqGS:CRBC). CRBC's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ASN, BDK, CRBC, GYMB, Hot Stocks, IP, ONXX, PENN

Good As Golden Star Resources (AMEX: GSS - News)
Cramer likes GSS as a way to play the CNBC Million Dollar Portfolio Challenge. The company operates in South America and Africa, and is therefore highly speculative, but has a large mine in Ghana, "an island of stability." The bears are worried about a sulfide-processing plant GSS is building in Ghana, but Cramer thinks investors should use this anxiety as an opportunity to buy. He predicts the announcement of a new plant, which will double production and lower costs, will be sooner than expected. With this news, analysts will raise their numbers and the stock will go higher. Cramer also believes GSS may be taken over, and he likes the sector, since gold is moving up. Cramer would not swap out of best-of-breed Yamana to buy GSS, but likes the price at $4.46, and urges investors to use limit orders when buying.
Laser King: Ionatron (NasdaqGM: IOTN), Palomar Medical Technologies (NasdaqGS: PMTI), Syneron Medical (NasdaqGS: ELOS), Cynosure (NasdaqGM: CYNO)
Cramer noted that last Friday's laser pick, IOTN has risen 17% since his recommendation, and he decided to choose a new "laser king." Cramer has liked PMTI in the past and declared ELOS the "czar of lasers" when he was discussing cosmetic laser procedures. Now CYNO wears the laser king crown, since it has doubled while ELOS hasn't moved. In addition, CYNO has 30% growth and is levered to the rest of the world. Cramer added he prefers "a performer that's pricey" to "an underperformer that's cheap." PMTI is Cramer's second-best pick, but is more costly than CYNO, and he likes ELOS, but doesn't see it going up in the near future.
Game Plan for the Coming Week: Fluor (NYSE: FLR - News), McDermott International (NYSE: MDR - News), Foster Wheeler (NasdaqGS: FWLT), CVS/Caremark (NYSE: CVS - News), Dynegy (NYSE: DYN - News), Nabors (NYSE: NBR - News), Halliburton (NYSE: HAL - News), Parker Drilling (NYSE: PKD - News), Forest Oil (NYSE: FST - News), L-1 Identity Solutions (NYSE: ID - News), Precision Castparts (NYSE: PCP - News), Six Flags (NYSE: SIX - News), Syntax-Brillan (NasdaqGM: BRLC)
Cramer suggesting looking at infrastructure, especially MDR, FLR, and FWLT which are "terrific" companies and which should benefit from high oil prices. He would establish half a position before their reports and half after, and would buy the stocks on any weakness. On Monday, he would also buy FST. Cramer praises CVS as having "valued itself even further into the health care heaven" with its cheap Caremark purchase, and would buy ahead of its Tuesday report, adding he also likes DYN. PKD, which also reports on Tuesday, may be bought by NBR or HAL which discussed expansion during their conference calls, Cramer commented. His Wednesday picks include ID, PCP and SIX. Since the LCD TV sector is improving, Cramer likes BRLC which reports on Thursday after the markets close.
CEO Interview: Nolan Archibald, Black and Decker (NYSE: BDK - News)
Nolan Archibald says BDK's report was strong because of the company's "great brands and innovative products" which thrive in down times. BDK is featuring new Dewalt brand products including concrete breakers, hammers and generators. Archibald added the company is going to continue buying back shares. Cramer commented BDK is "the real deal" and sees it rising from $92.36 to $100.
Published By SeekingAlpha

Labels: BDK, CVS, DYN, ELOS, FLR, FST, GSS, HAL, ID, Jim Cramer, Mad Money, MDR, NBR, PCP, PKD, PMTI, SIX

Black & Decker (NYSE: BDK ), Eastman Chemical (NYSE: EMN), Monsanto (NYSE: MON), Dupont (NYSE: DD), Nova Chemicals (NYSE: NCX), Amazon (NasdaqGS: AMZN), Corning (NYSE: GLW), EMC Corp. (NYSE: EMC), Sepracor (NasdaqGS: SEPR) and Amazon (NasdaqGS: AMZN): Cramer predicted "we will be up 1,000 points by the end of this summer" and called this his "conservative forecast." The reason is that stock supply has "all been sucked up" while demand is sending stocks like BDK up ten points from $82 to $92. Cramer commented on NCX's 12% rise, and said even EMN, a sluggish company, is up, although he wouldn't buy it. He observes DuPont's Pioneer Hybrid purchase is finally paying off, and GLW, which was pessimistic, is increasing supply. Other stocks on a "breakout" included EMC Corp, Sepracor and Amazon; "Do you know that there are hedge funds being put out of business today, because of AMZN?" Cramer said, and suggested that short-sellers "Jump out the window."

Labels: AMZN, BDK, DD, EMC, EMN, GLW, Jim Cramer, Jim Cramer's Stop Trading, MON, NCX, SEPR

Black & Decker's (NYSE: BDK - News), Sears (NasdaqGS: SHLD), Best Buy (NYSE: BBY - News), iShares MSCI Emerging Markets (AMEX: EEM - News)
Cramer commented the pin action on earnings news this week occured because expectations were low. For instance, once BDK announced that its inventory glut was easing, hopes were raised for Sears' Craftsman brand. In addition, Matthew Fassler of Goldman Sachs upgraded BBY "with the hopes that we've caught a bottom in durable goods purchases," he said. With Sears' solid clothing business, Cramer thinks SHLD "may be breaking out here." Concerning an article by Daniel Harrison observing that iShares MSCI Emerging Markets is back at $120, Cramer would proceed with caution, because the Chinese government does not like speculation. On the other hand, he expressed annoyance when guests on Erin Burnett's "Street Signs" show on CNBC denied the decline was a buying opportunity. "They were horribly wrong," Cramer said. People need to realize that "when a decline happens, maybe it's prudent to buy, not run from it."
Published by SeekingAlpha

Labels: BBY, BDK, EEM, Jim Cramer, SHLD, Wall Street Confidential

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.
Published by SeekingAlpha

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

Colgate (NYSE: CL - News), Illinois Tool Works (NYSE: ITW - News), Black & Decker (NYSE: BDK - News): Cramer says that many people are more interested in the Fed than stocks, and that the Fed-obsessed may miss out on good moves like buying Colgate, Illinois Tool Works and Black & Decker. He expressed a wish that investors could return to a time when "we recall that there are only certain industries that are hurt by these rates -- auto and housing." Since neither industries are expected to perform well, Cramer believes a rate hike is unlikely, and while he believes there will be a rate cut, he doesn't expect an upside from a rate reduction this year.
3M (NYSE: MMM - News), Merck (NYSE: MRK - News), UPS (NYSE: UPS - News): Cramer commented on three companies which had poor guidance, 3M, UPS and Merck, and said that 3M "doesn't have a clue," Merck has "bad management" and a"very bad pipe," and expressed bafflement at UPS's low guidance.
Motorola (NYSE: MOT - News), Time Warner (NYSE: TWX - News): When Aaron Task asked about Carl Icahn taking a stake in Motorola, Cramer noted that the activist financier has changed his methods; while Icahn once would really shake up a company, he now enters with a "substantive, constructive critique." Cramer said that he was wary of companies that avoid Icahn, because he can offer "tremendous guidance from many different fields," although Icahn tends to be rough on management. Cramer was surprised to see TWX's Dick Parsons, whom Cramer calls "a modern-day classic CEO" embrace Icahn in spite his cool feelings initially. "The CEO matters more than people realize," comments Cramer, "and the CEO sets the tone."
Published by SeekingAlpha

Labels: BDK, CL, ITW, Jim Cramer, MMM, MOT, MRK, TWX

Black & Decker (NYSE: BDK - News), Caterpillar (NYSE: CAT - News), Illinois Tool Works (NYSE: ITW - News), AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), First Horizon (NYSE: FHN - News), Countrywide (NYSE: CFC - News), Transocean (NYSE: RIG - News), Schlumberger (NYSE: SLB - News), Grey Wolf (AMEX: GW - News)
Cramer calls Tuesday's cyclical rally an "amazing confluence of great things" and notes the rapid rise of struggling manufacturing stocks such as CAT, BDK and ITW which were presumed dead when they gave earnings warnings two months ago. Recession fears made the rally of T and VZ seem all the more impressive. The rise in FHN and CFC demonstrate that fears over the health of subprime lending and defaults are greatly exaggerated. Since Tuesday's rally precedes a Fed meeting on Wednesday and a jobs number on Friday: "It's hard not to be bullish," he said. Cramer concluded by commenting that he prefers oil service stocks RIG and SLB to natural gas, even GW.
Published by SeekingAlpha

Labels: BDK, BW, CAT, CFC, FHN, GW, ITW, Jim Cramer

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

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Getty Images (NYSE:GYI - News) missed earnings on Monday after the close; analysts were looking for $0.56 EPS, but GYI could only manage $0.50 EPS. GYI's PowerRating is 4.
UNUMProvident (NYSE:UNM - News) beat earnings on Monday afternoon, announcing $0.52 EPS over an expected $0.44 EPS. UNM's PowerRating is 6.
Black & Decker (NYSE:BDK - News) announces earnings before the bell on Tuesday, with analysts looking for $1.32 EPS. BDK's PowerRating is 6.
Colgate-Palmolive (NYSE:CL - News) reports earnings on Tuesday morning; watch for $0.77 EPS. CL's PowerRating is 5.
Jetblue Airways (NasdaqGS:JBLU - News) is expected to announce $0.11 EPS Tuesday before the market opens. JBLU's PowerRating is 7.
Analysts are watching for Merck (NYSE:MRK - News) to report $0.51 EPS Tuesday morning. MRK's PowerRating is 6.
Look for Procter & Gamble (NYSE:PG - News) to announce $0.84 EPS Tuesday before trading begins. PG's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: BDK, CL, GYI, Hot Stocks, JBLU, MRK, PG, UNM

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Getty Images (NYSE:GYI - News) missed earnings on Monday after the close; analysts were looking for $0.56 EPS, but GYI could only manage $0.50 EPS. GYI's PowerRating is 4.
UNUMProvident (NYSE:UNM - News) beat earnings on Monday afternoon, announcing $0.52 EPS over an expected $0.44 EPS. UNM's PowerRating is 6.
Black & Decker (NYSE:BDK - News) announces earnings before the bell on Tuesday, with analysts looking for $1.32 EPS. BDK's PowerRating is 6.
Colgate-Palmolive (NYSE:CL - News) reports earnings on Tuesday morning; watch for $0.77 EPS. CL's PowerRating is 5.
Jetblue Airways (NasdaqGS:JBLU - News) is expected to announce $0.11 EPS Tuesday before the market opens. JBLU's PowerRating is 7.
Analysts are watching for Merck (NYSE:MRK - News) to report $0.51 EPS Tuesday morning. MRK's PowerRating is 6.
Look for Procter & Gamble (NYSE:PG - News) to announce $0.84 EPS Tuesday before trading begins. PG's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: BDK, CL, GYI, Hot Stocks, JBLU, MRK, PG, UNM

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

Summary: Bears worry an impending recession lies ahead, driven by overleveraged consumers burned by a collapse in home prices, and a huge current-account deficit that bespeaks our lust for consuming more than we produce and spending more than we save. But according to GaveKal, an international research boutique and respected advisor to some of the world's largest companies, the consumer is healthy, the U.S. economy stable, a housing crash improbable, and U.S. stocks are dramatically underpriced despite their current levels. The global economy, it asserts, is on the threshold of a decades-long deflationary boom that will lift America and much of the world to unprecedented prosperity. Its optimism stems from a theory that profound economic changes have and are taking place that have been ignored by most commentators -- specifically a business model it calls the "platform company." Its characteristics:
The platform company outsources low-return, volatile portions of its operations to low-cost manufacturers at home and abroad, focusing its resources instead on value-adding ventures such as R&D. This model seems to be behind the current surge in U.S. corporate profitability: Platform companies have reduced capital-spending needs, which also allows them to slash their debt-service burdens.
For platform companies R&D now dwarfs capital spending: This year the U.S. will spend about $330b on research and development, versus China's $136b. This global change is an "unalloyed good" according to GaveKal: productivity is enhanced, and intellectual property/knowledge is pursued to earn the higher returns that accompany breakthrough products and technologies.
GaveKal is not moved by America's growing account deficit, currently 7% of its GDP: U.S. household net worth stands at $54 trillion and growing at about $3t a year -- far larger and far faster than the $2.5 trillion it owes the rest of the world. Furthermore, trade statistics measure dollars, not profits per sale: The sale in the U.S. of a $700 computer might generate a negative trade balance of $450, because of components from Asian vendors shipped for assembly in the U.S. But the transaction might generate only a $30 profit for the Asian vendors, while high-margin American beneficiaries -- say a Dell system, with Microsoft software and an Intel microprocessor -- might realize a profit of about $250; the U.S. comes out a big winner even though the trade balance says it lost.
It's little wonder that foreigners are willing to finance our trade deficit: America boasts cutting-edge technology, high-margin companies, enviable productivity growth, liquid markets, political stability and strong private-property protection.
A housing market collapse is unlikely; real housing price growth in Ireland, the U.K., Spain, Sweden, France, Australia and the Netherlands have all outpaced that of the U.S. over the past 8 years, and seem none the worse. Barron's: "Optimism is often a tougher sell than bearishness. But based on the trends of the past half-century, GaveKal's argument looks like one worth buying."Highlighted companies: The following companies are cited in the article as being platform companies: Apple Computer Inc. (NASDAQ: AAPL - News), Motorola Inc. (NYSE: MOT - News), Hewlett-Packard Co. (NYSE: HPQ - News), Dell Inc. (NASDAQ: