Jim Cramer Blog

Merrill Lynch (MER)- There was speculation on Wall Street that Stan O'Neal will be removed as CEO and Chairman of the Board over the weekend. CNBC's Charlie Gasparino joined the show to discuss O'Neal leaving. Gasparino says rumors are out that Larry Fink the CEO of BlackRock could be named the new Chairman and the CEO position might be split between Greg Flemming and Bob McCann. Najarian said he still would be a buyer of Merrill and that if O'Neal doesn't go, he expects the stock to go down to $55. However, Macke advocates shorting Merrill when O'Neal leaves.
BEA Systems (BEAS)- Carl Icahn has sent a letter to the board of BEA saying its time to come to the negotiating table with Oracle (ORCL). Rumors are that BEA wants $21 share and Oracle offered $17. The offer is set to expire on Sunday.
Microsoft (MSFT) traded up 15% after profits and revenues handily beat Wall Street estimates. Macke remarks that the earnings were great especially from Microsoft and the shorts are getting crushed. Finerman feels the market is very confusing with tech performing well, but many financial stocks doing poorly. Adami prefers Intel (INTC) here and noted that the Citigroup analyst put a $33 price target on the name. Najarian favors Apple (APPL)
Rate Cut- The crew then discussed how next week the Federal Reserve will meet to decide on interest rates and the jobs report will be released. Najarian thinks that the Fed is going to cut rates and that's why the financials flew Friday. He advocates staying with the good sectors like technology and asset mangers and avoid the rest. Macke and Finerman agree that the jobs number will be the best indicator for the economy.
Crude oil hit another record Friday trading above $92. Adami points out how Exxon (XOM) isn't rallying into record oil prices and suggests the company might miss earnings. XOM has a rich valuation and the price action signals that it may move lower. Adami admits that Exxon scares him in front of earnings. He thinks if Exxon reports bad results, it could take the Dow lower. Finerman mentioned that Kirk Kerkorian's Tracinda is looking to buy 16% of Tesoro (TSO).
Procter & Gamble (PG) is also set to report earnings on Tuesday. Procter is one of Macke's favorite trades in front of earnings. Finerman likes Procter as well and Kraft (KFT) which reports earnings on Wednesday. Manitowoc (MTW) is also set to report on Wednesday, which Najarian is partial to.
Quicker than the Ticker- On October 23rd Najarian said buy Vmware (VMW). He nailed the call and the stock has risen 10%. On September 27th Macke recommending buying Yahoo (YHOO). Macke was right and the stock appreciated 20% since his call. On September 20th Adami said buy Microsoft (MSFT). Adami was on the money and Microsoft killed Wall Street's estimates and traded up 11%.
Fast Fire- On October 5th Macke recommending buying Coach (COH). Macke was way off and Coach fell 21% since his call. On October 15th Najarian favored Broadcom (BRCM). He dropped the ball on BRCM and the stock fell 16% after disappointing earnings. On September 12th Adami said he loved Zimmer Holdings (ZMH). Since his call the stock has dropped 15%. On October 1st Finerman advised investors to buy put options on Garmin (GRMN). The stock has risen 9% since her call and she is now admitting defeat and moving on.
Pops & Drops
Pops - Merck (MRK) traded up 8%.
Goldman Sachs (GS) traded up 8%.
DeVry (DV) exploded up 47%.
Deckers Outdoor (DECK) traded up 34% on strong profits.
Baidu.com (BIDU) traded up 12% after profits more than doubled.
Black and Decker (BDK) popped 18% on strong international sales numbers.
Monster Worldwide (MNST) traded up 12% on strong profits.
Drops - Schering Plough (SGP) fell 7% after missing Wall Street estimates.
WellCare Health Plans (WCG) plunged 73% after the FBI raided their offices.
Final Trade
Macke favors Intel (INTC).
Adami recommends Dell (DELL).
Finerman says short the United States Oil Fund (USO).
Najarian grabs a buy ticket for Baker Hughes (BHI).

Labels: BEAS, BRCM, CNBC, COH, Fast Money, Fast Money Recap, MER, MSFT, PG, VMW, ZMH

Biogen (BIIB) announced plans to put the company up for sale after-hours. They hired Goldman Sachs and Merrill Lynch to search for a deal. Biogen management thinks that selling the company would represent a better value to shareholders. Adami offers Pfizer (PFE) as a possible buyer. Najarian suggests trading off the news with Elan (ELN). Merck (MRK) also traded up after-hours on winning FDA approval for a new HIV drug. Oracle (ORCL) announced a bid for rival software provider BEA Systems (BEAS) for $6.7 billion

Technology

CNBC Silicon Valley Bureau Chief Jim Goldman joined the show on Friday. Goldman doesn't expect anything big from Yahoo! (YHOO). In fact, he thinks they will disappoint. IBM (IBM) and Intel (INTC) will report good news. Goldman notes that a lot of people are concerned about eBay (EBAY) and the stock has already made a run. Adami agrees on Intel and thinks they can knock the cover off into earnings. Macke disagrees and thinks Yahoo! is setting up to work for a trade. Macke didn't agree on eBay because he thinks management is progressive. Najarian advises watching SanDisk (SNDK) for a takeover play.

Regional Banks

Regional bank names like Wells Fargo (WFC), US Bancorp (USB) Sovereign Bank (SOV), Washington Mutual (WM), PNC Bank (PNC) and Fifth Third Bancorp (FITB) will report earnings next week. Adami likes US Bancorp.

Nike (NKE) was selected as the chart of the day after hitting all-time highs on Friday. Happy 52-week high Nike.

Word on the Street

Technology stocks rallied back strong on Friday with names like Apple (AAPL), Google (GOOG) and Bidau.com (BIDU) all racking up solid gains. McDonald's (MCD) traded higher on Friday after reporting strong September sales. Macke is still bullish on MCD. Retail stocks continue to struggle even with Wal-Mart (WMT) finishing the week higher. Crude oil hit another record high this week trading up to $83.69. Adami thinks Tesoro (TSO) goes to $60 and he also likes Valero (VLO). Finerman continues to like ConocoPhillips (COP).

Pops & Drops

Pops- Monsanto (MON) traded up 3%

PetroChina (PTR) popped 13% even after Warren Buffett trimmed his stake in the Chinese oil giant.

BP (BP) popped 7% following crude oil prices.

General Motors (GM) and Ford (F) both traded up over 10% as the UAW settle strikes with GM and Chrysler.

Drops- Boeing (BA) fell 5% after delaying production of the Dreamliner.

JC Penney (JCP) fell 9% off of negative headlines.

SanDisk (SNDK) dropped 9%.

Final Trade

Najarian likes the global growth play in McDonald's (MCD)

Finerman would eat up Kraft (KFT).

Adami: Tesoro (TSO) and his $60 target.

Labels: BEAS, BIIB, CNBC, Ebay, Fast Money, Fast Money Recap, FITB, IBM, INTC, ORCL, SOV, WFC, WM

Cramer talked about three stocks that could benefit this week from the weak dollar. Coca-Cola (KO), which Cramer expects to hit $60 next week. The stock closed at $57.80.
Next is United Technologies (UTX), which Cramer said should "handily" beat its numbers with its great overseas exposure. Lastly, there is Altria (MO), which he also owns for his Action Alerts PLUS and which he believes is still the cheapest stock on the Dow Jones Industrial Average. Cramer also said that Citigroup (C) CEO Chuck Prince could be out of his position next week. Market players should consider getting into Citigroup by Friday.
BEA Systems (BEAS) got a massive takeover bid from Oracle (ORCL), something Cramer said he's been predicting would happen for a while. Activist investor Carl Icahn told Cramer that he was "right on" with his predictions. Icahn also said he feels Motorola (MOT) has "great value" and should be split up.
UBS (UBS) - Cramer told viewers that when a stock reports bad news and still goes higher, it's telling people it has bottomed and is ready to go much higher. He said that the bad news had been priced in the stock and now it is ready to go higher.
Tutogen Medical (TTG). On speculation Friday, Cramer said that although the stock is less than $1 away from its 52-week high, it looks like Tutogen could be headed up on deals with other companies. Cramer likes the stock, because it's likely it will get a bid from Zimmer Holdings (ZMH).
Cramer welcomed Chicago Bear linebacker Hunter Hillenmeyer on his show. When Hillenmeyer asked Cramer about Las Vegas Sands (LVS), Cramer pointed out the management there is "extraordinary." However, he believes Wynn (WYNN) is running the best casino in Macau. Cramer advised taking a little off the table. Next, he suggested Hillenmeyer consider selling JetBlue (JBLU) on Monday and buying more NYSE (NYX), which Cramer owns for his charitable trust, below $80

Labels: BEAS, Jim Cramer, KO, Mad Money, Mad MOney Recap, MO, ORCL, UBS, UTX

Chip stocks traded lower after Morgan Stanley downgraded Intel (INTC), Advanced Micro Devices (AMD) and NVIDIA (NVDA) to underweight. CSX Corporation (CSX) traded lower after it was also downgraded by Morgan Stanley. Mattel (MAT) and Hasbro (HAS) traded lower after BMO Capital Markets downgraded the toy sector. Macke: the downgrade is about taking gains and he is still long Hasbro and Disney (DIS).
Carl Icahn: raised his stake in Temple-Inland (TIN) to 8.9% and BEA Systems (BEAS) to 11%.
Word on the Street
Wheat traded lower for the second day in a row on bearish planting forecasts. Najarian: the pullbacks in commodity names like BHP Billiton (BHP) and Freeport-McMoRan (FCX) are buying opportunities. He also sees continued buying in October call options on EchoStar (DISH). Macke agrees.
iShares FTSE/Xinhua China 25 Index ETF: falls 5% after a huge 2-day run.
TXU (TXU): Dylan Ratigan reported that financing for a TXU (TXU) buyout could be set to go next week. If this deal closes it will be the largest private equity deal ever. Finerman says that Guitar Center (GTRC) is also close to getting a deal done. Finerman's play on this very recent trend is Lehman Brothers (LEH) and Goldman Sachs (GS).
Blackberry
The Blackberry has been a gigantic hit for Research In Motion (RIMM) and investors have seen the stock for RIMM go up 126% on the year. Global Crown Capital increased the RIMM target price to $180 a share.
Face2Face
First writer asked about China Finance Online (JRJC), China BAK Battery (CBAK) and even Baidu.com (BIDU). Macke says neither bubble nor exuberance come to mind. He tells writer that these are momentum plays and you should treat them as such.
Another writer asked for some insight into what Garmin's (GRMN) recent volume is telegraphing? It was 7 times the average volume to the downside when the NAVTEQ (NVT) deal was announced Monday. Finerman: this is disruptive for two reasons. First, it makes the valuation of Garmin rich, and second it's a problem for Garmin to have someone buy the software it needs to make its product. Finerman owns NAVTEQ for a play on Garmin taking it over.
Pops & Drops
Pops- Panera Bread (PNRA) traded up 8%. Adami thinks Panera will rally into earnings and then it will be time to sell it.
Harley Davidson (HOG) traded up 6% off. Najarian says its still way off the highs.
Kaiser Aluminum (KALU) popped 7%. Finerman agrees that the stock is still undervalued.
Circuit City (CC) traded up 5%. Macke: Get out of Circuit City while you can.
KB Home (KBH) traded up 5%. Adami says take the profits and run.
NYSE Euronext (NYX) traded up 2%. Adami says $85 will be big resistance for NYX.
Drops- Wynn (WYNN) fell 10% and Las Vegas Sands (LVS) fell 12% off of disappointing growth numbers for Macau. Najarian says the numbers out of Macau were not as big as people thought they would be, hence the disappointment.
Midway Games (MWY) fell 5%. Macke: MWY is married to Sony whose Playstation has tough competition against the Nintendo Wii.
Final Trade
Macke: sell homebuilders and book the short-term gains.
Finerman: going with Icahn and BEA Systems (BEAS).
Najarian likes Apple (AAPL).

Labels: AMD, BEAS, BHP, CNBC, CSX, DIS, DISH, Fast Money, Fast Money Recap, FCX, HAS, INTC, MAT, TIN

Charlie Gasparino joined the "Fast Money" crew to discuss his take on the Bear Stearns (BSC) and rumos that Warren Buffett is part of a group of investors considering a 20% stake in BSC. He believes that Bear Stearns is going to be taken private. Guy Adami suggests that it makes no sense at all for Buffett to acquire Bear. According to Adami, Buffet's expertise is in value plays and Bear isn't a value play. Najarian declares that all brokers are back in play and recommends buying Lehman (LEH). Finerman agrees.
An American Icahn
Carl Icahn: Wants to see BEA Systems (BEAS) sold. Motorola (MOT): Bullish on their risk rewards.
GM On The Road Again
General Motors (GM) ended its two-day strike after making a health care agreement with the United Auto Workers. This changes the tune for General Motors, according to Jeff Macke. He advises buying auto parts suppliers like Lear (LEA), Visteon (VC) and BorgWarner (BWA). Adami suggests looking at Ford (F). Najarian prefers Goodyear Tires (GT).
No Deal
Sallie Mae (SLM) made news on Wednesday as a private-equity group pulled out of a deal to buy it for $25.3 billion. Macke: "stick a fork in it." Najarian disagrees and believes the deals are just being re-shifted down. Finerman isn't surprised the deal fell through. One potential deal that has her interest is Genesco (GCO).
Tech Rally
Technology stock leaders are still shining Google (GOOG), Amazon (AMZN), Hewlett Packard (HP), Cisco (CSCO) and Apple (AAPL) with 52 week highs.
Word on the Street
Bed Bath & Beyond (BBBY): Macke advises selling.
Monsanto (MON): Selling at twice its growth rate.
Newmont Mining (NEM): Dropped 6%.
Pops & Drops
Pops: Deere (DE) traded up 3%. Pier One Imports (PIR) popped 11%. China BAK Battery (CBAK) exploded by 46%. Affiliated Managers Group (AMG) traded up 4%.
Drops: Under Armour (UA) fell 6%. Timberland (TBL) dropped 8%.

Final Trade
Macke: recommends selling Bear Stearns (BSC).
Finerman: is positive that BEA Systems (BEAS) is going higher.
Najarian: top pick is Isis Pharmaceuticals (ISIS).
Adami: prefers NYSE Euronext (NYX)

Labels: AAPL, AMZN, BEAS, BSC, BWA, CNBC, CSCO, F, Fast Money, GCO, GM, GOOG, GT, HP, LEA, LEH, MOT, SLM

Stocks ended the week on a high note, rising on upbeat earnings news. At the close, the Dow Jones ended with a gain of 53 points, while the Nasdaq gained 17. The broader S&P 500 added 7 points on the day. The price of crude eased -16 cents to finish the session at $81.62 a barrel. For the trading week, all the major market indices picked up substantial gains in the face of the Fed's decision to cut both the Fed's funds rate and the discount rate by -50 basis points.
On the banking front, European banking powerhouse HSBC Holdings (NYSE: HBC - News) notified investors that it will be closing its Decision One subprime mortgage unit in the U.S. The company's HSBC Finance arm will take an $880 million charge, as well as incur a $65 million charge for restructuring costs. Elsewhere, billionaire Wilbur Ross offered to buy American Home Mortgage's services unit for $435 million. In order to complete the purchase, he will have to win a court-sanctioned auction for the unit next month.
A couple of notable earnings were released late Thursday, including from software giant Oracle (Nasdaq: ORCL - News), which reported fiscal first-quarter net income of $840 million, or 16 cents a share. Excluding items, EPS would have been 22 cents, a penny ahead of analyst estimates. Revenue for the period totaled $4.53 billion, up 26% from year-ago levels. New license revenue for applications surged 65%, while service revenue rose 25%. Looking ahead, the software company run by founder Larry Ellison is forecasting second-quarter earnings of 26-27 cents a share (excluding items). Shares rose 4.4%, setting a new yearly high.
Sneaker and apparel company Nike (NYSE: NKE - News) said fiscal first-quarter profit hit $569.7 million, or $1.12 a share, up from $377.2 million, or 74 cents a share, in the year-ago period. Excluding a 20-cent a share gain from a tax benefit, earnings would have been 92 cents, 5 cents ahead of analyst predictions. Sales rose 11% to $4.66 billion. Nike cited strong international growth, especially in Europe and Asia, for the strong quarter.
In other corporate news, semiconductor maker Texas Instruments (NYSE: TXN - News) saw its shares rise 2.4% after it announced a further addition of $5 billion to its stock repurchases. The additional amount to its share repurchase programs brings its total to $8.8 billion. In addition, the company also lifted its dividend 25%, which would now equate to 10 cents a share.
Billionaire investor Carl Icahn has upped his stake in software maker BEA Systems (Nasdaq: BEAS - News) to 9.9%. Icahn has been pressuring the company to put itself up for sale for quite some time. This is now the second time he has upped his stake in as many weeks.
Shares of audio company Harman International (NYSE: HAR - News) plunged -20.9% after The Wall Street Journal reported that its private equity buyers are having second thoughts about taking the company private. The firm later confirmed right before the bell that the deal was a no go.
In other tech news, shares of Internet high-flyer Google (Nasdaq: GOOG - News) reached an all-time, rising 1.3% on the day. Coincidently, three of its executives once again appeared on Forbes' 400 Richest Americans list.
By Mike Conte, BullMarket.com

Labels: BEAS, GOOG, HAR, HBC, NKE, ORCL, TXN

Labels: ACTU, BEAS, BIDU, DISCA, FCSX, Jim Cramer, Lightning Round, Mad Money, MOT, NLY, NOK, RSH, WB, WNG

Bullish:
PepsiCo (PEP), BEA Systems (BEAS), General Motors (GM), RRSat Global Communications Network (RRST), Zumiez (ZUMZ), Superior Offshore International (DEEP), Oshkosh Truck (OSK), Northrop Grumman, L-3 Communications (LLL), Lockheed Martin (LMT), General Dynamics (GD), Cisco Systems (CSCO), XTO Energy (XTO), GMX Resources (GMXR), Siemens (SI), Transocean (RIG), Schlumberger (SLB), Prudential Financial (PRU), MetLife (MET) and Halliburton (HAL).
Bearish:
Smart Balance (SMBL), Parametric Technology (PMTC), DirecTV (DTV), Parker Drilling (PKD) and Assurant (AIZ).

Labels: BEAS, CSCO, DEEP, GD, GM, GMXR, Jim Cramer, Lightning Round, LLL, LMT, Mad Money, OSK, PEP, PRU, RIG, RRST, SI, SLB, XTO, ZUMZ

Cramer opened saying the Fed "knows something" and retired his "they know nothing button," in response to the Fed lowering interest rates by 0.5%. They also decreased the discount rate by 50 basis points to 5.25%. Cramer also believes there are "three more rate cuts" to come in the future, which will lead the market to recovery. Look for stocks that yield more than treasuries. In terms of stocks, Cramer said, "almost everything works now," and you should consider buying the following stocks:
Wachovia (WB) "should go higher."
Google (GOOG), Cramer believes is going to break out.
Foster Wheeler (FWLT), Deere (DE), Caterpillar (CAT- which Cramer owns for his charitable trust Action Alerts PLUS) should work now as well.
ExxonMobil (XOM) and ConocoPhillips (COP)—should both work for oil.
Bullish Icahn: one of his favorite activist investors is "proven winner" Carl Icahn. Cramer says Icahn's been "extremely bullish" on one big software company: BEA Systems (BEAS). Icahn wants BEAS to sell because they haven't been able to prosper as a stand-alone company. Bottom line: Cramer likes fundamentals of BEAS, takeover is potential, and is a company with "limited downside."
Prescription Plan: Cramer discussed a bill that passed in Congress that will require doctors to use either tamper resistant paper or electronic records. He thinks will benefit Quality Systems (QSII) and All Scripts (MDRX).
Genesis Lease (GLS), CEO John McMahon on the show and Cramer asked him why his company is not doing well, despite the fact that its’ 8.2% yield. McMahon said, “mispricing of the stock.” Cramer recommends buying GLS.

Labels: BEAS, CAT, COP, FWLT, GLS, GOOG, Jim Cramer, Mad Money, Mad Money Lightning Round, MDRX, QSII, WB, XOM

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.

SWS Group (NYSE:SWS). GTN's PowerRating is 7.
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.
Avon Products (NYSE:AVP). SMRT'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.
Adobe Systems (NasdaqGS:ADBE - News). ARRY's PowerRating is 7.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Marvel Entertainment (NYSE:MVL) & Sears Holding Corporation (NasdaqGS:SHLD). MDVN's PowerRating is 8, and AMAG's PowerRating is 6.
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. Historically, these stocks have provided traders with a significant edge.
Bea Systems (NasdaqGS:BEAS). ODP's PowerRating is 4.
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.
KeyCorp (NYSE:KEY). AFN's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: ADBE, AVP, BEAS, Hot Stocks, KEY, MVL, SHLD, SWS

Bullish calls:
Denny's (NasdaqCM: DENN): 'I want to be candid. They did not have a good month. I am sticking by them because, what I liked them for is the restructuring that's fixing their balance sheet ... it's part of my little under-$10 package that I think is ramping, and that I think goes still higher. DENN is fine with me. I want to hold it.'Blockbuster (NYSE: BBI - News)Dynegy (NYSE: DYN - News)Companhia Vale do Rio Doce (NYSE: RIO - News): 'This company accomplished something that no other company could do in the western hemisphere... It literally merged with its #2 competitor ... and it has created a mineral powerhouse ... I think it's got $45 written on it. I have liked this company for 10 points. I bet you I like it for another 15! But, I've got to tell you - let's understand - it's had a big run. It is up 68% year over year. It goes to $40, and goes to $45. It probably pulls back a little, and ultimately goes to $50.'NYSE Group (NYSE: NYX - News): 'I think this is the most undervalued stock on the New York Stock Exchange - how ironic... I just bought some again for my charitable trust last week, and I am anxious to pull the trigger again, because I just think it is so darn undervalued versus when that Euronext deal closes. This one is a keeper.'Yahoo! (NasdaqGS: YHOO): ' ... there was an article in the Wall Street Journal that really said that the Yahoo AT&T relationship is ka-put, that it's just a trainwreck ... Now, over the weekend, YHOO and AT&T put out a series of releases that basically said that the Journal was dead wrong. Maybe it's something in between, but the people who tossed this stock out on Friday overreacted to what I think may have been a lot wrong in that article. I'm staying with YHOO.'eBay (NasdaqGS: EBAY)Big Lots (NYSE: BIG - News): ' ... As soon as I saw the Dollar General buyout, I said that someone is going to bid for this BIG, so I hit it up. Sure enough, 52-week high but, you know what? It probably has a little bit more to go. Now, let me caution... If I owned it, it's up 120% year-over-year, and that means bulls make money, bears make money, but hogs get slaughtered. So, if you owned it for the last year....'BEA Systems (NasdaqGS: BEAS): 'I recommended it at $12. Right now, I'm giving myself 30 lashes... I am disappointed in how this company reported. I still believe that Oracle could take them out ... I want to stick with it for now.'
Neutral calls:
Ford (NYSE: F - News): 'I don't mind the company, but the stock is wrong ... I think that Ford will be successful in its turnaround, but I like to play it with the right piece of paper - the convertible bond.'
Bearish calls:
USG (NYSE: USG - News): 'USG is a really interesting situation, because it never seems to ever go right where Warren Buffet says that he would buy the rest of it, which is mid-40s... Now, USG in the end, is deeply levered to the housing market, and you know that I am a bear on housing.'Heelys (HYLS): 'I think that HLYS is over-valued ... I went recently to a couple of sporting goods stores. They're stocked to the gills with Heely's. I don't like to see that. Sell, sell, sell!'News Corp. (NYSE: NWS - News): 'We're a dollar away from register ringing on NWS. It doesn't mean I dislike it. It does mean it's had a really big run.'Quiksilver (NYSE: ZQK - News): 'Awful. Awful. I've got to tell you. This is one of the worst quarters I have seen from any apparel company, and they're blaming the warm weather ... I hate those kind of excuses. In other words, what I'm saying is, it's probably too late to sell right now but, if that stock rallies, sell, sell, sell!'
Published By SeekingAlpha

Labels: BBI, BEAS, BIG, DENN, DYN, Ebay, F, Jim Cramer, Lightning Round, Mad Money, NWS, NYX, RIO, USG, YHOO, ZQK

Apple Inc. (NasdaqGS:AAPL - News) Chief Operating Officer Tim Cook reiterated that the company remains on track to release its iPhone mobile-phone product in June, and that Apple expects to sell 10 million of the devices in 2008.
Audible Inc. (NasdaqGM:ADBL - News) reported a fourth-quarter net loss of $700,000, or 3 cents a share, compared with a net loss of $2.18 million, or 9 cents a share, in the year-ago period. Revenue at the Newark, N.J.-based provider of Internet audio content rose to $23.3 million in the latest quarter from $18.3 million a year ago. The stock was upgraded to buy from hold at Jefferies & Co.
BEA Systems (NasdaqGS:BEAS - News) was upgraded to peer perform from underperform at Bear Stearns.
CDC Corp. (NasdaqGM:CHINA - News) lifted its financial outlook for 2007, saying it now expects adjusted net income of $57 million to $62 million, above its prior forecast of $55 million to $60 million. The company expects revenue of $415 million to $420 million for the year, a boost from its previous estimate of $401 million to $411 million.
Ciena (NasdaqGS:CIEN - News) was upgraded to overweight from neutral by J.P. Morgan, as the broker said the recovery in the optical market is greater than it first expected.
Deckers Outdoor Corp.'s (NasdaqGS:DECK - News) preliminary fourth-quarter results indicate net income nearly doubled to $23.5 million, or $1.82 a share, from $12.1 million, or 94 cents a share, a year earlier. The Goleta, Calif., maker of outdoor footwear and apparel said net sales increased 37% to $124.4 million from $91 million a year ago.
Dollar Thrifty Automotive Group (NYSE:DTG - News) reported a fourth-quarter loss of $2.7 million, or 11 cents a share, down from a year-ago profit of $8.2 million, or 31 cents a share. The latest results include 10 cents a share in transition costs related to the outsourcing of information technology services and a charge of 5 cents a share from a decrease in the fair value of derivatives, while last year's performance reflects a gain of 11 cents a share from an increase in the fair value of derivatives. Revenue rose 11.5% in the three months ended Dec. 31 to $392.8 million from $352.4 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a loss of a penny per share in the December period. The company said the latest results reflect a very strong pricing environment, as well as significantly higher vehicle depreciation and interest costs compared to last year. Looking ahead, the Tulsa, Okla., car rental company sees earnings of $2.50 to $2.90 a share in 2007. Wall Street's current consensus estimate is for a profit of $2.62 a share for the year.
Dollar Tree Stores Inc.'s (NasdaqGS:DLTR - News) fiscal fourth-quarter net income rose to $97.6 million, or 96 cents a share, from $86.5 million, or 81 cents a share, a year ago. A Thomson Financial survey of analysts, on average, predicted earnings of 94 cents a share for the quarter. Analysts' estimates usually exclude items. The Chesapeake, Va., discount retailer's net sales for the quarter ended Feb. 3 rose 22% to $1.32 billion from $1.08 billion a year ago, boosted by an extra sales week in the current quarter. The company expects first-quarter earnings of 32 cents to 35 cents a share on sales of $935 million to $955 million.
Dycom Industries Inc. (NYSE:DY - News) shares rose after the Palm Beach Gardens, Fla.-based engineering and construction services provider reported fiscal second-quarter net earnings of $5.59 million, or 14 cents a share, up from $3.87 million, or 10 cents a share, in the year-ago period. Revenue rose to $258.3 million from $237.1 million. Analysts polled by Thomson Financial were expecting a per-share profit of 13 cents on revenue of $253.4 million. Dycom forecast fiscal third-quarter earnings from continuing operations of 23 cents to 28 cents a share on revenue of $275 million to $295 million. Analysts are looking for a per-share profit of 24 cents on revenue of $275 million.
Goodyear Tire & Rubber Co. (NYSE:GT - News) plans to record a charge of $65 million in the first quarter of 2007 for changes to its benefit and pension plans. The Akron, Ohio-based tire maker said, among other changes, current and future salaried retirees will contribute more toward the cost of their medical benefits and that the company would freeze its defined benefit pension plan for current salaried employees, replacing it with 401(k) retirement accounts. The changes will be phased in over a two-year period, and Goodyear expects savings of $80 million to $90 million in 2007, $100 million to $110 million in 2008, and $80 million to $90 million in 2009 and beyond.
Hospira (NYSE:HSP - News) reported a nearly 80% jump in fourth quarter profit Wednesday on higher product volumes, higher prices and favorable currency exchange. The company earned $47.4 million, or 30 cents a share, on the period - up from $26.6 million, or 16 cents. On an adjusted basis, Hospira said it would have earned 43 cents a share, vs. 32 cents in the last three months of 2005. Revenue came in at $706.5 million, a gain of 9.3%. The average estimate of analysts polled by Thomson Financial was for Hospira to earn 38 cents a share on $674 million in revenue.
Kenneth Cole Productions Inc. (NYSE:KCP - News) reported fourth-quarter net earnings of $7.99 million, or 39 cents a share, up 6.9% from $7.48 million, or 37 cents a share, in the year-ago period. Revenue in the quarter ended Dec. 31 rose to $122.4 million from $119.8 million.
King Pharmaceuticals (NYSE:KG - News) reported fourth-quarter earnings of $37 million, or 15 cents a share, up from a year-ago loss of $95 million, or 39 cents a share. Excluding items, such as charges from asset impairment and an arbitration settlement, the company earned $98.8 million, or 41 cents a share, in the latest quarter. Revenue rose in the three months ended Dec. 31 to $512.9 million from $423.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 37 cents a share in the December period on revenue of $480.6 million.
Komag (NasdaqGS:KOMG - News) shares rose after American Technology Research analyst Shaw Wu lifted his rating on the hard-disk maker's stock to neutral from sell. Wu said Komag is benefitting from more sales to its largest customer, Seagate Technology , which accounts for 37% of Komag's revenue. However, Wu warned that Komag faces other fundamental challenges as it deals with rising costs and competition involving a shift to newer disk-recording technologies.
L-3 Communications (NYSE:LLL - News) was upgraded to neutral from underweight by J.P. Morgan, with the brokerage saying the stock should have limited downside given its high free cash flow yield. "We believe 2007 could be a more challenging year for defense stocks, and given L-3's more modest valuation, we no longer expect it to underperform the group," the broker said.
Leap Wireless International (NasdaqGS:LEAP - News) shares advanced after the San Diego-based provider of wireless communications services reported a fourth-quarter net loss of $39.4 million, or 60 cents a share. In the same quarter last year, the company posted a net profit of $4.95 million, or 8 cents a share. Revenue rose to $315.5 million from $228.9 million. Analysts polled by Thomson Financial were expecting a per-share loss of 35 cents on revenue of $316 million. Leap said it added 262,000 net new customers in the fourth quarter, and expects to add 260,000 to 320,000 net new customers in the first quarter.
Martha Stewart Living Omnimedia (NYSE:MSO - News) said fourth-quarter net income jumped to $16.2 million, or 31 cents a share, from $2.9 million, or 6 cents a share in the year-ago period. Total revenue rose to $97 million from $84.6 million. Analysts, on average, expected it to earn 25 cents a share on revenue of $95 million, according to Thomson Financial. For 2007, the company is expecting revenue in the range of $330 million to $340 million, operating income in the range of $5.5 million to $8.5 million and adjusted EBITDA in the range of $32 million to $35 million, including an investment of $8 million in "Blueprint" magazine.
Medical Action Industries (NasdaqGS:MDCI - News) was upgraded to buy from neutral at Sidoti & Co.
Merck & Co. (NYSE:MRK - News) said it expects its first-quarter profit will be 63 to 67 cents a share, excluding restructuring charges related to site closures and position eliminations, and targets reported first-quarter earnings per share of 58 cents to 64 cents. Whitehouse Station, N.J.-based Merck cited early revenue trends across Merck's range of products. The company also raised its anticipated 2007 earnings forecast range to $2.55 to $2.65 a share, excluding items related to site closures and position eliminations, and its full-year 2007 reported earnings range to $2.40 to $2.55 a share. Analysts, on average, expect it to earn 60 cents a share for the first quarter and $2.62 a share for the year, according to Thomson Financial. Merck said its forecasts do not reflect the establishment of any reserves for any potential liability relating to the Vioxx litigation.
Midwest Air Group Inc. (AMEX:MEH - News) , citing its own growth forecasts, urged its shareholders again Wednesday to reject a takeover offer from AirTran Holdings Inc. "AirTran's low-cost carrier business model is in trouble. By virtually any metric, AirTran's business is deteriorating," according to a letter Midwest sent to its shareholders.
Published By MarketWatch

Labels: AAPL, ADBL, BEAS, CHINA, CIEN, DECK, DLTR, DTG, DY, GT, HSP, KCP, KG, KOMG, LEAP, LLL, MDCI, MEH, MRK, MSO

Bullish calls:Crocks (NasdaqGS: CROX): ' ... take advantage of the way the bears pushed down Crocs.'Under Armour (NYSE: UA - News) InterDigital (NasdaqGS: IDCC): 'I'm blessing. ... I think it's OK. It is at a 52-week high.'Yamana Gold (NYSE: AUY - News): '52-week high I am not backing down. We caught a double.'Texas Roadhouse (NasdaqGS: TXRH): 'JPMorgan stepped up to the plate today and they agree that Texas Roadhouse should no longer be the punching bag that it's been. ... It's going to 20.'Transocean (NYSE: RIG - News)Mastercard (NYSE: MA - News): 'People who sold MasterCard are going to be dead wrong. ... MasterCard at 107, two thumbs up, way up.'Halliburton (NYSE: HAL - News): 'What I am sticking with is, on the low valuation [Halliburton and Transocean.]'NYSE Group (NYSE: NYX - News): 'Indeed, my stock of the year. ... Indeed when that merger is done ... the Euronext deal ... the numbers will go up ... And I am proud to say that I backed up the truck when it went into the 80s. Did you?'Onyx Pharmaceuticals (NasdaqGM: ONXX): '... I think people feel Onyx Pharma has run too much. ... I think it can get a bid.'BEA Systems (NasdaqGS: BEAS)Devon Energy (NYSE: DVN - News)Marvell Technology (NasdaqGS: MRVL)
Bearish calls: Delia's (NasdaqGM: DLIA): 'Too Tough.'Goldcorp (NYSE: GG - News): 'I used to love GG, then they did that really bad merger.'Helix Energy (NYSE: HLX - News)New River Pharmaceuticals (NasdaqGM: NRPH)Chesapeake Energy (NYSE: CHK - News)

Published By SeekingAlpha

Labels: AUY, BEAS, CHK, DVN, GG, HAL, HLX, Jim Cramer, Lightning Round, MA, Mad Money, MRVL, NYX, ONXX, RIG, UA

Bullish calls:
Cemex (NYSE: CX - News): 'CX is one of the best stocks out there. ... CX - the Mexican cement company that's buying American companies... that one's for me. I'm giving it two thumbs up.'BEA Systems (NASDAQ: BEAS - News): 'They are saying this BEAS hasn't taken off since Cramer recommended it. So, therefore, it must have no mojo, and they could not be more wrong. If you look at the Oracle quarter, after that disappointment, you can see it cries out for an acquisition. It needs China play. You know what that spells: BEAS.'Cisco (NASDAQ: CSCO - News)Allegheny Technologies (NYSE: ATI - News): 'I say you should only playing with the house's money right now. This company produces stainless steel - but much more important - it makes titanium for BA. It makes airplane titanium, therefore, it is still too cheap. I bless it, anytime it's under $90.'Occidental Petroleum (NYSE: OXY - News): I think OXY's good. There's like a scale here, of which are the companies most levered to crude: The company that should go up or down with the crude is OXY. The least levered is XOM. I like to have a little bit of both.'Exxon Mobil (NYSE: XOM - News): 'I don't like to be unlevered like XOM, although I know it's going higher. 'Chevron (NYSE: CVX - News): 'So I settle on CVX, which is my fave, for those of you who want steady income. It yields 2.75%, and it just seems to always have a bid underneath, but it doesn't go down.'Devon Energy (NYSE: DVN - News): 'And, for those who want to roll the dice, I talk about the stock that got downgraded today, criminally and wrong, which is DVN. DVN's good.'
Bearish calls:
Smith & Wesson (NASDAQ: SWHC - News): 'I don't like the stock. SWHC was one we nailed in the $5-6 range. When it got to $14, we said we be hogs.'JDSU (NASDAQ: JDSU - News): 'JDSU - I have been over that quarter with a fine-tooth comb... I think that JDSU - and let me roll up in CIEN - these I call - these are 'too hard' because they're too likely to give you (an electric shock sound).'Ciena (NASDAQ: CIEN - News): 'I feel very strongly that anybody who calls me with the JDSU or the CIEN... I would tell you that they should buy CSCO.'Allied Waste (NYSE: AW - News): 'You know, I was going to recommend this stock. I feel like this is the best one of the waste removal companies, but here's your problem: It grows at 13%, and it sells at 24x earnings. On Jim Cramer's Mad Money, the upper limit is 26x. So, if I told you to buy this at $12, I'd have to tell you to ring the register at $14. So, the answer is 'don't buy, don't buy.'

Labels: ATI, AW, BEAS, CIEN, CSCO, CVX, CX, DVN, JDSU, Jim Cramer, Lightning Round, Mad Money, OXY, SWHC, XOM