Jim Cramer Blog

Bullish calls:
Vodafone (VOD): 'You know I like VOD!... It's part of my European invasion... ' Verizon (VZ): 'Ivan Seidenberg [CEO]... why have you been hiding? Why don't you come on the show? You know I love you... I do. I think he's fabulous.' Unilever (UN) Sirius Satellite Radio (SIRI): 'I think the merger happens in the first quarter. I've been recommending this stock since $2.75 … you're going to get $6, when the deal comes across... At $6 bucks, then we're done.' Hologic (HOLX): 'This one is - buy, buy, buy! - my absolute favorite right now, when it comes to diagnostics. It was knocked down a couple of points because of that financing..' FCStone Group (FCSX): 'It's just unbelievable how good FCSX turned out to be, and I'm sorry that I gave it just a trade, and not an investment.' Best Buy (BBY): 'BBY is best in show.' Costco (COST): 'I like BBY. Not as much, though, as I like 52-week high, Costco!' Sonic (SONC): 'But SONC is in there buying back stock. It's a regional-to-national store chain. I reiterate that I like that stock very much!' Diamond Offshore (DO): 'Maybe you take a little off the table, but that is some great company!' Transocean (RIG): 'I don't like [Diamond Offshore] as much as I like Transocean.'
Bearish calls:
Broadcom (BRCM): 'No way, no way... sell, sell, sell! BRCM is just challenged.' LHC Group (LHCG): 'I 'm not a believer in that business.' Qualcomm (QCOM) Centex(CTX)
Published By SeekingAlpha

Labels: BBY, BRCM, COST, CTX, DO, FCSX, HOLX, Jim Cramer, LHCG, Lightning Round, Mad Money, QCOM, RIG, SIRI, SONC, UN, VOD, VZ

The Dow closed down 218 points and the Nasdaq fell 43 points on Monday. Finerman sees storm clouds are everywhere and the Goldman downgrade of Citigroup (C) really hurt the markets. Najarian had a fun day trading. He also thinks the financial sector is in big trouble and he is extremely worried about General Motors (GM) which fell below $27.
Louise Yamada, a highly ranked technician on Wall Street, joined the show to discuss her analysis on the technicals of the market. She is currently worried that the S&P 500 could break 1406, which would signal to her an end of the longer-term uptrend. Yamada is still bullish on Cisco Systems (CSCO) and she would look to buy pullbacks on the name. She looked at the chart on Broadcom (BRCM) calling it a sell because it hasn't followed through after a false break-out. The chart on Coca-Cola (KO) is initiating an uptrend according to Yamada, so she would be a buyer of KO. Bed Bath and Beyond (BBBY) should be sold.
Retail
Nordstrom (JWN) reported a 22% rise in third-quarter profits helped by an extra week of sales.
Sears Holdings (SHLD) disclosed it has taken a 13.7% stake in Restoration Hardware (RSTO) and the possibility of proposing an acquisition.
Target (TGT) is set to report earnings Tuesday before the opening bell.
Hewlett-Packard (HPQ) clocked a 28% jump in profits off of strong notebook sales.
Medtronic (MDT) reported a 2% decline in profits, but the stock trades 3% higher after hours.
Lowe's (LOW) dropped 7% after reporting a 10% decline in profits due to the weak housing market.
Celgene (CELG) bought Pharmion (PHRM) for $2.9 billion. Adami thinks that Phizer must make a similar acquisition.
EchoStar (DISH) shares exploded higher Monday after Citigroup said there was a 65% chance that AT&T (T) will buy DISH.
Ultimate Fighting is now the fasting growing spectator sport in the United States. Macke says look for growth in cable companies and satellite companies like Viacom (VIA) and EchoStar. He also thinks makers of energy drinks like Coca-Cola will benefit. He said avoid the World Wrestling Entertainment (WWE) because the UFC is taking share. Lastly, Macke speculated that Anheuser-Busch (BUD) could be near a beverage deal with the UFC.
Pops & Drops
Pops - Xerox (XRX) traded up 2%.
Intercontinental Exchange traded up 3%
VeriSign (VRSN) traded up 2%.
Drops - E*TRADE (ETFC) fell 13% even with speculation of a takeover by Ameritrade (AMTD)
Wynn Resorts (WYNN) fell 7%
Genesco (GCO) plunged 24%.
Disney (DIS) fell 4%
General Motors (GM) fell 8% after the automaker announced plans for year-end discounts to clear out inventory.
Dillard's (DDS) fell 5%.
Tween Brands (TWB) fell 13%
Final Trade
Macke would purchase Dicks Sporting Goods (DKS) and Target on any selloff Tuesday
Najarian advises buying EchoStar (DISH) on a pullback under $44.
Finerman is long Goldman Sachs Group (GS) and short Lehman Brothers Holdings (LEH).
Adami recommends Vodafone Group (VOD) for a play on China.

Labels: BBBY, BRCM, CELG, Citigroup Inc., CNBC, CNBC's Fast Money, CSCO, DISH, Dow Jones, Fast Money Recap, GM, HPQ, JWN, KO, LOW, MDT, Nasdaq, PHRM, SHLD, TGT

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

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.
Guess? (NYSE:GES - News). GES'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.
W.W. Grainger (NYSE:GWW - News). GWW'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.
Encore Acquisition (NYSE:EAC - News) & Liberty Global (NasdaqGS:LBTYK - News). EAC's PowerRating (for Traders) is 8, and LBTYK's PowerRating (for Traders) is 7.
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.
Broadcom (NasdaqGS:BRCM - News). BRCM's PowerRating (for Traders) is 7.
Bearish
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.
New York Times (NYSE:NYT - News) & Hovnanian Enterprises (NYSE:HOV - News). NYT's PowerRating (for Traders) is 3, and HOV's PowerRating (for Traders) is 4.
Published By TradingMarkets.com

Labels: BRCM, EAC, GES, GWW, Hot Stocks, HOV, LBTYK, NYT

Citigroup (C) brought back fears of credit problems. Citigroup reported a 57% decline in profits. Finerman: not surprised at the report. Macke: no reason to be long Citigroup. Adami: $45 is still the exit on the stop out for the Citigroup trade. Najarian pointed out E*Trade (ETFC) and Knight Capital (NITE), which are reporting earnings on Wednesday.
Louise Yamada, who has been ranked the #1 technical analyst on Wall Street, joined the show to discuss the stock market. She likes Broadcom (BRCM). The charts tell her that technology is the best place to be right now. Najarian thinks Broadcom looks great because it was tearing higher in a negative tape on Monday. He also thinks that the market is starting to digest the fact that oil at $85 is probably not a great thing. He highlighted the strength in Exxon Mobil (XOM) and Oil Service HOLDRs (OIH). He also advised investors to keep an eye on coal stocks like Peabody Energy (BTU) and Massey Energy (MEE).
Technology: IBM (IBM), Yahoo! (YHOO) and Intel (INTC) are set to report earnings after the bell Tuesday. Macke: IBM will be the least surprising. Najarian: IBM options are pricing in a big move. Najarian favors Intel and deems them in the sweet spot. Macke: look at Yahoo! and any signs of the company breaking up will send the stock 10% higher.
Coca-Cola (KO) and Altria (MO) are set to report earnings on Wednesday. Finerman currently owns Altria. Adami: likes the dividend and agrees with Finerman on the valuation on Altria. Macke: Coca-Cola will benefit from a weak dollar and global growth. Najarian proposes Coca-Cola as a play on the growth in energy drinks.
Word on the Street
Chinese stocks continued to go higher Monday with the Hang Seng hitting record highs. PetroChina (PTR) passed up General Electric (GE) as the world's 2nd-largest company. Genentech (DNA) beat earnings estimates, but revenues fell short of Wall Street estimates. The former CEO of Children's Place (PLCE) has hired Bear Stearns to look at alternative options for the company. Macke would rather play Build-A-Bear Workshop (BBW) for a takeover play. SiRF Technology (SIRF) saw unusual options activity on Monday. Najarian participated by buying some SIRF call options Monday and feels the stock could move higher.
Pops & Drops
Pops- U.S. Steel (X) traded up 2.5%
Saks (SKS) traded up 4%. Macke advises investors to get out of Saks.
Drops- Level 3 (LVLT) dropped 11%. They're looking for a new CFO.
Medtronic (MDT) fell 11%. Najarian counsels viewers to stay away.
Sallie Mae (SLM) dropped 4% on news that buyout firms are getting cold feet
Eaton (ETN) fell 4% after cutting its 4th quarter outlook. Adami considers keeping an eye on Honeywell (HON) to see if the sector is in trouble.
Regional Bank ETF (KRE) dropped 3%. Adami feels positive about U.S. Bancorp (USB) into earnings, but the KRE drop has him concerned.
Mattel (MAT) fell 1% on poor earnings due to the Chinese toy recalls. Macke prefers Hasbro (HAS), which he is long.
Final Trade
Macke would buy NRG Energy (NRG)
Adami prefers Short Dow30 PROSHARES (DOG) for a short the Dow play.
Finerman is sticking with Flowserve (FLS).
Najarian recommends Cypress (CY).

Labels: BRCM, BTU, Citigroup Inc., CNBC, ETFC, Fast Money, Fast Money Recap, IBM, INTC, MEE, NITE, OIH, YHOO

Qualcomm Inc. engaged in "aggravated litigation abuse" and waived its rights to enforce the video transmission technology patents involved in its lawsuit with Broadcom Corp., a federal judge ruled Monday.

The video transmission technology patents cannot be enforced because Qualcomm deliberately concealed them from the Joint Video Team, a standards-setting group, according to a release.
The company also failed to produce thousands of documents related to the case until after the end of the January trial, which was considered misconduct. Qualcomm was also ordered to pay Broadcom's legal fees, according to a release.
San Diego-based Qualcomm (NASDAQ: QCOM - News) sued Broadcom in October 2005 alleging violation of video transmission patents. A jury sided with Broadcom, but in May the company said the 35,000 documents concealed from the trial by Qualcomm put the validity of the case into question, according to the Wall Street Journal.
According to a release, "The court concluded, 'In light of all the above evidence finally revealed, the eventual collapse of Qualcomm's concealment efforts exposes the carefully orchestrated plan and the deadly determination of Qualcomm to achieve its goal of holding hostage the entire industry.'"
Qualcomm said it will appeal the decision, according to Reuters. Several other lawsuits remain between the two companies.
Irvine-based Broadcom (NASDAQ: BRCM - News) produces semiconductors for wired and wireless communications.
Published August 7, 2007 by Los Angeles Business from bizjournals

Labels: BRCM, Broadcom Corp., QCOM, Qualcomm Inc.

The Dow, S&P 500, and Nasdaq all ended the week on a high note despite consumer confidence troubles. The latest numbers were released today with the statistic at a 10-month low. Meanwhile, exports climbed to an all-time high as the trade deficit dropped to $58.5 billion. Oil prices were down over -$2 as concerns from the cyclone subsided and on expectations that U.S. supplies would increase for the sixth week in a row. The dollar was stronger this week as well, which buffeted against inflation concerns.
Shares of Tyco (NYSE: TYC) were up 3.6% today on more news of its three-way breakup. The company will separate its healthcare and electronics companies into their own public entities. Shareholders as of June 19th will receive one share of each of the new companies for every four shares of Tyco that they own, and then a reverse-split will take place condensing the four shares into one share of Tyco. Tyco will spend approximately $1.6 billion in the separation, which is to take place on June 29th.
McDonald's (NYSE: MCD) announced that its comparable-store sales for the month of May increased at its highest rate in three years, as sales climbed 8.7%, well clear of the 5% that analysts had predicted. The company credits new smaller sandwiches gaining popularity in France, as well as its tie-in with Shrek the Third in the U.S. Domestically, same-store sales were up 7.4%. The stock rose 2.4% on the news.
National Semiconductor (NYSE: NSM) released fourth-quarter earnings today, and the stock jumped 14.7% on the good news. Earnings were down from a year ago, from 34 cents a share to 28 cents a share, but still beat analyst expectations by 5 cents a share. The company also announced that its board had approved a $1.5 billion share buyback program.
Vail Resorts (NYSE: MTN) also got a boost from its earnings announcement for its fiscal third quarter ended April 30th. The company earned $1.99 per share, up from $1.75 per share a year ago, and in line with expectations. Revenue from its real estate unit jumped from $7.1 million to $17.1 million this past quarter.
Cell phone maker Qualcomm (Nasdaq: QCOM) received a ban on importing any new phones while its chip design infringes on a patent owned by Broadcom (Nasdaq: BRCM) in a ruling by the U.S. International Trade Commission. However, most analysts do not think that this will have much impact in the near term as it allows continued sales of models already being shipped to the U.S. Some feel that it could cause a limit to the competition for Apple's (Nasdaq: AAPL) iPhone.

Labels: AAPL, BRCM, MCD, MTN, NSM, QCOM, TYC

J.C. Penney (NYSE: JCP - News), Ralph Lauren (NYSE: RL - News): Cramer sees JCP's 3% selloff as an opportunity to buy, and comments that management has its "eye on the ball." He praises its deal with RL which will produce private-label clothes to be sold exclusively by JCP. Cramer would by the stock at every 2 or 3 point dip.
Whole Foods (NasdaqGS: WFMI) and Wild Oats (NasdaqGM: OATS): Cramer likes WFMI's plan to buy OATS, because the move will eliminate a price-cutting competitor, raise margins and will give the company a chance to make a comeback after its decline in November.
Analog Devices (NYSE: ADI - News), Texas Instruments (NYSE: TXN - News), Broadcom (NasdaqGS: BRCM), Qualcomm (NasdaqGS: QCOM): Cramer cites ADI CEO Jerald Fishman's comments that inventory correction is over as a reason to expect a rally in TXN, QCOM, and BRCM, although he comments that QCOM is "too litigious for my taste."

Labels: ADI, BRCM, JCP, Jim Cramer, Jim Cramer's Stop Trading, OATS, QCOM, RL, TXN, WFMI

Labels: AGIX, BRCM, DO, GOOG, GPS, IYR, ONXX, stock options

Cramer said glut talk from big memory chipmaker Micron (MU) points up the futility of trying to buy tech out of season. Cramer said it's unwise to buy tech stocks till the latter end of the year, because of the way Wall Street works. Thus he said he's not surprised to see Micron down 3% and the SOX index of chip stocks down 1.2% even in the wake of upgrades from JPMorgan and Deutsche Bank.
Cramer said he could "make a case" for buying Broadcom (BRCM), given how far the stock has fallen, and he owns Marvell (MRVL) for his charitable trust. But he said those plays are strictly long-term holdings, based on how poor results have been and the seemingly low risk that they can get any worse.
Cramer doesn't like gas driller Chesapeake (CHK), saying it's "not my cup of tea" because management has "financed the heck out of it." Cramer said while Chesapeake goes from $29 to $29 to $29, Marathon Oil (MRO) is moving ahead.
Cramer also said the rally in Agco (AG ) shows that the bull case on ethanol and agriculture can overcome even the most pathetic, quarter-missing fundamentals.
Published By TheStreet.com

Labels: AG, BRCM, CHK, Jim Cramer, Jim Cramer's Stop Trading, MRO, MRVL, MU

Stocks reversed course in the afternoon session as earnings season wound towards a conclusion. Earlier in the day, the market appeared poised for a rally until Federal Reserve governors William Poole of St. Louis and Richard Fisher of Dallas each said in separate speeches that interest rates could go higher if inflation doesn't taper off. Those comments proved to be the catalyst for the afternoon's selling pressure. Oil prices hovered in the vicinity of $60 a barrel, while bond prices also slipped with the yield on the 10-year Treasury note moving to 4.78%.
MasterCard (NYSE: MA - News) reported results that beat expectations, but the stock dropped -10% after the company warned that margins could come under pressure in 2007 and that it did not plan any price increases. The credit card company said it earned $41 million, or 30 cents a share, compared with a loss of -$53 million, or -39 cents per share, a year earlier. The company's revenue increased 17% to $839 million. The company also upped its quarterly cash dividend to 15 cents a share from 9 cents. MasterCard's shares have more than doubled since its IPO last year.
Automotive stocks were one of the day's stronger performers following upgrades by Deutsche Bank, which raised its rating on both General Motors (NYSE: GM - News) and Ford Motor (NYSE: F - News) to "buy." GM rose 7% and Ford gained 2%. DaimlerChrysler (NYSE: DCX - News), meanwhile, was upgraded to a "buy" by Citigroup and subsequently rose 2%. In the automotive parts sector, Lear (LEA, $xxxxx) agreed to be taken private by an affiliate of investor Carl Icahn for $2.8 billion, though the company left itself open to other bidders. One major investor criticized the price as too low. Lear finished down -2%.
Upgrades to the semiconductor sector by Deutsche Bank and J.P. Morgan failed to keep most stocks in that sector from succumbing to the day's negative tone. Deutsche Bank raised its rating on chip stocks to "overweight," highlighting market leader Intel (Nasdaq: INTC - News) and Broadcom (Nasdaq: BRCM - News). Broadcom last night reported that net income in the most recent quarter fell -76% due to a change in the way it accounts for stock options. Were it not for the one-time charges, the company would have earned $185 million, or 31 cents a share, compared to $197 million, or 34 cents per share. J.P. Morgan raised its rating for the semiconductor sector to "bullish," but the Semiconductor Sector Index (Philadelphia: ^SOXX) nonetheless closed down -1%.
Telecom equipment maker Alcatel-Lucent (NYSE: ALU - News) declined -3% after posting a Q4 loss and warning that it expects revenue to decline in the current quarter. The company also said it plans to cut 3,500 more jobs than originally planned, or 12,500 in total. In other news, a proxy advisory firm suggested shareholders of Caremark RX (NYSE: CMX - News) reject the merger offer from drug-store operator CVS (NYSE: CVS - News). The advisor, Glass Lewis, said that while the deal made strategic sense, Caremark's board should have allowed shareholders to consider a competing offer from Express Scripts (Nasdaq: ESRX - News).
In other earnings news, lumber and paper products company Weyerhaeuser (NYSE: WY - News) reversed a year-earlier Q4 loss. For the most-recent quarter, the company earned $450 million, or $1.88 per share, against a loss of -$211 million, or -86 cents a share, in Q405, which included costs associated with plant closings.
By Bullmarket.com Staff

Labels: ALU, BRCM, CMX, CVS, DCX, ESRX, F, GM, INTC, LEA, MA, WY

Stocks traded mixed, with the Dow Jones Industrial Average ending the day flat. The broader market averages posted modest gains, while technology stocks showed strength today. After initially spiking higher, crude oil prices retreated to slip below $58 a barrel. Bonds moved higher with the yield on the 10-year Treasury note dipping to 4.75%.
The day's economic news was mostly positive. The Labor Department reported that U.S. productivity grew during the final three months of last year. Non-farm productivity grew at a 3.0% rate in Q4, which reversed a revised -0.1% decline in the previous quarter. The National Association of Realtors, meanwhile, said it believes the housing market bottomed out in the fourth quarter and that sales of existing homes will grow over the course of the current year. New home sales are forecasted to slide again during the current quarter before the trend gradually turns positive.
In business news, Cisco Systems (Nasdaq: CSCO - News) paced technology stocks today after posting better-than-expected fiscal Q2 results after last night's market close. Cisco also guided higher for the current quarter, calling increased use of video-downloading services the driver behind growth of its Internet equipment business. Semiconductor stocks were also strong. Market leader Intel (Nasdaq: INTC - News) was up modestly, while smaller players recorded sharp gains. Infineon Technologies (NYSE: IFX - News) gained 10% after announcing that it had won a contract to supply chips to mobile phone maker Nokia (NYSE: NOK - News). Broadcom (Nasdaq: BRCM - News) added 5% on the eve of its earnings announcement, which is scheduled for tomorrow night. The company was also upgraded to "overweight" by Morgan Stanley.
Health insurer Cigna (NYSE: CI - News), whose shares have risen sharply since the middle of last year when concerns over costs sent the stock into a brief tailspin, reported record Q4 profits. The market cap of the Philadelphia-based insurer rose 2% today and reached a new 52-week high in intraday action. Strong enrollment in its medical plans powered earnings of $232 million, or $2.28 a share, which was up 10% from $210 million, or $1.67 a share, a year earlier. Analysts also noted the company's attention to cost discipline, as Cigna's medical cost ratio beat analyst expectations in the quarter. Another major health insurer, Aetna (NYSE: AET - News), will report its earnings tomorrow before the opening bell. An unexpected spike in Aetna's medical cost ratio last year also caused a sharp sell-off from which the stock has partly recovered. Aetna ended up 1% today.
Rupert Murdoch's News Corp. (NYSE: NWS - News) posted a bottom-line earnings decline of -24% in its fiscal Q2, but the previous year's quarterly results contained a gain from the sale of assets. The company reported profits of $822 million, or 26 cents a share, down from $1.1 billion, or 33 cents a share, a year earlier, but 1 cent better than expected. Revenue rose 18% to $7.8 billion. Profits at appliance maker Whirlpool (NYSE: WHR - News) declined -13%. The company said costs from discontinued operations, higher raw material costs, and reduced demand for home appliances contributed to the weak results. Whirlpool earned $109 million, or $1.37 a share, down from $126 million, or $1.83 a share, a year earlier. The loss from discontinued operations in the quarter was -30 cents per share. Revenue was sharply higher, rising to $5.0 billion from $4.0 billion, aided in part by its acquisition of Maytag.
By the BullMarket.com Staff

Labels: AET, BRCM, CI, CSCO, IFX, INTC, NOK, NWS, WHR

Marvell (MRVL), Broadcom (BRCM), Seagate (STX), Level 3 (LVLT), Blockbuster (BBI), Goldman Sachs (GS): Cramer says that tech is okay for a trade until August, and he likes the wireless chip players because of the iPhone, Xbox and Playstation. Cramer adds that Marvell is 2 down because of its bad quarter, ten up, and mentions that he also likes BRCM and that STX is going higher. Cramer proclaims the death of the bears in speculative plays such as like LVLT, up 5% at $6.26, and Blockbuster, up 2% at $6.78. He predicts that GS, up 3% to $219 will make it to $300.
Marriott (MAR), Starwood (HOT), Hilton (HLT) and Trump (TRMP): Those who don't like hotel stocks "don't do their homework," said Cramer who is bullish on MAR, HOT and HLT, and says he is not afraid of buying TRMP, because it has dropped to $17.
Published by SeekingAlpha

Labels: BBI, BRCM, GS, HLT, HOT, Jim Cramer, LVLT, MAR, MRVL, STX, TRMP

Wireless device chip maker Broadcom Corp. said Thursday it was notified by the Nasdaq Stock Market that the delayed filing of its third-quarter results could serve as an additional reason for the exchange to delist the stock.
Broadcom is one of at least 180 companies that have launched internal probes or are under federal scrutiny for possibly backdating stock option grants.
The company said in July it uncovered some accounting errors related to stock option grants and would need to record an additional $750 million in expenses. In September, the company said it uncovered even more accounting errors, and it expected to record double the amount initially expected, which implied expenses of $1.5 billion.

Labels: BRCM, Broadcom Corp., Nasdaq, NDQ