Jim Cramer Blog

On Tuesday’s show, Cramer focused on green stocks that are good investments. Cramer reviewed his green picks from back in April to see how they had done since then.
Shaw Group (SGR): It is up 143% from about $30 to $74 since April.
Foster-Wheeler (FWLT): It is up 99% since April and had great earnings last quarter.
BorgWarner (BWA): It is up 38% since April, and Cramer thinks it will go higher because it has an increasing backlog.
OM Group (OMG): This is the only stock that is down since April, falling 5%. Cramer thinks the stock has started to bounce back from its lows already.
First Solar (FSLR): The stock has climbed 171% and Cramer is still bullish, but wants you to wait until after it reports earnings on Wednesday before buying more.
Fuel Tech (FTEK): This stock is up 35%, but guided down after reporting earnings Tuesday morning.
MEMC (WFR): This stock is up 20% since April and Cramer thinks the company will grow 52% over the next two years.
Tatra Tech (TTI): It is up 14% since April, and Cramer thinks it will keep going up slowly but steadily.
Cramer thinks every one of these stocks will go higher, and thinks that going green is good for business.
Cramer then went to the phone lines. The first caller asked about Zoltek (ZOLT), and Cramer said that although he recommended this stock a while ago he pulled out because he thought he was getting greedy. He now thinks this stock will keep going up. The second caller asked about BP (BP), and Cramer doesn’t think you can own this company because of its green initiatives. The next caller asked about SunPower (SPWR) and Cypress (CY), and Cramer said that Cypress is safer, but he likes both stocks.
The CEO of Wells Fargo (WFC) was on the show to talk about their alternative energy investments and positions, as well as the prospects. Cramer said this is the only banking stock he wants you to buy.
“Am I Diversified?”
The first email asked about UBS (UBS), and Cramer said that he has messed up with every financial pick he had made recently, and thinks you should wait until the stock hits $45 before you buy. The next email asked about Oceaneering International (OII), and Cramer said he didn't like the most recent earnings call. The next email asked if the recent investment in Tesoro (TSO) by Kirk Keorkian's was a bet that oil will drop, and Cramer said that could be right, but that TSO could drop if oil prices decline. The final email asked about lululemon (LULU), and Cramer said he wants nothing to do with the stock since it has gone up so much.

Labels: BP, BWA, CY, FSLR, FTEK, FWLT, Jim Cramer, Mad Money, OII, OMG, SGR, SPWR, TTI, UBS, WFR, ZOLT

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

Buy Magna (MGA), Jim Cramer said Tuesday on CNBC's Stop Trading! segment.
Cramer said investors in the auto supplier sector should be considering how exposed the various players are to Russia, which he said is a wealthy nation whose growth will be a driver of fortunes in this group.
Cramer also likes BorgWarner (BWA) and Tenneco (TEN), though he cautioned Tenneco is the most expensive in the group and has the worst balance sheet. Magna, by contrast, is the "best run" company and has been "a monstrous good stock."

Labels: BWA, Jim Cramer, MGA, Stop Trading, TEN

CEO Wall of Shame: Terry Semel of Yahoo! (NasdaqGS: YHOO)
Cramer added Yahoo CEO Terry Semel, the "master of the art of overpromise and underdeliver," to his CEO Wall of Shame after the company failed to meet expectations yet again on Tuesday. "You can't raise the bar really high and then implode," Cramer says. "And you certainly shouldn't be allowed to do it repeatedly." He thinks Terry Semel is even worse than IBM's Sam Palmisano and Citigroup's Chuck Prince.

Money in the Banks: Downey Financial (NYSE: DSL), Wachovia (NYSE: WB), Lehman Brothers (NYSE: LEH), Bear Stearns (NYSE: BSC), Goldman Sachs (NYSE: GS), Impac Mortgage (NYSE: IMH)
Downey may be the next Golden West, a savings and loan which was recently bought by WB in a controversial yet beneficial move, according to Cramer. He thinks DSL is one of the best risk/reward stocks around, and believes it will double if it is acquired, may benefit if the Fed raises interest rates, or if it busts the shorts, which hold 40% of DSL's float. Cramer would buy LEH, BSC, GS, commenting "what was negative four weeks ago is now positive for banks," and he thinks IMH could double on any good news.
Green Day Part 3: BorgWarner (NYSE: BWA), Halliburton (NYSE: HAL), Transocean (NYSE: RIG)
Continuing his Green Day series, Cramer discussed BWA an auto-supplier which is sought-after because of its fuel efficient turbochargers, for which there is high demand across the industry. Since many of its clients are overseas, he doesn't think BWA will be affected by problems with domestic car sales. When a caller asked if traditional energy is "peaking" in the wake of "Green Day," Cramer replied that oil is "still in a multi-year expansion" but prefers oil service stocks such as Halliburton and Transocean.

Mad Mail: Superior Offshore, Burger King (NYSE: BKC), Southern Copper (NYSE: PCU), FuelCell Energy (NasdaqGM: FCEL)Cramer told a viewer he doesn't think IPO Superior Offshore's strategy of paying a special cash dividend before going public is a bad idea, and noted companies like BKC have been successfully doing the same thing. When asked if PCU will "drop like a rock" again in late April and early May, Cramer said he would still buy PCU, and the pattern is linked with China. Finally, he agreed FCEL will rise because of the "Green Day" decision.
Pubished By SeekingAlpha

Labels: BKC, BSC, BWA, DSL, GS, HAL, IMH, Jim Cramer, LEH, Mad Money, PCU, RIG, WB

Abercrombie & Fitch (NYSE:ANF - News) said its January sales at stores open at least one year fell 6%. Analysts, on average, had expected it to post a same-store-sales drop of 1.9%, according to Thomson Financial. Net sales for the five weeks ended Feb. 3 rose 37% to $252.3 million. The New Albany, Ohio, clothing retailer said sales in its fiscal 2006 rose 19% to $3.32 billion from $2.79 billion.
Accuray (NasdaqGM:ARAY - News) shares rocketed up in company's initial public offering.
Alcon Inc. (NYSE:ACL - News) reported fourth-quarter net earnings of $354.7 million, or $1.16 a share, compared with $60.7 million, or 19 cents a share, during the same quarter a year ago. Results from the year-ago period included $207.7 million in after-tax charges, or 66 cents a share.
Akamai Technologies Inc. (NasdaqGS:AKAM - News) said fourth-quarter net income fell, as costs and expenses rose, to $20.6 million or 12 cents a share, from $25.8 million, or 16 cents a share, during the same period in the prior year. Before items, quarterly per-share income rose to 27 cents from 16 cents in the prior year.
Alkermes Inc. (NasdaqGS:ALKS - News) reported that net income for its fiscal third-quarter rose to $2.9 million, or 3 cents a share, from $1.4 million, or 1 cent a share, for the same quarter last year. Excluding items, Alkermes would have reported adjusted earnings of 11 cents a share.
AnnTaylor Stores (NYSE:ANN - News) said its January same-store sales fell 10.2% from a year earlier, assuming both periods include four weeks. The fashion-apparel retailer said Thursday net sales increased 21% to $149.9 million for the five weeks ended Feb. 3 from $123.9 million for the comparable four-week period a year ago. Same-store sales calculation for the latest January tracks performance for the four weeks ended Jan. 27 and its net sales calculation tracks results for the five weeks ended Feb. 3. Year-earlier results were for the four weeks ended Jan. 28. For fiscal 2006, AnnTaylor expects earnings of $1.95 a share to $1.98 a share.
Aspreva Pharmaceuticals Corp. (NasdaqGS:ASPV - News) shares rose after the Victoria, British Columbia-based company late Wednesday reported fourth-quarter net earnings of $26 million, or 73 cents a share, up from $24.3 million, or 68 cents a share, in the year-ago period. Revenue rose to $52.5 million from $45 million. Analysts polled by Thomson Financial were expecting a per-share profit of 66 cents. Aspreva forecast 2007 royalty revenue of more than $245 million.
Beckman Coulter (NYSE:BEC - News) reported fourth-quarter net income of $62.3 million, or 97 cents a share. Excluding one-time items, the company would have earned $1.03 a share compared to 73 cents a share a year ago. Revenue rose 8.6% to $712 million. The company said it sees 2007 adjusted earnings in the range of $3.10 to $3.25 a share. It expects revenue to increase by 7% to 9%.
BG Group (NYSE:BRG - News) said fourth-quarter profit dropped 18% to 410 million pounds, with revenue down 10% to 1.9 billion pounds. Though production rose 5% and it saw "strong" growth in the liquified natural gas business, lower gas prices, a weaker U.S. dollar and an increased North Sea tax rate. The company affirmed its earnings outlook to 2009, sees exploration and production volume growth of 5% to 7% a year to 2009, and is "more confident" of achieving higher levels of its 6%-to-10% volume growth view to 2012.
Bon-Ton Stores Inc. (NasdaqGS:BONT - News) said January same-store sales rose 6.4%. Total sales for the five weeks ended Feb. 3 increased 283%, to $240.6 million. Analysts surveyed by Thomson Financial forecast a same-store sales rise of 0.5%.
BorgWarner (NYSE:BWA - News) said its fourth-quarter earnings fell 37%, due in part to restructuring charges related to asset impairments in North America, supplemental to restructuring activities announced in the third quarter. The Auburn Hills, Mich. maker of automotive power train products had fourth-quarter earnings of $40.9 million, or 70 cents a share, compared with $64.6 million, or $1.12 a share, a year earlier. Excluding the restructuring charges and other items, the company had earnings of 99 cents a share. BorgWarner said revenue for the quarter ended Dec. 31 rose 15% to $1.2 billion from $1.05 billion a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 95 cents a share on revenue of $1.11 billion. Analyst earnings forecasts typically exclude unusual items. In addition, the company said it expects 2007 earnings of $4.70 to $4.90 a share. BorgWarner had earlier forecast 2007 earnings of $4.60 to $4.80 a share. BorgWarner also reiterated its sales guidance, saying it expects sales growth of 7% to 9%.
Bunge (NYSE:BG - News) said its fourth quarter net profit rose 77% to $264 million, or $2.12 a share, from $149 million, or $1.25 a share in the year-earlier period. Net sales rose 14% to $7.68 billion amid signs of a turnaround in the Brazilian business and higher demand for core products related to the bio-fuels industry. The latest results included net gains of $74 million, or 60 cents a share. Analysts polled by Thomson Financial were expecting earnings of $1.44 a share on revenue of $7.44 billion. The company said it expects earnings in 2007 to be in a range of $4.56 to $4.71 a share. Separately Bunge announced that its CFO William Wells will leave the company effective April 1. It added it has begun a search for a replacement.
Circuit City Stores (NYSE:CC - News) said it will close stores and shake up its merchandising team in a move to improve its financial performance.
Citi Trends Inc. (NasdaqGS:CTRN - News) said comparable store sales for the five weeks ended Feb. 3 rose 3.2%. Analysts polled by Thomson Financial had expected growth of 0.2%. The apparel retailer said total January sales increased to $36.2 million from $20.9 million during the same period in the prior year.
Corrections Corp. of America (NYSE:CXW - News) said its fourth-quarter net profit rose 37.6% to $32.2 million, or 52 cents a share, from $23.4 million, or 39 cents a share, a year earlier. Revenue for the quarter ending Dec. 31 rose 10.2% to $349.6 million. Analysts polled by Thomson Financial had been expecting earnings of 44 cents a share on revenue of $343 million. The company said its results were driven by strong demand for prison beds from both federal and state customers. The company said average compensated occupancy for the period rose to 96.6% from 93.1%. The company said it expects earnings in the first quarter to be in the range of 43 cents to 37 cents a share, with earnings for 2007 in the range of $1.95 to $2.05 a share.
Dollar Tree Stores (NasdaqGS:DLTR - News) said fourth-quarter sales rose 22.2% to $1.32 billion, helped by an extra week compared with the year-ago quarter. Analysts, on average, expected the Chesapeake, Va., variety-store chain to post quarterly sales of $1.3 billion. Same-store sales, or sales at stores open at least a year, rose 5.5% for the quarter.
DSW Inc. (NYSE:DSW - News) said fourth-quarter same-store sales rose 1%, with total sales increasing to $329.1 million from $283.8 million. Analysts surveyed by Thomson Financial forecast revenue of $315.2 million, on average.
Electronic Data Systems Corp. (NYSE:EDS - News) said fourth-quarter profit nearly doubled, while revenue grew 11%. Computer services giant EDS said its net income for the quarter ended Dec. 31 rose to $217 million, or 40 cents a share, from $112 million, or 21 cents, a year earlier.
Exide Technologies (NasdaqGM:XIDE - News) reported adjusted EBITDA of $54.1 million for the third quarter, up 32% from last year's equivalent total of $41.1 million.
Express Scripts Inc. (NasdaqGS:ESRX - News) said increased generic drug use and lower costs resulted in a 32% surge in fourth-quarter profit and prompted the pharmacy benefits manager to boost its outlook for the full-year period.
Published By Michael Baron

Labels: ACL, AKAM, ALKS, ANF, ANN, ARAY, ASPV, BEC, BG, BONT, BRG, BWA, CC, CTRN, CXW, DLTR, DSW, EDS, ESRX, XIDE