Jim Cramer Blog

Blackstone Group LP President and Chief Operating Officer Hamilton James said Monday the slumping private-equity market might not fully rebound until major Wall Street banks get a better handle on the credit crisis.
"The mortgage black hole is worsening...it is deeper, darker, scarier than what the banks originally thought," he told analysts during a conference call. "My sense is they don't have a clear picture of how this will play out, and their confidence is low."
James said the banks -- pressured by massive writedowns from losses linked to subprime mortgages - will keep lending standards tight for the time being. He believes the market for leveraged loans, which buyout funds use to finance deals, appears to be picking up after a crippling summer.
Blackstone's third-quarter loss was pinned on charges related to its initial public offering and lower real-estate fees. The buyout shop posted losses of $113.2 million, or 44 cents per share, which included the impact of $802.6 million of non-cash charges for compensation and other items linked to its IPO.

Labels: BX, The Blackstone Group

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Leap Wireless (NasdaqGS:LEAP - News) lost 35% on Friday, after announcing plans to correct accounting revenue mistakes from 3 years ago. LEAP's PowerRating (for Traders) is 7.
Merck (NYSE:MRK - News) rallied over 4% on Friday, on news that the company will pay nearly $5 billion to settle the majority of the company's Vioxx-related lawsuits. MRK's PowerRating (for Traders) is 6.
Blackstone (NYSE:BX - News) reports earnings on Monday before the bell, with traders looking for $0.33 EPS. BX does not have a PowerRating (for Traders) due to its short trading histroy.
Analysts are watching for EchoStar (NasdaqGS:DISH - News) to announce $0.44 EPS on Monday before the market opens. DISH's PowerRating (for Traders) is 5.
Tyson Foods (NYSE:TSN - News) is looking to report $0.10 EPS on Monday morning. TSN's PowerRating (for Traders) is 5.
Globecomm Systems (NasdaqGM:GCOM - News) and Bob Evans (NasdaqGS:BOBE - News) both report earnings after the close on Monday, so watch for heightened price action and volatility ahead of the bell. GCOM's PowerRating (for Traders) is 7, and BOBE's PowerRating (for Traders) is 5.

Labels: BOBE, BX, DISH, GCOM, Hot Stocks, LEAP, MRK, TSN

Bullish
Morningstar (MORN),
Blackstone (BX),
Fifth Third Bancorp (FITB),
Sonic (SONC),
Cisco (CSCO),
Motorola (MOT),
Nokia (NOK),
EMC (EMC)
Caterpillar (CAT).

Bearish
Netgear (NTGR)
Infosys Technologies (INFY),
Audiovox (VOXX),
VMware (VMW),
Clearwire (CLWR)
Alvarion (ALVR).

Labels: BX, CAT, CSCO, EMC, FITB, Jim Cramer, Lightning Round, Mad Money Lightning Round, MORN, MOT, NOK, SONC

Barrick Gold (ABX), Cramer: "the best gold stock to buy right now." Gold is breaking out because of the weak dollar, lower short-term rates and worries about inflation. Cramer prefers Barrick over other gold companies, because they have a lot of gold reserves and are "totally prepared for higher gold prices." The next call was about Freeport McMoran (FCX). Cramer thinks it will keep going up to $120.
Overlooked IPO's:
AthenaHealth (ATH). Cramer likes its subscription revenue and growth prospects. Athenahealth has 42% growth. He then took some more phone calls.
A caller asked about LDK Solar (LDK); Cramer doesn't like because he thinks there is a big sell off in China stocks coming. He also likes First Solar (FSLR) better.
Another caller asked about Blackstone (BX). Cramer thinks the stock has bottomed out and that there is a short term trading opportunity here.
Am I diversified?
First caller named the following five stocks: SAP (SAP), Annaly Capital Management (NLY), Nvidia (NVDA), BEA Systems (BEAS) and Honeywell (HON). Cramer said too many tech stocks. He said to keep BEA and consider buying a health care stock.
Second caller had Apple (AAPL), Trimble (TRMB), Xoma (XOMA), Freeport-McMoRan (FCX) and Goldman Sachs (GS). He suggested selling Trimble and, again, picking up a health care cost-container like Hologic.
The last player's five picks: Monsanto (MON), PepsiCo (PEP) Research In Motion (RIMM), U.S. Steel (X) and Exxon Mobil (XOM). Cramer blessed the portfolio as diversified.
Mad Mail: Responding to an email, Cramer called Walgreen (WAG) "still too expensive," and said he likes the cheaper CVS (CVS), which he owns for his charitable trust, better. He said, "Stay away from Walgreen."
Sudden Death: Cramer was bullish on Flotek Industries (FTK), Celgene (CELG) and Crocs (CROX).

Labels: AAPL, ABX, ATH, BX, FCX, FSLR, Jim Cramer, LDK, Mad Money, Mad MOney Recap, NLY, SAP

Here are 7 stocks for traders for Monday from TradingMarkets.com:
On Friday, Gap (NYSE:GPS - News) rose 5% after announcing that Q2 profit rose 19% from the year before. GPS's PowerRating (for Traders) is 4.
American Woodmark (NasdaqGS:AMWD - News) gained 7% on Friday, after the company increased its dividend and initiated a $100 million stock buyback. AMWD's PowerRating (for Traders) is 4.
Recent IPO Blackstone (NYSE:BX - News) announced that a proposed tax bill legislation currently in the Senate would triple the private-equity firm's yearly taxes. BX does not have a PowerRating (for Traders) due to a short trading history.
Computer Sciences (NYSE:CSC - News) reports quarterly earnings on Monday after the close, with analysts looking for $0.71 EPS. CSC's PowerRating (for Traders) is 4.
Shanda Interactive (NasdaqGS:SNDA - News) should report $0.36 EPS after the bell on Monday. SNDA's PowerRating (for Traders) is 4.
CDC Corporation (NasdaqGM:CHINA - News) and China Medical Technologies (NasdaqGS:CMED - News) both report earnings on Tuesday before the bell, so watch for heightened price action and volatility ahead of the close on Monday. CHINA's PowerRating (for Traders) is 4, and CMED's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AMWD, Blackstone Group, BX, CHINA, CMED, CSC, GPS, Hot Stocks

Stocks rose to modest gains earlier in the day on the heels of upbeat earnings and economic data, but drifted towards the close. At the end of the trading session, the Dow Jones and Nasdaq ended the day lower by -3 points, while the S&P 500 ended the day down fractionally.
On the economic front, the Commerce Department said today that retail sales increased by 0.3% in July after a -0.7% drop in June. Elsewhere, continuing on the theme set forth last week, the Federal Reserve pumped in an additional $2 billion in liquidity into the markets buy purchasing treasuries and other securities. The Fed noted that today's treasury buys were a one-day event.
In company news, investment bank Goldman Sachs (NYSE: GS - News) said today that it will invest $2 billion into its Global Equity Opportunities hedge fund after it lost -28% so far this month. In addition, a group of investors that includes billionaires Maurice "Hank" Greenberg, the former Chairman of American International Group (NYSE: AIG - News), and Eli Broad will invest an additional combined $1 billion into the fund. Shares were higher earlier in the day, but fell -1.7% at the close.
On the earnings front, private equity behemoth The Blackstone Group (NYSE: BX - News) reported net income of $774 million, up from $224 million last year. Profit excluding some compensation costs rose to 46 cents a share, significantly higher than the 11 cents a share it posted last year. Analysts were looking for earnings of 34 cents a share. Revenues climbed to $975 million from $325 million last year. On the retailing side, shares of Sears Holdings (Nasdaq: SHLD - News) rose 5.6% after the company said its board has authorized an additional $1.5 billion stock buyback. The retailing juggernaut also said second-quarter results may be weak as same-store sales at both its Kmart and Sears stores fell -3.8% and -4.3%, respectively. The retailer now sees earnings of $170-185 million, or $1.13-1.23 a share. Subscribers can read our analysis of Sears Holdings in today's issue.
In M&A news, Midwest Air Group (NYSE: MEH - News) agreed to be taken over by an investor group led by Texas Pacific Group (TPG) Capital in an all-cash deal that values the stock at $16 a share. The bid outshines an offer from AirTran Holdings (NYSE: AAI - News) of $15.75 in cash and stock. The new bid ends AirTran's two-year quest to buy the Milwaukee-based airline. Northwest Airlines (NYSE: NWA - News) is also part of the investor group, although it is a "passive investor" in the deal.
By the BullMarket.com Staff

Labels: AAI, AIG, BX, GS, MEH, NWA, SHLD

Private equity firm Blackstone Group (NYSE:BX - News) said on Monday that second-quarter net income more than tripled, boosted by merger and real estate deals, sending its units up nearly 8 percent.
Revenue also tripled, but missed Wall Street expectations in Blackstone's first earnings report as a publicly traded company.
Net income jumped to $774.4 million from $224.1 million a year earlier.
Excluding amortization, goodwill and other noncash charges, earnings rose to 46 cents a unit from 11 cents. Analysts on average had expected 40 cents, according to Reuters Estimates.
A symbol of American super-wealth amid a global mergers and acquisitions boom, Blackstone raised net proceeds of about $7.5 billion from its initial public offering in late June. But deal activity has slowed considerably since then.

Labels: Blackstone Group, BX

SAN FRANCISCO (Menafn - MarketWatch) - Among the companies whose shares are expected to see active trade in Monday's session are Blackstone Group L.P., Sysco Corp and DTE Energy.
Blackstone Group L.P. BX is expected to report second-quarter earnings of 46 cents a share, according to analysts polled by Thomson Financial.
Bob Evans Farms Inc. BOBE is seen posting a fiscal first-quarter per-share profit of 36 cents a share.
DeVry Inc.'s DV fiscal fourth-quarter results are expected to show a per-share profit of 25 cents.
Domtar Corp. UFS is expected to post a profit of 10 cents a share for its second-quarter.
DTE Energy Co. DTE is seen reporting per-share earnings of 47 cents for its second quarter.
Sysco Corp.'s SYY fiscal fourth-quarter results are expected to show a profit of 46 cents a share.
Valspar Corp. VAL is expected to report fiscal third-quarter earnings of 56 cents a share.
Watch list
Cognex Corp. CGNX said it will delay the filing of its Form 10-Q for the second quarter ended July 1 due to its internal review of previously announced irregularities it discovered in certain transactions originating at its Japanese subsidiary. Natick, Mass.-based Cognex, which makes machine vision systems, said it's unable to predict at this time when it will file is quarterly report.
Countrywide Financial Corp.'s CFC stock price fell Friday after the Calabasas, Calif.-based company said that problems in the U.S. mortgage market pose a serious threat to its earnings and financial condition. See full story.
McClatchy Co. MNI late Friday said it filed its Form 10-Q with the Securities and Exchange Commission and revised its second-quarter earnings downward to $35.2 million, or 43 cents a share, from $39.95 million, or 49 cents a share, originally reported on July 19, to include a non-cash 6-cent litigation charge. The Sacramento-based media company said the charge stems from a settlement between Seattle Times Co., of which it owns 49.5%, and Hearst Corp.'s Seattle newspaper. On a continuing operations basis, the Sacramento-based media company posted earnings of $34.5 million, or 42 cents a share.
Neoware Inc. NWRE said it swung to a fiscal fourth-quarter net loss of $801,000, or 4 cents a share, from a year-ago net profit of $401,000, or 2 cents a share. Excluding certain items, the company posted breakeven results on a per-share basis versus 9 cents a share last year. The King of Prussia, Pa-based provider of thin client computing products said revenue in the three months ended June 30 slipped to $23 million from $23.6 million last year. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of 5 cents on revenue of $23.2 million.
Published By MarketWatch

Labels: BOBE, BX, CGNX, DTE, DV, MNI, NWRE, Stocks to Watch, SYY, UFS, VAL

Safer than Houses: Intel (NasdaqGS: INTC - News), Texas Instruments (NYSE: TXN - News), Cisco Systems (NasdaqGS: CSCO - News), and Microsoft (NasdaqGS: MSFT - News), Advanced MicroDevices (NYSE: AMD - News)
Often people run from tech during a selloff, but Cramer notes tech is now the safe sector with significant upside potential, since these companies have enough cash to make huge buybacks. Cramer proclaims he is once again an "Intel-aholic" as he was in the 90s, because the stock is cheap, has loads of cash and an accelerating growth rate. Compared with AMD, Cramer says Intel is "the much stonger part of the duopoly" and has a lower price tag.
The Rant Heard Round the World
While some think Cramer's rant against the Fed last Friday was overdone, Cramer believes he was "the most responsible guy out there. He added, " The AAA-rated mortgage bonds are trading horribly or not at all. These are good pieces of paper, yet they've been marked down," Cramer said. He says has no idea why Ben Bernanke is still worried about inflation, and observed that the Europeans are concerned about the ripple effect of the US mortgage crisis. "My rant was the rant heard around the world," Cramer said, "The only one who hasn't heard it is Chairman Bernanke himself."
Mad Money Madness Index: MGIC (NYSE: MTG - News), MBIA (NYSE: MBI - News), KB Home (NYSE: KBH - News), Blackstone (NYSE: BX - News), Centex (NYSE: CTX - News), Beazer Homes (NYSE: BZH - News), Washington Mutual (NYSE: WM - News)
Cramer says those who have not sold the stock in his Mad Money Madness Index are being hoggish; "Greed is not good ... The market makes you pay for it."
CEO Interview: Dr. Eli Harari, Sandisk (NasdaqGS: SNDK - News)
Cramer thinks SNDK will rise next week if there is a day that is not "horrible," and he likes the company because flash memory is "hot," will replace disk drives and is the favorite of companies like Apple. He said Dr. Eli Harari's bullish remarks at a recent Flash Memory Summit reminds him of Cisco CEO John Chamber's fully justified optimism. Dr. Harari commented flash is everywhere, is contributing to market acceleration and is much cheaper than it used to be. "There's no question that flash memory today is the fastest-growing market within the semiconductor market," Dr. Harari said. "And I do not see it ending anytime soon."
Published by SeekingAlpha

Labels: AMD, BX, BZH, CSCO, CTX, H. SNDK, INTC, Jim Cramer, KBH, Mad Money, MBI, MSFT, MTG, TXN, WM

Cramer's Index: MGIC Investment (NYSE: MTG - News), Countrywide Financial (NYSE: CFC - News), Bear Stearns (NYSE: BSC - News), KB Home (NYSE: KBH - News), Centex (NYSE: CTX - News), MBIA (NYSE: MBI - News), Blackstone (NYSE: BX - News), Thornburg Mortgage (NYSE: TMA - News), Beazer Homes (NYSE: BZH - News), Washington Mutual (NYSE: WM - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
While Cramer says he doesn't want to be a "buzz kill," he admits it is not possible to be really bullish as long as the housing crisis persists. Cramer formed his own "index" of the above-mentioned stocks, and said when the 12 companies stablilize and the Fed cuts interest rates, it will be time to let the bulls run once again. He made a personal appeal to Fed chairman Ben Bernanke; "Cut the rates. Take the pressure off. Many, many people could be about to lose their homes, because you're not listening..."
New Age Under Armour: Lululemon Athletica (LULU)
Cramer has discovered a new Under Armour, which like its predecessor, has experienced a massive initial bounce and is expected to keep growing. Yoga apparel company, LULU came public at $18 and jumped to $31 "in one of the worst tapes I've ever seen," said Cramer. However, he doesn't think this stock is a "one trick pony" but will keep going up as UA did, because LULU has been doubling stores year over year. Since the stock is speculative and has risen, Cramer recommends waiting at least 3 days or until the price drops before buying.
Beer is Near: Boston Beer (NYSE: SAM - News)
While in the current climate, investors are dubious of even some soft goods stocks, "People drink beer no matter what." Cramer likes SAM's 13% long-term growth rate and its smart move of acquiring a brewery from Diageo for $55 million rather than building a new one, which would have cost $200 million. Although he's a self-proclaimed "Bud man" Cramer gives SAM a triple buy, even near its 52-week high.
CFO Interview: Stephen Chazen, Occidental Petroleum (NYSE: OXY - News)
Chazen discussed production increases in Argentina and Peru; "California continues to be good for us." he added. Chazen dismissed worries about political risks, noting there are always political risks, and he remarked on the stability of OXY's chemical business. "All oil stocks are trading down in unison," Cramer said, and added now is the time to buy oil.
Published By SeekingAlpha

Labels: BSC, BX, BZH, CFC, CTX, GS, Jim Cramer, KBH, LULU, Mad Money, MBI, MTG, OXY, SAM, TMA, WM

Predator and Prey: BASF (NYSE: BF - News) and Nova Chemicals (NYSE: NCX - News)
Cramer continued his series on European stocks with BASF, the biggest chemical company in the world, and a stock he likes because "...it has nothing to do with the United States. " While chemical companies have been attractive takeovers, Cramer thinks of BASF as a predator rather than the prey and doesn't expect it to get a bid. However, as long as chemical companies are in bull mode, Cramer says BASF will thrive with its secure earnings. It is also linked to two other bull markets: agriculture and natural gas and oil. He predicts BASF will rise from $136 to $150. Cramer likes NCX as a good "prey" play since Access founder Len Blavatnik is trying to build a global chemcial company and is looking for acquisitions like NCX with strong fundamentals. Cramer thinks NCX could be bought at $56.
Sell Block: Blackstone Group (NYSE: BX - News), Google (NasdaqGS: GOOG - News), Johnson Controls (NYSE: JCI - News), Washington Mutual (NYSE: WM - News), Goldman Sachs (NYSE: GS - News)
Cramer hopes people listened when he said they should get out of BX, but he suggests he may have been a hog with Google, which missed its quarter. He added a caveat; "Please don't buy the first trading day the week after I recommend a stock," he said. "You have to wait for weakness" and if the stock is high "take a pass." He identifies JCI as one of his picks for which investors should have taken a pass. However, Cramer still thinks JCI is an anointed stock with some upside. Cramer would leave the financials in Rumorville, since they have been vulnerable to Street Gossip, even WM. Concerning his golden pick, GS, Cramer says it hasn't bottomed yet and he would only recommend investors who can take the pain stay in GS.
CEO Interview: James Young Union Pacific (NYSE: UNP - News) with CSX (NYSE: CSX - News)
James Young commented on how overcapacity in the industry is getting lighter, and is responsible, along with congested traffic, for the stock's rise. Cramer said UNP is not going to stop rising at $125 and also gives CSX two thumbs up.
Published By SeekingAlpha

Labels: BF, BX, CSX, GOOG, JCI, Jim Cramer, Mad Money, NCX, UNP, WM

Avoid Private Equity: Blackstone (NYSE: BX - News)
Cramer would not buy private equity firms and suggests staying away from the Apollo and KKR IPOs. A former hedge fund manager, Cramer says he knows a thing or two about private equity. He believes the stocks are too expensive and investors would be catching these names at the end of the trend. In addition, if a Democrat wins the White House, he or she will propose taxing "the heck out" of private equity and squeezing the firms dry. Cramer added there are "too many people with too much money trying to get a piece of the action." Finally, companies are taken public at the end of a cycle, and "coming public means they're selling, not buying," Cramer said.
That 80s Show: Apache (NYSE: APA - News)
This week, Cramer has been discussing his theory that once the $80 threshold is broken, a stock becomes "annointed," rises to $100 and eventually reaches $120. He added once a stock hits $100 it will only go down again if it splits. Apache is a name Cramer believes will provide support for this theory because "people will keep buying it." Oil is one of the sectors driving the market, and Apache's advantage over other oil companies is its ability to thrive in challenging areas because of its low production costs and to improve on cheap products it purchases from its rivals. Cramer adds APA is trading at only 1o times earnings; "This stock is mispriced!" Most of APA's oil reserves are in the U.S., and the company has raised its product guidance. "I would buy APA before it gets away from you," Cramer said.
Overcoming Soros: Bon-Ton (NasdaqGS: BONT - News), CVS (NYSE: CVS - News), Rite Aid (NYSE: RAD - News), Qualcomm (NasdaqGS: QCOM - News), Texas Instruments (NYSE: TXN - News), Gen-Probe (NasdaqGS: GPRO - News)
Cramer says he doesn't want people to invest like George Soros, "I want to be better than Soros!" For instance, Soros owns BONT which Cramer thinks is alright for the long term, but "short term it really stinks." Although Cramer likes Soros pick CVS after its Caremark acquisition, he prefers RAD. He would also swap Soros' QCOM for his choice, TXN. However, Cramer agrees with Soros about buying GPRO because the stock is "instant growth" with 40% market share for blood screening tests and 58% market share for chlamydia and gonorrhea tests. The company is also making deals with industry leaders such as General Electric, 3M and Millipore.
Mad Mail: Manitowoc (NYSE: MTW - News), Costco (NasdaqGS: COST - News), Casey's (NasdaqGS: CASY - News), Rite Aid (NYSE: RAD - News), Cemex (NYSE: CX - News)
Cramer agreed with a viewer that MTW fits his $80-$100-$120 theory. Since COST is a gas station as well as a retailer, he considers it a viable alternative to CASY. Cramer added he isn't concerned about RAD after the Medicaid ruling, but would let the "good times roll." Being locked in by the housing cycle is not a bad thing for those who hold CX, he said, because the company is "growing like a weed."
Published by SeekingAlpha

Labels: APA, BONT, BX, CASY, COST, CVS, CX, GPRO, Jim Cramer, Mad Money, MTW, QCOM, RAD, TXN

Fresh off a $4.1 billion initial public offering, private-equity house Blackstone Group solidified its position as a power to reckon with on Wall Street with a multibillion dollar deal that gives the company control over a hotel empire with more than 600,000 rooms worldwide.
On Tuesday, Hilton Hotels Corp. agreed to an all-cash buyout from Blackstone in a $20.1 billion deal that would instantly make Blackstone the world's largest hotel owner.
The deal was valued at $26 billion including debt. Blackstone said it would combine cash from its real estate and corporate private equity funds to buy all outstanding Hilton shares for $47.50 each, a 32 percent premium over Tuesday's closing stock price.

Labels: BX, Hilton Hotels Corp., HLT, The Blackstone Group

Units of Blackstone Group LP (NYSE:BX - News) fell nearly 8 percent on Monday due in part to concerns about the private equity firm's lofty valuation following its highly publicized market debut last week.
Blackstone units closed down $2.62, or 7.5 percent, to $32.44 on the New York Stock Exchange. They are called units because Blackstone has taken part of its private partnership public, a difference from the standard IPO.
The units rose 13 percent in their Friday market debut to $35.06, in contrast to the wider market, which fell sharply.
Blackstone's initial public offering of 133.3 million units on Thursday priced at $31 apiece and was multiple times oversubscribed as investors eagerly lined up to get a stake in one of the world's most profitable and rapidly growing money managers.
Analysts said the excitement around the IPO, which raised $4.13 billion, the highest amount by an IPO since 2002, was starting to wear thin.

Labels: Blackstone Group LP, BX

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Walgreen (NYSE:WAG) reports earnings before the bell on Monday; look for $0.53 EPS. WAG's PowerRating is 5.
Synnex (NYSE:SNX) announces earnings after the close on Monday, with analysts watching for $0.44 EPS. SNX's PowerRating is 6.
The IPO of private equity firm Blackstone (NYSE:BX) raised $4.1 billion on Friday, which saw the company open +15% higher than its initial pricing around $31 a share. BX does not have a PowerRating due to its short trading history.
eBay (NasdaqGS:EBAY) gained around 2% on Friday, on reports that the company is set to return to the Chinese auction market this summer. EBAY's PowerRating is 5.
Major companies reporting on Tuesday include: Apollo Group (NasdaqGS:APOL), Kroger (NYSE:KR) and Lennar (NYSE:LEN). APOL's PowerRating is 5, KR's PowerRating is 6 and LEN's PowerRating is 6.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: APOL, BX, Ebay, Hot Stocks, KR, LEN, SNX, WAG