Jim Cramer Blog

A Deutsche Bank AG analysis of options trading activity in both Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) - among others - suggests that traders are pricing in significant dividend cuts across the board in the financial services industry. The Short Term PowerRating for GS is 5 and the Short Term PowerRating for C is 6.
Nvidia (NasdaqGS:NVDA), one of the biggest makers of computer graphics chips, was downgraded today from "neutral" to "sell" by FTN Midwest, citing growing inventories and competition. The Short Term PowerRating for NVDA is 5.
The death watch for Lehman Brothers (NYSE:LEH) continues, with Wachovia Corp and Credit Suisse downgrading the stock due to Lehman's larger than expected losses. The Short Term PowerRating for LEH is 6.
National City Corp (NYSE:NCC), the largest bank in Ohio, admitted to having a "Memorandum of Understanding" with the Federal Reserve Bank of Cleveland with regard to questions over asset quality, liquidity and risk management. The Short Term PowerRating for NCC is 8.
The less than optimistic forecast provided by Texas Instruments (NYSE:TXN) during its mid-quarter outlook led traders to sell the stock on Tuesday. The Short Term PowerRating for TXN is 5.
Anticipated revenue growth from operations overseas led Deutsche Bank AG to upgrade Coca Cola (NYSE:KO) from "hold" to "buy." The Short Term PowerRating for KO is 4.

Labels: C, GS, Hot Stocks, KO, LEH, NCC, NVDA, TXN

Buy Ralph Lauren (RL), Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"I like it because of the J.C. Penney (JCP) tie-in," Cramer said. He said today's move "seems like a bit of a short squeeze," he said, but "I think it can go higher from here."
Elsewhere in apparel, Cramer said that VF Corp. (VFC) "is the analogue of Ralph Lauren. ... If Ralph Lauren's good you don't leave this stock."
Cramer went on to praise management at Eaton (ETN). He said the company is "part of my new-tech world," and predicted it would hit a 52-week high. He said he also likes Emerson (EMR). "These companies are on fire," he said.
Of Nucor (NUE), Cramer said the company's secondary offering is an entry point. He advised more caution on Cleveland-Cliffs (CLF). "Let it cool off before you buy it here," he said.
Cramer was less bullish on AIG (AIG) and Wachovia (WB). "These are serial needers of capital," he said. He said firing AIG CEO Marty Sullivan would cause the stock to go up, and chastised Wachovia for its acquisition of Golden West. "This was one of the dumbest acquisitions ever and they're paying for it," he said.
"If they knew what they owned I would be more comfortable," Cramer said of AIG and Wachovia. "They're like Citigroup (C)." He said that when the companies claim to know what they have, "they're being wishful."
Published By TheStreet.com

Labels: AIG, C, CLF, EMR, ETN, JCP, Jim Cramer, NUE, RL, Stop Trading, VFC, WB

Buy Deere (DE), Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.
Cramer pointed to the stock's continued rise as evidence that he's right. "You know why?" he said, "Because the fundamentals trump the analysts." He praised CEO Robert Lane for "making great inroads" with the company. Of sector rival Agco (AG), Cramer said, "I gotta tell you. I think Deere is coming for them. ... I like Deere and I like DuPont (DD)."
Cramer said he liked the stock market's performance today, "given the fact that consumer confidence's been bad." He said he's worried about big gains in Research In Motion (RIMM), a company he recommended on Monday's "Stop Trading!" segment.
"I still like Apple (AAPL), but I don't have a strong thesis on Apple other than I believe in the iPhone," Cramer said.
In the investment management space, Cramer was bearish on Fortress Investment Group (FIG) "I have Wes Edens in my hall of shame," Cramer said. "Everything they've touched has turned to stone. This is a castle in the sand."
Cramer also said he disapproved of Citigroup (C) CEO Vikram Pandit. "What's Pandit doing?" he asked. "Sometimes you've got to take bold action. ... The last four acquisitions that Chuckie Prince did, I would just unwind them."
Published By TheStreet.com

Labels: AAPL, AG, C, DD, DE, FIG, Jim Cramer, RIMM, Stop Trading

The Vs and the Dopeys; IndyMac, Washington Mutual (WM), Citigroup (C)
Cramer says the current optimism in the market is due to two groups, the Vs who believe in a quick and complete recovery and the Dopeys who feel that nothing is wrong in the first place. The convergence of these two groups is bringing the stocks up, said Cramer. However, Cramer does not identify with these camps; 'I need to see that all numbers are weak' since the fed is really dense and unsophisticated and will not make more cuts unless it is obvious there is a recession. The Fed is very reactive said Cramer and will use the bullish January retail sales as ammunition to do nothing. The purpose of cuts is not to bail out the economy, but to help IndyMac, Washington Mutual and Citigroup stay afloat, he added. The issue is not fundamentals, said Cramer, but credit risk and a bunch of institutions that are overextended.

Labels: C, Jim Cramer, Wall Street Confidential, WM

Citigroup (C) dropped the ball on today's earnings report, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday
I got this wrong," he said. "I expected bold action ... I didn't get bold action." Cramer was expecting CEO Vikram Pandit to take more writedowns this quarter to demonstrate that the bank was righting itself. "If you took all that capital ... I don't know why didn't you take out more of the bad."
Cramer added that saving triple-A rated bonds was a fool's errand. "Every other bit of triple-A ... is backed up by agency paper that you cannot afford. ... If you hide behind triple-A, it better be the American Automobile."
Pandit's management actions were not forceful enough either, Cramer believes. "I want to see [Japanese brokerage and Citi acquisition] Nikko Cordial out ... I want to hear a repudiation of previous management. ... It's time for [board member] Bob [Rubin] to move on."
The action by Citigroup was not decisive enough. "There was a chance the stock could've been up today. ... The stock could've been up if [Pandit] went clean clean clean," Cramer said. "I just wanted bold statements. I'm not asking for Jack Bauer."
Cramer recommended trading out of Citi common stock and buying convertible preferred shares. "I would love to be able to swap this," he said.
Cramer concluded the segment by issuing caution about a pick he'd been plugging for a long time: "Agriculture went parabolic yesterday. ... When stocks go parabolic, meaning they went up $8 like Mosaic (MOS) ... If you don't take something off the table, you're going to get hurt."
The entire agriculture sector is too hot lately, Cramer added, saying to watch out for stocks such as Archer Daniels Midland (ADM) and Deere (DE).
Published By TheStreet.com

Labels: ADM, C, DE, Jim Cramer, MOS, Stop Trading

Citigroup Inc. lost almost $10 billion in last year's final three months, the largest quarterly deficit in the bank's 196-year history, and slashed its dividend as it recorded a mammoth write-down for bad bets on the mortgage industry.
The nation's largest bank wrote down the value of its portfolio by $18.1 billion. It also boosted loan-loss reserves by $4.1 billion, signaling further problems in its consumer businesses as deflated home prices, high energy and food costs, and rising unemployment weigh on people's ability to make their loan payments.
To cut expenses, it slashed 4,200 jobs in the fourth quarter in addition to the 17,000 layoffs announced in the spring, and chief financial officer Gary Crittenden said during a conference call that more job cuts would be on the way.

Labels: C, Citigroup Inc.

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Genentech (NYSE:DNA - News) beat earnings estimates on Monday afternoon, reporting $0.69 EPS over a consensus of $0.67 EPS. DNA's PowerRating (for Traders) is 3.
Charles Schwab (NasdaqGS:SCHW - News) reports earnings on Tuesday before the market opens, with traders looking for $0.26 EPS. SCHW's PowerRating (for Traders) is 6.
Analysts expect Citigroup (NYSE:C - News) to report -$1.00 EPS on Tuesday before the bell. C's PowerRating (for Traders) is 3.
State Street (NYSE:STT - News) announces quarterly results on Tuesday morning; look for $1.31 EPS. STT's PowerRating (for Traders) is 5.
US Bancorp (NYSE:USB - News) is looking to report $0.59 EPS on Tuesday before the market opens. USB's PowerRating (for Traders) is 4.
After the close, watch for Intel (NasdaqGS:INTC - News) to announce $0.40 EPS in quarterly results. INTC's PowerRating (for Traders) is 4.
Linear Tech (NasdaqGS:LLTC - News) should report $0.41 EPS on Tuesday afternoon. LLTC's PowerRating (for Traders) is 5.

Labels: C, DNA, Hot Stocks, INTC, LLTC, SCHW, STT, USB

Stay away from the financials, Jim Cramer said on CNBC's "Stop Trading""segment Thursday.
"I think it's just too dangerous to recommend a lot of financial stocks. ... Some of these don't have a bottom," Cramer said. When he was working for his hedge fund in the 1990s, another grim time for banks, "a lot of money was made shorting financials."
Regarding the Fed's creation of a term auction facility yesterday, Cramer said, "I can't stop looking at the stocks. The stocks are not lying." Cramer believes that if the Fed's plan were working, financial stocks would be rising.
People who believe the Fed plan may be sufficient aren't seeing the broader picture, Cramer believes. "The guys who are focused on Libor and three-month rates ... they're just falling for the same logic that the Fed is. ... I love them for their specificity," but Cramer believes that the Fed hasn't done enough.
Cramer also responded to worries that Citigroup (C) will have to cut the dividend, saying "the stock is reflecting a dividend cut," but the bank is not out of the woods just yet. "A year ago, we could've fixed Citigroup without cutting the dividend, but they just kept buying and buying and buying."
Published By TheStreet.com

Labels: C, Citigroup Inc., CNBC's Stop Trading, Jim Cramer

Citigroup Inc. has sold off 20 percent of the assets in its structured investment vehicles in the last two months, the bank said Friday.
Assets in the SIVs declined to $66 billion as of Nov. 30 from $83 billion as of Sept. 30, Citigroup confirmed after a report from Moody's Investors Services detailed the falling asset values of several SIVs.
SIVs are complex funds selling short-term debt, like unsecured commercial paper, to investors such as hedge funds. The SIVs then use the proceeds to buy longer-term assets, like mortgage-backed securities, that yield higher returns.
The vehicles normally generate money through fees and the difference between short-term and long-term rates. But demand for short-term assets has dried up due to plummeting home prices, and that has led to liquidity problems for SIVs.

Labels: C, Citigroup Inc.

The ouster of Zoe Cruz, one of Wall Street's most powerful female executives, as Morgan Stanley's (NYSE:MS - News) co-president after a $3.7 billion mortgage loss has raised questions about how big the ultimate write-down will be - and how much investors will notice.
Cruz's unexpected departure on Thursday, after a quarter century at Morgan Stanley, eliminated perhaps the leading candidate to succeed John Mack as chief executive.
The 52-year-old Cruz joined a conga line of banking executives to lose their jobs after more than $50 billion of mortgage losses industry wide. These include the chief executives of Merrill Lynch & Co (NYSE:MER - News) and Citigroup Inc (NYSE:C - News), Stanley O'Neal and Charles Prince.
Cruz oversaw a business that in September and October generated the $3.7 billion pretax loss, reducing overall net income by $2.5 billion. Many analysts have said losses may have grown in November.

Labels: C, Citigroup Inc., MER, Merrill Lynch and Co. Inc., Morgan Stanley, MS, Stanley O'Neal, Zoe Cruz

Eddie Lampert and Sears (SHLD), Citigroup (C): Cramer defended Sears CEO Eddie Lampert, in spite of the retailer's bad quarter. Lampert also has a significant stake in Citigroup, which also performed poorly. "I am not a schadenfreude guy," Cramer said adding that he support Lampert and Sears through this tough patch. Sears' "performance has hit several bumps in the road. ... I'm not abandoning [Sears] , the guy is too darn good," remarked Cramer. He points to Lampert's gigantic gain in K-Mart after having purchased the company for nothing. Sears should be viewed as an 18 month stock, although its performance the last six months has been terrible. Concerning Citigroup, Cramer commented, "I bet Eddie Lampert thought the same way I did.
Published By SeekingAlpha

Labels: C, Jim Cramer, SHLD, Stop Trading

Stocks surged higher in trading, as an infusion of cash into Citigroup (NYSE: C - News) helped ease Wall Street fears concerning the financial sector. For the day, the Dow gained 215 points to end at 12,958. Meanwhile, the Nasdaq rose 1.6% to finish at 2,581, and the S&P ended 1.5% higher to close at 1,428. Light, sweet crude prices fell -$3.28 to settle at $94.22 for January delivery. Treasury and gold prices both tumbled on the day, while the dollar inched higher against the euro but fell versus the yen.
In economic news, a reading of the November Consumer Confidence report came in weaker than predicted, as confidence fell to 87.3 in the month, down from 95.6 in October. Analysts were looking for a reading of 91.5. The report marks a four-month slide in consumer confidence, and was the lowest reading since October 2005.
On the earnings front, Staples (Nasdaq: SPLS - News) reported a third-quarter profit dip, but still posted earnings above Wall Street expectations. For the quarter, the company reported net income of $274.5 million, or 38 cents per share, versus net income of $289.9 million, or 39 cents per share, last year. Excluding a settlement charge, Staples would have posted a profit of 42 cents per share. Quarterly revenue rose to $5.17 billion, up 9% from $4.76 billion a year earlier. On average, analysts were looking for earnings of 40 cents per share on revenue of $5.19 billion. Staples' stock was up 10.6% at the bell.
Retailer American Eagle Outfitters (NYSE: AEO - News) posted a dip in third-quarter profit as net income fell to $99.4 million, or 45 cents per share, from $100.9 million, or 44 cents per share, last year. EPS was higher due to a lower share count. Revenue for the quarter climbed to $744.4 million, up 7% from 696.3 million a year earlier. Earnings per share were in line with expectations although analysts, on average, were expecting revenue of $750.1 million. Shares of American Eagle were down -0.7% in trading.
In corporate news, Citigroup announced that the Abu Dhabi Investment Authority will invest $7.5 billion in the bank in order to obtain a stake not to exceed 4.9%. The cash infusion calls for the Investment Authority to receive equity units that pay an 11% annual yield and can be converted into common shares between March 15th, 2010 and September 15th, 2011 at a price up to $37.24 per share. Citigroup's stock was up 1.7% on the day. Subscribers can read our take on Citigroup in today's edition.
Shares of Activision (Nasdaq: ATVI - News) surged 13.8% after the video-game maker upped its third-quarter and fiscal-year guidance. For the quarter, Activision expects to earn 66 cents per share on revenue of $1.23 billion, up from previous estimates of 51 cents per share on revenue of $1.05 billion. Excluding items, the company is expecting a profit of 70 cents per share, up from 55 cents per share. On average, analysts were calling for earnings of 56 cents per share on sales of $1.04 billion. Subscribers can read our take on Activision in today's edition.
In M&A news, health insurer Cigna (NYSE: CI - News) announced that it will acquire the healthcare unit of Great-West Life in a cash deal worth approximately $1.5 billion. The takeover is expected to increase Cigna's expansion efforts in the Western United States. Analysts said the deal further signals consolidation within the healthcare sector. Shares of Cigna were up 2.3% in trading.
By the BullMarket.com Staff

Labels: Abu Dhabi, AEO, ATVI, C, CI, SPLS

All three major indices ended significantly lower for the day, as a Citigroup (NYSE: C - News) downgrade fueled financial sector concerns and Lowe's (NYSE: LOW - News) disappointed investors with its outlook. The Dow was off -218 points at the bell to close at 12,958. Meanwhile, the Nasdaq and S&P each lost more than -1.5% to end at 2,593 and 1,433, respectively. Oil traded higher on the day to close at $94.64 per barrel for December delivery. Treasury prices rose, while the price of gold fell to close at $778 an ounce. The dollar traded flat against the euro, and declined versus the yen.
On the earnings front, shares of Lowe's plunged -7.6% on the day after the company reported that profits fell -10% in the third quarter. For the period, net income was $643 million, or 43 cents per share, down from $716 million, or 46 cents per share, last year. Quarterly revenue rose to $11.6 billion, up 3% from $11.2 billion a year earlier. On average, analysts were expecting earnings of 41 cents per share on revenue of $11.78 billion. Looking forward, Lowe's adjusted its fiscal-year earnings forecast lower to a range of $1.83-$1.87 a share, down from previous guidance of $1.97-$2.01 per share given in September.
Campbell Soup (NYSE: CPB - News) reported first-quarter earnings today of $270 million, or 70 cents per share, down from $291 million, or 72 cents per share, a year ago. Excluding last year's results from operations that have since been jettisoned, profit was up $1 million from $269 million reported a year earlier. Revenue for the quarter was $2.3 billion, up 6.7% from $2.15 billion in 2006. Analysts, on average, were looking for earnings of 71 cents per share. Shares of Campbell's were off -0.9% in trading for the day.
In other corporate news, shares of Citigroup tumbled -5.9% after a Goldman Sachs analyst downgraded the stock and predicted the company could write down an additional $15 billion over the next two quarters. The Goldman analyst also predicted that the nation's largest bank may be forced to cut its dividend in order to save money. Subscribers can read our take on Citigroup in today's edition.
Elsewhere, Xerox (NYSE: XRX - News) announced today that the company will pay its first quarterly cash dividend in nearly six years. According to the release, the company will pay a dividend of 4.25 cents per share on January 31st to shareholders of record on December 31st. Xerox also predicted the company will see double-digit earnings growth over the next few years. Shares of Xerox were up 1.6% for the session.
In M&A news, Celgene (Nasdaq: CELG - News) announced that it will acquire drug developer Pharmion (Nasdaq: PHRM - News) in a cash and stock deal worth approximately $2.9 billion. According to terms released, Celgene will pay $72 per share for Pharmion stock, including $25 per share in cash. The deal represents a 46% premium over Pharmion's closing price on Friday. After the deal closes, Pharmion shareholders will hold approximately 6% of Celgene's outstanding shares. Pharmion's stock surged on the news to close up 32.1% on the day, while shares of Celgene were down -1.4% at the bell.
By the BullMarket.com Staff

Labels: C, CELG, CPB, LOW, PHRM, XRX

NCR (NCR) and Eastman Kodak (EK) are two stocks with a great deal of potential upside and a cushion to the downside. NCR, is a leading manufacturer and designer of ATMs and scanners. Because of its recent anonymity, NCR is a great play on the rise of the middle class in the former U.S.S.R. and the Third World. Cramer says NCR has a huge buyback coming. NCR is sporting 17% growth in ATM sales, with Europe having only 500 ATMs per million people and even fewer in China. A sleeper stock that deserves more attention. Eastman Kodak might not seem like a good buy being a couple points above a 52-week low. Cramer has been betting against Kodak since he started his hedge fund, but he believes the company is about to turn around. After years of losses, its balance sheet is healthy now, sporting $6 of net cash per share. With $82 million in digital income, Kodak is ready to come back alive.CEO Wall of ShameCramer finally removed Citigroup (C) CEO Chuck Prince from his Wall of Shame. He replaced Prince with Kerry Killinger, CEO of Washington Mutual (WM). WaMu’s Kerry Killinger rocketed past Motorola (MOT) CEO Ed Zander and Alcatel Lucent's (ALU) Pat Russo to the top position. Cramer said Killinger has done such a poor job running Washington Mutual that the Fed will cut rates to bail the bank out. Compared to total loans, Washington Mutual’s allowance for losses is far too low.
Mad Mail
The first writer asked Cramer how he intends to play the environment during NBC Universal’s Green Week? Cramer said all week he will work on individual ideas about how to play green, focusing on companies that make power cheaper but are still profitable. The second mailer questioned Cramer’s Apache call in the mid-$70s. Cramer said that his earlier statement; that the company would not go through $80, turned out to be wrong. He said he wished he’d given the stock more leeway, but he made the wrong call. He apologized for his mistake. The third viewer mentioned that Diana Shipping (DSX)
CEO Simeon Palios, whom Cramer had interviewed on the show last week, may have had trouble articulating his company’s story in proper English. The viewer wondered if Cramer had made any follow-up on the call. Cramer felt Palios indicated that the bull story wasn’t there and that he was negative.

Labels: ALU, C, EK, Jim Cramer, Mad MOney Recap, MOT, NCR, WM

It was a roller-coaster ride for stocks to end the trading week, as Wall Street weighed a solid jobs report with soaring oil prices and a troubled financial sector that continues to battle credit concerns. The Dow bounced off its lows to close higher for the day finishing at 13,595. Meanwhile, the Nasdaq and S&P each rebounded from earlier lows to close at 2,810 and 1,510, respectively. Oil prices rose on the session to close the week at $95.58 a barrel for December delivery. Treasury prices and gold both gained in trading, with gold ending at $808.50 on the day. The dollar fell against the euro, but rose against the yen.
On the economic front, a report from the U.S. labor department showed that employers increased payrolls by a surprisingly strong 166,000 jobs in October, the biggest jump in five months, and nearly double what analysts were expecting. The improved labor report did little to boost Wall Street confidence, however, as investors continued to struggle with rising commodity costs, a weak financial sector, and news that the Fed may pause its rate cutting trend on inflation concerns.
In earnings news, Chevron (NYSE: CVX - News) reported a drop in third-quarter profit as tighter U.S. refining margins took a toll. The nation's second-largest oil company said net income fell in the quarter to $3.72 billion, or $1.75 per share, versus $5.02 billion, or $2.29 per share, last year. Quarterly revenue also declined to $55.17 billion from $54.21 billion a year ago. On average, analysts were expecting earnings of $2.07 per share on revenue of $58.29 billion. Chevron's stock was down -0.6% in trading.
Health insurer Cigna (NYSE: CI - News) said third-quarter net income increased to $365 million, or $1.28 per share, up 22% from $298 million, or 92 cents per share, a year ago. Adjusted income excluding special items was $323 million, or $1.14 per share, versus $268 million, or 83 cents per share, last year. Total revenue in the quarter was $4.41 billion, up from $4.14 billion in the 2006 period. Analysts were looking for EPS of 94 cents on revenue of $4.41 billion. Shares of Cigna were down -3.5% for the day, however, as the company predicted full-year 2008 earnings per share of $4.00-$4.20, missing analyst expectations of $4.23 per share.
NYSE Euronext (NYSE: NYX - News) reported a 279% increase in profit for the third quarter. The company announced Q3 net income of $258 million, or 97 cents per share, up from $68 million, or 43 cents per share, last year. Excluding one-time costs, the company said it earned $202 million, or 76 cents per share. Revenue in the quarter jumped to $1.2 billion from $602 million in the prior year. Analysts had predicted a profit of 73 cents per share on revenue of $823.5 million. The stock fell -0.5% on the day.
In other corporate news, several media sources reported that Citigroup's (NYSE: C - News) board of directors has called an emergency meeting for this weekend. Although the meeting's agenda was not immediately clear, it is widely speculated that the topic of future write-downs may be discussed as well as the future of CEO Chuck Prince.
By the BullMarket.com Staff

Labels: C, CI, CVX, NYX

Buy Diana Shipping (DSX), Jim Cramer said Wednesday on CNBC's Stop Trading! segment.
Cramer said the stock, up 9% off Tuesday's 12% plunge, remains a buy because of enormous demand in China.
Cramer also likes Under Armour (UA), off 3% on worries of rising inventory. "Yes, I would buy it," Cramer said.
Cramer also said Merrill Lynch (MER) "was a comedy that became a farce" just ahead of yesterday's cashiering of CEO Stan O'Neal, whereas Citi (C) -- which still employs embattled chief Chuck Prince -- remains for now a mere comedy.
Published By TheStreet.com

Labels: C, CNBC's Stop Trading, DSX, Jim Cramer, MER, UA

After the Dow hit an all-time high yesterday, stocks were mixed on the session today. Wall Street cooled off some, with only the Nasdaq holding on to a modest gain among the three major indices. The dollar rebounded against the euro and gained versus the yen, which helped send commodity prices lower including a dip in oil and gold prices. Investors moved cautiously as they weighed the latest reading from the housing sector and sales from the nation's automakers.
In economic news, The National Association of Realtors' pending home sales index fell to a record low of 85.5 from an upwardly revised 91.4 reading in July. The drop was worse than expected by economists, who had predicted a -2% dip from the previous reading. The steep decline breaks the previous low of 89.8, which was set in September 2001, following the terrorist attacks that knocked consumer confidence. The trade group started the index in 2001.
Overall U.S. auto sales were soft in September on mixed reports from General Motors (NYSE: GM - News), which saw its overall sales of cars and light trucks edge up 0.3% in September, and Ford (NYSE: F - News), which saw sales plummet more than -20% for the same month.
On the earnings front, investors are growing increasingly impatient with smartphone pioneer Palm (Nasdaq: PALM - News) following the company's lackluster earnings release delivered after the market close yesterday. Palm announced that it had lost -$841,000, or -1 cent per share, in the first quarter on revenue that increased to $360.8 million. Palm's outlook didn't do much to raise investor confidence as the company is expecting a current quarter loss of -1 cent to -3 cents per share on revenue between $370 million and $380 million. On an adjusted basis, it expects a profit of 6-8 cents per share versus analyst estimates of 11 cents per share on sales of $413.5 million. Shares slumped -3.4%.
Shares of Pepsi Bottling Group (NYSE: PBG - News) reached an all-time high today after the largest bottler for PepsiCo (NYSE: PEP - News) reported a better-than-expected quarterly profit on Tuesday. The company said net income for the third quarter, which ended September 8th, rose 26% to $260 million, or $1.12 per share, from $207 million, or 86 cents per share, a year ago. The company also raised its full-year outlook. The stock rose 2.1%.
The M&A world saw Canada's TD Bank Financial Group (NYSE: TD - News) double its U.S. presence today when it acquired Mid-Atlantic regional bank Commerce Bancorp (NYSE: CBH - News) for $8.5 billion in cash and stock. As a result of the takeover, TD Bank will add nearly 460 branches along the East Coast when the deal closes in the spring of 2008, pending regulatory approval. Terms call for a 75% stock and 25% cash transaction that values Commerce at $42 per share, a 6% premium over the stock's closing price of $39.61 on Monday. Details have Commerce shareholders receiving 0.4142 shares of TD Bank common stock and $10.50 in cash for each share of Commerce owned.
Citigroup (NYSE: C - News) continued to reach into the world's second-largest economy by announcing earlier today that it would complete its acquisition of Japanese brokerage firm Nikko by paying $4.6 billion to buy out the remaining minority shareholders.
By the BullMarket.com Staff

Labels: C, CBH, F, Ford Motor co., General Motors Corp., GM, PALM, Palm Inc., PBG, PEP, Pepsico Inc., TD

The Dow Jones Industrial hit new highs on Monday as the market shook off a warning from Citigroup (C), which reported a 60% drop in earnings for the current quarter. The S&P 500 is within 9 points of a record and the NASDAQ hit a 6 year high. Finerman: surprised with the market strength on Monday. Najarian suggested that these are investors who sat on the sidelines during the summer. They are now putting money back into the markets in sectors like technology, commodities and financials. Gasparino: the worst is over for the financials.
Wireless
Nokia (NOK) bought NAVTEQ (NVT) for $8 billion. Najarian: this takeover suggests to him that M&A is not done. Research In Motion (RIMM) is set to report earnings on Thursday. Adami: if you're not already in Research In Motion don't buy it now. Palm (PALM) reported earnings after the bell Monday and traded lower after-hours. Najarian likes the new Centro smart phone that Palm is introducing and thinks the future is bright for PALM. Finerman: the valuation on NAVTEQ is over done and thinks the deal makes Garmin (GRMN) over valued and recommends buying puts on the GPS maker. Macke agrees with Finerman that Garmin is topped.
Global
Big runs in ETF names like Materials EFT (XLB), Tech ETF (XLK) and Energy ETF (XLF). Adami: companies like Fluor Corp (FLR) are up 87% in 9 months, McDermott (MDR) up 120% since January and Jacobs Engineering (JEC) is up 100% since January. He suspects these stocks are due for a pullback and taking profits in these names isn't a bad idea. Macke: Investors have to chase these stocks. Finerman prefers Flowserve (FLS).
Micron (MU): set to report earnings on Tuesday. Najarian: last week someone bought 27,000 call options on Micron, so keep an eye on it. He also wants investors to put ScanDisk (SNDK) on their watch list after the firm just opened up a plant in China. Adami: Micron is a buy.
Conferences
Investment conferences at Deutsche Bank, Jefferies and William Blair will catch investor's attention this week. Najarian: stocks to watch off these conferences are OSI Systems (OSIS), Cepheid (CPHD) and Manitowoc (MTW).
Earnings Warnings
Macke devised a three point checklist to watch as a warning sign from a firm's earnings reports. Any company that points the finger outside of things they can't control, doesn't have a solution, or has a warning that is 10% below estimates should be avoided. Walgreen's (WAG) gave all three of these today and that's why the stock fell apart. Macke: Don’t buy the dip on Walgreen's.
Pops & Drops
Pops- Time Warner (TWX) traded up 2%. Adami could see the stock moving from $18 to $28, if the CEO is ousted.
BorgWarner (BWA): popped 4% off a bullish Barron's article. Adami: still likes BWA.
Electronic Arts (ERTS): popped 4%. Macke: entire video game sector is going higher into the holidays.
AMR Corp (AMR): traded up 12% off a positive Barron's article. Adami says sell.
First Solar (FSLR): traded up 8%. Najarian continues to point investors to Cypress Semiconductor (CY) as the safest play in the solar space.
Drops- SuperValu (SVU): fell 6% after Bank of America downgraded the stock to a sell. Macke likes SVU right here and right now.
Acxiom (ACXM): plunged 20% after a $2.25 billion takeover offer fell through. Finerman wonders if something could be wrong at the company.
Final Trade
Macke advises buying Caterpillar (CAT).
Adami prefers Tesoro (TSO).
Finerman recommends YUM! Brands (YUM).
Najarian would go long Terra Industries (TRA).

Labels: C, CNBC, Fast Money, Fast Money Recap, GRMN, MDR, NOK, NVT, PALM, RIMM, SNDK, XLB, XLK

Bullish:

Excel Maritime (EXM): bullish on all dry bulk shipping companies.
Companhia Vale do Rio Doce (RIO): Cramer thinks this stock should go higher
Range Resources (RRC): Cramer likes this stock along with the other cheap oil companies
Quicksilver Resources (KWK)
Rosetta Resources (ROSE)
XTO Energy (XTO): his favorite in the sector
Celgene (CELG): one of the best picks he has ever made.

Bearish:

Navteq (NVT): Cramer thinks it's time to ring the register
Garmin (GRMN)
Urban Outfitters (URBN): Cramer's not a fan.
Western Union (WU): This stock doesn't have enough upside.
Nastech (NSTK): Wouldn't recommend buying it until it goes back to $12.
Citigroup (C): Undervalued, but he's not a fan of CEO Chuck Prince.
Sears (SHLD): Cramer isn't urging people to buy

Labels: C, CELG, EXM, GRMN, Jim Cramer, KWK, Lightning Round, Mad Money, NSTK, NVT, RIO, ROSE, RRC, SHLD, URBN, WU, XTO

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