Jim Cramer Blog

Six More Dow Stocks: International Business Machines (NYSE: IBM - News), Johnson & Johnson (NYSE: JNJ - News), J.P Morgan Chase (NYSE: JPM - News), McDonald's (NYSE: MCD - News), Merck Co. (NYSE: MRK - News), Microsoft (NasdaqGS: MSFT - News)
Cramer continued his series on Dow Stocks by admitting his target of $110 for IBM was too conservative, and given the company's great dividend and buyback, it should reach $114, but no higher. JNJ is a sell in spite of Warren Buffet's buying the stock. Cramer thinks it is staying at $63, and opines that maybe Warren Buffet liked the steady nature of the band-aid business, but adds "With so many other great names in the Dow, why back up the truck for band-aids?" Cramer called JPM's CEO Jamie Dimond a "great banker," but thinks he is going to be prevented from bringing out the best in JPM by the Fed; "Three more points for JPM, and then I'd declare victory." While MCD has a great international business, Cramer thinks it will peak 4 points from now at $55. Cramer says he was too conservative predicting MRK would go to $50, but at $53, he says the stock is "pretty much done for the year." On the other hand, he admits he was too bullish on MSFT, but is not changing his $35 target, since the company may underpromise and overdeliver.
Google (NasdaqGS: GOOG - News) and Amazon (NasdaqGS: AMZN - News)
Google has been stalled for a while, but Amazon has brought "in the jumper cables," says Cramer. AMZN's move from $39 to $69 makes GOOG look cheap in comparison, especially since Google has 63% sales growth and almost no competition while AMZN has 33% growth with competition from almost every retailer in America. Cramer sets the target for Google at $600, but admits he is being conservative.
Sell Block: CA Inc. (NYSE: CA - News), Analog Devices (NYSE: ADI - News)
Cramer declared a special "Crime and Punishment" edition of this week's Sell Block, inspired by the crime of his "hubris" (overweening pride) last week when he broke his own rule about avoiding tech until August. He now regrets having recommended CA which is down 7.4% since last Friday and ADI which he "missed by a mile."
Mad Mail: MEMC Electronic Materials (NYSE: WFR - News), Taser International Inc. (NasdaqGS: TASR - News), Rowan Companies Inc (NYSE: RDC - News), National Oilwell Varco (NYSE: NOV - News)
When a viewer asked how to play the shortage of polysilicon in Chinese Solar IPOs, Cramer said WFR is the obvious choice, but it missed the quarter and at $58, it's a "no-go." Cramer told another viewer to hold on to Taser, which he recommended ahead of the French election, for at least a few more points. Cramer says RDC has "too much actual drill for me" and says NOV is still "best in show."

Published by SeekingAlpha

Labels: ADI, AMZN, CA, GOOG, IBM, Jim Cramer, JNJ, JPM, Mad Money, MCD, MRK, MSFT, NOV, RDC, TASR, WFR

Isdell Adds Life to Coke (NYSE: KO - News)
Continuing his series on "transformational CEOs," Cramer discussed Neville Isdell who transformed the "has been" company into one that is looking beyond carbonated beverages to new growth opportunities. Under previous management, Coke missed the opportunity to buy Quaker Oats and Gatorade, which was purchased by its nemesis, Pepsi. After losing significant ground, Coke is back, and its last quarter was " a wonder to behold," said Cramer. The company is expanding internationally and Cramer calls Coke Zero a "success story." He thinks this is just the beginning of Coke's comeback.
Related: David Neubert thinks Neville Isdell is overpaid.
Next Week's Game Plan: Game Stop (NYSE: GME - News), Analog Devices (NYSE: ADI - News), Target (NYSE: TGT - News), CA (NYSE: CA - News), Dick's Sporting Goods (NYSE: DKS - News), Under Armour (NYSE: UA - News), Nike (NYSE: NKE - News)
Cramer would buy GME ahead of its Wednesday report, but only if it is down on Monday or Tuesday, and he also suggests buying ADI before its Tuesday report. He would pick up TGT and CA before they report earnings on Wednesday and would buy more TGT after Wednesday. Cramer would invest in UA and NKE before DKS reports on Wednesday.
Risky Delphi (Other OTC: DPHIQ.PK - News)
Although Delphi is bankrupt, trades on pink sheets and is around only $2 a share, three qualities he avoids in any stock, Cramer thinks "this company might have something big going on." First, Cerberus Capital Management and Appaloosa Management are offering Delphi a deal that would help get the company out of bankruptcy and may bring the stock up double. While Highland Capital Management values Delphi even higher, Cramer thinks the first deal is more likely to materialize. The stock is too risky for Cramer, who sees a two down, five up scenario; "but the two down could come first." However, he thinks Delphi may have an interesting story for the risk-takers.
Published By SeekingAlpha

Labels: ADI, CA, DKS, Jim Cramer, KO, Mad Money, NKE, TGT, UA

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.

Joy Global (NasdaqGS:JOYG - News). JOYG's PowerRating is 7.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Fronteer Development Group (NYSE:FRG - News). FRG's PowerRating is 7.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Bear Stearns (NYSE:BSC - News). BSC's PowerRating is 7.
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.
CA Incorporated (NYSE:CA - News). CA's PowerRating is 8.
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.
Duke Realty (NYSE:DRE - News). DRE's PowerRating 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.
Watson Pharmaceuticals (NYSE:WPI - News). WPI's PowerRating is 8.
Bearish
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
GMH Communities (NYSE:GCT - News). GCT's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: BSC, CA, DRE, FRG, GCT, Hot Stocks, JOYG, WPI

Bullish calls:
Colgate-Palmolive (NYSE: CL - News): ' You know, that is a truly great American company. It was a fabulous number ... CL is on a tear, plus their big in Latin America. They have a big business overseas ... Holy cow. It's time to back up the truck. Cleanest quarter in the whole group, with the exception perhaps with CLX.'Clorox (NYSE: CLX - News)NYSE Group (NYSE: NYX - News): 'Goldman Sachs reiterated today, saying they like the quarter. I think the merger with EuroNext is going to produce gigantic numbers. A lot of people are impatient. It's been a great recommendation since the mid-60s and I am sticking by it ... This is a big stock for 2007.'Respironics (NasdaqGS: RESP): 'I believe very strongly that RESP's sleep apnea franchise is a strong one. It's down 2 bucks from its high. And I say, bring me some RESP - buy, buy, buy! Bring it to me!'Wyeth (NYSE: WYE - News): ' ... that's become one of my favorite ones.'Comcast (NasdaqGS: CMCSA): 'I have heard many different worries about CMCSA ... I am banking with Brian Roberts, the CEO. I think that they're spending more money to get a lot more revenues... I feel that they are doing all the right things. There are very few capitalization companies that have growth - that they can even put money behind. CMCSA is one of them ... That stock should be bought, and it should be bought nine ways to Sunday. Buy, buy, buy!'CA (NYSE: CA - News): 'They just reported an upside surprise.'World Wrestling Entertainment (NYSE: WWE - News): 'Here's the thing: WWE has done absolutely nothing since I recommended it, but you got a 6% yield. And you know what? ... I am sticking by WWE, because of international business.'Washington Mutual (NYSE: WM - News): 'Oh man, too cheap with a good dividend.'Cisco (NasdaqGS: CSCO)MRV Communications (NasdaqGM: MRVC)
Bearish calls:
Sirius Satellite Radio (NasdaqGS: SIRI): 'I've given up. I recommended this stock on the basis of takeover, which you should never do. I violated all my own rules ... the fundamentals don't support it.'Rackable Systems (NasdaqGS: RACK): 'I believe that, if you hold this stock until August/September, you'll get some lift, but I cannot tell you anything good about RACK. That may have been the worst quarter in 2007. don't buy, don't buy. And, with any lift, sell, sell, sell!'Par Pharmaceutical (NYSE: PRX - News): 'Now, you know, one of my problems is I have not liked the generic stocks ... The companies that make generic drugs are commodity companies. They have nothing proprietary... Sell, sell, sell! I don't want that stock in your portfolio.'Informatica (NasdaqGS: INFA): Ciena (NasdaqGS: CIEN): 'No. I'd rather see you in MRVC. Use a limit please.'Tellabs (NasdaqGS: TLAB): 'Oh c'mon, CSCO's killing them. You don't need that TLAB.'
Published by SeekingAlpha

Labels: CA, CIEN, CL, CLX, CSCO, Hot Stocks, INFA, Jim Cramer, Lightning Round, Mad Money, NYX

American Axle & Manufacturing (NYSE:AXL - News) reported a fourth-quarter loss of $188.6 million, or $3.74 a share, down from a year-ago profit of $4.5 million, or 9 cents a share. The latest results include charges stemming from its special attrition program and asset impairment. Looking ahead, the Detroit-based car parts company said it expects earnings of $1.25 to $1.50 a share in fiscal 2007 with sales rising to $3.3 billion.
Ameristar Casinos Inc. (NasdaqGS:ASCA - News) reported fourth-quarter net earnings of $17.8 million, or 31 cents a share, up 25% from $14.3 million, or 25 cents a share, during the year-ago period. The company posted net revenue of $244 million vs. $243.8 million.
Aviza Technology (NasdaqGM:AVZA - News) shares jumped after the Scotts Valley, Calif.-based maker of semiconductor capital equipment late Thursday reported a fiscal first-quarter net profit of $1.13 million, or 7 cents a share. In the same quarter last year, the company posted a net loss of $4.63 million, or $1.25 a share. Revenue surged to $62.2 million from $28.9 million. Aviza expects second-quarter revenue of $60 million to $64 million, with operating income of $2.5 million to $3 million.
Brookfield Homes Corp. (NYSE:BHS - News) said fourth-quarter net income fell, as home closings and lot sales declined, to $58.8 million, or $2.19 a share, from $129.6 million, or $4.36 a share, during the same period in the prior year.
CA Inc. (NYSE:CA - News) said its third-quarter net income fell 14%, as the company continues to restructure through acquisitions and cost cuts.
Electronic Arts (NasdaqGS:ERTS - News) said earnings fell 38% in the December quarter as video game sales stayed flat with the previous year due to a lack of hit titles during the holiday shopping period.
Gannett (NYSE:GCI - News) shares rose after the newspaper publisher said net income rose 3% in the fourth quarter, as election-year political advertising on its television stations offset higher expenses. Earnings rose to $353.5 million, or $1.51 a share, from $343.3 million, or $1.44 a share, in the fourth quarter a year earlier. Revenue rose 7.5% to $2.21 billion. Gannett's results were clouded by the impact of an extra week in December compared with the prior year. The average estimate of analysts was for earnings of $1.49 a share on revenue of $2.15 billion, according to Thomson Financial.
Genworth Financial Inc. (NYSE:GNW - News) said fourth-quarter net income came in at $373 million, or 81 cents a share, up 21% from a year earlier when the life insurer made $307 million, or 64 cents a share.
Shares of Hayes Lemmerz International Inc. (NasdaqGM:HAYZ - News) gained after the Northville, Mich.-based supplier of automotive components announced new moves in an effort to streamline its North American businesses. The company said it has agreed to sell its Montague, Mich., and Bristol, Ind., suspension operations to Diversified Machine Inc. Financial terms of the deal were not disclosed. Hayes Lemmerz expects to complete the sale within the next 30 days. In addition, the company said it will relocate its automotive components group headquarters and technical center to its Northville, Mich., corporate headquarters from Ferndale, Mich. The Ferndale facility will be closed, Hayes Lemmerz added.
Intuitive Surgical (NasdaqGS:ISRG - News) shares surged after the company said its fourth-quarter earnings fell 52%, as the year-ago quarter included a $22.2 million benefit associated with deferred tax assets. The Sunnyvale, Calif., medical equipment maker had fourth-quarter earnings of $23.6 million, or 62 cents a share, compared with $49.5 million, or $1.31 a share, a year earlier. On a pro forma basis, excluding the cost of accounting for stock-option payments, the company earned $28.1 million, or 73 cents a share. Intuitive Surgical said revenue for the quarter ended Dec. 31 rose 56% to $112.6 million from $72.1 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 51 cents a share on revenue of $105 million.
Longs Drug Stores Corp. (NYSE:LDG - News) turned in better-than-expected January sales results. Sales at stores open longer than a year, the industry benchmark known as same-store sales, were up 3.4%, ahead of the 2% increase expected by analysts.
Millipore (NYSE:MIL - News) shares gained after the company said fourth-quarter net income rose sharply to $18.5 million, or 34 cents a share, from $1.02 million, or 2 cents a share, a year earlier, helped by foreign exchange rates and its bioscience division. The biosciences products and services company said revenue increased 49% to $383.1 million from $256.3 million a year earlier. Excluding items, the company earned $49.1 million, or 90 cents a share, up from $32.7 million, or 62 cents a share, a year earlier. On average, analysts polled by Thomson Financial expected earnings of 81 cents a share on revenue of $365.2 million. Analysts' estimates usually exclude items.
Nextest Systems (NasdaqGM:NEXT - News) reported fiscal second-quarter earnings of $2.2 million, or 12 cents a share, up from a year-ago loss of $95,000, or a penny per share. Looking ahead, the San Jose, Calif.-based maker of semiconductor test equipment said it sees earnings of 3 to 10 cents a share for the third quarter on revenue of $18 million and $22 million.
Owens & Minor Inc. (NYSE:OMI - News) increased its quarterly cash dividend 13.3% to 17 cents from 15 cents a share. The dividend is payable on March 30 to shareholders of record as of March 15.
Raytheon (NYSE:RTN - News) was upgraded to buy from neutral at Citigroup. The firm cited the company's strong organic growth.
Ronson Corp. (NasdaqCM:RONC - News) said its board declared a 5% common stock dividend. The Somerset, N.J., holding company said the dividend is payable April 16, to shareholders of record March 30. The dividend will increase the company's common shares outstanding by about 228,000 shares to 4.8 million.
Secure Computing (NasdaqGS:SCUR - News) swung to a fourth-quarter loss of $27.4 million, or 44 cents a share, from year-earlier profit of $6.57 million, or 17 cents a share. Excluding items, Secure would have earned 7 cents a share, down from 17 cents a share a year earlier. The San Jose network-security company said Thursday that fourth-quarter revenue rose to $51.6 million from $30.2 million a year earlier. Analysts polled by Thomson Financial, on average, expected break-even non-GAAP earnings on revenue of $55.8 million. For the first quarter, Secure expects non-GAAP per-share earnings of 3 to 4 cents on revenue of $59 million to $61 million. Wall Street, on average, is looking for non-GAAP earnings of 2 cents a share on revenue of $56.2 million for the first quarter.
Silicon Motion Technology Corp. (NasdaqGM:SIMO - News) said fourth-quarter net income rose to Taiwan $334.7 million ($10.2 million), or T$10.60 per American Depositary Share (32 cents), from T$246 million, or T$7.81 per ADS (24 cents), during the same period in the prior year. Analysts were looking for per-ADS earnings of 30 cents.
Simpson Manufacturing (NYSE:SSD - News) shares gained after the company reported said fourth-quarter net income of $18.7 million, or 38 cents a share, down from $21.6 million, or 44 cents a share, during the same period in the prior year. Analysts polled by Thomson Financial had expected per-share earnings of 40 cents. The Pleasanton, Calif.-based manufacturer of wood-to-wood, wood-to-concrete and wood-to-masonry connectors said quarterly revenue fell to $179.6 million from $203.9 million in the prior year, while Wall Street was expecting $189 million.
Standard Pacific Corp. (NYSE:SPF - News) reported a fourth-quarter net loss of $98.4 million, or $1.53 a share. During the same period a year ago, the company posted net earnings of $154.9 million, or $2.22 a share.
Published By MarketWatch

Labels: ASCA, AVZA, AXL, BHS, CA, ERTS, GCI, GNW, HAYZ, ISRG, LDG, MIL, NEXT, OMI, RONC, RTN, SCUR, SIMO, SPF, SSD