Jim Cramer Blog

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Piedmont (NYSE:PNY - News) reports earnings on Monday before the bell, with traders looking for -$0.05 EPS. PNY's PowerRating (for Traders) is 6.
When Immucor (NasdaqGS:BLUD - News) reports earnings on Wednesday after the close, traders will be watching for $0.24 EPS. BLUD's PowerRating (for Traders) is 5.
KB Home (NYSE:KBH - News) dropped about 3.5% on Friday, following an extremely weak new home sales report out of the U.S. KBH's PowerRating (for Traders) is 5.
Pulte Homes (NYSE:PHM - News) also fell on the news, down over 2% for the day. PHM's PowerRating (for Traders) is 4.
Cal-Maine Foods (NasdaqGM:CALM - News) rallied 9% on Friday after announcing a massive increase in Q2 net income from the same period last year. CALM's PowerRating (for Traders) is 3.
CDC Corporation (NasdaqGM:CHINA - News) rallied 23% on Friday after announcing that the company's directors and executives have purchased nearly 500k shares of the company over the last week. CHINA's PowerRating (for Traders) is 2.
Checkpoint Software (NYSE:CKP - News) rallied 15% after announcing a new CEO. CKP's PowerRating (for Traders) is 4.

Labels: BLUD, CALM, CHINA, CKP, Hot Stocks, KBH, PHM, PNY

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Adobe Systems (NasdaqGS:ADBE - News) reports earnings on Monday before the bell, with traders looking for $0.48 EPS. ADBE's PowerRating (for Traders) is 5.
When Spartech (NYSE:SEH - News) announces quarterly results on Monday morning, analysts will be watching for $0.01 EPS. SEH's PowerRating (for Traders) is 6.
Black & Decker (NYSE:BDK - News) fell over 6% on Friday, after lowering its profit forecast for Q4 and the full year. BDK's PowerRating (for Traders) is 5.
CDC Corporation (NasdaqGM:CHINA - News) plummeted 17% after missing analyst earnings estimates on Friday morning. CHINA's PowerRating (for Traders) is 6.
Evergreen Solar (NasdaqGM:ESLR - News) ralled 12% after announcing plans to purchase enough refined silicon to produce 1,000 megawatts of modules by 2012. ESLR's PowerRating (for Traders) is 3.
JA Solar Holdings (NasdaqGM:JASO - News) also rallied 12% after projecting the company will beat analyst estimates for Q4. JASO's PowerRating (for Traders) is 4.
Quiksilver (NYSE:ZQK - News) fell 10% on Friday after missing earnings estimates on Friday morning.

Labels: ADBE, BDK, CHINA, ESLR, Hot Stocks, JASO, SEH, ZQK

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Leap Wireless (NasdaqGS:LEAP - News) beat earnings on Thursday afternoon, announcing -$0.09 EPS versus -$0.15 EPS. LEAP's PowerRating (for Traders) is 6.
Novell (NasdaqGS:NOVL - News) also beat earnings, reporting $0.06 EPS over $0.04 EPS. NOVL's PowerRating (for Traders) is 4.
Quiksilver (NYSE:ZQK - News) missed earnings on Thursday, with $0.51 EPS versus $0.52 EPS. ZQK's PowerRating (for Traders) is 4.
CDC Corporation (NasdaqGM:CHINA - News) reports earnings on Friday before the market opens, with traders looking for $0.08 EPS. CHINA's PowerRating (for Traders) is 6.
Amtech Systems (NasdaqGM:ASYS - News) dropped more than 25% on Thursday after announcing Q1 projections which did not meet analyst expectations. ASYS's PowerRating (for Traders) is 5.
Countrywide Financial (NYSE:CFC - News) fell more than 5% on Thursday after announcing that foreclosures doubled in November and late payments continue to rise. CFC's PowerRating (for Traders) is 5.
Dow Chemical (NYSE:DOW - News) jumped 7% today after announcing plans to allow Kuwait to buy half of Dow's plastics division for $9.5 billion. DOW's PowerRating (for Traders) is 4.

Labels: ASYS, CFC, CHINA, DOW, Hot Stocks, LEAP, NOVL, ZQK

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Casey's General Store (NasdaqGS:CASY - News) beat expectations on Wednesday afternoon with $0.55 EPS over $0.46 EPS. CASY's PowerRating (for Traders) is 6.
Comtech Telecom (NasdaqGS:CMTL - News) beat earnings expectations on Wednesday after the bell, announcing $0.54 EPS over an expected $0.49 EPS. CMTL's PowerRating (for Traders) is 5.
Analogic (NasdaqGS:ALOG - News) reports earnings on Thursday morning before the bell, with traders looking for $0.40 EPS. ALOG's PowerRating (for Traders) is 4.
CDC Corporation (NasdaqGM:CHINA - News) announces quarterly earnings Thursday morning; watch for $0.09 EPS. CHINA's PowerRating (for Traders) is 4.
Flow (NasdaqGM:FLOW - News) is looking to announce $0.08 EPS on Thursday before the market opens. FLOW's PowerRating (for Traders) is 2.
Toll Brothers (NYSE:TOL - News) should announce -$0.77 EPS on Thursday morning. TOL's PowerRating (for Traders) is 4.
Toro (NYSE:TTC - News) is expected to report $0.12 EPS tomorrow morning before the bell. TTC's PowerRating (for Traders) is 4.

Labels: ALOG, CHINA, CMTL, FLOW, Hot Stocks, TOL, TTC

Erin Burnett started the show today showing crude oil up about $0.40. Financial earnings are predicted to be down for the next few days. Fannie May seems to be taking a dip downward. HSBC Holdings (HBC) is noted as being one of the financials with weak stock. Electronic sales have actually shown an increase despite the weak retail market. Homebuilders lead decline. Steve Liesman gives the econ recon, saying investors are scrambling to buy junk bond yields which have shown a rapid incline in valuable stock. The stock in credit companies are reported as being much weaker than the drop that was seen back in August. Lewis Alexander a Citi Chief Economists says that the drop we see in short term stocks will be short lived and a dependence on the FED to contain the financial stress, will affect our resilience to a recession. Brian Shactman of CNBC says that Cyber Monday did not act as the number online sales day of the year. 72% of online retailers give Cyber Monday "deals," compared to 43% last year. Such as free shipping costs and percentage slashing. Sales are expected to break $700 M for this year's Cyber Monday. Wal-Mart, Target and JC Penny are among the top contenders for promotional sales. E-Bay and Amazon.com are doing very well along with direct company sales websites. Next, China was discussed with John Maziotti, mayor of Palm Bay, FL. He is part of the proposed ban on goods from China. Proposed ban does not include emergency products. Palm Bay are looking for funds to be raised for a "made in America" Christmas tree lighting. He says the loss of jobs and the unhealthy variables included in imported products from China are the main issues backing the proposed ban. Robert Shuller of Macro-Markets says that to fix the housing market in the long term is going to take the creation of a consumer-oriented focus. To offer mortgages with outs in the initial contract will be one of the first issues on the reform list. Stop Trading with Jim Cramer was next. He supports the proposed ban on importing Chinese manufactured goods. Garmin (GRMN) is recommended to buy and sell 18 months from now. Richard Peterson from Thomson Financial says that this will be a record high for global IPO's. Russia leads with $8 B, New York in 4th place with $4.3B, but leads the market in American currency exchanges. Jim Goldman of CNBC reports that Yahoo (YHOO) small business servers are down. Hosting 3 million sites this will be causing some problems says Jim Goldman. Oil is responsible for 33% of Yemen GDP.

Labels: Amazon.com, CHINA, CNBC, Ebay, Erin Burnett, JCP, Jim Cramer, Mad Money, Street Signs, street signs recap, TGT, Wal-Mart

On Tuesday's show Cramer gave out 5 rules for investing in the stock market. His first rule is that there is a market for everything, including the stocks themselves. He said an example was how ethanol stocks were very hot about a year ago, and then several IPOs came on the market, so there was an oversupply of ethanol stocks on the market and the entire sector went down. So the ethanol business and news didn't matter because there were too many ethanol stocks available. Cramer said another example was his recommendation of Sealy (ZZ) at its IPO where he liked the stock, but didn't realize that there was a glut of IPOs, so the IPO market was saturated and the stock tanked.
Cramer took soma calls. The first caller asked how you can know whether an IPO is a good investment or not, and Cramer said that the key is the offering price for the shares. Another caller asked if there are any sectors that Wall Street overlooks, and Cramer said that you should look for a sector that used to have 10 analysts and only has 1 or 2 now and consider that sector for a turnaround. The next caller asked about the Vonage (VG) IPO, and Cramer said that this IPO was overhyped and that they should not have let the company sell stock to its customers.
Cramer's second rule is to know what you own. Sectors don't always matter since stocks within a sector can rally without others. Industries within a sector are the key to rallies, not the sector itself. An example occurred a couple years ago when he called for a tech rally and recommended Cisco (CSCO) and Microsoft (MSFT) because they were the big tech stocks, and he should have been thinking more specifically about the gadget industry within tech, since stocks like Apple (AAPL) were up big. He also said that he wants you to do at least 1 hour of homework each week for each stock you own. He thinks you should give your money to a mutual fund if you don't have enough time.
A caller asked why you don't see big rallies in the biotech sector, and Cramer explained that biotech stocks are moved by FDA rulings, not broader industry moves. The next caller asked how to find the pin action within a sector that Cramer talks about, and he used an example where Boeing (BA) reported a great quarter, and you should look to see who makes the components of the planes they make, since their sales will rise with Boeing's. The next caller asked how to predict performance if a sector is split, like Internet search with Yahoo! (YHOO) and Google (GOOG), and Cramer said that you need to look at management and other company specific factors in that case.
Cramer's third rule is that Latin America should always be treated as a shorter term trade since Wall Street has preconceived notions about the region that prevent it from being a long term investment, and they are the ones who move the market. You should always take profits as a Latin American stock moves up so you don't get caught when the big investors move out of their trade. A caller asked how important our economy is to Chinese stocks, and Cramer said that he doesn't like to recommend Chinese stocks because he doesn't trust their economy. The other caller asked about stocks like Wal-mart (WMT) and Starbucks (SBUX) that are expanding in China, and Cramer said that Starbucks could be the next Yum! Brands (YUM) which doubled their stock price after they doubled their stores in China.
Cramer's next rule is that being a lemming is ok, but he still wants you to go your homework, but if you agree with the moves that big investors are making, then it's good to go with the momentum.
His last rule was to not be afraid to say that something is too difficult to invest or trade on. His example is restaurant same store sales, which he has been crushed on in the past since there are so many factors that contribute to the number and the reaction. He said you aren't being weak, but smart by focusing your time someplace where you can make money.

Labels: AAPL, BA, CHINA, CSCO, GOOG, IPO, Jim Cramer, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, MSFT, SBUX, VG, WMT, YHOO, YUM, ZZ

Melissa Lee hosted today for Erin and started off Tuesday's show with an exclusive news break talking about stocks being down for the seventh time in nine sessions. Crude oil reached $98 for the first time, reaching a new high. They talked about Google and increasing their price target to $900 per share. Terry is looking for Google to mover in to powerful display advertising to gain market share, as advertising goes digital.
Samantha Davies came back talking about the bad weather approaching this week for the holiday season. Wednesday it will be very cold and rainy from the coast to the Great Lakes. On Thanksgiving it will be even colder in the Midwest and should expect many delays at several airports. Tim Zagat was on the show discussing the descent in airlines. He discussed specifically the increase in delays and cancellations. International airlines have fared much better than US domestic carriers. Midwest airlines and JetBlue airways have been the most successful economy carriers, because they are mostly business class airlines.
They came back discussing the drastic increases in oil and how the dollar weakness helps push crude oil to record closes.
The Bond Report: Santelli showed how 2-year note rates are still decreasing. He also said that the dollar index is decreasing very rapidly.
The Faber Report: Freddie Mac (FRE) has taken a large hit on their portfolio, especially today. Fannie Mae (FNM) has also taken a hit. Countrywide stock is below $10 a share and says that bankruptcy rumors are "absolutely false." 40% of their assets are in option arms. Fred Cannon has a $66 price target on FRE and $62 on FNM. He said that Fannie Mae gave us more of an insight to upcoming quarters. The government will eventually turn to GSE's.
Melissa came back with Paul Goodwin discussing the growing bear market in China. Many of the stocks are currently overvalued as well as very risk adverse. Aluminum China and E House China Holdings were two stocks that Goodwin said are taking your money and falling into downward trends. Predicts a rough three months for these stocks.
Lee came back discussing the value of the Canadian dollar and the Toronto Blue Jays. The Blue Jays make about $740,000 for every .01 cent increase in the loon compared to the US dollar.
Bertha Coombs discussed Oprah's favorite things this year. She gave away a $3800 LG HDTV Refrigerator on her show among many other lavish gifts.

Labels: CHINA, CNBC, Crude Oil, Erin Burnett, FNM, FRE, GOOG, JetBlue Airways Corp., Melissa Lee, Midwest Air, oprah, Santelli, Street Signs, street signs recap, the bond report, the faber report

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Barnes & Noble (NYSE:BKS - News) reports earnings on Tuesday before the market opens, with analysts looking for -$0.08 EPS. BKS's PowerRating (for Traders) is 5.

CDC Corporation (NasdaqGM:CHINA - News) is expected to announce $0.09 EPS on Tuesday morning before the market opens. CHINA's PowerRating (for Traders) is 5.
Gamestop (NYSE:GME - News) announces earnings tomorrow morning before the bell, with traders expecting $0.23 EPS. GME's PowerRating (for Traders) is 6.
Hormel Foods (NYSE:HRL - News) should report $0.65 EPS on Tuesday morning before the bell. HRL's PowerRating (for Traders) is 4.
When Office Depot (NYSE:ODP - News) announces quarterly results on Tuesday morning, look for $0.40 EPS. ODP's PowerRating (for Traders) is 5.
Saks (NYSE:SKS - News) and Target (NYSE:TGT - News) both report earnings tomorrow morning. SKS is looking for $0.16 EPS, while TGT expects $0.61 EPS. SKS's PowerRating (for Traders) is 4, and TGT's PowerRating (for Traders) is 5.

Labels: BKS, CHINA, GME, Hot Stocks, HRL, ODP, SKS, TGT

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
ADC Telecom (NasdaqGS:ADCT - News) beat earnings expectations on Wednesday, announcing $0.37 EPS over an expected $0.23 EPS. ADCT's PowerRating (for Traders) is 4.

J. Crew (NYSE:JCG - News) also beat earnings, with $0.32 EPS over a consensus of $0.29 EPS. JCG's PowerRating (for Traders) is 6.
Campbell Soup (NYSE:CPB - News) announces earnings on Thursday before the market opens, with analysts looking for $0.18 EPS. CPB's PowerRating (for Traders) is 4.
CDC Corporation (NasdaqGM:CHINA - News) should report $0.09 EPS on Thursday morning before the bell. CHINA's PowerRating (for Traders) is 4.
Analysts are watching for Jackson Hewitt (NYSE:JTX - News) to report -$0.46 EPS on Thursday morning before the market opens. JTX's PowerRating (for Traders) is 4.
When Jos. A. Bank (NasdaqGS:JOSB - News) announces its quarterly earnings report on Thursday morning, look for $0.44 EPS. JOSB's PowerRating (for Traders) is 3.
UTI Worldwide (NasdaqGS:UTIW - News) is set to report $0.27 EPS on Thursday morning. UTIW's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADCT, CHINA, CPB, Hot Stocks, JCG, JOSB, JTX, UTIW

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

China sought Sunday to dampen speculation it will conduct a massive sell-off of U.S. dollar holdings, with a central bank official saying the dollar remains a mainstay of its foreign exchange reserves.
In an interview carried by the government's Xinhua News Agency, an unnamed official with the People's Bank of China said U.S. dollars and government bonds are "an important part of China's foreign reserve investments."
China's $1.3 trillion in foreign exchange reserves are the largest in the world and are believed to be comprised largely of dollar assets, potentially giving Beijing enormous sway over the dollar's value and currency markets worldwide.
A report in the British newspaper The Daily Telegraph this past week that quoted Chinese government economists as saying China would dump its dollar holdings in the event of a trade war with Washington added to jitters in stock markets already unnerved by volatility in U.S. share markets.

Labels: CHINA

China's trade surplus soared 67 percent in July from a year ago to its second-highest monthly level on record, according to data reported Friday, amid pressure by U.S. lawmakers to sanction Beijing over trade and currency disputes.

July's surplus totaled $24.4 billion, the Chinese customs agency reported. That beat every previous month except June's all-time high of $26.9 billion.
Analysts had expected the surplus to ease in July after exporters rushed to ship goods in earlier months to beat changes in tax policy meant to narrow China's yawning trade gap.
The surplus grew despite recalls and warnings targeting faulty or tainted Chinese goods ranging from toothpaste to tires to seafood in the United States and other countries.

Labels: CHINA

Chinese stocks rose to a record Wednesday, marking a complete recovery from their late February swoon that sparked a selloff in global financial markets.
Gains in real estate stocks lifted the benchmark Shanghai Composite Index 0.8 percent to 3,057.38, breaking the previous closing high set Feb. 26, a day before it plunged nearly 9 percent. That drop sparked declines in New York, London and through much of Asia for about a week.
The key index on China's smaller market in Shenzhen rose 1.4 percent to 805.68, also a record high.
Analysts said they expect further gains in the near-term for the market, although "gains won't come as easily as before," said Tang Xiaosheng, an analyst at Guosen Securities.
"The blue chips' valuations are no longer attractive after recent rises and many investors would wait for their first-quarter earnings for trading clues," Tang said.
Listed firms generally publish their quarterly results in April and May.
Real estate companies rallied amid speculation that the central bank will raise yuan rates at a quicker pace after Gov. Zhou Xiaochuan said China doesn't intend to build more foreign exchange reserves.
In an interview with the EmergingMarkets newspaper distributed Tuesday at a meeting in Guatemala City, Zhou was quoted as saying China's monetary authority doesn't "intend to go further and accumulate (foreign) reserves." He added that "many people say that foreign exchange reserves in China are (already) large enough."
It wasn't clear how China might limit its currency reserves, which total more than $1 trillion, and are rising around $20 billion a month.
Zhou was in Guatemala's capital for the annual Inter-American Development Bank meeting.
Property companies rank stand to benefit from a stronger yuan because their land and property holdings are denominated in local currency, analysts said.
Shanghai Lujiazui Finance & Trade Zone Development, a flagship developer in the city, jumped 10 percent to 18.44 yuan. Beijing Huaye Realestate rose 9.7 percent to 12.05 yuan and Shanghai Jinqiao Export Processing Zone Development advanced 5.5 percent to 14.30 yuan.
Banks also closed higher, helping lift the market, as their yuan-denominated assets could also get a boost from yuan rises.
Shanghai Pudong Development Bank finished up 4.6 percent at 26.17 yuan and China Minsheng Banking rose 1 percent to 11.89 yuan. UBS upgraded Minsheng to "buy" from "neutral" and raised the price target for the lender to 14.40 yuan from 11.40 yuan.
Published by AP

Labels: CHINA, Chinese Stocks, Shanghai

Apple Inc. (NasdaqGS:AAPL - News) Chief Operating Officer Tim Cook reiterated that the company remains on track to release its iPhone mobile-phone product in June, and that Apple expects to sell 10 million of the devices in 2008.
Audible Inc. (NasdaqGM:ADBL - News) reported a fourth-quarter net loss of $700,000, or 3 cents a share, compared with a net loss of $2.18 million, or 9 cents a share, in the year-ago period. Revenue at the Newark, N.J.-based provider of Internet audio content rose to $23.3 million in the latest quarter from $18.3 million a year ago. The stock was upgraded to buy from hold at Jefferies & Co.
BEA Systems (NasdaqGS:BEAS - News) was upgraded to peer perform from underperform at Bear Stearns.
CDC Corp. (NasdaqGM:CHINA - News) lifted its financial outlook for 2007, saying it now expects adjusted net income of $57 million to $62 million, above its prior forecast of $55 million to $60 million. The company expects revenue of $415 million to $420 million for the year, a boost from its previous estimate of $401 million to $411 million.
Ciena (NasdaqGS:CIEN - News) was upgraded to overweight from neutral by J.P. Morgan, as the broker said the recovery in the optical market is greater than it first expected.
Deckers Outdoor Corp.'s (NasdaqGS:DECK - News) preliminary fourth-quarter results indicate net income nearly doubled to $23.5 million, or $1.82 a share, from $12.1 million, or 94 cents a share, a year earlier. The Goleta, Calif., maker of outdoor footwear and apparel said net sales increased 37% to $124.4 million from $91 million a year ago.
Dollar Thrifty Automotive Group (NYSE:DTG - News) reported a fourth-quarter loss of $2.7 million, or 11 cents a share, down from a year-ago profit of $8.2 million, or 31 cents a share. The latest results include 10 cents a share in transition costs related to the outsourcing of information technology services and a charge of 5 cents a share from a decrease in the fair value of derivatives, while last year's performance reflects a gain of 11 cents a share from an increase in the fair value of derivatives. Revenue rose 11.5% in the three months ended Dec. 31 to $392.8 million from $352.4 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a loss of a penny per share in the December period. The company said the latest results reflect a very strong pricing environment, as well as significantly higher vehicle depreciation and interest costs compared to last year. Looking ahead, the Tulsa, Okla., car rental company sees earnings of $2.50 to $2.90 a share in 2007. Wall Street's current consensus estimate is for a profit of $2.62 a share for the year.
Dollar Tree Stores Inc.'s (NasdaqGS:DLTR - News) fiscal fourth-quarter net income rose to $97.6 million, or 96 cents a share, from $86.5 million, or 81 cents a share, a year ago. A Thomson Financial survey of analysts, on average, predicted earnings of 94 cents a share for the quarter. Analysts' estimates usually exclude items. The Chesapeake, Va., discount retailer's net sales for the quarter ended Feb. 3 rose 22% to $1.32 billion from $1.08 billion a year ago, boosted by an extra sales week in the current quarter. The company expects first-quarter earnings of 32 cents to 35 cents a share on sales of $935 million to $955 million.
Dycom Industries Inc. (NYSE:DY - News) shares rose after the Palm Beach Gardens, Fla.-based engineering and construction services provider reported fiscal second-quarter net earnings of $5.59 million, or 14 cents a share, up from $3.87 million, or 10 cents a share, in the year-ago period. Revenue rose to $258.3 million from $237.1 million. Analysts polled by Thomson Financial were expecting a per-share profit of 13 cents on revenue of $253.4 million. Dycom forecast fiscal third-quarter earnings from continuing operations of 23 cents to 28 cents a share on revenue of $275 million to $295 million. Analysts are looking for a per-share profit of 24 cents on revenue of $275 million.
Goodyear Tire & Rubber Co. (NYSE:GT - News) plans to record a charge of $65 million in the first quarter of 2007 for changes to its benefit and pension plans. The Akron, Ohio-based tire maker said, among other changes, current and future salaried retirees will contribute more toward the cost of their medical benefits and that the company would freeze its defined benefit pension plan for current salaried employees, replacing it with 401(k) retirement accounts. The changes will be phased in over a two-year period, and Goodyear expects savings of $80 million to $90 million in 2007, $100 million to $110 million in 2008, and $80 million to $90 million in 2009 and beyond.
Hospira (NYSE:HSP - News) reported a nearly 80% jump in fourth quarter profit Wednesday on higher product volumes, higher prices and favorable currency exchange. The company earned $47.4 million, or 30 cents a share, on the period - up from $26.6 million, or 16 cents. On an adjusted basis, Hospira said it would have earned 43 cents a share, vs. 32 cents in the last three months of 2005. Revenue came in at $706.5 million, a gain of 9.3%. The average estimate of analysts polled by Thomson Financial was for Hospira to earn 38 cents a share on $674 million in revenue.
Kenneth Cole Productions Inc. (NYSE:KCP - News) reported fourth-quarter net earnings of $7.99 million, or 39 cents a share, up 6.9% from $7.48 million, or 37 cents a share, in the year-ago period. Revenue in the quarter ended Dec. 31 rose to $122.4 million from $119.8 million.
King Pharmaceuticals (NYSE:KG - News) reported fourth-quarter earnings of $37 million, or 15 cents a share, up from a year-ago loss of $95 million, or 39 cents a share. Excluding items, such as charges from asset impairment and an arbitration settlement, the company earned $98.8 million, or 41 cents a share, in the latest quarter. Revenue rose in the three months ended Dec. 31 to $512.9 million from $423.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 37 cents a share in the December period on revenue of $480.6 million.
Komag (NasdaqGS:KOMG - News) shares rose after American Technology Research analyst Shaw Wu lifted his rating on the hard-disk maker's stock to neutral from sell. Wu said Komag is benefitting from more sales to its largest customer, Seagate Technology , which accounts for 37% of Komag's revenue. However, Wu warned that Komag faces other fundamental challenges as it deals with rising costs and competition involving a shift to newer disk-recording technologies.
L-3 Communications (NYSE:LLL - News) was upgraded to neutral from underweight by J.P. Morgan, with the brokerage saying the stock should have limited downside given its high free cash flow yield. "We believe 2007 could be a more challenging year for defense stocks, and given L-3's more modest valuation, we no longer expect it to underperform the group," the broker said.
Leap Wireless International (NasdaqGS:LEAP - News) shares advanced after the San Diego-based provider of wireless communications services reported a fourth-quarter net loss of $39.4 million, or 60 cents a share. In the same quarter last year, the company posted a net profit of $4.95 million, or 8 cents a share. Revenue rose to $315.5 million from $228.9 million. Analysts polled by Thomson Financial were expecting a per-share loss of 35 cents on revenue of $316 million. Leap said it added 262,000 net new customers in the fourth quarter, and expects to add 260,000 to 320,000 net new customers in the first quarter.
Martha Stewart Living Omnimedia (NYSE:MSO - News) said fourth-quarter net income jumped to $16.2 million, or 31 cents a share, from $2.9 million, or 6 cents a share in the year-ago period. Total revenue rose to $97 million from $84.6 million. Analysts, on average, expected it to earn 25 cents a share on revenue of $95 million, according to Thomson Financial. For 2007, the company is expecting revenue in the range of $330 million to $340 million, operating income in the range of $5.5 million to $8.5 million and adjusted EBITDA in the range of $32 million to $35 million, including an investment of $8 million in "Blueprint" magazine.
Medical Action Industries (NasdaqGS:MDCI - News) was upgraded to buy from neutral at Sidoti & Co.
Merck & Co. (NYSE:MRK - News) said it expects its first-quarter profit will be 63 to 67 cents a share, excluding restructuring charges related to site closures and position eliminations, and targets reported first-quarter earnings per share of 58 cents to 64 cents. Whitehouse Station, N.J.-based Merck cited early revenue trends across Merck's range of products. The company also raised its anticipated 2007 earnings forecast range to $2.55 to $2.65 a share, excluding items related to site closures and position eliminations, and its full-year 2007 reported earnings range to $2.40 to $2.55 a share. Analysts, on average, expect it to earn 60 cents a share for the first quarter and $2.62 a share for the year, according to Thomson Financial. Merck said its forecasts do not reflect the establishment of any reserves for any potential liability relating to the Vioxx litigation.
Midwest Air Group Inc. (AMEX:MEH - News) , citing its own growth forecasts, urged its shareholders again Wednesday to reject a takeover offer from AirTran Holdings Inc. "AirTran's low-cost carrier business model is in trouble. By virtually any metric, AirTran's business is deteriorating," according to a letter Midwest sent to its shareholders.
Published By MarketWatch

Labels: AAPL, ADBL, BEAS, CHINA, CIEN, DECK, DLTR, DTG, DY, GT, HSP, KCP, KG, KOMG, LEAP, LLL, MDCI, MEH, MRK, MSO

AMR Corp. (NYSE:AMR - News) shares rose after Citigroup lifted its price target on the stock to $46 from $34 as part of a larger bullish call on the airline industry. The firm also boosted targets for JetBlue (NASDAQ:JBLU - News) and Southwest Airlines (NYSE:LUV - News).
Bio-Reference Laboratories (NASDAQ:BRLI - News) was upgraded to buy from hold at Jefferies & Co. The firm also boosted its price target on the stock to $30 from $26.
CDC Corp. (NASDAQ:CHINA - News) said it expects fourth-quarter software license revenue to rise approximately 37% to $13.8 million to $14.2 million from $10.2 million a year earlier. The Chinese business software company expects to report earnings estimates for the quarter ending December by early-February, with analysts surveyed by Thomson First Call forecasting earnings of 7 cents a share, on average.
Dendreon (NASDAQ:DNDN - News) shares rose after the Food and Drug Administration has granted priority review status to the company's prostate cancer drug candidate Provenge, meaning that the agency should make a decision on whether to approve the product within six months of receiving the company's market application. Dendreon said Tuesday it expects the FDA to render its decision by May 15. A biotechnology product, Provenge is for the treatment of asymptomatic, metastatic, hormone refractory prostate cancer.
ElkCorp (NYSE:ELK - News) disclosed an amendment to its previously disclosed merger agreement with private equity firm The Carlyle Group. The revised deal calls for Carlyle to commence a tender offer to acquire all outstanding ElkCorp common shares for $40.50 each in cash on or before Thursday. The agreement, which values ElkCorp at about $1.05 billion, including the assumption of $173 million in debt, represents an increase of $2.50 per share from the $38 offer called for in the parties' original Dec. 18 agreement. ElkCorp's board is recommending that shareholders tender their stock to the Carlyle offer and reject a $40 per share cash tender offer from Building Materials Corp. of America.
Pharmacy benefits manager Express Scripts Inc. (NASDAQ:ESRX - News) said it launched its exchange offer for all outstanding shares of larger rival Caremark Rx Inc. (NYSE:CMX - News) . Under the terms of the deal, St. Louis-based Express Scripts is offering to pay Caremark shareholders $29.25 in cash and 0.426 shares of Express Scripts for each share of Caremark held. Based on closing stock prices on Jan. 12, Express Scripts said its offer has a value of $56.87 per share, or about $25 billion, and gives Caremark stockholders a 7% premium to the current value of the rival offer from drugstore operator CVS Corp. (NYSE:CVS - News). The offer from Express Scripts and withdrawal rights are scheduled to expire at midnight Eastern Standard Time on Feb. 13, subject to extension.
FairPoint Communications (NYSE:FRP - News) shares jumped after the company reached a deal with Verizon Communications (NYSE:VZ - News) to combine certain assets in less populated areas of New England. The agreement calls for Verizon to spin off certain operations in Maine, Vermont and New Hampshire and merge them with FairPoint. Verizon investors will receive 1 share of FairPoint for every 55 shares of Verizon held.
FedEx (NYSE:FDX - News) was upgraded to overweight from neutral at J.P. Morgan, citing valuation.
Genesis HealthCare Corp. (NASDAQ:GHCI - News) agreed to be acquired for $63 a share in cash by a joint venture between affiliates of Formation Capital LLC and JER Partners. The deal is valued at $1.7 billion, including the assumption of $450 million in debt, Genesis said. The company said the $63-a-share offer represents a 31% premium over its average share closing price over the past 30 days. The deal to take the company private must still be approved by shareholders. Kennett Square, Pa.-based Genesis provides healthcare and support services to the elderly.
GMH Communities Trust (NYSE:GCT - News) was upgraded to neutral from sell at Banc of America Securities on valuation.
HealthExtras (NASDAQ:HLEX - News) was upgraded to outperform from market perform at Raymond James.
Highway Holdings (NASDAQ:HIHO - News) said it's received two initial original equipment manufacturer orders from U.S. based customers. Financial terms weren't disclosed.
Infrasource Services (NYSE:IFS - News) lifted its outlook for the fourth quarter, saying it saw higher than expected revenue from the successful completion of several projects, increased customer demand for greater volumes of work and favorable weather. The Media, Pa., utility transmission network construction services provider now sees earnings of 15 to 17 cents a share for the fourth quarter on revenue of between $240 million and $250 million. Its previous outlook was for a profit of 11 to 13 cents a share on revenue ranging from $200 million and $210 million in the period.
Interpool Inc. (NYSE:IPX - News) said its board has received a $24 per share acquisition proposal from a group led by Martin Tuchman, its chief executive officer and chairman. Princeton, N.J.-based Interpool, a maker of transportation equipment, said the group includes other significant investors and an investment fund affiliated with Fortis Merchant Banking. Interpool said its board has formed a special committee to review and evaluate the proposal.
Masco (NYSE:MAS - News) was upgraded to buy from neutral at UBS.
Mercer International (NASDAQ:MERC - News) was upgraded to outperform from sector perform at RBC Capital Markets. The firm also lifted its price target on the stock to $14 from $12, citing a higher outlook for pulp prices.
Mills Corp. (NYSE:MLS - News) shares rose after current stockholder Farallon Partners said in a filing with the Securities and Exchange Commission that they've submitted a term sheet to Mills' financial advisors for a proposed acquisition of an additional $499 million worth of shares at a price of $20 each.

Labels: AMR, BRLI, CHINA, CMX, CVS, DNDN, ESRX, FDX, GCT, GHCI, HIHO, HLEX, IFS, IPX, JBLU, LUV, MAS, MERC, MLS, VZ

1. CDC Corp. (CHINA)
Composite Rating: 99*. Hong Kong-based business software maker owns three straight quarters of accelerating sales growth. Also runs online entertainment site. Accumulation/Distribution Rating: A+**

2.Telestone Technologies (TSTC)
Composite Rating: 99. The wireless telecom equipment maker owns a three-year earnings growth rate of 53%. Accumulation/Distribution Rating: A

3. Siliconware Precision Industries (SPIL)
Composite Rating: 98. Annual profit from the Taiwanese provider of semiconductor packaging and testing services is expected to jump 45% this year. Accumulation/Distribution Rating: B+

4.Brocade Communications Systems (BRCD)
Composite Rating: 98. Third-quarter earnings from the networking equipment maker surged doubled to 14 cents a share. Accumulation/Distribution Rating: B-

5.Alliance One Int’l (AOI)
Composite Rating: 97. Leading leaf tobacco merchant recently raised full-year 2007 guidance. Accumulation/Distribution Rating: A-

6.New Frontier Media (NOOF)
Composite Rating: 94. Earlier this month, the movie distributor declared a special dividend of 60 cents a share, payable on Feb. 14 to shareholders of record Jan. 15. Accumulation/Distribution Rating: B

7.Bovie Medical (BVX)
Composite Rating: 94. Medical device maker recently entered into distribution deal with Boston Scientific. Accumulation/Distribution Rating: B-

8.ClickSoftware Technologies (CKSW)
Composite Rating: 92. Business software maker recently reported third-quarter profit of 3 cents a share, reversing a year-ago loss of a penny a share. Accumulation/Distribution Rating: A-
9.Rhodia (RHA)
Composite Rating: 91. France based specialty chemical maker’s earnings are expected to rocket 550% in 2007. Accumulation/Distribution Rating: A

10. Winthrop Realty Trust (FUR)
Composite Rating: 90. Real estate investment trust, specializing in retail, office, and mixed-use properties. Accumulation/Distribution Rating: B
-IBD

Labels: AOI, BRCD, BVX, CHINA, CKSW, FUR, NOOF, RHA, SPIL, TSTC

Bullish calls:
Starbucks (NASDAQ: SBUX - News): ' You have to hold SBUX for the next 12 months ... before they make the big move in China ... I think the stock's trading 32-42, 32-42. You're at $35. That's a nice part of the range. Stick with SBUX.'Schering-Plough (NYSE: SGP - News): ' I like SGP. It's not stopping here at $22. It's got the best cholesterol drug on the market. I say it goes to $25. Pull the trigger now! May I add that Fred Hassen may be the #1 drug executive in the world!'Merck (NYSE: MRK - News): 'MRK's the winner!'New York Stock Exchange (NYSE: NYX - News): ' Things cannot go right to $250 ... they have detours, apparently. Anything can happen on the way to $250. And what I am telling you, at $96, you must not get off that highway. That highway will get you there. I say stick with it!'EMC (NYSE: EMC - News): ' My friend from GS says that EMC is going higher ... EMC - I think she's going to be right! That's it! I'm changing my call right here. I am going from negative to positive right here - EMC! Buy, buy, buy!'Goldman Sachs (NYSE: GS - News): 'I would actually swap out of that [TRAD] - and go into GS. They're both brokers. One's pretty cheap.'DirecTV (NYSE: DTV - News): 'I think it's happening [Liberty media acquisition of DTV]. This stock will not quit. I believe it's cheap on the fundamentals and cheap on a takeover basis.'Genentech (NYSE: DNA - News): 'I like DNA very much, but....'Amgen (NASDAQ: AMGN - News): ' ... Amgen's pulling back more [than DNA].'Celgene (NASDAQ: CELG - News): 'CELG seems like a candidate to be bought by PFE.'
Bearish calls:
Coach (NYSE: COH - News): 'You know I said take profits. I cannot justify a new purchase at $43. In fact, if you bought it because of me - don't buy, don't buy - take something off please. I expect a good quarter. Big anniversary thing. We're being too greedy.'Pfizer (NYSE: PFE - News): 'PFE blew it!'CDC (NASDAQ: CHINA - News): ' ... 52-week high. You know I don't necessarily trust the Chinese because of their long history of communism... 'Baidu.com (NASDAQ: BIDU - News): 'BIDU... enough! Enough BIDU!'Tractor Supply (NASDAQ: TSCO - News): 'Here's the problem... This company is way, way too, somehow linked to housing ... I am going to have to issue a 'don't buy' on this one.'Tradestation Group (NASDAQ: TRAD - News): 'I think that it's a mistake to sell that stock ... At $1.50 higher, ring the register. I would actually swap out of that - and go into GS.'Eastman Kodak (NYSE: EK - News): 'SellSellSellSellSellSell.'

Labels: AMGN,