Jim Cramer Blog

Bullish Calls:
Chesapeake Energy (NYSE: CHK - News): 'The whole complex of natural gas is so ridiculously too low. Just because we had a couple of months stored... CHK is a great driller. It's got great assets. I believe that natural gas will come back in vogue.'Wynn Resorts (NasdaqGS: WYNN - News): 'Look, Macau gambling is for real! I've been behind the Macau gambling... I still like Wynn.'Las Vegas Sands (NYSE: LVS - News)Apache (NYSE: APA - News): 'I like APA. It has oil, it has gas, and it's right. It's beaten down, and I would pull the trigger today! 'Schlumberger (NYSE: SLB - News): 'Do you know that Schlumberger is selling at 17x next year's earnings?... This is just a very inexpensive stock... how could I not recommend that unbelievable best-of-breed?...'Helix Energy (NYSE: HLX - News): ' ... as much as I like the HLX... If SLB's selling at 17x earnings, I mean, how could I not recommend that unbelievable best-of-breed?... 'Shaw Group (NYSE: SGR - News): ' ... don't hold me to it, but I think that's going to be good. And SGR is on a remarkable run!... Now, look, understand... We had that horrible bridge tragedy, but all of us know the infrastructure is woefully needing repair. It's SGR. The infrastructure bull market is probably the strongest market on earth!'Fluor (NYSE: FLR - News)McDermott (NYSE: MDR - News)DaimlerChrysler (NYSE: DCX - News)Boeing (NYSE: BA - News): ' ... but I am reiterating absolutely that Boeing is a buy, and the orders will trickle down. It's just that we don't have them right now.'Cisco (NasdaqGS: CSCO - News): ' ... reported a blowout quarter tonight - as we've been predicting endlessly, and finally it happened... Remember, he did announce the $5 billion buyback at the end of his last quarter... buy, buy, buy - CSCO, even above $31. 'Level 3 Communications (NasdaqGS: LVLT - News)Garmin (NasdaqGS: GRMN - News): ' ... conference call for GRMN was amazing. The guide up was huge... GRMN's a keeper! Stay with GRMN - buy, buy, buy! 'Crocs (NasdaqGS: CROX - News)Under Armour (NYSE: UA - News)Temple Inland (NYSE: TIN - News): ' ... Temple Inland remains my favorite, courtesy of Carl Icaan and his restructuring. '
Bearish calls:
Zebra Technologies (NasdaqGS: ZBRA - News): 'I personally think that the bar code business has peaked. It's just not exciting to me. I don't want to be in it. Don't buy, don't buy.'Haynes International (NasdaqGM: HAYN - News): '... didn't report a good quarter..., is the aerospace bull market caput?... I think that there's a big lag between when the (Boeing) Dreamliner gets built, and all of these stocks blow away their numbers... Now it's still painful ... I think this group is going to be on hold, and the better side is the defense stocks right now..'.Starbucks (NasdaqGS: SBUX - News): ' ... I want good, solid growth... and consistent growth... and SBUX can no longer give that to me. Don't buy, don't buy. At $23, I'll pull the trigger.'Juniper Networks (NasdaqGS: JNPR - News): 'I believe that CSCO is better than JNPR. I am telling you - sell, sell, sell - JNPR.'Weyerhauser (NYSE: WY - News): 'They can't deliver.'
Published By SeekingAlpha

Labels: APA, BA, CHK, CSCO, DCX, FLR, GRMN, HLX, Jim Cramer, JNPR, Lightning Round, LVLT, LVS, Mad Money, MDR, SBUX, SGR, SLB, WYNN, ZBRA

Eagle Bulk Shipping (NasdaqGS: EGLE - News): 'This company with an 8% yield is going higher. I've got to say, you've got a good one.'Crocs (NasdaqGS: CROX - News)Under Armour (NYSE: UA - News)Verizon (NYSE: VZ - News): ' ... I'd much rather own ... Verizon (than Smith Micro Software).'Morgan Stanley (NYSE: MS - News)WPP Group (NasdaqGS: WPPGY - News): 'Really terrific. ... I am going to endorse it. ... Europe's doing much better than America.'Barnes Group (NYSE: B - News): 'I endorse it. I think you should buy some Barnes.'BE Aerospace (NasdaqGS: BEAV - News)Cnooc (NYSE: CEO - News): 'I am going to get behind any oil stock in the world. ... I like your Cnooc. I think that goes higher.'PetroChina (NYSE: PTR - News): 'I have liked PetroChina more than this (Cnooc) ... "I am going to get behind any oil stock in the world.' ValueClick (NasdaqGS: VCLK - News): 'It's been stalled here. ... At $30, I still like it. ... I'm staying bullish.'Goldman Sachs (NYSE: GS - News): ' ... pull the trigger on Goldman Sachs.'Nastech Pharmaceutical (NasdaqGM: NSTK - News): 'To back away from the stock at $11 is a major league mistake ... going to go much higher.'Celgene (NasdaqGS: CELG - News)Helmerich & Payne (NYSE: HP - News): 'This is one of the most unsung drilling oil and gas stocks that there is. ... This one's got a lid on it because it's too domestic. ... You know what? I think HP is cheap. ... How could a 30% grower only have a 10 multiple? The answer is the market's wrong.'Chesapeake Energy (NYSE: CHK - News) Mastercard (NYSE: MA - News): 'I actually prefer MasterCard on a pullback than Discover right here.'
Bearish calls:
Starbucks (NasdaqGS: SBUX - News): 'This is a quality control problem. ... Basically, you can't grow that fast. I remain in the Don'tBuy mode.'Heelys (NasdaqGM: HLYS - News): 'I am bearish on Heelys.'Smith Micro Software (NasdaqGM: SMSI - News): 'I think you've got too much hype here. I've got to throw the flag. ... It's a decent story ... Your stock is too speculative.'Discover Financial Services (NYSE: DFS - News): 'I'm not behind Discover.'The Blackstone Group (NYSE: BX - News): 'I'm not a fan of Blackstone.'Boston Scientific (NYSE: BSX - News)Align Technology (NasdaqGM: ALGN - News)

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Labels: B, BEAV, CELG, CEO, CHK, CROX, EGLE, GS, HPQ, Jim Cramer, Lightning Round, MA, MS, NSTK, PTR, UA, VCLK, VZ, WPPGY

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
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. Historically, these stocks have provided traders with a significant edge.
Nokia (NYSE:NOK) & Cephalon (NasdaqGS:CEPH). NOK's PowerRating is 6, and CEPH'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.
Peabody Energy (NYSE:BTU) & Chesapeake Energy (NYSE:CHK). BTU's PowerRating is 7, and CHK's PowerRating is 6.
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.
Reliance Steel (NYSE:RS). RS's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
DexCom (NasdaqGM:DXCM). DXCM's PowerRating is 2.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Intuit (NasdaqGS:INTU). INTU's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: BTU, CEPH, CHK, DXCM, Hot Stocks, INTU, NOK, RS

Bullish calls:
Penwest Pharmaceuticals (NasdaqGM: PPCO - News): ' ... had no idea that stock had fallen all the way to $12. They have got some great technology ... that's a good spec there. Remember, it is just a speculation though ... they're losing big money and they don't have a lot of revenues either.'Gildan Activewear (NYSE: GIL - News): ' ... it is a momentum name ... But, understand. Even though it's cheap on a multiple basis, it's had a big run. Maybe you buy a little, and then you wait for a little pullback.'GOL Linhas Areas Inteligentes (NYSE: GOL - News): ' ... they stole Varig. It's a Brazilian airline. It's up $4 since we mentioned it at $28-29. That's not enough. The stock's going to $40. $33... pick up $7. That's what I like!'Chesapeake Energy (NYSE: CHK - News): 'Natural gas is back! ... Aubrey McClennan [CEO] is one of the best. I am saying that CHK goes higher!'Fannie Mae (NYSE: FNM - News): 'Now here is a stock I haven't talked about enough ... When the sub-prime loan market went kerplooey... FNM ... decided to buy $20 billion worth of liquidity ... FNM is not expensive, until it gets to $80 a share, and it's at $64.'Celgene (NasdaqGS: CELG - News): ' ... dramatically undervalued on the Revlamid news from the weekend,'Gilead Sciences (NasdaqGS: GILD - News)Fuel Tech (NasdaqGM: FTEK - News): ' ... I thought there was more than a 20% gain there, so I can't tell you to take some off, when I told you there was more to gain ... I'm not bailing. You shouldn't either.'Herbalife (NYSE: HLF - News): 'I became convinced that that company is not just a fly-by-night supplement company, but a company that really has a wellness principle.'Crocs (NasdaqGS: CROX - News) ' I think that CROX is a company that you can own until everyone has decided that every analyst and his brother has recommended.'Genesis Lease (NYSE: GLS - News): 'If you need to be in bundled aircraft, it's Genesis Leasing.'Boeing (NYSE: BA - News): 'If you've got to be in aerospace, it's Boeing.'Tesco (NasdaqGS: TESO - News): 'I have been working like a bow-wow to try to figure out when do we decide to get off the oil service game... and the answer is not yet. This group is still cheap!'Halliburton (NYSE: HAL - News)Input/Output (NYSE: IO - News): 'Seismic data. You know I like that very much. I think IO has been slighted by Mad Money.'Trinity Industries (NYSE: TRN - News): ' ... it's still so darn cheap, I don't think it can hurt you. ... We're under-railcarred in this country.'Marathon Oil (NYSE: MRO - News): 'MRO - even at $128 - is still cheap! Unbelievable! I'm pulling the trigger here for half the position, and then let it come in.'Haynes International (NasdaqGM: HAYN - News): 'I'm staying long it. We liked it 20 points below this.'Merit Medical Systems (NasdaqGS: MMSI - News): 'I'll buy that one too.'Cepheid (NasdaqGM: CPHD - News)Dynegy (NYSE: DYN - News): 'Oh man, down here at $9.50. C'mon let's pull the trigger. Bruce Williamson, CEO. Best in show.'
Bearish calls:
AirTran Holdings (NYSE: AAI - News): 'No can do. I'm only using one airline right now, particularly with oil going up...and that is GOL Linhas.'Mylan Laboratories (NYSE: MYL - News): 'No, can't go there... I think these generic guys have never made me a lot of money.'Usana Health Sciences (NasdaqGS: USNA - News): 'too high risk for me.'JetBlue Airways (NasdaqGS: JBLU - News): 'No! Sell, sell, sell! Another airline that's problematic.'
Published by SeekingAlpha

Labels: BA, CELG, CHK, CROX, FNM, FTEK, GIL, GILD, GLS, GOL, HAL, HLF, IO, Jim Cramer, Lightning Round, MRO, PPCO, TESO, TRN

Bullish:
Chesapeake Energy (NYSE: CHK): 'The company is mostly levered to natural gas... is CHK! Don't you dare sell CHK. That stock is going higher!'Viacom (NYSE: VIA-B): 'You want to play summer box office?... You buy Viacom which, although the news reports weren't that positive, that's wrong! That was a great quarter... VIA-B is your play my friend.'Texas Instruments (NYSE: TXN)Qualcomm (NasdaqGS: QCOM)Protective Life (NYSE: PL): 'PL is solid too... I like that! ...Why couldn't PL get a bid?!... Let's see, the book value here is $34 bucks.... These can go out at two times book. That would put this stock at almost $70. It's at $50. I want to buy that!'MetLife (NYSE: MET)Prudential Financial (NYSE: PRU)
Neutral calls:
Scientific Games (NasdaqGS: SGMS): 'I believe it's a decent stock. It's just not as great as I thought... It needs more momentum to break out from this level.'
Bearish calls:
Regal Entertainment (NYSE: RGC): 'I would have said that the chance has already come and gone ... It's run too much.'LSI Logic (NYSE: LSI): 'LSI, man. That was an awful quarter.'Republic Airways (NasdaqGS: RJET): 'Cheap. Cheap stock, but I am no longer recommending any of the airlines. They have had a really big run.'Yahoo! (NasdaqGS: YHOO): ' ... as long as Terry Semel's there - he's the CEO - you and I are not going to make any money... As a matter of fact, it's a dog. The board ought to get electroshock therapy.'Given Imaging (NasdaqGM: GIVN)Sysco (NYSE: SYY): 'I went through that conference call. I have got to tell you, they did not deliver. Sell, sell, sell!... Let's let it pull back to under $30, and then we'll pull the trigger.'Coach (NYSE: COH): 'I think you buy the handbags. The stock, I don't want to touch here. That quarter was not that great ... when it gets below $43, we can pull the trigger again.'
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Labels: CHK, COH, Jim Cramer, Lightning Round, LSI, Mad Money, MET, PL, PRU, RGC, SGMS, SYY, TXN, VIA-B, YHOO

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Crocs (NasdaqGS:CROX - News) beat earnings on Thursday afternoon, with $0.61 EPS compared to a consensus of $0.49 EPS. CROX's PowerRating is 4.
Chesapeake Energy (NYSE:CHK - News) beat earnings on Thursday afternoon, announcing $0.87 EPS over expectations of $0.78 EPS. CHK's PowerRating is 3.
Alliant Techsystems (NYSE:ATK - News) reports earnings on Friday before the bell; watch for $1.43 EPS. ATK's PowerRating is 5.
Eastman Kodak (NYSE:EK - News) should report -$0.02 EPS before the market opens on Friday. EK's PowerRating is 5.
When KBR Incorporated (NYSE:KBR - News) announces earnings before the bell tomorrow morning, watch for $0.23 EPS. KBR does not have a PowerRating due to its short trading history.
Analysts are watching for Public Service (NYSE:PEG - News) to report $1.15 EPS on Friday morning. PEG's PowerRating is 6.
Weyerhaeuser (NYSE:WY - News) should report $0.37 EPS when the company reports earnings tomorrow morning. WY's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: ATK, CHK, EK, Hot Stocks, KBR, PEG, WY

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Chesapeake Energy (NYSE:CHK - News) beat earnings Thursday after the close, with $0.90 EPS over an expected $0.76 EPS. CHK's PowerRating is 4.
Cabela's (NYSE:CAB - News) beat earnings on Thursday after the bell, announcing $0.80 EPS over a consensus of $0.77 EPS. CAB's PowerRating is 5.
Clear Channel Communications (NYSE:CCU - News) announces earnings on Friday before the open, with analysts watching for $0.41 EPS. CCU's PowerRating is 6.
Lowe's (NYSE:LOW - News) is expected to announce $0.37 EPS on Friday before the bell. LOW's PowerRating is 6.
Mediacom Communications (NasdaqGS:MCCC - News) announces quarterly earnings Friday morning; look for -$0.07 EPS. MCCC's PowerRating is 5.
Analysts are looking for Nicor (NYSE:GAS - News) to announce $0.98 EPS on Friday morning. GAS's PowerRating is 6.
When Weingarten Realty (NYSE:WRI - News) reports quarterly earnings tomorrow morning, watch for $0.72 EPS. WRI's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: CAB, CCU, CHK, GAS, Hot Stocks, LOW, MCCC, WRI

Bullish calls:Crocks (NasdaqGS: CROX): ' ... take advantage of the way the bears pushed down Crocs.'Under Armour (NYSE: UA - News) InterDigital (NasdaqGS: IDCC): 'I'm blessing. ... I think it's OK. It is at a 52-week high.'Yamana Gold (NYSE: AUY - News): '52-week high I am not backing down. We caught a double.'Texas Roadhouse (NasdaqGS: TXRH): 'JPMorgan stepped up to the plate today and they agree that Texas Roadhouse should no longer be the punching bag that it's been. ... It's going to 20.'Transocean (NYSE: RIG - News)Mastercard (NYSE: MA - News): 'People who sold MasterCard are going to be dead wrong. ... MasterCard at 107, two thumbs up, way up.'Halliburton (NYSE: HAL - News): 'What I am sticking with is, on the low valuation [Halliburton and Transocean.]'NYSE Group (NYSE: NYX - News): 'Indeed, my stock of the year. ... Indeed when that merger is done ... the Euronext deal ... the numbers will go up ... And I am proud to say that I backed up the truck when it went into the 80s. Did you?'Onyx Pharmaceuticals (NasdaqGM: ONXX): '... I think people feel Onyx Pharma has run too much. ... I think it can get a bid.'BEA Systems (NasdaqGS: BEAS)Devon Energy (NYSE: DVN - News)Marvell Technology (NasdaqGS: MRVL)
Bearish calls: Delia's (NasdaqGM: DLIA): 'Too Tough.'Goldcorp (NYSE: GG - News): 'I used to love GG, then they did that really bad merger.'Helix Energy (NYSE: HLX - News)New River Pharmaceuticals (NasdaqGM: NRPH)Chesapeake Energy (NYSE: CHK - News)

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Labels: AUY, BEAS, CHK, DVN, GG, HAL, HLX, Jim Cramer, Lightning Round, MA, Mad Money, MRVL, NYX, ONXX, RIG, UA

Summary: Barron's interviews Art Smith, head of John S. Herold energy research firm. Some key points:
Big companies have essentially stopped exploration, using profits in stock-buybacks and dividends. Eventually large companies will start pursuing those companies that hold undeveloped reserves and require capital.
Natural gas prices are low in comparison to oil. Among the most undervalued companies: Anadarko Petroleum Corp. (NYSE: APC - News), Chesapeake Energy Corp. (NYSE: CHK - News), Apache Corp. (NYSE: APA - News), EnCana Corp. (NYSE: ECA - News) and Canadian Natural Resources Ltd. (NYSE: CNQ - News).
He's 'crazy' about oil-sands reserves, and is 'absolutely convinced' big players Suncor Energy Inc. (NYSE: SU - News) and Nexen Inc. (NYSE: NXY - News) will be acquired by big companies. "Buy some and put it in your kids' or your grandkids' account and just forget about it."
He recommends writing covered calls on cheap stocks, specifically ConocoPhillips (NYSE: COP - News) and Royal Dutch Shell .
There is a re-emergence of the master limited partnership [MLP}. Upstream companies that stand to benefit from the cost-depletion tax advantage: Linn Energy LLC (NasdaqGM: LINE), EV Energy Partners (NasdaqGS: EVEP), Kinder Morgan Energy Partners L.P. (NYSE: KMP - News), Enterprise Products Partners L.P. (NYSE: EPD - News) and Plains All American Pipeline L.P. (NYSE: PAA - News).
Oil prices: I'm in the camp that says we could easily have $80 oil this year.
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Labels: APA, APC, CHK, CNQ, COP, ECA, EPD, EVEP, KMP, LINE, NXY, PAA, SU

Micron (NYSE: MU - News), Broadcom (NasdaqGS: BRCM), Marvell (NasdaqGS: MRVL): In spite of upgrades from JP Morgan and Deutsche Bank, Cramer would stay away from semiconductors and would not buy tech stocks until the second half of the year. He points to the fact that MU is down 3% and a 1.2% decline in the SOX index of chip stocks as evidence that investors should avoid the sector now. Although he might see the logic of buying Broadcom, given its fall, and Marvell, Cramer cautions that these are strictly long-term investments.
Chesapeake (NYSE: CHK - News), Marathon Oil (NYSE: MRO - News), Agco (NYSE: AG - News): Cramer says that CHK is "not my cup of tea" because management has "financed the heck out of it." He doesn't see CHK moving, but predicts that MRO is going up. Finally, on AG's rally, Cramer says that bullishness on ethanol can obscure AG's terrible fundamentals.
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Labels: AG, CHK, Jim Cramer, Jim Cramer's Stop Trading, MRO, MRVL, MU

Cramer said glut talk from big memory chipmaker Micron (MU) points up the futility of trying to buy tech out of season. Cramer said it's unwise to buy tech stocks till the latter end of the year, because of the way Wall Street works. Thus he said he's not surprised to see Micron down 3% and the SOX index of chip stocks down 1.2% even in the wake of upgrades from JPMorgan and Deutsche Bank.
Cramer said he could "make a case" for buying Broadcom (BRCM), given how far the stock has fallen, and he owns Marvell (MRVL) for his charitable trust. But he said those plays are strictly long-term holdings, based on how poor results have been and the seemingly low risk that they can get any worse.
Cramer doesn't like gas driller Chesapeake (CHK), saying it's "not my cup of tea" because management has "financed the heck out of it." Cramer said while Chesapeake goes from $29 to $29 to $29, Marathon Oil (MRO) is moving ahead.
Cramer also said the rally in Agco (AG ) shows that the bull case on ethanol and agriculture can overcome even the most pathetic, quarter-missing fundamentals.
Published By TheStreet.com

Labels: AG, BRCM, CHK, Jim Cramer, Jim Cramer's Stop Trading, MRO, MRVL, MU

Bullish calls:
Yamana Gold (NYSE: AUY - News)Freeport-McMoRan (NYSE: FCX - News): 'I'm endorsing it. Let's buy some.'Cemex (NYSE: CX - News): 'They want to be a monopolist when it comes to cement. They want to own North America, and you know what? They're going to do it. Cemex even right here still goes higher.'Microsoft (NasdaqGS: MSFT): ' I have morphed into a Steve Ballmer fan. ... The stock is going to be stalled right here, but I do like it.'Hewlett-Packard (NYSE: HPQ - News)Comcast (NasdaqGS: CMCSA): 'I'm going to send you to Brian Roberts at Comcast.'Level 3 Communications (NasdaqGS: LVLT)Adobe Systems (NasdaqGS: ADBE): 'People think I'm wrong on Adobe. ... Adobe is stalled; that was a great quarter. ... I just know that it is biding time; 38 is a way station going to 45.'Halliburton (NYSE: HAL - News): 'Halliburton's quarter was good. They're buying back a huge amount of stock. 'mon back [buy]'Volcano (NasdaqGM: VOLC): 'Medical devices rock.'United Technologies (NYSE: UTX - News): '...back and bigger than ever. Heating, ventilation and air conditioning.'American Standard (NYSE: ASD - News)
Bearish calls:
American Oriental Bioengineering (NYSE: AOB - News): '...this stock is running too far. I want to do a Don'tBuy. Maybe if it comes down...'Anixter International (NYSE: AXE - News)Chesapeake Energy (NYSE: CHK - News): 'Problematic ... every time it goes up to 32, 33, we get that inevitable selling.'Mannatech (NasdaqGS: MTEX)AnnTaylor Stores (NYSE: ANN - News)

Labels: ANN, AOB, ASD, AUY, AXE, CHK, CX, FCX, HAL, HPQ, Jim Cramer, Lightning Round, Mad Money, UTX

I stopped out of my Diamonds Trust Series 1 ETF (AMEX: DIA - News) $122 puts at .55 (up 57%), DIA $123 puts for $1 (up 67%) and NASDAQ 100 Trust Shares ETF (NASDAQ: QQQQ - News) $44 puts at .70 (up 133%) on the upturn (as I was enthusiastic). But then, as I was left unprotected, I let myself get shaken out of a some calls on the turn down.
We finished up the week with a bang, and we've had a streak of good calls, but I don't delude myself that I am either Lou Gehrig or Joe DiMaggio, and you never know when your luck will turn, so I took a lot off the table into the weekend (and I was very spooked by the mornings whiplash move!):
American Express Company (NYSE: AXP - News) Jan $60s hit our price and seemed safe on the way up at $1.30.
Bank of America Corp. (NYSE: BAC - News) was a no-trade, opening too high.
Best Buy Co. Inc. (NYSE: BBY - News) Jan $52.50 was very tempting back at $3 today but I wasn't feeling that adventurous (we just sold them for $4.30 on Tues!). I regret not rebuying now since I went to one last night (Fri) and it was a zoo!
Boston Scientific Corp. (NYSE: BSX - News) Jan '08 $17.50s still aren't moving (still $2.50) but I'm considering additional positions at this price and selling the Jan $17.50s for .50 as an income producer as 20% a month is a pretty good income! I should probably just do it with the ones I have but I really think this thing's going to bounce back at this point -- which is what I'm sure the 83,000 January callers are thinking too...
We added the Chesapeake Energy Corp. (NYSE: CHK - News) Jan $32.50s for $1.05 (yes calls) as additional cover to protect profits over the weekend on our remaining oil puts.
I shorted more ConocoPhillips (NYSE: COP - News) out of principal with the Jan $70 puts at $1.85, but a big spike scared me into selling the $70 puts for .65 as a small cover.
DALRQ (Delta Air Lines) Jan '08 $2.50s jumped up a dime to .20 (up 300%) so I took half off the table. As I said at the beginning, these could end up worthless so effectively the remainder is a free ride with a year to play out.
eBay Inc. (NASDAQ: EBAY - News) Dec $32.50s were taken off the table at .45 (down 25%) as it looked too weak to keep after the Cramer pump and yesterday's drop were just not worth holding with expiration looming. We still have the Jans and a hopeful attitude!
Corning Inc. (NYSE: GLW - News) Feb $22.50s came in at .80 but if they can't break $21 I'm out quick!
I don't know why Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR - News) went down all day, and I didn't stick around to find out -- so I gave up at $52 (up 25%).
It looks like I will get called away by those Google Inc. (NASDAQ: GOOG - News) $370s I sold for $40 with a just a 21% profit (the other guy has a triple!) 8-(
Intel Corp. (NASDAQ: INTC - News) finally came off the watch list as I said at 10:01 (with the stock at $20.61) "Watch out for INTC -- they can save the SOX by themselves with a .25 gain." I grabbed the Jan $22.50s for .25 and the stock did go up to $20.85 but pulled back to finish at $20.68.
Jos. A Bank Clothiers Inc. (NASDAQ: JOSB - News) served it's purpose (getting a discount on the Jan $30s) and we took out our July $30 caller for $4.50 (up .10) and sold the stock for $30.50 for a $1.11 total gain, so I'm applying the $1 credit (allowing for commissions) to the Jan $30 puts (that were all I ever wanted in the first place) to lower the basis to a very nice $1! I was thrilled to be able to take out of the Julys after earnings got away from me. It is very important to remember why you took a position (one of the reasons I first started keeping a blog!), as I said on Monday, "the options are outrageous and I refuse to pay for them -- so I'm going to let someone else buy them for me: I take the stock for $29.69, sell the ridiculous July $30s for $4.40 and buy the Jan $30s for $1.75." Mission Accomplished!
Eli Lilly & Co. (NYSE: LLY - News) Apr $55s came in at $2, hopefully we didn't jump the gun on this but they were $2.50 on Tuesday...
Yes, I'm a MOToholic (Motorola Inc. (NYSE: MOT - News))! I picked up the Jan $22.50s for .40, which they held despite a poor finish.
Microsoft Corp. (NASDAQ: MSFT - News) took a huge jump at 2:30, I think because there was a court decision cracking down on software fraud that should net them a healthy profit boost right when Vista is coming out. A huge buy was made at the close for $20.40 so we may need to get on the Mo train on Monday!
got scared out of Netease.com Inc. (NASDAQ: NTES - News) Mar $17.50s at $2.15 (up 16%) on the morning drop.
We focused on the Oil Service HOLDRs ETF (AMEX: OIH - News) $145 puts right out of the gate and picked them up on the turn at $1.20, stopped half out quickly at $1.55, reducing the remaining basis to a comfortable .85, and took them off the table at $1.20 ( up 41%). We went back in about 90 minutes later for $1.20 again (what the heck, it worked once) and I kept half at close to reduce the remaining basis to $1.
optionsXpress Holdings Inc. (NASDAQ: OXPS - News) Jan $30s pushed me out in the morning for .90 (down .10) but rebounded very nicely once I was gone!
Research In Motion Ltd. (NASDAQ: RIMM - News) bounced back up and triggered the sale of the other half of the Jan $130 puts for $9.80 for a $9 average sale and a $1 spread on the full trade!
Suncor Energy Inc. (NYSE: SU - News) $80 puts were picked up for $1.40 but I got out even (too many puts for safety). They finished at $1.70 for those who stayed in.
I was stopped out of Toyota Motor Corp. (NYSE: TM - News) Jan $120s at $2.55 (up 34%).
We decided a double was too much to risk on the Valero Energy Corp. (NYSE: VLO - News) $55 puts, exited at .90 (up 100%).
At 9:53 I said, "If this is the best XOM can do on an .80 rise in crude it may be time to sell those calls already!" I was right, but I held on to them for the protection over the weekend, which allowed me to hold puts through the dips.
I cannot believe I'm saying this (after 2 months of rolling and doubling) but I took the rest of the XOM $75 puts off the table at .65, up 141% (because we applied the profit from the first half to the basis on the remainder)! Remind me never to do that again -- way too stressful... Interestingly, despite the drop, my protective Apr $80s went up .20 to $2.45, as I said when we bought them, "I think these will be slow to fall (look how many die hard oil bulls there are)."
In summary, we closed 30 positions this week (including 12/1 because of the month roll) for an average gain of 70% on a low average hold of 6 days as we've taken a lot of day trades in this choppy market.
The only losers were EBAY, Las Vegas Sands Corp. (NYSE: LVS - News) and OXPS, and none of them hurt too bad, and we had 9 doubles out of our 27 winners.
Our open portfolio is in spectacular shape with 51 open positions that are already also up 70% after 17 days(average). This of course includes ridiculous gains by DALRQ (400%), MGM Mirage (NYSE: MGM - News) (631%) and Station Casinos Inc. (NYSE: STN - News) (1,375%), and eliminating those gains brings us down to 40%, but then I should eliminate my 3 wipeouts as well which would bring us back to a more realistic 45% -- but that's still pretty darn good!
-Phil Davis

Labels: AXP, BAC, BBY, BSX, CHK, COP, DIA, Ebay, GLW, GMCR, GOOG, INTC, JOSB, LLY, MOT, MSFT, QQQ, RIMM, stock options

3M Co. (NYSE:MMM - News) was downgraded to neutral from overweight at Prudential Equity Group, which said it will take some time for the stock to regain its valuation premium. Fears over the company's optical film business have been extinguished by strong third-quarter figures, but convincing investors to pay a premium for the company as economies in Europe and North America slow could take more time than originally anticipated, Prudential said.
Agnico-Eagle Mines Ltd. (NYSE:AEM - News) was downgraded to neutral from buy at Merrill Lynch, which cited valuation. The broker said Agnico-Eagle is trading close to the upper end of the valuation range within which North American gold producers have historically traded. "Despite this downgrade, we still believe that the company has excellent long-term growth prospects," Merrill Lynch said. "Agnico-Eagle is in the midst of developing four gold projects that should convert the company into a multi-mine operator allowing the company to more than triple gold output."
American Ecology (NASDAQ:ECOL - News) said it sees 2007 earnings of 92 to $1.02 per share. The waste-services company also backed its view for 2006 earnings of 85 to 90 cents per share.
Biopure Corp. (NASDAQ:BPUR - News) agreed to sell 25 million new shares of common stock and warrants to acquire an additional 25 million new shares to underwriters. The price for one share and one warrant is 64 cents, the company said. The exercise price of each warrant is 80 cents. The transaction is expected to close on Dec. 13, resulting in net proceeds to Biopure of $14.4 million, assuming no warrant is exercised.
Central Garden (NASDAQ:CENT - News) said fourth-quarter net earnings fell to $6.02 million, or 25 cents a share, from $6.72 million, or 31 cents a share, in the same period last year, as expenses and income taxes rose. Excluding $9 million in increased brand building and strategic work, the Walnut Creek, Calif.-based producer and marketer of garden and pet supplies posted per-share earnings of 49 cents.
Chesapeake Energy Corp. (NYSE:CHK - News) is launching a public offering of 30 million shares of its common stock. The Oklahoma City-based natural gas producer said it has granted the underwriter, Deutsche Bank Securities, a 30-day option to buy up to 4.5 million additional shares to cover any over-allotments.
Consolidated Water Co. (NASDAQ:CWCO - News), which builds and operates seawater desalination plants, said it has priced a public offering of 1.5 million shares at $24.90 a share. The company said it expects the offering to generate net proceeds of $34.9 million. It added it expects to use the proceeds to repay existing debt as well as possible future acquisitions and investments.
Countrywide Financial (NYSE:CFC - News) shares slumped after Stifel Nicolaus downgraded shares of the mortgage giant to hold from buy. "Recent developments in the mortgage industry have significantly increased the risks in the sector," Stifel Nicolaus said in a note to clients. Analysts cited severe credit deterioration, decreased secondary market appetite and tightening underwriting standards. "We expect trends to worsen given our belief that housing has yet to bottom or even fully impact credit trends," analyst Chris Brendler said.
Shares of Duckwall-ALCO Stores Inc. (NASDAQ:DUCK - News) dropped after the Abilene, Kansas-based general merchandise retailer posted a wider loss for the third quarter. For the three months ended Oct. 29, the company lost $648,000, or 18 cents a share, compared to an equivalent year-ago loss of $187,000, or 5 cents a share. Sales from continuing operations rose 9.3% in the latest quarter to $110.1 million from $100.7 million in the same period a year earlier. Duckwall-ALCO said its gross margin declined in the quarter to 31.2% due to higher freight costs, lower margins on higher sales at its fuel centers, and higher than expected degree of seasonal markdowns for its horticulture and patio merchandise products.
Genta (NASDAQ:GNTA - News) shares dropped after the Berkeley Heights, N.J.-based biopharmaceutical company said a Phase III trial of chemotherapy with or without Genasense, conducted in older, previously untreated patients with acute myelogenous leukemia, failed to meet its primary endpoint of overall survival.
GTx Inc. (NASDAQ:GTXI - News) said a Phase II trial of its ostarine selective androgen receptor modulator met its primary endpoint of increasing lean body mass and a secondary endpoint of improving functional performance. Ostarine continued to demonstrate a favorable safety profile, with no serious adverse events reported, it added. GTx plans to initiate a Phase IIb ostarine clinical trial for cancer cachexia in the summer of 2007. GTx also intends to evaluate the ability of ostarine to treat chronic disease indications including end stage renal disease muscle wasting, frailty and osteoporosis. GTx has reacquired full rights to develop and commercialize andarine and all backup compounds previously licensed to Johnson & Johnson unit Ortho Biotech Products on a mutual agreement to terminate the deal
New Century Financial Corp. (NYSE:NEW - News) said its total mortgage loan production was $4.5 billion, a drop of 11.8% from the equivalent year-ago period. On a sequential basis, November's production slid 10% from October levels. "The decline in our loan production volume in November was in line with our expectations, particularly in light of overall mortgage market declines this quarter," said Brad Morrice, the company's president and CEO, in a statement.
PG&E Corp. (NYSE:PCG - News) was downgraded to neutral from overweight at J.P. Morgan, citing valuation.
Shares of Questcor Pharmaceuticals (AMEX:QSC - News) shares fell after the company said it's received definitive commitments from unaffiliated institutional investors to purchase 10.51 million shares of its common for $1.20 each. In addition, the Union City, Calif.-based Questcor said certain insiders have committed to purchasing 890,000 shares at $1.45 each.
Smith & Wesson Holding Corp. (NASDAQ:SWHC - News) reported second-quarter net earnings of $2.85 million, or 7 cents a share, compared with $692,377, or 2 cents a share, in the same period last year, on the back of strong firearms sales.
Shares of Sprint Nextel (NYSE:S - News) fell as Morgan Stanley analyst Simon Flannery said the company was at a "crossroads," with results falling below expectations set at the time of the Sprint-Nextel merger. "We see significant downside for the stock if management is not successful in stabilizing the business in the near term," Flannery said in a note to clients. He reiterated his underweight rating on the stock, and revised his price target from $18 at the end of 2006 to $19 at the end of 2007. "Recent comments by management appear to suggest that rising handset subsidies, tightened credit standards and increasing pre-paid competition will pressure fourth-quarter and early-2007 results, despite new handset launches and a re-branding campaign," Flannery added.
Unifi Inc. (NYSE:UFI - News) said it now expects its second-quarter earnings before income, taxes, depreciation and amortization to be less than half of its previous forecast of $10 million to $12 million. The company said a September drop in volume has continued.
Witness Systems Inc. (NASDAQ:WITS - News) said a special committee review found mistakes in the measurement dates of stock-option grants, although it did not find evidence of fraud or intentional misrepresentation.
Xilinx (NASDAQ:XLNX - News) said it now sees third-quarter sequential sales falling 2% to 5% due to weaker than anticipated turns business in November, particularly from communications customers. The company had expected a sequential increase of 2% to 5%.
Yum Brands (NYSE:YUM - News) was downgraded to market perform from outperform at Wachovia. The firm cited slowing sales momentum in the U.S. and a potentially significant sales impact related to the recent E. coli outbreak at some of the group's Taco Bell restaurants. Wachovia added Yum's KFC chain is facing tough sales comparisons over the next couple of quarters, though it added it still holds a favorable view on the group's international and Chinese operations.
By Michael Baron

Labels: AEM, BPUR, CENT, CFC, CHK, CWCO, DUCK, ECOL, GNTA, GTXI, Hot Stocks, MMM, NEW, PCG, QSC, S, SWHC, WITS, XLNX, YUM