Jim Cramer Blog

Buy Nokia (NOK), Jim Cramer said Thursday on CNBC's Stop Trading! segment.
Cramer likes the handset maker's buy of map company Navteq (NVT) and says Nokia is worlds ahead of rivals like Motorola (MOT). He said the stock's decline on the Navteq deal is a "buyable pullback."
Cramer also likes Capital One (COF), saying data from hard-hit California markets indicates that credit card defaults aren't likely to go through the roof. Cramer said he believes the stock is "done going down."
Cramer also likes Cisco (CSCO), saying it's better than Ciena (CIEN), which has just run up 10 points. Cramer would sell Ciena and buy Cisco right now.
Cramer says Bank of America (BAC) is cheap and going to $60 from $52, while talk of J.P. Morgan (JPM) CEO Jamie Dimon's excellence is "overblown."
Published By TheStreet.com

Labels: CIEN, COF, CSCO, Jim Cramer, JPM, MOT, NOK, NVT, Stop Trading

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.
A. O. Smith Corporation (NYSE:AOS - News). AOS's PowerRating (for Traders) is 6.
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.
Ciena Corporation (NasdaqGS:CIEN - News). CIEN's PowerRating (for Traders) 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.
Analogic (NasdaqGS:ALOG - News). ALOG's PowerRating (for Traders) is 8.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
LJ International (NasdaqGM:JADE - News). JADE's PowerRating (for Traders) is 4.
5+ Consecutive Up Days: These are stocks that have closed up 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 close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Advanced Medical Optics (NYSE:EYE - News). EYE's PowerRating (for Traders) 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.
Yahoo! (NasdaqGS:YHOO - News). YHOO's PowerRating (for Traders) is 3.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Advanced Semiconductor (NYSE:ASX - News). ASX's PowerRating (for Traders) is 2.
Published By TradingMarkets.com

Labels: Advanced Medical Optics, Advanced Semiconductor, ALOG, AOS, ASX, CIEN, Ciena Corporation, EYE, Hot Stocks, JADE, Yahoo Inc., YHOO

Here are 7 options to watch for Today.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Bear Stearns Oct 145 Calls (NYSE:BSC - News). BSC's PowerRating (for Traders) is 4.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Ciena Oct 40 Puts (NasdaqGS:CIEN - News). CIEN's PowerRating (for Traders) is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Lehman Brothers Oct 65 Calls (NYSE:LEH - News). LEH's PowerRating (for Traders) is 4.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Baidu.com Oct 210 Puts (NasdaqGS:BIDU - News). BIDU's PowerRating (for Traders) is 3.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Novell (NasdaqGS:NOVL - News). NOVL's PowerRating (for Traders) is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Bed Bath & Beyond (NYSE:BBBY - News). BBBY's PowerRating (for Traders) is 4.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Humana (NYSE:HUM - News). HUM's PowerRating (for Traders) is 5.
Published By TradingMarkets.com

Labels: BBBY, BIDU, BSC, CIEN, LEH, NOVL, stock options

Here are 7 options to watch for Tuesday.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Lennar Nov 35 Calls (NYSE:LEN - News)
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Ciena Oct 35 Puts (NasdaqGS:CIEN - News)
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Lehman Brothers Sep 60 Calls (NYSE:LEH - News)
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
CME Group Sep 500 Puts (NYSE:CME - News)
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
PetroChina (NYSE:PTR - News)
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
MoneyGram International (NYSE:MGI - News)
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Nucor (NYSE:NUE - News)
Published by TradingMarkets.com

Labels: CIEN, CME, Hot Stock Options, LEH, LEN, MGI, NUE, PTR

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Chico's FAS (NYSE:CHS - News) missed earnings on Wednesday afternoon, announcing $0.22 EPS versus an estimated $0.26 EPS. CHS's PowerRating (for Traders) is 4.
Ciena (NasdaqGS:CIEN - News) announces earnings on Thursday morning, with analysts looking for $0.30 EPS. CIEN's PowerRating (for Traders) is 5.
Del Monte (NYSE:DLM - News) reports earnings Thursday morning before the bell, so be watching for $0.01 EPS. DLM's PowerRating (for Traders) is 5.
When Freddie Mac (NYSE:FRE - News) reports quarterly earnings on Thursday morning, anaylsts will be watching for $0.81 EPS. FRE's PowerRating (for Traders) is 5.
Genesco (NYSE:GCO - News) reports tomorrow morning; watch for $0.30 EPS. GCO's PowerRating (for Traders) is 6.
Sears Holding (NasdaqGS:SHLD - News) and Tiffany (NYSE:TIF - News) both report on Thursday morning; SHLD expects $1.13 EPS, and TIF expects $0.35 EPS. SHLD's PowerRating (for Traders) is 5, and TIF's PowerRating (for Traders) is 5.
PowerRating (for Traders)s are courtesy of TradingMarkets.com

Labels: CHS, CIEN, DLM, FRE, GCO, Hot Stocks, SHLD, TIF

CEO Interview: Indra Nooyi, PepsiCo (NYSE: PEP - News)
"The stocks are saying there's going to be a slowdown, so it would be wise for you to prepare for it," said Cramer, and while he isn't urging people to sell all their cyclicals yet, he suggests its time to take some profits. He invited Pepsi CEO and chairman Indra Nooyi onto the show to discuss the company's great performance which she said was due to the company's diverse portfolio and stellar management. Nooyi added, in terms of financial resources, Pepsi is not constrained, and in terms of people-resources, North America is growing and the company's international business is "exploding." Cramer mentioned a Wall Street Journal story that Nestle turned down a merger with Pepsi because it considers the latter company junk-food laden. Nooyi pointed out Pepsi's expansion into non-carbonated beverages and healthy snacks and its production process which conserves energy and water. Cramer remarked Pepsi delivered better than expected numbers and is a the right stock to buy.
Remember the AlaMobile: Texas Instruments (NYSE: TXN - News), Nokia (NYSE: NOK - News), Ericsson (NasdaqGS: ERIC - News), Sony (NYSE: SNE - News), Analog Devices (NYSE: ADI - News), National Semiconductor (NYSE: NSM - News)
With back -to-school tech gadgets in production, Cramer discussed TXN which was hit by a selloff; "I don't care about the quarter," he said. "I care about the future, because that is where we're going to make our money." He would use the decline as a buying opportunity, and thinks its mobile business will energize TXN. He added NOK, ERIC, SNE, ADI and NSM are also doing well. Returning to TXN, Cramer predicts the next quarter will be excellent and adds the company has a "massive rest-of-world" exposure.

Go Cisco (NasdaqGS: CSCO - News)! with Juniper Networks (NasdaqGS: JNPR - News), and Ciena (NasdaqGS: CIEN - News)
Cramer discussed a Financial Times interview during which Cisco CEO John Chambers says he's more enthusiastic about the company than he has been in a decade and the internet is entering a second phase which should last 10 to 15 years. Since Cisco provides the "backbone" for many types of communcation, Cramer doubts Chambers is just trying to sell his company, and notes Cisco rivals are delivering but have less upside than Cisco. Cramer noted Cisco is not expensive, is below its 52-week high, has $22 billion in cash and is protected from the ailing economy with its big international exposure.
Mad Mail: Six Flags (NYSE: SIX - News), Men's Wearhouse (NYSE: MW - News)
Cramer told one viewer not to touch financial stocks. He said he doesn't like SIX's balance sheet, and added the stock will do badly if the weather is not good. He told another mailer he doesn't like Men's Warehouse.
Published By SeekingAlpha

Labels: ADI, CIEN, CSCO, ERIC, Jim Cramer, JNPR, Mad Money, MW, NOK, NSM, PEP, SIX, SNE, TXN

Lehman Brothers (NYSE: LEH), Goldman Sachs (NYSE: GS), Bear Stearns (NYSE: BSC), Gilead (NasdaqGS: GILD), Hologics (NasdaqGS: HOLX), Medco Health (NYSE: MHS), Cisco (NasdaqGS: CSCO), Level 3 (NasdaqGS: LVLT), Garmin (NasdaqGS: GRMN), Ciena (NasdaqGS: CIEN), Chicago Bridge and Iron (NYSE: CBI), Allegheny Tech (NYSE: ATI)
Cramer called LEH, GS and BSC "premium franchises" and would "load the boat up." He feels LEH has been given unfair estimate cuts and GS trades at a price-to-earnings multiple not worthy of even a "crummy plastics company." He also likes Gilead, Hologics, which he recently purchased, and Medco Health, which rose $3 on a federal contract and dropped down again. Other picks include Cisco, "the biggest percentage gainer in the S&P," LVLT, a "speculative fave," Ciena and Garmin. Finally, Cramer added CBI and ATI, his 2006 stock of the year, to the list. However, he would buy none of these picks if the four-and-a-halfs of 5/17 or the Bellweather bond continues its descent. It moved down from $100 to $94 on Thursday, and a lower price means a higher yield and a more attractive bond market. However, if it increases to $96-$97, Cramer would still be bullish on the above-mentioned stocks.
The Soda Ash Wars: FMC Corp. (NYSE: FMC)
Rumors the Chinese government is considering an end to tax rebates for their soda ash exporters is good news for FMC, which is the second largest producer of soda ash, a substance used to make such diverse items as glass, cleansers, film and bricks. However, Cramer emphasizes this is just a rumor, and would buy the stock down, since it has dipped since its recent spike. FMC uses a cheaper production process than that of the Chinese, it has pricing power because it is part of a cartel, and its agricultural chemical business is "incredibly strong," says Cramer.
Major Miner: Sterlite Industries
Sterlite, which will trade under the symbol SLT, is India's largest mining company, has "steroidal growth," and has China close by as a huge consumer. Sterlite has a 42% market share in copper, along with some aluminum, and is part of an "unfair" zinc duopoly. Cramer likes privatized companies like Sterlite because the government doesn't want "the deal to blow up in their voters' faces, so they're all priced below what they should be." He suggests buying the stock at a discount, since he expects it to go up, and sets the maximum entry point at $14 with an exit point at $20.
CEO Interview: Gary Butler, Automatic Data Processing (NYSE: ADP)
Gary Butler discussed ADP's the recent $2 billion spinoff of its brokerage business which leaves "a faster growth business, which is very focused and which we think will give us a tremendous return on management." He added; "We operate in a huge market where there is $80 billion of opportunity between the U.S. and globally, so we think the appreciation for our shareholders will be much stronger." With its consistent cash surplus, ADP will continue its buybacks and dividend increases, said Butler and when Cramer asked if ADP would go private, Butler said he would prefer to return value to shareholders rather than to private equity firms; "When you have a company that grew EPS 25% last year and will be over 20% this year ... and you can continue to grow the share price, I think we can deliver more long-term value by staying the course," Butler said.
Published By SeekingAlpha

Labels: ADP, ATI, BSC, CBI, CIEN, CSCO, FMC, GILD, GRMN, GS, HOLX, Jim Cramer, LEH, LVLT, Mad Money, MHS

Symbol
Name
Last Trade
Change
Volume
Related Info
DNDN
DENDREON CORP
9.25 12:29PM ET
2.51 (37.24%)
72,333,726

CRTX
CRITICAL THERAPEUTIC
3.47 12:28PM ET
0.81 (30.45%)
11,923,711
TCHCZ
21ST CENTURY HLDG WT
3.7500 9:30AM ET
0.6601 (21.36%)
192

QTWW
QUANTUM FUEL SYS
1.75 12:29PM ET
0.29 (19.86%)
2,751,235

OCCX
OCCULOGIX, INC.
1.22 12:23PM ET
0.21 (20.79%)
239,214

PCYC
PHARMACYCLICS INC
3.48 12:27PM ET
0.50 (16.78%)
499,215

CIEN
CIENA CORP
33.41 12:29PM ET
4.13 (14.11%)
13,136,967

AGE
A G EDWARDS HOLDING
87.80 12:24PM ET
10.65 (13.80%)
7,208,100

AVNR
AVANIR PHARMACEUTICL
3.66 12:29PM ET
0.44 (13.66%)
6,454,218

ENCY
ENCYSIVE PHARMA
4.04 12:28PM ET
0.45 (12.53%)
4,492,818

ARTL
ARISTOTLE CP
13.10 12:23PM ET
1.39 (11.87%)

SNSTA
SONESTA INTL A
26.23 11:17AM ET
2.76 (11.76%)
1,830

ADES
ADA-ES INC
22.25 12:29PM ET
2.28 (11.42%)
67,553

BDR
BLONDER TONGUE
1.55 10:30AM ET
0.00 (0.00%)
0

MWAV
M-WAVE INC
3.18 9:30AM ET
0.31 (10.80%)
100

BFAM
BRIGHT HOR FAMILY
43.46 12:27PM ET
4.29 (10.95%)
506,134

HEB
HEMISPHERX BIOPHARMA
1.62 12:23PM ET
0.15 (10.20%)
499,100

GIII
G-III APPAREL GP I
20.75 12:27PM ET
1.98 (10.55%)
75,396

CTEL
CITY TELECOM(HK) L
5.72 12:18PM ET
0.52 (10.06%)

EXAS
EXACT SCIENCES COR
2.98 12:11PM ET
0.24 (8.76%)
109,342

Labels: ADES, AGE, ARTL, AVNR, BDR, BFAM, CIEN, CTEL, DNDN, ENCY, EXAS, GIII, HEB, MWAV, OCCX, PCYC, QTWW, SNSTA, TCHCZ

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Google June 520 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
InterContinental Exchange June 130 Puts (NYSE:ICE - News). ICE's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Ciena Corp. June 30 Calls (NasdaqGS:CIEN - News). CIEN's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
USANA Health Sciences July 35 Puts (NasdaqGS:USNA - News). USNA's PowerRating is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
PDL BioPharma Inc. (NasdaqGS:PDLI - News). PDLI's PowerRating is 5.
Canetic Resources Inc. (NYSE:CNE - News). CNE's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
General Motors (NYSE:GM - News). GM's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: CIEN, CNE, GM, GOOG, Hot Stock Options, ICE, PDLI, USNA

Bullish:

Tata Motors (NYSE: TTM): ' This one's going back to its high. India has been the swing factor.'Ciena (NasdaqGS: CIEN)Corning (NYSE: GLW)Stryker (NYSE: SYK): 'Stryker is fabulous! Orthopedic implants'Zimmer (NYSE: ZMH)'Let's not forget though... As good as SYK is, you know what's even better? Zimmer! What a quarter from the Zim machine!... As of yesterday, up $3. That's okay.'Goldman Sachs (NYSE: GS): 'If you want to own an investment firm, I'm going to send you to the one that sells at 10x earnings, which has been a continual theme on this show that I have been dead right on... I am talking about Goldman Sachs and I think GS is going to $325.'FuelCell Energy (NasdaqGM: FCEL): 'Okay, this is what I call an 'optionality play'... If oil spikes this weekend - up $5, or spikes... - your $7 stock will go up 3-4 points. I am not going to bless this stock as an investment. I will bless it as a speculative play - buy, buy, buy!'Yamana Gold (NYSE: AUY): 'AUY grows and grows and grows! And we want growth from a gold stock. We are not getting off the AUY horse!'Kinross Gold (NYSE: KGC)
Bearish calls:
JDS Uniphase (NasdaqGS: JDSU): 'I remain skeptical, because I have been burned so many times by this company, but I have to be honest, it does act well. I'm keeping it in the 'don't buy' but I can't blame anyone who wants to speculate...'DreamWorks (NYSE: DWA): 'I missed it! I missed it! It bottomed and I missed it, and I am angry at myself for missing it, but I can't recommend it up here. It's had too big a move. Don't buy, don't buy.'U.S. Global Investors (NasdaqCM: GROW): 'No. This is an investment advisory firm. C'mon man. Don't buy, don't buy. 'Quiksilver (NYSE: ZQK): 'Everyone tells me that they're bottomed... I went out the other day and said I was negative on it. I didn't like the acquisition they made. People have been telling me that I'm dead wrong about that... That stock is a house of pain, and I'm staying away from it!'Micron Technology (NYSE: MU): 'Let me tell you something, that's a loser! ' (buzzer sounds)

Published By SeekingAlpha

Labels: AUY, CIEN, DWA, FCEL, GLW, GS, JDSU, Jim Cramer, KGC, Lightning Round, Mad Money, MU, SYK, TTM, ZMH, ZQK

Take Two Interactive (NasdaqGS: TTWO): Cramer admitted he was getting behind the "most poorly managed company in America" because he believes in Steve Cohen, who wants to take the company over. Although Cramer thinks the company should have been shut down by the feds "a la Enron" he predicts that Steve Cohen is going to bust the shorts and comments Cohen has always worked well independently.
Joy Global (NasdaqGS: JOYG): The entire sector is being overdone on the downside, said Cramer, and although JOYG missed the previous quarter, Cramer notes the company has a strong cash flow.
UnderArmour (NYSE: UA - News), Adidas , Dick's Sporting Goods (NYSE: DKS - News): Lagging marketing expenditures for Adidas and Reebok means an open playing field for UA to move into Dick's Sporting Goods, according to Cramer, who notes that UA hardly got a scratch in the selloff and predicts it is heading into the $50s. Cramer also comments DKS is well-managed.
Ciena Corp (NasdaqGS: CIEN), Alcatel-Lucent (NYSE: ALU - News) and Tellabs (NasdaqGS: TLAB) and Verizon (NYSE: VZ - News): Cramer says CIEN needs a win as Verizon is making its choice. He thinks CIEN has a better chance than ALU and TLAB.

Labels: ALU, CIEN, DKS, Jim Cramer, Jim Cramer's Stop Trading, JOYG, TLAB, TTWO, UA, VZ

24/7 Real Media Inc. (NasdaqGM:TFSM - News) reported a fourth-quarter net loss of $227,000, or breakeven per share, compared with net earnings of $1.4 million, or 3 cents a share, in the year-ago period. Revenue rose to $60 million from $41.7 million.
Amgen Inc. (NasdaqGS:AMGN - News) disclosed it's received an informal inquiry from the Securities and Exchange Commission seeking more information about a Danish study of the company's Aranesp anemia drug.
Avocent Corp. (NasdaqGS:AVCT - News) revised its previously-announced fourth-quarter earnings down by $0.7 million and its revenue by $2.8 million after becoming aware that several previously recorded transactions did not meet revenue recognition criteria. The firm also said certain royalties earned by its LANDesk unit should have been recorded prior to the closing of its acquisition. Avocent said it now doesn't expect to pay the previously accrued contingent consideration of $27 million related to the acquisition. Taking account of the revision, Avocent said fourth-quarter revenue rose 55% to $166.1 million and operating income per share was 59 cents in the quarter, compared to 49 cents a year ago.
Ciena (NasdaqGS:CIEN - News) said it swung to a first-quarter profit of $11.1 million, or 12 cents a share, after revenue jumped 37% to $165 million. Excluding amortization of intangible assets, stock-based compensation and other items, it would've earned 22 cents a share. Analysts polled by Thomson Financial had expected earnings of 23 cents a share on revenue of $164 million. "As bandwidth demands escalate across multiple traffic types, service provider and enterprise customers alike are increasingly looking for solutions that allow them to transition their networks toward powerful converged network architectures capable of delivering any service at any time," said Gary Smith, CEO, in a statement.
Circuit City Stores (NYSE:CC - News) was downgraded to market perform from outperform at Piper Jaffray.
Comfort Systems USA Inc. (NYSE:FIX - News) reported fourth-quarter net earnings of $7.5 million, or 18 cents a share. During the year-ago period, the company posted a net loss of $17.6 million, or 44 cents a share. Revenue at the Houston-based provider of commercial, industrial and institutional heating, ventilation and air conditioning services rose to $268.1 million from $233.7 million.
Constellation Brands (NYSE:STZ - News) said it expects earnings of $1.21 to $1.31 a share for fiscal 2008. On a comparable basis, excluding items, the Fairport, N.Y., alcohol producer and marketer forecast earnings of $1.30 to $1.40 a share. It sees a net sales decrease of 12% to 14% for the year, citing the impact of using the equity method to report the results of its Crown Imports joint venture. The company expects free cash flow of between $140 million and $160 million for fiscal 2008. Constellation also said its board has approved the buyback of up to $500 million worth of its common stock. The average estimate of analysts polled by Thomson Financial is for a profit of $1.83 a share in fiscal 2008. As for fiscal 2007, the company expects earnings of $1.34 to $1.39 a share. On a comparable basis, it sees a profit of $1.65 to $1.70 a share for the fiscal year ended Feb. 28. Wall Street's current consensus estimate is for earnings of $1.67 a share for the year. It sees net sales growth in the low double digit to low teens for fiscal 2007. The company also said it expects its Svedka vodka acquisition to close in mid-March.
Corrections Corp. of America (NYSE:CXW - News) said its chief financial officer, Irving Lingo, will retire. The Nashville, Tenn. correctional facility operator said it has selected Todd Mullenger, currently the company's Treasurer, as the new CFO, effective March 16.
Douglas Emmett Inc. (NYSE:DEI - News) reported a fourth-quarter net loss of $20.6 million, or 18 cents a share. The Santa Monica, Calif.-based real estate investment trust posted total revenue of $87 million for quarter, which ended Dec. 31.
Energy Partners Ltd. (NYSE:EPL - News) posted a loss of $52.5 million, or $1.35 a share, for the fourth quarter, down from a year-ago profit of $28.1 million, or 69 cents a share. The New Orleans-based oil and natural gas exploration company attributed the majority of its loss in the latest period to $77.9 million in pre-tax non-cash costs related to property impairments. On an adjusted basis, the company said its earnings would have been $4.9 million, or 13 cents per basic share, in the latest quarter.
Focus Media Holding Ltd. (NasdaqGM:FMCN - News) agreed to acquire Allyes Information Technology Co., a China-based Internet, for $70 million in cash and $155 million of stock.
Goodman Global (NYSE:GGL - News) reported fourth-quarter earnings of $11.2 million, or 16 cents a share, up from a year-ago loss of $803,000, or 2 cents a share. Excluding items, the Houston-based maker of heating, ventilation and air conditioning products posted an adjusted profit of $13 million in the year-ago period. Looking ahead, the company forecast earnings of $1.30 to $1.40 a share for 2007. Wall Street's current consensus estimate is for a profit of $1.30 a share for the year.
Hertz Global Holdings Inc. (NYSE:HTZ - News) said it will eliminate 1,350 jobs in a new restructuring initiative intended to save $125 million in yearly compensation.
IndyMac Bancorp (NYSE:NDE - News) said it sees tough conditions ahead for loan originations and credit, and warned earnings in 2007 will be lower than 2006. In a letter to shareholders, the company forecast a return on equity (ROE) of 10%-15% for the year. "Our ROEs for the early quarters of the year will be at the low end of the range above; however, during the second half of the year, if we execute on our plans as we expect, and with a little luck, our ROEs could be at or even somewhat above the high end of the range," the company said.
Input/Output Inc. (NYSE:IO - News) shares tumbled after the Houston-based provider of seismic acquisition equipment and software reported fourth-quarter net earnings of $13.7 million, or 15 cents a share, vs. $16.1 million, or 17 cents a share, in the year-ago period. Revenue rose to $166.2 million from $131 million. Analysts polled by Thomson Financial were expecting a per-share profit of 15 cents. Input/Output forecast 2007 earnings of 45 cents to 60 cents a share on revenue of $610 million to $670 million.
Intevac (NasdaqGM:IVAC - News) was downgraded to market weight from overweight at Thomas Weisel Partners.
Laboratory Corp. of America (NYSE:LH - News) said it expects 2007 earnings will be reduced by 4-12 cents a share after Aetna Inc. (NYSE:AET - News) cancelled its contract with the company, effective July 1. "We are disappointed with Aetna's decision but we are confident in our strategy for profitable growth," CEO David King said in a release.
Limited Brands Inc. (NYSE:LTD - News) said its profit fell in the latest quarter compared with the same period a year earlier, which was lifted by favorable onetime gains.
Medicis Inc. (NYSE:MRX - News) reported fourth-quarter net income of $17.9 million, or 27 cents a share, compared with $37.3 million, or 56 cents a share, for the same quarter last year. Revenue rose to $99.1 million, from $80.7 million last year. Medicis also said it expects to post earnings of 12 cents a share and revenue of $95 million for the first quarter 2007. For 2007, the company sees earnings of $1.12 a share, on revenue of $455 million.
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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.
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