Jim Cramer Blog

Capital One Financial (COF), American International Group (AIG), CIT (CIT) Cramer said AIG and COF are not transparent enough to own, because no one is sure about their assets and liabilities. While a bigger interest rate cut might have saved these companies, Cramer said after the Fed's small cut, the two companies look "too darn bad" to hold. While he did like both of these companies at one time, unlike CIT which makes all pertinent information known to investors, COF and AIG have closed books. In addition, COF recently commented on rising delinquency with credit cards, wasted its capital buying back stock at a high price and has "virtually no yield support." While AIG insists it is not being affected by bad loans, it is not providing evidence to support this claim, and Cramer says its yield is insufficient.
CEO Interview: James Hackett Anadarko Petroleum (APC)
"I believe 2008 is going to be the year for natural gas," Cramer said. "It's leaner, meaner and cleaner than coal." APC is a Cramer's natural gas growth pick, since it has raised its production guidance and is actively drilling. Cramer asked James Hackett why the presidential candidates weren't discussing natural gas, and Hackett replied the fuel is unjustly overlooked. Hackett added the company is drilling ambitiously and has made acquisitions to facilitate working overseas. While it is a challenge to drill in the Gulf of Mexico because of federal regulations, Hackett said people who manage to drill in the region should be encouraged. Cramer called Hackett a "hero" who is "making you money."
Mercadolibre (MELI)
Cramer says MELI which processes e-commerce transactions and is based in Latin America has a similar story to Google and Baidu and will continue to run. While he would usually suggest waiting for a pullback, Cramer wouldn't wait too long to buy MELI
Published By SeekingAlpha

Labels: AIG, APC, CIT, COF, Jim Cramer, Mad Money, MELI

Stocks opened the session lower after disappointing economic data caused investors to be wary of current economic conditions. Later in the day, equities accelerated their losses after credit fears once again took control of the market. All the major stock indices closed near their lows for the day. Over in the energy patch, oil prices also ended the day slightly lower.
On the economic docket today, the New York Conference board said that consumer confidence this month plunged the most since Hurricane Katrina nearly two years ago. The index fell to 105, from a revised 111.9 in July, the conference board said. Even though the readings were low, economists were looking for a larger drop to 104. Elsewhere, home prices fell the most in 20 years according to the Case-Shiller report, which recorded a -3.2% drop in home sales nationally in the second quarter.
In company-related news, consumer and commercial finance company CIT Group (NYSE: CIT - News) announced that it would close its mortgage lending operations and take a $35 million pretax charge in its third quarter for severance and exit costs. Last month, the company reported a loss due to a $495.3 million after-tax charge to reduce the value of some home loan receivables. The company also announced that it is cutting 550 jobs.
Shares of financial service company State Street (NYSE: STT - News) plunged after it reported in filings that it has exposure to about $29 billion worth of commercial paper conduits. Conduits are retail and commercial loans that are bundled into packages and backed by short-term debt from the commercial paper market. Also plaguing the company are reports that of one of its bond funds has lost more than a third of its value in recent weeks.
Internet service provider (ISP) EarthLink (Nasdaq: ELNK - News) shares rose after the company announced that it will cut 900 jobs or half of its work force and close four offices in an attempt to reduce operating costs. It also announced that it will repurchase $200 million of its own stock. The company cut its sales range for the year to $1.19-$1.21 billion, down from a previous range of $1.23-$1.24 billion. Full-year net loss is expected to come in between -$79 to -109 million.
On the deal front, pharmacy benefit manager Medco Health Solutions (NYSE: MHS - News) agreed to buy blood-glucose test maker Polymedica (Nasdaq: PLMD - News) in an all-cash deal valued at $1.5 billion, or $53 a share, which represents a 17% premium to where the shares closed on Monday. Medco says the deal will help it boost sales of its diabetes care products.
By the BullMarket.com Staff

Labels: CIT, ELNK, MHS, PLMD, STT

Buy CIT (CIT), Jim Cramer said Monday on CNBC's "Stop Trading!" segment.
Cramer said last week's bad quarter was "scary" as it showed the lender briefly became "a cesspool of bad mortgages." But Cramer added that the New York financial firm is "a really smart company" that's mostly focused on commercial lending, an area Cramer believes "is not causing the problems" in the financial sector. He said he'd buy the stock, which hasn't recovered off last week's hammering.
Cramer said he likes Colgate (CL), Clorox (CLX) and Procter & Gamble (PG) amid signs of a slowdown in worldwide growth.

Labels: CIT, CL, CLX, Jim Cramer, Jim Cramer's Stop Trading, PG

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Altria (NYSE:MO - News) reports earnings on Wednesday before the market opens; watch for $1.13 EPS. MO's PowerRating is 6.
CIT Group (NYSE:CIT - News) is expected to report $1.35 EPS before the bell on Wednesday. CIT's PowerRating is 6.
JP Morgan Chase (NYSE:JPM - News) should report $1.08 EPS on Wednesday before the bell. JPM's PowerRating is 5.
Lufkin Industries (NasdaqGS:LUFK - News) is looking to announce $1.19 EPS tomorrow morning. LUFK's PowerRating is 6.
When Pfizer (NYSE:PFE - News) announces earnings before the market opens on Wednesday, look for $0.50 EPS. PFE's PowerRating is 4.
Southwest Air (NYSE:LUV - News) should announce $0.22 EPS on Wednesday morning. LUV's PowerRating is 5.
United Tech (NYSE:UTX - News) is expected to announce $1.15 EPS on Wednesday morning before the action begins. UTX's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CIT, Hot Stocks, JPM, LUFK, LUV, MO, pfe, UTX

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Cognex (NasdaqGS:CGNX) missed earnings on Tuesday afternoon; analysts were looking for $0.15 EPS, but CGNX announced $0.10 EPS. CGNX's PowerRating is 4.
IBM (NYSE:IBM) matched earnings expectations Tuesday afternoon with $1.21 ES. IBM's PowerRating is 5.
Washington Mutual (NYSE:WM) beat earnings on Tuesday after the close, announcing $0.86 EPS over an expected $0.84 EPS. WM's PowerRating is 4.
CIT Group (NYSE:CIT) announces earnings Wednesday before the bell; look for $1.27 EPS. CIT's PowerRating is 5.
When Commerce Bancorp (NYSE:CBH) reports quarterly earnings on Wednesday morning, watch for $0.39 EPS. CBH's PowerRating is 4.
Analysts are expecting JP Morgan & Chase (NYSE:JPM) to announce $1.02 EPS on Wednesday before the market opens. JPM's PowerRating is 5.
Motorola (NYSE:MOT) is expected to report $0.01 EPS on Wednesday morning. MOT's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: CBH, CGNX, CIT, Hot Stocks, IBM, JPM, MOT, WM

Through the Grapevine: Wells Fargo (NYSE: WFC - News), MBIA (NYSE: MBI - News) and CIT Group (NYSE: CIT - News)
Cramer concedes when things get ugly "it's the rumors that drive the market." Wall Street gossip about the so-called reckless subprime lending of WFC, MBI and CIT was unjust, according to Cramer; "If you missed today's rally, I want you to know who kept you away," he said. When a good stock gets a bad name, it is a sign of the end of a bear raid and he adds financials are bottoming. Cramer is giving WFC the "benefit of the doubt" and does not see any justification in attacking MBI and CIT. He noted these stocks now have a good entry point.

Rubble Stock: General Cable (NYSE: BGC - News)
Cramer is devoting a daily segment to picking up good stocks from the rubble. Although BGC has just gone up, "it's pulled back enough to be a triple buy," reported a "phenomenal quarter" last month with good guidance, and has orders still outstanding from the blackout in New York City four years ago. BGC is also a supplier for triple play and has moderate raw costs, which will mean solid gross margins. Cramer would buy the stock now, but for the cautious, he suggests picking up some now and buying the rest on any weakness.
The 4% Club: Packaging Corp. of America (NYSE: PKG - News) and BP (NYSE: BP - News)
While most investors search for stocks which have upside potential, Cramer says it is also important to find protection against an unexpected downside. "Tonight I'm going to initiate a couple of stocks into the 4% yield club:" BP, his favorite, and PKG. Cramer notes PKG has low margins, should attract private equity interest, benefits from reduced energy costs and has a 4% yield. BP has a 4.1% yield, is the cheapest in its group and is now adopting an "underpromise, overdeliver" strategy.

CEO Interview: Jerry Kennelly, Riverbed Technology (NasdaqGM: RVBD)
Jerry Kennelly said RVBD produced a profit for the first time and "blew away the revenue guidance." When Cramer asked about the lockup expiration set for March 19, Kennelly responded, "It's no longer 59 million," he said. "Half the shares got pushed out to early May, and the half that will expire are a good portion owned by insiders." He added that since March 19 is a blackout trading period, he doesn't think RVBD will get hit. Cramer commented "It's time to buy Riverbed."

Published By SeekingAlpha

Labels: BGC, BP, CIT, MBI, PKG, RVBD, WFC

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
China Netcom (NYSE:CN - News). CN's PowerRating is 7.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Mexico Fund (NYSE:MXF - News). MXF's PowerRating is 7.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Alcoa (NYSE:AA - News). AA'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.
Google (NasdaqGS:GOOG - News). GOOG'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.
Deere (NYSE:DE - News). DE's PowerRating is 7.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
CIT Group (NYSE:CIT - News) & Southern Peru Copper (NYSE:PCU - News). CIT's PowerRating is 7, and PCU's PowerRating is 7.
PowerRatings are courtesy of PowerRatings.net

Labels: AA, CIT, CN, DE, GOOG, Hot Stocks, MXF, PCU