Jim Cramer Blog

Erin Burnett hosted. Recession was the first topic of the show. Tobias Levkovich, a CITI equity strategist, says Tech sector is not headed toward a bubble. Also, when equipment orders are down, and companies are cutting capitol spending, it's a good time to buy chip stocks. Next, Steve Liesman speaks with President Bush. The President is urging business owners to offer free trade to their workers. Next, Google sees growth of 1000% since last year. Jeffery Lindsay of Bernstein Research says; he sees greater growth in Google’s overseas operation. The popularity of Google in Europe, as well as the hiring of European software engineers is the foundation for his prediction. Light bulbs were next. Chuck Swoboda of CREE says high performance light emitting LED's will make regular bulbs obsolete. A long lifetime and an eco-friendly light-emitting substance are the perks that they're aiming to appeal with. Cree’s LED's will be used in the swimming pool at the 2008 Olympics. Next, housing stocks still taking hits today. A homebuilding company; Beazer says that orders are down 58%, and that cancellations are up 68%. Next, after Gisele's story yesterday, the depreciation of the dollar has more people speculating on other currencies. Next, Under Armour (UA) CEO; Kevin Plank sells 1.5 million shares on Nov 1. Some are speculating that he has some doubts in his company. Despite a tough week [this week] and other CEO’s of other companies selling stock in possible preparation of problems to come, Kevin Plank assures everyone that selling shares is the main way that CEO’s make money. Stop trading with Jim Cramer was next. He says get out of Under Armour. Next, Pink slip software; Verve Optimize is a program that executives can use to fire employees. The software scans for possible lawsuit bi-products and tells you who you can fire within the company, without being sued. You can purchase this program for $100,000.

Labels: Beazer Homes USA Inc., CREE, homebuilders, street signs recap, UA

On Wednesday the Dow closed up 76 points as the strength from the Fed rate cut continued to spill. Najarian: investors should look at the volatility in the S&P 500, which is moving back to normal. Reported unusual options activity on Cree (CREE). Could be being bought by General Electric (GE).
Macke: market bears are instant messaging him with more short ideas than any other time in his most recent memory.
Adami: Friday could be a funky day with options expiration on tap. He took a trip to the UPS Center in New York City to find out what is going on at the packaging giant. Adami likes United Parcel (UPS) for three reasons: international growth, energy hedging and union contracts. He also predicted that Fedex (FDX) will rally on Thursday and investors should sell into the strength.
Emerging Markets Trade: The iShares MSCI Emerging Markets (EEM) hit a record high on Wednesday. Their stocks around the globe shot up after the Fed cut. Tim Seymour, of Red Star Asset Management suggests investors buy Tenaris (TS). Seymour recommended Vimpel-Communications (VIP), Mobile Telesystems (MBT) and Mechel OAO (MTL) as liquidity plays.
Shoe Companies: Collective Brands (PSS) and Brown Shoe Company (BWS) have taken double digit hits. CEO of Payless and the company blamed the decline on weather and the increased demand for products out of competitor Crocs (CROX). Finerman hates when companies use weather as an excuse, but she thinks investors can buy PSS, BWS and Limited Brands (LTD).
Goldman Sachs (GS): Dick Bove, an analyst for Punk Ziegel, is the only analyst on Wall Street who is telling investors to sell GS. GS holds are overvalued with $700 billion in securities. He thinks hedge fund trading business is declining.
Word on the Street: TD Ameritrade (AMTD) and Najirian's pick: NASDAQ (NDAQ). Najarian sees no options activity in Oracle (ORCL) ahead of the quarter.
Gartman: time to get out of Suncor (SU) and all his Canadian Tar Sands plays. Instead he would get into U.S. multi-nationals like ConocoPhillips (COP).
Macke says you can buy Kellogg's (K), Kraft (KFT) and Safeway (SWY) off the strong General Mills (GIS) quarter.
Pops & Drops:
Pops: Countrywide Financial (CFC), Blackstone (BX), Fortress Investment Group, The Warnaco Group (WRNC)
Drops- Carmax (KMX), Comcast (CMSCA), Sirius Satellite Radio (SIRI) and XM Radio (XMSR)
Final Trade
Macke-Oracle (ORCL)
Adami- Goldman Sachs (GS)
Najarian- Titanium Metals (TIE)
Finerman- Play Victoria Secret with Limited Brands (LTD)

Labels: CNBC, CREE, EEM, Fast Money, FDX, GE, GS, LTD, MBT, MTL, TS, UPS, VIP

The stock price for Cree Inc. plunged more than 11 percent Thursday morning after the Durham semiconductor company said it expects second quarter earnings to be roughly 15 percent lower than initially expected.
Cree said it expects earnings of between $90 million and $92 million, or between 12 and 14 cents per diluted share, for the quarter ending Dec. 24. That's down from initial earnings projections of between $105 million and $109 million, or between 14 and 17 cents per share.
Company officials attributed the deflated expectations to lower orders for LED chip products used in mobile phones and other products.
The stock price for Cree (Nasdaq: CREE - News) fell more than 11.18 percent, to $18.75, in Thursday morning trading.
The company plans to release final financial results for the 2007 second quarter on Jan. 18, 2007.
Published December 7, 2006 by the Triangle Business Journal

Labels: CREE, Cree Inc.