Jim Cramer Blog

Altria (MO), Bank of America (BAC), Chevron (CVX), Honeywell (HON), Conco-Phillips (COP), Freeport-McMoran (FCX), Schlumberger (SLB), American International Group (AIG), Pfizer (PFE), Cisco (CSCO)
Cramer was disappointed with Dow Jones' facelift which involved getting rid of Altria, and Honeywell, and adding Bank of America and Chevron. Three economic themes Cramer thinks should have been expressed in the Index changes are the growing importance of natural resources, the dwindling power of the financial sector and international growth. None of these themes were reflected in today's choices, Cramer commented. He said a financial should have been removed rather than added to the Dow, COP would have been a better choice than CVX, and would have considered including FCX or SLB in addition to keeping HON. He would have dropped AIG which is a travesty masquerading as an insurance company whose CEO, Martin Sullivan, was recently added to Cramer's Wall of Shame. He would also give Pfizer the pink slip, and would consider adding CSCO, since it is diversified.
Raytheon (RTN)
In spite of Goldman's Sachs note of Early indications of slowing growth in defense spending..., the military budget keeps growing; President Bush is asking for a $515 million for 2009 which is a 7.5% increase. Cramer likes RTN in this space because it has strong international sales, and is up 25% since Goldman's downgrade last March, but he would wait for a pullback before buying.
McDonald's (MCD), Darden (DRI)
One month of data does not justify a bearish position on a restaurant stock, said Cramer, noting McDonald's $6 rise since Bear Stearns hastily downgraded the stock for weak December same store sales (January same store sales increases 5.7%) An even faster kneejerk (or, rather, prejerk) occurred when Darden was downgraded only a few minutes before its better-than-expected guidance was released. The moral of the story, according to Cramer, is that when analysts unfairly downgrade stock on scant data, it is time to buy. Cramer would buy MCD now even though it has risen a bit.
Published By SeekingAlpha

Labels: AIG, BAC, COP, CSCO, CVX, DRI, FCX, HON, Jim Cramer, Mad Money, MCD, MO, pfe, RTN, SLB

New Rule #1 : There's a market for everything; pay attention to how it works, Archer Daniels Midland (ADM), Andersons (ANDE) and VeraSun (VSE)
Cramer reiterated his recommendation that investors read his first book: Jim Cramer's Real Money: Sane Investing in an Insane World, in addition to his newest publication, Jim Cramer's Mad Money: Watch TV Get Rich, which contains 20 brand new investment rules, 5 of which he described on Tuesday's show. His first new rule requires that investors be aware of how stocks trade and that there are many sub-markets within the market. When faced with a trendy stock, it is more important to pay attention to supply and demand than media hype. For instance, late in 2005 when demand for ethanol stocks was high and supply was low, it was possible to make truckloads of money with ADM and ANDE. However, when VeraSun went public in June 2006, Cramer declared that the ethanol story was over, since the supply of ethanol exceeded demand. If you'd just been paying attention to the fundamentals, or to the hype about ethanol in the media, you would've been caught totally off-guard by the downturn in ethanol, Cramer said.
New Rule #2: Make sure your stocks actually fit the bill, Microsoft (MSFT) and Cisco (CSCO)
In addition to doing homework, Cramer warned, Don't be bamboozled by what sector your stock belongs to. Instead, know precisely what you own and why you own it. Cramer cautions viewers not to confuse a rally in an entire sector with a rally within the sector. Broad sector rallies are not too difficult to spot or predict. For instance, when the Fed cuts interest rates, rallies are prevalent among cyclicals, and when the economy is perceived as being weak, consumer staples rally. However, most rallies don't work that way, Cramer said. For instance, when there were stories about a tech rally in June 2005, Cramer chose MSFT and CSCO as names that represented tech, when the upsurge was actually a gadget rally, and did not affect these stocks. Cramer suggests looking at industries within sectors.
New Rule #3: Latin America is Always a Trade, BanColombia (CIB)
Cramer envisions that one day this rule may be revoked, but not in the near future, because every time there is an amazing, long-term growth story in Latin America, it will wind up being a trade. This has nothing to do with the fundamentals of the companies, but is the result of huge market-moving investment firms which have the conviction that Latin America is always a trade, and the stocks get hammered as soon as they move on. Cramer admitted that he made this mistake by thinking that CIB was an investment when it was actually a trade.
New Rule #4: Be a Lemming.
Although he confessed that, at first, this rule may sound stupid and terrible, it actually makes sense to go with the big institutions and the movement of the market if the investor has done sufficient homework. This doesn't mean to ride momentum blindly, but it is true that stocks which hit a 52-week high often keep increasing. This isn't about being a unique and individual snowflake. It's about trying to make money, Cramer said.
New Rule #5: Don't be afraid to say something is too hard.
Some things are just too difficult to game, even after doing lot of homework. Cramer confesses that his rough spot is predicting restaurant same-store sales growth; There are too many better, easier ways to make money in the market, he said. Restaurant CEOs have a hard time predicting their own same-store sales, and the weirdest, most unexpected factors can cause worse-than-expected results. Since there is always a bull market somewhere, Cramer doesn't see the point in knocking one's head against the wall with something that is too hard.
Published By SeekingAlpha

Labels: ADM, ANDE, CIB, CSCO, Jim Cramer, Mad Money, MSFT, VSE

Research In Motion (NasdaqGS:RIMM - News) reported Q3 net income more than doubled, and raised its Q4 guidance above estimates.
Jabil Circuit (NYSE:JBL - News) reported a 50% rise in Q1 profit, and provided guidance for Q2 and FY08.
Cisco Systems (NasdaqGS:CSCO - News) announced that Chief Development Officer, Charles Giancarlo, is leaving the company to join Silver Lake Partners. Giancarlo was seen by many as a possible successor to John Chambers, the company's CEO.
Newmont Mining (NYSE:NEM - News) sold its royalty assets and certain other non-core investments to Franco-Nevada Corporation in a transaction valued at $1.3.
Sun Bancorp (NYSE:SNBC - News) announced a $1.1 billion share buyback.
Tibco Software (NasdaqGS:TIBX - News) Q4 profit declined, but on a non-GAAP basis, earnings rose from the year-ago.
KeyCorp (NYSE:KEY - News) announced a Q4 charge, but increased its dividend for the 43rd consecutive year.

Labels: CSCO, Hot Stocks, JBL, KEY, NEM, RIMM, SNBC, TIBX

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

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

The Dow closed down 218 points and the Nasdaq fell 43 points on Monday. Finerman sees storm clouds are everywhere and the Goldman downgrade of Citigroup (C) really hurt the markets. Najarian had a fun day trading. He also thinks the financial sector is in big trouble and he is extremely worried about General Motors (GM) which fell below $27.
Louise Yamada, a highly ranked technician on Wall Street, joined the show to discuss her analysis on the technicals of the market. She is currently worried that the S&P 500 could break 1406, which would signal to her an end of the longer-term uptrend. Yamada is still bullish on Cisco Systems (CSCO) and she would look to buy pullbacks on the name. She looked at the chart on Broadcom (BRCM) calling it a sell because it hasn't followed through after a false break-out. The chart on Coca-Cola (KO) is initiating an uptrend according to Yamada, so she would be a buyer of KO. Bed Bath and Beyond (BBBY) should be sold.
Retail
Nordstrom (JWN) reported a 22% rise in third-quarter profits helped by an extra week of sales.
Sears Holdings (SHLD) disclosed it has taken a 13.7% stake in Restoration Hardware (RSTO) and the possibility of proposing an acquisition.
Target (TGT) is set to report earnings Tuesday before the opening bell.
Hewlett-Packard (HPQ) clocked a 28% jump in profits off of strong notebook sales.
Medtronic (MDT) reported a 2% decline in profits, but the stock trades 3% higher after hours.
Lowe's (LOW) dropped 7% after reporting a 10% decline in profits due to the weak housing market.
Celgene (CELG) bought Pharmion (PHRM) for $2.9 billion. Adami thinks that Phizer must make a similar acquisition.
EchoStar (DISH) shares exploded higher Monday after Citigroup said there was a 65% chance that AT&T (T) will buy DISH.
Ultimate Fighting is now the fasting growing spectator sport in the United States. Macke says look for growth in cable companies and satellite companies like Viacom (VIA) and EchoStar. He also thinks makers of energy drinks like Coca-Cola will benefit. He said avoid the World Wrestling Entertainment (WWE) because the UFC is taking share. Lastly, Macke speculated that Anheuser-Busch (BUD) could be near a beverage deal with the UFC.
Pops & Drops
Pops - Xerox (XRX) traded up 2%.
Intercontinental Exchange traded up 3%
VeriSign (VRSN) traded up 2%.
Drops - E*TRADE (ETFC) fell 13% even with speculation of a takeover by Ameritrade (AMTD)
Wynn Resorts (WYNN) fell 7%
Genesco (GCO) plunged 24%.
Disney (DIS) fell 4%
General Motors (GM) fell 8% after the automaker announced plans for year-end discounts to clear out inventory.
Dillard's (DDS) fell 5%.
Tween Brands (TWB) fell 13%
Final Trade
Macke would purchase Dicks Sporting Goods (DKS) and Target on any selloff Tuesday
Najarian advises buying EchoStar (DISH) on a pullback under $44.
Finerman is long Goldman Sachs Group (GS) and short Lehman Brothers Holdings (LEH).
Adami recommends Vodafone Group (VOD) for a play on China.

Labels: BBBY, BRCM, CELG, Citigroup Inc., CNBC, CNBC's Fast Money, CSCO, DISH, Dow Jones, Fast Money Recap, GM, HPQ, JWN, KO, LOW, MDT, Nasdaq, PHRM, SHLD, TGT

Stocks climbed higher in afternoon trading to end a volatile week on a high note, as Wall Street did its best to absorb earnings reports, banking sector concerns, and the overall direction of the economy. The Dow was up 67 points at the bell to finish the week at 13,177. Meanwhile, the Nasdaq and S&P ended higher to close at 2,637 and 1,459, respectively. Light, sweet crude traded down on the day to close at $94.85 per barrel for December delivery. Treasury prices traded flat on the day, while gold prices advanced to close at $787.00 an ounce. The dollar dipped against the euro, but gained slightly versus the yen.
On the earnings front, shares of Starbucks (Nasdaq: SBUX - News) tumbled -3.9%, as the company cut its fiscal-year 2008 guidance and reported its first-ever decline in traffic at its U.S. stores. The warning came as the company posted a 35% jump in fourth-quarter profit. For the period, Starbucks reported net earnings of $158.5 million, or 21 cents per share, versus $117.3 million, or 15 cents per share, last year. Quarterly revenue was up to $2.44 billion, from $2 billion a year earlier. Analysts were looking for earnings of 21 cents per share on revenue of $2.43 billion. The company expects 2008 EPS to be between $1.02-$1.05, representing growth of 17-21% and down from previous earnings growth estimates of 20-22%.
Shares of Jack in the Box (NYSE: JBX - News) soared 17.3%, as the fast-food chain reported a better-than-expected fourth-quarter profit. Net income for the period came in at $27 million, or 43 cents per share, down from $33.2 million, or 46 cents per share, last year. Results reflect a 2-for-1 stock split. Revenue rose in the quarter to $678.4 million, up 5% from $648.5 million, a year ago. On average, Wall Street was expecting earnings per share of 39 cents on $684.4 million in revenue. Subscribers can read our take on Jack in the Box in today's edition.
In other corporate news, Garmin (Nasdaq: GRMN - News) announced today that it was withdrawing its bid to acquire digital map maker Tele Atlas NV, and instead signed a long-term data agreement with Navteq (NYSE: NVT - News). Garmin had previously offered $3.3 billion for Tele Atlas, but was recently outbid by rival TomTom. Shares of Garmin surged on the news, and were up 16.1% at the bell.
Shipping giant FedEx (NYSE: FDX - News) said that it was lowering its second-quarter and fiscal-year guidance, citing higher energy prices and a weaker freight sector. For Q2, the company now expects to earn $1.45-$1.55 per share, compared with previous guidance of $1.60-$1.75 per share. For the fiscal year, FedEx lowered guidance to be between $6.40-$6.70 per share, down from a range of $6.70-$7.10 per share. On average, analysts were looking for second-quarter earnings of $1.71 per share and fiscal-year 2008 earnings of $6.87 per share. FedEx's stock was off -4.5% on the day. Subscribers can read our take on FedEx in today's edition.
Elsewhere, Cisco Systems (Nasdaq: CSCO - News) upped its buyback program by an additional $10 billion, bringing the total amount now available to repurchase shares to $62 billion. The company had approximately 6.09 billion shares outstanding as of September 7th. Shares of Cisco were up 2.2% in trading.
By the BullMarket.com Staff

Labels: CSCO, FDX, GRMN, JBX, NVT, SBUX

On Friday the stock market continued to fall with the Dow plunging 223 points and the Nasdaq falling 68 points. The show guided investors through the difficulties of profiting in a down market. Najarian suggests Cisco Systems (CSCO) as a buying opportunity here. He also likes Apple (AAPL) which he mentioned is now selling the iPhone in Germany and soon China. Adami likes EMC (EMC) calling it a real story. Seymour recommends Microsoft (MSFT) and Finerman agreed. Finerman also thinks Altria (MO) is smoking and Adami recommends Unilever (UL). Najarian thinks international and weak dollar plays like McDonald’s (MCD) and Coke (KO) will continue to work.Bank stocks like Wachovia (WB), JPMorgan (JPM), and Bank of America (BAC) finished up on Friday. Najarian was with Citigroup (C). He mentioned that the Financial Select Sector SPDR Fund (XLF) saw 2-to-1 call options buying on Friday.
Word on the Street Merck (MRK) announces plans to pay $4.85 billion to settle most of the remaining Vioxx lawsuits. Adami recommends buying GlaxoSmithKline (GSK) here.E*Trade (ETFC) fell 13% after hours.
Retailers Wal-Mart (WMT) and Macy's (M) are set to report earrings next week. One interesting name to look at is low cost retailer TJ Maxx (TJX) which could be benefiting from consumers looking to save money. Finerman is sticking with Wal-Mart for a long term investment. Macke advises buying The Gap (GPS) and GameStop (GME).
Steel Trade Bearish news from both the housing and auto sectors has helped push U.S. Steel (X) down 7% this week. Seymour mentioned that possible suitors include POSCO (PKX) and some Russian steel makers. Seymour would watch is Mechel (MTL) as well.
Pops & Drops Pops- Monsanto (MON) traded up 3.5% after the company said it will double profits to the tune of $8 billion over the next five years.Allstate (ALL) traded up 4% after Citigroup upgraded the stock.Drops- Clearwire (CLWR) plunged 38% after Sprint Nextel (S) canceled a deal.Washington Mutual (WM) fell 11% off a investigation started by New York Attorney General Andrew Cuomo into the bank's dealings with mortgage appraisers.Fannie Mae (FNM) fell 6% after reporting a loss for the third-quarter.Whirlpool (WHR) fell 4% off a negative Barron's article.NASDAQ (NDAQ) dropped 10% after private equity firm Hellman & Friedman sold 23 million shares.
MisfiresOn October 25th Adami was a buyer of Sotheby's (BID) and since his call the stock fell 8%.October 2nd Finerman recommended buying Kohl's (KSS) and since her call, the stock has been crushed falling 20%.Najarian advocated buying Cisco Systems (CSCO) ahead of the earnings report and was dead wrong and Cisco fell 10% since his call on Tuesday.
Quicker Than the TickerOn October 15th Najarian said buy SunPower (SPWR) and Suntech (STP). He nailed the call and the stocks screamed up by as much as 50%.November 2nd Seymour picked Russian cellphone providers VimpleCom (VIP) and Mobile Telesystems (MBT). Seymour was right and both stocks climbed 6% in 5 days.October 15th Finerman recommended Flowserve (FLS). She was deadly accurate and the stock climbed 20% since her call.October 25th Adami suggested shorting Exxon Mobil (XOM) ahead of earnings. Adami was correct and XOM fell 4% after missing earnings.
Final Trade (Green)Adami favors BorgWarner (BWA) for a play on fuel efficiency and emissions control.Najarian feels positive about Energy Conversion Devices (ENR).Seymour recommends Powershares Water Resources ETF (PHO).Finerman likes Kaiser Aluminum (KALU).

Labels: AAPL, CNBC, CSCO, Fast Money, Fast Money Recap, KO, MCD, MO, UL

The Dow finished down 33 points and the Nasdaq down 63 points on Thursday. Bank stocks like Citigroup (C) and Morgan Stanley (MS) recovered in late trading Thursday. Charlie Gasparino joined the show to discuss his take on the bank stocks. He doesn't think the worst is over for Citigroup. Gasparino next tackled American International Group (AIG). He described how former CEO Hank Greenberg wants to take over AIG and put his people in charge of the insurance giant.
Technology: The four horseman of technology were crushed Thursday, with Apple (AAPL) falling 6%, Google (GOOG) falling 5%, Research In Motion (RIMM) falling 6% and Amazon.com (AMZN) falling 4%. Seymour thinks Cisco Systems (CSCO) looks pretty good here and the firm has moved lots of business abroad. Adami says if you want to play tech look at EMC (EMC) and VMware (VMW).
Speculation made the rounds on Wall Street Thursday that BHP Billiton (BHP) might looking for a new takeover target after Rio Tinto (RTP) rejected BHP's takeover offer. Seymour remarks that potential targets are: Southern Copper (PCU), Freeport McMoRan (FCX), Cameco (CCJ), Potash (POT), Alcoa (AA) and US Steel (X).
Although retailers reported the worst October same-store sales numbers since 1995, Finerman maintains that retail still has some value and companies to consider would be Gymboree (GYMB), Children's Place (PLCE), Kohl's (KSS), Wal-Mart (WMT) and Nordstrom (JWN).
Disney (DIS) profits rose 12% on ESPN and US theme parks. Priceline.com (PCLN) beats third quarter profit expectations and the stock soars 16% after hours. iShares MSCI Emerging Markets Index bucks the market weakness and closes up on the day. First Solar (FSLR) explodes 28%. Najarian has now sold Cypress Semiconductor (CY) into the solar strength. At this point, the solar stocks are beginning to get to over-heated. Adami advises taking profits in Evergreen Solar (ESLR).
Auction house Sotheby's (BID) had major issues selling a quarter of its paintings, including a well known Van Gogh piece that was suppose to fetch $35 million. Finerman tells viewers that when BID doesn't sell these pieces they own them and they now own them at the worst time. She predicts a crack in the art market and BID could get annihilated.
Bidding for Biogen (BIIB) has begun with rumored acquirers Pfizer (PFE), Merck (MRK) and Johnson & Johnson (JNJ) leading the pack.
Pops & Drops
Pops- McDonald's (MCD) traded up 2% after posting a 6.9% increase in October same-store sales.
Monsanto (MON) traded up 4% .
Mobile Telesystems (MBT) 9% and VimpelCom (VIP) jumped 8%.
Procter & Gamble (PG) traded up 2%
King Pharmaceuticals (KG) traded up 14% after posting a quarterly loss.
Restoration Hardware (RSTO) exploded up 140%.
Drops- PetroChina (PTR) fell 6% as the China trade continues to unwind.
Oracle (ORCL) fell 8% as the Nasdaq took it on the chin Thursday.
Final Trade
Seymour is positive about Alcoa (AA).
However, Adami thinks the market will continue to decline and he would play it with Short Dow30 Proshares (DOG).
Finerman recommends Watts Water Technologies (WTS).
Najarian favors Boston Scientific BSX for the options activity he noticed in the device maker on Thursday.
Vig likes EOG Resources (EOG) and Continental Resources (CLR) for plays on oil and natural gas.

Labels: AAPL, BHP, CNBC, CSCO, EMC, Fast Money, Fast Money Recap, GOOG, MS, RTP, VMW

Erin Burnett hosted. Bob Pisani was first, saying Russell 2000 is down 7.4%, Nasdaq down 6.7%, S&P 500 down 6.0% since the beginning of November. Jim Goldman of CNBC, says major averages fall to the lowest averages in two months. Intel is down, Google is down, Cisco is down. Green Eco solar stocks seem to be doing well. Steve Liesman of CNBC, says credit markets feel like they are about to lock up again, the mortgage market is deteriorating, along with more quant fund rumors are all attributing to the markets not swelling currently. Exxon Mobil, Proctor and Gamble, McDonalds and Coca-Cola are leaders today. Fuel prices were up next. Kevin Crissey, a UBS analyst, says he is bearish on airline sector. Jet fuel prices are up and airlines are cutting capacities to compensate for that. But regardless, his recommendation is to sell airline stock. Next, hybrid trucks hit the road. Dee Kapur of International Truck & Engine Corporation, says they are the first commercial truck company to have hybrid trucks in action. They already have 24 in use. They are capable of fuel savings of 30-40%, as well as 60% improvement in fuel efficiency. IC Corp is North America's largest school bus manufacturer. The weak dollar was discussed next. Robert Sinche of Bank of America says the weakening of the American dollar limits performance of other currencies. Also, that, prospects are increased for a dollar downside overshoot. Stop trading with Jim Cramer was next. He says buy Cisco (CSCO.) He also says to be open to European trade, that they may be bearish with us, but not to be bearish with them. Next, financials are reported from Charlie Gasparino. He says the word on write-downs does not look good for investors in the financial sector. Also, Bernanke wears the same suit every time he testifies.

Labels: CNBC, CSCO, Erin Burnett, Jim Cramer, Street Signs, street signs recap

Financials: Washington Mutual (WM) fell 16% on Wednesday after reporting that credit losses for the year could be as much as $2.9 billion. Adami concedes Goldman Sachs (GS) could trade down to $205 and that is where investors should look to buy it. Finerman likes Goldman and is currently long the company and short Lehman Brothers Holdings (LEH) and Merrill Lynch (MER). Najarian recommends State Street (STT). Morgan Stanley (MS) took a $3.7 billion write-down for the fourth-quarter.
Crude oil hit another record high on Wednesday trading up to $98.62. Addison Armstrong, Director of Market Research at Tradition Energy joined the show and said the long term trend is still bullish for oil. He sees that oil demand is strong and supply is very tight and the oil markets have zero margin for error right now. Najarian mentions the largest oil trader on the New York Mercantile Exchange told him that oil is the new currency and it's going to $150.
Consumer Trade
Same-store sales are set to be released for some of the biggest retailers on Thursday. Finerman likes that expectations are low and she still owns Wal-Mart (WMT) Adami declares the only way to play the retailers is with MasterCard (MA).
Word on the Street
American International Group (AIG) falls 3% after hours on a 27% drop in third quarter profits. Cisco Systems (CSCO) falls 9% after hours despite a 37% rise in first quarter profits. Research In Motion (RIMM) and Amazon (AMZN) bucked the market weakness to close higher on Wednesday. Adami mentions that Citigroup upgraded Allstate (ALL) and he would own it here for a trade, and stop out at $50. First Solar (FSLR) explodes up 22% after hours on a blowout quarter.
Pops & Drops
Pops - Potash (POT) traded up 2%.
Onyx Pharmaceuticals (ONXX) exploded up 18% after the drug company posted a third quarter profit.
DirectTV (DTV) traded up 3% after subscribers grew by 400,000.
TurboChef Technologies (OVEN) traded up 9% after the oven maker reported a smaller loss.
Drops - Fannie Mae (FNM) fell 10%
Ford Motor (F) fell 5% in front of earnings set for Thursday.
Yahoo (YHOO) fell 8% after Alibaba.com fell 17%.
Capital One (COF) fell 16% after warning on credit losses.
Fluor (FLR) fell 6% after missing Wall Street estimates.
Final Trade
Seymour thinks its payday with Gold Fields (GFI).
Adami's play is Short Dow30 Proshares (DOG).
Finerman still recommends being long Goldman Sachs (GS) and short Lehman Brothers (LEH).
Najarian likes green play Evergreen Solar (ESLR).

Labels: AIG, CNBC, CNBC's Fast Money, CSCO, Fast Money, FSLR, GS, LEH, MER, RIMM, STT, WM

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Cisco Systems (NasdaqGS:CSCO - News) beat earnings estimates on Wednesday, announcing $0.40 EPS over an expected $0.36 EPS. CSCO's PowerRating (for Traders) is 5.
j2 Global (NasdaqGS:JCOM - News) also beat earnings, reporting $0.38 EPS versus a consensus of $0.37 EPS. JCOM's PowerRating (for Traders) is 7.
Clear Channel (NYSE:CCU - News) reports earnings on Thursday morning, with analysts looking for $0.38 EPS. CCU's PowerRating (for Traders) is 5.
Dean Foods (NYSE:DF - News) is looking to announce $0.15 EPS on Thursday morning before the market opens. DF's PowerRating (for Traders) is 5.
Analysts are watching for Ford Motors (NYSE:F - News) to report -$0.48 EPS on Thursday morning. F's PowerRating (for Traders) is 5.
Rockwell Automation (NYSE:ROK - News) should announce $1.06 EPS on Thursday before the market opens. ROK's PowerRating (for Traders) is 5.
Vonage (NYSE:VG - News) is expected to report -$0.12 EPS tomorrow morning. VG's PowerRating (for Traders) is 5.

Labels: CCU, CSCO, DF, F, Hot Stocks, JCOM, ROK, VG

Crude oil closed at another record high at $97.10 and finally finished Tuesday at $96.70. Adami tells viewers they can play Valero (VLO) on valuation or go with Tesoro (TSO).
Finerman offers EnergySolutions (ES) as an idea since it is scheduled to IPO next week. She would also consider Cameco (CCJ) but only with options. Najarian continues to favor Cypress Semiconductor (CY).
Auto Stocks
General Motors (GM) is set to report earnings Wednesday morning before the bell and Ford Motor (F) is set to report earnings on Friday before the bell. Adami likes Ford Motor. General Motors traded down 3% after hours on news that the company will take a $39 billion non-cash charge on financial assets in the mortgage arm. Macke says that Toyota Motor (TM), Honda Motor (HMC) and Hertz Global Holdings (HTZ) all lose from the continued improvements at Ford and General Motors.
Financials: Macke says we saw a counter trend rally on Tuesday and everything worked accept Citigroup (C) and the retailers. Goldman Sachs (GS) denies write-down speculation for the fourth time on Tuesday.
Google (GOOG) continues to surprise investors with news like the recent entry into the mobile handset market. Najarian thinks the trade is Focus Media Holding (FMCN), which is a China play that sells advertising space on mobile handsets. Google, Apple (AAPL), Intel (INTC), Cisco (CSCO) and Research In Motion (RIMM) all hit 52-week highs Tuesday. Yahoo (YHOO) shares took a hit Tuesday. Cisco Systems (CSCO) is set to report earnings Wednesday.
Adami thinks if the Fed is done cutting rates then Public Service Enterprise Group (PEG) will go lower and you can buy it in the low $80’s.
Pops & Drops
Pops- Archer Daniels Midland (ADM) traded up 7% on a strong profits report.
Jacobs Engineering Group (JEC) traded up 5% after profits rose 43%.
XM Satellite Radio (XMSR) traded up 12% on speculation that the merger with Sirius could get done by year end.
IndyMac Bancorp (IMB) traded up 10% after the CEO said the company would survive the mortgage blowup.
Church & Dwight (CHD) traded up 9% after posting a 34% jump in profits.
MasterCard (MA) traded up 7% after Deutsche Bank upgraded the stock and slapped a $250 price target on the credit card name.
Beazer Homes USA (BZH) trades up 10% after shareholders demand the CEO be fired.
Tenet Healthcare (THC) popped 22% as revenues per patient rose 8%.
Drops- NBTY (NTY) fell 5%.
Cooper Tire & Rubber (CTB) fell 14% as sales and profits missed estimates.
Molson Coors Brewing (TAP) fell 2% after third quarter profits fell amid charges.
Final Trade
Najarian recommends shorting MBIA (MBI).
Macke grabs buy tickets for Intel (INTC).
Adami picked Ford Motor (F).
Finerman advises shorting Lehman Brothers Holdings (LEH)

Labels: CCJ, CNBC's Fast Money, CSCO, CY, F, Fast Money AAPL, Fast Money Recap, FMCN, GM, GOOG, GS, HMC, HTZ, INTC, PEG, RIMM, TM, TSO, VLO, YHOO

On Friday the Fast Money crew speculated on the news about Citigroup (C). Macke thinks the banks are still a sell here unless you're the fastest of traders. Finerman went long Citigroup through options on Friday and she sees a bounce if CEO Chuck Prince leaves. Macke agrees that it does look like a near term reversal to the upside could be in store for Citigroup. Tim Seymour thinks the downside for the financials might be a bit over done and he bought Merrill Lynch (MER) on Friday.
Famous Legg Mason money manager, Bill Miller, likes financials and consumer names, proposing that the global plays might be over. He predicts that new leadership in the markets will come from US, large-cap, dollar-based stocks. Seymour disagrees and thinks that consumer names will do nothing over the next year. Macke thinks Miller's statement is reckless.
Cisco Systems (CSCO) is set to report earnings on Wednesday. Oppenheimer Chief Market technician Carter Worth joined the show to discuss Cisco Systems. In Worth's opinion, CSCO has relative strength and during market sell-offs investors haven't been selling the shares. Adami notes that fundamentally CSCO is doing well. Seymour contends CSCO is a bell-weather for technology and the company is finding ways to grow outside of the U.S. Macke thinks CSCO is just getting started and any pullback in the name is a chance to buy it. In the technology sector Macke wants a dip on Microsoft (MSFT) so he can get in. Adami favors Western Digital.
Retail Shopping
Most major retailers are set to report same-store sales for October on Wednesday Nov. 7th and Thursday Nov. 8th. Costco (COST) and Macy's (M) are Macke's favorite plays here. Finerman is positive on the retailers, but she is nervous about the consumer and she sold her Target (TGT).
Insurance: A shareholder group including Maurice Greenberg is requesting that American International Group (AIG) look at strategic alternatives. The stock is trading up 3% after hours on the news. Greenberg, who use to run AIG, is currently the largest shareholder and controls $3 billion in the stock. Charlie Gasparino's sources say that Greenberg wants to get rid of the current mangers and board of directors. Macke would be a buyer of AIG off this news.
OIL: Oil hits another record high to close at $95.93. Finerman favors Flowserve (FLS) for a global play. She also mentioned that FLS is her biggest position, although she did trim some on Friday. Adami tells investors Exxon Mobil (XOM) still has a rich valuation and if you want to play the oil space look at Chevron (CVX).
Seymour recommends investors look at emerging markets like Brazil, Russia and China. Brazilian banks Banco Itau Holding Financeira S.A. (ITU) and Banco Bradesco S.A. (BBD) are his plays. In Eastern Europe, he likes cellular plays Mobile TeleSystems (MBT) and Vimpel-Communications (VIP).
Pops & Drops
Pops - IAC Interactive Corp (IACI) traded up 9% after beating earnings.
USEC (USU) traded up 12% on a strong profits report.
Potash (POT) traded up 4% after Russian competitor Silvinit had a major flood causing tight world supplies to tighten further.
Baidu.com (BIDU) popped 16% after profits doubled. Macke declares BIDU is the Google of China.
Drops - Washington Mutual (WM) fell 17% after New York Attorney General Andrew Cuomo sued WM alleging it colluded with a real estate appraisal firm to inflate the value of homes to help ensure that loans went through.
Yahoo! (YHOO) fell 8% for the week.
Target (TGT) fell 6% following the downward trend in the market.
Titanium Metals (TIE) fell 11% after missing profit forecasts.
Quicker than the Ticker
Back on October 8th, Seymour suggested buying CTC Media (CTCM) and Central European Media Entertainment (CETV). Seymour got it right and shares of CTC Media went up 7% and CETV surged 20% since his recommendation.
On October 17th Adami told investors to buy MasterCard (MA). The stock has advanced 17% since he recommended it.
October 29th Finerman advised shorting GPS play Garmin (GRMN). GRMN declined 20% since her call.
It was October 31st when Macke recommended investors to short Citigroup (C). Macke was right and two days later Citigroup fell 9%.
Misfires
Earlier this week on Tuesday, Adami recommended buying Las Vegas Sands (LVS). He missed the trade and LVS plunged 19% since his call. For now he favors Boyd Gaming (BYD).
Last Friday Finerman recommended shorting oil. Since her call oil has climbed 6% higher. Finerman would get out of the short oil trade because it didn't work.
A week ago Macke told investors to buy Procter and Gamble (PG). Procter has fallen 3% since he picked it, but Macke says the earnings report wasn't that bad and maintains its going to work in the long-term.
On October 4th Seymour favored investment bank Merrill Lynch (MER) on valuation. Seymour was way off and Merrill fell 19%.
Final Trade
After a rollercoaster week, the team gives their best picks. Although, not necessarily for stocks.
Macke picks the Indianapolis Colts over the New England Patriots. Finerman went with the New England Patriots.
Adami places his bet on Intel (INTC).
Seymour chooses Immersion (IMMR).

Labels: AIG, CNBC, COST, CSCO, Fast Money, Fast Money Recap, MER, MSFT, TGT

Friday's show began with Cramer analysing two new stocks Cramer wants you to buy after the big sell off in the market on Thursday. Cramer said he likes to buy supermarket and drugstore stocks after down days because investors consider them to be safe. His picks were Avon (AVP) and Clorox (CLX). Cramer thinks that they both are doing well internationally, that they have good growth prospects, and that the CEOs of both companies have turned things around.
Tekelec (TKLC): Cramer talked about his weekly speculative pick. They make telecommunications equipment that is focused on next generation networks, giving it strong growth prospects. Cramer also likes that they just completed a stock buyback, meaning they have more cash than some of his speculative plays. Cramer thinks that the stock could go to $16, and that it might be a buyout target for a larger telecommunications company.
After the lightning round, Cramer discussed his Game Plan for next week. He thinks that Citigroup (C) CEO Chuck Prince will either leave the company this weekend, or not at all. If he is still around after Monday, Cramer wants you to move on.
Cramer then talked to Diana Shipping (DSX) CEO Simeon Palios about dry bulk shipping rates, and he left Cramer less bullish about the dry bulk shippers than he had been.
Cramer brought up his earnings plays for this week. Cisco (CSCO) reports on Wednesday, and Cramer thinks you should buy the stock before then. Hologic (HOLX) reports on Tuesday, and Cramer thinks you should also buy some of their stock before they report. He also said that Foster Wheeler (FWLT) and Allergan (AGN) have gone down in the past after earnings, which he thinks is a chance to get these stocks on sale. Cramer also said that he wants you to sell CBS (CBS) and buy ConEd (ED) because it has higher growth and a larger dividend.
Cramer has the CEO of GFI Group (GFIG) on the phone, and they talked about the company's position in the brokerage market, and Cramer said that he is bullish on the stock.

Labels: AVP, CBS, CLX, CNBC, CSCO, DSX, HOLX, Jim Cramer, Mad Money, TKLC

On Tuesday's show, Cramer began by analyzing another stock that has been put on sale after Friday's drop in the market. Shaw Group (SGR) had the best earnings of the quarter so far. Cramer thinks this is time to back up the truck and load up on the stock. Cramer still likes infrastructure plays like Shaw, and the earnings make it even more attractive.
Cramer then went to the phonelines. The first caller asked about Aecom (ACM), which Cramer recommended a couple of weeks ago. Cramer said it is still one of his favorites. The next caller asked about uranium prices, which Cramer attributed to production problems, and recommended Mosaic (MOS) as a good uranium play.
Next, Cramer discussed another pick he made based on the book "Microtrends," which Cramer has been plugging for about the past week. He found that the number of people working from home is increasing, which he thinks will be profitable for Cisco (CSCO), since its products will be needed to connect people to the office, including offerings from some companies they have bought out over the past few years.
Another caller asked about the tech sector in general, and Cramer said that he is the only person bullish on tech. The next caller asked why Cramer likes Cisco, and Cramer said he thinks it will be up consistently 15% a year.
Am I Diversified?
first caller asked about five stocks: Amgen (AMGN), Under Armour (UA), PetSmart (PETM), Goldman Sachs (GS) and EMC (EMC), the latter two of which Cramer owns for his charitable trust, Action Alerts PLUS. Cramer said, "That is definite, definite diversification." The second caller named these five plays: IBM (IBM), Bristol-Myers Squibb (BMY), Pfizer (PFE), Disney (DIS) Citigroup (C), which Cramer also owns for his charitable trust.
Mad Mail: The first email thanked Cramer for the show he did on October 19, where he gave his 5 rules for investing. The writer thinks that those tips will save him money in the future. The next email asked why Cramer didn't talk about Dry Ships (DRY) when he did his dry bulk shippers segment. Cramer said that it has gone up so much that he had to pass on it. The next writer invited Cramer to his daughter's Bat Mitzvah because the profits from his stock picks are paying for it, and the last email asked what to do with some Hershey (HSY) stock they own, and Cramer said to sell it any time the stock goes up.

Labels: ACM, AMGN, CSCO, DRYS, EMC, GS, HSY, Jim Cramer, Mad Money, Mad MOney Recap, MOS, SGR

Cisco Systems Inc. said on Tuesday it has agreed to buy Navini Networks Inc. for $330 million in cash and assumed options.
Richardson, Texas-based Navini sells modems, base stations and antennas for beaming and receiving radio signals using WiMAX technology,
San Jose-based Cisco (NASDAQ:CSCO - News) until now has been a proponent of the better known Wi-Fi technology
Cisco said it plans to integrate Navini into its wireless networking business unit, which includes Wi-Fi gear maker Linksys.
The deal is expected to close by January.
Published October 23, 2007 by the Silicon Valley / San Jose Business Journal

Labels: Cisco Systems Inc., CSCO