Jim Cramer Blog

Amerigroup (NYSE:AGP - News) reported that fourth-quarter net income more than doubled to $29.9 million, or 56 cents a share, from $12.9 million, or 25 cents a share, a year earlier. Excluding a pretax gain from net prior period amounts of $13.8 million, or 16 cents a share, earnings were $21.4 million, or 40 cents a share, in the latest fourth quarter. The Virginia Beach, Va., health-care services company said revenue increased 31% to $809.7 million from $620.3 million a year ago. On average, analysts polled by Thomson Financial predicted fourth-quarter earnings of 36 cents a share and revenue of $770.3 million. Analyst estimates typically exclude unusual items. The company also boosted its outlook for 2007 to earnings of $1.85 to $2 per share.

Anheuser-Busch (NYSE:BUD - News) shares rose following a published report that it's held merger talks with Belgian-Brazilian brewer InBev.
Armstrong World Industries (NYSE:AWI - News) said it's initiated a review of its strategic options. It's retained Lazard Freres as its financial advisor and Weil, Gotshal & Manges as its legal advisor in the process.
Avici Systems Inc. (NasdaqGM:AVCI - News) swung to a fourth-quarter net profit of $2.99 million, or 21 cents a share, boosted by strong product revenue growth. In the same period last year, the provider of networking equipment posted a net loss of $8.6 million, or 67 cents a share.
Barnes Group (NYSE:B - News) earned $18.5 million, or 34 cents a share in the fourth quarter, compared to $9.7 million, or 19 cents a share a year ago. Net sales for the period were $328.8 million versus $276.4 million a year ago. Analysts polled by Thomson Financial had expected the firm to earn 29 cents a share in the quarter. Barnes also said it expects full year earnings per share to be $1.53 to $1.60.
BEA Systems Inc. (NasdaqGS:BEAS - News) said it has uncovered instances where stock options granted to its executives and employees were not properly accounted for, and it will have to restate financial results from 1998 through fiscal 2007, and record expenses of $340 million to $390 million.
Beazer Homes USA Inc. (NYSE:BZH - News) said its general counsel, Kenneth J. Gary, was terminated "for a pattern of personal conduct which includes violations of company policies." The disclosure came in a regulatory filing, which did not detail the alleged violations.
Capella Education (NasdaqGM:CPLA - News) said its fourth-quarter net profit rose to $5.7 million, or 39 cents a share, from $3 million, or 25 cents a share. Revenue at the online education services group rose 20.7% to $50.6 million in the quarter. The company said growth was driven by a rise in enrollments, with the number of active learners rising 23% to around 18,000 for the year as a whole. Capella said for 2007 it expects enrollment and revenue to grow 18% to 19%, with operating margins expected to be 10.5% to 11.5% of revenue.
Caterpillar (NYSE:CAT - News) said its board approved a $7.5 billion stock repurchase program. The Peoria, Ill., maker of construction and mining equipment said it expects to complete the buyback within the next five years.
CenturyTel (NYSE:CTL - News) said its fourth-quarter net income fell to $72.2 million from $78.3 million, a year ago. On a per-share basis, earnings increased to 62 cents a share from 59 cents a year ago due to a higher number of shares outstanding in the year-ago quarter. Excluding items, earnings were 68 cents a share for the current quarter. A Thomson Financial survey of analysts, on average, predicted earnings of 64 cents a share for the quarter. Analyst estimates usually exclude items. The Monroe, La., integrated communications company revenue fell 2.1% to $607.7 million from $620.5 million. The company expects first-quarter earnings excluding items of 60 cents to 65 cents a share on revenue of $600 million to $610 million. Analysts forecast earnings of 63 cents a share for the quarter. Centurytel sees 2007 earnings excluding items of $2.60 to $2.70 a share. Wall Street projects earnings of $2.71 a share for the year.
Charles River Labs (NYSE:CRL - News) was upgraded to buy from hold at Jefferies & Co.
Chordiant Software (NasdaqGM:CHRD - News) shares gained after the Cupertino, Calif.-based company reported a fiscal first-quarter net loss of $10.7 million, or 14 cents a share, vs. a net loss of $1.77 million, or 2 cents a share, last year. Excluding certain items, the company posted a loss of $2.7 million, or 3 cents a share. Revenue rose to $22.9 million from $22.6 million. Analysts polled by Thomson Financial were expecting a per-share loss of 2 cents on revenue of $24.7 million. Chordiant raised its fiscal 2007 revenue forecast to a range of $120 million to $125 million.
Credit Suisse (NYSE:CS - News) said its CEO Oswald Grubel has decided to retire May 4. Grubel will be replaced by Brady Dougan, head of the bank's investment banking arm.
Diageo (NYSE:DEO - News) shares advanced after the company was able to lift its operating profit forecast for the year after increasing sales of Scotch whisky and beer to emerging markets and nabbing greater market share in the U.S.
Dobson Communications Corp. (NasdaqGS:DCEL - News) said it swung to a fourth-quarter net profit of $1.74 million, boosted by higher service revenue. In the same period last year, the provider of wireless phone services posted a net loss of $24.9 million.
EnPro Industries (NYSE:NPO - News) reported fourth-quarter earnings before items of $17.6 million, or 81 cents a share, on sales growth of 18%.
FTI Consulting (NYSE:FCN - News) shares gained after the Baltimore-based company posted fourth-quarter net earnings of $17.4 million, or 42 cents a share, down from $18.3 million, or 46 cents a share, in the year-ago period. Revenue in the three months ended Dec. 31 rose to $216.8 million from $165.7 million. Analysts polled by Thomson Financial were expecting a per-share profit of 37 cents on revenue of $194.4 million. FTI expects 2007 earnings of $1.74 to $1.84 a share. Analysts are looking for earnings of $1.76 a share.
Guess Inc. (NYSE:GES - News) blew the doors off earnings expectations by turning in a profit of $45.7 million, or 99 cents a share, a sharp turn from last year's income of $25.8 million, or 57 cents a share. The casual-apparel retailer said revenues surged 25% to $346.4 million.
Gymboree (NasdaqGS:GYMB - News) was initiated with a buy rating at Wedbush Morgan.
Hershey Foods Corp. (NYSE:HSY - News) detailed a three-year plan to change its supply chain operations, saying it expects a total net reduction of about 1,500 jobs. The Hershey, Pa., candy company expects to record pre-tax charges and non-recurring project implementation costs of between $525 million and $575 million from the program over the next three years, primarily in 2007 and 2008. The plan calls for a reduction in the number of production lines in use by more than one-third, the outsourcing of low value-added items and the construction of a production facility in Monterrey, Mexico. When the plan is completed, Hershey said about 80% of its production volume will take place in the U.S. and Canada. The company also reaffirmed its long-term goals for sales growth of 3% to 4% and growth in diluted earnings per share from operations of 9% to 11%. For 2007, however, it said it sees growth in diluted earnings per share from operations of 7% to 9%.

Published By MarketWatch

Labels: AGP, AVCI, AWI, B, BUD, BZH, CAT, CHRD, CPLA, CRL, CS, CTL, DCEL, DEO, FCN, GES, GYMB, HSY, NPO

Here are 7 stocks to watch for today. This list comes directly from the TradingMarkets Stocks Indicators page.
Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
CenturyTel (NYSE:CTL - News). CTL's PowerRating is 5.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Columbia Laboratories (NASDAQ:CBRX - News). CBRX's PowerRating is 6.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term up trends.
AZZ Incorporated (NYSE:AZZ - News). AZZ's PowerRating is 6.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order to qualify as a "Trading Window" candidate, we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average.
Hewlett-Packard (NYSE:HPQ - News). HPQ's PowerRating is 6.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Office Depot (NYSE:ODP - News). ODP's PowerRating is 4.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Dril-Quip (NYSE:DRQ - News). DRQ's PowerRating is 4.
Short Windows Candidates: These are stocks which are in a strong downtrend, as determined by a proprietary trend filter and whose current bar has its low above the 4-day moving average. Historically, these stock on average have had a larger than normal short-term downside reversals. In order to qualify as a "Trading Window" candidate, the 10-period ADX must be 30 or higher and the -DI must be greater than the +DI. Or we must have a 14-period -DI reading of above 30 (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its low of the day above the 4-period moving average.
Fluor (NYSE:FLR - News). FLR's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AZZ, CBRX, CTL, DRQ, FLR, Hot Stocks, HPQ, ODP

BCE Inc. (NYSE:BCE - News) said it was selling its satellite services subsidiary, Telesat Canada, in a deal valued at C$3.42 billion (US$2.96 billion). The acquirer is a company formed by Loral Space & Communications and Canada's Public Sector Pension Investment Board. Loral and PSP said as part of the deal, they will acquire the stock of Telesat Canada for C$3.25 billion (US$2.8 billion), plus the assumption of C$172 million (US$148 million) in debt.
BioSante Pharmaceuticals (AMEX:BPA - News) shares soared on news that federal regulators had approved its menopause treatment Bio-E-Gel.
Caremark Rx Inc. (NYSE:CMX - News) shares rose after the company received a $26 billion cash-and-stock buyout offer from Express Scripts Inc. (NASDAQ:ESRX - News) in an effort to break up the company's takeover deal with drug chain CVS Corp. (NYSE:CVS - News).
CenturyTel Inc. (NYSE:CTL - News) shares rose the company said it'll pay $830 million in cash and debt to buy Madison River Communications Corp., a provider of rural telephone and broadband services. The acquisition is expected to close in the second quarter of 2007.
Citigroup (NYSE:C - News) shares rose after Merrill Lynch upgraded the banking giant to buy from hold. Merrill cited several positive factors including revenue growth from an abating yield curve in 2007; Citi's "unparalleled" international presence; and less deal risk than its peers.
ConocoPhillips said Monday it signed an agreement to buy 376 ConocoPhillips fueling stations in six Eurpoean countries. Financial terms weren't disclosed. Conoco said it is selling 156 stations in Belgium, 49 in Finland, 44 in the Czech Republic, 30 in Hungary, 83 in Poland, and 14 in the Slovak Republic. The stations will be renamed Lukoil stations from Jet stations. ConocoPhillips also said it plans to increase its stake in Lukoil to 20% by the end of the year, as part of a strategic alliance unveiled in 2004.
ElkCorp (NYSE:ELK - News) shares surged after the company said it was being acquired in a deal valued at $1 billion by private equity firm the Carlyle Group. As part of the deal, Carlyle will pay $38 for each ElkCorp share outstanding, which represents a 6% premium to Friday's closing price of $35.85. The deal to buy the Dallas roofing company also includes the assumption of $173 million in debt. Separately, Carlyle is partnering with Hood Companies and its subsidiary Atlas Roofing Corp. When the acquisition of ElkCorp is completed, which is expected to be in the first quarter of 2007, Carlyle plans to merge ElkCorp and Atlas.
Exelixis Inc. (NASDAQ:EXEL - News) said it agreed to collaborate with Bristol-Myers (NYSE:BMY - News) on discovery, development and commercialization of cancer treatments. Under the collaboration, Exelixis will use its drug discovery platform and will identify and be responsible for pre-clinical development of small molecule drug candidates. Bristol- Myers will have the right to select up to three Investigational New Drug (INDs) candidates against three different targets and will lead all global activities, although the parties will co-develop and co-commercialize the programs in the U.S. Bristol-Myers will pay to Exelixis an upfront payment of $60 million in cash, and Exelixis will also receive $20 million for each of up to three different drug candidates selected by Bristol-Myers.
Harrah's Entertainment (NYSE:HET - News) is on the verge of being sold for at least $90 a share to two private-equity firms, Apollo Management and Texas Pacific Group, the online edition of The Wall Street Journal reported Sunday.
Icos Corp. (NASDAQ:ICOS - News) shares rose after Eli Lilly and Co. (NYSE:LLY - News) said it raised its offer price for Icos $34 a share, or about $2.3 billion, up from the original offer price of $32 a share. "We are confident that ICOS shareholders will recognize the substantial value and the certainty that Lilly is offering," said Sidney Taurel, Lilly chairman and chief executive.
Joy Global Inc. (NASDAQ:JOYG - News) said fourth-quarter net income rose to $85 million, or 71 cents a share, from $56 million, or 45 cents, a year earlier. The average earnings estimate of eight analysts surveyed by Thomson First Call was 66 cents a share. The Milwaukee mining technology company said sales for the three months ended Oct. 28 rose 21% to $689.3 million from $568.2 million.
MGM Mirage (NYSE:MGM - News) shares rose after the company and the Mashantucket Pequot Tribal Nation said Monday they inked a pact to build a new MGM Grand hotel/casino resort adjacent to Foxwoods Resort Casino. The new $700 million MGM Grand at Foxwoods is expected to open in the spring of 2008. The two entities will also develop additional gaming and non-gaming projects, both at Mashantucket and outside of Connecticut. They have formed a jointly owned company, Unity Gaming LLC, to acquire or develop gaming and non-gaming enterprises, including Indian and non-Indian gaming, throughout the United States and abroad.
Realogy (NYSE:H - News) shares jumped after private-equity group Apollo Investment agreed to buy the real-estate brokerage group for about $6.6 billion.
Refco Inc. (Other OTC:RFXCQ.PK - News), the derivatives broker that collapsed in scandal last year, said its Chapter 11 plan was confirmed by a New York bankruptcy court, clearing the way for its businesses to be finally shut down and creditors repaid a portion of what they were owed.
SanDisk Corp. (NASDAQ:SNDK - News) said its board authorized the repurchase of up to $300 million of common shares over the next two years. SanDisk, Milpitas, Calif., is a supplier of flash storage card products. Under the program, share purchases will be made from time to time in the open market.
Shares of Shaw Group Inc. (NYSE:SGR - News) surged on news over the weekend that the company, in a joint venture with Westinghouse Electric Co., had landed a contract to build four nuclear power plants in China. The deal, which still needs to hammer out final details, is reportedly worth just over $5 billion.
Smith & Nephew PLC (NYSE:SNN - News) said it canceled its merger negotiations with Biomet Inc. (NASDAQ:BMET - News). Earlier Monday, Biomet unveiled an agreement to be acquired for $10.9 billion by a private equity group that includes Blackstone Group, Goldman Sachs Capital Partners and Kohlberg Kravis Roberts.
Smith & Wesson Corp. (NASDAQ:SWHC - News) said it was buying privately-held firearms maker Thompson/Center Arms for $102 million in cash. The deal, which is expected to close in January 2007, is expected to add 1 cent per share to 2007 earnings. The Springfield, Mass. firearms maker said it now expects 2007 earnings, which will include a 10-cents-a-share charge as a result of the deal, to be 27 cents a share. Previously, the company had estimated 2007 earnings, prior to the acquisition charge, of 36 cents a share. For 2008, the company raised its earnings forecast to 60 cents a share from 52 cents.
Statoil (NYSE:NHY - News) said it would buy the oil and natural-gas division of Norsk Hydro, creating the world's largest offshore operator. Holders of Statoil get 67.3% of the new company while Norsk Hydro holders get the rest. Norsk Hydro will continue to operate as an independent aluminum producer.
Weight Watchers (NYSE:WTW - News) said it has launched a self-tender offer for up to 8.3 million shares of its common stock. The New York weight management services company said it would pay between $47 and $54 for each share.
Zila Inc. (NASDAQ:ZILA - News) said Chief Financial Officer Andrew Stevens has resigned to pursue other opportunities. The Phoenix pharmaceutical company said Vice President and Treasurer Diane Klein will assume Stevens' responsibilities until a new CFO is hired.

Labels: BCE, BMET, BMY, BPA, C, CMX, CTL, CVS, ELK, ESRX, EXEL, H. SNDK, HET, ICOS, JOYG, LLY, MGM, NHY, WTW, ZILA