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Tuesday, March 13, 2007

Jim Cramer's Mad Money Lightning Round Mar. 12

Bullish calls:
Denny's (NasdaqCM: DENN): 'I want to be candid. They did not have a good month. I am sticking by them because, what I liked them for is the restructuring that's fixing their balance sheet ... it's part of my little under-$10 package that I think is ramping, and that I think goes still higher. DENN is fine with me. I want to hold it.'Blockbuster (NYSE: BBI - News)Dynegy (NYSE: DYN - News)Companhia Vale do Rio Doce (NYSE: RIO - News): 'This company accomplished something that no other company could do in the western hemisphere... It literally merged with its #2 competitor ... and it has created a mineral powerhouse ... I think it's got $45 written on it. I have liked this company for 10 points. I bet you I like it for another 15! But, I've got to tell you - let's understand - it's had a big run. It is up 68% year over year. It goes to $40, and goes to $45. It probably pulls back a little, and ultimately goes to $50.'NYSE Group (NYSE: NYX - News): 'I think this is the most undervalued stock on the New York Stock Exchange - how ironic... I just bought some again for my charitable trust last week, and I am anxious to pull the trigger again, because I just think it is so darn undervalued versus when that Euronext deal closes. This one is a keeper.'Yahoo! (NasdaqGS: YHOO): ' ... there was an article in the Wall Street Journal that really said that the Yahoo AT&T relationship is ka-put, that it's just a trainwreck ... Now, over the weekend, YHOO and AT&T put out a series of releases that basically said that the Journal was dead wrong. Maybe it's something in between, but the people who tossed this stock out on Friday overreacted to what I think may have been a lot wrong in that article. I'm staying with YHOO.'eBay (NasdaqGS: EBAY)Big Lots (NYSE: BIG - News): ' ... As soon as I saw the Dollar General buyout, I said that someone is going to bid for this BIG, so I hit it up. Sure enough, 52-week high but, you know what? It probably has a little bit more to go. Now, let me caution... If I owned it, it's up 120% year-over-year, and that means bulls make money, bears make money, but hogs get slaughtered. So, if you owned it for the last year....'BEA Systems (NasdaqGS: BEAS): 'I recommended it at $12. Right now, I'm giving myself 30 lashes... I am disappointed in how this company reported. I still believe that Oracle could take them out ... I want to stick with it for now.'
Neutral calls:
Ford (NYSE: F - News): 'I don't mind the company, but the stock is wrong ... I think that Ford will be successful in its turnaround, but I like to play it with the right piece of paper - the convertible bond.'
Bearish calls:
USG (NYSE: USG - News): 'USG is a really interesting situation, because it never seems to ever go right where Warren Buffet says that he would buy the rest of it, which is mid-40s... Now, USG in the end, is deeply levered to the housing market, and you know that I am a bear on housing.'Heelys (HYLS): 'I think that HLYS is over-valued ... I went recently to a couple of sporting goods stores. They're stocked to the gills with Heely's. I don't like to see that. Sell, sell, sell!'News Corp. (NYSE: NWS - News): 'We're a dollar away from register ringing on NWS. It doesn't mean I dislike it. It does mean it's had a really big run.'Quiksilver (NYSE: ZQK - News): 'Awful. Awful. I've got to tell you. This is one of the worst quarters I have seen from any apparel company, and they're blaming the warm weather ... I hate those kind of excuses. In other words, what I'm saying is, it's probably too late to sell right now but, if that stock rallies, sell, sell, sell!'
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Friday, February 16, 2007

Biggest Stock Decliners Friday

TCHC, APPB, CPKI, CAPA, CECO, KO, STZ, DENN, GT, HRL, IM, KNDL, LOOK, MSFT, MLS, BAM, PACT, QDEL, SNIC, STC


21st Century Holding Co. (NasdaqGM:TCHC - News) has withdrawn its forecast of financial results for 2006, due to "a series of accounting issues." The Lauderdale Lakes, Fla., company reiterated its earnings forecast for 2007 at $4.50 per share. The company said the 2006 accounting changes include additional assessments from the Florida Insurance Guaranty Association and Citizens Property Insurance Corp. for the funding of insolvency at other insurers in Florida, and for a strengthening of liability reserves.
Applebee's International (NasdaqGS:APPB - News) was cut to neutral from buy at UBS after the company announced its board has hired advisers to assess strategic alternatives. "There is still a significant amount of risk for Applebee's-as well as the casual dining industry-due to ongoing significant sales and traffic declines, and this is likely to continue until comparisons get easier in the second quarter of 2007," the broker said.
California Pizza Kitchen Inc. (NasdaqGS:CPKI - News) said fourth-quarter net income was $3.73 million, or 19 cents a share, compared with $3.48 million, or 17 cents a share, for the same period a year ago. Reporting after the close, the company said revenue was $146 million vs. last year's $125.4 million.
Captaris (NasdaqGM:CAPA - News) shares tumbled after the Bellevue, Wash.-based software company reported fourth-quarter net earnings of $2.25 million, or 8 cents a share, vs. $44,000, or breakeven a share, in the year-ago period. Revenue rose 2% to $25.2 million from $24.7 million. Analysts polled by Thomson Financial were expecting a per-share profit of 6 cents on revenue of $26 million.
Career Education Corp. (NasdaqGS:CECO - News) said fourth-quarter net income fell, as revenue declined, to $20.7 million, or 21.5 cents a share, from $70.3 million, or 70.1 cents a share, during the same period in the prior year. Analysts had expected per-share income of 37 cents.
Coca-Cola (NYSE:KO - News) was upgraded to buy from neutral at Goldman Sachs. The broker said recent results demonstrate the company's ability to weather challenges in key developed profit centers and still deliver strong global profit.
Constellation Brands (NYSE:STZ - News) was downgraded to neutral from buy at Goldman Sachs. "Valuation remains inexpensive and the company looks well-positioned in growth segments like premium wine and imported beer. However, we believe upcoming guidance is likely to be uninspiring and a recovery in the U.K. and Australia is likely at least a year away," the broker said.
Denny's Corp. (NasdaqCM:DENN - News) said it swung to net income in the fourth-quarter of $2.27 million, or 2 cents a share, as operating costs and expenses declined. During the same period in the prior year, the restaurant operator reported a net loss of $4.5 million, or 5 cents a share.
Goodyear Tire & Rubber Co. (NYSE:GT - News) said its fourth-quarter loss widened to $358 million, or $2.02 a share, from $51 million, or 29 cents a share in the year-earlier period. The Akron, Ohio, tire maker said its loss included a $367 million charge for a strike at 16 of its North American tire plants, $184 million in charges for restructuring and a one-time gain of $153 million for a favorable tax change. Analysts polled by Thomson Financial forecast a loss, on average, of 40 cents a share. The company said the strike reduced fourth quarter sales by $363 million and tire volume by 2.8 million units. Sales in the three months ended Dec. 31 rose 1% to $4.98 billion from $4.93 billion.
Hormel Foods Corp. (NYSE:HRL - News) said fiscal first-quarter earnings rose 9% to $75.3 million, or 54 cents a share, from $69.3 million, or 50 cents a share, a year earlier, helped by its specialty foods segment, international business and refrigerated foods. Analysts polled by Thomson Financial expected, on average, first-quarter earnings of 54 cents a share on revenue of $1.49 billion. The Austin, Minn., maker of consumer-brand food and meat products said revenue rose 6.2% for the period ended Jan. 28, to $1.5 billion from $1.42 billion in the year-ago period. The company expects fiscal second-quarter earnings of 47 to 53 cents a share and backed its fiscal 2007 outlook of $2.15 a share to $2.25 a share.
Ingram Micro Inc. (NYSE:IM - News) reported a fiscal fourth-quarter profit of $91.7 million, or 53 cents a share, on revenue of $8.85 billion. During the same period a year ago, the technology products distributor earned $84.4 million, or 51 cents a share, on $7.96 billion in revenue.
Kendle Inc. (NasdaqGS:KNDL - News) swung to a fourth-quarter net loss of $4.7 million, or 32 cents a share, after an $8.2 million asset impairment charge and other charges. Last year, the company reported a profit of $3.7 million, or 26 cents a share. On an adjusted basis, earnings per share for the quarter totaled 18 cents. Analysts had been expecting the company to post earnings of 33 cents a share according to data compiled by Thomson Financial. Revenue rose to $118.1 million, from $66.5 million a year ago.
LookSmart Ltd. (NasdaqGM:LOOK - News) said its fourth-quarter loss narrowed to $896,000, or 4 cents a share, from $3.77 million, or 17 cents a share, a year earlier as revenue rose 51%. The San Francisco Internet directory service's revenue grew to $15 million from $9.97 million in the year-ago period. On average, analysts expected a per-share loss of 8 cents on revenue of $15.5 million, according to a poll by Thomson Financial. For the first quarter, the company expects revenue to grow 24% to 26%. For the year the company expects revenue to climb 20% to 25%.
Microsoft (NasdaqGS:MSFT - News) shares fell after CEO Steve Ballmer tempered the expectations of analysts at an event Thursday, telling them their predictions for sales of the company's new operating system are too high, while those for its operating expenses may be too low.
Mills Corp. (NYSE:MLS - News) has agreed to be acquired by Simon Property Group Inc. and hedge fund Farallon Capital Management for $25.25 a share in cash. The group had earlier offered to acquire Mills for $24 a share, topping a previous bid from Brookfield Asset Management Inc. (NYSE:BAM - News) of $21 a share. The deal is valued at about $7.9 billion with debt, Mills said in a statement. Mills said it terminated its previous merger agreement with Brookfield after determining the Simon/Farallon offer was "more favorable to its stockholders."
Pacificnet (NasdaqGM:PACT - News) said in a Form 8-K filing with the Securities and Exchange Commission that Joseph Levinson has resigned as chief financial officer, effective immediately.
Quidel Corp. (NasdaqGM:QDEL - News) reported fourth-quarter earnings of $18.3 million, or 54 cents a share, up from a year-ago profit of $9.6 million, or 28 cents a share. The latest results include a gain of $5.9 million, or 17 cents a share, from an income tax benefit. On an adjusted basis, the San Diego maker of rapid diagnostic tests earned $11.6 million, or 34 cents a share, in the December quarter. The company said its gross margin slipped to 60% for the quarter from 62% a year ago due to charges in product mix, and continued investments in manufacturing process improvements and quality control.
Sonic Solutions (NasdaqGS:SNIC - News) reported preliminary third-quarter net revenue of $39.1 million. Analysts polled by Thomson Financial are currently forecasting revenue of $41 million for the period. The Novato, Calif.-based software company said its selected results and outlook may be adjusted as a result of a possible options-related restatement of results. The company said it hasn't determined the amount of non-charges for stock-based compensation expense it expects to incur, but plans to file restated results as soon as possible. Additionally, Sonic said it sees fourth-quarter net revenue of between $37 million and $41 million.
Stewart Information Services Corp. (NYSE:STC - News) said fourth-quarter net income rose to $10.7 million, or 59 cents a share, from $9.1 million, or 50 cents a share. Revenue rose 3% to $646 million, the title insurer said. Three analysts polled by Thomson Financial expected, on average, earnings of 71 cents a share.

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Monday, February 12, 2007

Jim Cramer's Mad Money Stock Recap Feb. 9

On Speculation: Landec Corp (NasdaqGS: LNDC)
Cramer announced that he was going to discuss speculative stocks on Fridays to give investors a weekend to cool off before pulling the trigger on potentially risky companies. Friday's speculative play was LNDC, a $12 stock that, according to Cramer, is in the hottest part of one of the hottest sectors, which is seed technology. LNDC's technology, "intellicoat," prevents seeds from germinating and absorbing water too early, and allows farmers to plant up to four weeks ahead of time. Cramer says, "if corn is the next oil, LNDC is the equivalent of a pressure pumper that gets more oil out of the well." He advised investors to use limit orders and not to buy an entire position at one time.
The Week Ahead: Prudential (NYSE: PRU - News), Metlife (NYSE: MET - News), Aon Corp (NYSE: AOC - News)
Cramer commented that he doesn't like the market here, that the financials are "acting terrible," the real estate market is a "total collapsed bubble," and that gold, "ever the enemy of paper" is going up and that gold investors should take profits. In this "glass is half-empty" environment, Cramer warns of selloffs in even the best companies, and suggests buying only half of the intended amount and making a move at the end of the week after the "selling squall." He likes Prudential, which reported a "beautiful quarter," AOC, and MET, which is best-of-breed and is the "big sleeper" of next week with 10% accelerated growth. Cramer would buy it before and after its earnings report and recommends patience if it doesn't rise immediately.
Chipotle Mexican Grill (NYSE: CMG - News) and Denny's (NasdaqCM: DENN)
Concerning CMG and DENN, Cramer says he doesn't mind fact that these companies have debt because their financials are still good, they can refinance at low rates thanks to the strong bond market, and can raise earnings per share by decreasing interest payments. He calls Denny's a "bad going to good" story, but would wait, and calls CMG a "good going to better" story which will have a "fantastic quarter." However, Cramer would hold off until CMG gets hit and would buy it low.

Life Time Fitness (NYSE: LTM - News), Baidu.com (NasdaqGM: BIDU), Psychiatric Solutions (NasdaqGS: PSYS)LTM has "come in a tad" from where Cramer recommended it as a generational play, but he would still buy it as a long-term stock. He comments that BIDU has just a fraction of Google's value and better growth potential, but is in a precarious position because of China's Communist government. Since BIDU tends to trade wildly after it reports, he would use a downturn as an opportunity to buy it cheaply. Cramer notes that PSYS' management has been bullish ahead of the quarter, and would buy some stocks ahead of time, since PSYS has been acquiring companies, and Cramer expects a "big number bump" next week.

Masco Corp. (NYSE: MAS - News), KBH Home (NYSE: KBH - News), Daktronics (NasdaqGS: DAKT), Reliance Steel (NYSE: RS - News)
Cramer would ring the register on MAS before it reports, since it has had a big run. He predicts that KBH will see a huge selloff, and would sell it before it reports and buy the stock back lower. Cramer likes DAKT which is "remaking the billboard industry in its own digital image" and is building huge billboards at sports stadiums. He would use the 8% dip as an opportunity to get in before it reports. Cramer would take profits in RS because it has risen 8 points since he recommended it.
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Friday, January 19, 2007

Jim Cramer's Mad Money Lightning Round Jan. 18

Bullish calls:
Denny's (NASDAQ: DENN - News): ‘ is so right ... a restructuring story ... paying off debt ... earnings going to go up. Getting to where it should have been two years ago. Two thumbs up, way up.’Mentor (NYSE: MNT - News): ‘There's room for Mentor, but it is not as good as AGN.’Allergan (NYSE: AGN - News)MasterCard (NYSE: MA - News): ‘Pull the trigger [buy] . ... There's nothing wrong, we just found out JPMorgan had 17% growth in the credit card business ... I'm staying bullish ... been bullish for 50 points ... not backing away.’Immucor (NASDAQ: BLUD - News): ‘This company does terrific laboratory work. ... Well-run, it's a good company ... fabulous growth. Sells about one times earnings. What's not to like?’Global Sources (NASDAQ: GSOL - News): ‘You know, I like this company. You know, it's an Internet play ... hit 52-week high ... but I'm not backing away.’Duke Energy (NYSE: DUK - News): ‘They've restructured the company ... so well-run ... I like the utilities here, and Duke is one of the best in the country.’Genentech (NYSE: DNA - News)
Bearish calls:
Ship Finance International (NYSE: SFL - News):‘Too many very large carriers being built. That could drive the rates down. They may not be able to pay the dividend. Put me in the Don'tBuy" camp.’Valero Energy (NYSE: VLO - News): ‘Mutual funds are piling out of Valero. ... Even though it's dirt cheap, I don't want you to buy Valero.’MGM Mirage (NYSE: MGM - News): 'Ring the Register!’MGI Pharma (NASDAQ: MOGN - News)

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Thursday, January 11, 2007

Jim Cramer's Stop Trading, Jan. 10th

Blockbuster (NYSE: BBI - News), Rite Aid (NYSE: RAD - News), Denny's (NASDAQ: DENN - News), Level 3 (NASDAQ: LVLT - News), Cisco (NASDAQ: CSCO - News), Sysco (NYSE: SYY - News), Mercury General (NYSE: MCY - News): Cramer discussed single-digit stocks which he predicts will go higher as investors realize how good they are. He notes that BBI is giving Netflix some agressive competition, Rite Aid is buying Eckherd stores at a low price, Denny's is still underestimated in spite of improvements, and LVLT is making smart acquisitions which allow analysts to raise numbers. Concerning I.Q. Trends' lucky 13 for 2007, Cramer says he likes Cisco and similar-sounding food server Sysco, but would stay away from auto insurer Mercury General.
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Tuesday, December 26, 2006

Jim Cramer's Mad Money Lightning Round Dec. 22

Bullish calls:
Bank of America (NYSE: BAC - News): 'I like the stock very much here ... good yield, nice growth path, is not going to set the world on fire. ... I say buy Bank of America.'Level 3 Communications (NASDAQ: LVLT - News): 'Some people think I run hot and cold. ... I like LVLT. ... I endorse LVLT ... gonna close a deal soon with Broadwing (NASDAQ: BWNG - News). I am going to stay behind that thing with a TripleBuy.'ConAgra (NYSE: CAG - News): ' ... run, don't walk, into ConAgra, which is one that we nailed nine ways to Sunday.'Quest Software (NASDAQ: QSFT - News): 'The jury is still out. ... I like the core business. I want you to stick with it.'ConocoPhillips (NYSE: COP - News)Denny's (NASDAQ: DENN - News): 'For pecking order, I like Denny's, Brinker Darden ... 'Safeway (NYSE: SWY - News): ' I can't get behind a supermarket other than Safeway.'
Bearish calls:
CBOT Holdings (NYSE: BOT - News): 'We don't need to put any more money in those stocks. We are now in the 'don't buy' mode until that deal [with the Chicago Merc] closes.'FedEx (NYSE: FDX - News): 'I've been let down by FedEx. ... I thought you were having an Internet Christmas. ... even stuck my neck out ... We are done recommending FedEx on this show.'Scottish Power (SPI): 'Ring the register. ... Declare victory, nice investing, well done.'Smithfield Foods (NYSE: SFD - News): 'I want you to sell Smithfield Foods.'American Oriental Bioengineering (NYSE: AOB - News): 'Do not buy ... 'Yum! Brands (NYSE: YUM - News): 'Tough situation, obviously, they had that Taco Bell problem ... For pecking order, I like Denny's, Brinker, Darden ... and then, only then, do I like Yum.'Winn-Dixie (NASDAQ: WINN - News): 'Just came out of bankruptcy ... I can't get behind a supermarket other than Safeway.'Skyworks Solutions (SKWS): 'Ixnay on the Skyworksnay.'Harrah's (NYSE: HET - News): 'You just struck it rich! You go out and you ring the register!'
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Monday, December 25, 2006

Jim Cramer's Mad Money Lightning Round Dec. 22

Bullish calls:
Bank of America (NYSE: BAC - News): 'I like the stock very much here ... good yield, nice growth path, is not going to set the world on fire. ... I say buy Bank of America.'Level 3 Communications (NASDAQ: LVLT - News): 'Some people think I run hot and cold. ... I like LVLT. ... I endorse LVLT ... gonna close a deal soon with Broadwing (NASDAQ: BWNG - News). I am going to stay behind that thing with a TripleBuy.'ConAgra (NYSE: CAG - News): ' ... run, don't walk, into ConAgra, which is one that we nailed nine ways to Sunday.'Quest Software (NASDAQ: QSFT - News): 'The jury is still out. ... I like the core business. I want you to stick with it.'ConocoPhillips (NYSE: COP - News)Denny's (NASDAQ: DENN - News): 'For pecking order, I like Denny's, Brinker Darden ... 'Safeway (NYSE: SWY - News): ' I can't get behind a supermarket other than Safeway.'
Bearish calls:
CBOT Holdings (NYSE: BOT - News): 'We don't need to put any more money in those stocks. We are now in the 'don't buy' mode until that deal [with the Chicago Merc] closes.'FedEx (NYSE: FDX - News): 'I've been let down by FedEx. ... I thought you were having an Internet Christmas. ... even stuck my neck out ... We are done recommending FedEx on this show.'Scottish Power (SPI): 'Ring the register. ... Declare victory, nice investing, well done.'Smithfield Foods (NYSE: SFD - News): 'I want you to sell Smithfield Foods.'American Oriental Bioengineering (NYSE: AOB - News): 'Do not buy ... 'Yum! Brands (NYSE: YUM - News): 'Tough situation, obviously, they had that Taco Bell problem ... For pecking order, I like Denny's, Brinker, Darden ... and then, only then, do I like Yum.'Winn-Dixie (NASDAQ: WINN - News): 'Just came out of bankruptcy ... I can't get behind a supermarket other than Safeway.'Skyworks Solutions (SKWS): 'Ixnay on the Skyworksnay.'Harrah's (NYSE: HET - News): 'You just struck it rich! You go out and you ring the register!'
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Friday, December 08, 2006

Jim Cramer's Market Minute Recap Dec. 7

Ingersoll-Rand (NYSE: IR - News), Caterpillar (NYSE: CAT - News), and Boeing (NYSE: BA - News): Cramer notes that cyclicals are thriving and that "Boeing is just breaking out on every new order."
Denny's (NASDAQ: DENN - News), Rite Aid (NYSE: RAD - News) and Level 3 Communications (NASDAQ: LVLT - News): Cramer discussed three special-situation retailers. Altough Denny's was down, it is in the middle of a comeback, and RAD is headed toward $5 and then to $6, according to Cramer, who reports that the merger will happen and doesn't see problems with unions. Concerning LVLT CEO Jim Crowe's prediction of 25% growth, Cramer said,"That's an amazing number if you can hit it. I don't know how he does it, right now the EBITDA's the same as the interest charges, but I have to bank with him because of the 445% return he gave me in the old MFS Communications."

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Thursday, December 07, 2006

Cramer's TheStreet.com TV Recap: Special Situations

Although financial stocks might be borrowing from Friday's anticipation about the jobs number, he says cyclical stocks are impressive. Specifically, Cramer mentioned Ingersoll-Rand (IR), Caterpillar (CAT) and Boeing (BA) as cyclical stocks that are working. "Boeing is just breaking out on every new order."
Cramer also offered some retailers that are in unique situations. "I think that you just have to be impressed with the special-situation retailers, which just don't seem to go down on bad days."
He highlighted three: Denny's (DENN), Rite Aid (RAD) and Level 3 Communications (LVLT).
He predicted that despite Denny's slower prior month, the restaurant chain is in a "major, major turn." Rite Aid has gone through the $5 level and Cramer said it is heading to $6. He said he is told the merger will go through and not to expect any problems with the unions.
After speaking with LVLT's CEO Jim Crowe on "Mad Money" Wednesday about the 25% growth that Crowe predicted, Cramer said, "That's an amazing number if you can hit it. I don't know how he does it, right now the EBITDA's the same as the interest charges, but I have to bank with him because of the 445% return he gave me in the old MFS Communications."
Other stocks that Cramer believes are getting short shrift are Chevron (CVX), coming off its recent big buyback. Investor dislike of it is ridiculous, he said.
Cramer cautioned against reading too much into Credit Suisse First Boston analyst Ivy Zelman's call on housing, saying she missed a big turn on the homebuilders. However, Cramer said she recommends KB Home (KBH), which he believes is for sale.
He also encouraged people to look at Sysco (SYY), which he considers "a nice slow grower to own right here, right now."
-TheStreet.com

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Friday, December 01, 2006

Jim Cramer's Mad Money Stock Recap Nov. 30

Second Helping: Denny's (NASDAQ: DENN - News)
Cramer says that Denny's is a comeback story that is being ignored because most Wall Street investors are "snobs ..."They don't understand what's going on at these restaurants." Denny's has been selling restaurants and is moving toward a franchise business model to cover its debts. Cramer cited CEO Nelson Marchioli's confident statements about elminiating debt without selling 21 of its stores, and commented that Denny's has an "amazing" opportunity to refinance its low rates. Since Denny's is a small-cap stock, Cramer cautions investors to use limit orders when buying or "you will get ripped off."

Mistaken Downgrade: McGraw-Hill (NYSE: MHP - News), New York Times (NYSE: NYT - News), Dow Jones (NYSE: DJ - News)
Cramer says that AG Edward's downgrade of MHP is an incredible opportunity to buy a diversified media stock. Although people consider NYT and the Wall Street Journal as the Harvard and Yale of newspapers, investors would be better off buying the universities, comments Cramer : "In 50 years, I doubt anyone will even read newspapers." In any case, NYT and DJ have two classes of stock which prevent takeovers. Cramer calls McGraw Hill "The only media play that isn't really a media play... it's more like a private-equity play," because every private-equity deal needs to be financed with bonds rated by Standard & Poors which MHP owns. "It is a real company, with real growth, real profits and real dividends," Cramer said. "The AG Edwards downgrade was wrong."

Sell Block: Wal-Mart (NYSE: WMT - News)
Cramer urged investors to sell this stock "six ways from Sunday" because the retail giant is suffering from the "shutdown of the immigrant buyer" due to a tough I.D. verification program in New Jersey which prevents illegal immigrants from renewing their driving licenses. Since the stores are usually not within walking distance of residential communities, "No car, no Wal-Mart," concludes Cramer who adds, admitting that the subject is a touchy one: "If a liberal state like New Jersey is cracking down like this, you can only imagine what other states are doing."
CEO Interview: Rick Rosenfield, California Pizza Kitchen (NASDAQ: CPKI - News)
When Cramer asked Rick Rosenfield how he would reassure those who are worried about his company, he admitted, "We did have some slippage, but I haven't seen much of a downgrade ... Our investors and analysts have stood by us." He added that the restaurant's profitablility and fundamentals are solid. Rosenfield went on to define "slippage" as bureacracy which is out of the company's control. When asked if he was concerned about the waning popularity of pizza, Rosenfield stressed the restaurant's diverse menu, which includes salads, appetizers and pasta. Cramer would take advantage of CPKI's slippage to pick up some stock, because he likes the restaurant.
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