Jim Cramer Blog

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Quest Diagnostics (NYSE:DGX - News). DGX's PowerRating (for Traders) is 6.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
ConocoPhillips (NYSE:COP - News). COP's PowerRating (for Traders) is 7.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
LSB Industries (NYSE:LXU - News). LXU's PowerRating (for Traders) is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Continental Airlines (NYSE:CAL - News) . CAL's PowerRating (for Traders) is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
American International Group (NYSE:AIG - News). AIG's PowerRating (for Traders) is 4.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Hot Topic (NasdaqGS:HOTT - News). HOTT's PowerRating (for Traders) is 3.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
KB Home (NYSE:KBH - News). KBH's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: AIG, CAL, COP, DGX, Hot Stocks, HOTT, KBH, LXU

General Motors (GM): Hit with its first nationwide strike in 37 years, and the crew at Fast Money was focused on what it means to the market. Adami: has been consistently negative on GM and would rather own Ford (F). Macke agrees that GM is a sell, unless they take a huge hit on health care without giving job guarantees.
Online Ad Play: Microsoft (MSFT) made headlines today as rumors floated around Wall Street that the firm is planning on taking a 5% stake in Facebook.com. Kourosh Karimkhany, manager of wired digital at Conde Naste, sees Microsoft's play for Facebook as one for software development. Macke: time to get long MSFT. Najarian prefers ValueClick (VCLK) and Focus Media (FMCN). Tuesday will be a big day for Microsoft as they will release the hyped up Halo 3 game which is predicted to be the biggest selling game ever.Macke proposes investors play Halo 3 with trades in Gamestop (GME) and Activison (ATVI). He advises getting out of Sony (SNE).
Drug Trade: The UBS health care industry conference could help jump start some of the pharmaceutical and biotech stocks this week. Adami suggests Pfizer (PFE). Najarian: Myraid Genetics (MYGN) and Quest Diagnostics (DGX). Macke: Johnson & Johnson (JNJ).
Burning Down the House: The homebuilders sector was annihilated on Monday, as investors fear more bad news is on the way when the government reports existing home sales data Tuesday. Adami advises not to trade this sector unless you have to. Finerman: stay away from WCI Communities (WCI) and Hovnanian (HOV).
Chartology: Technical analysis expert Jeff DeGraaf was on the show. DeGraaf likes the technology sector right now and he thinks it will outperform in the coming months. He feels positive about tech because the sector was strong in the summer when it normally tends to trade down. DeGraaf looked at Fedex (FDX) and the chart isn't showing bullish trends. Adami: doesn't like FDX until it trades above $121 and DeGraaf agreed. DeGraaf: loves the pattern in gold and continues to be bullish longer term on the yellow metal. He would look to buy gold on pullbacks.
Word on the Street: Target (TGT) lowered same-store sales on Monday. SABMiller reported an 11% jump in beer volumes on Monday. Macke likes Molson Coors (TAP). Najarian likes BHP Billiton (BHP) and copper and gold producer Freeport McMoRan (FCX).
Alternative Energy: NRG Energy (NRG) submitted its first application for a new US nuclear reactor in 30 years. Najarian would play this news with (BHP) Billiton and Cameco (CCJ). Finerman: Flowserve (FLS) and Adami likes Fluor Corp (FLR). Macke would just play NRG Energy (NRG). Trina (TSL) traded higher 8% as solar stocks were active with a major solar conference started. Najarian likes TSL.
Pops & Drops
Pops- Crocs (CROX) traded up 9%. Adami thinks a big short was forced to cover on Monday. He would take profits on CROX.
NYSE Euronext (NYX) traded up 2% off a JP Morgan upgrade. Finerman continues to be long this stock and she feels it has more room to run higher.
Las Vegas Sands (LVS) traded up 7% off a Jeffries upgrade. Macke says time to get out.
PrimeWest Energy Trust (PWI) exploded 32% on news that Abu Dhabi National Energy Co. bought them out. Finerman hopes we keep seeing deals like this.
EMC Corporation (EMC) traded up 8% after Citigroup and Bear Stearns upgraded the name. Adami still likes it.
Drops- AMR Corp (AMR) fell 14% after revenue forecasts missed Wall Street expectations. This drop took down all the airline companies for the day.
Harman (HAR) dropped 6% after the company said profits would miss Wall Street expectations. Finerman wouldn't touch it.
Adtran (ADTN) plunged 14% after the telecom company warned on 3rd quarter earnings and revenue. Macke suggests avoiding these guys on the telecom side.
Final Trade:
Finerman: likes NYMEX (NMX)
Najarian: ValueClick (VCLK).
Adami: Pfizer (PFE) for its cheap valuation.
Macke: Short Dow30 ProShares (DOG).

Labels: ATVI, CNBC, CROX, DGX, EMC, Fast Money, FDX, FMCN, GM, GME, HOV, JNJ, MSFT, MYGN, NYX, pfe, SNE, VCLK, WCI

Shares of medical testing company Quest Diagnostics Inc. jumped Tuesday after the company reported a 7 percent rise in second-quarter profit and narrowed its guidance for the full year.
The stock rose $3.41, or 6.5 percent, to $56.21 in midday trading. Shares have traded between $47.98 and $64.69 over the last 52 weeks.
On Tuesday the company said profit rose on a mix of higher revenue aided by the buyout of AmeriPath Inc. and lower costs. It also raised the lower end of its outlook for 2007 adjusted earnings to $2.80 per share from $2.75.

Labels: DGX, Quest Diagnostics Inc.

The major market averages all closed decidedly lower on the session, with the Dow closing down -226 points and the tech-heavy Nasdaq losing nearly -51 points. The broader S&P 500 also ended the session lower by -30 points. Equities sold off amid continued weakness in the mortgage markets as was evident with earnings news out by one of its largest players. Investors did not get much of a boost from a sell-off in the price of crude, as prices ended down -$1.33.
Corporate earnings continued to stream in on the day. Chemical giant DuPont (NYSE: DD - News) reported earnings of $972 million, or $1.04 a share, compared to earnings of $975 million, or $1.04 a share, a year ago. Sales grew 6% to $7.9 billion in the period ended June 30th. Analysts were expecting the company to report EPS of $1.06 a share on sales of $7.86 billion. It cited weak auto and housing industries that contributed to the miss on both EPS and revenue. Shares finished the session down -6.3%.
The biggest U.S. mortgage lender, Countrywide Financial (NYSE: CFC - News), reported a -33% drop in earnings to $485 million, or 81 cents a share, compared to earnings of $722.2 million, or $1.15 a share, last year. Revenue fell -15% in the latest quarter to $2.55 billion. The lender also slashed its 2007 profit forecast to $2.70-3.30 a share, down from its April estimate of $3.50-4.30 a share.
Not all earnings were lackluster, however, as beverage giant PepsiCo (NYSE: PEP - News) said earnings rose to $1.56 billion, or 94 cents a share. Total revenues rose 10% to $9.61 billion, from 8.71 billion a year ago. The results easily topped Wall Street analyst estimates of 89 cents a share. The company now sees 2007 EPS of $3.35, compared to previous estimates of $3.30. In the defense arena, Lockheed Martin (NYSE: LMT - News) said profits rose citing strength in all four of its major divisions. For the second quarter, the company reported earnings of $778 million, or $1.82 a share, up from $580 million, or $1.34 a share, in the year-ago period. Sales rose to $10.65 billion. The results handily beat analyst estimates of a profit of $1.53 a share. The defense contractor also raised its 2007 profit forecast to $6.65-6.80 a share, up from $6.20-6.35 a share, and upped its sales guidance to $41-41.75 billion, up from its previous view of $40.35-41.35 billion. Shares rose 3.6% on the session.
Elsewhere, financial services company American Express (NYSE: AXP - News) posted a 12% rise in quarterly profit fueled by cardmember spending. Net income totaled $1.1 billion, or 88 cents a share, up form $945 million, or 77 cents a share, in the year-ago period. Revenue net of interest expense rose 9% to $7.1 billion, up from $6.5 billion. Analysts were looking for EPS of 86 cents. Shares of Quest Diagnostics (NYSE: DGX - News), meanwhile, rose 6.9% after the firm reported results that beat analyst EPS estimates by 5 cents. Earnings rose 7% to $141.3 million, or 73 cents per share, up from $132 million, or 66 cents per share, a year ago.
By the BullMarket.com Staff

Labels: AXP, CFC, DD, DGX, LMT, PEP

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Pozen Inc. Sep 22.5 Calls (NasdaqGM:POZN - News). POZN's PowerRating is 7.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Google Inc. Aug 500 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating is 7.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Baidu.com Aug 200 Calls (NasdaqGS:BIDU - News). BIDU's PowerRating is 9.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Aug 145 Puts (NYSE:MA - News). MA's PowerRating is 3.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Raytheon Co. (NYSE:RTN - News). RTN's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Quest Diagnostics Inc. (NYSE:DGX - News). DGX's PowerRating is 7.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Countrywide Financial Corp. (NYSE:CFC - News). CFC's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: BIDU, CFC, DGX, GOOG, MA, POZN, RTN, stock options

Lights, Camera, Auction: Sotheby's (NYSE: BID)
Even though it has doubled from where he recommended it last year, Cramer still likes BID as an inflation stock and as a play on conspicuous consumption. When an inflation threat looms, it is time to pick up gold and collectibles, comments Cramer, and this auction house has seen a dramatic run up of 31% in four weeks, strong earnings growth, with numbers on the low end. While some may suspect that the huge auction in May is already priced into the stock, Cramer thinks the market is not behaving rationally, and would buy BID, sell it when the auctions begin on May 8, and pick it up again on a weakness for those who want BID as an investment.
Fertile Hopes: Mosaic (NYSE: MOS) and CF Industries (NYSE: CF)
Cramer commented the rest of the world is leaving the US behind when it comes to nuclear energy, and urged investors take a look at MOS or CF as speculative stocks. Both companies have the technology to turn phosphates from fertilizer into uranium. Although they have not been discussing this technology openly, Cramer thinks MOS and CF are being "coy" and will want to profit from uranium's rise to $113 per pound. Although Cramer wouldn't mind buying CF even after its big move, he prefers MOS, since "Mosaic is the largest producer of phosphate on earth," Cramer said. He thinks both companies are worth buying as long as uranium stays over $50 and would invest soon "before the market starts to price in the new uranium upside" for them.

Next Week's Game Plan: Saks (NYSE: SKS - News), Federated Department Stores (NYSE: FD ), Steel Dynamics Inc. (NasdaqGS: STLD), Coca-Cola Co. (NYSE: KO), Wells Fargo & Co. (NYSE: WFC) and Washington Mutual Inc. (NYSE: WM), Annaly Capital Management (NYSE: NLY), United Technologies Corp. (NYSE: UTX), eBay Inc. (NasdaqGS: EBAY), American Standard Companies, Inc. (NYSE: ASD), Harley Davidson (NYSE: HOG - News), Quest Diagnostics (NYSE: DGX), Schering-Plough Corp. (NYSE: SGP), intuitive Surgical Inc. (NasdaqGS: ISRG), Schlumberger Limited (NYSE: SLB), Grey Wolf (AMEX: GW)
While SKS and FD are down because of disappointing quarters, Cramer reiterated his suggestion to give the companies the benefit of the doubt and would buy them on Monday. He commented STLD is in a "sweet spot" and is the perfect takeover target which would buy under $45. A "total breakout quarter" is in store for KO on Tuesday, according to Cramer, who points out that KO is an ideal weak dollar stock with good prospects in Japan, and he suggests paying up to $50.85. Cramer is wary of WM and WFC which have mortgage exposure and would hedge by picking up NLY. He admits UTX "humiliated" him when it rose as he was bearish, and now that he is impressed with the stock, Cramer calls it a "gift" below $65. On Wednesday, Cramer's "favorite internet stock" and value play, Ebay reports. Cramer would buy ASD before it splits next quarter and would not be intimidated by CEO Fred Poses' selling of the stock, since the move was planned. On the other hand, HOG has too much inventory, and Cramer calls it a heartbreaking stock. Thursday a "really big day,"Cramer commented, adding Quest Diagnostics has gone up, but is still cheap. He believes the takeover rumors and says, " I don't think you can afford not to be in DGX." Cramer also likes SGP which he believes is going to $30. He sees a "blowout" coming for ISRG because of its advanced surgery technology. Finally, Cramer would get into SLB if it is below $75 on Friday, because he predicts a "monster quarter." He would own SLB for a trade up to $80. In his "Mad Mail" segment, Cramer called the land driller GW "no good" and said "You have to be offshore."
Published By SeekingAlpha

Labels: ASD, bid, CF, DGX, Ebay, FD, GW, HOG, Jim Cramer, KO, Mad Money, MOS, SGP, SKS, SLB, STLD, UTX, WFC, WM

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.

Google Inc. June 520 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 6.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Research In Motion May 130 Puts (NasdaqGS:RIMM - News). RIMM's PowerRating is 7.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Dendreon May 15 Calls (NasdaqGM:DNDN - News). DNDN's PowerRating is 8.
Quest DiagnosticsMay 55 Calls (NYSE:DGX - News). DGX's PowerRating is 3.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
iShares MSCI Emerging Markets Index June 115 Puts (AMEX:EEM - News). EEM's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Electronic Data Systems (NYSE:EDS - News). EDS' PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None Today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
GlaxoSmithKline (NYSE:GSK - News). GSK's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: DGX, DNDN, EDS, EEM, GOOG, GSK, RIMM, stock options

Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Dow Chemical (NYSE:DOW - News). DOW's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Vanda Pharmaceuticals (NasdaqGM:VNDA - News) & Advance America (NYSE:AEA - News). VNDA's PowerRating is 8, and AEA's PowerRating is 6.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Stride Rite (NYSE:SRR - News). SRR's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Allergan (NYSE:AGN - News). AGN's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Quest Diagnostic (NYSE:DGX - News). DGX's PowerRating is 4.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
NutriSystem (NasdaqGS:NTRI - News). NTRI's PowerRating is 2.
PowerRatings are courtesy of PowerRatings.net

Labels: AEA, AGN, DGX, DOW, Hot Stocks, NTRI, SRR, VNDA

Biosite (NasdaqGS: BSTE), Cepheid (NasdaqGM: CPHD), Becton Dickinson (NYSE: BDX - News)
Now that BSTE has risen on a takeover bid from Beckman Coulter, Cramer suggests selling and getting into a small diagnostic play which may have a similar story: Cepheid. The Veterans Administration is choosing between CPHD and BDX to provide staph-infection tests in hospitals, and the question isn't who the winner will be, but whether the deal will move the needle. Cramer doesn't think a contract will affect BDX, but will cause CPHD to soar. Also, CPHD is not likely to suffer if it isn't given the contract, may be an attractive takeover bid, and Cramer notes that while the Democrats detest Big Pharma, the diagnostics sector is "hot." He would wait three days and use limit orders when buying CPHD.
Benefit of the Doubt: Coach (NYSE: COH - News) and VF Corp. (NYSE: VFC - News)
"I am a skeptical, cynical, paranoid man," confessed Cramer, but he added, "there are times - when trust will make you more money than distrust." He unveiled his new "Benefit of the Doubt" series during which he will discuss CEOs who are worth trusting even when they "mess up." He mentioned Lew Frankfort, CEO of upscale handbag manufacturer, Coach, who told Cramer in May that COH's missed number was a "one time thing." Those who paid attention doubled their money, said Cramer. Mackey McDonald, CEO of VFC is another name Cramer trusts and he said to use every dip in VFC as a buying opportunity.
New Template: PDL BioPharma Inc. (NasdaqGS: PDLI)
Cramer introduced his new template: "Underperforming management, plus activist, equals money!" He used PDLI as an example, a company which gets millions of dollars in royalties, but “spent it like a drunken sailor." However, Third Point LLC has moved in to acquire 7.5% of the company, or 8 million shares; "Third Point is going to do all the heavy lifting," said Cramer, and will start making money for investors. The stock is estimated to go from $20 to $39 or $59.
Mad Mail: Weatherford International (NYSE: WFT - News), Transocean (NYSE: RIG - News), Quest Diagnostics (NYSE: DGX - News)
Cramer told a viewer he preferred RIG to WFT because RIG has less exposure to Canada. Concerning DGX, Cramer said it has a big buyback and is cheap; "it is a bull stock."
Published By SeekingAlpha

Labels: BDX, BSTE, COH, CPHD, DGX, Jim Cramer, Mad Money, RIG, VFC, WFT

Bullish calls:
Suncor Energy (NYSE: SU - News): 'If you want to be tar sands, oil sands, you're going to have to go with SU or ECA.'EnCana (NYSE: ECA - News)Verizon (NYSE: VZ - News): ' You've got VZ selling cheap... You've got T selling cheap.'AT&T (NYSE: T - News)Hewlett-Packard (NYSE: HPQ - News): 'I know a lot of people are saying, 'Jim, shouldn't you run tail; shouldn't you just admit that HPQ wasn't a good quarter?...' No! HPQ was a good quarter. The guidance was good. Mark Hurd has done a great job ... I am telling you to back up the truck HPQ - right here at $40. I see good quarters out for the next 8 quarters ... triple buy!'Vasco Data (NasdaqCM: VDSI): 'This is a data security company that looks so much more like every other one that has been taken over, and it has good earnings ... I would buy it, but not with reckless abandon, because it's at its 52-week high.'Devon Energy (NYSE: DVN - News): ' ... if you want ... a takeover, and possibility of big numbers in the out year ... move into DVN. DVN has got that giant Gulf of Mexico find, and the stock is only up 4 points from when it was announced. Pull the trigger on DVN.'Arch Coal (NYSE: ACI - News): 'How about that buyback? It's gigantic. The stock is up 10% from when I recommended it... ACI is not done going up!'Peabody (NYSE: BTU - News): 'I also like BTU.'General Maritime (NYSE: GMR - News): 'I have been telling people that, if you have to own a tanker stock - if you just insist on owning one - own GMR. GMR had a really beautiful quarter. They've returned unbelivable amounts of money to their shareholders. That is one of the great companies. Buy, buy, buy!'Prudential (NYSE: PRU - News): ' Stick with it. It goes to $100.'Toyota (NYSE: TM - News): 'TM will be the largest hirer and major company in this country over the next five years. There will be no backlash. I remain a buyer of TM.'Quest Diagnostics (NYSE: DGX - News): 'People think the margins are bad ... The quarter is going to be good! The margins are good! The stock is cheap! I would buy, buy, buy DGX!'
Bearish calls:
Oilsands Quest (AMEX: BQI - News): 'No, c'mon!... If you want to be tar sands, oil sands, you're going to have to go with SU or ECA.'Cellcom Israel (NYSE: CEL - News): ' Way too dicey ... Just pull the trigger to exit.'Sprint (NYSE: S - News): 'Stay away from Sprint.'Petrohawk Energy (NasdaqGS: HAWK): 'It's been a punching bag, because of that natural gas exposure ... I would swap out of the HAWK, and move into DVN.'Frontline (NYSE: FRO - News): 'I say ix-nay on the FRO.'Tronox (NYSE: TRX - News): '... I don't like TiO2. It's too commoditized.'
Published By SeekingAlpha

Labels: ACI, BQI, BTU, CEL, DGX, DVN, ECA, FRO, GMR, HPQ, Jim Cramer, Lightning Round, Mad Money, PRU, S, SU, TM, TRX, VZ

Mad Mergers: Sirius Satellite Radio (NasdaqGS: SIRI) and XM Radio (NasdaqGS: XMSR)
Cramer smells "desperation" in the intended merger between SIRI and XMSR, and predicts that there will be a spate of anticompetitive mergers ahead of the possibility of a Democrat winning the White House, an event which would discourage future monolopistic mergers. Cramer dedicated the program to discussing ten likely scenarios.
10. Kroger (NYSE: KR - News) and Safeway (NYSE: SWY - News)9. Laboratory Corp. (NYSE: LH - News) and Quest Diagnostics (NYSE: DGX - News): Cramer notes that these two companies have been "locked in a ferocious price war to win the HMO business." Their slashed prices have meant less profits, and "it is time for them to get on the anticompetitive bus."8. Carnival (NYSE: CCL - News) and Royal Carribbean (NYSE: RCL - News)7. Office Depot (NYSE: ODP - News) and Office Max (NYSE: OMX - News)6. Cardinal Health (NYSE: CAH - News) and McKesson (NYSE: MCK - News): Cramer notes that drug distributors have "been at war for wages" hurting themselves by lowering prices. He sees some major mergers in the sector for the next couple of years.5. BP (NYSE: BP - News) and Chevron (NYSE: CVX - News): BP would do well to merge with CVX, according to Cramer, because of CVX's excellent management.4. Lockheed Martin (NYSE: LMT - News) and Northrop Grunman (NYSE: NOC - News): Cramer notes that this merger is likely because the Pentagon doesn't want a lot of vendors.3. Comcast (NasdaqGS: CMCSA) and Time Warner (NYSE: TWX - News)2. Gannett (NYSE: GCI - News) and McClatchy (NYSE: MNI - News): Cramer believes that this merger is essential because it could "save the newspaper business."1. Union Pacific (NYSE: UNP - News) and Burlington Northern (NYSE: BNI - News): Cramer says that this is his favorite possible merger.
Cramer also sees Norfolk Southern (NYSE: NSC - News) and CSX (NYSE: CSX - News) pairing up, and describes all of these possibilities as "a wave of mergers that will be great for profits."

Labels: BNI, BP, CAH, CCL, CVX, DGX, Jim Cramer, KR, LH, LMT, Mad Money, MCK, ODP, OMX, RCL, SIRI, SWY, TWX, UNP, XMSR

Fallen Angel: VF. Corp (NYSE: VFC - News)
Cramer discussed "fallen angels" or stocks which deserve to trade at a higher multiple, but are down because of the market's stupidity. Cramer appaluds VFC's move in selling its "horrible" intimate apparel business which had "razor-thin margins" in order to let its more successful businesses thrive. However, investors did not hear this good news and instead paid too much attention to the company's disappointment with its fourth quarter and consequently "threw it down the pit." The stock dropped 7%, but Cramer predicts that it will miss its quarter by a mere three cents, and it should return to where it was and go higher after it reports on February 6.
Bad Press for Amgen (NasdaqGS: AMGN)
Cramer's second fallen angel, Amgen, was the victim of a negative headline which alleged that its Aranesp drug was potentially fatal when the patients who died were not expected to recover, regardless of the medicine. Low guidance was another factor in the stock's slip, but Cramer says that AMGN historically is conservative with guidance and expects to see an upside surprise. In addition, he notes that the company has drugs for osteoperosis and colon cancer in the pipeline.

Oxford Blues: Quest Diagnostic (NYSE: DGX - News), United Health (NYSE: UNH - News)
Cramer's third fallen angel is DGX, which fell apparently on the news of its split with Oxford Health, but Cramer believes that this factor was already built into the price. Cramer would buy DGX now, since it reported a good quarter and is cheap because of its low guidance. Although DGX thinks it will lose UNH, since UNH owns Oxford, Cramer does not believe this will happen and suspects DGX of low-balling, and predicts lackluster expectations will cause the stock to soar.CEO Interview, Peter van Stolk, Jones' Soda (JDSA)
Cramer asked Peter van Stolk if Jones' increase should continue now that its exclusive soda contract with Target has expired. While van Stolk commented that Target is a great retailer and that he expects to continue working with them, new opportunities should cause the stock to ramp. One of Jones' major selling points is that it uses pure cane sugar rather than corn syrup."Corn is for cars, and sugar is for sodas," he quipped. Since Jones has had a "monster move," Cramer would wait for it to come down a bit before buying.
Published By SeekingAlpha

Labels: AMGN, DGX, JDSA, Jim Cramer, Mad Money, UNH, VFC

OccuLogix Inc. (NasdaqGM:OCCX - News) shares gained after the Toronto-based developer of ophthalmic devices said it has obtained investigational device exemption clearance from the Food and Drug Administration to begin its Phase III study of the Rheo procedure to treat the dry form of age-related macular degeneration. If successful, the company expects the study to support its application to the FDA for approval to market the Rheo system in the U.S.
Par Pharmaceutical (NYSE:PRX - News) shares advanced after the Woodcliff Lake, N.J.-based company said it has received final approval from the Food and Drug Administration of its abbreviated new drug application for propranolol hydrochloride extended release capsules. Propranolol HCI, the generic equivalent of Wyeth's (NYSE:WYE - News) Inderal-LA, is used to treat hypertension, angina pectoris due to coronary atherosclerosis, migraine and hypertrophic subaortic stenosis. Annual U.S. sales of Inderal-LA are roughly $215 million, Par said.
Premier Community Bankshares' (NasdaqCM:PREM - News) shares soared after the Winchester, Va.-based bank said it has agreed to be acquired by United Bankshares Inc. (NasdaqGS:UBSI - News). Premier shareholders will be able to elect to receive either United Bakshares stock, cash, or a combination. The stock consideration will be at a fixed exchange ratio of 0.93 shares of United common stock for each share of Premier common stock, and the cash consideration will be $34 a share. Premier had $900.7 million in assets at Dec.31, 2006, and 26 offices through three banking subsidiaries.
Quest Diagnostics (NYSE:DGX - News) was upgraded to overweight from neutral at J.P. Morgan. The firm said it expects the company to become more active in the acquisitions market. "Based on our conversations with Quest's management, we now believe the company will become more aggressive to act upon its long-stated goal of expanding overseas," the broker said. "In addition, we believe current guidance for the impact of the recent contract losses is too conservative, and that results over the next few quarters will prove to be better than current expectations," it added.
Silicom Ltd. (NasdaqCM:SILC - News) shares surged after the Israel-based supplier of networking products reported fourth-quarter net earnings of $1.07 million, or 20 cents a share, up from $473,000, or 11 cents a share, in the year-ago period. Revenue rose to $5.02 million from $3.13 million.
Sturm, Ruger & Co. (NYSE:RGR - News) shares gained after the Southport, Conn.-based maker of firearms and steel investment castings said it has authorized a repurchase program of up to $20 million of its common stock.
Synagro Technologies (NasdaqGM:SYGR - News) agreed to be acquired by The Carlyle Group for $462 million. The total enterprise value of the deal is $772 million, reflecting the assumption of $310 million in debt. The deal values Synagro shares at $5.76 each, a nearly 29% premium to Friday's closing price of $4.48. Synagro, a Houston-based provider of biosolid recycling services, and Carlyle expect the transaction to close in the second quarter. Synagro added that it plans to continue paying dividends on its common stock through the closing of the deal.
Tesoro Corp. (NYSE:TSO - News) said fourth-quarter earnings rose to $158 million, or $2.28 a share, from $69 million, or 97 cents a share, a year earlier. Analysts surveyed by Thomson Financial had been expecting earnings of $1.91 a share, on average. Revenue for the quarter ending December fell to $4.02 billion from last year's $4.36 billion. The company also agreed to acquire certain California assets of Shell Oil Products, including a Los Angeles refinery and 250 branded retail sites, for $1.63 billion.
Trex Co. (NYSE:TWP - News) said it will restate its results for 2003 through 2005 and the first nine months of 2006 to correct errors related to the recording of certain expenses. The maker of composite decking and railing expects the cumulative effect of the restatements to increase reported net income for 2003 through 2005 by roughly $200,000, and to increase reported net income for the first nine months of 2006 by roughly $200,000, or 2 cents a share.
Tyson Foods' (NYSE:TSN - News) first-quarter earnings rose 46%, boosted by higher profits in its chicken, pork and prepared foods units, and cost-cutting efforts that lowered expenses. The Springdale, Ark., meat processor reported first-quarter earnings of $57 million, or 16 cents a share, up from $39 million, or 11 cents a share, a year earlier. Tyson said sales for the quarter ended Dec. 30 rose 1.6% to $6.56 billion from $6.45 billion a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 6 cents a share on revenue of $6.38 billion. In addition, Tyson affirmed its earlier earnings outlook for its 2007 fiscal year, saying it expects earnings of 50 cents to 80 cents a share. The company also said it expects its second quarter to be profitable.
U.S. Airways Group (NYSE:LCC - News) is prepared to add a $1 billion cash sweetener to its offer to acquire Delta Air Lines (Other OTC:DALRQ.PK - News), according to a Wall Street Journal report. The newspaper, citing people familiar with the matter, said Tempe, Ariz.-based U.S. Airways could lift its hostile takeover offer to $10.8 billion in cash and stock if Delta's official creditors committee demands that the bankrupt carrier allow due diligence by its suitor. The creditors would also have to request that the bankruptcy court overseeing Delta's Chapter 11 bankruptcy proceedings postpone a February hearing on the Atlanta-based airline's restructuring proposal, and they'd have to agree to support the start of a formal antitrust review of the proposed merger as well.
Van der Moolen (NYSE:VDM - News) appointed Michiel Wolfswinkel as chief financial officer, effective March 1. Wolfswinkel will succeed interim-CFO Jan Van de Walter. Van der Moolen recently announced it was cutting 30% of the staff at its NYSE specialist unit as the exchange completed the transition to its hybrid trading system.

Published By MarketWatch

Labels: DGX, LCC, OCCX, PREM, PRX, RGR, SILC, SYGR, TSN, TSO, TWP, UBSI, VDM, WYE

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.
ACE Limited (NYSE:ACE - News). ACE's PowerRating is 6.
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.
Newpark Resources (NYSE:NR - News). NR's PowerRating is 7.
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.
SunPower Corp. (NASDAQ:SPWR - News). SPWR'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.
AFLAC Inc. (NYSE:AFL - News). AFL'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.
Apollo Group (NASDAQ:APOL - News). APOL's PowerRating is 3.
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.
Halliburton (NYSE:HAL - News). HAL's PowerRating is 3.
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.
Quest Diagnostics (NYSE:DGX - News). DGX's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: ACE, AFL, APOL, DGX, HAL, NR, SPWR

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.
ACE Limited (NYSE:ACE - News). ACE's PowerRating is 6.
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.
Newpark Resources (NYSE:NR - News). NR's PowerRating is 7.
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.
SunPower Corp. (NASDAQ:SPWR - News). SPWR'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.
AFLAC Inc. (NYSE:AFL -