Jim Cramer Blog

Bullish calls:
Walt Disney (DIS): 'Again, I don't play for DIS, but I'm certainly not going to blast it. I think it's a good company.' Brookfield Asset Management (BAM): 'They've got terrific, terrific management … BAM will come back!' Hewlett-Packard (HPQ): 'HPQ has the business model and the leverage!' SunPower (SPWR) First Solar (FSLR) Johnson Controls (JCI): 'There was a man who just downgraded it … He's taken a very short-term approach. JCI has an unbelievably good business in climate control and, when autos come back, that stock's going to roar.' J. Crew (JCG) Costco (COST)
Bearish calls:
Wolseley (WOS): 'I can't endorse that company. Those companies are all doing badly.' Lowe's (LOW): 'I don't even recommend Lowe's anymore on this show.' Fannie Mae (FNM): 'It's just too hard to value right now...They just cut the dividend. Guys are going to sell it. I'm not there...' Automatic Data Processing (ADP): 'No. It's just a flatlined name. You need a stronger economy for that play.' Dell (DELL): 'DELL can buyback as many shares as it wants. HPQ has the business model and the leverage!' LDK Solar (LDK): 'No, c'mon man! The finances are unclear!' Cabela's (CAB): 'That company is just simply one of the worst publicly-traded companies I've ever seen.' South Financial Group (TSFG): 'Good stock in a really bad neighborhood … I can't touch the darn thing. Sorry to be so negative.' Home Depot (HD): 'That group is too darn hard.' Solarfun Power (SOLF)
Published By SeekingAlpha.com

Labels: ADP, BAM, CAB, COST, DELL, DIS, FNM, FSLR, HD, HPQ, JCG, JCI, Jim Cramer, LDK, Lightning Round, LOW, Mad Money, SPWR, TSFG, WOS

Chip stocks traded lower after Morgan Stanley downgraded Intel (INTC), Advanced Micro Devices (AMD) and NVIDIA (NVDA) to underweight. CSX Corporation (CSX) traded lower after it was also downgraded by Morgan Stanley. Mattel (MAT) and Hasbro (HAS) traded lower after BMO Capital Markets downgraded the toy sector. Macke: the downgrade is about taking gains and he is still long Hasbro and Disney (DIS).
Carl Icahn: raised his stake in Temple-Inland (TIN) to 8.9% and BEA Systems (BEAS) to 11%.
Word on the Street
Wheat traded lower for the second day in a row on bearish planting forecasts. Najarian: the pullbacks in commodity names like BHP Billiton (BHP) and Freeport-McMoRan (FCX) are buying opportunities. He also sees continued buying in October call options on EchoStar (DISH). Macke agrees.
iShares FTSE/Xinhua China 25 Index ETF: falls 5% after a huge 2-day run.
TXU (TXU): Dylan Ratigan reported that financing for a TXU (TXU) buyout could be set to go next week. If this deal closes it will be the largest private equity deal ever. Finerman says that Guitar Center (GTRC) is also close to getting a deal done. Finerman's play on this very recent trend is Lehman Brothers (LEH) and Goldman Sachs (GS).
Blackberry
The Blackberry has been a gigantic hit for Research In Motion (RIMM) and investors have seen the stock for RIMM go up 126% on the year. Global Crown Capital increased the RIMM target price to $180 a share.
Face2Face
First writer asked about China Finance Online (JRJC), China BAK Battery (CBAK) and even Baidu.com (BIDU). Macke says neither bubble nor exuberance come to mind. He tells writer that these are momentum plays and you should treat them as such.
Another writer asked for some insight into what Garmin's (GRMN) recent volume is telegraphing? It was 7 times the average volume to the downside when the NAVTEQ (NVT) deal was announced Monday. Finerman: this is disruptive for two reasons. First, it makes the valuation of Garmin rich, and second it's a problem for Garmin to have someone buy the software it needs to make its product. Finerman owns NAVTEQ for a play on Garmin taking it over.
Pops & Drops
Pops- Panera Bread (PNRA) traded up 8%. Adami thinks Panera will rally into earnings and then it will be time to sell it.
Harley Davidson (HOG) traded up 6% off. Najarian says its still way off the highs.
Kaiser Aluminum (KALU) popped 7%. Finerman agrees that the stock is still undervalued.
Circuit City (CC) traded up 5%. Macke: Get out of Circuit City while you can.
KB Home (KBH) traded up 5%. Adami says take the profits and run.
NYSE Euronext (NYX) traded up 2%. Adami says $85 will be big resistance for NYX.
Drops- Wynn (WYNN) fell 10% and Las Vegas Sands (LVS) fell 12% off of disappointing growth numbers for Macau. Najarian says the numbers out of Macau were not as big as people thought they would be, hence the disappointment.
Midway Games (MWY) fell 5%. Macke: MWY is married to Sony whose Playstation has tough competition against the Nintendo Wii.
Final Trade
Macke: sell homebuilders and book the short-term gains.
Finerman: going with Icahn and BEA Systems (BEAS).
Najarian likes Apple (AAPL).

Labels: AMD, BEAS, BHP, CNBC, CSX, DIS, DISH, Fast Money, Fast Money Recap, FCX, HAS, INTC, MAT, TIN

CFCStocks meandered most of the day as credit concerns continued to pressure the market. Bulls were hesitant to keep the recent rally going as Bears attempted to gain control. At the close, the tug-of-war ended with the Dow ending essentially flat on the session. Both the Nasdaq and S&P finished in negative territory. Oil, on the other hand, rose 57 cents to close at $69.83.
In economic news, the Labor Department said that initial jobless claims fell by -2,000 to 322,000, the lowest level since August. The four-week average, meanwhile, rose by 4,750 to 317,750. The number of people continuing to collect unemployment benefits rose by 16,000 reaching 2.57 million.
In corporate news, shares of the nation's largest mortgage company Countrywide Financial (NYSE: CFC - News) rose 0.9% after it announced that banking behemoth Bank of America (NYSE: BAC - News) has invested $2 billion in the company. Under the terms of the deal, Bank of America has acquired $2 billion in the form of convertible preferred stock yielding 7.25% annually. It will not have any voting rights under the preferred shares. It will have the option of converting its shares into common shares of the company at a price of $18 a share, a steep discount to the current value of CFC's stock price. The investment comes in the midst of an industry-wide shakeout following a severe credit crunch.
With much of the earnings season in the books, specialty retailers seem to be the last in line to report. Clothing retailer Children's Place (Nasdaq: PCLE - News) today reported a loss of -$27.1 million on sales of $424.3 million for its second quarter. EPS numbers weren't supplied due to an SEC inquiry. Same-store sales fell -1%. It also cut its full-year profit forecast to $2.25-2.40 a share, well below its previous range of $3.45-3.55 a share. Shares plunged -16.9% on the earnings announcement and also on news that it is experiencing troubles with its licensing deal with Disney (NYSE: DIS - News).
Video game retailer GameStop (NYSE: GME - News), conversely, blew the cover off its second-quarter earnings. For Q2, it said net income reached $21.8 million, or 13 cents a share, significantly higher than the $3.18 million, or 2 cents a share, profit it recorded last year. Sales surged 39% to $1.34 billion from $963 million in the same period a year ago. Same-store sales grew by 29% in its latest quarter. The numbers beat analyst estimates of 9 cents a share on sales of $1.19 billion. Shares surged 9.3%.
On the M&A front, a couple of small deals were announced. Technology giant IBM (NYSE: IBM - News) said it acquired privately held WebDialogs, which specializes in Web conferencing. Financial terms of the deal were not publicly disclosed. WebDialogs will become part of IBM's software group. Elsewhere, food company Hormel Foods (NYSE: HRL - News) agreed to buy cooked meat producer Burke for $110 million. Hormel said the deal will be accretive to earnings in its fiscal year 2008 and will give $125 million in sales to the company. Shares rose 1.1%.
By the BullMarket.com Staff

Labels: BAC, CFC, DIS, GME, HRL, IBM, PCLE

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
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.
Seabridge Gold (NYSE:SA - News). SA's PowerRating (for Traders) is 8.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Toll Brothers (NYSE:TOL - News). TOL's PowerRating (for Traders) is 5.
5+ Consecutive Up Days: 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.
Applebee's International (NasdaqGS:APPB - News) & Disney (NYSE:DIS - News). APPB's PowerRating (for Traders) is 4, and DIS's PowerRating (for Traders) is 4.
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.
Big Lots (NYSE:BIG - News) & Jos A Bank Clothiers (NasdaqGS:JOSB - News). BIG's PowerRating (for Traders) is 2, and JOSB's PowerRating (for Traders) is 2.
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.
Take-Two Interactive Software (NasdaqGS:TTWO - News). TTWO's PowerRating (for Traders) is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: APPB, BIG, DIS, Hot Stocks, JOSB, SA, TOL, TTWO

Stocks seesawed throughout most of the session before rallying into the close. At the end of the trading day, all the major market averages closed with solid gains, the second day in a row we've seen heavy buying late. Corporate earnings helped drive bears indoors as credit market jitters appeared to take a backseat.
Earning report cards from many of America's largest companies came out today, among them CVS Caremark (NYSE: CVS - News) which saw profits rise 114% due to its recently completed merger with Caremark. Profits hit $724 million, or 47 cents a share, compared to $337.9 million, or 40 cents, in the year-ago period. Excluding merger-related charges, EPS would have been 48 cents a share. Revenues nearly doubled to $20.7 billion. The new company cited strength in its core retail pharmacy business as helping fuel increased profits. Shares rose 3.5%.
Hotel operator Starwood Hotels & Resorts (NYSE: HOT - News) said net income came in at $145 million, or 67 cents a share, down from $680 million, or $3.01 a share, last year when the company booked a one-time gain. Excluding special items, its EPS was 82 cents, up from 74 cents in the same period last year. The figures easily beat analyst estimates of 63 cents a share. Revenues rose 4.5% to $1.57 billion as revenue per available room (revpar) rose 8.4%. The company also raised its full-year EPS guidance to $2.78, up from $2.57 previously. Its shares rose 2.1%.
Shares of Walt Disney (NYSE: DIS - News) rose 1.6% after the media and theme park operator reported a third-quarter profit of $1.18 billion, or 57 cents a share, up from $1.13 billion, or 53 cents a share, last year. The 4.7% profit increase was attributed to higher advertising rates at its ABC television unit as well as merchandising from films. Revenues rose 6.7% to $9.05 billion. The company also said it acquired Club Penguin for $350 million in cash, as well as saying it could pay out an additional $350 million if certain profit goals are met.
Nokia (NYSE: NOK - News), the world's largest maker of mobile phones, said net income more than doubled to 2.82 billion euros, or 0.72 euros a share, up from 0.28 euros a share, last year. Excluding extraordinary items, it would have reported earnings of 0.32 euros a share, easily beating estimates of 0.28 euros. Sales rose 28% to 12.6 billion euros. The Finland-based company said it grabbed more market share in the second quarter. Shares surged 8.8%.
In other company news, Mattel (NYSE: MAT - News) shares fell -1.7% after the toymaker said it has recalled 1.5 million toys that are tainted with lead. It blamed the recall on a supply manufacturer in China.
By the BullMarket.com Staff

Labels: CVS, DIS, HOT, MAT, NOK

By TradingMarkets Research
Here are 7 stocks for traders for Monday from TradingMarkets.com:
Walt Disney (NYSE:DIS - News) beat earnings estimates after Tuesday's close. The company reported $0.58 EPS versus estimates of $0.55 EPS. DIS' PowerRating is 5.
Diana Shipping (NYSE:DSX - News) should report $0.40 EPS before the market opens on Thursday. DSX's PowerRating is 4.
Nokia (NYSE:NOK - News) is expected to announce $0.36 EPS on Thursday morning. NOK's PowerRating is 5.
NYSE Euronext (NYSE:NYX - News) is looking to report $0.63 EPS when the company announces earnings on Thursday morning. NYX's PowerRating is 4.
Starwood Hotels (NYSE:HOT - News) should report $0.63 EPS early Thursday. HOT's PowerRating is 6.
Verasun Energy (NYSE:VSE - News) is looking to have EPS of $0.15 on Thursday before the market opens. VSE's PowerRating is 4.
Viacom should report $0.50 earnings per share early Thursday. VIA.B's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: DIS, DSX, HOT, Hot Stocks, NOK, NYX, VSE

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.
CBOT Holdings Inc. Aug 210 Calls (NYSE:BOT). BOT's PowerRating is 5.
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.
Mastercard Inc. July 160 Puts (NYSE:MA). MA's PowerRating is 4.
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 185 Calls (NasdaqGM:BIDU). BIDU's PowerRating is 2.
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.
Oil Services HOLDRs Aug 160 Puts (AMEX:OIH) . OIH's PowerRating is 6.
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.
Walt Disney Co. (NYSE:DIS). DIS' 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.
Focus Media Holding Ltd. (NasdaqGM:FMCN). FMCN's PowerRating is 4.
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.
KB Home (NYSE:KBH). KBH's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: BIDU, BOT, DIS, FMCN, KBH, MA, OIH, stock options

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. Historically, these stocks have provided traders with a significant edge.
Disney (NYSE:DIS) & Ceridian (NYSE:CEN). DIS's PowerRating is 6, and CEN's PowerRating is 7.
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.
Brinker International (NYSE:EAT) & Abercrombie & Fitch (NYSE:ANF). EAT's PowerRating is 6, and ANF'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.
Sun Healthcare (NasdaqGM:SUNH) & Alcon (NYSE:ACL). SUNH's PowerRating is 7, and ACL's PowerRating is 6.
Bearish
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.
Cymer Incorporated (NasdaqGS:CYMI). CYMI's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ACL, ANF, CEN, CYMI, DIS, EAT, Hot Stocks, SUNH

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.
Oil Services HOLDRs July 190 Calls (AMEX:OIH - News). OIH's PowerRating is 5.
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.
Intuitive Surgical June 135 Puts (NasdaqGS:ISRG - News). ISRG's PowerRating is 4.
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.
Google Inc. July 550 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 4.
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.
Research In Motion July 140 Puts (NasdaqGS:RIMM - News). RIMM'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.
Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT - News). HOT'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.
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.
Walt Disney Co. (NYSE:DIS - News). DIS' PowerRating is 6.
International Game Technology (NYSE:IGT - News). IGT's PowerRating is 4.
PowerRatings are courtesy of TradingMarkets.com

Labels: DIS, GOOG, HOT, IGT, ISRG, OIH, RIMM, stock options

More Dow Picks: Pfizer (NYSE: PFE), Procter & Gamble (NYSE: PG), United Technologies (NYSE: UTX), Verizon (NYSE: VZ ), Wal-Mart (NYSE: WMT), Walt Disney (NYSE: DIS)
Cramer says PFE is "stuck" and owning the stock is a bit like owning a bond with a tad more upside. He admits he was too bullish on PG when he predicted it could go to $67 on the weak dollar and organic growth. However, Cramer says he wasn't bullish enough on UTX which is doing well internationally and is in "hyper-drive." He predicts UTX is headed to $73. Cramer also admits he underestimated VZ's fiberoptics and its wireless, and he would buy it for its yield and growth in spite of its 14% rise. WMT should go to $52 but not higher, predicts Cramer, as long as CEO Lee Scott is in charge. While he likes DIS, he thinks its parks will be casualty to gas prices and the success of its Pirates of the Caribbean film is priced into the stock.
Call Me Darling (AMEX: DAR)
Cramer says Darling is "as speculative as it gets" with one business that transforms animal fats into oil and a restaurant business. DAR is "en fuego," but Cramer would wait for a big selloff before buying. After that, DAR needs more analysts covering it before it tops off, and Cramer predicts the stock will go "through the roof" when it moves into the renewable energy sector. Like Tyson, DAR could go into biodiesel, but it will get pummeled first, and when it does, Cramer would buy.

Game Plan for the Coming Week: Polo Ralph Lauren (NYSE: RL), Costco (NasdaqGS: COST), Sears (NasdaqGS: SHLD)
Cramer would stay away with tech, and would move into retail. He recalled RL got "creamed" after its last quarter, which was excellent, but which led to a selloff because of a negative perception about the company's guidance. Therefore, Cramer would buy half a position before RL reports and half after. While he praises COST as a "delivery machine" he believes the company will continue to be misunderstood, and would buy after its earnings report. Cramer suggests pickkng up SHLD if it gets pummeled, and if not, to wait for the next drop in the stock.

Labels: COST, DAR, DIS, Jim Cramer, Mad Money, pfe, PG, RL, SHLD, UTX, VZ, WMT

Bucyrus International (NasdaqGS: BUCY): 'These companies sell 'round the world. ... So I say ... buy BUCY down here.'Gilead Sciences (NasdaqGS: GILD)Celgene (NasdaqGS: CELG): 'It's at 64. I think it goes to 74.'Fuel-Tech (NasdaqGM: FTEK): 'This is a speculative stock, but it is speculative Friday, so I will endorse it.'Texas Instruments (NYSE: TXN)Qualcomm (NasdaqGS: QCOM)Textron (NYSE: TXT)L-3 Communications (NYSE: LLL)Lockheed Martin (NYSE: LMT)Raytheon (NYSE: RTN)Halliburton (NYSE: HAL): 'I think that it's better to go with the drillers. ... King Hal ... that's what I want you in.'Molson Coors Brewing (NYSE: TAP)Coca-Cola (NYSE: KO)PepsiCo (NYSE: PEP)Edison International (NYSE: EIX): 'One of the great utilities. ... It is at a 52-week high. ... Let's take a little off the table and let the rest run.'McDonald's (NYSE: MCD): 'McDonald's and Disney are my two favorite stocks to buy for kids.'Disney (NYSE: DIS): ' Bob Iger has done a remarkable job. I think people who didn't like that quarter, I think they're nuts. ... I'm sticking with Iger. I think the stock is an up stock.'
Bearish calls:
Amgen (NasdaqGS: AMGN): 'I still think there's another 3 or 4 downside points to Amgen.'Johnson & Johnson (NYSE: JNJ)Infineon Technologies (NYSE: IFX): 'second-rate tech company... we don't like the semiconductor group.'Anheuser-Busch (NYSE: BUD ): 'They've got real major problems. ... Their numbers are high ... 'Comtech Telecommunications (NasdaqGS: CMTL): 'I've been looking at this stock for a long time, and it just goes up and up ... Ring the register.'Rayonier (NYSE: RYN): 'I'm not gonna jump up and down about it.'
Published By SeekingAlpha

Labels: BUD, DIS, EIX, HAL, IFX, Jim Cramer, JNJ, KO, Lightning Round, LLL, Mad Money, MCD, PEP, RTN, RYN, TAP, TXN, TXT

Stocks traded gingerly preceding today's decision by the Federal Reserve to hold the line on interest rates, then the markets resumed the upward pace that has characterized trading in the past month. The advance by the major averages wasn't dramatic, but it was another move higher and established yet another closing record for the Dow Jones Industrial Average. In other markets, the 10-year Treasury note and crude oil futures closed lower.
The Fed's decision not to alter interest rates came as little surprise and there was little change in the wording of the central bank's announcement that would tip its hand about future rate cuts. The policy makers are maintaining their inflation-fighting bias, though this month around there was some acknowledgment that growth has slowed. Overall, it's steady as it goes for Fed policy.
In corporate news, shares of Cisco Systems (Nasdaq: CSCO) sank -6.5% after the network equipment maker offered a weak sales outlook as part of its profit report, which was released after last night's closing bell. The company suggested a modest slowing of sales growth in the 15-16% range for the current quarter, compared with the 19-20% it forecasted or delivered in the past few quarters. Chipmaker Texas Instruments (NYSE: TXN) moved higher after the company's CEO offered an upbeat assessment of gross margins in an address to analysts.
Media companies were also in the spotlight. Walt Disney (NYSE: DIS) said its fiscal Q2 profit rose 27%. Disney reported net income of $931 million, or 44 cents a share, compared with $733 million, or 37 cents a share, in the year-earlier quarter. Revenue rose to $8.07 billion, which missed the $8.13 billion target analysts expected. Disney cited strength in its cable channels as a growth driver.
News Corp. (NYSE: NWS), meanwhile, said its net income rose 6.2% on the strength of profits from the company's movie unit. Chairman Rupert Murdoch also addressed his surprise $5 billion bid for Dow Jones & Company (NYSE: DJ) in the company's conference call. He suggested the $60 a share bid that is on the table for The Wall Street Journal publisher won't rise, calling it "more than fair." Enough members of the Bancroft family, which controls the company's future through ownership of a super-voting class of stock, have indicated opposition to the deal to block it. Murdoch said he hoped they might be persuaded to change their minds and was seeking a private meeting. Dow Jones closed down -5.1%.
Elsewhere, Japanese carmaker Toyota Motor (NYSE: TM) posted a smaller-than-expected profit. The company's net income rose 8.9% to $3.7 billion, but its operating profit declined -2.8%. On the M&A front, The Wall Street Journal reported that at least three private equity groups are looking at wireless carrier Alltel (NYSE: AT). The company's low debt relative to its cash flow make the company attractive to leveraged buyout firms. Alltel stock closed up 2.1%.

Labels: AT, CSCO, DIS, DJ, NWS, TM, TXN

JPMorgan Chase (NYSE: JPM - News): 'I think that the company itself is really good. At $47, nice 9% pullback. Probably worth buying, but let me tell you something... It doesn't yield 3%... 'Bank of America (NYSE: BAC - News): 'I've got BAC that yields 4% ... This stock should pull back .... If it goes below $20, then you do a little buying. 'Jones Soda (NasdaqCM: JSDA): 'But JSDA, other than HANS, is the fastest grower out there. I'm doing a lot of work on JSDA... Do not lose sight of that!'Hansen Natural (NasdaqCM: HANS)Accuray (NasdaqGM: ARAY): 'I think you're fine.'Harsco (NYSE: HSC - News): 'I think that this is a quintessential great industrial management company ... that's the kind of stock to buy right here. HSC, only about $1 off its high, but notice how it's held up. It is not that linked to housing. It is mostly industrial equipment.'Cummins (NYSE: CMI - News)Parker-Hannifin (NYSE: PH - News)Caterpillar (NYSE: CAT - News)Terex (NYSE: TEX - News)Lamson & Sessions (NYSE: LMS - News): 'Remember, I felt that this company is a natural to be acquired. They are in talks ... I think this company is worth substantially higher than where it's selling ... I am not worried about the earnings, and the P/E is very low. In other words, continue to buy LMS... 'VeriFone (NYSE: PAY - News): ' I think that PAY - which is linked to retail - is a fabulous stock. I am surprised it's come down this much from its high. I actually want to load up the truck with PAY right here. That's too cheap!'Charter Communications (NasdaqGM: CHTR): 'Do not lose heart! This is a play off of what I regard as being the 'virtuous circle' of being able to refinance, now that rates have come down... CHTR is good ... I want you to buy it.'Comcast (NasdaqGS: CMCSA)Time Warner (NYSE: TWX - News)Allegheny Technologies (NYSE: ATI - News): 'Don't forget that you need ATI steel when you build an ethanol plant, and that stock's off nicely from its high. I'm pulling the trigger right here!'Disney (NYSE: DIS - News): 'DIS is doing very well, it's got superior management. It's pulled back $1.50. I'll pull the trigger on DIS.'
Bearish calls:
Six Flags (NYSE: SIX - News): 'is a speculative stock ... I did not put that in the same league as DIS... I will wait until we go to Six Flags, before I will make the determination.'

Published By SeekingAlpha

Labels: ATI, CAT, CMI, DIS, LMS, PAY, SIX, TEX, TWX, VLO

Bullish calls:
Walt Disney (NYSE: DIS - News): 'The stock itself is a screaming buy. It's a buy, buy, buy! They have bought back - one of the biggest buybacks ... This stock goes higher. I would buy it right here. Buy, buy, buy!'Clearwire (NasdaqGS: CLWR): 'They priced this deal badly with everybody in it, they got hurt. But they have no shame... I think CLWR is a long-term winner, because they have Craig McCaw... We are not going to make money now, because all the flippers are in it... Shame on them. It remains a buy.'Ameriprise Financial (NYSE: AMP - News): 'Warren Buffet likes it. I like it. I hadn't realized that that stock had come down that much... At $55? You know, this thing is growing at 10%. It sells at 14x earnings...Hey, you know what? AMP - Buy, buy, buy!!'Savient Pharmaceuticals (NasdaqGM: SVNT): 'They've got a phase III deal coming. I never liked SVNT for the earnings. I liked it for all the stuff in the pipe.'Genzyme (NasdaqGS: GENZ)Celgene (NasdaqGS: CELG): 'CELG is on the move. That is the one to buy right here!'Gilead Sciences (NasdaqGS: GILD)Transocean (NYSE: RIG - News): 'We like RIG, which I said was going to go to $75, and it did today. It will be back Friday, if you missed it.'Halliburton (NYSE: HAL - News)GlobalSantaFe (NYSE: GSF - News): 'We like GSF, another offshore driller.'Foster Wheeler (NasdaqGS: FWLT): 'If you want to be in that business, you consistently ... go buy FWLT. And the reason is that they don't have a lot of overruns. And I think you absolutely have to fear overruns more than anything else in that group. I think that FWLT is the play.'Walgreen (NYSE: WAG - News): ' ... anytime you can get that stock below $45, you pull the trigger... That is one of the best-run... the best safety in the retail business.'Yamana Gold (NYSE: AUY - News): ' ... we want to be in AUY! That's the gold company.'
Bearish calls:
Patterson-UTI Energy (NasdaqGS: PTEN): 'No, the other day we talked about this... The other day we said we are not going to buy domestic drillers ... because we are offshore. PTEN is wrong.'Washington Group (NasdaqGS: WGII)Marsh & McLennan (NYSE: MMC - News): 'I took Cherkasky [CEO] off the 'Wall of Shame,' because he's trying his best, but there's no earnings momentum there. They need a new guy there, or they should sell themselves.'Kinross Gold (NYSE: KGC - News): 'No! KGC is a sale! We don't want no stinking KGC!'
Published By SeekingAlpha

Labels: AMP, AUY, CLWR, DIS, GSF, HAL, Jim Cramer, Lightning Round, Mad Money, RIG, WAG

A rebound overnight in Asian markets carried westward to Europe and ignited gains on Wall Street today, sending the major market averages up more than 1% today. The rebound came despite some sluggish economic numbers from the government. Oil prices also resumed climbing as did metals, with gold, platinum, and silver all notching solid gains today. The yield on the 10-Treasury note rose to 4.53% as the bond market moved lower.
Many market observers cautioned that today's advance doesn't mean the recent correction has run its course. Among the cautionary news today was a revised report on U.S. productivity during Q4 of last year. The Commerce Department now says the productivity of U.S. workers grew at only a 1.6% annualized rate, or about half of the 3.0% gain the government agency initially forecasted.
Labor costs, meanwhile, soared, increasing to a revised 6.6%, compared with an earlier estimate of 1.7% growth. The revisions to the labor cost index and the drop in productivity point to inflationary pressures that make it less likely the Federal Reserve will act to reduce interest rates anytime soon. On top of those reports, the Commerce Department said that factory orders dropped by -5.6% in January, the biggest decline since July 2000.
Investors were willing to look past those numbers today, as buying interest was buoyed by strong gains on the Japanese, German, and British markets. Technology stocks paced today's advance, led by solid gains from Apple (Nasdaq: AAPL - News), which added 2%, and Google (Nasdaq: GOOG - News), up 4%. Google CEO Eric Schmidt said the two companies were working on additional projects, but didn't elaborate in an appearance at a West Coast technology conference. Terry Semel, CEO of Google's rival Yahoo (Nasdaq: YHOO - News), appeared at the same conference, where he said Yahoo's new Panama search technology is off to a solid start delivering better results for advertisers. The stock added 2%.
Citigroup (NYSE: C - News) enjoyed a 3% bounce after announcing a nearly $11 billion tender offer to take control of Japan's Nikko Cordial brokerage. An offer from Citi was expected since Nikko Cordial has run into problems related to an accounting scandal. Due to the scandal, the firm faces the risk of being delisted by the Tokyo Stock Exchange. Citi's relationship with the company and the weakened position it is in opened the opportunity for the U.S. banking giant. Subscribers can read our detailed analysis of the proposed deal in today's issue.
In M&A news, private equity firms Tornante and Madison Dearborn Partners said they have a deal in place to buy Topps (Nasdaq: TOPP - News), the famed maker of trading cards featuring Major League Baseball players, for $385 million. Tornante is the investment vehicle of Michael Eisner, former CEO of Walt Disney (NYSE: DIS - News). Topps gained 10% after the announcement.
Finally, investors took another look at battered subprime lenders today. Shares of New Century Financial (NYSE: NEW - News) rose 10% on more than 6x average daily volume, but the stock still has a long way to go to recoup yesterday's 69% dive. The chief financial officer of Countrywide Financial (NYSE: CFC - News), meanwhile, told an investor conference that while some subprime lenders might fail, his company won't. CFO Eric Sieracki called Countrywide a "top-conditioned athlete" that will get past current woes in the sector. The stock added 5% today. Other originators like American Home Mortgage Investment (NYSE: AHM - News) and Accredited Home Lenders Holding (Nasdaq: LEND - News) climbed 8% and 9%, respectively.
By the BullMarket.com Staff

Labels: AAPL, AHM, C, CFC, DIS, GOOG, LEND, NEW, TOPP, YHOO

Shares of American Express Co. were the heaviest weight on the Dow Jones industrial average on a down day for the markets at midday Monday.
The index of 30 leading copanies was down 9.69, at 12,571.22.
Shares of New York-based American Express were down 97 cents to $56.56 as concerns about credit quality continued to spread across the financial services industry following announcements last week from mortgage companies about increasing defaults, and a report early Monday on increased foreclosure activity in January.
Shares of The Walt Disney Co. were down 45 cents, to $33.91, despite an upgrade from CIBC World Markets to "Sector Performer," from "Underperform."
Boeing Co. shares edged down 62 cents, to $80.39. Lehman Brothers analyst Joseph Campbell reiterated an "Overweight" rating and a $105 price target on the shares Monday, but wrote in a client note the shares were valued well above average for the industry, and outlined concerns about the risks the company faces trying to ramp up its 787 aircraft program on schedule and on budget.
On the upside, shares of alumina maker Alcoa Inc. added 65 cents, or 2 percent, to $33.17 on news that Canadian aluminum producer Novelis Inc. is being acquired by Hindalco Industries of India. Morgan Stanley analyst Marke Liinamaa noted the $6 billion deal highlights the value of Alcoa's downstream operations.
Shares of Home Depot Inc. gained 53 cents, to $41.53, on news the Atlanta-based home improvement chain is considering selling its Home Depot Supply business, which it bought last year for $3.2 billion.
And shares of Coca-Cola Co. were up 52 cents, to $48.28, as Wall Street speculated it may beat expectations when the Atlanta-based beverage company reports fourth-quarter results on Wednesday.
Published by AP

Labels: AA, AXP, BA, DIS, HD, KO, MS, NVL