Jim Cramer Blog

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Avon Products (NYSE:AVP - News) reports earnings results on Tuesday before the market opens, with traders looking for $0.36 EPS. AVP's Short Term PowerRating is 3.

CME Group (NYSE:CME - News) is looking to report $3.62 EPS before the market opens on Tuesday. CME's Short Term PowerRating is 5.
Analysts will be watching for Duke Energy (NYSE:DUK - News) to announce $0.24 EPS on Tuesday morning. DUK's Short Term PowerRating is 4.
When Tyco (NYSE:TYC - News) announces quarterly results tomorrow morning, watch for $0.56 EPS. TYC's Short Term PowerRating is 3.
Bankrate (NasdaqGS:RATE - News) is poised to announce $0.39 EPS tomorrow after the stock market closes. RATE's Short Term PowerRating is 2.
Cheesecake Factory (NasdaqGS:CAKE - News) is expected to report $0.26 EPS tomorrow after the market closes. CAKE's Short Term PowerRating is 4.
JDS Uniphase (NasdaqGS:JDSU - News) should announce $0.12 EPS tomorrow afternoon when the market is closed. JDSU's Short Term PowerRating is 4.

Labels: AVP, CAKE, CME, DUK, Hot Stocks, JDSU, RATE, TYC

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Electronic Arts (NasdaqGS:ERTS - News) beat earnings on Thursday with $0.27 EPS over an expected $0.20 EPS. ERTS's PowerRating (for Traders) is 5.
Bebe Stores (NasdaqGS:BEBE - News) missed earnings expectations on Thursday afternoon, with $0.16 EPS versus a consensus of $0.17 EPS. BEBE's PowerRating (for Traders) is 5.
Verisign (NasdaqGS:VRSN - News) also missed earnings, with $0.26 EPS versus expectations of $0.27 EPS. VRSN's PowerRating (for Traders) is 6.
Chevron (NYSE:CVX - News) reports earnings on Friday before the market opens, with analysts looking for $2.05 EPS. CVX's PowerRating (for Traders) is 6.
When Duke Energy (NYSE:DUK - News) reports quarterly earnings tomorrow morning, analysts will be watching for $0.39 EPS. DUK's PowerRating (for Traders) is 4.
International Paper (NYSE:IP - News) is looking to report $0.57 EPS on Friday morning before the market opens. IP's PowerRating (for Traders) is 4.
Analysts are watching for NYSE Euronext (NYSE:NYX - News) to report $0.72 EPS on Friday before the market opens. NYX's PowerRating (for Traders) is 5.

Labels: BEBE, CVX, DUK, ERTS, Hot Stocks, IP, NYSE Euronext Inc., NYX, VRSN

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
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Healthcare Services Group (NasdaqGS:HCSG - News). HCSG's PowerRating (for Traders) is 5.
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.
National Instruments (NasdaqGS:NATI - News). NATI'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.
Tesco (NasdaqGS:TESO - News). TESO's PowerRating (for Traders) is 8.
Bearish
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.
Safeco Corporation (NYSE:SAF - News). SAF'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.
Duke Realty (NYSE:DUK - News) & Barnes & Noble (NYSE:BKS - News). DUK's PowerRating (for Traders) is 4, and BKS'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.
99 Cents Only (NYSE:NDN - News). NDN's PowerRating (for Traders) is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: BKS, DUK, HCSG, Hot Stocks, NATI, NDN, SAF, TESO

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Dean Foods (NYSE:DF - News) reports quarterly earnings on Tuesday before the bell; watch for $0.31 EPS. DF's PowerRating is 5.
El Paso (NYSE:EP - News) should announce $0.23 EPS when the company reports earnings on Tuesday morning. EP's PowerRating is 6.
When Duke Energy (NYSE:DUK - News) announces earnings tomorrow morning, be watching for $0.20 EPS. DUK's PowerRating is 4.
Harrah's (NYSE:HET - News) should report $1.00 EPS on Tuesday before the bell. HET's PowerRating is 6.
Analysts and traders are watching for International Securities Exchange (NYSE:ISE - News) to report $0.45 EPS on Tuesday morning. ISE's PowerRating is 5.
WTI Offshore (NYSE:WTI - News) and Tenet Healthcare (NYSE:THC - News) both report earnings Tuesday morning; WTI expects $0.46 EPS, and THC is looking for -$0.01 EPS. WTI's PowerRating is 6, and THC's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: DF, DUK, EP, HET, Hot Stocks, ISE, THC, WTI

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
j2 Global Communications (NasdaqGS:JCOM) beat earnings on Monday afternoon, announcing $0.35 EPS over an expected $0.32 EPS. JCOM's PowerRating is 4.

Wynn Resorts (NasdaqGS:WYNN) beat earnings on Monday afternoon, with $0.67 EPS over a consensus of $0.54 EPS. WYNN's PowerRating is 6.
Allied Capital (NYSE:ALD) should announce $0.34 EPS on Tuesday morning. ALD's PowerRating is 4.
CVS Corporation (NYSE:CVS) announces earnings on Tuesday before the bell, with analysts looking for $0.45 EPS. CVS's PowerRating is 6.
Duke Energy (NYSE:DUK) is expected to announce $0.30 EPS on Tuesday before the market opens. DUK's PowerRating is 5.
When Tyco (NYSE:TYC) announces earnings on Tuesday morning, watch for $0.47 EPS. TYC's PowerRating is 5.
Analysts are watching for Harrah's Entertainment (NYSE:HET) to report $1.00 EPS before the bell on Tuesday. HET's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: ALD, CVS, DUK, HET, Hot Stocks, JCOM, TYC, WYNN

IntercontinentalExchange (NYSE: ICE - News): 'It is killing the shorts that stock. ... That stock is a fave along with CME and CBOT Holdings. This group is fantastic ... raising margin, raising price."Chicago Mercantile Exchange (NYSE: CME - News)CBOT Holdings (NYSE: BOT - News):' This group is fantastic ... raising margin, raising price.'Ciena (NasdaqGS: CIEN)Tellabs (NasdaqGS: TLAB)Progressive (NYSE: PGR - News): 'One of the highest-quality insurers in the world.'Prudential (NYSE: PRU - News): ' ... are the ultimate insurers in this country.'MetLife (NYSE: MET - News)United Online (NasdaqGS: UNTD): 'This company yields 5%. It's got momentum. It's doing well. ... United Online, you get a thumb up.'Sears (NasdaqGS: SHLD): 'The stock was down badly today. I know people want me to run, they want me to hide ... I'm not selling a share. ... I am a believer.'American Capital (NasdaqGS: ACAS): 'Eight percent yields ... consistently pilloried by the bears. ... I see 8% growth, sells at 13 times earnings; I see a stock that's going higher.'Public Service Enterprise (NYSE: PEG - News): 'Off of my electric bill alone, I would buy these guys.'Exelon (NYSE: EXC - News)Duke Energy (NYSE: DUK - News)Consolidated Edison (NYSE: ED - News)Energy Metals (NYSEArca: EMU): 'Been marking time. ... very speculative stock ... I think there's more upside.'Hewlett-Packard (NYSE: HPQ - News): 'The only tech stock that we're really behind right now is Hewlett-Packard.'Bank of New York (NYSE: BK - News)Amgen (NasdaqGS: AMGN)
Bearish calls:
IPG Photonics (NasdaqGM: IPGP): 'All this stuff that goes into the big telecommunications world has turned very cold for me.'FoxHollow Technologies (NasdaqGS: FOXH): 'They gave away the upside when they made that deal with Merck .'Atmel (NasdaqGS: ATML): ' ... don't think there's any upside there.'
Published by SeekingAlpha

Labels: ACAS, BK, BOT, CME, DUK, ED, EXC, HPQ, ICE, Jim Cramer, Lightning Round, MET, PEG, PGR, PRU, SHLD, UNTD

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
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Equity One Resources (NYSE:EQY - News). EQY's PowerRating is 6.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Perficient Incorporated (NasdaqGS:PRFT - News). PRFT's PowerRating is 5.
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.
Chevron (NYSE:CVX - News). CVX'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.
Duke Energy (NYSE:DUK - News). DUK'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.
Dominion Resources NYSE:D. D'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.
iMergent (NYSE:IIG - News). IIG's PowerRating is 8.
Bearish
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.
Chico's Fas (NYSE:CHS - News). CHS's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: CHS, CVX, D, DUK, EQY, Hot Stocks, IIG, PRFT

Cousins Properties (NYSE:CUZ - News) beat earnings on Monday after the close, announcing $0.50 EPS over an expected $0.46 EPS. CUZ's PowerRating is 6.
Ikanos Communications (NasdaqGM:IKAN - News) missed earnings on Monday afternoon; analysts were looking for -$0.20 EPS, but the company reported -$0.26 EPS. IKAN's PowerRating is 4.
Celanese (NYSE:CE - News) reports quarterly earnings on Tuesday before the bell; watch for $0.57 EPS. CE's PowerRating is 5.
Duke Energy (NYSE:DUK - News) is looking to report $0.40 EPS on Tuesday before the market opens. DUK's PowerRating is 4.
When International Securities Exchange (NYSE:ISE - News) announces earnings on Tuesday morning, watch for $0.37 EPS. ISE's PowerRating is 4.
Analysts are expecting Tyco (NYSE:TYC - News) to report 0.44 EPS when the company reports quarterly earnings tomorrow. TYC's PowerRating is 5.
Wrigley (NYSE:WWY - News) should report $0.49 EPS on Tuesday morning. WWY's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: CE, CUZ, DUK, Hot Stocks, IKAN, ISE, TYC, WWY

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Cousins Properties (NYSE:CUZ - News) beat earnings on Monday after the close, announcing $0.50 EPS over an expected $0.46 EPS. CUZ's PowerRating is 6.
Ikanos Communications (NasdaqGM:IKAN - News) missed earnings on Monday afternoon; analysts were looking for -$0.20 EPS, but the company reported -$0.26 EPS. IKAN's PowerRating is 4.
Celanese (NYSE:CE - News) reports quarterly earnings on Tuesday before the bell; watch for $0.57 EPS. CE's PowerRating is 5.
Duke Energy (NYSE:DUK - News) is looking to report $0.40 EPS on Tuesday before the market opens. DUK's PowerRating is 4.
When International Securities Exchange (NYSE:ISE - News) announces earnings on Tuesday morning, watch for $0.37 EPS. ISE's PowerRating is 4.
Analysts are expecting Tyco (NYSE:TYC - News) to report 0.44 EPS when the company reports quarterly earnings tomorrow. TYC's PowerRating is 5.
Wrigley (NYSE:WWY - News) should report $0.49 EPS on Tuesday morning. WWY's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: CE, CUZ, DUK, IKAN, ISE, TYC, WWY

“Hike, Hike?” For investors’, ‘just right’ Goldilocks economic conditions made for some offensive and a January barometer cheering ‘Da Bulls as 2007’s stateside champs. For the five-day period, the NASDAQ Composite ($COMPQ) and S&P500 ($SPX) are higher by 1.66% to 1.83%.“Hike, Hike!” Investors possibly heard those words over the weekend, but apparently not from the guy in charge of driving the markets forward. Early action in the first-half of trade was generally conducive to the bulls taking control of the offense. A flurry of Merger Monday activity (BMY, CFC, MER, SYMC, C and LAUR) and profit-taking in oil that day saw some players come in off the sidelines. In general though, the first-half was a sleeper of second string shuffling with little in the way of decisive movement. In fact, with Tuesday ushering in leadership from the energy complex (XLE, OIH), one might say The Curly Shuffle was seen as growing popular with investors. Black Gold reversed back through $55 to close up by nearly three points at $56.97, but due to the influential weighting of energy stocks, a positive catalyst for the broader indices was offered. With disappointing earnings from the Three Stooges a.k.a. Pharma giant Merck (MRK), 3M (MMM) and United Parcel (UPS) that day, the market certainly has a good sense of humor.Wednesday’s kick-off brought out the first team and a more serious game face to boot. The Q4 Advance GDP rose a stronger-than-anticipated 3.5% versus analysts’ estimates of 3.0%. While investor cheer could be heard on that front, an in-line 1.5% chain deflator, a slightly better-than-expected employment cost index (.8% vs 1.0%) and a drop of -.8% in the PCE price index were mixed enough in their overall readings as to hint that the Fed would maintain a hawkish lean. That being said, the bulls called an intraday timeout as they waited on play confirmation from the market’s quarterback.A quarterback sneak by Bernanke with a call of ‘5.25% and further rate hikes may yet be necessary’ was apparently understood by the offense to signal the charge forward. Despite having already offered out the same play and one that still implies that any change in policy will likely be towards tightening, the market rallied around the statement. Further recognition by the Fed that the economy has turned up, housing stabilized and price pressures still only affording bluffing tactics might be seen as reasons behind the Hail Mary by investors. Thursday did offer bulls’ leaning on policy verbiage of ‘improved and should moderate further’, confirmation of easing price pressures. The Fed’s favored price gauge, the core PCE deflator, rose just .1% in December. The benign reading comes on the heels of a flat result in November and can be seen as a positive trend towards lower inflation. On the other hand, an unexpected slip to contraction levels of 47.5% versus estimates of 51.5% for the ISM Index and a bump of 5.5% to 53% for the prices paid component should serve as reminders that ‘Da Bears could still find their game, despite being underdogs on Wall Street and other playing fields. A ‘just right’ jobs report delivered on Friday didn’t have the bears hearing “Hike, Hike” to begin their own offensive assault. Nonfarm payrolls that were adjusted for ‘now complete’ tax data turned a “miss” of 39,000 into a figure that was perfectly in-line with expectations. Further, a drop of .1% in December hourly earnings and a current .2% reading that was below estimates of .3% helped the bulls with their case. In recent months with wage-based pressures weighing heavily on the Fed, the combined data goes a long way towards easing those concerns.
ON TAP THIS WEEK
Economic watchdogs will be finding a reprieve this week. A much lighter and less significant calendar of catalysts are on tap. Further expectations for “just right” economic conditions will need to find additional momentum from investors without much actual evidence. One report that investors could key off of will be Monday’s ISM Services figure. After a disappointing ISM manufacturing figure, a stronger result might result in a sigh of relief and a rallying point. A worse-then-expected result, using that logic, would likely find investors focused on profit-taking.An additional factor jockeying for investors’ attention will be the price of oil. Since contract lows were set nearly three weeks ago, higher prices in Black Gold have yet to impact the market in a negative capacity, despite price gains of nearly 8 points or 15% to $59-a-barrel. Of course much of the broader market’s resilience is due to the energy complex (XLE, OIH) having enjoyed a tremendous rally simultaneously. As one of the market’s most heavily-weighted sectors, the potential negative impact of higher prices has thus been negligible. That being said, it will be interesting to see if the spin machine focusing on consumer spending and corporate profits goes back to work this week. It will be another week of heavy corporate reporting for earnings hounds. With close to two-thirds of S&P500 companies having delivered their Q4 results, aggregate earnings are shaping up slightly stronger at roughly 11%. However, while some relief might be felt over the possibility for a fourteenth quarter of double digit growth, all other benchmarks are off fairly hard and do point at much slower profit growth heading into the first-quarter. Eyeballing guidance figures and its readily apparent that revisions lower, rather than stronger outlooks are more the standard operating procedure and reaffirmations the most popular avenue taken. In spite of the current BTE parade, maybe that’s one reason that forecasts for Q1 have been lowered to 5% during the same period.
Monday
Economic: ISM Services (57)
Earnings: BE Aero (BEAV), Potlatch (PCH), Royal Carib (RCL), Anadarko (APC), Las Vegas Sands (LVS), Edwards LS (EW), Sohu (SOHU), Pitney (PBI), Thomas & Betts (TNB), WMS (WMS)
Tuesday
Economic: N/A
Earnings: Auto Data (ADP), Celanese (CE), Duke (DUK), InterActive (IACI), Intl SE (ISE), Littlefuse (LFUS), Louisiana Pac (LPX), Natl Oilwell (NOV), Tyco (TYC), Cisco (CSCO), Dentsply (XRAY), Diodes (DIOD), FEI Co (FEIC), ResMed (RMD), Travelzoo (TZOO), USANA (USNA)
Wednesday
Economic: Productivity (1.7%), Weekly Crude
Earnings: Cigna (CI), Devon (DVN), Intcnl Exchange (ICE), Lazard (LAZ), MedImmune (MEDI),Tim Hortons (THI), Whirlpool (WHR), Affymetrix (AFFX), Akamai (AKAM), Alcon (AL), Maxim (MXIM), UEPS Tech (UEPS), Riverbed (RVBD), Sina (SINA), Disney (DIS)Thursday
Economic: Weekly Claims (310K), Wholesale Inv (.6%)
Earnings: Aetna (AET), Bunge (BG), Carlisle (CSL), Corrections Co. (CXW), Diamond Offshore (DO). Express Scripts (ESRX), FLIR Systems (FLIR), Level 3 (LVLT), Marriott (MAR), Walter Ind (WLT), Qwest (Q), Broadcom (BRCM), Digital River (DRIV), Comtech (COGO), Panera (PNRA), Energy Conversion (ENER), Lifepoint (LPNT), Opentext (OTEX), W.G’Batch (GB) Friday
Economic: NA
Earnings: Alcatel-Lucent (ALU), Hasbro (HAS), MasterCard (MA), Weyerhauser (WY), AGCO (AG), American S & E (ASEI), Coventry (CVH)
By Chris Tyler, Optionetics.com

Labels: ADP, APC, BEAV, CE, CSCO, DUK, EW, IACI, ISE, LFUS, LPX, LVS, NOV, PBI, PCH, SOHU, TNB, TYC, TZOO, WMS

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)

Labels: AGN, BLUD, DENN, DNA, DUK, GSOL, Jim Cramer, Lightning Round, MA, Mad Money, MGM, MNT, MOGN, SFL, VLO

Google (NASDAQ: GOOG - News): Cramer predicts that Google will go to 500 from 483 because the recent tech rally "has legs" and will gain more momentum as investors leave the energy sector. He thinks that Goldman Sachs' downgrade of the sector was unwise, since it missed the Vista upgrade cycle.
Amgen (NASDAQ: AMGN - News): Cramer likes this stock which was upgraded on Thursday, and he notes that "pin action" is bringing the AMGN up 3%.
UST (NYSE: UST - News), Altria (NYSE: MO - News), Kraft (NYSE: KFT - News), Spectra Energy (NYSE: SE - News) and Duke (NYSE: DUK - News): While Cramer likes UST, the smokeless tobacco play with a "big dividend," he prefers MO, which he thinks is going to 120 after the Kraft spinoff. MO was sitting at 88 on Thursday. On another note, Cramer said positive things about SE, a natural gas spinoff of Duke.

Labels: AMGN, DUK, GOOG, Jim Cramer, Jim Cramer's Stop Trading, KFT, MO, SE, UST

Accredited Home Lenders (NASDAQ: LEND - News), Merrill Lynch (NYSE: MER - News) and Bear Stearns (NYSE: BSC - News): Cramer says subprime lenders are dong well now, because there are no worries over credit losses. LEND has not fallen because subprime lending is in trouble, but because MER and BSC have entered into the game: "It's a margin-shred story," remarked Cramer.
Devon (NYSE: DVN - News), Ultra Petroleum (AMEX: UPL - News), Core Labs (NYSE: CLB - News), Total (NYSE: TOT - News), BP (NYSE: BP - News) and Duke (NYSE: DUK - News): Cramer likes UPL, CLB and DVN and called Devon's recent downgrade "criminal." He added, "If Devon stays here, it wil be bought by a European major," like Total or BP. Cramer said that Duke Energy is

Labels: BP, BSC, CLB, DUK, DVN, Jim Cramer, Jim Cramer's Stop Trading, LEND, MER, TOT, UPL

Cover Story: The New IBM by Leslie P. Norton
Highlighted companies: International Business Machines Corp. (NYSE: IBM - News), EMC Corp. (NYSE: EMC - News), Microsoft Corp. (NASDAQ: MSFT - News), Dell Inc. (NASDAQ: DELL - News), Hewlett-Packard Co. (NYSE: HPQ - News), Citigroup Inc. (NYSE: C - News), Sun Microsystems Inc. (NASDAQ: SUNW - News), Siemens AG (NYSE: SI - News), Accenture Ltd. (NYSE: ACN - News), Infosys Technologies Ltd. (NASDAQ: INFY - News), Wipro Ltd. (NYSE: WIT - News), SAP AG (NYSE: SAP - News),Summary: Barron's cover story takes a bullish stance on International Business Machines Corp. (NYSE: IBM - News). CEO Samuel Palmisano, who few thought would radically part ways with his predecessor Louis Gerstner when he took over in 2002, is doing his best to reinvent the giant and transition it from a hardware/mainframe focus to a middleware producer which can make big dough with its exceptional software margins (85%), followed-up with client services. Some key points:
2006 earnings are expected to grow 12%, and 2007 by another 9% ($5.98 and $6.54).
Shares trade at 15x earnings vs. 25x for EMC Corp. (NYSE: EMC - News), 23 for Dell Inc. (NASDAQ: DELL - News), and 20 for Microsoft Corp. (NASDAQ: MSFT - News).
Its $10b cash on hand can be and has been used to boost earnings through swallowing up smaller software companies and speculative investments such as last month's Citigroup Inc. (NYSE: C - News) partnership in China's Guangdong Development Bank.
A decade ago most IBM software ran on its mainframes. Today it's the world's largest middleware vendor through brands WebSphere, Lotus, Tivoli, Rational and DB2 brands. Its legacy software, such as the operating systems for IBM mainframes and servers, "don't blow anyone's doors off," but are still big money makers.
Its middleware helps companies implement "Service Oriented Architecture" [SOA], a buzzword for the growing trend to make computer systems more flexible and adaptable to changing business needs. IBM sells over 3x more SOA products and services than anyone else.
Its traditional services department has been hit by competition, particularly Indian rivals which low-cost services. IBM has restructured its service unit, and plans to invest $6b in India, possibly acquiring another firm to go along with its purchase of outsourcing company Daksh. This quarter IBM won a $300 million contract with Scotland's public health service, an $863 million deal with the State of Texas, and is expected to sign a 10-year $8.45 billion contract with Siemens AG (NYSE: SI - News) to modernize technology for the German military.
Its "cash-cow hardware division keeps ticking," with Q3 growth up 8.8% (versus 5% in 2005) from higher mainframe revenues and gains in IBM's Technology Collaboration operation.
IBM processors are at the core of all major videogame consoles, including Sony's (NYSE: SNE - News) new PlayStation 3. Bob Djurdjevic of Annex Research predicts that Technology Collaboration, its R&D and semiconductor-design unit, "will become so large that it deserves comparison to IBM's shift to services several years ago." Palmisano: "We have a top share in servers and Linux, No. 1 in blade servers, which is a huge growth area... No. 1 in supercomputing, No. 1 in SOA... We're No. 1 in middleware... IBM is a stronger company today than it was four years ago, with stronger margins, solid cash and earnings." Barron's: You don't need a computer to know what that trend could do for IBM's shares.

What's in His Wallet? by John Kimelman
Highlighted companies: CompuCredit Corp. (NASDAQ: CCRT - News), Capital One Financial Corp. (NYSE: COF - News), RenaissanceRe Holdings Ltd. (NYSE: RNR - News), Citigroup Inc. (NYSE: C - News), Bank of America Corp. (NYSE: BAC - News), JPMorgan & Chase Co. (NYSE: JPM - News), Wachovia Corp. (NYSE: WB - News), Tennessee Commerce Bancorp (NASDAQ: TNCC - News)Summary: Tom Brown's Second Curve Capital hedge-fund invests exclusively in financial services stocks, and has generated 20% yearly returns since its start in May 2000. Stocks mentioned:
CompuCredit Corp. (NASDAQ: CCRT - News): A sub-prime lender that instead of focusing on credit cards, offers payday and automobile loans. Brown concedes that sub-prime lenders may be vulnerable to economic slowdowns, but sees risk assessment as a far more critical determinant. Calls CCRT's $700m of excess liquidity a "wild card" that could be used for earnings growth. Shares trade at 6x '08 earnings, and he expects earnings growth of 20%+.
Capital One Financial Corp. (NYSE: COF - News): Within a year credit cards will be less than half of its earnings. It trades at 8x '07 earnings. "Next year it will be perceived as a rapidly growing diversified financial institution."
RenaissanceRe Holdings Ltd. (NYSE: RNR - News): 2004-5 hurricane devastation led to a dramatic repricing in the reinsurance industry that will drive 20%+ growth for another couple years. It trades at 6x 2007 estimates, which Browns says are too low.
Citigroup Inc. (NYSE: C - News) Bank of America Corp. (NYSE: BAC - News) JPMorgan & Chase Co. (NYSE: JPM - News) Wachovia Corp. (NYSE: WB - News): Due to their size, they stand little chance of having a serious earnings shortfall, but huge earnings beats are equally unlikely. If Citigroup management starts taking action like selling off some businesses, it could go up 10-15%.
Regional banks: He's short the sector, particularly banks that bet on falling interest rates and steep yield-curves. He doesn't see the yield-curve steepening in the coming year. He likes Tennessee Commerce Bancorp (NASDAQ: TNCC - News) because of its focus on the small business customer that "more than compensates for its exposure to the yield curve -- they can grow their earnings rapidly despite the difficult interest-rate environment."

At Duke, A Powerful Idea by Jack Willoughby
Highlighted companies: Duke Energy Corp. (NYSE: DUK - News)Summary: Duke Energy's planned January spinoff of its natural-gas operations into Spectra Energy is 'turnaround wiz' Chairman Paul Anderson's brainchild. He hopes the split will bring "full value" for its underappreciated gas assets, including 17,500 miles of pipeline. The two businesses trade differently: (1) Gas companies trade for multiples of cash flow and electrics for multiples of earnings. (2) Gas concerns command richer valuations, in part because they make use of master limited partnerships which allow them to pass tax-free cash through to investors. (3) Spectra faces fewer regulatory hurdles than electric utilities, and expansion opportunities abound due to underinvestment in pipelines and storage, and rising demand. Duke shareholders are to receive one Spectra share for every two shares of Duke common, meaning they would get Spectra stock for $8 per share. Analysts believe it could trade for double. According to analyst Nathan Judge, Duke's assets are worth about $37 a share, 17% above the recent stock price of $31. Utilities analyst John Bartlett calls Duke, "an excellent way to capitalize on both the need for new energy infrastructure and the potential for a higher valuation as the market recognizes the strength of the underlying utility business."Barron's bottom line: After the spinoff, Duke could trade for $23 and change; Spectra, for $16.45.

TECHNOLOGY TRADER: Microsoft's Bold Voyage Begins by Bill Alpert
Highlighted companies: Microsoft Corp. (NASDAQ: MSFT - News), Cisco Systems Inc. (NASDAQ: CSCO - News)Summary: Shares of Microsoft Corp. (NASDAQ: MSFT - News) are up 35% since June to $29 as investors anticipate big upgrade revenues from Vista and Office 2007. Shares presently trade at 20x 2006 expected cash flow of over $15b. While some investors are skeptical that Vista can deliver the growth bulls think it will, Barron's likes last week's launch, the fact that profit margins on Vista and Office exceed 60%, and that forecasts are conservative in estimating only 50% of its installed base will upgrade. New server-based voice communication and collaborative software look to be stiff competition for Cisco Systems Inc. (NASDAQ: CSCO - News), and it seems MSFT will finally start turning a profit on Xbox 360. The company plans to use up to $40b of its massive cash stash in stock buybacks, which combined with a rise in revenues from its new products could get per-share cash-flow up to 15%, and push shares into the mid 30s.

TECHNOLOGY TRADER: Dell by Bill Alpert
Highlighted companies: Dell Inc. (NASDAQ: DELL - News), Hewlett-Packard Co. (NYSE: HPQ - News), EMC Corp. (NYSE: EMC - News)Summary: Friedman Billings Ramsey hardware analyst Clay Sumner asserts in a report published Friday that Dell (NASDAQ: DELL - News) has been manipulating its earnings by under-compensating for warranty costs; he claims Dell EPS figures have overstated earnings by $0.02-$0.08/share in five of the past 12 quarters. He accuses Dell of using warranty accruals to custom-fit earnings -- citing that while warranty claim rates have been relatively stable, accrual rates have varied wildly. Dell, he says, tends to under-accrue during poor seasons and over-accrue in better times, but the overall trend since Q3 2003 has been toward under-accrual. Warranty costs are currently 46% of its warranty reserve, well above Hewlett-Packard Co.'s (NYSE: HPQ - News) 26% and EMC Corp.'s (NYSE: EMC - News) 13%, and that Dell with its large corporate sales base (85%) should be more in-line with EMC that with HP. With actual claims rising steadily, he warns earnings restatements may be on the way.

Tracking the Smartest Money by Andrew Bary
Summary: Barron's identifies five top-notch hedge funds whose investment moves are closely watched by the industry, revealing their top holdings and some recent transactions:
David Tepper's Appaloosa Fund: (1) Oracle Corp. (NASDAQ: ORCL - News) (2) Micron Technology Inc. (NYSE: MU - News) (3) Applied Materials Inc. (NASDAQ: AMAT - News). Other big holdings: Cisco Systems Inc. (NASDAQ: CSCO - News), Microsoft Corp. (NASDAQ: MSFT - News), Texas Instruments Inc. (NYSE: TXN - News), NASDAQ 100 Trust Shares ETF (NASDAQ: QQQQ - News), AMR Corp. (NYSE: AMR - News), UAL Corp. (NASDAQ: UAUA - News), and Continental Airlines Corp. (NYSE: CAL - News). Notes tech stocks aren't the bargains they were earlier in the year.
David Einhorn's Greenlight Fund: (1) Ameriprise Financial Inc. (NYSE: AMP - News) (2) Microsoft (3) Hospira Inc. (NYSE: HSP - News). In May Einhorn talked about his affinity for Microsoft, saying that buying Microsoft at $23 was like getting Alex Rodriguez for a merely average price in a fantasy-baseball draft.
Steve Mandel's Lone Pine Capital Fund: (1) Brookfield Asset Management Inc. (NYSE: BAM - News) (2) Google Inc. (NASDAQ: GOOG - News) (3) Comcast Corp. (NASDAQ: CMCSA - News). Mandel cut his Google position by 25% in Q3, suggesting it may be getting too rich for him. He added to Comcast and Qualcomm Inc. (NASDAQ: QCOM - News), sold Research In Motion Ltd. (NASDAQ: RIMM - News) and America Movil SA de CV (NYSE: AMX - News), and established a position in Schlumberger Ltd. (NYSE: SLB - News).
Ed Lampert's ESL Investment: (1) Sears Holdings Corp. (NASDAQ: SHLD - News) (2) AutoZone Inc. (NYSE: AZO - News) (3) AutoNation Inc. (NYSE: AN - News). The three comprise Sears Holdings' CEO's entire portfolio. Barron's says many hedge-fund managers own Sears out of admiration for his retailing skills.
Activist investor Carl Icahn: (1) Time Warner Inc. (NYSE: TWX - News) (2) ImClone Systems Inc. (NASDAQ: IMCL - News) (3) American Railcar Industries (NASDAQ: ARII - News).

THE TRADER: Retail Stocks by Vito J. Racanelli
Highlighted companies: Tiffany & Co. (NYSE: TIF - News), The Home Depot Inc. (NYSE: HD - News), Best Buy Co. Inc. (NYSE: BBY - News), Circuit City Stores Inc. (NYSE: CC - News), Wal-Mart Stores Inc. (NYSE: WMT - News), Federated Department Stores Inc. (NYSE: FD - News)Summary: Despite TV coverage of shoppers stampeding through malls, retail stocks were down last week; the internet group was down 7% while department stores fell 4%. According to Lehman Brothers' chief technical analyst, Jeffrey deGraaf, retail stocks tend to peak in the days that straddle Thanksgiving, then drifting down through most of December before Christmas. Generally it's better to wait until just before Christmas to play the sector; its long-term outlook is neutral. Stocks noted: Tiffany & Co. (NYSE: TIF - News) -- showing a good technical pattern. The Home Depot Inc. (NYSE: HD - News) -- neutral. Best Buy Co. Inc. (NYSE: BBY - News) and Circuit City Stores Inc. (NYSE: CC - News) -- among the weakest patterns in the group. Department stores -- look good. Wal-Mart Stores Inc. (NYSE: WMT - News) -- mediocre. Federated Department Stores Inc. (NYSE: FD - News) -- it reported sizzling sales last week, and if it goes down with the sector, it will be a buying opportunity in a couple weeks.

Weak Dollar by Vito J. Racanelli
Summary: Few Americans like the recent beating the U.S. dollar has taken; half of this year's 8-10% slide has come in the past month. A sustained drop could lead to the Fed raising interest rates. Will it continue? Hard to say, but with interest rates and growth rising in most other parts of the world, unlike the U.S., its drop may be sustainable. For one domestic group, American multinational corporations, who derive a good part of thei