Jim Cramer Blog

Bullish:
Nvidia (NVDA): Semiconductor play of choice.
Dynegy (DYN): Cramer thinks a buy below $9.
SunPower (SPWR)
First Solar (FSLR).
Taser (TASR): "Ring the register."
Bearish:
Sears Holdings (SHLD): Needs housing to do better
DSW (DSW): Can't get behind
Metabolix (MBLX): First Solar or Sun Power instead
Vasco Data Security (VDSI)

Labels: DSW, DYN, FSLR, Jim Cramer, Mad Money Lightning Round, MBLX, NVDA, SHLD, SPWR, TASR, VDSI

Nvidia (NasdaqGS: NVDA - News): 'They make the fastest gaming chips. They make the best ones. You buy some and then, if it comes in, you buy some more ... It's a growth stock in the right quarter, at the right time of the year ... NVDA is two thumbs up.'Dynegy (NYSE: DYN - News): 'I like DYN as an asset play, and if the earnings don't hit the number, because of some natural gas realization, come on ('mon-back sound)... step up to the plate...'China Telecom (NYSE: CHA - News)Baidu.com (NasdaqGS: BIDU - News)Nymex (NYSE: NMX - News): 'I believe someone will buy, but I would not recommend a stock just on its takeover ability alone... I would emphasize that, on its earnings - and the earnings here are unbelievable.'Teck Cominco (NYSE: TCK - News): 'People worry that China doesn't have enough demand... that maybe our economy is so slow that it's going to bring down the rest of the world. That's not true. TCK is still a buy. I like it very much.'Lockheed Martin (NYSE: LMT - News): 'I want to buy the defense stocks here. I think it's a terrific opportunity. Don't take your cue from the stocks. Take your cue from the companies, and LMT is doing incredibly well!'General Dynamics (NYSE: GD - News)Raytheon (NYSE: RTN - News)Northrop Grumman (NYSE: NOC - News)Ralcorp Holdings (NYSE: RAH - News): 'I've liked RAH before on the show. I like it now.'ENGlobal (AMEX: ENG - News): 'This is a company that does everything you need to do to produce refining petroleum. It's right. You're right. I'm staying with it. 'Thornburg Mortgage (NYSE: TMA - News): 'I just don't think they're as bad as the bears think.'Allergan (NYSE: AGN - News): ' ... for anything eye... I'm going to send you that way.'
Bearish calls:
Spectranetics (NasdaqGM: SPNC - News): ' ... don't know whether I want to buy it all the way up here... don't buy, don't buy... there are so many that are still down, but it's a good quality company.'Boston Scientific (NYSE: BSX - News)Perfect World (PWRD): 'I am just going to say forget about it... it's too darn hard.'RealNetworks (NasdaqGS: RNWK - News): 'Even thought the guys that run those companies throw really great cocktail parties, and probably wish that I was there, no thank you! (buzzer sounds)... 'Lowe's Companies (NYSE: LOW - News): 'You know, I can't recommend this sector right now - don't buy, don't buy - even though I know they have really easy comparisons. I can't go there. That sector's being too hurt. No to retail.'Advanced Medical Optics (NYSE: EYE - News)Best Buy (NYSE: BBY - News): 'I think there's $3 up, $3 down... which means to me - don't buy, don't buy - not worth playing... '
Published by SeekingAlpha

Labels: AGN, BIDU, CHA, DYN, ENG, GD, Jim Cramer, Lightning Round, LMT, NMX, NOC, NVDA, RAH, RTN, TCK, TMA

Nvidia (NasdaqGS: NVDA - News): 'They make the fastest gaming chips. They make the best ones. You buy some and then, if it comes in, you buy some more ... It's a growth stock in the right quarter, at the right time of the year ... NVDA is two thumbs up.'Dynegy (NYSE: DYN - News): 'I like DYN as an asset play, and if the earnings don't hit the number, because of some natural gas realization, come on ('mon-back sound)... step up to the plate...'China Telecom (NYSE: CHA - News)Baidu.com (NasdaqGS: BIDU - News)Nymex (NYSE: NMX - News): 'I believe someone will buy, but I would not recommend a stock just on its takeover ability alone... I would emphasize that, on its earnings - and the earnings here are unbelievable.'Teck Cominco (NYSE: TCK - News): 'People worry that China doesn't have enough demand... that maybe our economy is so slow that it's going to bring down the rest of the world. That's not true. TCK is still a buy. I like it very much.'Lockheed Martin (NYSE: LMT - News): 'I want to buy the defense stocks here. I think it's a terrific opportunity. Don't take your cue from the stocks. Take your cue from the companies, and LMT is doing incredibly well!'General Dynamics (NYSE: GD - News)Raytheon (NYSE: RTN - News)Northrop Grumman (NYSE: NOC - News)Ralcorp Holdings (NYSE: RAH - News): 'I've liked RAH before on the show. I like it now.'ENGlobal (AMEX: ENG - News): 'This is a company that does everything you need to do to produce refining petroleum. It's right. You're right. I'm staying with it. 'Thornburg Mortgage (NYSE: TMA - News): 'I just don't think they're as bad as the bears think.'Allergan (NYSE: AGN - News): ' ... for anything eye... I'm going to send you that way.'
Bearish calls:
Spectranetics (NasdaqGM: SPNC - News): ' ... don't know whether I want to buy it all the way up here... don't buy, don't buy... there are so many that are still down, but it's a good quality company.'Boston Scientific (NYSE: BSX - News)Perfect World (PWRD): 'I am just going to say forget about it... it's too darn hard.'RealNetworks (NasdaqGS: RNWK - News): 'Even thought the guys that run those companies throw really great cocktail parties, and probably wish that I was there, no thank you! (buzzer sounds)... 'Lowe's Companies (NYSE: LOW - News): 'You know, I can't recommend this sector right now - don't buy, don't buy - even though I know they have really easy comparisons. I can't go there. That sector's being too hurt. No to retail.'Advanced Medical Optics (NYSE: EYE - News)Best Buy (NYSE: BBY - News): 'I think there's $3 up, $3 down... which means to me - don't buy, don't buy - not worth playing... '
Published by SeekingAlpha

Labels: AGN, BIDU, CHA, DYN, ENG, GD, Jim Cramer, Lightning Round, LMT, NMX, NOC, NVDA, RAH, RTN, TCK, TMA

Bullish Calls:

FactSet Research Systems (NYSE: FDS - News): 'I think this is a natural to be snapped up by someone.'Dynegy (NYSE: DYN - News): 'A lot of people feel that it's speculative... All I can say is that they don't do as well when natural gas is weak... But that company is worth - on a break up value - a lot more ...buy, buy, buy!'Brocade Communications (NasdaqGS: BRCD - News): 'BRCD is being unfairly beaten up... It's just not that bad... But I have to tell you - if you're going to be in that sector - BRCD goes up against Cisco and CSCO is my favorite stock in that group.'EMC (NYSE: EMC - News): 'I've been buying EMC Corp. for my charitable trust, because of VM Ware... It's going to be the next big IPO since Google.'Cisco Systems (NasdaqGS: CSCO - News): 'CSCO is my favorite stock in that group.'Indevus Pharmaceuticals (NasdaqGM: IDEV - News): ' ... we've been behind IDEV... We think that that's a great spec play, and it's only a buck off its high, but we continue to like it very much.'Costco (NasdaqGS: COST - News):'I think that COST is a buy. It's my favorite retailer... literally, my favorite retailer of the group that everybody knows I cannot stand! COST reigns supreme! 'Acergy (NasdaqGS: ACGY - News): 'I think that, when you get a stock like ACGY, you've just got to ride it.'CF Industries (NYSE: CF - News): 'Please, let's ring a little register on the ag bull market. Sell, sell, sell!... No, I'm not backing away from the ag bull market! I'm simply saying that, when we play greedy, we get our heads cut off.'Mosaic (NYSE: MOS - News)Agrium (NYSE: AGU - News)Potash (NYSE: POT - News)
Bearish calls:
First Solar (NasdaqGM: FSLR - News): ' ... sell, sell, sell! - and the answer is, I've not done my job well enough. We must not be pigs. We will get killed.'General Cable (NYSE: BGC - News): 'I'm thinking I'm doubling on some of these... I've got doubles. Why am I not being more aggressive in telling people to ring the register .'Buffalo Wild Wings (NasdaqGS: BWLD - News): 'We must not be pigs.'Alcatel-Lucent (NYSE: ALU - News): 'Patricia Russo is on the Wall of Shame! And, once again, I tell you that, as long as she's running that company, despite a fabulous bull market in communications equipment, that remains a sell, sell, sell! '

Published By SekingAlpha

Labels: ACGY, AGU, ALU, BGC, BRCD, BWLD, CF, COST, CSCO, DYN, EMC, FDS, FSLR, IDEV, Jim Cramer, Lightning Round, Mad Money, MOS, POT

Stocks went on a roller-coaster ride today following large losses yesterday. Towards the close, the selling intensified, with the Dow ending down -208 points, the Nasdaq losing -37, and the S&P 500 finishing the session -24 points lower. Upbeat GDP data could not revive stock prices as investors did not want to hold stocks heading into the weekend. Oil, meanwhile, rose $2.07 to close at $77.02.
In economic news, the Commerce Department said Gross Domestic Product (GDP) rose a better-than-expected 3.4% in the second quarter. Wall Street economists were expecting a gain of 3.2%. The personal expenditure index, a key gauge of inflation, rose 4.3% in the second quarter. Adding to the economic data was the Reuters/University of Michigan Consumer Confidence Index, which rose to 90.4 from 85.3 in June.
Corporate earnings continued to filter in on the last day of trading for the week. Oil giant Chevron (NYSE: CVX - News) reported that its second-quarter profit climbed 24% to $5.38 billion, or $2.52 cents a share, up from $4.35 billion, or $1.97 cents a share, last year. Revenues hit $56.09 billion, up from $53.54 billion in the same quarter a year ago. Excluding a gain from the sale of Dynegy (NYSE: DYN - News) stock and a loss related to debt redemption, EPS would have been $2.37, which on that basis would have beat consensus estimates by 7 cents.
Elsewhere, Fortune Brands (NYSE: FO - News) said net income came in at $232 million, or $1.48 a share, down -6% from the $247.8 million, or $1.63 a share, it recorded last year. The decline was attributable to a tax-related gain last year. Excluding a restructuring charge, EPS was $1.53, which handedly beat analyst estimates of $1.44. Net sales rose 4% to $2.35 billion on strength of Spirits and its golf business. Shares rose 1.5% on the session.
In M&A, medical technology company Medtronic (NYSE: MDT - News) agreed to acquire Kyphon (Nasdaq: KYPH - News) for $3.9 billion, or $71 a share. The deal represents a premium of 36% over where Kyphon's stock closed yesterday. The deal will help Medtronic expand its growing spinal treatment business.
In other news, shares of clothing retailer Gap (NYSE: GPS - News) rose 5.2% after the company announced that it has hired Glen Murphy as CEO. Murphy is a veteran of the food and drug industry. He will replace Robert Fisher.
By the BullMarket.com Staff

Labels: CVX, DYN, FO, GPS, KYPH, MDT

Eurovision Stock Contest: Philips Electronics N.V. (NYSE: PHG - News)
Cramer is dedicating a segment this week to European stocks because they are hot right now and, unlike American stocks, are resistant to the rising interest rates in their respective countries. He would not choose an ETF, since they do not contain best-of-breed companies, but are filled with "Eurotrash" he said. Monday's pick is PHG which Cramer says worth 20% more than its current price. In addition, this manufacturer of high-tech gear has a 20% upside, although Cramer warns investors not to pay too much for the stock.
Ride the Wild Bull: Woodward Governor Co. (NasdaqGS: WGOV - News)
Cramer says few have heard of WGOV until now, and the company is getting attention because it has doubled in the past two years. He adds the aerospace cycle is going to be long, and stocks in wild bull markets can double twice. Cramer adds WGOVis also in a double sweet spot because it has one foot in the aerospace sector and one in energy, and it resembles Honeywell and Johnson Controls combined.
Going to Pieces: American Standard (NYSE: ASD - News)
Cramer says he doesn't care about ASD's earnings report on Wednesday, and is interested in ASD because it is getting ready to spin off Wabco, its vehicle systems business, followed by its kitchen and bath business. ASD will then become Trane, a heating, ventilation and air-conditioning company. Cramer thinks its possible a private equity company will swallow ASD whole before the spin-offs, and notes Deutsche Bank has said ASD is worth $70 in spite of its $61 price tag. Cramer predicts the stock will rise $4 in the short-term, and would buy half before ASD reports on Wednesday and half on a decline.
CEO Interview: Bruce Williamson, Dynegy (NYSE: DYN - News)
Bruce Williamson discussed the difficulty of building power plants and how supply is static while demand is increasing. DYN's current power plants will benefit from "rising value and rising economic performance." Cramer said Williamson is a moneymaker and DYN should be valued not just in the short term, but based on all of its plants. "You'll get a much higher price," Cramer said.
Published by SeekingAlpha

Labels: ASD, DYN, Jim Cramer, Mad Money, PHG, WGOV

Potash (NYSE: POT - News): 'POT has been on the 52-week high list for what seems like months. I still like it ... Stay with POT.'Mosaic (NYSE: MOS - News): ' ... fertilizer ... Mosaic, Agrium and Monsanto ... these are all ag plays. And the ag complex, along with the aerospace complex, are in major bull market mode.'Monsanto (NYSE: MON - News)Agrium (NYSE: AGU - News)Cisco (NasdaqGS: CSCO): 'I think CSCO - with a lot of stock to buy back - with some great product offerings - should be bought at $26 ... we're down a buck and a half, and I think it's worth it to pull the trigger right here.'Virgin Media (NasdaqGS: VMED): ' ... hasn't even started the triple play yet. I was early in that stock. Early means 'wrong' in the parlance of Wall Street... But we're down a dollar in this stock and I think we should stay with VMED.'Clearwire (NasdaqGS: CLWR): 'It should never have gone down to $17. That was just crazy. I want to stick by CLWR. 'ViaSat (NasdaqGS: VSAT): 'I was surprised to see that stock go down too ... grows at 17%, with a 20x multiple. I think you've got to stick with it! I would even pull the trigger now that I've taken a look at it.'ING Group (NYSE: ING - News): 'I say ING is maybe one of the cheapest banks in the world. I like their online strategy. I am with you, I'd buy that stock!'Cleveland-Cliffs (NYSE: CLF - News): 'I think that CLF - which is the largest iron ore producer in this country - is going to be hard to maintain its independence. I want to buy some below $70...but I was, like you, chagrinned about that delayed earnings report.'3M (NYSE: MMM - News): 'This is a weak-dollar stock. We've got a weak dollar environment, a big Asian proprietary business. MMM has been a monster, a monster! MMM is going higher. MMM is still cheap. It can go up another two multiple points on that growth rate. I say it goes to $100. It's the strongest stock in the Dow.'Dynegy (NYSE: DYN - News):El Paso (NYSE: EP - News): 'We have been behind this company, ever since they decided to clean up their balance sheet.'Dynegy (NYSE: DYN - News)Halliburton (NYSE: HAL - News)
Bearish calls:
Harris Interactive (NasdaqGS: HPOL): 'I don't see a lot going on there ... Don't buy, don't buy.'Lamar Advertising (NasdaqGS: LAMR): ' ... even though the quarter was terrific, I worry about regulation coming in ... They make billboards that change, and they're very exciting, but maybe so exciting that they cause accidents! ... Sell, sell, sell!'HMS Holdings (NasdaqGS: HMSY): 'This stock is very expensive. It sells at more than twice its growth, so I cannot recommend it on this show. Don't buy, don't buy. But I do like that segment very much. But valuation keeps me from pulling the trigger.'Giant Industries (NYSE: GI - News): 'I myself am a seller of the refiners. I think that margins have peaked. I would sell that stock. Ring the register. You've got a gigantic gain. Please don't give that gain back. Sell, sell, sell!'
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Labels: AGU, CLF, CLWR, DYN, EP, HAL, ING, Jim Cramer, Lightning Round, MMM, MON, MOS, POT, VMED, VSAT

Good As Golden Star Resources (AMEX: GSS - News)
Cramer likes GSS as a way to play the CNBC Million Dollar Portfolio Challenge. The company operates in South America and Africa, and is therefore highly speculative, but has a large mine in Ghana, "an island of stability." The bears are worried about a sulfide-processing plant GSS is building in Ghana, but Cramer thinks investors should use this anxiety as an opportunity to buy. He predicts the announcement of a new plant, which will double production and lower costs, will be sooner than expected. With this news, analysts will raise their numbers and the stock will go higher. Cramer also believes GSS may be taken over, and he likes the sector, since gold is moving up. Cramer would not swap out of best-of-breed Yamana to buy GSS, but likes the price at $4.46, and urges investors to use limit orders when buying.
Laser King: Ionatron (NasdaqGM: IOTN), Palomar Medical Technologies (NasdaqGS: PMTI), Syneron Medical (NasdaqGS: ELOS), Cynosure (NasdaqGM: CYNO)
Cramer noted that last Friday's laser pick, IOTN has risen 17% since his recommendation, and he decided to choose a new "laser king." Cramer has liked PMTI in the past and declared ELOS the "czar of lasers" when he was discussing cosmetic laser procedures. Now CYNO wears the laser king crown, since it has doubled while ELOS hasn't moved. In addition, CYNO has 30% growth and is levered to the rest of the world. Cramer added he prefers "a performer that's pricey" to "an underperformer that's cheap." PMTI is Cramer's second-best pick, but is more costly than CYNO, and he likes ELOS, but doesn't see it going up in the near future.
Game Plan for the Coming Week: Fluor (NYSE: FLR - News), McDermott International (NYSE: MDR - News), Foster Wheeler (NasdaqGS: FWLT), CVS/Caremark (NYSE: CVS - News), Dynegy (NYSE: DYN - News), Nabors (NYSE: NBR - News), Halliburton (NYSE: HAL - News), Parker Drilling (NYSE: PKD - News), Forest Oil (NYSE: FST - News), L-1 Identity Solutions (NYSE: ID - News), Precision Castparts (NYSE: PCP - News), Six Flags (NYSE: SIX - News), Syntax-Brillan (NasdaqGM: BRLC)
Cramer suggesting looking at infrastructure, especially MDR, FLR, and FWLT which are "terrific" companies and which should benefit from high oil prices. He would establish half a position before their reports and half after, and would buy the stocks on any weakness. On Monday, he would also buy FST. Cramer praises CVS as having "valued itself even further into the health care heaven" with its cheap Caremark purchase, and would buy ahead of its Tuesday report, adding he also likes DYN. PKD, which also reports on Tuesday, may be bought by NBR or HAL which discussed expansion during their conference calls, Cramer commented. His Wednesday picks include ID, PCP and SIX. Since the LCD TV sector is improving, Cramer likes BRLC which reports on Thursday after the markets close.
CEO Interview: Nolan Archibald, Black and Decker (NYSE: BDK - News)
Nolan Archibald says BDK's report was strong because of the company's "great brands and innovative products" which thrive in down times. BDK is featuring new Dewalt brand products including concrete breakers, hammers and generators. Archibald added the company is going to continue buying back shares. Cramer commented BDK is "the real deal" and sees it rising from $92.36 to $100.
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Labels: BDK, CVS, DYN, ELOS, FLR, FST, GSS, HAL, ID, Jim Cramer, Mad Money, MDR, NBR, PCP, PKD, PMTI, SIX

Bullish calls:
Clean Harbors (NasdaqGS: CLHB): 'It's only a matter of time before we refocus again on clean water. I want you to hold on to ... but it won't be an immediate turn.'PG&E (NYSE: PCG): 'Utilities have done quite well.'Exelon (NYSE: EXC)Dynegy (NYSE: DYN)McDonald's (NYSE: MCD): ' Reported a monster good quarter. They guided things up ... even after this incredible run ... if this stock went to 60 bucks, it would not be expensive ... a quintessential stock to buy and put away. If I change my mind, you will know it.'Fastenal (NasdaqGS: FAST): 'Fastenal good, Sears great.'Sears Holdings (NasdaqGS: SHLD): 'Fastenal good, Sears great.'Home Depot (NYSE: HD)Lowe's (NYSE: LOW)AES (NYSE: AES): 'Have reinvented themselves. At 22 bucks, I still find it very cheap. I want to buy more.'Windstream (NYSE: WIN): 'Interesting conservative name ... 6% yield. I like that stock.'GigaMedia (NasdaqGM: GIGM): ' ... grows at 40%, has only a 20% multiple. I'll back it.'Boeing (NYSE: BA)Costco (NasdaqGS: COST)Paccar (NasdaqGS: PCAR): 'I love Paccar.'Cummins (NYSE: CMI): 'You know I like Cummins .'Tata Motors (NYSE: TTM): 'Let's buy it, let's buy it, aggressively.'Qualcomm (NasdaqGS: QCOM): 'Only semiconductor company that I am currently recommending on Mad Money.'
Bearish calls:
Starbucks (NasdaqGS: SBUX)
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Labels: AES, BA, CLHB, CMI, DYN, EXC, HD, Jim Cramer, Lightning Round, LOW, Mad Money, MCD, PCG, TTM, WIN

OM Group (NYSE: OMG - News), Fuel Tech (NasdaqGM: FTEK), Foster Wheeler (NasdaqGS: FWLT), Shaw Group (NYSE: SGR - News)
Completing his week-long segment which featured "green" stocks, Cramer unveiled his two favorite environmental companies: OMG and FTEK. OMG has 25% of the world's supply of cobalt which is used for hybrid car batteries. Cramer predicts cobalt should remain stable or go higher, especially since there are no new sources until 2009. OMG also has exposure to copper, which Cramer thinks will become more valuable, and is fixing its balance sheet. While he recommended FWLT and SGR earlier in the week as clean power picks, Cramer says they are for conservative investors, but for those who are looking for some risk, he likes FTEK as the ultimate speculative Green Day play. The company has technology to make coal power cleaner by reducing nitrogen-oxide emissions and has been getting "contract after contract." Since 49% of electricity in the US is derived from coal, and ethanol is not yet efficient, FTEK is "pretty important." On a general note, Cramer said even though the market is up, he is still bullish; “I am not exaggerating when I say the best is yet to come. We are going to be up 17%" this year."
Picks for the Week Ahead: VF Corp. (NYSE: VFC - News), Parker-Hannifin (NYSE: PH - News), Eaton (NYSE: ETN - News), Honeywell (NYSE: HON - News), Akamai Technologies (NasdaqGS: AKAM), Apple (NasdaqGS: AAPL), Boeing (NYSE: BA - News), PepsiCo (NYSE: PEP - News), Allegheny Technologies (NYSE: ATI - News), Exxon Mobil (NYSE: XOM - News), Halliburton (NYSE: HAL - News), Level 3 Communications (NasdaqGS: LVLT), NYSE (NYSE: NYX - News), Cummins (NYSE: CMI - News), National Oilwell Varco (NYSE: NOV - News)
While Monday will be quiet, Cramer says there will be a lot going on the market for the remainder of the week. On Tuesday, VFC and PH will report, and he expects an upside for both companies since VFC is a "Benefit of the Doubt" play, and he predicts PH will ride the wave with ETN and Honeywell. Wednesday will be busy, and Cramer limited his picks to five; he would buy Akamai for its streaming video and Apple for its iPhone ahead of their earnings reports, BA because it is going to $100, and ATI which will report a "giant number" and Pepsi. On Thursday, he would take a look at XOM, which will report, as well as HAL and LVLT, both of which have "lagged” but may run. Cramer's growth stock of the year, NYX, also reports on Thursday. Cummins and NOV are on the agenda for Friday and are “not done going up"
Mad Mail: Lamson & Sessions (NYSE: LMS - News), Charter Communications (NasdaqGM: CHTR), Dynegy (NYSE: DYN - News), Rite Aid (NYSE: RAD - News)
Cramer likes LMS as a potential acquisition and predicts the risk/reward is 1 point down and 6 points up. Concerning the CNBC 's Million Dollar Portfolio Challenge, Cramer said his favorite stocks are CHTR, DYN and RAD as "great single-digit plays and LVLT as a "good game name."
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Labels: ATI, BA, CMI, DYN, ETN, HAL, HON, Jim Cramer, LMS, Mad Money, NOV, NYX, OMG, PEP, PH, RAD, SGR, VFC, XOM

Jockeying for Position: Dynegy (NYSE: DYN - News), Brocade Communications (NasdaqGS: BRCD), Qwest (NYSE: Q - News)
Cramer suggested three "horse racing stocks" under $10 to keep investors interested. These are just temporary plays and should be sold when they reach $12. He notes DYN was "trashed" because of its former CEO Chuck Watson, but has been rescued by current CEO Bruce Williamson. He notes that DYN could be an attractive takeover target. "Brocade has momentum but is scary -- which is exciting," Cramer said about his second-favorite pick, which recently bought out its competitor and is in a position to raise prices. Cramer's favorite "horse" is Qwest which is around $9, but should be the first to reach the finish line at $12, because of its big federal contract.
Blue Stocking Stocks: Walgreen (NYSE: WAG - News), Grainger (NYSE: GWW - News) and Automatic Data Processing (NYSE: ADP - News)
Cramer discussed his favorite "aristocrat" stocks which pay solid dividends and provide protection when the economy is rough. He considered three "aristocrats," and eliminated WAG because it might have to stop raising its dividend to buy Express Scripts. While he expects GWW to boost its dividend, Cramer thinks the stock is too cyclical. Cramer's favorite artistocrat stock is ADP; "If there is such a thing as a blue chip, ADP is it." First, by spinning off its unprofitable brokerage service business, ADP may see 12-13% revenue growth. Secondly, Cramer likes ADP's "gigunda" $750 million buyback, and comments that ADP doesn't just have the history of raising its dividend, it has the money to continue dividend increases.
Mad Mail: Lundin Mining (AMEX: LMC - News), Dean Foods (NYSE: DF - News), Incyte Corporation (NasdaqGM: INCY)
Cramer told a viewer not to get discouraged with LMC because it is buying up mines. He would pick up more LMC on any pullback. He commented DF is "going back to where it was before it paid the dividend" of $15, and says the company is well-managed and pro-shareholder. When asked to defend his recommendation of INCY, which has no phase III drugs, over a company like Osiris Therapeutics with products in the pipeline, Cramer responded the best strategy for dealing with biotech is to avoid companies in the headlines and to find a biotech like INCY which has " its whole future ahead of it."
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Labels: ADP, DF, DYN, GWW, Hot Stocks, Jim Cramer, LMC, Mad Money, Q, WAG

Dynegy (NYSE: DYN - News), Mirant (NYSE: MIR - News), NRG (NYSE: NRG - News), Foster Wheeler (NasdaqGS: FWLT): Cramer predicts DYN will go to $13 from $10 and comments CEO Bruce Williamson is "fabulous" and doesn't get enough credit. Although DYN has doubled, people are still not paying attention. He also likes FWLT as a great way to play nuclear and notes stocks like DYN and FWLT are no longer hostages to oil, which is declining while these names are on the rise. News that Mirant is for sale will bring up NRG, which is also doing well on a positive note from Jeffries, notes Cramer.
D.R. Horton (NYSE: DHI - News) and Pulte (NYSE: PHM - News): Cramer praised Ivy Zelman of Credit Suisse for her downgrade of DHI and PHM and called her report "eye opening." In brief, her research indicated DHI and PHM "could go much lower, and book value seems to mean nothing." Zelman predicts a 15%-20% decline for homebuilders who haven't sufficiently reduced their land holdings.
Published by SeekingAlpha

Labels: DHI, DYN, FWLT, Jim Cramer, MIR, NRG, PHM, Stop Trading

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

Labels: BBI, BEAS, BIG, DENN, DYN, Ebay, F, Jim Cramer, Lightning Round, Mad Money, NWS, NYX, RIO, USG, YHOO, ZQK

U.S.-listed shares of Chinese companies plunged in the wake of the overnight sell-off in Shanghai. Shares of Mindray Medical (NYSE:MR - News), Guangshen Railway Company Ltd. (NYSE:GSH - News), Trina Solar (NYSE:TSL - News), China Southern Airlines (NYSE:ZNH - News) and Aluminum Corp. China (NYSE:ACH - News) all fell on heavier-than-average volume.
Shares of 11 exchange traded funds based on Asian markets fell sharply Tuesday, reflecting fears of economic upset after the Shanghai stock market fell almost 9% overnight. ETFs such as iShares:FTSE/Xinhua (NYSE:FXI - News), PowerShares Golden Dragon (AMEX:PGJ - News) and iShares MSCI Singapore Index Fund (AMEX:EWS - News) were hit hard.
Apple Inc. (NasdaqGS:AAPL - News) shares slumped after the company said Monday it would delay the release of its AppleTV set-top box product until mid-March. The AppleTV had originally been scheduled to be shipped in February, but an Apple spokeswoman said, "Wrapping up AppleTV is taking a few weeks longer than we projected."
AutoZone Inc. (NYSE:AZO - News) said second-quarter net income for the three months ended Feb. 10 rose 6.2% to $103 million, or $1.46 a share, from $97 million, or $1.25 a share in the year-ago period. Sales rose to $1.3 billion from $1.25 billion. Analysts surveyed by Thomson Financial forecast earnings of $1.45 a share and revenue of $1.3 billion, on average.
Blockbuster Inc.'s (NYSE:BBI - News) fourth-quarter profit dropped sharply on higher corporate expenses, the video rental company said Tuesday. Blockbuster earned $12.9 million, or 5 cents a share, down from $18 million, or 9 cents, in the fourth quarter of 2005. On an adjusted basis, the company said it would have earned $20.4 million, or 9 cents a share, vs. $25.0 million, or 12 cents. Revenue came in up 1.4% to $1.51 billion on an increase in worldwide same-store merchandise sales -- sales at stores open more than a year -- and favorable currency. The average estimate of analyst polled by Thomson Financial had been for Blockbuster to earn 5 cents a share on revenue of $1.47 billion.
Cabela's Inc. (NYSE:CAB - News) said it is filing a preliminary prospectus supplement with the Securities and Exchange Commission regarding a public offering of 4.1 million shares.
CBRE Realty Finance Inc. (NYSE:CBF - News) shares dropped after the Hartford, Conn.-based commercial real estate finance company reported fourth-quarter net earnings of $3.5 million, or 12 cents a share, up from $1.73 million, or 9 cents a share, in the year-ago period. Adjusted funds from operations rose to $5.9 million, or 19 cents a share, from $2.5 million, or 13 cents a share, last year. Revenue rose to $25.6 million from $8.78 million. For fiscal 2007, CBRE expects earnings of 86 cents to 96 cents a share and adjusted funds from operations of $1.10 to $1.20 a share.
Centennial Communications Corp. (NasdaqGS:CYCL - News) said certain affiliates of the Blackstone Group have agreed to sell 10 million shares of Centennial's common stock in an underwritten public offering at a price of $8.05 per share. Wall, N.J.-based Centennial, a provider of wireless and communications services, will not receive any proceeds from the sale of shares. Following the completion of the offering, the Blackstone Group affiliates will own 15.17 million shares of Centennial's common stock. Centennial shares fell 8.4% to $8.04 in Tuesday morning trade.
Covanta Holding Corp. (NYSE:CVA - News) reported fourth-quarter net income doubled to 8 cents a share as revenue rose to $317.9 million from $303.4 million.
Delphi Corp. (Other OTC:DPHIQ.PK - News) said fourth-quarter losses widened to $853 million from $828 million a year ago. The loss for the quarter ending December includes $200 million in impairment charges. Revenue fell to $6.4 billion from last year's $6.8 billion, while non-General Motors revenue was flat at $3.7 billion. For all of 2006, the bankrupt Troy, Mich. maker of auto parts lost $5.5 billion, which includes $3 billion in charges related to the attrition of more than 20,000 employees.
Dillard's Inc. (NYSE:DDS - News) said fourth-quarter earnings rose to $155 million, or $1.90 a share, from $98.5 million, or $1.24 a share, a year earlier. Results for the quarter ending Feb. 3 include an interest credit of 8 cents a share and a tax benefit of 79 cents a share. Excluding these non-recurring items, earnings would have been $1.03 a share. Revenue increased 3.3% to $2.46 billion from last year's $2.38 billion, while same-store sales declined 4%. Analysts surveyed by Thomson Financial had been expecting earnings of $1.09 a share and revenue of $2.42 billion, on average. Shares of the Little Rock, Ark. department store chain closed Monday down 3 cents at $34.97.
DTE Energy Co. (NYSE:DTE - News) reported fourth-quarter net income fell to 79 cents a share from $2.14 a share in the year-earlier quarter.
Dynegy Inc. (NYSE:DYN - News)said it swung to a fourth-quarter net loss of $58 million, or 12 cents a share. The firm reported a profit of $293 million, or 74 cents a share a year earlier, which included a $690 million gain from discontinued operations. Revenue for the quarter fell 36.2% to $397 million. Analysts polled by Thomson Financial had expected a loss of 4 cents a share. The firm said its proposed combination with LS Power remains on track for completion at the end of the first quarter of 2007. The deal is expected to provide more predictable cash flows, the company noted. It added its Midwest and Northeast regions delivered a stronger performance due to higher prices realized, though volumes were lower. The company cut its 2007 operating cash flow estimate to a range of $500 million to $600 million from a range of $600 million to $700 million due to a change in the timing of forward sales receipts. It maintained its forecast for 2007 earnings before interest, tax, depreciation and amortization of $1.02 billion to $1.13 billion.
Federated Department Stores Inc. (NYSE:FD - News) turned in higher fourth-quarter earnings that included hefty charges, including a loss on the sale of bridal group businesses, but offered a sharply lower-than-expected forecast. But the retailer attempted to upstage that news with a plan to change its corporate name to Macy's Group Inc. At the same time, Federated also upped its share buyback program and announced a quarterly dividend.
Focus Media Holding Ltd., (NasdaqGM:FMCN - News) the Shanghai advertising company, reported fourth-quarter net income more than tripled as revenue nearly tripled to $68.3 million.

Published By MarketWatch

Labels: AAPL, ACH, AZO, BBI, CAB, CBF, CVA, CYCL, DDS, DTE, DYN, EWS, FD, FMCN, FXI, GSH, MR, PGJ, TSL, ZNH

"Pipeline Play": Biosite (NasdaqGS: BSTE)
Cramer wanted viewers to take a look at Biosite which will be in demand if the Democrats "storm the winter palace" in November, because the money will go out of Big Pharma into "small, diagnostic plays." He likes the fact that Biotech is new and not yet played out, and comments that this producer of diagnostic tests keeps reinvesting money into new products. Cramer added Biosite is "sitting on top of a new product cycle," and should see an upside as well as more analyst coverage. He also predicts a short squeeze which should bring the stock up, and notes the company implemented a 12% buyback of its stock, and Fidelity is increasing its stake in the company from 12% to 15%. Cramer likes Biosite as a "pipeline story" and thinks the shorts are going to be sorry.
Here Comes the Sun Microsystems (NasdaqGS: SUNW)
Cramer declares that SUNW, a stock he has "hated for a very long time," is now an "under -$10 turnaround" because its new management is making serious changes by cutting costs and continuing to improve its sales. However, he cautions against impulse buying, and urges investors to find a good entry point and not to buy before Monday afternoon. Cramer sees upgrade potential, notes that its server business is "en fuego" and its software business is strong. He reminds investors to use limit orders when buying.

The Week Ahead: GlobalSantaFe (NYSE: GSF - News), Marvell Technology (NasdaqGS: MRVL), Analog Devices (NYSE: ADI - News), Blockbuster (NYSE: BBI - News), Dynegy (NYSE: DYN - News), Foster Wheeler (NasdaqGS: FWLT), McDermott (NYSE: MDR - News), Charter Communications (NasdaqGM: CHTR), Sprint (NYSE: S - News), Gap (NYSE: GPS - News), Viacom , and VeriFone (NYSE: PAY - News)
On Monday, Cramer suggests buying GSF before it reports a "blowout quarter" and would pick up MRVL after its disappointing report. He sees hope for MRVL because ADI indicated the worst is over in the chip inventory cycle. Cramer says investors should sell BBI before Tuesday and buy some back after a selloff, and he would do the same with DYN. He predicts strong earnings for FWLT and MDR, would buy CHTR ahead of its report, and would only pick up Sprint if it has an "incredibly miserable" quarter. Cramer also suggests taking a look at GPS, Viacom and PAY.
Mad Mail: Sirius Satellite Radio (NasdaqGS: SIRI) and XM Satellite Radio (NasdaqGS: XMSR)
When faced with a potential merger, Cramer says it is better to buy stock in the stronger rather than the weaker company, because even if the deal is off, the better company will rise.
Published By SeekingAlpha

Labels: ADI, BBI, BSTE, CHTR, DYN, FWLT, GPS, GSF, Jim Cramer, Mad Money, MDR,