Jim Cramer Blog

Symbol
Name
Last Trade
Change
Volume
Related Info
QQQQ
NASDAQ 100 TR SER I
44.21 3:11PM ET
0.62 (1.42%)
87,096,430
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SPY
S&P DEP RECEIPTS
143.64 3:06PM ET
1.48 (1.04%)
66,497,711
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SUNW
SUN MICROSYS INC
5.82 3:11PM ET
0.02 (0.34%)
58,209,951
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CEGE
CELL GENESYS INC
5.73 3:11PM ET
1.42 (32.95%)
52,018,001
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KFT
KRAFT FOODS INC
30.45 3:06PM ET
0.40 (1.30%)
43,140,045
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INTC
INTEL CP
19.34 3:11PM ET
0.21 (1.09%)
41,789,489
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FDC
FIRST DATA CP
32.41 3:06PM ET
0.04 (0.12%)
39,717,365
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SIRI
SIRIUS SATELLITE R
3.10 3:11PM ET
0.05 (1.59%)
39,074,062
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IWM
ISHARE RUS 2000 INDX
80.60 3:06PM ET
0.85 (1.07%)
37,546,779
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CSCO
CISCO SYS INC
25.89 3:11PM ET
0.49 (1.93%)
35,550,196
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F
FORD MOTOR CO
8.12 3:06PM ET
0.03 (0.37%)
35,531,708
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MSFT
MICROSOFT CP
27.87 3:11PM ET
0.13 (0.47%)
29,449,881
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HAL
HALLIBURTON CO
32.78 3:06PM ET
0.51 (1.59%)
28,344,753
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TWX
TIME WARNER INC
20.49 3:06PM ET
0.42 (2.09%)
26,045,349
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ORCL
ORACLE CORP
18.36 3:11PM ET
0.22 (1.21%)
25,580,423
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EMC
E M C CP
14.26 3:06PM ET
0.17 (1.21%)
25,380,860
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PFE
PFIZER INC
25.71 3:06PM ET
0.37 (1.46%)
23,159,529
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GE
GEN ELECTRIC CO
35.22 3:06PM ET
0.07 (0.20%)
21,969,676
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MOT
MOTOROLA INC
17.71 3:06PM ET
0.15 (0.85%)
21,814,619
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Labels: CEGE, CSCO, EMC, F, FDC, GE, HAL, INTC, IWM, KFT, MOT, MSFT, ORCL, pfe, QQQQ, SIRI, SPY, SUNW, TWX

Symbol
Name
Last Trade
Change
Volume
Related Info
FDC
FIRST DATA CP
32.45 4:00PM ET
5.55 (20.63%)
118,675,759
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QQQQ
NASDAQ 100 TR SER I
43.59 4:00PM ET
0.06 (0.14%)
89,630,085
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SUNW
SUN MICROSYS INC
5.80 4:01PM ET
0.21 (3.49%)
88,311,934
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SPY
S&P DEP RECEIPTS
142.16 4:15PM ET
0.16 (0.11%)
79,454,680
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INTC
INTEL CP
19.13 4:00PM ET
0.00 (0.00%)
54,267,810
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KFT
KRAFT FOODS INC
30.85 4:00PM ET
0.81 (2.56%)
50,140,924
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F
FORD MOTOR CO
8.09 4:00PM ET
0.20 (2.53%)
44,145,536
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DNDN
DENDREON CORP
14.30 4:00PM ET
1.37 (10.60%)
43,741,541
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MSFT
MICROSOFT CP
27.74 4:01PM ET
0.13 (0.47%)
41,977,553
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SIRI
SIRIUS SATELLITE R
3.15 4:00PM ET
0.05 (1.56%)
39,280,579
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T
AT&T INC.
39.46 4:00PM ET
0.03 (0.08%)
39,047,072
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MOT
MOTOROLA INC
17.56 4:00PM ET
0.11 (0.62%)
36,827,147
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IWM
ISHARE RUS 2000 INDX
79.75 4:15PM ET
0.24 (0.30%)
36,559,000
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CSCO
CISCO SYS INC
25.40 4:00PM ET
0.13 (0.51%)
33,531,852
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HAL
HALLIBURTON CO
32.27 4:00PM ET
0.53 (1.67%)
32,974,720
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EMC
E M C CP
14.09 4:01PM ET
0.24 (1.73%)
31,322,734
Chart, Profile, More
PFE
PFIZER INC
25.34 4:00PM ET
0.08 (0.32%)
30,234,224
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TWX
TIME WARNER INC
20.07 4:00PM ET
0.35 (1.77%)
26,781,864
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AMAT
APPLIED MATERIALS
18.36 4:00PM ET
0.04 (0.22%)
25,500,357
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COF
CAPITAL ONE FINANCIA
73.57 4:01PM ET
1.89 (2.50%)
25,366,605
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Labels: AMAT, COF, CSCO, DNDN, EMC, F, FDC, HAL, INTC, IWM, KFT, MOT, MSFT, pfe, QQQQ, SIRI, SPY, SUNW, T, TWX

Stocks traded flat to mixed for much of the day after a closely watched gauge of U.S. manufacturing activity came in weaker than expected. Late buying helped to give a modest lift to the market as stocks closed fractionally higher. The 10-year Treasury note closed unchanged, while crude oil prices also nudged higher by a few pennies.

The Institute of Supply Management's manufacturing index declined in March to 50.9 from 52.3 in February. While a reading over 50 still indicates expansion in the factory sector, analysts were looking for a reading of 52. Investors were also concerned by a rise in the ISM's price index, since it indicates inflationary pressures.
Dealmaking again caught the attention of investors. Grabbing the headlines was the $29 billion deal for First Data (NYSE: FDC - News) by Kohlberg Kravis Roberts. KKR offered $34 a share for the payments processing company, which amounted to a 26% premium over Friday's closing prices. First Data added 20.6% on the news. Subscribers can read our analysis of the First Data buyout offer in today's issue.
In other M&A news, Global Imaging Systems (Nasdaq: GISX - News) shares surged 46.9% after Xerox (NYSE: XRX - News) signed a deal to buy the seller of office-imaging products and services for $1.46 billion. Tribune Co. (NYSE: TRB - News), meanwhile, agreed to be acquired by Chicago real estate mogul Sam Zell in a deal valued at $8.2 billion. The acquisition plan contains an employee ownership structure. Tribune said it will sell the Chicago Cubs baseball team at the end of the Major League baseball season to cut its debt. In February, Zell sold his firm, Equity Office Properties, to private equity firm Blackstone Group for $23 billion.
European-based recording giant EMI Group split with other music companies and agreed to offer its songs through the Apple (Nasdaq: AAPL - News) iTunes music store without copy protections. EMI's new offerings will cost $1.29 per song, or 30 cents more than copy-protected songs on iTunes, but users will be able to more easily share their purchases with friends. EMI's artists include the Rolling Stones, Coldplay, and Norah Jones. Excluded from the deal is music from The Beatles, which though distributed by EMI, remains under the control of the band's music holding company, Apple Corps Ltd.
In other news, shares of farm and construction equipment maker Deere (NYSE: DE - News) shed -3.8% on an analyst's downgrade. Stifel Nicolaus cut its rating for Deere to "hold" from "buy." Shares of competing equipment makers CNH Global (NYSE: CNH - News) and AGCO (NYSE: AG - News) were also lower in today's trading.
Shares of MT Bank (NYSE: MTB - News) slid -8.5% after the company said that trouble in its subprime residential mortgage segment will cut its expected Q1 income. As expected, the nation's most-troubled subprime lender, New Century Financial, today filed for bankruptcy protection and fired about half of its work force.

By the BullMarket.com Staff

Labels: AAPL, AG, CNH, DE, FDC, GISX, MTB, TRB, XRX

U.S. stocks fell on Monday, after a report showing weaker-than-expected March factory activity revived concerns about the economy's health and a rise in inflation.
The data reversed an advance by stocks sparked by several large takeovers or news of possible deals.
The Institute for Supply Management said factory activity grew in March but at a slower rate than in February and less than analysts had forecast.
It also showed a jump in an inflation component, suggesting rising price pressures could dissuade the Federal Reserve from cutting interest rates soon even as growth slows.
"This (data) is not a number that should support the market. It's highlighting the weakening economy and the inflationary concern that has yet to give the Fed reason to cut interest rates," said Barry Hyman, equity market strategist at EKN Financial Services Inc in New York.
The Dow Jones industrial average (DJI:^DJI - News) was down 14.14 points, or 0.11 percent, at 12,340.21. The Standard & Poor's 500 Index (^SPX - News) was down 3.11 points, or 0.22 percent, at 1,417.75. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was down 7.96 points, or 0.33 percent, at 2,413.68.
Shares of interest-rate sensitive sectors, including banks, led losses, with shares of Citigroup Inc. (NYSE:C - News) down 1.4 percent and Bank of America Corp.'s (NYSE:BAC - News) stock off 1.5 percent.
Takeover news, including a $29 billion proposed buyout of First Data Corp. (NYSE:FDC - News), limited a broader sell-off.
Shares of Citigroup dropped to $50.62 on the New York Stock Exchange, where shares of Bank of America fell to $50.24.
On Nasdaq, shares of Microsoft Corp. (NasdaqGS:MSFT - News), the software maker among tech bellwethers, dropped 0.72 percent to $27.67.
But First Data shares jumped 21.2 percent to $32.69 after the credit-card and payment processor said it had agreed to be bought by private equity firm Kohlberg Kravis Roberts & Co. (KKR.UL). The announcement by First Data valued the deal at $29 billion -- the second largest buyout ever. For details, see (ID:nN02384673).
The sell-off in banking shares also followed a profit warning from M&T Bank Corp. (NYSE:MTB - News), whose stock dropped 7.9 percent to $106.60, after it said late on Friday problems in mortgages with limited income documentation would hurt results. For more on the subprime mortgage market, see (ID:nN16195443).
About 63 banks, or 12.5 percent of U.S.-listed banks, traded within $1 of or below their 52-week lows, according to Reuters data.
Published by Ellis Mnyandu

Labels: BAC, C, DJI, FDC, IXIC, MSFT, MTB, SPX

Wall Street fell Monday after data showed U.S. manufacturing was more sluggish than expected, a further sign that the economy continues to grow at a slower pace.
Stocks briefly had opened higher but fell sharply lower after the Institute for Supply Management said its manufacturing index slipped more than economists projected in March. The index moved to a reading of 50.9 last month, compared to an expected reading of 52.0.
However, keeping stocks afloat was a number of big acquisitions were announced before the market opened. Among them was private equity firm Kohlberg Kravis Roberts & Co.'s deal to take credit card transaction processor First Data Corp. private for about $29 billion.
Wall Street has traded nervously the past few weeks on concerns about rising inflation and the dollar's weakness. On Friday, the major indexes finished the first quarter lower -- with the Dow Jones industrials down 108 points in their feeblest performance since the second quarter of 2005. In mid morning trading, the Dow fell 2.20, or 0.02 percent, to 12,352.15.
Broader stock indicators were also lower. The Standard & Poor's 500 index was down 3.79, or 0.27 percent, at 1,417.07, and the Nasdaq composite index fell 3.32, or 0.14 percent, to 2,418.32.
Published by Joe Bel Bruno, AP Business Writer

Labels: FDC, Stocks

Symbol
Name
Last Trade
Change
Volume
Related Info
GISX
GLOBAL IMAGING SYS
28.70 10:02AM ET
9.20 (47.18%)
1,724,267
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NVAX
NOVAVAX INC
3.16 10:02AM ET
0.57 (22.01%)
4,720,435
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FDC
FIRST DATA CP
32.70 9:57AM ET
5.80 (21.56%)
22,939,325
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QVDX
QUOVADX INC
3.01 10:00AM ET
0.46 (18.04%)
244,097
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SIMC
SIMCLAR INC
7.10 10:02AM ET
1.04 (17.16%)
86,608
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EMT
EMBRATEL PARTI
16.90 9:56AM ET
2.33 (15.99%)
42,800
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XFN
XFONE INC
2.95 9:48AM ET
0.49 (19.92%)
45,900
Chart, Profile, More
BAMM
BOOKS-A-MILLION IN
15.84 10:02AM ET
1.60 (11.24%)
99,601
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EXX-A
E X X INC CL A
3.40 9:40AM ET
0.21 (6.58%)
3,100
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GNVC
GENVEC INC
3.22 10:02AM ET
0.34 (11.81%)
237,560
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ZVUE
HANDHELD ENTERTAINMT
2.88 10:02AM ET
0.13 (4.73%)
193,007
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MEH
MIDWEST AIR GRP INC
14.6001 9:56AM ET
1.0901 (8.07%)
82,800
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DANKY
DANKA BUS ADR
1.17 9:59AM ET
0.09 (8.33%)
51,882
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CTTY
CATUITY INC
2.47 10:02AM ET
0.27 (12.27%)
65,138
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TI
TELECOM ITL NEW
31.31 9:57AM ET
2.65 (9.25%)
127,400
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SLP
SIMULATIONS PLUS INC
10.718 9:56AM ET
0.788 (7.94%)
38,300
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SNSA
STOLT-NIELSEN SA A
31.70 9:53AM ET
2.19 (7.42%)
10,909
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ANS
AIRNET SYSTEMS INC
3.47 9:55AM ET
0.23 (7.10%)
14,300
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MHJ
MAN SANG HLD INC NEW
6.40 9:50AM ET
0.38 (6.24%)
3,100
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AVII
AVI BIOPHARMA INC
2.85 10:02AM ET
0.17 (6.34%)
196,777
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LNX
LENOX GROUP INC
7.06 9:57AM ET
0.48 (7.29%)
51,400
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Labels: ANS, AVII, BAMM, CTTY, DANKY, EMT, FDC, GISX, GNVC, LNX, MEH, MHJ, NVAX, QVDX, SIMC, SLP, SNSA, TI, XFN, ZVUE

Credit-card and payment processor First Data Corp. (NYSE:FDC - News) said on Monday it has agreed to be acquired by private equity firm Kohlberg Kravis Roberts & Co. (KKR.UL) for about $29 billion in the second-largest buyout ever. The deal is the latest in a string of high-profile leveraged buyouts of U.S. corporations in an era of easily accessible financing, ranking only behind KKR's and Texas Pacific Group's ongoing takeover of TXU Corp. (NYSE:TXU - News) in terms of size. Under the agreement, First Data shareholders would be paid $34 for each share of the company they own, a 26 percent premium to where the shares closed on March 30. Based on the 775.1 million shares outstanding the company had in February, the deal has an equity value of $26.4 billion. At $34 per share, KKR is paying 27 times estimated 2007 earnings of $1.24 per share. Based on the $26.4 billion equity value, KKR is paying nearly 14 times estimated 2007 earnings before interest, taxes, depreciation and amortization of $1.9 billion, according to Reuters Estimates. First Data said it was a great time to maximize the company's value and deliver cash to shareholders.
The agreement was unanimously approved by the First Data board of directors based upon the recommendation of the strategic review committee made up of three independent directors.
The deal is expected to close by the end of the third quarter, subject to shareholder and regulatory approvals.
First Data intends to tender for all of its outstanding bonds in conjunction with closing.
The move comes about six months after First Data spun off Western Union (NYSE:WU - News), the payment processing company that built the first transcontinental telegraph line. With private equity firms competing hard for large buyout targets, the First Data deal makes KKR the firm behind the top three largest leveraged buyouts.
Source: Reuters

Labels: FDC, Hot Stocks, Private Equity, TXU, WU

Agnico-Eagle Mines Ltd. (NYSE:AEM - News) reported fourth-quarter earnings more than doubled to 35 cents a share from 13 cents in the year-earlier period. The Toronto gold producer's revenue nearly doubled to $138.4 million from $71.4 million.

Ambassadors International (NasdaqGM:AMIE - News) shares climbed after Carnival Corp. (NYSE:CUK - News) said it signed a definitive agreement to sell its Windstar Cruises brand to Ambassadors $100 million. Carnival said the purchase price includes $40 million cash and the assumption of liabilities, and Carnival will provide mortgage financing for the remaining $60 million. Windstar Cruises operates three vessels and is a unit of Carnival's Holland America Line subsidiary.
Analog Devices Inc. (NYSE:ADI - News) fiscal first-quarter profit rose 26% on 6% higher sales. It sold more microchips used in industrial equipment and consumer electronics.
Arrow Electronics (NYSE:ARW - News) reported fourth-quarter earnings of $128.1 million, or $1.04 a share, up from a year-ago profit of $74.4 million, or 60 cents a share. Excluding certain items, such as restructuring charges and a gain from a tax settlement, the Melville, N.Y., electronics components distributor said it earned $92.2 million, or 75 cents a share, in the latest quarter. Sales rose in the latest three months to $3.49 billion from $2.96 billion in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 73 cents a share in the December period. Looking ahead, Arrow sees earnings of 72 to 76 cents a share in the first quarter on sales ranging from $3.525 billion to $3.725 billion. Wall Street's current consensus estimate is for earnings of 74 cents a share in the March period.
Catalina Marketing Corp. (NYSE:POS - News) said it received an unsolicited proposal from ValueAct Capital Master Fund LP to acquire by merger all of the Catalina stock it doesn't already own, for $32 a share. Jeffrey Ubben, a Catalina director since May 2006, is principal owner of ValueAct, according to a statement. Catalina said it advised ValueAct that its proposal is under consideration by the company's board of directors.
Ensco International Inc.'s (NYSE:ESV - News) fourth-quarter net income rose to $210.4 million, or $1.39 a share, from $103.6 million, or 67 cents a share, a year ago. Earnings from continuing operations for the quarter were $1.36 a share, up from 65 cents a year ago. A Thomson Financial survey of analysts, on average, predicted earnings of $1.29 a share for the quarter. Analysts' estimates usually exclude items. The Dallas provider of contract drilling services said revenue for the quarter rose 51% to $470.6 million from $311.3 million last year. The company is "positive" about its 2007 outlook and expects first quarter results to be improved compared to the fourth quarter.
First Data Corp. (NYSE:FDC - News) said it would exit its official check and money-order operations over two to three years. The wind-down will free up $250 million to $300 million of cash for potential acquisitions, share repurchases and other purposes this year, FDC said.
Friedman, Billings, Ramsey Group Inc. (NYSE:FBR - News) reported a turn back to profit in the fourth quarter on Thursday, although the company today remained solidly in the red for the full year 2006. Friedman, Billings said it earned $3.8 million, or 2 cents a share, reversing a loss of $271.6 million, or $1.60 a share, in the year-ago period. Revenue came in at just under $176 million, vs. negative revenue of $114 million due to an investment loss in the same quarter of 2005. For the full year 2006, Friedman, Billings lost 39 cents a share, compared to a loss of $1.01 a share in 2005.
General Maritime Corp.'s (NYSE:GMR - News) fourth-quarter net income fell 79% on 56% lower revenue, hurt by lower spot charter rates and a smaller fleet.
HealthSpring Inc.'s (NYSE:HS - News) fourth-quarter net income more than tripled to 35 cents from 10 cents in the year-earlier period. The Nashville provider of prescription-drug plans posted revenue of $335.7 million, up from $246.1 million. The company still expects 2007 earnings of $1.55 and $1.65 a share on revenue of $1.5 billion to $1.6 billion.
Hilb Rogal & Hobbs Co. (NYSE:HRH - News) fourth-quarter earnings rose to 59 cents a share from 54 cents in the year-earlier period. Revenue at the Richmond, Va., insurance and risk management intermediary climbed to $175.5 million from $164 million. Lamar Advertising Co.'s board declared a special dividend of $3.25 a share, payable March 30 to shareholders of record March 22.
Industrial Distribution Group Inc. (NasdaqGM:IDGR - News), a maker and distributor of cutting tools and abrasives, said fourth-quarter net income rose 33% to $1.9 million, or 20 cents a share, from $1.5 million, or 15 cents a share, a year earlier. Sales climbed 1% to $131.6 million. Gross margins in the quarter came in at 23% compared to 22.4% in the year-ago period.
J.C. Penney Co. (NYSE:JCP - News) on Thursday said fourth-quarter net income slipped to $477 million, or $2.09 a share, from $551 million, or $2.34 a share, in the year-ago period. On a continuing operations basis, it earned $2 a share vs. $1.92 a year earlier. Total net sales rose to $6.66 billion from $6.2 billion, while sales at stores open at least one year rose 2.2%. Analysts, on average, expected it to earn $1.97 a share on revenue of $6.64 billion, according to Thomson Financial. For the first quarter, Plano, Texas-based J.C. Penney expects to earn 99 cents a share, for the year it is targeting profit at $5.44 a share. Analysts polled by Thomson Financial expect it to earn $1.05 a share for the first quarter and $5.42 for the year.
Monarch Casino & Resort Inc. (NasdaqGS:MCRI - News) shares rose after Standard & Poor's said it will add the company to the S&P SmallCap 600 index on a date to be announced, replacing Advo Inc. (NYSE:AD - News).
Moscow CableCom Corp.: (NasdaqGM:MOCC - News) Renova Media Enterprises Ltd. agreed to acquire the equity in Moscow CableCom that it does not already own for $12.90 a share and an equivalent price for Moscow CableCom's Series A convertible preferred stock.
National Semiconductor (NYSE:NSM - News) was upgraded to overweight from equal-weight by Morgan Stanley. "Following three consecutive quarters with negative surprises, we believe that National Semiconductor's fundamentals will likely bottom in the current quarter. Although we expect the ensuing recovery in fundamentals to be slow and potentially choppy during the next couple of quarters, we expect the company's underlying earnings power to show solid signs of improvement during the next couple of years, and this trend should drive NSM higher," the broker said.
OfficeMax Inc. (NYSE:OMX - News)earned 76 cents a share in the fourth quarter, compared with a loss of 62 cents in the year-earlier period. Excluding items, the office-supply retailer earned 48 cents a share compared with 7 cents. From continuing operations, OfficeMax earned 71 cents. Sales fell to $2.26 billion from $2.46 billion. Analysts, on average, expected it to earn 40 cents on revenue of $2.31 billion, according to Thomson Financial. In the retail segment, sales at stores open at least one year fell 0.4%.
PDL BioPharma Inc. (NasdaqGS:PDLI - News) reported that its fourth-quarter net loss widened to 78 cents a share from 31 cents in the year-earlier quarter. Excluding one-time items, the Fremont, Calif., biopharmaceutical company earned 5 cents a share. Revenue climbed to $107.8 million from $83.7 million. For 2007, PDL forecast earnings of 38 cents to 54 cents a share on revenue of $450 million to $500 million. Wall Street is currently forecasting 64 cents on revenue of $495.7 million.

Published By MarketWatch

Labels: AD, ADI, AEM, AMIE, ARW, CUK, ESV, FBR, FDC, GMR, HRH, HS, IDGR, JCP, MCRI, MOCC, NSM, OMX, PDLI, POS

New Investments and AdditionsAs of Sept. 30--Berkshire's most recent filings with the SEC--the conglomerate didn't add any new positions compared to its June 30 report, but it did receive shares in Western Union (NYSE:WU - News) which was spun off from longtime holding First Data (NYSE:FDC - News). Berkshire also increased its stake in five of its existing holdings: Iron Mountain (NYSE:IRM - News), Lowe's (NYSE:LOW - News), Nike (NYSE:NKE - News), and USG (NYSE:USG - News).
I think the most intriguing of these is Western Union, which dominates the lucrative money transfer market. My colleague Mark Weber has long held Western Union to be the most undervalued part of First Data's overall business, and believes that the spin-off now allows potential investors to participate in the economics of this outstanding franchise at a very attractive price. In fact, Weber estimates Western Union's fair value to be $32 per share, about a 45% upside to the firm's current share price.
It should also be noted that Berkshire boosted its stake in USG, a manufacturer of gypsum wallboards, which emerged from asbestos related bankruptcy last June. Berkshire has owned USG since 2001, and more recently backed a rights offering from the company in mid-2006. Given Buffett's experience with asbestos liabilities via Berkshire's insurance operations, as well as his acquisition of the formerly asbestos burdened John Mansfield, I'm cautiously optimistic about Berkshire's stake in USG as well. I will note, however, that as of this writing Morningstar does not have a rating on USG shares.
Eliminations and ReductionsEven though Berkshire is typically a buy and hold investor--especially when it comes to making wholly owned acquisitions--it does from time to time trim or outright sell some of the positions in its equity portfolio. In the quarter that ended Sept. 30, Berkshire modestly trimmed its position in beer maker Anheuser Busch (NYSE:BUD - News), sold some of its holdings in tax adviser H&R Block (NYSE:HRB - News), continued to divest its stake in financial services distributor Ameriprise Financial (NYSE:AMP - News), and appears to have sold a significant chunk of its shares in mass-market retailer Target (NYSE:TGT - News).
The apparent decision to jettison shares in Target is surprising, given that Berkshire had recently released that it built a position of 5.5 million shares of the retailer through June 30. Berkshire's Sept. 30 filing indicates that the conglomerate now only owns 745,000 shares. An analysis of Target's stock price history indicates that if Berkshire did in fact reduce its position in Target, it would likely have done so at a price at least equal to, if not below, the price at which it had accumulated the position. Given that Berkshire still has sizable positions in relatively similar retailers like Wal-Mart (NYSE:WMT - News) and Home Depot (NYSE:HD - News), it seems odd that Berkshire would do an about face on Target. It should be noted, though, that the SEC allows Berkshire to delay filing its holdings on some stocks while it is still accumulating a position. For example, this is how the conglomerate has disclosed its growing stake in Johnson & Johnson (NYSE:JNJ - News). Thus, it's still possible that Berkshire has maintained a position in Target, with the disclosure being somewhat delayed. Giving further credence to this hypothesis is my colleague Joseph Beaulieu's $65 per share fair value estimate for the retailer, which indicates that at Morningstar we still believe that the shares are moderately undervalued.
Less surprising than Target, however, was the continued liquidation of the Ameriprise shares, which Berkshire had acquired when longtime holding American Express (NYSE:AXP - News) spun off the unit in mid-2005. My colleague Dafina Dunmore believes that it will be difficult for Ameriprise to generate above-average returns on capital due to a difficult regulatory climate and intensifying competition. Given this outlook and the fact that Dunmore believes the shares are fairly valued right now, I suspect that Berkshire will continue to divest itself of Ameriprise over time.
5-Star StocksAs of Jan. 8, only four of Berkshire's stocks boasted 5-star Morningstar Ratings for stocks, which itself is an interesting commentary on overall stock market valuations. That said, our analysts still believe that the shares of United Parcel Service (NYSE:UPS - News), Wal-Mart, the aforementioned Western Union, and White Mountains Insurance (NYSE:WTM - News) are currently offering investors the potential to earn attractive long-term returns.
More interesting still is that even with the recent runup in the share price, Berkshire's stock still has a 5-star rating, with a fair value estimate of $4,550 per class B share. In my view, an investment in Berkshire would have a dual benefit--it gives investors exposure to all of the companies in Berkshire's equity portfolio as well as to the conglomerate's substantial private holdings.
The Complete HoldingsHere's the complete list of Berkshire's equity portfolio, ranked from the largest position to the smallest. I continue to note that despite having 39 names in the portfolio, Berkshire's holdings are very concentrated. The top 10 stocks account for more than 80% of the portfolio: American Express, Anheuser-Busch, Coca-Cola (NYSE:KO - News), Conoco Phillips (NYSE:COP - News), Johnson & Johnson, Moody's (NYSE:MCO - News), Procter & Gamble (NYSE:PG - News), Washington Post (NYSE:WPO - News), Wells Fargo (NYSE:WFC - News), and Wesco (AMEX:WSC - News).
Source: Justin Fuller, CFA

Labels: AMP, AXP, BUD, COP, FDC, HD, HRB, IRM, JNJ, KO, LOW, NKE, PG, TGT, UPS, USG, WMT, WTM, WU

3Com Corp. (NASDAQ:COMS - News) said the second-quarter net loss narrowed to a penny a share from 3 cents in the year-earlier period.
ASV Inc. (NASDAQ:ASVI - News) estimated 2006 earnings at 80 cents to 84 cents a share on sales of $240 million to $250 million. A survey of analysts by Thomson First Call produced consensus estimates of 82 cents of profit on $245 million of revenue. The company also said that for 2007, earnings would range 68 cents to 87 cents a share, on revenue of $230 million to $260 million. Thomson First Call's estimates: 90 cents and $249 million.
Bed Bath & Beyond (NASDAQ:BBBY - News) posted a third-quarter profit rise of about 6%, bolstered by both same-store-sales growth and new-store openings.
Commercial Metals Co. (NYSE:CMC - News) said its first-quarter net income rose 23% to $85.4 million, or 71 cents a share, from $69.6 million, or 57 cents a share in the year-earlier period. Sales at the Irving, Texas, metal company climbed 21% in the three months ended Nov. 30 to $1.99 billion from $1.65 billion. International steel prices appear to be at or near the bottom and are likely to increase early in calendar 2007, according to the company's outlook.
First Data Corp. (NYSE:FDC - News) said it expects fourth quarter earnings to be 33 cents to 35 cents a share, excluding 5 cents of special items, or 28 cents to 30 cents a share from continuing operations on a GAAP basis. For the full year 2006, the company expects to earn $1.08 to $1.10 a share excluding items 2 cents, or $1.06 to $1.08 per share from continuing operations on a GAAP basis. According to analysts polled by Thomson First Call, the average estimate for the company's fourth quarter adjusted earnings is 34 cents a share.
Heico Corp. (NYSE:HEI - News) fourth-quarter net income rose to 35 cents a share from 25 cents in the year-earlier period. Analysts had expected 31 cents
Jabil Circuit Inc. (NYSE:JBL - News) posted fiscal first-quarter revenue of $3.2 billion, up 33% from the year-earlier period. The provider of electronic manufacturing services said it expects second-quarter revenue of $2.75 billion to $2.85 billion, and fiscal 2007 revenue growth of about 20%.
Joy Global Inc. (NASDAQ:JOYG - News) named Michael Sutherlin president and chief executive. Sutherlin has served as president of Joy Mining Machinery since 2003.
Kyphon Inc. (NASDAQ:KYPH - News) said it would acquire the spine-related product assets and associated intellectual property rights of Disc-O-Tech Medical Technologies Ltd. of Israel for as much as $240 million. In a statement, Kyphon said it expects to report a pre-tax charge of $30 million to $40 million for in-process research and development in 2007. Excluding the charge, Kyphon expects the deal to cut 12 cents to 17 cents a share from adjusted 2007 earnings. The transaction should "slightly" dilute 2008 reported earnings and add to earnings beginning in 2009. Richard Mott, president and chief executive of Kyphon, said in the statement that Disc-O-Tech's systems will boost Kyphon's ability to serve a fast-growing industry segment, minimally invasive treatment of degenerative disc disease.
Manatron Inc. (NASDAQ:MANA - News) said it's rejecting at bid of $9 a share from Constellation Software. The Kalamazoo, Mich. Web application software firm said its board unanimously concluded that "pursuing the proposal would not be in the best interests of the company, its shareholders or other stakeholders."
Pier 1 Imports, (NYSE:PIR - News) said E. Mitchell Weatherly, executive vice president for stores, is retiring as of Dec. 30. In a Securities and Exchange Commission Form 8-K, Pier 1 said that while the company searches for a successor, David A. Walker, EVP for logistics and allocations, will add the responsibilities of head of store operations.
PMC-Sierra Inc. (NASDAQ:PMCS - News) cut its quarterly sales target due to slower demand for its chips used in high-speed Internet-networking gear and data-storage equipment. PMC-Sierra forecast fourth-quarter revenue in the range of $100 million to $105 million, down from its prior outlook of $105 million to $112 million.
Shiloh Industries Inc. (NASDAQ:SHLO - News) said it lost $6 million, or 38 cents a share in its fourth quarter. During the fourth quarter, the firm recorded special items that reduced net income by $7.1 million, or 44 cents a share. Net income, excluding special items was $1.1 million, or 6 cents a share for the fourth quarter, compared to net income of $8.1 million, or 49 cents a share a year ago. Sales for the fourth quarter ended October 31, 2006 were $157.9 million compared to $176.9 million reported in the fourth quarter of fiscal 2005, a decrease of $19 million or 10.7%. The company also said its board declared a special dividend of $2.50 a share.
Sonic Foundry Inc. (NASDAQ:SOFO - News) said it's priced an offering of 3 million shares at $3.75 each. It will use the proceeds for research and development and capital expenditures.
Stepan Co. (NYSE:SCL - News) said it expects a fourth-quarter loss of $5 million to $6 million, compared with a loss of $400,000 million a year earlier. The Northfield, Ill., chemicals company said it expects the loss for 2006 at $6 million to $7 million. Stepan said surfactant earnings will be lower due to employee severance costs in Europe and an unfavorable comparison with a year ago. The company also said polymer earnings will be lower due to declining profit margins for phthalic anhydride and polyurethane polyol.
Ultratech Inc. (NASDAQ:UTEK - News) revised its fourth-quarter outlook to a loss of 25 cents to 30 cents a share from its prior view of a loss of 10 cents to 15 cents a share.
Wet Seal Inc. (NASDAQ:WTSLA - News) said it now expects its December same-store sales to rise from 1% to 3%, compared with a previously estimated increase in the low- to mid-single digit range.
Worthington Industries Inc. (NYSE:WOR - News) said its second-quarter earnings for the three months ended Nov. 30 fell 31% to $26.9 million, or 31 cents a share, from $39 million, or 48 cents a share in the year-ago period. Revenue rose 4% to $729 million from $700 million. Analysts surveyed by Thomson First Call forecast earnings of 39 cents a share and revenue of $782.5 million, on average. The company said its steel processing and metal framing segments had lower volume as a result of weaker demand. Looking ahead, the company said its third quarter will be the weakest of the year.
-MarketWatch

Labels: ASVI, BBBY, COMS, FDC, HEI, JBL, JOYG, KYPH, MANA, PIR, PMCS, SCL, SHLO, SOFO, UTEK, WOR, WTSLA

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 Under Priced 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 Jan 170 Calls (NYSE:BOT - News) . BOT's PowerRating is 5.
Most Under Priced 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 Jan 100 Puts (NASDAQ:ISRG - News). ISRG's PowerRating is 6.
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.
Rambus Incorporated Feb 22.5 Calls (NASDAQ:RMBS - News). RMBS's PowerRating is 6.
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.
Google Incorporated Jan 420 Puts (NASDAQ:GOOG - News). GOOG'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.
First DataCorporation (NYSE:FDC - News). FDC's PowerRating is 6.
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 suggestsan extraordinarily negative earnings report, or other news which may negatively affect the stock.
Nike Incorporated (NYSE:NKE - News). NKE's PowerRating is 6.
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.
Beazer Homes (NYSE:BZH - News). BZH's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: BOT, BZH, FDC, GOOG, ISRG, NKE, RMBS, stock options