Jim Cramer Blog

Stocks drifted through the morning session on mixed economic news, then gained strength in the afternoon on M&A activity. The Blue Chip Dow Jones Industrial Average made the boldest move, with tamer advances from the Nasdaq composite and S&P 500 indexes. The price of crude oil, as well as the 10-year Treasury note, both declined.
The private Institute for Supply Management's April manufacturing index came in at 54.7, which was stronger than last month and also above Wall Street forecasts. A reading above 50 shows the manufacturing sector is expanding. It also makes it less likely that the Federal Reserve will see the need to cut interest rates to stimulate the economy. On the downside, housing and autos remain weak. The National Association of Realtors said pending sales of existing homes fell by another -4.9% in March.
Meanwhile, U.S. carmakers reported another month of slow sales. Ford Motor (NYSE: F - News) said its domestic sales in April slid -12.9% from a year ago. Car sales at General Motors (NYSE: GM - News) fell -9.5%. Even Toyota Motor (NYSE: TM - News), which has had a seemingly endless string of increased monthly sales, reported a -4.4% sales decline. There were two less selling days in April 2007 than the previous year.
In a rare occurrence, Dow Jones & Co. (NYSE: DJ - News) was more newsworthy than the stock index that bears its name. Shares of the publisher of The Wall Street Journal rocketed up 54.7% after news of a $5 billion unsolicited takeover bid from Rupert Murdoch's News Corp. (NYSE: NWS - News). The $60-a-share offer, which was submitted to the company's board in mid-April, marks a substantial premium over where the stock has traded in the last year. Dow Jones is controlled by the Bancroft family through a two-tier stock system and cannot be sold without its consent. The family was said to be studying the offer.
Other newspaper publishing companies gained today as well, as investors eyed the sector for further consolidation. Moving higher today were shares of New York Times (NYSE: NYT - News), McClatchy (NYSE: MNI - News), Gannett (NYSE: GCI - News), and the Washington Post (NYSE: WPO - News). News Corp., however, traded lower.
On the earnings front, Procter & Gamble (NYSE: PG - News) reported a 14% increase in its fiscal Q3 net, but those results disappointed investors who had become accustomed in recent quarters to results from the consumer products company that came in above forecast. With its Q3 figures only matching Wall Street's expectations, the shares declined -2.2%. Subscribers can read our take on P&G's earnings in today's issue.
Electronics retailer Circuit City (NYSE: CC - News) shed -5.3% after it withdrew its guidance for the first half of the year after announcing that April sales were "substantially" lower than what the company expected. Circuit City is facing intense competition from the larger Best Buy (NYSE: BBY - News) and is in the midst of a restructuring effort.
By the BullMarket.com Staff

Labels: BBY, CC, DJ, F, GCI, GM, MNI, NWS, NYT, PG, TM

Adopting a Monster: Gannett (NYSE: GCI - News), Monster Worldwide (NasdaqGS: MNST)
Cramer thinks Gannett should buy MNST as a way to stay relevant since its business isn't "viable long-term anymore." He adds that MNST would be a nice accompaniment to GCI's acquisition, CareerBuilder.com, and the company should hurry to make an offer before Google makes the first move. In either case, the online job listing source is an attractive takeover target and Cramer is bullish on MNST which has has recently had a shortfall, is cheap, and has a new CEO, Sal Iannuzzi, who Cramer thinks is ready "to make a deal." Monster's inclusion in Goldman Sach's list of likely private equity plays is yet another reason to buy.
On the Sunny Side of The Street: First Solar (NasdaqGM: FSLR), MEMC Electronic Materials (NYSE: WFR - News)
Continuing his "Green Day" series, Cramer takes a look at solar energy stocks, and comments he is still 100% behind FSLR, which he recommended in early March and is "the most economically efficient solar company." He also likes WFR which has a "stronghold on silicon wafers, the key components to most solar panels" and is up 247% since October. Since both stocks have increased substantially, he would look for a drop before buying.
DEEP Thoughts: New IPO Superior Offshore International, with stocks Nabors (NYSE: NBR - News), Halliburton (NYSE: HAL - News)
Cramer would take a look at new IPO Superior Offhsore International which is due to go public Friday and will trade under the symbol DEEP. He notes the company has solid earnings and fundamentals and is reasonably priced between $14 to $16. This subsea construction company has competitors, HAL and NBR, but their success has proven that business is good. While DEEP is located mainly in the Gulf of Mexico, it is expanding beyond the region, repairs and maintains current drilling and has years of repair work on the agenda from Hurricane Katrina. Cramer would do homework before buying this "great company" with "real profits" and would make a move no later than Thursday morning.
CEO Interview: Saks (NYSE: SKS - News) CEO Stephen Sadove with stocks Coach (NYSE: COH - News) and Ralph Lauren (NYSE: RL - News)
When asked about the company's turnaround, Stephen Sadove replied that while it is still "early in the game," Saks has benefited from a "great team, clear strategies and clear focus on execution." The company was also successful in encouraging people to own equity and making stores more customer-friendly. Sadove also discussed Saks' new CFO Kevin Willis, calling him "a great asset to the team." Cramer said he is bullish on SKS as well as COH and RL, all of which are buying opportunities because the stocks have "flat-lined."
Published by SeekingAlpha

Labels: COH, FSLR, GCI, HAL, Hot Stocks, Jim Cramer, Mad Money, MNST, NBR, RL, SKS, WFR

Gannett (NYSE: GCI - News) and Blackstone
Declining interest in newspapers among the18 to 35 crowd is real reason Gannett reported lackluster advertising revenue, Cramer says, because "that cohort has stopped reading newspapers." People running the newspapers are in the 40s or older and think that cooler articles are the answer, but they fail to realize that papers are no longer the medium through which younger people get information, according to Cramer. "Newspapers are not businesses," he continued, "A business is something that grows and grows off of cash flow. When a business shrinks and has diminishing cash flow, it is not a business." The only way newspapers can survive is to "fire everyone" and the main papers should realize that journalism is the most "expendable part" of their business, Cramer said. When Gregg Greenberg asked Cramer about Blackstone going public, he answered, "You've got to bamboozle as many people as possible to be successful on Wall Street. This is the maximum bamboozle moment. I applaud them."

Labels: GCI, Jim Cramer, Wall Street Confidential

American Axle & Manufacturing (NYSE:AXL - News) reported a fourth-quarter loss of $188.6 million, or $3.74 a share, down from a year-ago profit of $4.5 million, or 9 cents a share. The latest results include charges stemming from its special attrition program and asset impairment. Looking ahead, the Detroit-based car parts company said it expects earnings of $1.25 to $1.50 a share in fiscal 2007 with sales rising to $3.3 billion.
Ameristar Casinos Inc. (NasdaqGS:ASCA - News) reported fourth-quarter net earnings of $17.8 million, or 31 cents a share, up 25% from $14.3 million, or 25 cents a share, during the year-ago period. The company posted net revenue of $244 million vs. $243.8 million.
Aviza Technology (NasdaqGM:AVZA - News) shares jumped after the Scotts Valley, Calif.-based maker of semiconductor capital equipment late Thursday reported a fiscal first-quarter net profit of $1.13 million, or 7 cents a share. In the same quarter last year, the company posted a net loss of $4.63 million, or $1.25 a share. Revenue surged to $62.2 million from $28.9 million. Aviza expects second-quarter revenue of $60 million to $64 million, with operating income of $2.5 million to $3 million.
Brookfield Homes Corp. (NYSE:BHS - News) said fourth-quarter net income fell, as home closings and lot sales declined, to $58.8 million, or $2.19 a share, from $129.6 million, or $4.36 a share, during the same period in the prior year.
CA Inc. (NYSE:CA - News) said its third-quarter net income fell 14%, as the company continues to restructure through acquisitions and cost cuts.
Electronic Arts (NasdaqGS:ERTS - News) said earnings fell 38% in the December quarter as video game sales stayed flat with the previous year due to a lack of hit titles during the holiday shopping period.
Gannett (NYSE:GCI - News) shares rose after the newspaper publisher said net income rose 3% in the fourth quarter, as election-year political advertising on its television stations offset higher expenses. Earnings rose to $353.5 million, or $1.51 a share, from $343.3 million, or $1.44 a share, in the fourth quarter a year earlier. Revenue rose 7.5% to $2.21 billion. Gannett's results were clouded by the impact of an extra week in December compared with the prior year. The average estimate of analysts was for earnings of $1.49 a share on revenue of $2.15 billion, according to Thomson Financial.
Genworth Financial Inc. (NYSE:GNW - News) said fourth-quarter net income came in at $373 million, or 81 cents a share, up 21% from a year earlier when the life insurer made $307 million, or 64 cents a share.
Shares of Hayes Lemmerz International Inc. (NasdaqGM:HAYZ - News) gained after the Northville, Mich.-based supplier of automotive components announced new moves in an effort to streamline its North American businesses. The company said it has agreed to sell its Montague, Mich., and Bristol, Ind., suspension operations to Diversified Machine Inc. Financial terms of the deal were not disclosed. Hayes Lemmerz expects to complete the sale within the next 30 days. In addition, the company said it will relocate its automotive components group headquarters and technical center to its Northville, Mich., corporate headquarters from Ferndale, Mich. The Ferndale facility will be closed, Hayes Lemmerz added.
Intuitive Surgical (NasdaqGS:ISRG - News) shares surged after the company said its fourth-quarter earnings fell 52%, as the year-ago quarter included a $22.2 million benefit associated with deferred tax assets. The Sunnyvale, Calif., medical equipment maker had fourth-quarter earnings of $23.6 million, or 62 cents a share, compared with $49.5 million, or $1.31 a share, a year earlier. On a pro forma basis, excluding the cost of accounting for stock-option payments, the company earned $28.1 million, or 73 cents a share. Intuitive Surgical said revenue for the quarter ended Dec. 31 rose 56% to $112.6 million from $72.1 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 51 cents a share on revenue of $105 million.
Longs Drug Stores Corp. (NYSE:LDG - News) turned in better-than-expected January sales results. Sales at stores open longer than a year, the industry benchmark known as same-store sales, were up 3.4%, ahead of the 2% increase expected by analysts.
Millipore (NYSE:MIL - News) shares gained after the company said fourth-quarter net income rose sharply to $18.5 million, or 34 cents a share, from $1.02 million, or 2 cents a share, a year earlier, helped by foreign exchange rates and its bioscience division. The biosciences products and services company said revenue increased 49% to $383.1 million from $256.3 million a year earlier. Excluding items, the company earned $49.1 million, or 90 cents a share, up from $32.7 million, or 62 cents a share, a year earlier. On average, analysts polled by Thomson Financial expected earnings of 81 cents a share on revenue of $365.2 million. Analysts' estimates usually exclude items.
Nextest Systems (NasdaqGM:NEXT - News) reported fiscal second-quarter earnings of $2.2 million, or 12 cents a share, up from a year-ago loss of $95,000, or a penny per share. Looking ahead, the San Jose, Calif.-based maker of semiconductor test equipment said it sees earnings of 3 to 10 cents a share for the third quarter on revenue of $18 million and $22 million.
Owens & Minor Inc. (NYSE:OMI - News) increased its quarterly cash dividend 13.3% to 17 cents from 15 cents a share. The dividend is payable on March 30 to shareholders of record as of March 15.
Raytheon (NYSE:RTN - News) was upgraded to buy from neutral at Citigroup. The firm cited the company's strong organic growth.
Ronson Corp. (NasdaqCM:RONC - News) said its board declared a 5% common stock dividend. The Somerset, N.J., holding company said the dividend is payable April 16, to shareholders of record March 30. The dividend will increase the company's common shares outstanding by about 228,000 shares to 4.8 million.
Secure Computing (NasdaqGS:SCUR - News) swung to a fourth-quarter loss of $27.4 million, or 44 cents a share, from year-earlier profit of $6.57 million, or 17 cents a share. Excluding items, Secure would have earned 7 cents a share, down from 17 cents a share a year earlier. The San Jose network-security company said Thursday that fourth-quarter revenue rose to $51.6 million from $30.2 million a year earlier. Analysts polled by Thomson Financial, on average, expected break-even non-GAAP earnings on revenue of $55.8 million. For the first quarter, Secure expects non-GAAP per-share earnings of 3 to 4 cents on revenue of $59 million to $61 million. Wall Street, on average, is looking for non-GAAP earnings of 2 cents a share on revenue of $56.2 million for the first quarter.
Silicon Motion Technology Corp. (NasdaqGM:SIMO - News) said fourth-quarter net income rose to Taiwan $334.7 million ($10.2 million), or T$10.60 per American Depositary Share (32 cents), from T$246 million, or T$7.81 per ADS (24 cents), during the same period in the prior year. Analysts were looking for per-ADS earnings of 30 cents.
Simpson Manufacturing (NYSE:SSD - News) shares gained after the company reported said fourth-quarter net income of $18.7 million, or 38 cents a share, down from $21.6 million, or 44 cents a share, during the same period in the prior year. Analysts polled by Thomson Financial had expected per-share earnings of 40 cents. The Pleasanton, Calif.-based manufacturer of wood-to-wood, wood-to-concrete and wood-to-masonry connectors said quarterly revenue fell to $179.6 million from $203.9 million in the prior year, while Wall Street was expecting $189 million.
Standard Pacific Corp. (NYSE:SPF - News) reported a fourth-quarter net loss of $98.4 million, or $1.53 a share. During the same period a year ago, the company posted net earnings of $154.9 million, or $2.22 a share.
Published By MarketWatch

Labels: ASCA, AVZA, AXL, BHS, CA, ERTS, GCI, GNW, HAYZ, ISRG, LDG, MIL, NEXT, OMI, RONC, RTN, SCUR, SIMO, SPF, SSD