Jim Cramer Blog

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Palm (NasdaqGS:PALM - News) beat earnings expectations on Tuesday afternoon, with -$0.07 EPS versus expectations of -$0.08 EPS. PALM's PowerRating (for Traders) is 4.
Take-Two Interactive (NasdaqGS:TTWO - News) also beat earnings, reporting -$0.10 EPS versus -$0.23 EPS. TTWO's PowerRating (for Traders) is 4.
Actuant (NYSE:ATU - News) reports earnings on Wednesday before the bell, with traders looking for $0.48 EPS. ATU's PowerRating (for Traders) is 7.
CarMax (NYSE:KMX - News) announces quarterly results on Wednesday morning; look for $0.17 EPS. KMX's PowerRating (for Traders) is 5.
When General Mills (NYSE:GIS - News) reports results on Wednesday before the market opens, traders will be watching for $1.13 EPS. GIS's PowerRating (for Traders) is 6.
Joy Global (NasdaqGS:JOYG - News) is set to announce $0.75 EPS on Wednesday morning before the bell. JOYG's PowerRating (for Traders) is 7.
When Morgan Stanley (NYSE:MS - News) announces quarterly results tomorrow morning, watch for -$0.39 EPS. MS's PowerRating (for Traders) is 5.

Labels: ATU, GIS, Hot Stocks, JOYG, KMX, MS, PALM, TTWO

Bullish:
Cisco (CSCO): if you want to be in tech.
J.C. Penney (JCP): He thinks that this stock is undervalued and is a buy at this price.
Integrated oil companies like ConocoPhillips (COP), Chevron (CVX), and Exxon Mobil (XOM) are better plays.
American Eagle (AEO), Abercrombie & Fitch (ANF) or Aeropostale (ARO), in that order.
Kellogg (K): Cramer is bullish on Kellogg, as well as General Mills (GIS) and ConAgra (CAG).
Cramer is sticking with Baidu.com (BIDU) as the best China play.
Cramer likes NVIDIA (NVDA), Texas Instruments (TXN), and Intel (INTC)

Bearish:
Xerox (XRX)
American Capital Strategies (ACAS): Cramer's undecided on the stock, so he's avoiding it.
Tesoro (TSO): Cramer thinks gas prices aren't high enough to be in a refiner,
Luxottica (LUX): "Don’t buy!"
Hot Topic (HOTT)
Aluminum Corp. of China (ACH)
American Superconductor (AMSC)

Labels: ACAS, AEO, ANF, ARO, BIDU, CAG, COP, CSCO, CVX, GIS, INTC, JCP, Jim Cramer, Lightning Round, Mad Money Lightning Round, NVDA, TXN, XOM, XRX

Equities continued their march higher after yesterday's Fed-fueled rally as investors continued to find comfort in buying attractive names. At the end of Wednesday's session, all three major market averages finished the session with gains of just over half a percent. Oil, meanwhile, continued to trade higher, ending the session up 42 cents to $81.93 a barrel. Gold also kept on climbing, trading up $5.80 to settle out at $729.50 a troy ounce.
The Labor Department reported today that U.S. consumer prices fell -0.1% in August. Excluding food and fuel prices, which tend to be volatile, prices rose 0.2%, in line with what economists were forecasting. Energy prices fell -3.2%, while prices for medical care rose. In other economic news, the Commerce Department said that housing starts fell to a 12-year low in August. Home starts declined by -2.6% to a seasonally adjusted rate of 1.33 million. Meanwhile, authorized building permits fell by -5.9%. In the past year, overall housing starts are down by -19.1%, while permits have plummeted -24.5%.
On the earnings front, Morgan Stanley (NYSE: MS - News) shares declined -2.2% after the company reported earnings from continuing operations of $1.47 billion, or $1.38 a share, down from $1.59 billion, or $1.50 a share, last year. Revenue rose 13% to $8 billion, despite fixed income and trading revenue falling -3% from year-ago levels. During the quarter, the company said it took a -$940 million loss from the decreased market value of loans on its books, mostly due to the recent turmoil in credit markets. Analysts expected the investment bank to post earnings of $1.54 a share on revenue of $8.35 billion.
Restaurant operator Darden Restaurants (NYSE: DRI - News) posted a 20% rise in second-quarter earnings as sales growth at its Olive Garden and Red Lobster establishments grew. For the quarter, the company earned $105.9 million, or 72 cents a share, up from $88.5 million, or 59 cents a share, in the year-ago period. Earnings from continuing operations, meanwhile, rose to 73 cents a share from 62 cents a share last year. Sales totaled $1.47 billion. Same-store sales increased 7% at its Red Lobster locations and 4.8% at its Olive Garden restaurants. The results sent the share up 1.6% on the day.
Used car seller CarMax (NYSE: KMX - News) saw its shares hit a brick wall after the company slashed its 2008 fiscal-year outlook. The company now sees earnings coming in at a range of 92-98 cents a share, down from its previous range of $1.03-$1.14 a share. The company cited a slower-than-anticipated pace in same-store sales growth. The guidance overshadowed its second-quarter earnings, which came in at $65 million, or 29 cents a share, up from $54.3 million, or 25 cents a share, a year earlier. Revenues rose to $2.12 billion.
General Mills (NYSE: GIS - News), the world's second-largest maker of cereal, posted first-quarter net income of $289 million, or 81 cents a share, compared to $267 million, or 74 cents a share, last year. The 8.2% profit jump was due to price hikes for its products. Sales rose a robust 7% to $3.07 billion. Analysts were looking for revenue of $3.0 billion. The company also affirmed its full-year profit outlook of $3.39-$3.43 a share. Shares gained 0.3%.
By the BullMarket.com Staff

Labels: DRI, GIS, KMX, MS

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Lehman Brothers (NYSE:LEH - News) outperformed the other brokers after announcing better than expected earnings, and receiving an additional boost from the rate cut. LEH's PowerRating (for Traders) is 3.
CarMax (NYSE:KMX - News) reports earnings on Wednesday morning, with traders looking for $0.29 EPS. KMX's PowerRating (for Traders) is 4.
Dress Barn (NasdaqGS:DBRN - News) should report $0.42 EPS before the market opens on Wednesday. DBRN's PowerRating (for Traders) is 4.
When General Mills (NYSE:GIS - News) reports quarterly earnings on Wednesday morning, be looking for $0.79 EPS. GIS's PowerRating (for Traders) is 5.
Analysts will be watching for Morgan Stanley (NYSE:MS - News) to announce $1.53 EPS tomorrow morning. MS's PowerRating (for Traders) is 5.
Apogee Enterprises (NasdaqGS:APOG - News) and CKE Restaurants (NYSE:CKR - News) both report earnings tomorrow afternoon, so watch for heightened price action and volatility ahead of the bell. APOG's PowerRating (for Traders) is 3, and CKR's PowerRating (for Traders) is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: APOG, CKR, DBRN, GIS, Hot Stocks, KMX, LEH, MS

PepsiCo (NYSE: PEP - News), Pfizer (NYSE: PFE - News), Schering-Plough (NYSE: SGP - News), Kellogg (NYSE: K - News), General Mills (NYSE: GIS - News), Altria (NYSE: MO - News), CVS Caremark (NYSE: CVS - News), MedcoHealth (NYSE: MHS - News), Cardinal Health (NYSE: CAH - News)
Cramer says almost everyone, including him, is "getting killed" in this market, and he wants viewers to understand "why it's so cataclysmic out there, so at least they have the grounding to say, 'OK, I'm willing to ride this out." While some suggest getting out of stocks, Cramer recognizes many people invest for the long term. However, he added; "What I'm trying to do is focus on what can work and what will really be hurt, not what's working, because nothing's working." Cramer said he got through the credit crunch in 1990s by focusing on the bull market and on 20 stocks that weren't losing. Examples may be PEP, PFE, SGP, K, GIS, MO, CVS, MHS, CAH. While he may have 10 to 1 bears out of every stock pile, Cramer urges viewers to "recognize that as the Federal Reserve continues to do a de facto tightening, you're going to continue to have spillover."
Published by SeekingAlpha

Labels: CAH, CVS, GIS, Jim Cramer, K, MHS, MO, PEP, pfe, SGP, Wall Street Confidential

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Apollo Group (NasdaqGS:APOL) beat earnings on Thursday afternoon, announcing $0.75 EPS over an expected $0.68 EPS. APOL's PowerRating is 4.
Palm (NasdaqGS:PALM) beat expectations this afternoon, with $0.17 EPS over a consensus of $0.15 EPS. PALM's PowerRating is 6.
AZZ Incorporated (NYSE:AZZ) reports earnings on Friday before the bell, with analysts looking for $0.42 EPS. AZZ's PowerRating is 4.
When A. Schulman (NasdaqGS:SHLM) reports earnings during trading on Friday, analysts will be watching for $0.25 EPS. SHLM's PowerRating is 4.
Beazer Homes (NYSE:BZH) announcing the firing of the company's Chief Accounting Officer, after the manager attempted to destroy documents surrounding a pending federal investigation of the company's mortgage business. BZH's PowerRating is 6.
General Mills (NYSE:GIS) fell on Thursday after the company announced that Q4 profits rose less than 1%. GIS's PowerRating is 6.
General Motors (NYSE:GM) gained on Thursday after the company announced a sale of its Allison Transmission business for $5.6 billion. GM's PowerRating is 2.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: APOL, AZZ, BZH, GIS, GM, Hot Stocks, PALM, SHLM

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Intervoice (NasdaqGS:INTV) beat earnings on Wednesday after the close, with $0.04 EPS over a consensus of $0.02 EPS. INTV's PowerRating is 4.
Red Hat (NYSE:RHT) beat earnings on Wednesday afternoon, announcing $0.16 EPS over an expected $0.15 EPS. RHT's PowerRating is 5.
Constellation Brands (NYSE:STZ) reports earnings on Thursday before the bell, with analysts looking for $0.15 EPS. STZ's PowerRating is 5.
Family Dollar Stores (NYSE:FDO) should announce $0.41 EPS before the bell on Thursday. FDO's PowerRating is 5.
When General Mills (NYSE:GIS) reports quarterly earnings on Thursday morning, watch for $0.63 EPS. GIS's PowerRating is 5.
KB Home (NYSE:KBH) is expected to report $0.07 EPS on Thursday morning before the market opens. KBH's PowerRating is 5.
Analysts will be watching for Rite Aid (NYSE:RAD) to report -$0.01 EPS tomorrow morning. RAD's PowerRating is 6.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: FDO, GIS, Hot Stocks, INTV, KBH, RAD, RHT, STZ

Mastercard (NYSE: MA): After Bear Stearns gave MA an outperform rating and a price target of $184, the stock rose 2% to $141.82. Cramer says MA is going "much, much higher."
General Mills (NYSE: GIS), Kellog (NYSE: K): Cramer says GIS and K are exceptions to the market's surprisingly "soggy" trading action.

Labels: GIS, Jim Cramer, Jim Cramer's Stop Trading, K, MA

Procter & Gamble (NYSE: PG), Avon (NYSE: AVP), Unilever (NYSE: UN), Colgate-Palmolive (NYSE: CL), Coca-Cola (NYSE: KO), General Mills (NYSE: GIS), Kellogg (NYSE: K)
Cramer is perplexed by PG's performance; "This should have been their quarter," he said. He is now questioning the company's Gillette acquisition, its buybacks and product lines. On the other hand, AVP, UN, CL, KO, GIS and K all reported strong quarters while PG has businesses in every one of those sectors. Cramer discussed how AVP CEO Andrea Jung finally pulled it together and AVP moved from $34 to $38 and $39. Cramer feels there is still room for AVP to run, especially as investors start selling PG.

Labels: AVP, CL, Dennis Kozlowski, GIS, Jim Cramer, K, PG, UN, Wall Street Confidential

General Mills (NYSE: GIS - News): While Cramer calls Stephen Sanger of GIS "one of the great CEOs," he is concerned about the effect of the ethanol frenzy on corn prices, which will be bad for cereal companies, the chicken and beef industry and less-well-off consumers; "we're creating a level of inflation in this country in order to pseudo-beat the energy problem." Cramer adds ethanol is "a futile attempt" and rising corn prices will create, in effect, "a tax on the poor."
Raytheon (NYSE: RTN - News), Yamana (NYSE: AUY - News): Concerning the Goldman Sachs downgrade, Cramer calls RTN "the worst of the best" because it is more expensive than its competitors. However, He is bullish on the sector because neither the Democrats nor the Republicans are talking about cutting the defense budget. He would not sell RTN. Cramer is not worried about AUY's downgrade, and says it is "a great growth story in gold. I still like AUY."

Labels: AUY, GIS, Jim Cramer, Jim Cramer's Stop Trading, RTN

General Mills (NYSE: GIS - News): While Cramer calls Stephen Sanger of GIS "one of the great CEOs," he is concerned about the effect of the ethanol frenzy on corn prices, which will be bad for cereal companies, the chicken and beef industry and less-well-off consumers; "we're creating a level of inflation in this country in order to pseudo-beat the energy problem." Cramer adds ethanol is "a futile attempt" and rising corn prices will create, in effect, "a tax on the poor."
Raytheon (NYSE: RTN - News), Yamana (NYSE: AUY - News): Concerning the Goldman Sachs downgrade, Cramer calls RTN "the worst of the best" because it is more expensive than its competitors. However, He is bullish on the sector because neither the Democrats nor the Republicans are talking about cutting the defense budget. He would not sell RTN. Cramer is not worried about AUY's downgrade, and says it is "a great growth story in gold. I still like AUY."

Labels: AUY, GIS, Jim Cramer, Jim Cramer's Stop Trading, RTN

A day after the Fed's comments sparked an aggressive late-day rally, stocks vacillated close to unchanged as investors took profits, further digested the Fed's remarks, and reacted to a profit warning and management shakeup at tech giant Motorola (NYSE: MOT - News). The result was a fairly tame day of trading in which all three major indexes stayed close to unchanged. The Dow closed up slightly, while the Nasdaq and S&P 500 were modestly lower on the day.
While investors initially seemed to interpret yesterday's Fed statement as opening the door for a rate cut later in the year, the market backed off that enthusiasm somewhat today. With inflationary pressure still very much on the Fed's radar, today's jump in the price of crude oil served as a reminder that high energy costs may underpin further inflation and limit the Fed's willingness to cut rates. Crude oil spiked higher, approaching $62 a barrel as refineries prepare to ramp up production ahead of the summer driving season.
Shares of Motorola plunged -7% and hit a new 52-week low after the company announced that it now expects to report a Q1 profit between breakeven and 2 cents per share, well below the 17 cents per share expected by analysts. The company's revenue outlook for the quarter was similarly slashed. Motorola blamed the lowered outlook on a poor performance in its mobile devices segment, where a lack of blockbuster handsets has hurt the company's margins and eroded market share. Motorola also shook up its executive ranks and announced the retirement of its CFO.
The Motorola news rippled elsewhere as well. Palm (Nasdaq: PALM - News), bid up all week as a potential buyout target for Motorola and others, gave back -9% on the news, but was up slightly in after-hours trading after beating earnings estimates after the bell. Semiconductors that supply Motorola also felt the fallout, and RF Micro Devices (Nasdaq: RFMD - News) and Skyworks Solutions (Nasdaq: SWKS - News), both the subject of Motorola-related analyst downgrades, dropped sharply on the day. Rival handset maker Nokia (NYSE: NOK - News), meanwhile, saw a modest gain in the wake of Motorola's warning.
Several earnings reports grabbed headlines as well, including the FQ1 report from homebuilder KB Home (NYSE: KBH - News), where profit plunged compared to a year ago but exceeded lowered expectations. The company said that difficult conditions in the housing market are likely to extend through the rest of the year. KB did, however, say that it was taking measures to reduce exposure to subprime loans while also cutting back on inventory.
A pair of food companies also reported earnings. ConAgra (NYSE: CAG - News) managed to beat both top- and bottom-line estimates for FQ3 despite a far-reaching recall of its peanut butter products. ConAgra now expects to lose as much as $150 million in sales as its peanut butter will stay off of shelves for at least several more months. General Mills (NYSE: GIS - News) beat estimates for its FQ3, while also raising guidance for the year. The upbeat outlook came in spite of rising prices of the crops used to make its cereals.
By the BullMarket.com Staff

Labels: CAG, GIS, KBH, MOT, NOK, PALM, RFMD, SWKS

A day after the Fed's comments sparked an aggressive late-day rally, stocks vacillated close to unchanged as investors took profits, further digested the Fed's remarks, and reacted to a profit warning and management shakeup at tech giant Motorola (NYSE: MOT - News). The result was a fairly tame day of trading in which all three major indexes stayed close to unchanged. The Dow closed up slightly, while the Nasdaq and S&P 500 were modestly lower on the day.
While investors initially seemed to interpret yesterday's Fed statement as opening the door for a rate cut later in the year, the market backed off that enthusiasm somewhat today. With inflationary pressure still very much on the Fed's radar, today's jump in the price of crude oil served as a reminder that high energy costs may underpin further inflation and limit the Fed's willingness to cut rates. Crude oil spiked higher, approaching $62 a barrel as refineries prepare to ramp up production ahead of the summer driving season.
Shares of Motorola plunged -7% and hit a new 52-week low after the company announced that it now expects to report a Q1 profit between breakeven and 2 cents per share, well below the 17 cents per share expected by analysts. The company's revenue outlook for the quarter was similarly slashed. Motorola blamed the lowered outlook on a poor performance in its mobile devices segment, where a lack of blockbuster handsets has hurt the company's margins and eroded market share. Motorola also shook up its executive ranks and announced the retirement of its CFO.
The Motorola news rippled elsewhere as well. Palm (Nasdaq: PALM - News), bid up all week as a potential buyout target for Motorola and others, gave back -9% on the news, but was up slightly in after-hours trading after beating earnings estimates after the bell. Semiconductors that supply Motorola also felt the fallout, and RF Micro Devices (Nasdaq: RFMD - News) and Skyworks Solutions (Nasdaq: SWKS - News), both the subject of Motorola-related analyst downgrades, dropped sharply on the day. Rival handset maker Nokia (NYSE: NOK - News), meanwhile, saw a modest gain in the wake of Motorola's warning.
Several earnings reports grabbed headlines as well, including the FQ1 report from homebuilder KB Home (NYSE: KBH - News), where profit plunged compared to a year ago but exceeded lowered expectations. The company said that difficult conditions in the housing market are likely to extend through the rest of the year. KB did, however, say that it was taking measures to reduce exposure to subprime loans while also cutting back on inventory.
A pair of food companies also reported earnings. ConAgra (NYSE: CAG - News) managed to beat both top- and bottom-line estimates for FQ3 despite a far-reaching recall of its peanut butter products. ConAgra now expects to lose as much as $150 million in sales as its peanut butter will stay off of shelves for at least several more months. General Mills (NYSE: GIS - News) beat estimates for its FQ3, while also raising guidance for the year. The upbeat outlook came in spite of rising prices of the crops used to make its cereals.
By the BullMarket.com Staff

Labels: CAG, GIS, KBH, MOT, NOK, PALM, RFMD, SWKS

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Citi Trends (NasdaqGS:CTRN - News) beat earnings on Wednesday, announcing $0.73 EPS over an expected $0.69 EPS. CTRN's PowerRating is 5.
Herman Miller (NasdaqGS:MLHR - News) missed earnings Wednesday afternoon; analysts were looking for $0.52 EPS, but the company only announced $0.50 EPS. MLHR's PowerRating is 4.
Barnes & Noble (NYSE:BKS - News) announces earnings on Thursday before the bell; watch for $1.88 EPS. BKS's PowerRating is 4.
Cato Corporation (NYSE:CTR - News) reports earnings Thursday morning, with analysts looking for $0.36 EPS. CTR's PowerRating is 4.
When Conagra Foods (NYSE:CAG - News) announces earnings Thursday before the market opens, watch for $0.35 EPS. CAG's PowerRating is 5.
Analysts are looking for General Mills (NYSE:GIS - News) to report $0.70 EPS tomorrow morning. GIS's PowerRating is 5.
KB Home (NYSE:KBH - News) is expected to announce $0.28 EPS Thursday before the market opens. KBH's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: BKS, CAG, CTR, CTRN, GIS, Hot Stocks, KBH, MLHR

Caterpillar (NYSE: CAT - News) Terex (NYSE: TEX - News), Cummins (NYSE: CMI - News), Paccar (NasdaqGS: PCAR) and Manitowoc (NYSE: MTW - News)
Cramer declares it a “travesty of a mockery of a sham” that Caterpillar lingers at $63.16 while TEX, CMI, PCAR and MTW are up. On the other hand, he thinks the low price on his top stock of the quarter is a “sale on a best-of-breed stock” which is down 14% year over year. He believes the market is mistaken in grouping CAT with sluggish housing instead of with natural resources. Cramer would “ride” up Caterpillar, which should benefit from rising commodity prices and the end of the yen carry trade which will take the edge off the competition. With a $7.5 million buyback, Cramer thinks the company could bring up its own stock.

Regeneron Pharmaceuticals (NasdaqGM: REGN), Nastech Pharmaceutical (NasdaqGM: NSTK)
Cramer told the story of REGN, which was sitting at $5 two years ago, hit $24 and has settked at $18. This gain was accomplished with revenue decline and without a “concrete” product. Cramer predicts NSTK will be the next REGN, and although it is considered a "a comedy of errors” and doesn’t have a new drug in the pipeline, NSTK has money in the bank and the advantage that biotech trades “on hope.” In addition, Cramer noted the company has an effective obesity and insulin drug and has the only “pure play” on autism. Cramer urged interested investors to do homework on NSTK and use limit orders when buying.
Related: H.S Ayoub reports on the phase one test of NSTK's insulin spray.
Game Plan for the coming week: National CineMedia (NasdaqGM: NCMI), Verizon (NYSE: VZ - News), AT&T (NYSE: T - News), Sprint (NYSE: S - News), and Qwest (NYSE: Q - News), AAR (NYSE: AIR - News), General Mills (NYSE: GIS - News), Goldman Sachs (NYSE: GS - News)
On Monday, Cramer would buy NCMI, a “fast growing” company that makes cinema ads, and he notes NCMI has not moved since it went public. Concerning a $20 billion government phone contract reported in The Washington Post, Cramer believes Q is the most likely candidate, since T and VZ are too big and S is high because of takeover news. He suggested investors buy GS “hand over fist” on Monday because of its aggressive buyback plan, GIS ahead of its earnings on Thursday, and AIR before Wednesday.
CEO Interview: Peter van Stolk, Jones Soda's (NasdaqCM: JSDA)
When Cramer asked Peter van Stolk to account for Jone's great quarter, van Stolk credited his team’s hard work, strong sales and the introduction of the 12 ounce can; "I think the conversion to pure cane sugar is what's really taken it by the storm." Van Stolk said another advantage is “I can put [a photo] of your loved ones on a bottle of Jones Soda.” Competitors Coca-Cola and Pepsi lack the patent. Cramer thinks JSDA has more room to rise.

Published By SeekingAlpha

Labels: AIR, CAT, CMI, GIS, GS, Jim Cramer, JSDA, Mad Money, MTW, NSTK, PCAR, Q, REGN, TEX, VZ

Getting Defensive: Kroger (NYSE: KR - News), Safeway (NYSE: SWY - News), Supervalu (NYSE: SVU - News), Colgate-Palmolive (NYSE: CL - News), Kimberly-Clark (NYSE: KMB - News)
"Subprime is the only problem," Cramer reassured investors after the "absolutely brutal" downturn on Tuesday which affected the whole market. While mortgage lenders should be suffering from subprime lending woes for awhile, Cramer remarks, "It is wrong for the Street to be so indiscriminate ... before we damn the whole market, let's remember what were damning." However, this widespread decline provides a buying opportunity in defensive sectors, such as food, drugs and utilities, sectors which historically perform well when housing is doing badly. Cramer suggests looking at KR, SWY, SVU, CL and KMB, but only after three days, since "the future on the commodity that has captured stocks -- the S&P 500 -- expires Friday, so I expect very little upside in this group until Monday."
Thank You for Smoking: Altria (NYSE: MO - News), Altria's When-Issued Shares MO-WI (MOWI), Kraft (NYSE: KFT - News), General Mills (NYSE: GIS - News), Kellogg (NYSE: K - News), Sara Lee (NYSE: SLE - News)
"There's nothing more defensive than cigarettes," says Cramer who recommends Altria's when-issued shares, MO-WI, which are comprised of pure Philip Morris stock without the Kraft spinoff. Cramer comments Philip Morris is best-of-breed and the MO-WI shares offer a higher dividend. He suggests buying before March 30th when MO-WI will rejoin Altria. Although Cramer doesn't dislike KFT, he prefers food stocks GIS, which has been "doing fabulously," K and SLE, which have more "consistent and exciting growth" than KFT.
Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), BHP Billiton (NYSE: BHP - News), and Companhia Vale do Rio Doce (NYSE: RIO - News)
Cramer admits he has been waiting since February for DOW and AA to dip after takeover rumors which were printed a British newspaper. While he discourages speculation on potential buyouts if the fundamentals are not strong, "the fundies for both DOW and AA are pretty good." According to the rumors, Dow could be purchased by private equity firms at $60 a share, a substantial premium from its present rate of $42.94. He notes the company has a 3.5% dividend yield, has been raising prices and cutting costs. There is talk that BHP and RIO are eyeing AA at $40 billion, or $40.68 a share, while its current price is $32. The companies need the extra smelting capacity, and Cramer comments aluminum should perform better than it has been. "Buy Dow and Alcoa because when there's smoke, there's fire."
CEO Interview: Brian Roberts, Comcast (NasdaqGS: CMCSA) with Verizon (NYSE: VZ - News)
Cramer asked Brian Roberts if Comcast raised its capital expenditure in order to compete with rival Verizon, and he replied, "We upped our spending because people are buying our new products in record numbers. We're selling 50,000 phone subscriptions a week." This 30% increase "costs some money," although Roberts added these expenses will not interfere with Comcast's buyback plan; "We have bought back almost 10% of stock in the last two-and-a-half years, and we're going to continue buying back stock," Roberts said. Cramer would pull the trigger on Comcast and referred to Roberts as "money in the bank."
Published by SeekingAlpha

Labels: AA, BHP, CL, DOW, GIS, Jim Cramer, K, KFT, KMB, KR, Mad Money, MO, RIO, SLE, SVU, SWY, VZ

Gone Fishing: Procter & Gamble (NYSE: PG - News), Colgate (NYSE: CL - News), Clorox (NYSE: CLX - News), General Mills (NYSE: GIS - News), Heinz (HZ), Altria (NYSE: MO - News), Pfizer (NYSE: PFE - News), Eli Lilly (NYSE: LLY - News), Celgene (NasdaqGS: CELG), Gilead (NasdaqGS: GILD)
Following Tuesday's massive selloff, Cramer says its time to go fishing for stocks that have bottomed, a technique that is really "more of a science than an art." First, investors should cast their lines "gingerly and steadily," have a strategy and patience, since not all sectors bottom at the same time. For example, food and drug stocks bottomed "because the slowdown camp is now in charge on Wall Street." Although it is reasonable to question the wisdom of jumping behind defensive stocks, Cramer recommends following where the big money leads. In addition, he thinks perceptions of market sluggishness might influence the Fed to cut interest rates. Although he thinks PG is too high, Cramer suggests buying CL, CLX, GIS and HZ, and especially likes MO because it has a "sweet 4% yield" and is splitting up. Cramer rejects LLY and PFE because he sees them as risky and doesn't predict much upside; he would instead pick up biotechs CELG and GILD.
Falling Financials : Goldman Sachs (NYSE: GS - News), Capital One Financial (NYSE: COF - News), Bank of America (NYSE: BAC - News), T. Rowe Price (NasdaqGS: TROW), Citigroup (NYSE: C - News)
Cramer sees a bottom in financials in two weeks, noting "subprime lenders are busted," which will cause the Fed to lower rates. He has confidence in banks and brokers and comments when the "big money decides to join the smart money, the financials will fly." He comments that GS and COF perform "fabulously" when short-interest rates go below long-interest rates. He also recommended BAC, TROW and even Citigroup.
Published By SeekingAlpha

Labels: BAC, C, CELG, CL, CLX, COF, GILD, GIS, GS, Jim Cramer, LLY, Mad Money, MO, pfe, PG

Rackable Systems (NASDAQ: RACK - News), Intel (NASDAQ: INTC - News), Hewlett-Packard (NYSE: HPQ - News), Microsoft (NASDAQ: MSFT - News), Cisco (NASDAQ: CSCO - News), Apple (NASDAQ: AAPL - News)
Cramer says that investors should be selling tech because seasonality is working against the sector, and that RACK's problem has more to do with the time of year than its component shortage and competition. Concerning Intel, Cramer explains its new chip will not reach a 90% to 95% acceptance rate this year, and since gross margins will not rise until then, Intel "cannot be owned" right now. However, the problems with RACK and Intel do not alter Cramer's prediction that tech will outperform in 2007. Cramer would buy HPQ because it will benefit from Microsoft's Vista. Cramer would also pick up Cisco down at $26 or $25 because of the incredible ramp in cable; "If you have a product cycle, I think you can ride out the seasonable weakness," Cramer said. Apple transcends seasonality because it is a "secular growth story and and a product cycle story." He would take advantage of any decline to buy Apple.
JP Morgan (NYSE: JPM - News), Capital One Financial (NYSE: COF - News)
Cramer is bullish on JP Morgan because of its credit card growth and added that COF is one of the most hated stocks, noting that there is a tremendous January $75 put to buy COF. If the company reports a lackluster quarter, the puts will act as a trampoline. Cramer says that it is worth investing in airlines again, and would take profits and buy them again.
UPS (NYSE: UPS - News), Procter & Gamble (NYSE: PG - News), Colgate (NYSE: CL - News), Kellogg (NYSE: K - News), General Mills (NYSE: GIS - News), Oil Service HOLDRs (AMEX: OIH - News), Caremark (NYSE: CMX - News), Rite Aid (NYSE: RAD - News), Comcast (NASDAQ: CMCSA - News), Time Warner (NYSE: TWX - News)
Cramer is bullish on UPS and likes rails, which are a buy on any decline because the trucking sector is suffering. He added that Goldman Sach's upgrade of PG was worth noting and, if it weren't for a strike, the stock could reach $67 or $69. He attributes the success of PG and CL to investor's desire to look for other soft goods that are not dependent on corn prices. However, since cereal is only 3% to 4% corn, Cramer thinks selling Kellogg and General Mills is premature. Concerning oil, Cramer thinks that OIH has been a reliable barometer for oil prices and is heading toward a bottom, but he hesitates to recommend it because it is an "easily manipulated index." Cramer would ring the register on Caremark, and of all the drugstores, he would own only RAD. Finally, Cramer predicted that Comcast is "headed dramatically higher" and said that, at $22, Time Warner is undervalued.

Published By SeekingAlpha

Labels: AAPL, CL, CMCSA, CMX, COF, CSCO, GIS, HPQ, INTC, Jim Cramer, JPM, K, MSFT, OIH, PG, RACK, RAD, TWX, UPS, Wall Street Confidential

Stocks fall Thursday on economic news that came in below expectations. Data on GDP, leading indicators and the manufacturing activity in the Philadelphia area all disappointed; raising concerns once again about a hard landing. However, merger activity has continued helping keep stocks from seeing larger declines. There were a several earnings reports since Wednesday’s close as well, including reports from Nike (NKE), ConAgra Foods (CAG) and General Mills (GIS). Athletic shoe maker Nike reported an 8.1 percent rise in profits in its fiscal second quarter. Revenues were up 10 percent to $3.82 billion during the quarter. Despite beating earnings estimates by two-cents a share, the stock is only up fractionally Thursday to trade just above $100 a share. However, in the last three months the stock has gained more than 20 percent. Food companies’ CAG and GIS are both seeing there shares rise by about two percent in midday action. Both companies’ bested earnings estimates for the quarter and raised guidance for the current quarter. GIS shares are up 17.5 percent this past year with CAG shares rising more than 28 percent.Despite the positive news from earnings reports, stocks are lower due to disappointing economic data. The final revision for third-quarter GDP came in at 2.0 percent, which was down from 2.2 percent. At the same time, the GDP deflator came in at 1.9 percent, a tenth above estimates. The core deflator remained at 2.2 percent, down from 2.7 percent in the second-quarter. The leading indicators report rose 0.1 percent with orders for non-defense capital goods seeing gains. Just four of the 10 leading indicators increased in November with five contracting. This data points to slow growth in the near term for the economy. After seeing mostly positive readings in manufacturing reports of late, the Philly Fed Survey supports continued slowing in the economy. This report fell to negative 4.3 in December from 5.1 in November. This is the lowest reading for the index since April 2003. A reading below zero points to contraction in the area and this could be a problem if similar results occurred in other Fed districts. In merger news, Raytheon (RTN) announced it will sell its aircraft-making unit to Onex and Goldman Sachs (GS) for $3.3 billion. RTN shares are flat on the session despite announcing this news and a $750 million stock buyback. In other deal making, GlaxoSmithKline (GSK) announced it would buy Praecis Pharmaceuticals (