Jim Cramer Blog

Stocks staged a broad-based rally as investors speculated that consumer demand will help aid the economy. At the close, all major market averages ended the day with strong gains. The price of Gold continued to rise, ending up $8.90 to $721.10 an ounce.
OPEC said it would increase oil production by 500,000 barrels of oil a day as they believe near record oil prices would damage the world economy. The increase in output will mostly be led by Saudi Arabia. This is the first production increase by OPEC in more than a year. Oil prices were nevertheless up 74 cents to $78.23 a barrel.
Shares of McDonald's (NYSE: MCD - News) rose 3.2% after the burger giant reported an 8.1% same-store sales increase for the month of August. In the U.S., the world's largest restaurant chain said same-store sales grew 7.4% fueled by breakfast and new food and beverage offerings. Its European business also experienced a 6.1% rise in store sales growth buoyed by summertime offerings. In its Asia/Pacific, Middle East and Africa region, the company said sales surged 12.4% helped by extended hours and new menu promotions. The company noted that sales were particularly robust in China, Japan and Australia. Subscribers can read our analysis of McDonald's in today's issue.
Biotech firm Imclone Systems (Nasdaq: IMCL - News) pleased investors today after a study released by Germany's Merck KGaA said that Imclone's Erbitux prolonged the survival of lung cancer patients. The drug is used to treat colon cancer, in addition to head-and-neck cancer. Shares surged 18%. Sepracor (Nasdaq: SEPR - News) and GlaxoSmithKiline (NYSE: GSK - News) agreed to team up on Sepracor's insomnia drug Lunesta. Under the terms of the agreement, Glaxo will commercialize the drug in markets outside the U.S., while Sepracor stands to receive an initial payment of $20 million, plus subsequent milestone payments that could total up to $155 million. Additionally, Sepracor will receive double-digit royalties that will increase in line with sales and compensation. The drug is currently under review by the European Union, where a decision is expected in the second half of 2008.
In tech news, VMware (NYSE: VMW - News) struck a deal to acquire Swiss based Dunes Technologies, a maker of virtualization management software. Financial terms of the deal were not disclosed. Storage maker Western Digital (NYSE: WDC - News) upped its first quarter sales and profit forecast based on strong demand for hard disk drives. For the current quarter, the company now sees EPS reaching 61-65 cents, excluding charges related to its recent acquisition of Komag. Its previous forecast was for EPS of 43-47 cents a share. The company also noted that gross margins are expected to improve to 17.5%. Shares advanced 4.4% on the news.
In earnings news, video game maker Take-Two Interactive (Nasdaq: TTWO - News) reported a narrower-than-expected loss for its third quarter. The company lost -$58.5 million, or -81 cents a share, compared to a loss of -$91.4 million, or -$1.29 a share in the same period a year ago. Excluding items, loss was -$46.1 million, or -64 cents a share versus the loss of -67 cents per share expected by analysts. Sales fell to $241.2 million, but beat estimates for revenue of $200.6 million. For the fourth quarter Take-Two expects a loss of -20 to -25 cents a share on revenue of $275-300 million.
By The BullMarket.com Staff

Labels: GSK, IMCL, MCD, SEPR, TTWO, VMW, WDC

Shares of drug maker GlaxoSmithKline PLC rose Wednesday following the announcement of a huge buyback that helped offset the effect of a Bear Stearns analyst downgrade.
Earlier in the day, the world's second-largest pharmaceutical company said its second-quarter profit edged 1.4 percent higher while revenue fell 2.4 percent. But shares rose after the company said it was doubling its stock buyback program to 12 billion pounds ($24.7 billion) through 2009.
Bear Stearns analyst Alexandra Hauber in a note to investors downgraded the stock to "Underperform" from "Peer Perform," partly citing the effect of blockbuster diabetes drug Avandia on earnings.

Labels: Glaxosmithkline plc, GSK

Symbol
Name
Last Trade
Change
Volume
Related Info
NTBK
NET.BANK INC
0.5899 4:00PM ET
1.1601 (66.29%)
11,218,123

CIMT
CIMATRON ORD SHS
2.81 3:58PM ET
0.85 (23.20%)
470,155

LGBT
PLANETOUT, INC.
0.98 3:59PM ET
0.17 (14.78%)
940,504

XFML
XINHUA FINANCE MEDIA
8.76 4:00PM ET
1.18 (11.87%)
4,740,880

GENE
GENETIC TECH SPON
5.25 3:59PM ET
0.65 (11.02%)
15,546

HOTJ
HOUSE OF TAYLR JEWLR
1.69 3:59PM ET
0.20 (10.58%)
45,070

SAMBW
SUN AMERICA CL D WTS
0.96 10:04AM ET
0.11 (10.28%)
500

OMTL
OMTOOL LTD
1.67 2:31PM ET
0.19 (10.22%)
200

VOXW
VOXWARE INC
5.48 3:59PM ET
0.62 (10.16%)
44,430
VSCI
VISION SCIENCES IN
1.14 3:05PM ET
0.12 (9.52%)
12,413

IMAX
IMAX CORP
4.51 4:00PM ET
0.44 (8.89%)
622,039

CMKG
COACTIVE MKTG GP
2.18 3:59PM ET
0.21 (8.79%)
55,238
GMTC
GAMETECH INTL INC
9.57 3:59PM ET
0.92 (8.77%)
119,538

MGIC
MAGIC SOFTWARE ENT
2.34 3:59PM ET
0.22 (8.67%)
125,663
FREEW
FREESEAS INC
1.50 1:48PM ET
0.14 (8.54%)
2,400
DAIEY
DAI EI INC ADR
19.74 3:59PM ET
1.84 (8.53%)
2,958

AHCI
ALLIED HLTHCR INTL
2.69 4:00PM ET
0.25 (8.50%)
1,156,799

GSK
GLAXOSMITHKLINE PLC
53.18 4:00PM ET
4.53 (7.85%)
13,647,179

Labels: AHCI, CIMT, CMKG, DAIEY, FREEW, GENE, GMTC, GSK, HOTJ, IMAX, LGBT, MGIC, NTBK, OMTL, SAMBW, VOXW, VSCI, XFML

The buyout binge continued to keep stock prices high today as a flurry of new deals drove the markets higher during the day. The tech-laden Nasdaq composite was the strongest of the indexes, while the Dow faded to close slightly lower. Intraday, all the averages were higher as the benchmark S&P broke an all-time intraday record of 1527 before closing below the record. Over in the energy pits, crude oil rose $1.33 to $66.27. Treasury prices ended slightly higher as the market awaits key economic data tomorrow. The benchmark 10-year note, ended the session trading at a yield of 4.79%.
The merger and acquisition boom continues as Goldman Sachs (NYSE: GS ) and the TPG Group agreed to buy Alltel (NYSE: AT ) for $24.7 billion. This deal, when closed, will become one of the biggest leveraged buyouts (LBO) ever. Alltel is currently the fifth-largest wireless carrier in the U.S. The telecom industry continues to be a focus of consolidation and interest from both institutions and private equity. Shares of the telco giant rose more than 6.73% on the trading day.
The People's Republic of China is taking a $3 billion interest in privately held Blackstone Group. China, which is currently the largest holder of U.S. debt, has been looking for ways to invest in other areas, most notably private equity. This news comes off fresh rumors that the Blackstone Group is close to announcing an IPO in the not-so distant future. The private equity firm is expected to raise more than $7.75 billion by selling stock to the public.
Elsewhere in the M&A arena today, diagnostic and imaging systems maker Hologic (Nasdaq: HOLX ) agreed to buy diagnostic and surgical products maker Cytyc (Nasdaq: CYTC) for $6.2 billion, a premium of 32% over the closing price on Friday. On the international merger front, European bank Unicredit agreed to buy Italy based Capitalia for $29 billion. Unicredit will become the 6th largest bank, and the deal will give it a powerful footprint in Italy.
Over on the institutional side of the markets, Merrill Lynch (NYSE: MER) agreed to acquire a minority stake in Goldman Sach's GSO hedge fund for a undisclosed amount. The hedge fund manages over $8 billion. Merrill has been picking up more hedge fund assets in recent quarters as a way to boost earnings growth.
On the earnings front, the nation's second-largest home-improvement retailer missed Wall Street estimates. Lowe's Corp (NYSE: LOW) reported earnings of 48 cents per share versus analyst estimates of 49 cents per share. Total sales rose 2% to $12.2 billion, but fell shy of analyst estimates of $12.5 billion. Same-store sales fell -6.3%. Going forward, the company lowered its annual growth forecast and sales numbers. The retailer's shares lost -2.4% on the day.
In the drug sector, shares of GlaxoSmithKline PLC (NYSE: GSK) slid -7.9% after analysis on their diabetes drug "Avandia" appeared to have shown that the medication substantially increases the chances of a heart attack. Finally, Visteon (NYSE: VC ) surged more than 9.23% on news that Indian firm Tata Group may be eyeing the autoparts maker.

Labels: AT, CYTC, GS, GSK, HOLX, LOW, MER, VC

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 Underpriced 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.

Google Inc. June 520 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 6.
Most Underpriced 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.
Research In Motion May 130 Puts (NasdaqGS:RIMM - News). RIMM's PowerRating is 7.
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.
Dendreon May 15 Calls (NasdaqGM:DNDN - News). DNDN's PowerRating is 8.
Quest DiagnosticsMay 55 Calls (NYSE:DGX - News). DGX's PowerRating is 3.
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.
iShares MSCI Emerging Markets Index June 115 Puts (AMEX:EEM - News). EEM's PowerRating is 5.
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.
Electronic Data Systems (NYSE:EDS - News). EDS' PowerRating is 5.
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 suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None Today
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.
GlaxoSmithKline (NYSE:GSK - News). GSK's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: DGX, DNDN, EDS, EEM, GOOG, GSK, RIMM, stock options

Stocks traded aimlessly again today as investors waited for the start of earnings season, which traditionally kicks off with an announcement from aluminum producer Alcoa (NYSE: AA - News). The major market averages all managed to post modest gains. Oil prices were also higher, as was the 10-year Treasury note, which saw its yield drop to 4.72%.
Housing was once again in the spotlight as homebuilder D.R Horton (NYSE: DHI - News) announced that is Q2 sales orders fell 37% overall, paced by even steeper declines in the formerly booming California and the Southwest markets. The company's net orders totaled 9,983 homes, down from 15,771 homes last year. Horton's Q2 ended March 31st. The stock closed -1.5% lower.
In corporate news, Swedish telecom equipment maker LM Ericsson (Nasdaq: ERIC - News) signed a deal to manage a portion of the European network of Vodafone (NYSE: VOD - News). Ericsson's shares added 3.6% on the news. Citigroup (NYSE: C - News) was up 1.6% as investors waited for the results of its long-anticipated cost review. Generic drugmaker Mylan Laboratories (NYSE: MYL - News) rose 2.8% after it raised its 2007 profit forecast to a range of $1.60 to $1.63 a share, up from its previous guidance of $1.50 to $1.55 per share. Mylan cited strength in its generics business, including new product launches, for its upbeat forecast.
The flip side of the drug business was exemplified by biopharmaceutical company Adolor (Nasdaq: ADLR - News), which saw its shares plunge -58.7% after it announced that it stopped a study of a new drug to treat opioid-induced (OIC) constipation over safety concerns. The drug, Entereg, was being developed in association with British drugmaker GlaxoSmithKline (NYSE: GSK - News). Several analysts swiftly issued downgrades for Adolor, while Brean Murray Carret reiterated its "sell" recommendation. Progenics Pharmaceuticals (Nasdaq: PGNX - News), which submitted its own OIC compound for FDA approval last Friday along with partner Wyeth (NYSE: WYE - News), added 1.5% today.
Shares of ImClone Systems (Nasdaq: IMCL - News) also slid -6.4% on poor trial results. The company said a late-stage trial of its cancer drug Erbitux failed to extend survival in patients with pancreatic cancer. Erbitux is already approved for treatment of colorectal cancer, and head and neck cancer.
In M&A news, Biosite (Nasdaq: BSTE - News) said it will enter merger talks with Inverness Medical Innovations (NYSE: IMA - News), which last week offered $90 a share for the maker of medical diagnostic tests. IMA's bid topped an earlier offer from Beckman Coulter (NYSE: BEC - News) of $85. All three companies are in the business of making medical test products.

Labels: AA, ADLR, BEC, BSTE, C, DHI, ERIC, GSK, IMA, IMCL, MYL, PGNX, VOD, WYE

Bullish calls:
Comcast (NasdaqGS: CMCSA): ' I think that CMCSA is done going down. It's a very good stock to own in a slowdown. Pull the trigger multiple times on CMCSA. There!'Fuel Tech (NasdaqGM: FTEK): 'It's one of the few companies on alternative energy that are actually maknig money. I like that! Pull the trigger FTEK - get back in!'American Tower (NYSE: AMT - News): ' ... the tower business is a good business. It's just a great generator of cash, so I like it.'Intuitive Surgical (NasdaqGS: ISRG): 'I think that ISRG, AKAM and HOLX are the three high-growth stocks that the momentum crowd is going to gravitate to.'Hologic (NasdaqGS: HOLX)Akamai Technologies (NasdaqGS: AKAM)Continental (NYSE: CAL - News): 'We're going with CAL.'World Wrestling Entertainment (NYSE: WWE - News): 'I've liked it. The stock has done absolutely nothing, but you do get that 6% yield while you wait for something to happen, particularly overseas.'GlaxoSmithKline (NYSE: GSK - News): ' one of the few drugs stocks that I actually like. It has a very good generic, over-the-counter business.'
Neutral calls:
Melco PBL Entertainment (NasdaqGM: MPEL): 'You know, I'm hurting with this MPEL ... Now, the problem is the Macau - no one wants to do anything with China, because China's now in trouble... I have been saying back up the truck on this MPEL down here. I don't want to back away from that, but I have to tell you that this stock - if it goes back to $18-19 - we're going to re-evaluate. '
Bearish calls:
Jefferies (NYSE: JEF - News): ' ... when you miss a quarter in this game, and a lot of other brokerage houses didn't, I think you've got to just wait ... Don't buy, don't buy.'Harley-Davidson (NYSE: HOG - News): 'They missed the quarter. They've become the punching bag of the shorts ... I've got so many companies that have so-called made the quarter, I don't need to step down in quality. HOG? Don't buy, don't buy.'Fastenal (NasdaqGS: FAST): ' You've got a stock at a 52-week low that, frankly, I don't like. I'm sorry, but boy are we being tough in this post-416 decline. Again, don't buy.'Taiwan Semiconductor (NYSE: TSM - News): 'This is one of the best... you know, it's a commodity semiconductor. It's been doing incredibly well. It's at a 52-week high. You know I don't really like the semi-conductor index. This stock - I would honestly - even though it yields 3% - let's take some money off the table. I'm not crazy about TSM right here.'ExpressJet (NYSE: XJT - News)
Published By SeekingAlpha

Labels: AMT, CAL, CMCSA, FAST, GSK, HOG, ISRG, JEF, Jim Cramer, Lightning Round, Mad Money, MPEL, TSM, WWE, XJT

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 (PRCS) for $54.8 million. GSK shares are off 0.3 percent, but PRCS is up 145 percent to $4.90 a share.
-Jody Osborne

Labels: CAG, GIS, GS, GSK, NKE, PRCS, RTN

A lack of compelling economic or corporate news, combined with light pre-holiday volume, prevented the stock market from sustaining an early rally that saw the Dow Jones Industrial Average briefly push past its record close. Stocks ultimately reversed course, and the major indices closed moderately lower for the day. Crude oil futures rose while the 10-year Treasury note ended unchanged.
FedEx (NYSE: FDX - News) topped the day's earnings news by delivering an 8% profit increase in its fiscal second quarter ended November 30th. Those solid results were overshadowed, in Wall Streets' view, by the company's cautious outlook for FQ3. While the company did suggest that a slowing U.S. economy would impact domestic sales in the current quarter, its global view was robust. The stock declined sharply in the morning, but recovered some lost ground to close down -2%. Its chief shipping rival, United Parcel Service (NYSE: UPS - News), stepped back -1%. Subscribers can read our analysis of quarterly results from FedEx in today's issue.
A divided Federal Communications Commission voted today to make it easier for telephone companies to enter local television markets. Telecom giants AT&T (NYSE: T - News) and Verizon (NYSE: VZ - News) have been lobbying heavily to simplify access to markets dominated by cable leaders like Comcast (Nasdaq: CMCSA - News). The announcement appears to have generated little interest among investors, possibly because the debate is far from over. The incoming Democratic chairman of the House Energy & Commerce Committee, Rep. John Dingell of Michigan, sent a letter to the FCC on Tuesday that questioned whether the agency had the authority to impose new rules he believes are the purview of Congress.
On the merger front, Swedish telecom equipment maker Ericsson (Nasdaq: ERICY - News) announced it would buy Redback Networks (Nasdaq: RBAK - News) for $2.1 billion. Analysts said the deal would improve Ericsson's competitive position versus Alcatel-Lucent (NYSE: ALU - News) and Siemens (NYSE: SI - News), while also helping Redback compete with larger broadband equipment makers like Cisco Systems (Nasdaq: CSCO - News). Elsewhere, shareholders of food-service provider Aramark (NYSE: RMK - News) voted overwhelmingly in favor of a $6.3 billion leveraged buyout plan. It is the second time in the company's history that it has gone private.
In today's analyst ratings changes, biotech Gilead Sciences (Nasdaq: GILD - News) was upgraded to a "buy" today by Caris & Company, while Goldman Sachs resumed coverage of the firm, also giving it a "buy" rating. Earlier this week, the company filed for Food & Drug Administration approval of its hypertension treatment ambrisentan, which it acquired as part of its purchase of Myogen last month. GlaxoSmithKline (NYSE: GSK - News) owns the marketing rights to ambrisentan outside of the U.S.

Labels: ALU, CMCSA, CSCO, ERICY, FDX, GILD, GSK, RBAK, RMK, SI, T, UPS, VZ

Although Genentech (NYSE: DNA - News) announced positive results from a study of Avastin as a treatment for kidney cancer, the stock dropped -2% on the day on news from a potential competitor of the company's other leading cancer drug Herceptin. Tykerb is a much-hyped cancer drug under developmental at GlaxoSmithKline (NYSE: GSK - News). Today, the company announced that it is beginning a Phase III trial to measure the survival benefit the drug can deliver to women with breast cancer. The drug has already shown some efficacy treating women with advanced breast cancer who didn't respond to Herceptin.
The new Phase III study, however, will study the survival benefit in an adjuvant setting, which means in women who have already had surgery or radiation treatment. In the adjuvant setting, where drugs are given to help halt the progression of the cancer after other treatments, Tykerb could address a much larger market.
The pressure Genentech is seeing on this news is overdone, in our view. While Tykerb could reach commercialization in a small market next year, approval in the adjuvant setting is many years away. The yearlong Phase III trial hasn't even been enrolled yet, never mind assessed or shown to be successful. While those steps are being taken over the next few years, Herceptin sales are going to continue to grow.
Meanwhile, Genentech said that Avastin produced positive results in a Phase III trial measuring progression-free survival in kidney cancer patients. The drug was administered in combination with interferon alpha, a common cancer treatment. The company has more studies to complete on the data, including comparisons to the results patients on interferon alone saw. However, this is yet another case of Genentech being able to leverage one of its blockbuster drugs into a new realm of treatment. Avastin is already approved for colorectal and lung cancer; based on the results of this latest study, the company said it is looking at an FDA application for Avastin as a treatment for kidney cancer.
Genentech operates in a competitive field, but with several blockbusters posting strong sales growth and showing the potential to expand into new indications, we continue to view it as the premiere biotech in the business.
-Bullmarket.com

Labels: DNA, Genentech Inc., Glaxosmithkline plc, GSK

Epix Pharmaceuticals (NASDAQ:EPIX - News) shares soared 30% after it entered into a drug discovery and development pact with GlaxoSmithKline (NYSE:GSK - News). As part of deal, Epix will receive an upfront payment of $35 million, which includes $17.5 million from the sale of 3 million shares of its common stock. Epix will also be eligible for up to $1.2 billion for the achievement of certain milestones, and royalties on product sales.
Imperial Sugar Co. (NASDAQ:IPSU - News) shares jumped 15% after it reported that it swung to a fiscal fourth-quarter profit from a year-earlier loss and declared a $3 special dividend. For the quarter ended Sept. 30, Imperial earned $15.7 million, or $1.36 a share, compared with a loss of $20.3 million, or $1.92, in the year-earlier period. Continuing operations produced earnings of $1.34 compared with a loss of 26 cents. Sales reached $240.3 million, up 6.1% from $226.6 million. In a statement, Imperial said gross-profit margin widened to 15.5% from 4.7%, primarily because of higher sales prices, offset by higher energy, freight and raw-sugar costs. The special dividend, which comes in addition to the company's regular dividend, is payable Jan. 5 to holders of record Dec. 26. Looking ahead, Imperial said fiscal 2007 prices and margins probably will lag 2006 levels, offset partly by reduced raw-sugar and energy costs. The combination of factors leads the company to believe it can "maintain a profit outlook that is superior to historical averages," Imperial said.
Mama.com Inc. (NASDAQ:MAMA - News) shares surged 81% after the company said it's launched its video search engine in beta format in partnership with the Pixsy Media Search platform.
Shares of Nymox Pharmaceuticals (NASDAQ:NYMX - News) rose 8.3% after the company said it's developing NXC-4720 for the reduction of E-Coli contamination of food products. The company said studies have shown the NXC-4720 product "is capable of reducing the level of E. Coli O157:H7 contamination by over 99%."
Oriental Financial Group (NYSE:OFG - News) shares rose 7.1% after the company said it's repositioned its sale investment portfolio, making moves that it expects to increase its net interest income by about $16 million, or 67 cents a share, in 2007.
Sabre Holdings Corp. (NYSE:TSG - News) shares climbed 5% after it agreed to be acquired by private-equity firms Silver Lake Partners and Texas Pacific Group for about $5 billion, or $32.75 a share. The transaction includes the assumption of about $550 million of debt. The price represents a premium of 30% over the company's average closing share price during the 60 trading days ended Dec. 8, Sabre said. The Southlake, Texas-based travel-booking service said it doesn't expect changes to its current management team. The deal is expected to close in the second quarter of 2007, the company said.
Scotts Miracle-Gro Co. (NYSE:SMG - News) shares rose 5% after it said it plans to recapitalize its balance sheet and return $750 million to its shareholders. It plans to accomplish this through a Dutch auction tender offer for up to $250 million worth of its stock and a special one-time cash dividend for the balance of the program. The provider of consumer lawn and garden products expects to complete the recapitalization, including a new $2.1 billion credit facility, by March 31. Scotts also forecast pro forma net income growth of 11% to 13% for 2007 with sales tabbed to increase between 8% and 10%. It sees free cash flow of more than $165 million for the year.
Trailer Bridge Inc. (NASDAQ:TRBR - News) shares gained 8.5% after it said it's received a contract to the exclusive carrier to Puerto Rico for all new vehicles made by Ford Motor Co. (NYSE:F - News). Financial terms weren't disclosed although the company did say the deal would make Ford its largest customer in revenue terms.
-Marketwatch

Labels: EPIX, F, GSK, Hot Stocks, IPSU, MAMA, NYMX, OFG, SMG, TRBR, TSG

WellPoint (NYSE: WLP - News), MedcoHealth (NYSE: MHS - News), Quest Diagnostics (NYSE: DGX - News), Schering-Plough (NYSE: SGP - News), Johnson & Johnson (NYSE: JNJ - News), Pfizer (NYSE: PFE - News) Merck (NYSE: MRK - News), Novartis (NYSE: NVS - News), GlaxoSmithKline (NYSE: GSK - News) - Cramer notes that drug stocks are having a post-election rally and are screaming "buy, buy, buy!" with the exception of Pfizer, a "challenged company" which has fired a lot of people to "create an upside surprise by lowering its bar." Cramer likes MHS, DGX, SGP, JNJ, MRK, NVS, GSK and adds that WLP is best of breed.

Sacked Citi: Citigroup (NYSE: C - News) - Cramer comments that since CEO Chuck Prince protected Citibank against New York Attorney General Eliot Spitzer, shareholders have been "brain dead and happy" and fail to realize that there needs to be a change in leadership. Concerning suggestions that Citibank should be broken up, Cramer said, "I believe that breakup calls make sense, but not until you have someone at the helm who can make a difference." Cramer suggested selling Citibank.
Housing, General Motors (NYSE: GM - News), Ford (NYSE: F - News) and Exxon (NYSE: XOM - News) - Cramer notes that in housing, sellers are "desperate", are cutting prices, and buyers should take advantage of the current inventory excess. "There is not an industry in the world that can finance nonproducing inventory except oil, which is why I like that business so much," Cramer said. "Its inventory goes up in price as it sits because of a developing multiyear storage." Homebuilding is a cyclical rather than a secular grower, explains Cramer adding that they "downgraded the cyclicals at the bottom of the cycle because the price-to-earnings ratios soared." Cramer notes the pullback of the auto and housing sectors and predicts a "big decline" in the economy, adding that GM and Ford are laying off workers. Cramer does see some momentum in energy with Exxon as the "annointed stock."
Bullish calls:
Las Vegas Sands (NYSE: LVS - News) and MasterCard (NYSE: MA - News): Although these stocks are "beaten down" Cramer declares that they are going up and would pull the trigger if they go down five or six points because "even the best ones need to take a breather."Saks (NYSE: SKS - News) and Nordstrom (NYSE: JWN - News): Saks is "in the midst of a major turnaround" and should join ranks with JWN.Bank of America (NYSE: BAC - News): This company knows how to treat its shareholders, according to Cramer.Cisco (NASDAQ: CSCO - News): Cramer says he is a "Cisco guy" when it comes to telecom.AK Steel (NYSE: AKS - News): Cramer likes this company but prefers Reliance Steel (NYSE: RS - News).
Neutral/Bearish calls:
Continental (NYSE: CAL - News): Cramer likes this airline, but since the sector has had a "tremendous" run, he would take profit now.JPMorgan (NYSE: JPM - News): "Fine," says Cramer, but not a "must own."RF Micro Devices (NASDAQ: RFMD - News)Coldwater Creek (NASDAQ: CWTR - News): When a caller complained about being in the "house of pain" with Coldwater Creek, Cramer replied, "That's because it's a huge mistake."

Labels: AKS, BAC, C, CSCO, DGX, GM, GSK, Jim Cramer, JNJ, JWN, LVS, MHS, MRK, NVS, pfe, Real Money Radio, SGP, SKS, WLP, XOM