Jim Cramer Blog

Target (NYSE:TGT) reported earnings today before the open, beating analyst estimates by three cents. The Short Term PowerRating for TGT is 4.
An analyst report suggesting that Chinese demand for metals lead to lower prices for shares of stocks like Alcoa (NYSE:AA), which was down more than 3% on the day. The Short Term PowerRating for AA is 2.
Home Depot (NYSE:HD) announced earnings beat lowered estimates but failed to truly impress traders and investors, who sent the stock lower by more than 5% on Tuesday. The Short Term PowerRating for HD is 5.
Solarfun Power (NasdaqGM:SOLF) reports earnings Wednesday morning before the open, with analysts expecting EPS of $1.12. The Short Term PowerRating for SOLF is 1.
Expanding its services to allow customers to watch content downloaded from the Internet on their televisions, Netflix (NasdaqGS:NFLX) was up by more than 3% in Tuesday trading. The Short Term PowerRating for NFLX is 5.
Added to Goldman Sachs "conviction buy list" today, Humana (NYSE:HUM) was one of the largest gainers in the S&P 500 today. The Short Term PowerRating for HUM is 3.
Discounts on women's clothing and accessories did not prevent Saks (NYSE:SKS) from missing analyst estimates in its earnings report on Tuesday. Saks finished the day down more than 6%. The Short Term PowerRating for SKS is 4.

Labels: AA, HD, Hot Stocks, HUM, NFLX, SKS, SOLF, TGT

Amazon.com (NasdaqGS:AMZN) soared on news that Goldman Sachs added the company to its "buy" list, citing the potential for growth in the leading online retailer. The Short Term PowerRating for AMZN is 4.
Another day, another upgrade in the semiconductor sector as Citigroup raises Texas Instruments (NYSE:TXN) from "hold" to "buy". The Short Term PowerRating for TXN is 3.
Railroad stocks continued to rally with CSX Corp. (NYSE:CSX)leading the group higher on the day. The Short Term PowerRating for CSX is 3.
Shares of SanDisk (NasdaqGS:SNDK) plunged more than 7% on an analyst downgrade to "market underperform." The Short Term PowerRating for SNDK is 2.
Traders bid shares of Solarfun Power Holdings (NasdaqGM:SOLF) higher on Monday in anticipation of the company's earnings report on Wednesday before the open. The Short Term PowerRating for SOLF is 1.
Home Depot (NYSE:HD), the worlds largest home improvement retailer, reports earnings Tuesday morning before the bell. Analysts expect EPS of $0.37. The Short Term PowerRating for HD is 4.
Oracle (NasdaqGS:ORCL) found its future and Larry Ellison's leadership endorsed by Barron's magazine over the weekend. The stock was up more than 3% on the Monday. The Short Term PowerRating for ORCL is 4.

Labels: AMZN, CSX, HD, Hot Stocks, ORCL, SNDK, TXN

Amazon.com (NasdaqGS:AMZN) soared on news that Goldman Sachs added the company to its "buy" list, citing the potential for growth in the leading online retailer. The Short Term PowerRating for AMZN is 4.
Another day, another upgrade in the semiconductor sector as Citigroup raises Texas Instruments (NYSE:TXN) from "hold" to "buy". The Short Term PowerRating for TXN is 3.
Railroad stocks continued to rally with CSX Corp. (NYSE:CSX)leading the group higher on the day. The Short Term PowerRating for CSX is 3.
Shares of SanDisk (NasdaqGS:SNDK) plunged more than 7% on an analyst downgrade to "market underperform." The Short Term PowerRating for SNDK is 2.
Traders bid shares of Solarfun Power Holdings (NasdaqGM:SOLF) higher on Monday in anticipation of the company's earnings report on Wednesday before the open. The Short Term PowerRating for SOLF is 1.
Home Depot (NYSE:HD), the worlds largest home improvement retailer, reports earnings Tuesday morning before the bell. Analysts expect EPS of $0.37. The Short Term PowerRating for HD is 4.
Oracle (NasdaqGS:ORCL) found its future and Larry Ellison's leadership endorsed by Barron's magazine over the weekend. The stock was up more than 3% on the Monday. The Short Term PowerRating for ORCL is 4.

Labels: AMZN, CSX, HD, Hot Stocks, ORCL, SNDK, SOLF, TXN

Bullish calls:
Walt Disney (DIS): 'Again, I don't play for DIS, but I'm certainly not going to blast it. I think it's a good company.' Brookfield Asset Management (BAM): 'They've got terrific, terrific management … BAM will come back!' Hewlett-Packard (HPQ): 'HPQ has the business model and the leverage!' SunPower (SPWR) First Solar (FSLR) Johnson Controls (JCI): 'There was a man who just downgraded it … He's taken a very short-term approach. JCI has an unbelievably good business in climate control and, when autos come back, that stock's going to roar.' J. Crew (JCG) Costco (COST)
Bearish calls:
Wolseley (WOS): 'I can't endorse that company. Those companies are all doing badly.' Lowe's (LOW): 'I don't even recommend Lowe's anymore on this show.' Fannie Mae (FNM): 'It's just too hard to value right now...They just cut the dividend. Guys are going to sell it. I'm not there...' Automatic Data Processing (ADP): 'No. It's just a flatlined name. You need a stronger economy for that play.' Dell (DELL): 'DELL can buyback as many shares as it wants. HPQ has the business model and the leverage!' LDK Solar (LDK): 'No, c'mon man! The finances are unclear!' Cabela's (CAB): 'That company is just simply one of the worst publicly-traded companies I've ever seen.' South Financial Group (TSFG): 'Good stock in a really bad neighborhood … I can't touch the darn thing. Sorry to be so negative.' Home Depot (HD): 'That group is too darn hard.' Solarfun Power (SOLF)
Published By SeekingAlpha.com

Labels: ADP, BAM, CAB, COST, DELL, DIS, FNM, FSLR, HD, HPQ, JCG, JCI, Jim Cramer, LDK, Lightning Round, LOW, Mad Money, SPWR, TSFG, WOS

Dennis Gartman, author of The Gartman Letter, joined the show to discuss his take on the dollar, which he predicted last Friday was due for a bounce. The dollar had its biggest one day reversal in a year on Monday. He also noted that in the last 4 days the U.S. dollar had the biggest rally versus the Canadian dollar that he has seen in his life. He also wouldn't be surprised to see gold fall another $40. Also, Gartman is looking for oil to fall $10-$15 before Thanksgiving.
Merrill Lynch economist David Rosenberg said on Monday that the last time he's seen a drop in consumer confidence to this degree during the Holiday season; the economy was in a recession. Macke thinks the Tuesday earnings reports from Home Depot (HD) and Wal-Mart (WMT) will be horrific. The only retailer he expects a good earnings report from is Kohl's (KSS) and his wild card is Macy's (M). He would get long Costco (COST) and Target (TGT). Adami thinks a trade is setting up for Coldwater Creek (CWTR), which he mentions has a very high short interest.
E*Trade (ETFC) lost 60% of its value Monday on concerns over the companies loan portfolio. Finerman thinks the most clear trade is to be long TD Ameritrade Holding (AMTD). Finerman sees opportunity for TD Ameritrade to steal E*Trade clients with all the problems they're having. She also likes Charles Schwab (SCHW).
IBM (IBM) bought Cognos (COGN) for $5 billion and Fortune Brands (FO) sold its wine business to Constellation Brands (STZ) for $885 million. Adami declares United States Steel (X) will be the next company to be taken over.
Word on the Street
Technology stocks continued to slide Monday with leaders like Google (GOOG) dropping 5%, Apple (AAPL) dropping 7% and Research In Motion (RIMM) dropping 9%. Adami likes Hewlett Packard (HPQ) ahead of next Monday's earnings report.
Rio Tinto (RTP) hits a record high after BHP Billiton (BHP) laid out the details for its $140 billion all-share offer.
Adami says the big pharmaceutical story is not fiction and Merck (MRK) is for real. He also loves defense play Johnson & Johnson (JNJ). Macke agrees with Adami and that right now is a good time to be long Merck, Procter & Gamble (PG), Pfizer (PFE) and Church & Dwight (CHD) for a defensive portfolio. Najarian wants to keep an eye on Eli Lilly (LLY).
Pops & Drops
Pops - Cisco Systems (CSCO) traded up 2% on Monday as the market declined.
Mattel (MAT) traded up 4% off a JPMorgan upgrade.
Starwood (HOT) traded up 2%
Washington Mutual (WM) traded up 1% as the financial stocks mounted a rally on Monday.
American Airlines (AMR), US Airways (LCC) and Delta (DAL) all traded up more than 5% as oil prices declined.
Starbucks (SBUX) traded up 3%.
Drops - Freeport McMoRan (FCX) fell 10% as commodity stocks were hit off the dollar rally.
Tyson Foods (TSN) fell 3% after cutting its 2008 forecast.
Sotheby's (BID) fell 2%.
Mosaic (MOS) fell 14% off the dollar rally.
Final Trade
Macke likes defensive play Procter & Gamble (PG).
Adami recommends Cisco Systems (CSCO).
Finerman and Najarian both picked TD Ameritrade Holding (AMTD).

Labels: AMTD, CNBC, CNBC's Fast Money, COST, CWTR, dennis gartman, ETFC, Fast Money, Fast Money Recap, HD, KSS, TGT, WMT

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Esco Technologies (NYSE:ESE - News) missed earnings on Monday afternoon, announcing $0.64 EPS versus expectations of $0.66 EPS. ESE's PowerRating (for Traders) is 6.
Bob Evans (NasdaqGS:BOBE - News) beat earnings expectations, announcing $0.45 EPS over $0.39 EPS. BOBE's PowerRating (for Traders) is 3.
Fossil (NasdaqGS:FOSL - News) reports earnings on Tuesday morning before the market opens, with traders looking for $0.34 EPS. FOSL's PowerRating (for Traders) is 7.
When Home Depot (NYSE:HD - News) announces quarterly results on Tuesday before the bell, look for $0.61 EPS. HD's PowerRating (for Traders) is 5.
Pilgrim's Pride (NYSE:PPC - News) looks set to announce $1.13 EPS on Tuesday morning. PPC's PowerRating (for Traders) is 7.
Analysts are watching for Wal-Mart (NYSE:WMT - News) to report $0.67 EPS on Tuesday before the bell rings. WMT's PowerRating (for Traders) is 4.
Excel Maritime Carriers (NYSE:EXM - News) reports earnings after the bell on Tuesday, so watch for heightened price action and volume ahead of the bell. EXM's PowerRating (for Traders) is 10.

Labels: BOBE, ESE, EXM, FOSL, HD, Hot Stocks, PPC, WMT

Bullish:
Global Industries (GLBL) – Cramer will not walk away from.
Transocean (RIG) – Is really behind.
Trico Marine (TRMA) – Is not bad.
Core Labs (CLB) – Nothing is better.
FMC (FMC) – Likes as well.
Compellent Tech (CML) – Reminds Cramer of a “mini- VMware.
VMWare (VMW)
Oilsands Quest (BQI) – With the right tax regime in Alberta, there would be some pin action up there.
Novagold (NG) – Could become the depositor of an incredible amount of cheap gold.

Bearish:
Jones Soda (JSDA)- Says no. Sell Jones.
Jamba (JMBA) - Sell
Hansen (HANS) - Sell
Radian Group (RDN) – Does not believe they can raise the capital they need.
Fannie Mae (FNM) – Cramer can not get behind.
Rediff.com (REDF) – Another Baidu.
Countrywide (CFC) – Does not like. Would buy Wells Fargo.
AIG (AIG) – Sell sell sell.
Home Depot (HD) – Rather be in Lowes.
Level 3 (LVLT) – Can’t get CEO on the show.
Old National Bank (ONB) – People are not buying these banks right now.
Superior Offshore (DEEP) – Sticking with Transocean.

Labels: BQI, CLB, CML, DEEP, FMC, GLBL, HANS, HD, Jim Cramer, JMBA, JSDA, Lightning Round, LVLT, Mad Money, NG, ONB, RDN, RIG, TRMA, VMW

Fast Money reviewed the effects the rate cut had on the stock market this past week. Najarian believes the Fed has eased the concerns on Wall Street with the rate cuts. Finerman feels that the fear from the credit scares and hedge fund blow ups has been lifted. Macke thinks inflation fears, which are longer term, replaced the credit fears. Macke recommends getting out of the dollar and spend instead. Macke's picks retailers like Best Buy (BBY), GameStop (GME) and J. Crew (JCG). Dennis Gartman joined the crew to discuss his take on the action in the commodities markets. Gartman declares that if you want to own gold, soybeans, oil and steel, "own all the things that would hurt if you dropped them on your foot." Najarian's Tech Picking: Oracle (ORCL), Intel (INTC), and Apple (AAPL). He also picked Texas Instruments (TXN) and Google (GOOG), after it traded at its record high on Friday.
On Friday news broke that KKR and Goldman pulled out of a deal to buyout Harman (HAR) for $8 billion. Jim Cramer said "we will have many more blowups in the next few weeks like Harman." Finerman: Genesco (GCO). Najirian: United Rentals (URI).
Fall Trade: Media Reporter Julia Boorstin says ABC will benefit most, being controlled by Disney (DIS) and its upcoming fall lineup. She said that ads are moving online and networks are giving away their shows. She recommends General Electric (GE). Adami likes Google (GOOG).
Adami recommends defense stocks and Ford (F) over GM, while Najirian recommends tech stocks like Intel Corporation (INTC) and Texas Instruments (TXN).
Fast Fire:
Finerman: Home Depot (HD)
Macke: General Motors (GM)
Pops & Drops:
Pops: Macke-AT&T (T), Blue Nile (NILE), and Oracle (ORCL), Finerman- NYSE Euronext (NYX) and Estee Lauder (EL), Najirian: Transocean (RIG), Adami: Cisco Systems (CSCO).
Drops: Adami- FedEx (FDX), Brocade Communications (BRCD). Macke- Pool Corporation (POOL).
Final Trade: Finerman- NYSE Euronext (NYX), Najarian- BJ Services (BJS), Macke- General Motors (GM)

Labels: AAPL, BBY, CNBC, F, Fast Money, GME, GOOG, HD, INTC, JCG, Jim Cramer, ORCL, TXN

The Fed's 50 point cut on Tuesday sparked the stock market, and CNBC's "Fast Money" discussed why the bulls are running, and what it means for financial stocks:
Najarian: Tuesday's actions all about the financials. Financial Select Sector SPDR, ton of volume in call options.
Macke: Can't be short financials now.
Adami: continues to like financials; Lehman Brothers(LEH), Goldman Sachs (GS) and Morgan Stanley (MS)
All Clear on Wall Street? CNBC's Charlie Gasparino discussed whether brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns (BSC)--lease diversed and tied to credit markets.
OIL: Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Author Dennis Gartman: Shocked by feds decision. Thinks stock market will continue to climb.
Housing Market: Adami: housing stocks are back for a trade. He likes Hovanian, (HOV), Toll Brothers (TOL) and Pulte Homes (PHM)
Finerman: Still likes Home Depot(HD), which she owns for its cheap valuation.
Word on the Street: Cummings (CMI) and Caterpillar (CAT) exploded higher on the Fed cut. Najarian: Thinks CAT has much more upside to come.
Global: China and Brazil's markets soared on the rate cuts. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and Brazil ETF (EWZ)
Face 2 Face:
Viewer writes: "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.
Viewer writes: "Should I sell my October $195 call options on Goldman Sachs (GS) now or is there still more upside?" Najarian- feels strong about GS, but you should take half the position off before earnings.
Viewer writes: "What is your outlook for Tiffany's (TIF) as the holiday season approaches?" Macke is positive about Tiffany's and Blue Nile (NILE)
Pops & Drops:
Pops: Macke-Caterpillar (CAT), Finerman-Target (TGT), Adami-Alcoa (AA)-could be bought out by Najarian's pick-Billiton (BHP), and Finerman-Wendy's (WEN)
Drops: Najarian-E*Trade (ETFC), Macke-Hovnanian(DOG), Adami-Boeing(BA)
Final Trade:
Macke- Macy's (M)
Finerman- Altria (MO)
Adami- Nucor (NUE)
Najarian- Companhia Vale do Rio Doce (RIO)

Labels: BHP, BSC, CAT, CMI, CNBC, ETFC, EWZ, Fast Money, GS, HD, HOV, LEH, MS, NILE, PHM, SPDR, TGT, TIF, TOL, WEN

Stocks went on a mini-roller coaster ride for the session, starting off the day with moderate losses then coming back to rally. At the close however, bulls couldn't keep the rally intact. The Dow ended the session higher by 14 points, while both the Nasdaq and S&P 500 ended with small losses. Over in the energy pits, crude oil rallied towards the end of the session after being lower most of the morning. Crude finished with a gain of 79 cents to $77.49 a barrel.
In economic headlines, San Francisco Fed President, Janet Yellen said that the U.S. faces increased risks of a "significant economic slowdown" from worsening conditions in the housing sector and from tighter financial markets. Separately, Dallas Fed President, Richard Fischer declared that he was "generally encouraged" about the state of the economy and that the August job losses represented an "occasional discordant note."
In corporate news, billionaire Joseph Lewis has taken a 7% stake in Wall Street firm Bear Sterns (NYSE: BSC - News) following the company's more than -30% decline in recent months after the subprime mess led to a variety of difficulties for the firm. The stake was made public in regulatory filings; Lewis is now Bear Stearns' largest shareholder. Shares rose 2% on the session.
Semiconductor giant Intel (Nasdaq: INTC - News) announced today that it now expects revenues in 2007 to come in ahead of prior forecasts. For the full year, the company sees revenues of $9.4-9.8 billion, up from $9-9.6 billion. It also noted that margins will come in at the upper half of its previous projection of 52%, plus or minus a couple points. As the chip wars rage on, chief rival Advanced Micro Devices (NYSE: AMD - News) unveiled its first ever quad-core chip dubbed "Barcelona." The new chip was long awaited despite rival Intel already having come to market with a competing chip over a year ago. AMD shares advanced 2.6%.
The nation's largest home improvement retailer, Home Depot (NYSE: HD - News) boosted its 2007 earnings guidance to better reflect its recent share buyback activities. The retailer noted that full-year earnings will now decline -7% to -9%, compared to the previous forecast for -12% to -15% decline. The company announced that it has purchased roughly 14.6% of its total outstanding shares at a cost of $10.7 billion.
Troubled mortgage lender Countrywide Financial (NYSE: CFC - News) announced late-Friday that it will be cutting up to 12,000 jobs or roughly 20% of its workforce as conditions in the mortgage market continue to worsen. In addition, the company noted that it sees total origination volumes falling -25%. Investors sent the shares down 5.5%.
By The BullMarket.com Staff

Labels: AMD, BSC, CFC, HD, INTC

Here are 7 options to watch for Wednesday.
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 Sep 550 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 5.
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.
eBay Sep 35 Puts (NasdaqGS:EBAY - News). EBAY's PowerRating (for Traders) is 5.
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.
Lehman Brothers Sep 60 Calls (NYSE:LEH - News). LEH's PowerRating (for Traders) is 4.
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.
Goldman Sachs Oct 150 Puts (NYSE:GS - News). GS's PowerRating (for Traders) is 4.
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.
GENESCO (NYSE:GCO - News). GCO's PowerRating (for Traders) 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 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.
Home Depot (NYSE:HD - News). HD's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: Ebay, GCO, GOOG, GS, HD, LEH, stock options

Here are 7 options to watch for Tuesday.
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 Sep 530 Calls (NasdaqGS:GOOG - News)
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.
Altria Group Sep 60 Puts (NYSE:MO - News)
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.
Lehman Brothers Sep 55 Calls (NYSE:LEH - News)
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.
Bear Stearns Oct 85 Puts (NYSE:BSC - News)
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.
None Today
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.
Home Depot (NYSE:HD - News)

Labels: BSC, GOOG, HD, LEH, MO, stock options

Stocks drifted lower after data showed continued softness in the housing market, with investors once again hesitant to bid up stocks following Friday's strong rally. The Dow erased -57 points, while the Nasdaq and S&P 500 lost -15 and -13 points, respectively. Oil rose 95 cents to finish the session at $72.04.
The National Association of Realtors reported today that sales of previously owned homes in July fell the most in more than five years. The glut of unsold homes also climbed the most since 1991. The group reported that purchases declined -0.2% to an annual rate of 5.75 million homes. Inventories, meanwhile, were the equivalent of 9.2 months of supply. Sales dropped -9% and the median household value fell -0.6% to $228,900. The supply of homes for sale at the end of the month climbed 5.1% to 4.59 million.
On the political landscape, U.S. Attorney General Alberto Gonzales resigned from his post amid what has been a tenure marked by a political fight over the firings of federal prosecutors. He is expected to officially leave his post on September 17th.
On the M&A front, Home Depot (NYSE: HD - News) agreed to sell its HD Supply business to private equity for $8.5 billion, an -18% reduction in price offered at the onset of the deal. The financers that were part of the deal were looking for price cuts as the credit markets have recently gotten more difficult to navigate. Shares rose 1.6%.
Also in deal news, Taiwan based Acer agreed to buy computer maker Gateway Computer (NYSE: GTW - News) for $710 million, or $1.90 a share, a 57% premium to Gateway's closing price on Friday. The combined company would overtake Lenovo (OTC: LNVGY - News) as the third-largest maker of computers. United States Steel (NYSE: X - News) agreed to buy Canadian based Stelco for $1.1 billion in an effort to bolster its position in the flat iron steel market. U.S. Steel shares fell -0.4% on the session.
Shares of Altria Group (NYSE: MO - News), meanwhile, rose 1.3% after a Citigroup analyst predicted the tobacco company would announce the spin-off its international unit at a meeting on Wednesday. The move has been speculated upon for quite some time. Subscribers can read our analysis of Altria in today's issue.
By the BullMarket.com Staff

Labels: GTW, HD, LNVGY, MO, X

Citigroup (C) pulled together its emerging-markets credit group and its global credit-trading business. The combined group will be headed by Carey Lathrop, a nearly 20-year veteran of the bank who led the emerging-markets business.
Crocs (CROX), in an attempt to diversify its product line, will introduce a line of apparel for men and children. The apparel line, which Crocs intends to unveil today, will feature regular fibers, such as cotton, interwoven with a lightweight derivative of the pliable, plastic resin used to make Crocs' shoes. It will make its debut in stores in October.
Home Depot (HD) agreed to cut the price in its supply division sale to buyout firms by $1.8 billion, sources said on Sunday, as a housing market drop and a credit crunch forced all sides to renegotiate.
Marsh & McLennan (MMC) said it has agreed to buy back $800 million worth of its outstanding shares in an accelerated share repurchase transaction. The company said it will fund the transaction with proceeds from the recent sale of Putnam Investments and that it will conduct the purchase under the $1.5-billion share buyback authorization announced on Aug. 7.
Rambus (RMBS) said the special litigation committee established by the board has finished its review of stock options practices and submitted a final report to court. The special litigation committee was composed of two independent directors, J. Thomas Bentley and Abraham Sofaer, and it conducted its review with the assistance of independent counsel, the company said.
United States Steel (X) said it will buy Canadian steelmaker Stelco for $1.1 billion in a cash deal, including X paying $36.59 per share of Stelco.
Wal-Mart (WMT) is considering acquisitions in its home market as it seeks to open smaller stores and limit its reliance on giant supercenters for growth, the Financial Times reported.
Published by Minyanville.com

Labels: C, CROX, HD, Hot Stocks, MMC, RMBS, WMT, X

At midday, stocks were rising modestly on upbeat economic and housing data. Stocks have been less volatile this week as investors have been patient and trying to dissect what the Fed will do at its next scheduled meeting in September. Also midday, oil was trading higher on the day.
In economic news, the Commerce Department said that Durable Good orders gained more than forecast in July. For the month, orders climbed 5.9%, the biggest gain since September. Today's figure came after a revised 1.9% the prior month. Excluding transportation equipment, orders rose 3.7%, the most in nearly two years. In the housing side of the economic picture, sales of new homes increased 2.8% in July to a seasonally adjusted rate of 870,000. Inventory of homes fell -1%, the fourth-straight month it has fallen. The median price of a home in the U.S. was $239.500, up 0.6% from last year's measure.
To end the week, several companies reported quarterly earnings, among them number-two burger giant Burger King (NYSE: BKC - News). For the quarter ended June 30th, the company reported earnings of $36 million, or 26 cents a share, up from a year-ago loss of -$10 million, or -8 cents a share. Excluding items from both those quarters, it earned $40 million, or 29 cents a share, up from $25 million, or 18 cents a share, in 2006. Analysts on average were looking for EPS of 27 cents. Sales hit $590 million, up from $533 million last year. Same-store sales increased 4.4% worldwide, with the U.S. and Canada showing growth of 4.8%. The company attributed the strong quarter to increased sales in its breakfast and late-night operations in the U.S. and Canada.
Continuing on the food theme, ketchup maker H.J. Heinz (NYSE: HNZ - News) said its first-quarter earnings grew 6%. For the quarter, the company posted net income of $205.3 million, or 63 cents a share, up from $194.1 million, or 58 cents a share, in the same period a year ago. Sales climbed 9% to $2.25 billion on double-digit growth in ketchup, beans, and soups. Its earnings came in line with what the street was forecasting. It also increased its full-year EPS outlook to the top of its range of $2.54-2.60.
Over in the tech world, embattled chipmaker Marvell Tech (Nasdaq: MRVL - News) posted a loss of -$56.5 million, or -10 cents a share, compared to a profit of $44.9 million, or 7 cents a share, last year. Excluding stock-based compensation, it would have earned 6 cents a share, in line with what analysts were expecting. Sales rose 14% to $656.7 million on increased sales of its communications and wireless network chips. Costs, meanwhile, surged, as R&D expenses increased 55% and SG&A costs rose 71% from year-ago levels.
In corporate M&A news, the nation's largest home improvement retailer, Home Depot (NYSE: HD - News), said it may cut its sale of its HD Supply unit by as much as $1 billion in an effort to salvage the deal. The deal, which was announced last quarter for $10.3 billion, is in jeopardy as its buyers, private equity groups Bain Capital; The Carlyle Group; and Clayton, Dubilier & Rice, are seeking price cuts. The financers on the deal, which include three top Wall St. banks, are seeking price cuts as well as they are hesitant to finance the mega-billion dollar deal in the current debt market environment.

Labels: BKC, HD, HNZ, MRVL

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.
Goldman Sachs Oct 210.0 Calls (NYSE:GS - News). GS' 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.
Baidu.com Sep 165.0 Puts (NasdaqGS:BIDU - News). BIDU'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.
Lehman Brothers Sep 55.0 Calls (NYSE:LEH - News). LEH'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.
Countrywide Financial Sep 20.0 Puts (NYSE:CFC - News). CFC'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.
Nucor (NYSE:NUE - News). NUE's 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.
Manor Care (NYSE:HCR - News). HCR's PowerRating is 7.
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.
Home Depot (NYSE:HD - News). HD's PowerRating is 5.
PowerRatings are courtesy of www.PowerRatings.net

Labels: BIDU, CFC, GS, HCR, HD, LEH, NUE, stock options

Stocks slid yet again today on increased credit fears and sluggish retail earnings. At the close, the Dow Jones finished down -208 points, marking the fourth-consecutive down day for the index. The tech-laden Nasdaq fell -43 points, while the broader S&P 500 dropped -26 points. Oil rose 76 cents to $72.38 a barrel.
In economic news today, the Labor Department said the Producer Price Index jumped a larger-than-expected 0.6% in July as energy prices led the way with a 2.5% gain. Excluding food and energy prices, core prices rose 0.1%, which was in line with expectations.
Over in the credit markets arena, Sentinel Management Group, a firm that manages $1.6 billion in assets, asked regulators for permission to freeze withdrawals because credit market turmoil has made it impossible to meet investors' needs without liquidating assets at a steep discount.
Earnings report cards came out for two major retailers. The first was the nation's largest home-improvement company, Home Depot (NYSE: HD - News), which reported a -15% drop in second-quarter profit. For the quarter, the company said net income came in at $1.59 billion, or 81 cents a share, down from $1.86 billion, or 90 cents a share, in the year-ago period. Excluding one-time items, EPS was 77 cents, which was down from 82 cents last year but higher than analyst estimates of 72 cents. Sales fell -1.8% to $22.18 billion. Sales at stores open at least a year dropped -5.2%. The stock fell -4.9%.
Wal-Mart (NYSE: WMT - News), the world's largest retailer, posted a lower-than-expected quarterly profit today and lowered Q3 and full-year guidance. The company said second-quarter net income totaled $3.1 billion, or 76 cents a share, up from $2.08 billion, or 50 cents a share, last year. Excluding items, EPS was 72 cents, a full 4 cents lower than what analysts expected. Revenues came in at $93.0 billion, up from $85.4 billion last year. The lower quarterly profit was blamed on "economic pressures around the world." Shares slid -5.1%.
In other news, toymaker Mattel (NYSE: MAT - News) announced this morning that it will be recalling 18.6 million toys made in China after the company warned that children could swallow the magnets in some toys. The toys affected include Polly Pocket and Batman among others. This is the second time in as many months the toy company had to recall toys that were made in China. Shares fell -2.4% on an overall gloomy day for equities.
In more upbeat news, shares of software company VMware (NYSE: VMW - News) debuted today in a hotly awaited IPO, and investors were not disappointed. Shares rocketed out of the gate on their first day of trading, and closed the session up 75.9%. VMware's parent EMC (NYSE: EMC - News) owns an 89% stake in the software company.
By the BullMarket.com Staff

Labels: EMC, HD, MAT, VMW, VMware Inc., WMT