Jim Cramer Blog

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.

American International Group Dec 70 Calls (NYSE:AIG - News). AIG's PowerRating (for Traders) is 5.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Harrah's Entertainment Jan 90 Puts (NYSE:HET - News). HET's PowerRating (for Traders) is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Apple Jan 230 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating (for Traders) is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Amazon.com Jan 70 Puts (NasdaqGS:AMZN - News). AMZN's PowerRating (for Traders) is 7.
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.
Wind River Systems (NasdaqGS:WIND - News). WIND's PowerRating (for Traders) 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.
Clear Channel Communications (NYSE:CCU - News). CCU's PowerRating (for Traders) is 6.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
NovaStar Financial (NYSE:NFI - News). NFI's PowerRating (for Traders) is 6.

Published By TradingMarkets.com

Labels: AAPL, AIG, AMZN, CCU, HET, NFI, stock options, WIND

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Dean Foods (NYSE:DF - News) reports quarterly earnings on Tuesday before the bell; watch for $0.31 EPS. DF's PowerRating is 5.
El Paso (NYSE:EP - News) should announce $0.23 EPS when the company reports earnings on Tuesday morning. EP's PowerRating is 6.
When Duke Energy (NYSE:DUK - News) announces earnings tomorrow morning, be watching for $0.20 EPS. DUK's PowerRating is 4.
Harrah's (NYSE:HET - News) should report $1.00 EPS on Tuesday before the bell. HET's PowerRating is 6.
Analysts and traders are watching for International Securities Exchange (NYSE:ISE - News) to report $0.45 EPS on Tuesday morning. ISE's PowerRating is 5.
WTI Offshore (NYSE:WTI - News) and Tenet Healthcare (NYSE:THC - News) both report earnings Tuesday morning; WTI expects $0.46 EPS, and THC is looking for -$0.01 EPS. WTI's PowerRating is 6, and THC's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: DF, DUK, EP, HET, Hot Stocks, ISE, THC, WTI

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Scholastic Corporation (NasdaqGS:SCHL - News). SCHL's PowerRating is 6.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Syniverse Holdings (NYSE:SVR - News). SVR's PowerRating is 5.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Guess? (NYSE:GES - News). GES's PowerRating is 7.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
General Motors (NYSE:GM - News). GM's PowerRating is 7.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Harrah's Entertainment (NYSE:HET - News). HET's PowerRating is 6.
Bearish
5+ Consecutive Up Days: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Las Vegas Sands (NYSE:LVS - News). LVS's PowerRating is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Kemet (NYSE:KEM - News). KEM's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: GES, GM, HET, Hot Stocks, KEM, LVS, SCHL, SVR

It's For Real: Herbalife (NYSE: HLF - News)
Cramer regrets having been negative on HLF, which he says is not a typical multi-level marketing scheme and deserves his respect. The company's first quarter earnings were better than expected and delivered in-line, beatable guidance for the second quarter. HLF was granted permission to market its product in two Chinese provinces, has a high-margin business model and "enormous" cash flow. In addition, HLF's $300 million buyback has been approved, and it has a new 2% dividend. The fact that HLF sells at 10% less than its rivals does not make sense to Cramer, who says that situation will not last. Cramer declares HLF is a triple buy, but would not make a move until after the open, because the price higher early.
The Next Foster Wheeler (NasdaqGS: FWLT), with AECOM Technology (NYSE: ACM - News)
FWLT went up beyond Cramer's wildest expectations and now he feels it is time to pick "another Foster Wheeler." Because the tape was "miserable on Friday" the day of its IPO, the stock opened way below the $25 level which Cramer thinks it would be trading now. He considers this low start as an opportunity to buy. ACM has many important contracts, including a rapid transit system at the World Trade Center and plans for the 2012 London Olympics. Cramer says the key metric when it comes to infrastructure is the backlog. Currently, ACM's backlog is up 63%, which means steady sales, according to Cramer. He would buy the stock, but would do some research first.
The "Multiple Expander:" Mark Hurd, CEO of Hewlett-Packard Co. (NYSE: HPQ - News)
Continuing his series on "transformational CEOs," Cramer discussed Mark Hurd, the "multiple expander" of HPQ. Hurd found the company in "total disarray" and helped the stock double in only two years. Recently the company exceeded its earnings estimates and delivered an upside surprise; Cramer gives Hurd the credit.
CEO Interview: Gary Loveman, Harrah's Entertainment (NYSE: HET - News)
Gary Loveman discussed the advantages of going private; management is not distracted on extraneous tasks, but can concentrate on "things that really do build value" in the long term. "The company is being run now to a large degree as if it's private, so I'm living a bit of it now," Loveman said. "It opens up other avenues for value creation." In addition, a company can save and "mature gracefully," whereas if a company is public, it constantly has to worry about the bottom line.
Published by SeekingAlpha

Labels: ACM, FWLT, HET, HLF, HPQ, Jim Cramer, Mad Money

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
j2 Global Communications (NasdaqGS:JCOM) beat earnings on Monday afternoon, announcing $0.35 EPS over an expected $0.32 EPS. JCOM's PowerRating is 4.

Wynn Resorts (NasdaqGS:WYNN) beat earnings on Monday afternoon, with $0.67 EPS over a consensus of $0.54 EPS. WYNN's PowerRating is 6.
Allied Capital (NYSE:ALD) should announce $0.34 EPS on Tuesday morning. ALD's PowerRating is 4.
CVS Corporation (NYSE:CVS) announces earnings on Tuesday before the bell, with analysts looking for $0.45 EPS. CVS's PowerRating is 6.
Duke Energy (NYSE:DUK) is expected to announce $0.30 EPS on Tuesday before the market opens. DUK's PowerRating is 5.
When Tyco (NYSE:TYC) announces earnings on Tuesday morning, watch for $0.47 EPS. TYC's PowerRating is 5.
Analysts are watching for Harrah's Entertainment (NYSE:HET) to report $1.00 EPS before the bell on Tuesday. HET's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: ALD, CVS, DUK, HET, Hot Stocks, JCOM, TYC, WYNN

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Focus Media (NasdaqGM:FMCN - News) beat earnings Monday afternoon, announcing $0.64 EPS over an expected $0.63 EPS. FMCN's PowerRating is 5.
Cogent (NasdaqGS:COGT - News) missed earnings on Monday after the bell; analysts expected $0.15 EPS, but the company announced $0.14 EPS. COGT's PowerRating is 4.
Target (NYSE:TGT - News) announces earnings on Tuesday before the bell, with analysts looking for $1.27 EPS. TGT's PowerRating is 6.
El Paso (NYSE:EP - News) should report $0.19 EPS on Tuesday before the market opens. EP's PowerRating is 6.
When Federated Department Stores (NYSE:FD - News) reports quarterly earnings Tuesday morning, watch for $1.57 EPS. FD's PowerRating is 6.
Analysts are watching for Harrah's Entertainment (NYSE:HET - News) to report $0.65 EPS on Tuesday before the market opens. HET's PowerRating is 6.
Heinz (NYSE:HNZ - News) is looking to report $0.61 EPS tomorrow morning. HNZ's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: COGT, EP, FD, FMCN, HET, HNZ, Hot Stocks, TGT

Bullish calls:
Toyota Motor (NYSE: TM - News): 'This was going to be my stock of the year... It's taking big share from GM and F. I think the stock, ultimately, could go to $200 ... Let's wait until it goes down below $130, and then we pull the trigger.'Spectra Energy (NYSE: SE - News): ' If you got this through the Duke spinoff, I would tell you to keep buying it. I think it's going to be one of the best natural gas distribution stocks out there and those yield a lot and have very, very steady dividend increases (sound of truck doing a 'mon-back).'Kinder Morgan Energy (NYSE: KMP - News): 'Richard Kinder is the smartest man in the oil business.'Cisco (NASDAQ: CSCO - News): ' We are just so solemnly behind CSCO, that we are not going to even think about being in another stock.'Saks (NYSE: SKS - News)Time Warner (NYSE: TWX - News)Hewlett-Packard (NYSE: HPQ - News): 'I want you to buy HPQ.'
Bearish calls:
Yamana Gold (AMEX: AUY - News): ' I happen to think that AUY is the best gold stock but, if I'm right about commodities, gold is about to have a leg down ... only at $10, do you pull the trigger.'Ultra Petroleum (AMEX: UPL - News): 'That house of pain is absolutely going to continue for some time ... I suggest that you take a long-term view, but understand that there could be 15% more downside in UPL.'Deere (NYSE: DE - News): 'Coming down a little. The stock was an unbelievable performer last year ... Let's ring the register. Those who want to be in DE... I may suggest that $85 is where I'd feel comfortable recommending it.'EarthLink (NASDAQ: ELNK - News): ' ... you have to understand, it's really speculative, and that terrific CEO just died of cancer. So the stock has kind of lost its way.'Cleveland Cliffs (NYSE: CLF - News): ' ... the problem here, is that all the mineral stocks are in free fall in America, but CLF has 8% growth. Its stock is just too cheap. If you can wait until the cycle turns - it may be 18 months - you can hold onto CLF. But, if you bought it much lower, ring the register, because it's going to have some downside.'Amylin Pharmaceuticals (NASDAQ: AMLN - News): 'We rang the register at $47 and we said stay away, and I mean stay away. Sell, sell, sell!'AngioDynamics (NASDAQ: ANGO - News): ' ... the news that came out this week ... - is a fantastic opportunity to take profits. I want to distance myself from that speculative stock right now.'Sonus Networks (NASDAQ: SONS - News): 'That's had a good run. Let's take it off the table.'Shanda Interactive (NASDAQ: SNDA - News): 'Don't get me in that cauldron ... I say take the profit. Make the money. I've had enough of it. Sell, sell, sell.'Sun Microsystems (NASDAQ: SUNW - News): ' No, no, no. Sell that. I want you to buy HPQ.'Harrah's Entertainment (NYSE: HET - News): 'You already won. Ring the register. Let's move on. Sell, sell, sell.'MGM Mirage (NYSE: MGM - News): 'Take the win. Sell, sell, sell!'
Published by SeekingAlpha

Labels: AMLN, ANGO, AUY, CLF, CSCO, DE, ELNK, HET, HPQ, KMP, MGM, SE, SKS, SNDA, SONS, SUNW, TM, TWX, UPL

Bullish calls:
Toyota Motor (NYSE: TM - News): 'This was going to be my stock of the year... It's taking big share from GM and F. I think the stock, ultimately, could go to $200 ... Let's wait until it goes down below $130, and then we pull the trigger.'Spectra Energy (NYSE: SE - News): ' If you got this through the Duke spinoff, I would tell you to keep buying it. I think it's going to be one of the best natural gas distribution stocks out there and those yield a lot and have very, very steady dividend increases (sound of truck doing a 'mon-back).'Kinder Morgan Energy (NYSE: KMP - News): 'Richard Kinder is the smartest man in the oil business.'Cisco (NASDAQ: CSCO - News): ' We are just so solemnly behind CSCO, that we are not going to even think about being in another stock.'Saks (NYSE: SKS - News)Time Warner (NYSE: TWX - News)Hewlett-Packard (NYSE: HPQ - News): 'I want you to buy HPQ.'
Bearish calls:
Yamana Gold (AMEX: AUY - News): ' I happen to think that AUY is the best gold stock but, if I'm right about commodities, gold is about to have a leg down ... only at $10, do you pull the trigger.'Ultra Petroleum (AMEX: UPL - News): 'That house of pain is absolutely going to continue for some time ... I suggest that you take a long-term view, but understand that there could be 15% more downside in UPL.'Deere (NYSE: DE - News): 'Coming down a little. The stock was an unbelievable performer last year ... Let's ring the register. Those who want to be in DE... I may suggest that $85 is where I'd feel comfortable recommending it.'EarthLink (NASDAQ: ELNK - News): ' ... you have to understand, it's really speculative, and that terrific CEO just died of cancer. So the stock has kind of lost its way.'Cleveland Cliffs (NYSE: CLF - News): ' ... the problem here, is that all the mineral stocks are in free fall in America, but CLF has 8% growth. Its stock is just too cheap. If you can wait until the cycle turns - it may be 18 months - you can hold onto CLF. But, if you bought it much lower, ring the register, because it's going to have some downside.'Amylin Pharmaceuticals (NASDAQ: AMLN - News): 'We rang the register at $47 and we said stay away, and I mean stay away. Sell, sell, sell!'AngioDynamics (NASDAQ: ANGO - News): ' ... the news that came out this week ... - is a fantastic opportunity to take profits. I want to distance myself from that speculative stock right now.'Sonus Networks (NASDAQ: SONS - News): 'That's had a good run. Let's take it off the table.'Shanda Interactive (NASDAQ: SNDA - News): 'Don't get me in that cauldron ... I say take the profit. Make the money. I've had enough of it. Sell, sell, sell.'Sun Microsystems (NASDAQ: SUNW - News): ' No, no, no. Sell that. I want you to buy HPQ.'Harrah's Entertainment (NYSE: HET - News): 'You already won. Ring the register. Let's move on. Sell, sell, sell.'MGM Mirage (NYSE: MGM - News): 'Take the win. Sell, sell, sell!'

Labels: AMLN, ANGO, AUY, CLF, CSCO, DE, ELNK, HET, HPQ, KMP, Lightning Round, MGM, SE, SKS, SNDA, SONS, SUNW, TM, TWX, UPL

Bullish calls:
Bank of America (NYSE: BAC - News): 'I like the stock very much here ... good yield, nice growth path, is not going to set the world on fire. ... I say buy Bank of America.'Level 3 Communications (NASDAQ: LVLT - News): 'Some people think I run hot and cold. ... I like LVLT. ... I endorse LVLT ... gonna close a deal soon with Broadwing (NASDAQ: BWNG - News). I am going to stay behind that thing with a TripleBuy.'ConAgra (NYSE: CAG - News): ' ... run, don't walk, into ConAgra, which is one that we nailed nine ways to Sunday.'Quest Software (NASDAQ: QSFT - News): 'The jury is still out. ... I like the core business. I want you to stick with it.'ConocoPhillips (NYSE: COP - News)Denny's (NASDAQ: DENN - News): 'For pecking order, I like Denny's, Brinker Darden ... 'Safeway (NYSE: SWY - News): ' I can't get behind a supermarket other than Safeway.'
Bearish calls:
CBOT Holdings (NYSE: BOT - News): 'We don't need to put any more money in those stocks. We are now in the 'don't buy' mode until that deal [with the Chicago Merc] closes.'FedEx (NYSE: FDX - News): 'I've been let down by FedEx. ... I thought you were having an Internet Christmas. ... even stuck my neck out ... We are done recommending FedEx on this show.'Scottish Power (SPI): 'Ring the register. ... Declare victory, nice investing, well done.'Smithfield Foods (NYSE: SFD - News): 'I want you to sell Smithfield Foods.'American Oriental Bioengineering (NYSE: AOB - News): 'Do not buy ... 'Yum! Brands (NYSE: YUM - News): 'Tough situation, obviously, they had that Taco Bell problem ... For pecking order, I like Denny's, Brinker, Darden ... and then, only then, do I like Yum.'Winn-Dixie (NASDAQ: WINN - News): 'Just came out of bankruptcy ... I can't get behind a supermarket other than Safeway.'Skyworks Solutions (SKWS): 'Ixnay on the Skyworksnay.'Harrah's (NYSE: HET - News): 'You just struck it rich! You go out and you ring the register!'
Published By SeekingAlpha

Labels: AOB, BAC, BOT, BWNG, CAG, COP, DENN, FDX, HET, Jim Cramer, Lightning Round, LVLT, Mad Money, QSFT, SFD, SWY, WINN, YUM

Bullish calls:
Bank of America (NYSE: BAC - News): 'I like the stock very much here ... good yield, nice growth path, is not going to set the world on fire. ... I say buy Bank of America.'Level 3 Communications (NASDAQ: LVLT - News): 'Some people think I run hot and cold. ... I like LVLT. ... I endorse LVLT ... gonna close a deal soon with Broadwing (NASDAQ: BWNG - News). I am going to stay behind that thing with a TripleBuy.'ConAgra (NYSE: CAG - News): ' ... run, don't walk, into ConAgra, which is one that we nailed nine ways to Sunday.'Quest Software (NASDAQ: QSFT - News): 'The jury is still out. ... I like the core business. I want you to stick with it.'ConocoPhillips (NYSE: COP - News)Denny's (NASDAQ: DENN - News): 'For pecking order, I like Denny's, Brinker Darden ... 'Safeway (NYSE: SWY - News): ' I can't get behind a supermarket other than Safeway.'
Bearish calls:
CBOT Holdings (NYSE: BOT - News): 'We don't need to put any more money in those stocks. We are now in the 'don't buy' mode until that deal [with the Chicago Merc] closes.'FedEx (NYSE: FDX - News): 'I've been let down by FedEx. ... I thought you were having an Internet Christmas. ... even stuck my neck out ... We are done recommending FedEx on this show.'Scottish Power (SPI): 'Ring the register. ... Declare victory, nice investing, well done.'Smithfield Foods (NYSE: SFD - News): 'I want you to sell Smithfield Foods.'American Oriental Bioengineering (NYSE: AOB - News): 'Do not buy ... 'Yum! Brands (NYSE: YUM - News): 'Tough situation, obviously, they had that Taco Bell problem ... For pecking order, I like Denny's, Brinker, Darden ... and then, only then, do I like Yum.'Winn-Dixie (NASDAQ: WINN - News): 'Just came out of bankruptcy ... I can't get behind a supermarket other than Safeway.'Skyworks Solutions (SKWS): 'Ixnay on the Skyworksnay.'Harrah's (NYSE: HET - News): 'You just struck it rich! You go out and you ring the register!'
Published By SeekingAlpha

Labels: AOB, BAC, BOT, BWNG, CAG, COP, DENN, FDX, HET, Jim Cramer, Lightning Round, LVLT, Mad Money, QSFT, SFD, SWY, WINN, YUM

Arcelor Mittal, (NYSE:MT - News) said Wednesday it's buying Mexico's Sicartsa from Grupo Villacero for $1.44 billion. It's also entered into a 50-50 joint venture with Villacero to distribute Arcelor Mittal's long products in Mexico and the southwestern U.S.
BCE Inc. (NYSE:BCE - News) was upgraded to buy from neutral by Merrill Lynch, which said said the Canadian telecommunications company is pushing its price leadership strategy further and faster than it had expected. The broker told clients this should help offset continuing strong cable phone inroads. Merrill added that while it sees substantial risk that Industry Canada will set aside wireless spectrum for new entrants, it sees offsetting upside, not widely acknowledged, if BCE and Telus Corp. were to integrate their wireless networks in the future.
Bowne & Co. (NYSE:BNE - News) said it's agreed to buy St Ives Financial, a financial printing company, from St Ives . Though Bowne didn't reveal terms, St Ives in its own statement said it will receive $8 million in cash for the business that lost 1.5 million pounds ($2.9 million) in the year ending July 28.
BRE Properties Inc., (NYSE:BRE - News) a real estate investment trust focusing on apartment communities, sees 2007 per-share profit of $1.05 to $1.20 and funds from operations of $2.55 to $2.70.
CarMax Inc. (NYSE:KMX - News) said third-quarter net income rose to $45.4 million, or 42 cents a share, from $22.9 million, or 22 cents a share. Earnings for the third quarter of both years included share-based compensation costs of 3 cents a share, and earnings for the prior year's third quarter included a benefit of 3 cents a share from favorable auto finance items. Net sales rose to $1.77 billion from $1.42 billion. Same-store used unit sales rose 13% in the quarter. Analysts, on average, expected it to earn 25 cents a share on revenue of $1.63 billion, according to Thomson First Call. For the fiscal year ending February 28, 2007, CarMax now expects same-store used unit sales performance in the range of 8% to 9% and raised its earnings per share to a range of $1.75 to $1.85 from $1.55 to $1.65 a share. Analysts polled by Thomson First Call expect it to earn $1.64 a share for the year, on average.
Christopher & Banks Corp. (NYSE:CBK - News) reported third-quarter net income of 24 cents a share, matching both the year-earlier result and analysts' expectations.
Cooper Tire & Rubber Co. (NYSE:CTB - News) named Roy Armes president, chief executive and a director. Armes succeeds Byron Pond, who has served as interim CEO since August.
Darden Restaurants' (NYSE:DRI - News) fiscal second-quarter profit rose 12%, buoyed by restaurant openings and lower expenses at its Olive Garden chain.
Ferro Corp. (NYSE:FOE - News) filed its third-quarter report and became current on its Securities and Exchange Commission filings. Profit for the period fell to $5.5 million, or 12 cents a share, from $6.9 million, or 15 cents, in the year-earlier period.
Ford Motor (NYSE:F - News) was upgraded by KeyBanc to hold from sell, the automaker's second analyst upgrade in as many days. Analyst Brett Hoselton said that while fundamentals aren't expected to show any meaningful improvement in 2007, the earnings deterioration should begin to taper off. Hoselton thinks the implementation of cost cuts, capacity rationalization actions and production cuts will help reduce excessive inventory levels resulting from slowing demand. Meanwhile, he believes Ford's new financing plan will raise borrowing costs and hurt results at its financial services business. As a result, Hoselton increased his 2006 loss estimate to $1.26 a share from 99 cents, and raised his 2007 loss forecast to $1.29 a share from 60 cents.
FPL Group Inc.'s (NYSE:FPL - News) FPL Energy will purchase the Point Beach Nuclear plant in Two Rivers, Wis., its fuel and associated inventories for around $1 billion from Wisconsin Energy Corp.'s (NYSE:WEC - News) Wisconsin Electric Power Co. unit. The companies also entered a long-term agreement under which FPL Energy will sell 100% of the output of Point Beach to Wisconsin Electric Power.
Harrah's Entertainment Inc. (NYSE:HET - News) agreed to be bought by a pair of private equity groups for $90 a share in cash plus assumption of $10.7 billion in debt.
Honeywell (NYSE:HON - News) was upgraded to buy from above average by Caris & Co, which said the company's operating plan through 2008 reflects strong trends for air travel, safety, security, and energy needs. The driving force for demand in Honeywell's aerospace and automation and controls units "will remain well in place in 2008 (and beyond), as commercial aircraft and [business jet] builds continue to advance, flying hours continue to grow, US residential construction revives and non-residential growth extends."
Hydril Co. (NASDAQ:HYDL - News) the maker of oil and gas drilling products, sees fourth-quarter per-share earnings of about $1.05 or higher, above its prior view.
Innovo Group Inc. (NASDAQ:INNO - News) said it has closed around $3.6 million of new equity financing through a private placement. The company said it sold 6.8 million shares at 53 cents a share in the placement, along with warrants to purchase an additional 2.1 million shares at an exercise price of 58 cents a share.
Jack in the Box, (NYSE:JBX - News) expects to accept for purchase 2.3 million, or 6.5%, of its common shares at $61 each under a Dutch-auction tender offer. The company will lay out $142.5 million for the shares.
John H. Harland Company (NYSE:JH - News) agreed to be acquired by M&F Worldwide Corp. (NYSE:MFW - News) for $1.7 billion, or $52.75 a share in cash. The merger is expected to close in the second half of 2007. M&F Worldwide is 38% owned by MacAndrews & Forbes, a company controlled by financier Ron Perelman. M&F Worldwide owns two operating companies, Mafco Worldwide, a maker of licorice products, and Clarke American, a provider of checks, check-related products and direct marketing. Decatur, Ga.-based John H. Harland is a sells printed products and software and related services to the financial institution market, including banks, credit unions, thrifts, brokerage houses and financial software companies.
Kosan Biosciences Inc. (NASDAQ:KOSN - News) announced a license agreement with pharmaceutical giant Pfizer Inc. (NYSE:PFE - News) for its motilin agonist program.
Maxim Integrated Products Inc. (NASDAQ:MXIM - News) said John Gifford, founder and chief executive, will retire for health reasons. Gifford will remain part-time as an adviser.
National City Corp. (NYSE:NCC - News) will buy back as many as 30 million common shares, subject to a limit of $1.2 billion.
NexCen Brands Inc., (NASDAQ:NEXC - News) the New York brand-acquisition and -management company, definitively agreed to acquire the designer-apparel company Bill Blass Holding Co. for $54.6 million plus as much as $16.2 million additional based on the company meeting business targets.
Nordson Corp. (NASDAQ:NDSN - News) fourth-quarter net income was about flat with the year-earlier period. Profit per share rose to 82 cents from 80 cents as shares outstanding fell 2.6%.
Redback Networks (NASDAQ:RBAK - News) agreed to be acquired by Ericsson (NASDAQ:ERIC - News) for $2.1 billion in cash.
Smart Modular Technologies Inc. (NASDAQ:SMOD - News) first-quarter net income rose to 3 cents a share from 17 cents in the year-earlier period. Analysts had expected 21 cents.
Systemax Inc. (NYSE:SYX - News) third-quarter net income tripled from the year-earlier period, to 33 cents a share.
Telus (NYSE:TU - News) was upgraded to buy from neutral by Merrill Lynch, which said concerns over heavy wireline spending and wireless competition are now more than reflected in the share price. The broker told clients that management has trimmed wireless subscriber guidance for 2006, acknowledging increased pressure from discount brands. "We suspect this situation will lead Telus to respond with sharper pricing or promotions but we see no long-term value impairment," Merrill concluded.
Tupperware Brands Corp. (NYSE:TUP - News) named Simon Hemus president and chief operating officer.
WebMethods (NASDAQ:WEBM - News) named Ken Sexton as its chief financial officer, effective Jan. 2. Sexton replaces Mark Wabschall, who announced his plans to retire in September.
-Marketwatch

Labels: BCE, BNE, BRE, CBK, CTB, DRI, F, FOE, FPL, HET, HON, HYDL, INNO, JBX, JH, MFW, MT, RBAK, WEBM, WEC

A rise in wholesale prices, combined with mixed reports from the housing industry, initially sparked selling on the stock market, but it didn't last and a rebound in the afternoon brought the major indices to a mixed close. The Dow Jones Industrial Average and S&P 500 indices posted increases, but the Nasdaq composite failed to keep pace. Treasury prices took the opposite course, rising during the morning session as traders chewed on the economic reports before fading in the afternoon. Crude oil prices also swung higher on expectations the Energy Department will report that U.S. crude inventories fell last week.
Investors were at first spooked by the Producer Price Index, a key inflation measure, which rose 2% in November, the Labor Department reported. The increase was 4x higher than the 0.5% increase economists were expecting. The core rate, excluding food and energy, rose 1.3%. The result was in contrast to last week's consumer price report, which was flat during the same period in large measure due to lower energy costs. That didn't carry over to the PPI, however, as energy prices at the wholesale level were up about 6%, the government said.
New data from the housing industry showed that new home construction increased by 6.7% in November, even while applications for permits to build new homes fell for the 10th consecutive month. The stocks of homebuilders also slumped after Hovnanian Enterprises (NYSE: HOV - News) reported a quarterly loss on Monday evening. The New Jersey-based builder reported a FQ4 loss of -$118 million, or -$1.88 per share, against last year's profit of $165 million, or $2.53 per share. Revenue in the quarter ended October 31st was $1.7 billion, down from $1.8 billion last year. The company booked impairment charges and land-use write-offs totaling -$315 million in the quarter. The company confessed to being surprised by how rapidly home prices had dropped during the year.
Morgan Stanley (NYSE: MS - News) moved higher after the company announced a 26% operating profit increase and said it would spin off its Discover credit card business. The investment bank's net income declined to $2.2 billion, or $2.08 a share, from $2.5 billion, or $2.32 per share, a year ago due to a $700 million gain last year from the sale of its aircraft leasing business. Discover is the nation's fourth-largest credit card brand.
Elsewhere on the earnings front, electronics retailer Circuit City (NYSE: CC - News) sank after the company reported an unexpected loss in F3Q ended November 30th. The stock shed -16% after Circuit City said a "fierce" market-share battle for TVs and other high-profile gadgets resulted in a net loss of -$16 million, or -9 cents a share, compared with a profit of $10 million, or 6 cents per share, a year ago. Last week, rival Best Buy (NYSE: BBY - News) reported a lower-than-expected profit. Best Buy also declined, losing -2% today, while Radio Shack (NYSE: RSH - News) was off -2%.
In merger news, Harrah's Entertainment (NYSE: HET - News) announced that it has agreed to sell itself to a private equity group for $17 billion, plus the assumption of about $11 billion in debt. Apollo Management and Texas Pacific Group agreed to pay $90 a share for the casino operator. The two private equity firms first bid $81 a share about two months ago. Shareholders of pan-European stock exchange Euronext approved a merger proposal from the NYSE Group (NYSE: NYX - News), which clears the way for the creation of the world's first trans-Atlantic stock market. The London Stock Exchange, meanwhile, urged its stockholders to reject a hostile bid from the Nasdaq Stock Market (Nasdaq: NDAQ - News). Management forecasted a 58% profit gain for 2006 if it remained independent, as it campaigned against the Nasdaq offer, which it again called "inadequate." Investors responded by sinking the suitor -5% in today's
By the BullMarket.com Staff

Labels: BBY, CC, HET, HOV, MS, NDAQ, NYX, RSH

Harrah's Entertainment Inc., the world's largest casino company, has agreed to a $90 per share buyout offer from two private equity groups, said a person with knowledge of the negotiations.
The agreement with Apollo Management Group and Texas Pacific Group came late last week but lawyers for both sides have been working out the details, said the person, who spoke on condition of anonymity because of the sensitivity of the talks.
An official announcement on the deal could come as early as Tuesday, the person said Monday.
A Harrah's spokesman declined to comment.
The deal values Harrah's at $16.7 billion and represents a 36 percent premium over Harrah's share price on Sept. 29, the last trading day before Apollo first proposed a buyout Oct. 2. Apollo and Texas Pacific also will assume $10.7 billion in debt.

Labels: Harrah's Entertainment Inc., HET

BCE Inc. (NYSE:BCE - News) said it was selling its satellite services subsidiary, Telesat Canada, in a deal valued at C$3.42 billion (US$2.96 billion). The acquirer is a company formed by Loral Space & Communications and Canada's Public Sector Pension Investment Board. Loral and PSP said as part of the deal, they will acquire the stock of Telesat Canada for C$3.25 billion (US$2.8 billion), plus the assumption of C$172 million (US$148 million) in debt.
BioSante Pharmaceuticals (AMEX:BPA - News) shares soared on news that federal regulators had approved its menopause treatment Bio-E-Gel.
Caremark Rx Inc. (NYSE:CMX - News) shares rose after the company received a $26 billion cash-and-stock buyout offer from Express Scripts Inc. (NASDAQ:ESRX - News) in an effort to break up the company's takeover deal with drug chain CVS Corp. (NYSE:CVS - News).
CenturyTel Inc. (NYSE:CTL - News) shares rose the company said it'll pay $830 million in cash and debt to buy Madison River Communications Corp., a provider of rural telephone and broadband services. The acquisition is expected to close in the second quarter of 2007.
Citigroup (NYSE:C - News) shares rose after Merrill Lynch upgraded the banking giant to buy from hold. Merrill cited several positive factors including revenue growth from an abating yield curve in 2007; Citi's "unparalleled" international presence; and less deal risk than its peers.
ConocoPhillips said Monday it signed an agreement to buy 376 ConocoPhillips fueling stations in six Eurpoean countries. Financial terms weren't disclosed. Conoco said it is selling 156 stations in Belgium, 49 in Finland, 44 in the Czech Republic, 30 in Hungary, 83 in Poland, and 14 in the Slovak Republic. The stations will be renamed Lukoil stations from Jet stations. ConocoPhillips also said it plans to increase its stake in Lukoil to 20% by the end of the year, as part of a strategic alliance unveiled in 2004.
ElkCorp (NYSE:ELK - News) shares surged after the company said it was being acquired in a deal valued at $1 billion by private equity firm the Carlyle Group. As part of the deal, Carlyle will pay $38 for each ElkCorp share outstanding, which represents a 6% premium to Friday's closing price of $35.85. The deal to buy the Dallas roofing company also includes the assumption of $173 million in debt. Separately, Carlyle is partnering with Hood Companies and its subsidiary Atlas Roofing Corp. When the acquisition of ElkCorp is completed, which is expected to be in the first quarter of 2007, Carlyle plans to merge ElkCorp and Atlas.
Exelixis Inc. (NASDAQ:EXEL - News) said it agreed to collaborate with Bristol-Myers (NYSE:BMY - News) on discovery, development and commercialization of cancer treatments. Under the collaboration, Exelixis will use its drug discovery platform and will identify and be responsible for pre-clinical development of small molecule drug candidates. Bristol- Myers will have the right to select up to three Investigational New Drug (INDs) candidates against three different targets and will lead all global activities, although the parties will co-develop and co-commercialize the programs in the U.S. Bristol-Myers will pay to Exelixis an upfront payment of $60 million in cash, and Exelixis will also receive $20 million for each of up to three different drug candidates selected by Bristol-Myers.
Harrah's Entertainment (NYSE:HET - News) is on the verge of being sold for at least $90 a share to two private-equity firms, Apollo Management and Texas Pacific Group, the online edition of The Wall Street Journal reported Sunday.
Icos Corp. (NASDAQ:ICOS - News) shares rose after Eli Lilly and Co. (NYSE:LLY - News) said it raised its offer price for Icos $34 a share, or about $2.3 billion, up from the original offer price of $32 a share. "We are confident that ICOS shareholders will recognize the substantial value and the certainty that Lilly is offering," said Sidney Taurel, Lilly chairman and chief executive.
Joy Global Inc. (NASDAQ:JOYG - News) said fourth-quarter net income rose to $85 million, or 71 cents a share, from $56 million, or 45 cents, a year earlier. The average earnings estimate of eight analysts surveyed by Thomson First Call was 66 cents a share. The Milwaukee mining technology company said sales for the three months ended Oct. 28 rose 21% to $689.3 million from $568.2 million.
MGM Mirage (NYSE:MGM - News) shares rose after the company and the Mashantucket Pequot Tribal Nation said Monday they inked a pact to build a new MGM Grand hotel/casino resort adjacent to Foxwoods Resort Casino. The new $700 million MGM Grand at Foxwoods is expected to open in the spring of 2008. The two entities will also develop additional gaming and non-gaming projects, both at Mashantucket and outside of Connecticut. They have formed a jointly owned company, Unity Gaming LLC, to acquire or develop gaming and non-gaming enterprises, including Indian and non-Indian gaming, throughout the United States and abroad.
Realogy (NYSE:H - News) shares jumped after private-equity group Apollo Investment agreed to buy the real-estate brokerage group for about $6.6 billion.
Refco Inc. (Other OTC:RFXCQ.PK - News), the derivatives broker that collapsed in scandal last year, said its Chapter 11 plan was confirmed by a New York bankruptcy court, clearing the way for its businesses to be finally shut down and creditors repaid a portion of what they were owed.
SanDisk Corp. (NASDAQ:SNDK - News) said its board authorized the repurchase of up to $300 million of common shares over the next two years. SanDisk, Milpitas, Calif., is a supplier of flash storage card products. Under the program, share purchases will be made from time to time in the open market.
Shares of Shaw Group Inc. (NYSE:SGR - News) surged on news over the weekend that the company, in a joint venture with Westinghouse Electric Co., had landed a contract to build four nuclear power plants in China. The deal, which still needs to hammer out final details, is reportedly worth just over $5 billion.
Smith & Nephew PLC (NYSE:SNN - News) said it canceled its merger negotiations with Biomet Inc. (NASDAQ:BMET - News). Earlier Monday, Biomet unveiled an agreement to be acquired for $10.9 billion by a private equity group that includes Blackstone Group, Goldman Sachs Capital Partners and Kohlberg Kravis Roberts.
Smith & Wesson Corp. (NASDAQ:SWHC - News) said it was buying privately-held firearms maker Thompson/Center Arms for $102 million in cash. The deal, which is expected to close in January 2007, is expected to add 1 cent per share to 2007 earnings. The Springfield, Mass. firearms maker said it now expects 2007 earnings, which will include a 10-cents-a-share charge as a result of the deal, to be 27 cents a share. Previously, the company had estimated 2007 earnings, prior to the acquisition charge, of 36 cents a share. For 2008, the company raised its earnings forecast to 60 cents a share from 52 cents.
Statoil (NYSE:NHY - News) said it would buy the oil and natural-gas division of Norsk Hydro, creating the world's largest offshore operator. Holders of Statoil get 67.3% of the new company while Norsk Hydro holders get the rest. Norsk Hydro will continue to operate as an independent aluminum producer.
Weight Watchers (NYSE:WTW - News) said it has launched a self-tender offer for up to 8.3 million shares of its common stock. The New York weight management services company said it would pay between $47 and $54 for each share.
Zila Inc. (NASDAQ:ZILA - News) said Chief Financial Officer Andrew Stevens has resigned to pursue other opportunities. The Phoenix pharmaceutical company said Vice President and Treasurer Diane Klein will assume Stevens' responsibilities until a new CFO is hired.

Labels: BCE, BMET, BMY, BPA, C, CMX, CTL, CVS, ELK, ESRX, EXEL, H. SNDK, HET, ICOS, JOYG, LLY, MGM, NHY, WTW, ZILA

Stocks see modest gains on what has been another merger Monday. The Dow ($INDU) has moved to another all-time high, but the gains are mild for the major market indices. Merger activity shows that there is cash on the sidelines and when one company is on the block, it raises talk of several others that could be sold as well. Shares of Norsk Hydro (NHY) are up nearly 20 percent Monday after Statoil (STO) agreed to buy the company’s oil and natural-gas division. This deal will create the world’s largest offshore operator. Shares of STO are down 2.5 percent on the news. Shares of Harrah’s Entertainment (HET) are higher by three percent Monday. The Wall Street Journal reported over the weekend that the company is about to be purchased for no less than $90 a share by two private equity groups. The stock is currently trading just below $82 a share. In other merger news, Biomet (BMET