Jim Cramer Blog

Wednesday's show began with Cramer discussing who he thinks is to blame for the 361 point drop on the Dow. His answers were Supermodel Gisele Bundchen and New York Attorney General Andrew Cuomo. Gisele recently announced that she doesn't want to be paid in dollars any more since it is weak, and then a Chinese official followed up with a statement this morning that they might sell some of their dollar reserves. Cramer doesn't think that this announcement from China is true. Cuomo then announced that he will probe Washington Mutual to see if they forced appraisers to inflate their estimates so they could make loans. Cramer believes that this will scare mortgage lenders and make them require higher down payments, which is the last thing the lenders need.

Cramer then went to the phonelines. The first caller asked about hedging the dollar by investing in international mutual funds, and Cramer said he thinks 20% of your portfolio should be foreign. The second caller asked about Nasdaq (NADQ), and Cramer thinks that CME (CME) and NYSE-Euronext (NYX) are better plays on the increased volatility in the market, but said that he likes Nasdaq as well.

The CEO of NRG Energy (NRG) was on the show since Cramer thinks that nuclear energy is the cleanest way to generate electricity. They talked about the company’s plans for nuclear plants, as well as their other coal based plants.

Cramer came back from the lightning round and talked with Herbalife (HLF) CEO Michael Johnson about the outstanding quarter they just reported as well as allegations of unethical behavior at the company. Johnson said that they do not believe they are guilty of any wrongdoing, and that they will investigate and correct any issues they find. He then talked about their international growth and new sales plans they have.

Cramer then did a follow up on Nastech Pharmaceutical (NSTK), a recommendation he made last week. The stock was down $5 today because Proctor & Gamble (PG) terminated an agreement with them, and Cramer had the CEO, Stephen Quay, on the show to explain why people should not sell the stock. Quay said that they will do a new trial soon and expect to find a new partner after that. Cramer said that you should hold onto it now if you already bought it, but said he will take the blame for a screw-up on this one.

Labels: CME, CNBC, HLF, Jim Cramer, Mad Money, Mad MOney Recap, nadq, NRG, NYX

Align Technology (ALGN): Cramer began his show with a review of a stock that fits into his opinion that vanity plays are good investments. Align makes Invisalign invisible braces. Cramer thinks that the stock will continue to grow, and that it could go up to $38 if his analysis is correct.
Jim then went to the phonelines. The first caller asked about Intuitive Surgical (ISRG), and Cramer said that he would "buy it with abandon" if the stock pulls back. The second caller asked about the laser group LCA Vision (LCAV), and Cramer said that he thinks they are too risky, and that he doesn't trust LCAV at all. Third caller asked about NutriSystem (NTRI), and Cramer said that Herbalife (HLF) is the best stock in that sector.
LKQ (LKQX). Cramer thinks that the stock is a buy because it is the number one supplier in the auto parts market, and he likes that it has a secondary offering, but the stock continued to go up over the offering price. Cramer said this is one of the best tells that he looks for when investing.
After the lightning round Cramer talked about the fact that there is a large market for people with hearing loss, and he thinks that Sonic Innovations (SNCI) is in a position to profit. Cramer thinks that there is some risk when investing in this small company, but he thinks that the stock could go up to $13.
Masimo (MASI) CEO Joe Kiani was on the show. Cramer likes the stock because he thinks it can't be hurt by a lagging economy. Cramer said that this is the type of stock that is not affected by a slowing economy.
Sudden Death: The first caller asked about Home Depot (HD), and Cramer said that he likes Lowe's (LOW) better. The next caller asked about Companhia Vale do Rio Doce (RIO), and Cramer said he likes the stock. The next caller asked about Steve Madden (SHOO), and Cramer said that Phillips-Van Heusen (PVH) is a better stock to own. The last caller asked about Nuance Communications (NUAN), and Cramer said no to the stock.

Labels: ALGN, HLF, ISRG, Jim Cramer, LCAV, LKQX, Mad Money, Mad MOney Recap

Bullish calls:
Penwest Pharmaceuticals (NasdaqGM: PPCO - News): ' ... had no idea that stock had fallen all the way to $12. They have got some great technology ... that's a good spec there. Remember, it is just a speculation though ... they're losing big money and they don't have a lot of revenues either.'Gildan Activewear (NYSE: GIL - News): ' ... it is a momentum name ... But, understand. Even though it's cheap on a multiple basis, it's had a big run. Maybe you buy a little, and then you wait for a little pullback.'GOL Linhas Areas Inteligentes (NYSE: GOL - News): ' ... they stole Varig. It's a Brazilian airline. It's up $4 since we mentioned it at $28-29. That's not enough. The stock's going to $40. $33... pick up $7. That's what I like!'Chesapeake Energy (NYSE: CHK - News): 'Natural gas is back! ... Aubrey McClennan [CEO] is one of the best. I am saying that CHK goes higher!'Fannie Mae (NYSE: FNM - News): 'Now here is a stock I haven't talked about enough ... When the sub-prime loan market went kerplooey... FNM ... decided to buy $20 billion worth of liquidity ... FNM is not expensive, until it gets to $80 a share, and it's at $64.'Celgene (NasdaqGS: CELG - News): ' ... dramatically undervalued on the Revlamid news from the weekend,'Gilead Sciences (NasdaqGS: GILD - News)Fuel Tech (NasdaqGM: FTEK - News): ' ... I thought there was more than a 20% gain there, so I can't tell you to take some off, when I told you there was more to gain ... I'm not bailing. You shouldn't either.'Herbalife (NYSE: HLF - News): 'I became convinced that that company is not just a fly-by-night supplement company, but a company that really has a wellness principle.'Crocs (NasdaqGS: CROX - News) ' I think that CROX is a company that you can own until everyone has decided that every analyst and his brother has recommended.'Genesis Lease (NYSE: GLS - News): 'If you need to be in bundled aircraft, it's Genesis Leasing.'Boeing (NYSE: BA - News): 'If you've got to be in aerospace, it's Boeing.'Tesco (NasdaqGS: TESO - News): 'I have been working like a bow-wow to try to figure out when do we decide to get off the oil service game... and the answer is not yet. This group is still cheap!'Halliburton (NYSE: HAL - News)Input/Output (NYSE: IO - News): 'Seismic data. You know I like that very much. I think IO has been slighted by Mad Money.'Trinity Industries (NYSE: TRN - News): ' ... it's still so darn cheap, I don't think it can hurt you. ... We're under-railcarred in this country.'Marathon Oil (NYSE: MRO - News): 'MRO - even at $128 - is still cheap! Unbelievable! I'm pulling the trigger here for half the position, and then let it come in.'Haynes International (NasdaqGM: HAYN - News): 'I'm staying long it. We liked it 20 points below this.'Merit Medical Systems (NasdaqGS: MMSI - News): 'I'll buy that one too.'Cepheid (NasdaqGM: CPHD - News)Dynegy (NYSE: DYN - News): 'Oh man, down here at $9.50. C'mon let's pull the trigger. Bruce Williamson, CEO. Best in show.'
Bearish calls:
AirTran Holdings (NYSE: AAI - News): 'No can do. I'm only using one airline right now, particularly with oil going up...and that is GOL Linhas.'Mylan Laboratories (NYSE: MYL - News): 'No, can't go there... I think these generic guys have never made me a lot of money.'Usana Health Sciences (NasdaqGS: USNA - News): 'too high risk for me.'JetBlue Airways (NasdaqGS: JBLU - News): 'No! Sell, sell, sell! Another airline that's problematic.'
Published by SeekingAlpha

Labels: BA, CELG, CHK, CROX, FNM, FTEK, GIL, GILD, GLS, GOL, HAL, HLF, IO, Jim Cramer, Lightning Round, MRO, PPCO, TESO, TRN

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

Brocade (NasdaqGS:BRCD - News) reported fiscal first-quarter earnings tripled on 32% higher revenue.

CBS Corp. (NYSE:CBS - News) swung to a fourth-quarter profit from a year-earlier loss, raised its dividend 10% and plans to buy back up to $1.5 billion of stock
CDI Corp. (NYSE:CDI - News) said it earned $6.8 million, or 34 cents a share, in the fourth quarter, up from $3.3 million, or 16 cents a share, in the same period a year ago. The Philadelphia-based staffing company said revenue rose to $321 million from $290.7 million. Analysts polled by Thomson Financial were forecasting earnings of 28 cents a share on revenue of $311.2 million. "A healthy capital spending environment,plus our current pipeline of new business wins, could produce organic revenue growth in the range of 7% to 9% for 2007," CEO Roger Ballou said in a statement. CDI is expecting first-quarter revenue growth of 7% to 9%.
Cogent Inc., (NasdaqGS:COGT - News) the South Pasadena, Calif., provider of fingerprint-biometric services, reported fourth-quarter net income fell 34% as revenue decreased 8.5%.
HealthExtras Inc.'s (NasdaqGS:HLEX - News) fourth-quarter net income rose 94% as the Rockville, Md., pharmacy-benefits-management company's revenue more than doubled to $396.2 million. For 2007, the company sees earnings of $1 to $1.06 a share on revenue of $1.8 billion.
Herbalife Ltd.'s (NYSE:HLF - News) fourth-quarter net income rose 39% on 19% higher sales.
Marvell Technology Group Ltd. (NasdaqGS:MRVL - News) posted preliminary fourth-quarter net revenue of $622 million compared with $489 million during the year-ago period.
RadioShack (NYSE:RSH - News)reported fourth-quarter net income of 62 cents a shae, up from 38 cents in the year-earlier period. Revenue was $1.46 billion compared with $1.67 billion. Analysts surveyed by Thomson Financial had been estimating 43 cents on revenue of $1.47 billion.
Superior Energy Services Inc. (NYSE:SPN - News) fourth-quarter earnings more than tripled as revenue at the Harvey, La.-based provider of oilfield services and equipment rose to $319.1 million vs. $188 million. The year-ago results were hurt by Hurricanes Katrina and Rita.
TNS Inc. (NYSE:TNS - News) swung to a fourth-quarter net loss of 28 cents a share from earnings of 6 cents a share. Excluding charges the loss was 13 cents a share. The Reston, Va.-based provider of the data communications services posted revenue of $74.4 million vs. $65.6 million.

Published By MarketWatch

Labels: BRCD, CBS, CDI, COGT, HLEX, HLF, MRVL, RSH, SPN, TNS

Wall Street was narrowly mixed Monday as lingering concerns about the economy offset better-than-expected sales from Wal-Mart Stores Inc. and a flurry of acquisition activity.
Dow Jones industrial Wal-Mart rose after the world's largest retailer said it expected January same-store sales to rise 2.2 percent. Tempering the gain was its projection that sales performance is on track to deliver the lowest growth rate in more than 25 years.
Meanwhile, Wall Street absorbed news of a spate of acquisition and private equity deals -- the largest amount since the start of the year. Triad Hospitals Inc. and Herbalife Ltd. received offers from private equity funds, while State Street Corp. agreed to buy Investors Financial Services Corp.
Investors had little reaction to new data that suggests continued economic growth, which could disrupt the Federal Reserve's plans to ease the economy this year. The Institute of Supply Management's non-manufacturing index, which covers the service sector, increased more than analysts were forecasting.
The market ended mixed Friday after a weaker-than-expected employment report curbed investors' bullish sentiment following three days of straight gains. Also squeezing stocks was continued strength in oil prices, which flirted with $60 per gallon as a cold snap hit the Northeast.
"We're just going to have a topsy-turvy market until investors figure out which direction to take," said Todd Leone, managing director of equity trading for Cowen & Co. "We're seeing some buying come back into the market because there still is a lot of money on the sidelines. And, all these deals announced are really helping the market out."
In late morning trading, the Dow rose 6.65, or 0.05 percent, to 12,646.84.
Broader stock indicators fell. The Standard & Poor's 500 index was down 1.44, or 0.10 percent, at 1,446.95, and the Nasdaq composite index fell 3.09, or 0.12 percent, to 2,472.79.
Treasuries largely shrugged off the ISM numbers. Bonds rose, with the yield on the benchmark 10-year Treasury note down to 4.80 percent from 4.82 percent late Friday.
A barrel of light sweet crude rose 63 cents to 59.62 on the New York Mercantile Exchange. The dollar was mixed against other major currencies, while gold prices up.
Wal-Mart rose 58 cents to $48.66 after it announced same-store sales topped its prior forecast for a 1 percent to 2 percent gain. The retailer said colder temperatures in January drove sales of seasonal items.
Triad Hospitals agreed to go private in a $4.7 billion deal from affiliates of CCMP Capital Advisors and Goldman Sachs affiliate GS Capital Partners. Shares surged $6.61, or 15.3 percent, to $49.88.
Nutritional supplement maker Herbalife said it received an acquisition proposal from private investment fund Whitney V LP that values the company at about $2.7 billion. The company said it is reviewing the offer, and its shares spiked $7.04, or 21.3 percent, to $40.14.
Billionaire financier Carl Icahn made a $2.43 billion offer for auto parts supplier Lear Corp. Shares jumped $4.34, or 12.5 percent, to $39.01.
State Street shares fell $3.53, or 4.9 percent, to $68.22 after the custody bank said it would buy Investors Financial Services for about $4.5 billion in stock. The deal, which comes as rivals Mellon Financial Corp. and Bank of New York Corp. plan to combine, sent shares of IFS up $13.95, or 29.7 percent, to $60.90.
Advancing issues led decliners by 4 to 3 on the New York Stock Exchange, where volume came to 398 million shares.
The Russell 2000 index of smaller companies was down 1.53, or 0.19 percent, at 807.89. The index surpassed the 800 mark for the first time last week.
Overseas, Japan's Nikkei stock average closed down 1.15 percent. In afternoon trading, Britain's FTSE 100 was up 0.04 percent, Germany's DAX index fell 0.19 percent, and France's CAC-40 was up 0.10 percent.
Published by Joe Bel Bruno, AP Business Writer

Labels: HLF, Hot Stocks, IFIN, LEA, MEL, STT, TRI, WMT

Wall Street was narrowly mixed in early trading Monday as lingering concerns about the economy offset better-than-expected sales from Wal-Mart Stores Inc. and a flurry of acquisition activity.
Dow Jones industrial Wal-Mart rose after the world's largest retailer said it expected January same-store sales to rise 2.2 percent. Tempering the gain was its projection that sales performance is on track to deliver the lowest growth rate in more than 25 years.
Meanwhile, Wall Street absorbed news of a spate of acquisition and private equity deals -- the largest amount since the start of the year. Triad Hospitals Inc. and Herbalife Ltd. received offers from private equity funds, while State Street Corp. agreed to buy Investors Financial Services Corp.
Investors also looked for more hints about the economy. The Institute for Supply Management's January non-manufacturing index, which covers the service sector, will be released at 10 a.m. EST. The market was narrowly mixed Friday after a weaker-than-expected employment report curbed investors' bullish sentiment following three days of straight gains.
Oil prices flirted with $60 per gallon as a cold snap hit the Northeast. A barrel of light sweet crude rose 81 cents to 59.83 in premarket trading on the New York Mercantile Exchange.
In the first hour of trading, the Dow fell 1.60, or 0.01 percent, to 12,651.89.
Broader stock indicators also fell. The Standard & Poor's 500 index was down 0.86, or 0.06 percent, to 1,447.53, and the Nasdaq composite index rose 3.76, or 0.15 percent, to 2,479.64.
Bonds rose, with the yield on the benchmark 10-year Treasury note down to 4.81 percent from 4.82 percent late Friday. The dollar was mixed against other major currencies, while gold prices up.
Wal-Mart shares rose 30 cents to $48.08 after it announced same-store sales topped its prior forecast for a 1 percent to 2 percent gain. The retailer said colder temperatures in January drove sales of seasonal items.
Triad Hospitals agreed to go private in a $4.7 billion deal from affiliates of CCMP Capital Advisors and Goldman Sachs affiliate GS Capital Partners. Shares surged $6.58, or 15.2 percent, to $43.27.
Nutritional supplement maker Herbalife said it received an acquisition proposal from private investment fund Whitney V LP that values the company at about $2.7 billion. The company said it is reviewing the offer, and its shares spiked $6.40, or 19.3 percent, to $39.50.
State Street shares fell $3.60, or 5 percent, to $68.15 after the custody bank said it would buy Investors Financial Services for about $4.5 billion in stock. The deal, which comes as rivals Mellon Financial Corp. and Bank of New York Corp. plan to combine, sent shares of IFS up $14.05, or 29.9 percent, to $61.
The Russell 2000 index of smaller companies was up 0.80, or 0.10 percent, to 810.22.
Overseas, Japan's Nikkei stock average fell 1.15 percent. In afternoon trading, Britain's FTSE 100 was up 0.10 percent, Germany's DAX index fell 0.12 percent, and France's CAC-40 was up 0.13 percent.
Published by Joe Bel Bruno, AP Business Writer

Labels: HLF, Hot Stocks, IFIN, MEL, STT, TRI, WMT

Among the companies whose shares are expected to see active trade in Monday's session are Anadarko Petroleum Corp., Herbalife Ltd. and Hewitt Associates Inc.
Anadarko (NYSE:APC - News) is expected to report earnings per share of $1.26 for the fourth quarter, according to analysts polled by Thomson Financial.
Cognizant Technology Solutions (NasdaqGS:CTSH - News) is expected to post fourth-quarter per-share earnings of 43 cents.
Hewitt Associates (NYSE:HEW - News) is expected to report first-quarter earnings of 24 cents per share.
Humana Inc. (NYSE:HUM - News) is expected to report earnings of 88 cents per share for the fourth quarter.
KLA-Tencor Corp. (NasdaqGS:KLAC - News) is expected to post fourth-quarter per-share income of 61 cents.
Overstock.com Inc. (NasdaqGM:OSTK - News) is expected to report a per-share loss of 85 cents for the fourth quarter.
Pitney Bowes Inc. (NYSE:PBI - News) is expected to post fourth-quarter earnings of 77 cents per share.
Principal Financial Group Inc. (NYSE:PFG - News) is expected to report income of 88 cents per share for the fourth quarter.
Rent-A-Center Inc. (NasdaqGS:RCII - News) is expected to report fourth-quarter earnings of 50 cents per share.
Royal Caribbean Cruises Ltd. (NYSE:RCL - News) is expected to post income per share of 20 cents for the fourth quarter.
After Friday's closing bell, Herbalife (NYSE:HLF - News) said it has received an acquisition offer of $38 a share from Whitney V L.P. and its affiliates. The offer represents a 14.8% premium to the Herbalife's closing share price Friday of $33.10. Watch listBisys Group Inc. (NYSE:BSG - News) filed its Form 10-Q for the period ended Sept. 30, 2006, and reported net income of $14 million, compared with $13.4 million during the year-ago period. Revenue for the first fiscal quarter of 2007 was $211.5 million vs. $205.7 million.
E.On AG (NYSE:EON - News) raised its offer for Spanish Endesa S.A. to 38.75 euros a share ($50.22) from 34.5 euros a share. The final bid values all of Endesa's shares at 41 billion euros.
Hewlett-Packard Co. (NYSE:HPQ - News) said it plans to withdraw the listing of its stock from the Nasdaq Global Select Market to reduce costs of exchange listing fees and administrative burdens related to being listed in two exchanges.
Majesco Entertainment Co. (NasdaqCM:COOL - News) said its financial statements for the fiscal year ended Oct. 31, 2006 contain a going concern modification. According to a Jan. 29 filing, the company's auditors have issued an opinion indicating that there is substantial doubt about the company's ability to continue as a going concern because Majesco has incurred net losses for the years ended Oct. 31, 2005 and 2006.
Mediacom Communications Corp. (NasdaqGS:MCCC - News) said it has reached a retransmission consent agreement with Sinclair Broadcast Group Inc. (NasdaqGS:SBGI - News). Mediacom added that stations will be immediately restored on the Mediacom cable systems in 12 states.
Overstock.com Inc. said it has filed a lawsuit in the Superior Court of California, County of San Francisco seeking damages of $3.48 billion against a group of companies it says control over 80% of the prime brokerage market.
Unitrin Inc. (NYSE:UTR - News) reported fourth-quarter net earnings of $61.6 million, or 91 cents a share, down 29% from $86.7 million, or $1.26 a share, in the year-ago period. Revenue at the Chicago-based financial services company rose to $763.9 million from $755.9 million.
Published by MarketWatch

Labels: APC, BSG, COOL, CTSH, EON, HEW, HLF, Hot Stocks, HPQ, HUM, KLAC, MCCC, OSTK, PBI, PFG, RCII, RCL, SBGI, UTR

Electro Scientific Industries Inc. (NASDAQ:ESIO - News) shares fell 6.5% Friday after the company reported second-quarter net earnings of $3.79 million, or 13 cents a share, compared with $3.19 million, or 11 cents a share, during the year-ago period. The Portland, Ore.-based provider of manufacturing systems to the electronics market posted revenue of $59.3 million vs. $48.6 million. Analysts polled by Thomson First Call had forecast second-quarter earnings of 16 cents a share on revenue of $59 million. Additionally, the company said it expects third-quarter shipments and revenue of $55 million to $65 million, and a gross margin increase of 2 to 3 percentage points from the second quarter.
Global Payments Inc. (NYSE:GPN - News) shares tumbled 16% after the company reported net income of $34 million, or 42 cents a share, for the second quarter ended Nov. 30, up from $30.6 million, or 37 cents, earned during the same period during fiscal 2006. The Atlanta-based provider of electronic transaction processing services generated quarterly revenue of $260.7 million, up 19% from the prior year's $219.7 million. Adjusted to exclude one-time items, the company said earnings were 44 cents a share in the latest quarter, up from 38 cents a year earlier. Analysts, were looking for earnings of 44 cents a share on revenue of $260 million, according to the average estimate compiled by Thomson First Call. In addition, Global Paymemts affirmed its full-year forecast calling for a profit of $1.79 to $1.85 a share, excluding the impact of stock-option expenses. The company also revised its projected revenue range for the year to $1.057 billion to $1.069 billion. The First Call-derived average forecasts for fiscal 2007 stand at $1.87 a share and $1.069 billion, respectively.
Herbalife Ltd. (NYSE:HLF - News) shares plunged 24% after the company forecast fourth-quarter 2006 sales of $482.7 million to $484.7 million, and said it still sees earnings in the range of 52 cents to 55 cents a share, excluding expenses associated with its realignment. For full-year 2007, the company reaffirmed its earnings forecast of $2.40 to $2.47 a share, excluding items. For the first-quarter of 2007, the Los Angeles-based herbal supplement maker forecast earnings of 50 cents to 55 cents a share on sales growth of 6% to 10%.
Lenox Group (NYSE:LNX - News) shares tumbled 37% after the company said Susan Engel, its chairwoman and chief executive, has resigned, effective immediately. In a statement, Engel said she and the board of directors agreed that "this is an appropriate time for the company to bring in an individual with substantial operational expertise and skills that will complement the strengths of the existing management team." Stewart Kasen, lead director of the Lenox board, will assume the role of chairman, while Marc Pfefferle, a partner at Carl Marks Advisory Group, LLC, becomes interim chief executive. Engel said the company's 2006 results will fall short of its expectations, impacted by slower than expected sales and lower than expected margins as it focused on an effort to liquidate excess inventory. Lenox now expects that its 2006 loss from continuing operations, excluding items, will be between 20 cents and 30 cents a share.
Medifast Inc. (NYSE:MED - News) shares lost 6.4% after the company said Bradley MacDonald will transfer his responsibilities as chief executive to Michael McDevitt, the company's president and chief financial officer, on March 1. MacDonald will continue to serve as executive chairman of the Owings Mills, Md.-based weight-loss company. As part of a board-approved succession plan, McDevitt will retain CFO responsibilities and has selected Margaret MacDonald to be president and chief operating officer.
Micrel Inc. (NASDAQ:MCRL - News) shares sank 8.1% after the company cut its outlook for its fiscal fourth quarter ended Dec. 31. Micrel now expects fourth-quarter earnings of 9 cents to 10 cents a share on revenue of $64 million to $65 million. The San Jose, Calif.-based chipmaker had previously forecast earnings of 11 cents to 13 cents a share on revenue of $67 million to $70.5 million. The company said the revenue shortfall is primarily a result of weakness in demand during the last two weeks of December across its end markets. Micrel added that it expects first quarter 2007 revenue to increase sequentially from the fourth quarter of 2006.
Motorola (NYSE:MOT - News) shares dropped 7.8% in heavy trading after the world's No. 2 mobile phone maker cut its fourth-quarter sales and profit forecast as handset prices fell amid fierce competition..
Nokia (NYSE:NOK - News) shares fell 5.3% after the company was downgraded to neutral from outperform at Credit Suisse. The firm said the handset maker's fourth quarter is expected to be weak, with continued average selling price and gross margin pressure. "Given the near term risk, we are issuing a trading sell," the bank added.
Nvidia (NASDAQ:NVDA - News) shares lost 6.3% after the company was downgraded to neutral from buy at American Technology Research, citing valuation.
Openwave Systems (NASDAQ:OPWV - News) shares fell 5.7% after the company forecast a second-quarter per-share loss of 24 cents, or a loss of 8 cents to 9 cents on a pro forma basis, on revenue of $83 million to $84 million. The pro forma loss outlook excludes stock-based compensation expense of 8 cents a share, amortization of acquisition-related costs of 6 cents a share, and restructuring and other expenses of 2 cents a share. The Redwood City, Calif.-based software company also said it has authorized a $100 million share buyback program, scheduled to begin later this month. Additionally, Openwave said it expects third-quarter pro forma earnings to be breakeven on a per-share basis, on revenue of $85 million to $90 million. For the fourth quarter, the company said it expects pro forma earnings to increase slightly from the prior quarter on revenue of revenue of $90 million to $95 million.
PC Connection (NASDAQ:PCCC - News) shares sank 105 after the company was downgraded to underperform from market perform at Raymond James on valuation concerns.
Pinnacle Entertainment (NYSE:PNK - News) shares fell 9.9% after the company said it plans to offer 10 million common shares from a shelf registration. The Las Vegas casino company said it will grant underwriters an option to purchase up to 1.5 million shares. Pinnacle expects to have 58.2 million common shares outstanding after the offer. The company plans to use the proceeds for one or more of its capital projects.
RightNow Technologies Inc. (NASDAQ:RNOW - News) shares fell 8.2% after the company said it expects fourth-quarter results to come in below its previous outlook. The Bozeman, Mont.-based company had previously forecast results in a range of a net loss of 2 cents a share to breakeven. RightNow also said it expects fourth-quarter revenue of $28 million.
UAP Holding Corp. (NASDAQ:UAPH - News) shares lost 7.8% after the company reported a fiscal third-quarter net loss of $13.2 million, or 26 cents a share, compared with a net loss of $9.35 million, or 19 cents a share, in the year-ago period. Revenue at the Greely, Colo.-based distributor of agricultural and non-crop inputs rose 16% to $375.7 million from $323.1 million. UAP revised its fiscal 2007 earnings forecast to a range of $1.15 to $1.25 a share, excluding charges related to the refinancing of debt.
Virage Logic Corp. (NASDAQ:VIRL - News) shares sank 10% after the Fremont, Calif.-based provider of intellectual property for the design of integrated circuits said late Thursday it expects to post a fiscal first-quarter net loss of 3 cents to 8 cents a share on revenue of $11 million to $12 million. In addition, the company announced that Adam Kablanian, a company co-founder, has resigned as president and chief executive effective immediately and will become Virage Logic's chairman. Dan McCranie, previously executive chairman, will become president and CEO effective immediately.
Westaff Inc. (NASDAQ:WSTF - News) shares tumbled 17% after the Walnut Creek, Calif.-based staffing services provider late Thursday reported fourth-quarter net earnings of $2.6 million, or 16 cents a share, down from $18.8 million, or $1.14 a share, in the year-ago period. Last year's fourth quarter included a $16.7 million deferred tax valuation allowance reversal. Revenue in the quarter ended Oct. 28 fell to $196.9 million from $201 million. Westaff said it is experiencing "some softening in domestic revenues" in the first fiscal quarter of 2007 when compared with last year. However, the company said there is "a reasonable chance" its first-quarter net income will improve from a year ago.
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