Jim Cramer Blog

On Tuesday's show, Cramer began by analyzing another stock that has been put on sale after Friday's drop in the market. Shaw Group (SGR) had the best earnings of the quarter so far. Cramer thinks this is time to back up the truck and load up on the stock. Cramer still likes infrastructure plays like Shaw, and the earnings make it even more attractive.
Cramer then went to the phonelines. The first caller asked about Aecom (ACM), which Cramer recommended a couple of weeks ago. Cramer said it is still one of his favorites. The next caller asked about uranium prices, which Cramer attributed to production problems, and recommended Mosaic (MOS) as a good uranium play.
Next, Cramer discussed another pick he made based on the book "Microtrends," which Cramer has been plugging for about the past week. He found that the number of people working from home is increasing, which he thinks will be profitable for Cisco (CSCO), since its products will be needed to connect people to the office, including offerings from some companies they have bought out over the past few years.
Another caller asked about the tech sector in general, and Cramer said that he is the only person bullish on tech. The next caller asked why Cramer likes Cisco, and Cramer said he thinks it will be up consistently 15% a year.
Am I Diversified?
first caller asked about five stocks: Amgen (AMGN), Under Armour (UA), PetSmart (PETM), Goldman Sachs (GS) and EMC (EMC), the latter two of which Cramer owns for his charitable trust, Action Alerts PLUS. Cramer said, "That is definite, definite diversification." The second caller named these five plays: IBM (IBM), Bristol-Myers Squibb (BMY), Pfizer (PFE), Disney (DIS) Citigroup (C), which Cramer also owns for his charitable trust.
Mad Mail: The first email thanked Cramer for the show he did on October 19, where he gave his 5 rules for investing. The writer thinks that those tips will save him money in the future. The next email asked why Cramer didn't talk about Dry Ships (DRY) when he did his dry bulk shippers segment. Cramer said that it has gone up so much that he had to pass on it. The next writer invited Cramer to his daughter's Bat Mitzvah because the profits from his stock picks are paying for it, and the last email asked what to do with some Hershey (HSY) stock they own, and Cramer said to sell it any time the stock goes up.

Labels: ACM, AMGN, CSCO, DRYS, EMC, GS, HSY, Jim Cramer, Mad Money, Mad MOney Recap, MOS, SGR

Amerigroup (NYSE:AGP - News) reported that fourth-quarter net income more than doubled to $29.9 million, or 56 cents a share, from $12.9 million, or 25 cents a share, a year earlier. Excluding a pretax gain from net prior period amounts of $13.8 million, or 16 cents a share, earnings were $21.4 million, or 40 cents a share, in the latest fourth quarter. The Virginia Beach, Va., health-care services company said revenue increased 31% to $809.7 million from $620.3 million a year ago. On average, analysts polled by Thomson Financial predicted fourth-quarter earnings of 36 cents a share and revenue of $770.3 million. Analyst estimates typically exclude unusual items. The company also boosted its outlook for 2007 to earnings of $1.85 to $2 per share.

Anheuser-Busch (NYSE:BUD - News) shares rose following a published report that it's held merger talks with Belgian-Brazilian brewer InBev.
Armstrong World Industries (NYSE:AWI - News) said it's initiated a review of its strategic options. It's retained Lazard Freres as its financial advisor and Weil, Gotshal & Manges as its legal advisor in the process.
Avici Systems Inc. (NasdaqGM:AVCI - News) swung to a fourth-quarter net profit of $2.99 million, or 21 cents a share, boosted by strong product revenue growth. In the same period last year, the provider of networking equipment posted a net loss of $8.6 million, or 67 cents a share.
Barnes Group (NYSE:B - News) earned $18.5 million, or 34 cents a share in the fourth quarter, compared to $9.7 million, or 19 cents a share a year ago. Net sales for the period were $328.8 million versus $276.4 million a year ago. Analysts polled by Thomson Financial had expected the firm to earn 29 cents a share in the quarter. Barnes also said it expects full year earnings per share to be $1.53 to $1.60.
BEA Systems Inc. (NasdaqGS:BEAS - News) said it has uncovered instances where stock options granted to its executives and employees were not properly accounted for, and it will have to restate financial results from 1998 through fiscal 2007, and record expenses of $340 million to $390 million.
Beazer Homes USA Inc. (NYSE:BZH - News) said its general counsel, Kenneth J. Gary, was terminated "for a pattern of personal conduct which includes violations of company policies." The disclosure came in a regulatory filing, which did not detail the alleged violations.
Capella Education (NasdaqGM:CPLA - News) said its fourth-quarter net profit rose to $5.7 million, or 39 cents a share, from $3 million, or 25 cents a share. Revenue at the online education services group rose 20.7% to $50.6 million in the quarter. The company said growth was driven by a rise in enrollments, with the number of active learners rising 23% to around 18,000 for the year as a whole. Capella said for 2007 it expects enrollment and revenue to grow 18% to 19%, with operating margins expected to be 10.5% to 11.5% of revenue.
Caterpillar (NYSE:CAT - News) said its board approved a $7.5 billion stock repurchase program. The Peoria, Ill., maker of construction and mining equipment said it expects to complete the buyback within the next five years.
CenturyTel (NYSE:CTL - News) said its fourth-quarter net income fell to $72.2 million from $78.3 million, a year ago. On a per-share basis, earnings increased to 62 cents a share from 59 cents a year ago due to a higher number of shares outstanding in the year-ago quarter. Excluding items, earnings were 68 cents a share for the current quarter. A Thomson Financial survey of analysts, on average, predicted earnings of 64 cents a share for the quarter. Analyst estimates usually exclude items. The Monroe, La., integrated communications company revenue fell 2.1% to $607.7 million from $620.5 million. The company expects first-quarter earnings excluding items of 60 cents to 65 cents a share on revenue of $600 million to $610 million. Analysts forecast earnings of 63 cents a share for the quarter. Centurytel sees 2007 earnings excluding items of $2.60 to $2.70 a share. Wall Street projects earnings of $2.71 a share for the year.
Charles River Labs (NYSE:CRL - News) was upgraded to buy from hold at Jefferies & Co.
Chordiant Software (NasdaqGM:CHRD - News) shares gained after the Cupertino, Calif.-based company reported a fiscal first-quarter net loss of $10.7 million, or 14 cents a share, vs. a net loss of $1.77 million, or 2 cents a share, last year. Excluding certain items, the company posted a loss of $2.7 million, or 3 cents a share. Revenue rose to $22.9 million from $22.6 million. Analysts polled by Thomson Financial were expecting a per-share loss of 2 cents on revenue of $24.7 million. Chordiant raised its fiscal 2007 revenue forecast to a range of $120 million to $125 million.
Credit Suisse (NYSE:CS - News) said its CEO Oswald Grubel has decided to retire May 4. Grubel will be replaced by Brady Dougan, head of the bank's investment banking arm.
Diageo (NYSE:DEO - News) shares advanced after the company was able to lift its operating profit forecast for the year after increasing sales of Scotch whisky and beer to emerging markets and nabbing greater market share in the U.S.
Dobson Communications Corp. (NasdaqGS:DCEL - News) said it swung to a fourth-quarter net profit of $1.74 million, boosted by higher service revenue. In the same period last year, the provider of wireless phone services posted a net loss of $24.9 million.
EnPro Industries (NYSE:NPO - News) reported fourth-quarter earnings before items of $17.6 million, or 81 cents a share, on sales growth of 18%.
FTI Consulting (NYSE:FCN - News) shares gained after the Baltimore-based company posted fourth-quarter net earnings of $17.4 million, or 42 cents a share, down from $18.3 million, or 46 cents a share, in the year-ago period. Revenue in the three months ended Dec. 31 rose to $216.8 million from $165.7 million. Analysts polled by Thomson Financial were expecting a per-share profit of 37 cents on revenue of $194.4 million. FTI expects 2007 earnings of $1.74 to $1.84 a share. Analysts are looking for earnings of $1.76 a share.
Guess Inc. (NYSE:GES - News) blew the doors off earnings expectations by turning in a profit of $45.7 million, or 99 cents a share, a sharp turn from last year's income of $25.8 million, or 57 cents a share. The casual-apparel retailer said revenues surged 25% to $346.4 million.
Gymboree (NasdaqGS:GYMB - News) was initiated with a buy rating at Wedbush Morgan.
Hershey Foods Corp. (NYSE:HSY - News) detailed a three-year plan to change its supply chain operations, saying it expects a total net reduction of about 1,500 jobs. The Hershey, Pa., candy company expects to record pre-tax charges and non-recurring project implementation costs of between $525 million and $575 million from the program over the next three years, primarily in 2007 and 2008. The plan calls for a reduction in the number of production lines in use by more than one-third, the outsourcing of low value-added items and the construction of a production facility in Monterrey, Mexico. When the plan is completed, Hershey said about 80% of its production volume will take place in the U.S. and Canada. The company also reaffirmed its long-term goals for sales growth of 3% to 4% and growth in diluted earnings per share from operations of 9% to 11%. For 2007, however, it said it sees growth in diluted earnings per share from operations of 7% to 9%.

Published By MarketWatch

Labels: AGP, AVCI, AWI, B, BUD, BZH, CAT, CHRD, CPLA, CRL, CS, CTL, DCEL, DEO, FCN, GES, GYMB, HSY, NPO

Here are 7 stocks to watch for today. This list comes directly from the TradingMarkets Stocks Indicators page.
Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
Dow Chemical (NYSE:DOW - News). DOW's PowerRating is 6.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Antworth Mortgage (NYSE:ANH - News). ANH's PowerRating is 6.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term up trends.
KT Corp (NYSE:KTC - News). KTC's PowerRating is 7.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order to qualify as a "Trading Window" candidate, we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average.
International Flavors & Fragrances (NYSE:IFF - News). IFF's PowerRating is 6.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Invitrogen (NYSE:IVGN - News). LFB's PowerRating is 5.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Walgreen (NYSE:WAG - News). WAG's PowerRating is 3.
Short Windows Candidates: These are stocks which are in a strong downtrend, as determined by a proprietary trend filter and whose current bar has its low above the 4-day moving average. Historically, these stock on average have had a larger than normal short-term downside reversals. In order to qualify as a "Trading Window" candidate, the 10-period ADX must be 30 or higher and the -DI must be greater than the +DI. Or we must have a 14-period -DI reading of above 30 (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its low of the day above the 4-period moving average.
The Hershey Company (NYSE:HSY - News). HSY's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: ANH, DOW, Hot Stocks, HSY, IFF, IVGN, KTC, WAG

Movin' on Up: Dolby (NYSE: DLB - News), Mastercard (NYSE: MA - News)
Cramer says that Dolby is still a buy even though it has risen substantially in the past month, and the stock reminds him of Mastercard which has kept going up. He comments that Dolby did not raise its estimates high enough and that it should fetch $1 per share in 2007. Dolby is "a great play on the flat-panel TV upgrade cycle, "and is starting to produce gaming consoles, notes Cramer who also likes that fact that 79% of its revenue comes from licensing which has big margins which should increase as it pursues the video market.
Trading Truce: eBay (NASDAQ: EBAY - News), Google (NASDAQ: GOOG - News), Yahoo (NASDAQ: YHOO - News), Baidu (NASDAQ: BIDU - News)
Although Cramer has been picking on eBay all summer, he finally declares that at $31.30 "it has become the ultimate value stock." First of all, he says that it is cheaper than it should be, it owns PayPal which web Goliath Google has not been successful in supplanting with its own service. Cramer admits that he was too critical of CEO Margaret Whitman, who has been negotiating advertising deals with Yahoo and Google, as well as an agreement with Baidu which will help distribute PayPal in China. In addition, eBay is flush with cash and is implementing buybacks, notes Cramer, who says that while he felt eBay was overpriced in the past, now "not only is it cheap, it's good."
Sell Block: Hershey (NYSE: HSY - News), Sirius Satellite Radio (NASDAQ: SIRI - News), Panera (NASDAQ: PNRA - News), XM Satellite Radio (NASDAQ: XMSR - News), Ford (NYSE: F - News), Smith & Wesson (NASDAQ: SWHC - News) and Bankrate (NASDAQ: RATE - News)
After hearing that Hershey lowered its earnings estimates, Cramer admits that he was wrong about the stock and suggested selling once it reaches $50 from$49.34. He also admitted a mistake in thinking that SIRI doesn't need to merge with XMSR. After SIRI lowered its sales outlook, Cramer thinks that the stock won't go anywhere "except slightly down unless it gets that merger with XM Radio." Yet another company, Panera, reduced its earnings estimates, blaming Midwestern stores. However, since only a small percentage of stores are affected, Cramer suspects that sluggish growth is the real reason for the reduction."It is running out of steam and I was wrong to recommend it. Get rid of it." Ford, which Cramer had recommended, is issuing convertible bonds with a 4% yield. "Now ... the common stock is plain wrong," Cramer said. "If you want to play Ford, then play it with the convertible bond for less-risky exposure." Finally, Cramer suggested taking some SWHC and RATE off the table.

CEO Interview: Sally Smith, Buffalo Wild Wings (NASDAQ: BWLD - News)
Cramer asked Sally Smith if BWLD could maintain its 11.8% company-owned sales growth, and she responded confidently that providing a good dining experience would encourage customers to come back. She added that the company could "absolutely" expand from 400 to 1,000 stores and noted that a new store was opened in Brooklyn, addressing a demand to go national: "We started getting letters from all over the country," she said. "They were craving the sauces and the wings and were wondering when we were going to their towns." Cramer commented on the restaurant chains "multiyear growth plan" and says that if it ever dips "back up the stock and buy some."
By Miriam Metzinger

Labels: BIDU, BWLD, DLB, Ebay, F, GOOG, HSY, Jim Cramer, MA, Mad Money, PNRA, RATE, SIRI, SWHC, XMSR, YHOO

HOME DEPOT INC. (HD.N: Quote, Profile , Research)
The home improvement chain said on Wednesday it had unrecorded expenses of about $200 million from errors tied to stock option grants, but correcting the problem would have no material effect on financial statements. Home Depot shares closed up 55 cents, or 1.4 percent, at $39.92 on the New York Stock Exchange on Wednesday.
ELI LILLY AND CO. (LLY.N: Quote, Profile , Research)
The drugmaker on Thursday reaffirmed it expects its 2006 earnings to rise 8 percent to 12 percent, but projected disappointing profit growth for 2007 even though its revenues will grow at a faster pace next year. Eli Lilly shares closed at $54.86 on the NYSE.
FANNIE MAE (FNM.N: Quote, Profile , Research)
The largest U.S. mortgage-finance company said late on Wednesday it overstated earnings by $6.3 billion from 2001 to mid-2004, a much lower figure than expected.
HERSHEY CO. (HSY.N: Quote, Profile , Research)
The chocolate maker late on Wednesday said it has reduced its earnings expectations for 2006. On Thursday, Goldman Sachs lowered its rating on the stock to neutral. In electronic composite trade after the closing bell, shares of the company slid to $49.70 down from a close of $51.06 on the New York Stock Exchange.
DELIA'S INC. (DLIA.O: Quote, Profile , Research)
The stock jumped more than 9 percent after the bell on Wednesday as the youth apparel retailer posted a sharply higher quarterly profit. The stock rose to $11.55 in electronic trade, up from a close of $10.59 on the Nasdaq.
FLEETWOOD ENTERPRISES INC. (FLE.N: Quote, Profile , Research)
The recreational vehicle maker on Thursday said its quarterly loss had widened tenfold after restructuring charges, including severance payments, and costs from discontinued operations.
Fleetwood shares closed at $7.94 on Wednesday on the NYSE.
LEVEL 3 COMMUNICATIONS INC. (LVLT.O: Quote, Profile , Research)
Jim Cramer recommended the telecommunications service provider on his CNBC program "Mad Money," on Wednesday, saying it is the best stock under $10 a share he knows.
Level 3 shares closed at $5.54 on the NYSE.

Labels: DLIA, FLE, FNM, HD, HSY, LLY, LVLT, Stocks