Jim Cramer Blog

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

Ambac (NYSE:ABK - News) was upgraded to overweight from equal-weight at Morgan Stanley
Andersons Inc. (NASDAQ:ANDE - News) was upgraded to buy from neutral at Banc of America Securities. The firm also lifted its price target on the stock to $52 from $44.
Bear Stearns (NYSE:BSC - News) said its fourth quarter net income rose 38% to a record $562.8 million, or $4 a share on total revenue of $4.47 billion. A year ago, the company earned $407 million, or $2.90 a share, on $3.18 billion total revenue. Analysts polled by Thomson Financial, on average, expected the company to earn $3.36 a share on revenue of $2.20 billion.
Cadence Design Systems (NASDAQ:CDNS - News) priced offerings of senior convertible notes worth a total of $500 million. The company said the initial conversion rate for both the 2011 notes and the 2013 notes is 47.2813 common shares per $1,000 in principal amount of notes for a conversion price of about $21.15.
Carrizo Oil & Co. (NASDAQ:CRZO - News) was initiated with an outperform rating at RBC Capital Markets.
Ciena Corp. (NASDAQ:CIEN - News) reported fiscal fourth-quarter earnings of $13.1 million, or 14 cents a share, up from a year-ago loss of $252.9 million, or $3.06 a share. Last year's results included a total charge of $222.3 million related to impairment of goodwill and long-lived assets. On an adjusted basis, excluding items, the Linthicum, Md., maker of optical networking products earned $14.6 million, or 16 cents a share, in the latest quarter. Revenue rose 35.3% in the three months ended Oct. 31 to $160 million from $118.2 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 13 cents a share in the October period on revenue of $160 million. Looking ahead, Ciena said it expects low single-digit revenue growth in the first quarter on a sequential basis.
Costco Wholesale (NASDAQ:COST - News), the Issaquah, Wash., warehouse retailer, reported fiscal first-quarter net income rose 9.8% on 9.4% higher revenue. For the 12 weeks ended Nov. 26, Costco profit rose to $236.9 million, or 51 cents a share, from $215.8 million, or 45 cents, in the year-earlier period. Revenue reached $14.15 billion from $12.93 billion. Net sales rose 9% to $13.85 billion. Same-store sales -- revenue from stores open at least a year, eliminating the effects of acquisitions and divestitures -- rose 4%. A survey of analysts by Thomson First Call produced consensus estimates of 50 cents of profit on $14.06 billion of sales for Costco. The retailer also said it would take a second-quarter charge of $45 million as it increased the exercise price on certain stock options for more than 1,000 employees who are U.S. taxpayers. It said that it's making the changes in line with its internal stock-option inquiry and with a Nov. 30 ruling by the U.S. Internal Revenue Service. The company also said it would make payment to the employees to reduce the adverse tax effects of the move.
Cousins Properties Inc. (NYSE:CUZ - News) was upgraded to overweight from equal-weight at Lehman Bros. The firm also lifted its price target on the stock to $38 from $35.
Empire Resources (AMEX:ERS - News) said its board has declared a special dividend of 16 cents a share for the fourth quarter, in addition to its regular quarterly payout of 5 cents a share. The dividends are to be paid on Jan. 17 to shareholders of record on Dec. 29. The Fort Lee, N.J., distributor of semi-finished aluminum products also said its board plans to review its internal dividend policy on a quarterly basis.
First Potomac (NYSE:FPO - News) was upgraded to buy from neutral at Merrill Lynch.
Ford Motor (NYSE:F - News) was upgraded to neutral from sell at Merrill Lynch, which said the automaker's efforts to raise liquidity have been more successful than previously expected. Analyst John Murphy believes the next move by Ford's chief executive Alan Mulally will be to unveil a new operating plan at the Detroit auto show in mid-January. "It is tough to believe that a turnaround can be affected in short order, but clarity on Mulally's plan could be viewed positively by the market," Murphy said in a research note. "Furthermore, Ford's new liquidity position may allow it to be tougher or more creative in the course of negotiating a contract with the United Auto Workers in 2007."
GenVec (NASDAQ:GNVC - News) shares leapt after the Gaithersburg, Md.-based biopharmaceutical company said an independent data safety monitoring board has completed its interim analysis of safety data from the ongoing Phase II/III clinical trial with TNFerade in locally advanced pancreatic cancer. The DSMB recommended that the trial continue, GenVec said, and also supported the use of endoscopic ultrasonography as an alternative to percutaneous tumor administration. GenVec said it has provided its interim safety data to the Food and Drug Administration and is waiting for final clearance to move forward with EUS administration.
Great Wolf Resorts (NASDAQ:WOLF - News) was upgraded to buy from hold at A.G. Edwards.
Honeywell International (NYSE:HON - News) said it expects earnings of $2.85 to $2.95 a share for fiscal 2007, a performance that would represent growth of between 13% and 17%. It sees sales growing about 5% to $32.6 billion for 2007. The Morris Township, N.J., diversified technology and manufacturing products company sees 2007 cash flow from operations of between $3.2 billion and $3.4 billion for the year with free cash flow projected between $2.4 billion and $2.6 billion. The current average estimate of analysts polled by Thomson First Call is for earnings of $2.93 a share in fiscal 2007 on revenue of $32.75 billion. The Dow component also confirmed an outlook for earnings of $2.51 to $2.53 a share in fiscal 2006 on sales of roughly $31.2 billion. Wall Street's current consensus estimate for 2006 is for earnings of $2.52 a share on revenue of $31.15 billion.
Icos (NASDAQ:ICOS - News) issued a 2006 and 2007 financial forecast early Thursday, ahead of a planned December 19 special shareholders meeting where stockholders will vote on whether to accept partner Eli Lilly's takeover offer of $32 a share in cash. For the fourth quarter 2006, Icos sees earnings of 17 to 22 cents a share, with full-year earnings of 33 to 38 cents a share. Including taxes, Icos expects fourth quarter results of 26 to 34 cents a share, and 49 to 57 cents for the full year 2006. For 2007, Icos is expecting earnings per share of 78 to 94 cents a share. Including taxes, the 2007 range is earnings per share of $1.17 to $1.41. Icos and Lilly co-market the erectile dysfunction drug Cialis.
Insmed (NASDAQ:INSM - News) shares surged after the biopharmaceutical company said recent study results confirm that Iplex, a treatment for growth failure, allows more flexibility in handling and administration for patients and caregivers.
Input/Output Inc. (NYSE:IO - News) said it's received a contract to provide 14 of its land seismic imaging systems to Oil and Natural Gas Corp. Ltd., India's national oil company. The company said the deal is worth more than $50 million.
Journal Register Co. (NYSE:JRC - News) agreed to sign on to Google's Print Ad program, which allows current Google advertisers to buy ads in print newspapers. Journal Register said its flagship newspaper, the New Haven (Conn.) Register, will participate in the partnership. Financial terms were not disclosed. More than 50 major newspapers are currently a part of the Google program, including the New York Times, the Boston Globe, the Washington Post and the Seattle Times. Newspapers are seeking ways to increase print ad revenue, which has been on the decline for several years as more readers turn to the Internet for news and information, and several traditional newspaper advertisers have fallen on hard times.
Liberty Media Holding Corp. (NASDAQ:LCAPA - News) was upgraded to buy from hold at Deutsche Bank Securities.
LodgeNet Entertainment Corp. (NASDAQ:LNET - News) agreed with Liberty Media to purchase Ascent Entertainment Group Inc., which owns On Command Corp., for $380 million. The purchase will be paid at closing by issuing 2.05 million LodgeNet shares, and $332 million in cash.
Microsoft Corp. (NASDAQ:MSFT - News) and Hewlett-Packard (NYSE:HPQ - News) said they have entered a 3-year agreement to sell technology products and services. The companies said they would invest at least $300 million to cover their collaborative efforts.
Nuance Communications (NASDAQ:NUAN - News) was initiated with a buy rating at Citigroup Investment Research.
Pacer International (NASDAQ:PACR - News) was initiated with a buy rating at Key Banc Capital Markets.
PGT Inc. (NASDAQ:PGTI - News) was upgraded to buy from neutral at SunTrust Robinson Humphrey. The firm cited valuation.
Stanley Works (NYSE:SWK - News) agreed to acquire HSM Electronic Protection Services, a provider of security alarm monitoring services based in Lisle, Ill., for $545 million. Stanley expects the deal to close in early 2007. It anticipates the transaction will be neutral to earnings in 2007 before adding 20 to 25 cents a share to earnings by 2009, the third year, and 35 to 35 cents a share to earnings by 2011, the fifth year.
Suntech Power Holdings (NYSE:STP - News) was initiated with a buy rating at Jefferies & Co.
Supervalu (NYSE:SVU - News) said it now expects fiscal 2007 per-share earnings of $2.32 to $2.43, up from its previous range of $2.18 to $2.41. The Minneapolis-based supermarket operator also narrowed its 2007 pro forma view, saying it sees per-share earnings of $2.66 to $2.74. The previous pro forma earnings view was $2.62 to $2.80 a share for the year.
Thermo Fisher Scientific (NYSE:TMO - News) estimated fourth-quarter adjusted earnings at 52 cents to 54 cents a share and increased its estimates of adjusted earnings for 2006 and 2007. A survey of analysts by Thomson First Call produced a consensus estimate of 53 cents for the quarter. For 2006, Thermo Fisher expects to earn an adjusted $1.83 to $1.86 a share on revenue of $8.8 billion. Thermo Electron and Fisher Scientific merged early in November; the revenue estimate is pro forma, as if the two companies had been combined for the full year. First Call projects earnings of $1.81 for 2006. In 2007, the company expects to earn $2.35 to $2.45 a share, compared with its previous estimate of $2.27 to $2.37.
Topps Co. (NASDAQ:TOPP - News) was initiated with a buy rating at Morgan Joseph & Co. The firm set a price target on the stock of $11.
Shares in Worthington Industries (NYSE:WOR - News) jumped after Prudential Equity Group released a note late Wednesday speculating that the Columbus, Ohio-based steel processor would be a likely target for No. 1 steel maker Mittal Steel (NYSE:MT - News), the main subsidiary of Arcelor Mittal . Prudential analyst John Tumazos noted Mittal has made public statements indicating an interest in owning steel distribution assets in the U.S. Worthington "would effectively satisfy MT's requirements," said Tumazos, adding he had no inside information about any deal.
-MarketWatch

Labels: ABK, ANDE, BSC, CDNS, CIEN, COST, CRZO, CUZ, ERS, F, FPO, GNVC, HON, ICOS, INSM, IO, JRC, SVU, TMO, WOLF

Eli Lilly and Co. (LLY.N: Quote, Profile, Research) forecast profit gains next year below its expected 2006 growth of 8 percent to 12 percent, held back by higher costs. Indianapolis-based Lilly, whose shares slipped 51 cents to $54.45 in morning trading, provided the forecasts at a meeting in New York with hundreds of Wall Street analysts to describe its pipeline of experimental products. Lilly, which makes schizophrenia treatment Zyprexa and anti-impotence drug Cialis, said it is counting on steady introduction of new drugs to keep earnings growing. Lilly said it continues to expect a 2006 profit of between $3.10 to $3.20 per share, excluding special items. It projected 2007 earnings of $3.25 to $3.35 per share, including the estimated 10 cent per share dilutive impact of Lilly's planned $2.1 billion acquisition of biotechnology company ICOS Corp (ICOS.O: Quote, Profile, Research). From 2008 to 2010, Lilly said it expects earnings-per share growth in the "high single to low double digits" percentage range. Reuters Estimates had projected escalating double digit growth in 2008, 2009 and 2010. Company revenue in 2006 will grow about 7 percent, but will expand in the high-single or low-double-digit range next year, Lilly said. The accelerating sales growth next year will be fueled by new drugs and by Lilly's ownership of Cialis once the drugmaker completes its planned purchase of ICOS, with which it now co-markets the long-acting impotence treatment, Lilly said. Lilly's most important experimental drug is prasugrel -- a compound to prevent blood clots that has shown advantages in clinical trials over Bristol-Myers Squibb's (BMY.N: Quote, Profile, Research) widely used Plavix. It hopes to complete late-stage trials of the medicine next year.
Source: Reuters.com

Labels: BMY, Bristol Myers Squibb, Eli Lilly, ICOS, ICOS Corp., LLY

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Vertex Pharmaceuticals Inc. (NASDAQ:VRTX - News) Jan 55.0. VRTX's PowerRating is 5.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Apple Computer Inc. (NASDAQ:AAPL - News) Dec 90.0. AAPL's PowerRating is 4.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Petroleo Brasileiro Petrobras (NYSE:PBR - News) Jan 95.0. PBR's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Research In Motion (NASDAQ:RIMM - News) Jan 120.0. RIMM's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
ICOS Corp. (NASDAQ:ICOS - News). ICOS's PowerRating is 6.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggestsan extraordinarily negative earnings report, or other news which may negatively affect the stock.
Delta Petroleum Corp. (NASDAQ:DPTR - News). DPTR's PowerRating is 2.
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.
Palm Inc. (NASDAQ:PALM - News). PALM's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: AAPL, DPTR, ICOS, PALM, PBR, RIMM