Jim Cramer Blog

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

Word on the Street

Bad news from Boeing (BA) and Honeywell (HON) helped the bears. DaimlerChrysler (DAI) was hit with bad news Wednesday as the United Auto Workers are striking. Macke doesn't think the strike will impact the auto supply stocks and favors Johnson Controls (JCI) and American Axle (AXL). Seymour recommends Magna (MGA).

Dennis Gartman

Gartman says the Fed isn't concerned about inflation and will continue to cut rates. He would be a buyer on weakness in gold and sell short the U.S. dollar. He would accomplish this via the streetTRACKS Gold Trust (GLD). Seymour is still concerned about inflation.

Stents

Wednesday night news broke that the FDA advisory panel is backing drug-coated stents made by Medtronic (MDT). CNBC's Mike Huckman recommends investors look at SurModics (SRDX), Abbott Labs (ABT), Novartis (NVS) and Wyeth (WYE). Lawsuit risk keeps Najarian from being a fan of the stent market. He would rather be in Myriad Genetics (MYGN). Medical device maker Zimmer (ZMH) saw huge options activity Wednesday.

Pops & Drops

Pops-Nokia (NOK) traded up 1%. Najarian

Akamai (AKAM) traded up 4% after being upgraded.

Google (GOOG) traded up 2%. Seymour claims the beat goes on with Google.

Drops- Alcoa (AA) fell 3% after earnings disappointed.

PetSmart (PETM) fell 4% after lowering profit forecasts.

Turkcell (TKC) dropped 5%.

I-Robot (IRBT) fell 8% after reporting a loss.

TempurPedic International (TPX) fell 7% after bearish analyst comments.

Final Trade

Jon Najarian: Google (GOOG) is going to trade to $700 before the end of the year.

Pete Najarian favors ValueClick (VCLK).

Seymour: ConocoPhillips (COP) for its European exposure.

Finerman: Tyco Electronics (TEL).

Macke: Merck (MRK).

Labels: BA, CNBC, DAI, Fast Money, Fast Money Recap, GLD, HON, JCI, MGA

Bullish calls:
Caterpillar (NYSE: CAT - News): 'I wish I hadn't talked about it, so I could have bought more... I urge you to buy that. I see an upside surprise.'Level 3 Communications (NasdaqGS: LVLT - News): 'We caught it at $3. It went to $6. It's pulled back. I don't know when the (bandwidth) shortage is going to flash, 'Shortage! Shortage! Shortage!,' but when it does, you can't wait and then buy it! You have to keep it now.'Allscripts Healthcare Solutions (NasdaqGS: MDRX - News): 'Hey, anything that does healthcare cost containment like Medco Health is just fantastic in this market. It's a triple buy!'Cheesecake Factory (NasdaqGS: CAKE - News): ' ... they have to put up more stores. I think it's a decent buy right here. It's come down a lot. Let's pull the trigger on some CAKE... even though the bears would say that no one is ever going to have cheesecake, because they can't afford it anymore...'Johnson Controls (NYSE: JCI - News): ' ... the lead just killed them! I think the lead price is coming down... I think JCI is going back up. I like the stock. This is a classic example of what you should be buying right now...'Amylin Pharmaceuticals (NasdaqGS: AMLN - News): 'I think biotech is precisely right going into the fall. AMLN is good ... new position. I have not liked that stock... 'Amgen (NasdaqGS: AMGN - News): 'Amgen is good...'Ladish (NasdaqGM: LDSH - News): 'I think that LDSH is a great buy, but the one thing I'd caution... How many stocks can say this?... 52-week high... but again, jet engines. That's a keeper.'Woodward Governor (NasdaqGS: WGOV - News)Sun Microsystems (NasdaqGS: SUNW - News): 'Unbelievable quarter ... This is a company I have hated for a decade! I got bullish on it about a quarter ago ... Don't run from SUNW. Run to it! Buy, buy, buy!'Ryerson (NYSE: RYI - News)Reliance Steel (NYSE: RS - News): ' ... as good as RYI is, Reliance Steel is even better!'Google (NasdaqGS: GOOG - News): ' GOOG's done going down. The bears are going to be trapped ... I think GOOG's going back to its high ... No one thinks that except for me... Buy, buy, buy!'Continental Resources (NYSE: CLR - News): 'I think you can stick with CLR.'XTO Energy (NYSE: XTO - News): 'I am sticking with, and buying for my charitable trust, XTO Energy, which is now the cheapest oil and gas company in the world!'
Bearish calls:
Whirlpool (NYSE: WHR - News): 'That was a bad quarter ... It wasn't saved by Brazil. I've got to give you a don't buy.'
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Labels: AMGN, AMLN, CAKE, CAT, CLR, GOOG, JCI, Jim Cramer, LDSH, Lightning Round, LVLT, Mad Money, MDRX, RS, RYI, SUNW, WGOV, WHR, XTO

Predator and Prey: BASF (NYSE: BF - News) and Nova Chemicals (NYSE: NCX - News)
Cramer continued his series on European stocks with BASF, the biggest chemical company in the world, and a stock he likes because "...it has nothing to do with the United States. " While chemical companies have been attractive takeovers, Cramer thinks of BASF as a predator rather than the prey and doesn't expect it to get a bid. However, as long as chemical companies are in bull mode, Cramer says BASF will thrive with its secure earnings. It is also linked to two other bull markets: agriculture and natural gas and oil. He predicts BASF will rise from $136 to $150. Cramer likes NCX as a good "prey" play since Access founder Len Blavatnik is trying to build a global chemcial company and is looking for acquisitions like NCX with strong fundamentals. Cramer thinks NCX could be bought at $56.
Sell Block: Blackstone Group (NYSE: BX - News), Google (NasdaqGS: GOOG - News), Johnson Controls (NYSE: JCI - News), Washington Mutual (NYSE: WM - News), Goldman Sachs (NYSE: GS - News)
Cramer hopes people listened when he said they should get out of BX, but he suggests he may have been a hog with Google, which missed its quarter. He added a caveat; "Please don't buy the first trading day the week after I recommend a stock," he said. "You have to wait for weakness" and if the stock is high "take a pass." He identifies JCI as one of his picks for which investors should have taken a pass. However, Cramer still thinks JCI is an anointed stock with some upside. Cramer would leave the financials in Rumorville, since they have been vulnerable to Street Gossip, even WM. Concerning his golden pick, GS, Cramer says it hasn't bottomed yet and he would only recommend investors who can take the pain stay in GS.
CEO Interview: James Young Union Pacific (NYSE: UNP - News) with CSX (NYSE: CSX - News)
James Young commented on how overcapacity in the industry is getting lighter, and is responsible, along with congested traffic, for the stock's rise. Cramer said UNP is not going to stop rising at $125 and also gives CSX two thumbs up.
Published By SeekingAlpha

Labels: BF, BX, CSX, GOOG, JCI, Jim Cramer, Mad Money, NCX, UNP, WM

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Goldman Sachs Aug 240 Calls (NYSE:GS - News). GS' PowerRating is 6.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Google Inc. Aug 520 Puts (NasdaqGS:GOOG - News). GOOG'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.
Mastercard Inc. Aug 200 Calls (NYSE:MA - News). MA's PowerRating is 4.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Baidu.com Aug 175 Puts (NasdaqGS:BIDU - News). BIDU's PowerRating is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Johnson Controls Inc. (NYSE:JCI - News). JCI's PowerRating is 4.
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.
MBIA Inc. (NYSE:MBI - News). MBI's PowerRating is 5.
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.
EnCana Corp. (NYSE:ECA - News). ECA's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: BIDU, ECA, GOOG, GS, JCI, MA, MBI, stock options

Next Week's Game Plan: Coke (NYSE: KO - News), Intel (NasdaqGS: INTC - News), United Technologies (NYSE: UTX - News), Freeport McMoRan Copper & Gold (NYSE: FCX - News), Honeywell (NYSE: HON - News), Johnson Controls (NYSE: JCI - News), Caterpillar (NYSE: CAT - News), Schlumberger (NYSE: SLB - News), Merrill Lynch (NYSE: MER - News), Wells Fargo (NYSE: WFC - News), JPMorgan Chase (NYSE: JPM - News), Bank of America (NYSE: BAC - News) and Citigroup (NYSE: C - News)
Cramer expects better-than-expected earnings from the following companies, and would buy before their reports next week: KO, INTC, UTX, FCX, HON, JCI, CAT and SLB. Since banks are "on a mission to show that there is no slowdown" and are likely to raise their dividends and buy back stock, Cramer would buy MER, WFC, JPM, BAC and C prior to their earnings reports.
That 80s Show: Boeing (NYSE: BA - News), Caterpillar (NYSE: CAT - News), ConocoPhillips (NYSE: COP - News), Energizer (NYSE: ENR - News), Air Products & Chemicals (NYSE: APD - News), Apache (NYSE: APA - News), Terex (NYSE: TEX - News)
"I've discovered alchemy," declared Cramer, noting the six stocks (BA, CAT, COP, ENR, APD and APA) he has discussed this week in connection with his theory (that stocks at $80 go to $100 and then to $120) are up an average of 5.2%. On Friday, Cramer added TEX to the list, since it is around $80 and will benefit from the "wild bull market" of infrastructure and machinery. He doesn't regard CAT as a rival, since "Terex's bread and butter is in aerial work platforms" which are not produced by CAT. He is not worried about competition from Manitowoc in the crane business.
Incredibly Risky Play: GeoEye (NasdaqGM: GEOY - News)
Cramer recommended GEOY as an "incredibly risky play" which is not for IRA money, but could have a major upside. Although it is the biggest commerical satellite company, GEOY has yet to make a profit. However, Cramer thinks outsourcing demands and Google Earth might make this company profitable, not to mention its main competitor is not a publicly traded stock. According to Cramer, the stock could double on the successful commission of a new satellite. However, the date has been deferred once, and if the satellite does not go up when expected, GEOY "could get hammered." While he urges caution, Cramer says GEOY is a great speculative stock.

Published By SeekingAlpha

Labels: APD, BA, BAC, CAT, COP, ENR, FCX, HON, INTC, JCI, Jim Cramer, JPM, KO, Mad Money, MER, SLB, TEX, UTX, WFC

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
USANA Health Sciences July 45 Calls (NasdaqGS:USNA). USNA's PowerRating is 4.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Research In Motion June 160 Puts (NasdaqGS:RIMM). RIMM's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Google Inc. July 550 Calls (NasdaqGS:GOOG). GOOG's PowerRating is 3.
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.
Chicago Mercantile Exchange June 520 Puts (NYSE:CME). CME'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.
Johnson Controls (NYSE:JCI). JCI's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Utilities Select Sector SPDR (AMEX:XLU) . XLU's PowerRating 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.
China Life Insurance Co. (NYSE:LFC). LFC's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: CME, GOOG, JCI, LFC, RIMM, stock options, USNA, XLU

General Motors (NYSE: GM - News) and Ford (NYSE: F - News): Cramer is skeptical about GM comments that subprime problems were to blame for the company's lackluster performance when other sectors such as retail have reported great numbers; "I mean, we did go up 15 out of 16 days, despite the fact that we were torching our houses to get the money from Allstate." He added although Ford is a turnaround story, there is not yet tangible evidence.
Barclays' (NYSE: BCS - News), Fifth Third (NasdaqGS: FITB), Comerica (NYSE: CMA - News), SunTrust (NYSE: STI - News), America (NYSE: BAC - News): On Barclay's offer for ABN Amro, Cramer would buy FITB, CMA, and STI here, but comments BAC has acquisition addiciton; "There is no 12-step program for what BAC is doing... They would have to hit bottom. They have to hit banking skid row."
AstraZeneca (NYSE: AZN - News) Medimmune (NasdaqGS: MEDI), Celgene (NasdaqGS: CELG), Cephalon (NasdaqGS: CEPH), Johnson Controls (NYSE: JCI - News), Cummins (NYSE: CMI - News): Cramer called AZN's acquisition of MEDI a "classic overpay" and may make CELG and CEPH seem undervalued. As time was running out, Cramer said, "I like coal! Johnson Controls ... Cummins $9!"
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Labels: AZN, BAC, BCS, CEPH, CMA, CMI, GM, JCI, Jim Cramer, Jim Cramer's Stop Trading, MEDI, STI

Daimler Chrysler (NYSE: DCX - News), Toyota (NYSE: TM - News), Ford (NYSE: F - News), General Motors (NYSE: GM - News), Johnson Controls (NYSE: JCI - News), Lear (NYSE: LEA - News), Applebee's (NasdaqGS: APPB), Chipotle Mexican Grill (NYSE: CMG - News)
Cramer told Gregg Greenberg, host of Wall Street Confidential, that he was flabbergasted by the media's negative spin on Fed chairman Ben Bernanke's remarks: "Our short rates are way, way too high and totally out of whack," Cramer said. "It is driving me crazy to see the conventional wisdom reading him negatively. There will be a cut in May." Concerning the deep cuts at DCX, Cramer comments that many companies can't make cars profitably to meet the high demand, that DCX's move to join Ford and GM in focusing on profits rather than market share is "remarkable" and notes that the three, along with TM are "flying." However, Cramer thinks it is wiser to get into auto parts, and he sees JCI reaching above $100 and Lear to $41 or $42. "Applebee's is the kind of deal that will cause a backlash," says Cramer and does not think the restuaurant should put itself up for sale.; "The cash flow can be turned off on a dime here. I really don't like this deal." He adds that he does like Chipotle Mexican Grill.

Published By SeekingAlpha

Labels: APPB, CMG, DCX, F, GM, JCI, Jim Cramer, LEA, TM, Wall Street Confidential

Bullish calls:
Schlumberger (NYSE: SLB - News): 'I'm steering people toward SLB.'Transocean (NYSE: RIG - News): ' ... that's the cheapest international driller, now that SLB has run so much. That's a better buy.'Companhia Vale do Rio Doce (NYSE: RIO - News)Allegheny Technologies (NYSE: ATI - News)Wachovia (NYSE: WB - News): 'This is a 4% yielder with decent growth. Good quarter today. You know I like the regional banks. I say it's okay. I prefer BNS.'Bank of Nova Scotia (NYSE: BNS - News): ' I prefer BNS [to WB].'Ford (NYSE: F - News)Marvell Technology (NASDAQ: MRVL - News): 'I am going to recommend - even at the price of perhaps a shortfall near term - MRVL. I think that's one down and 10 up. That's my gift to you.'Charles Schwab (SCHW): 'SCHW's good. ETFC's good. AMTD's good. They all trade more expensively, though, than the full-service brokers.'Ameritrade (NASDAQ: AMTD - News)E*Trade (NASDAQ: ETFC - News)Goldman Sachs (NYSE: GS - News): 'I have been recommending GS. The stock's been down for two days and, you know what? (motions to back up the truck for a 'mon-back) - even that short of time, and I want to buy GS, because I'm using a $300 price target and it's one of my stock picks of the year - my value stock pick...'Johnson Controls (NYSE: JCI - News)Adobe Systems (NASDAQ: ADBE - News): 'I think ADBE is unfairly being brought down. I think ADBE is right here ... I'd like to buy this one for my charitable trust. That's how great I think it is down here ... It's a triple buy. Buy, buy, buy! ... I want you to stay with it.'@Road (NASDAQ: ARDI - News): ' Good speculative play on the net. I like it, I'll endorse it.'Darden Restaurants (NYSE: DRI - News): 'Yes! That's a well-run company!'
Bearish calls:
Talisman Energy (NYSE: TLM - News): 'I don't want to be in TLM. I want to be in RIG.'Zoltek (NASDAQ: ZOLT - News): ' I don't like ZOLT. I think it's played out. We recommended it on this show at $12. When it doubled, we took our profits. And I'm not going back. I do not want to own ZOLT.'Syntax-Brillian (NASDAQ: BRLC - News): 'No can do, my friend. That's like hamburger helper. I'd rather go for the real thing; I'd rather go for the filet mignon [MRVL].'Fuel-Tech (NASDAQ: FTEK - News): 'I like pollution control stories somewhat ... I'm concerned that this is one of those 'State of the Union' plays, where it drops down tomorrow, so let's take profits today.'Visteon (VC)SAIC (NYSE: SAI - News): 'There is a sense that the consulting companies that report to the government for military purposes aren't doing well ... I think that SAI - which I liked a little too much, I now say - is just 'don't buy, don't buy' ... New position for me - new negativity.'Evergreen Solar (NASDAQ: ESLR - News): 'Another one of these (bear)... I am not going to countenance any of these solar plays with energy going down!'Baker Hughes (NYSE: BHI - News): 'BHI has a decent product portfolio, but RIG* is the name of the game ... because it's an international driller. 'Complete Production Services (NYSE: CPX - News): 'No, we're going to RIG.'
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Labels: ADBE, AMTD, ARDI, ATI, BNS, BRLC, DRI, ETFC, F, GS, JCI, Jim Cramer, Mad Money, MRVL, RIG, RIO, SLB, TLM, WB, ZOLT

Kimberly-Clark (NYSE: KMB - News)
Cramer discussed Prudential's upgrade of consumer products, and picked KMB as his favorite stock in the sector, because KMB had been planning for oil to be at $70 in 2007, and with oil prices falling, the company is a buy. He prefers consumer goods to tech noting that investors sell these stocks as soon as they make money, since they know it is time to "bolt from tech."
Eaton (NYSE: ETN - News), Johnson Controls (NYSE: JCI - News), Bank of America (NYSE: BAC - News)
Task pointed out that Eaton was hurting cyclicals and Cramer annointed JCI as a "sainted cyclical" which is a good stock to own "If you want a cyclical and you don't want it to have anything to do with trucks." Cramer doesn't consider the stock a real cyclical because of its air conditioning component. Concerning the Fed, Cramer doesn't think that it will cut interest rates until there is a drop in year-over-year commodity prices. Cramer is critical of bears who don't see that there can be growth without a lot of inflation, and predicts that there will be a temporary slump until mid-year when the Fed will cut rates, and that there will be a resulting upturn until the end of the year. Because the market is "heading into a valley," Cramer says that tech is too hard to own right now, but that stocks like KMB and BAC are not too difficult.
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Labels: BAC, ETN, JCI, Jim Cramer, KMB

AdvancersAircastle Ltd. (NYSE:AYR - News) agreed to acquire 38 aircraft from certain units of Guggenheim Aviation Investment Fund LP for about $1.595 billion. The company said it plans to finance the purchase with common equity and debt financing. It expects the aircraft to be bought in a series of closings between this month and February of 2009. It anticipates closing on the purchase of 28 of the 38 aircraft in 2007. Aircastle also said it's boosted the capacity of its senior secured warehouse facility to $1.25 billion and its senior secured revolving credit facility to $450 million.
A.O. Smith Corp. (NYSE:AOS - News), a manufacturer or water-heating equipment, said fourth-quarter net income rose 18% to $18.9 million, or 61 cents a share, from $16 million, or 52 cents a share, a year earlier, partly helped by lower tax costs. Earnings from continuing operations came in at 62 cents a share compared to 52 cents a share. Sales climbed 25% to $543.6 million. The company sees 2007 earnings in the range of $2.75 to $2.85 a share.
Arotech (NASDAQ:ARTX - News) shares rose after the company said its Simulation and Training unit recently received more than $2.8 million in contract awards for weapon simulation products.
Shares of AT&T (NYSE:T - News) edged higher after Merrill Lynch upgraded the telecommunications services company to buy from neutral, citing the belief that the revenue environment for the company, and the telecommunications industry in general, is improving, which should also boost valuations. Analyst David Janazzo raised his earnings estimate for 2007 to $2.65 a share from $2.60 and for 2008 to $3 a share from $2.89, and his average revenue per unit growth forecast for its Cingular wireless unit to 1% from zero.
Avalon Pharmaceuticals (NASDAQ:AVRX - News) said it's reached terms to raise about $10 million through a private placement. The company has agreed to sell three million common shares for $3.34 each to institutional investors.
Bebe Stores (NASDAQ:BEBE - News) was upgraded to outperform from neutral at Cowen & Co. The firm cited valuation for the move.
Career Education Corp. (NASDAQ:CECO - News) shares rose after the Hoffman Estates, Ill.-based company said it has been notified by the Department of Education that it has lifted restrictions imposed in June of 2005 that had "prevented the company from domestic acquisitions of schools and had restricted its ability to open additional domestic campuses." "We will be carefully and selectively evaluating other expansion opportunities and look forward to pursuing those opportunities in cooperation with the department," said Robert Dowdell, interim chairman and chief executive, in a statement.
Chelsea Therapeutics (NASDAQ:CHTP - News) said it's received orphan drug designation for Droxidopa, its candidate for the treatment of symptomatic neurogenic orthostatic hypotension in patients with primary autonomic failure, from the Food and Drug Administration. The company plans to conduct a phase III trial of Droxidopa in the U.S. and Europe in the second half of 2007.
E-Future Information Technology (NASDAQ:EFUT - News) shares jumped after the Beijing-based software company announced a new contract with Johnson & Johnson (NYSE:JNJ - News) to provide supply chain management software in China. Financial terms weren't disclosed.
ElkCorp (NYSE:ELK - News) said the Carlyle Group has lifted its tender offer to acquire the company to $42 per share in cash from a prior proposal of $40.50 per share. The parties have amended their merger agreement to reflect the higher tender offer, which began on Jan. 18 and will expire on Feb. 14. ElkCorp said the $42 per share offer is worth a total of roughly $1.1 billion, including the assumption of about $173 million in debt.
Futuremedia plc (NASDAQ:FMDAD - News) shares jumped after the company regained compliance with the listing requirements for the Nasdaq exchange.
Halliburton (NYSE:HAL - News) agreed to acquire Ultraline Services Corp. from Energy Services Corp. for $177 million. Halliburton, based in Houston, said Ultraline provides wireline services in Canada. The transaction is expected to close in the first quarter, subject to regulatory approvals.
Hanger Orthopedic (NYSE:HGR - News) shares leapt after the company was upgraded to overweight at Lehman Bros.
Hoku Scientific (NASDAQ:HOKU - News) shares soared after the company said its materials unit has signed a deal to pay up to 21 million euros to Graeber Engineering Consultants and MSA Appartus Construction for polysilicon reactors. Hoku said the deal is for the purchase and sale of hydrogen reduction reactors and hydrogenation reactors used in the production of polysilicon, and related engineering and installation services.
Hospira (NYSE:HSP - News) was upgraded to buy from neutral at Merrill Lynch.
IPG Photonics Corp. (NASDAQ:IPGP - News) rose as a number of analyst firms began coverage of the company. Lehman Bros. started with an equal-weight rating and a $25 price target, Needham & Co. began with a buy rating and a $30 price target, Merrill Lynch opened up with a buy rating and $32 price target, and Thomas Weisel Partners started its coverage at overweight.
Johnson Controls' (NYSE:JCI - News) shares got a lift after Banc of America Securities lifted its price target on the stock to $110 from $91.
Kohlberg Capital Corp. (NASDAQ:KCAP - News) was initiated with an overweight rating at Lehman Bros. The firm set a $20 price target on the stock. Stifel Nicolaus also started coverage of the company with a buy rating and a $19 price target.
Lodgian Inc. (AMEX:LGN - News) has hired Goldman Sachs and Genesis Capital LLC to explore "strategic alternatives" for the hotel company. Lodgian, Atlanta, manages a portfolio of 69 hotels in 28 states and Canada.
Novell (NASDAQ:NOVL - News) shares surged after the company was upgraded to buy from neutral at SunTrust Robinson Humphrey. Analyst Terry Tillman cited anticipated revenue growth for Novell stemming from the company's open-source software distribution agreement with Microsoft Corp. (NASDAQ:MSFT - News). Under that agreement, Microsoft is obligated to distribute coupons to corporate customers that can be used to acquire and run Novell's open-source software simultaneously with Microsoft products. Shares of Novell were up nearly 1% in early trading Monday.
Omni Energy Services Corp. (NASDAQ:OMNI - News) agreed to acquire BMJ Industrial Investments LLC and its Charles Holston Inc. subsidiary for $23 million, including $18 million in cash and $5 million in three-year, 5% convertible promissory notes, convertible at $9.24 per share. Carencro, La.-based Omni, a provider of drilling and environmental services to the oil and gas industry, expects the deal to have an "immediate positive impact" on its operations and profitability. For 2006, the businesses being acquired had revenue approaching $30 million, and pro forma earnings before interest, taxes, depreciation and amortization of more than $5 million, Omni said.
SigmaTel (NASDAQ:SGTL - News) shares rose after the Austin, Texas-based semiconductor company said its SGTV5800 TV audio chip has been adopted by Samsung Electronics . Samsung televisions with SigmaTel audio technology are expected to begin shipping during the first quarter of 2007. "We are thankful for our design win at Samsung; collaborating with the largest television manufacturer is a great opportunity for SigmaTel's TV audio product line," said Phil Pompa, SigmaTel's interim chief executive, in a statement.
SteelCloud (NASDAQ:SCLD - News) shares surged after the company received an order worth an estimated $500,000 from an undisclosed "major federal integrator." The company said the deal calls for it to provide servers for deployment in harsh industrial environments.
Swift Transportation (NASDAQ:SWFT - News) entered into a definitive merger agreement with an entity formed by Jerry Moyes, the company's largest shareholder, a current director, and former chairman of the board and CEO of Swift, to be acquired by Moyes and certain of his family members in an all-cash deal valued at approximately $2.74 billion, including the assumption of approximately $332 million of net debt.
Published by Michael Baron at MarketWatch

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A slug of disappointments in technology caused a rotation from “the rotation.” Elsewhere though, strength in the energy complex and less lofty expectations helped keep the schnitzeling to a minimum and the bull at large still hanging in there. For the four-day period, the S&P500 ($SPX) and NASDAQ Composite ($COMPQ) are showing very mixed results from a virtually unchanged decliner of just -.02%, to a much larger -2.06% bit of expired bull.The past week brought home the fact that the market is indeed made up of individual stocks. Large-cap tech—an area of late that’s seen a heavy rotation by institutional money in search of a new home—took the path less traveled. The quick workout on heavyweight tech contenders started off with a sales warning from security software powerhouse Symantec (SYMC), an influential downgrade of key players in the semis (SMH, KLAC, LRCX, NVLS), and two brokers chiming in with reductions to “neutral” on networking giant Cisco (CSCO). A narrowing of gross margins and lackluster guidance by Intel (INTC) didn’t help matters for tech bulls, nor did Apple’s (AAPL) earnings disappointment Wednesday evening. The current crown jewel beat bottom line estimates by 36 cents. However, guidance was reduced by management and shipments of the ever-popular iPod and Mac products were seen as being at the low end of expectations. In Friday’s session, reduced margins resulting in a ‘light’ penny beat at Big Blue (IBM) didn’t compute for bulls. In each case, the individual issues experienced what many might call an inflated disappointment, with investors simply looking to focus on the worst that each report had to offer. With all of the aforementioned being at or near 52-week highs, or better, and Wall Street having made an ‘all in’ move into the group of late, some might also call the action deserved. Black Gold (USO) pushed lower and hit below $50 a barrel for the first time in more than two years. On the week, the futures contract finished down a point at 51.99. Interestingly enough, the ‘profit-engine’ of the energy complex (XLE, OIH) managed to find a bid for the four-day period after its own severe slide. Value hunters and shorts covering were helped along in Friday’s trade by Schlumberger’s (SLB) better-than-expected earnings and a group whose bearish consensus outlook is fertile ground for contra trend reactions. The broader market as represented by the S&P500 can certainly thank the influence that the energy complex carries with it, in keeping profit-taking to a bare minimum. Lowered expectations of earnings (outside of technology) has also helped somewhat. Reactions on the week were generally mixed and the reports themselves didn’t offer up any type of unified and strong guidance for investors. However, Wall Street was able to keep the pains felt in tech names an isolated condition. That might be seen as a small victory for bulls. Names offering up decent results this past week include Wells Fargo (WFC), Harley (HOG), Johnson Controls (JCI) and Capital One (COF). Economic data this past week continued to hint at a slightly stronger economy than expected—focused on inflation pressures, but not reacting to the news either way. Better-than-expected reports on housing starts, industrial production and regional manufacturing reflected underlying growth. Also, weakening trends in energy and commodity prices helped keep price concerns muted and the bulls somewhat supportive of market prices. Other data however, hindered any further rally attempts. A tighter-than-expected labor market via the weekly claims report [sub 300K second week] is keeping the theme of wage-based inflation on traders’ minds. Further, neither the CPI nor PPI releases were able to show any type of clear moderation in prices of yet. With a year-over-year reading of the core CPI at 2.6%, that figure remains elevated, but not significant enough to warrant the Fed to shift policy. All said and done, with the widely followed 10-Year unchanged on the week at 4.77% and the S&P500 virtually unchanged, traders’ will have plenty of fresh catalysts this week to inspire. ON TAP THIS WEEKHeading into the week, potential market catalysts are riding heavily on 4th quarter earnings reports. This week will be the first of the season offering a full five days of corporate results and a calendar filled with promise from the likes of Texas Instruments (TXN), Bank of America (BAC), Yahoo (YHOO), Occidental (OXY), Amgen (AMGN), Caterpillar (CAT), Ford (F) and Johnson & Johnson (JNJ). Thus far, Reuter’s estimates that fourth quarter operational earnings for the S&P500 are on track for an increase of 9.3%. That’s roughly in-line with analysts estimates seen heading into the season, but more than 85% of S&P500 companies are still on tap to report. Further, an in-line Q4 after thirteen periods of double digit growth and a market at multi-year highs doesn’t sound like the basis for bullish behavior in 2007. MondayEconomic: Leading Indicators (.2%)Earnings: Pfizer (PFE), Eaton (ETN), A.O. Smith (AOS), Lee (LEE), Sify (SIFY), Plantronics (PLT), Texas Instruments (TXN), CSX (CSX)TuesdayEconomic: NAEarnings: Bank of America (BAC), EMC (EMC), Jacobs (JEC), J & J (JNJ), Precision Cast (PCP), Rediff (REDF), UAL (UAUA), Advanced Micro (AMD), Citrix (CTXS), Centex (CTX), QLogic (QLGC), Steel Dynamics (STLD), Supertex (SUPX), Yahoo (YHOO), Seagate (STX), RFMicro (RFMD)WednesdayEconomic: Weekly CrudeEarnings: Alleghany (ATI), Conoco (COP), Corning (GLW), General Dynamics (GD), Piper Jaffray (PJC), Waters (WAT), eBay (EBAY), F5 Net (FFIV), Netflix (NFLX), Novellus (NVLS), Qualcomm (QCOM), Rambus (RMBS), Symantec (SYMC), Varian Med (VAR)ThursdayEconomic: Weekly Claims (310K), Existing Home Sales (6.30M)Earnings: Applied Bio (ABI), AT&T (T), BJ Srvc (BJS), Dow Chem (DOW), Ford (F), Imclone (IMCL), Legg Mason (LM), Potash (POT), Occidental (OXY), Nokia (NOK), Quest Diag (DGX), SunPower (SPWR), Union P (UNP), Peabody (BTU), Amgen (AMGN), Harman (HAR), Bebe (BEBE), Columbia (COLM), MEMC (WFR), Microsoft (MSFT), Stryker (