Jim Cramer Blog

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.

Adobe Systems (NasdaqGS:ADBE) & Clear Channel Communications (NYSE:CCU). ADBE's PowerRating is 6, and CCU's PowerRating is 6.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
King Pharmaceuticals (NYSE:KG) & Ultra Petroleum (NYSE:UPL). KG's PowerRating is 6, and UPL's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Wendy's International (NYSE:WEN). WEN's PowerRating is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Krispy Kreme Donuts (NYSE:KKD). KKD's PowerRating is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
U.S. Bancorp (NYSE:USB). USB's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADBE, CCU, Hot Stocks, KG, KKD, UPL, USB, WEN

Apple Inc. (NasdaqGS:AAPL - News) Chief Operating Officer Tim Cook reiterated that the company remains on track to release its iPhone mobile-phone product in June, and that Apple expects to sell 10 million of the devices in 2008.
Audible Inc. (NasdaqGM:ADBL - News) reported a fourth-quarter net loss of $700,000, or 3 cents a share, compared with a net loss of $2.18 million, or 9 cents a share, in the year-ago period. Revenue at the Newark, N.J.-based provider of Internet audio content rose to $23.3 million in the latest quarter from $18.3 million a year ago. The stock was upgraded to buy from hold at Jefferies & Co.
BEA Systems (NasdaqGS:BEAS - News) was upgraded to peer perform from underperform at Bear Stearns.
CDC Corp. (NasdaqGM:CHINA - News) lifted its financial outlook for 2007, saying it now expects adjusted net income of $57 million to $62 million, above its prior forecast of $55 million to $60 million. The company expects revenue of $415 million to $420 million for the year, a boost from its previous estimate of $401 million to $411 million.
Ciena (NasdaqGS:CIEN - News) was upgraded to overweight from neutral by J.P. Morgan, as the broker said the recovery in the optical market is greater than it first expected.
Deckers Outdoor Corp.'s (NasdaqGS:DECK - News) preliminary fourth-quarter results indicate net income nearly doubled to $23.5 million, or $1.82 a share, from $12.1 million, or 94 cents a share, a year earlier. The Goleta, Calif., maker of outdoor footwear and apparel said net sales increased 37% to $124.4 million from $91 million a year ago.
Dollar Thrifty Automotive Group (NYSE:DTG - News) reported a fourth-quarter loss of $2.7 million, or 11 cents a share, down from a year-ago profit of $8.2 million, or 31 cents a share. The latest results include 10 cents a share in transition costs related to the outsourcing of information technology services and a charge of 5 cents a share from a decrease in the fair value of derivatives, while last year's performance reflects a gain of 11 cents a share from an increase in the fair value of derivatives. Revenue rose 11.5% in the three months ended Dec. 31 to $392.8 million from $352.4 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a loss of a penny per share in the December period. The company said the latest results reflect a very strong pricing environment, as well as significantly higher vehicle depreciation and interest costs compared to last year. Looking ahead, the Tulsa, Okla., car rental company sees earnings of $2.50 to $2.90 a share in 2007. Wall Street's current consensus estimate is for a profit of $2.62 a share for the year.
Dollar Tree Stores Inc.'s (NasdaqGS:DLTR - News) fiscal fourth-quarter net income rose to $97.6 million, or 96 cents a share, from $86.5 million, or 81 cents a share, a year ago. A Thomson Financial survey of analysts, on average, predicted earnings of 94 cents a share for the quarter. Analysts' estimates usually exclude items. The Chesapeake, Va., discount retailer's net sales for the quarter ended Feb. 3 rose 22% to $1.32 billion from $1.08 billion a year ago, boosted by an extra sales week in the current quarter. The company expects first-quarter earnings of 32 cents to 35 cents a share on sales of $935 million to $955 million.
Dycom Industries Inc. (NYSE:DY - News) shares rose after the Palm Beach Gardens, Fla.-based engineering and construction services provider reported fiscal second-quarter net earnings of $5.59 million, or 14 cents a share, up from $3.87 million, or 10 cents a share, in the year-ago period. Revenue rose to $258.3 million from $237.1 million. Analysts polled by Thomson Financial were expecting a per-share profit of 13 cents on revenue of $253.4 million. Dycom forecast fiscal third-quarter earnings from continuing operations of 23 cents to 28 cents a share on revenue of $275 million to $295 million. Analysts are looking for a per-share profit of 24 cents on revenue of $275 million.
Goodyear Tire & Rubber Co. (NYSE:GT - News) plans to record a charge of $65 million in the first quarter of 2007 for changes to its benefit and pension plans. The Akron, Ohio-based tire maker said, among other changes, current and future salaried retirees will contribute more toward the cost of their medical benefits and that the company would freeze its defined benefit pension plan for current salaried employees, replacing it with 401(k) retirement accounts. The changes will be phased in over a two-year period, and Goodyear expects savings of $80 million to $90 million in 2007, $100 million to $110 million in 2008, and $80 million to $90 million in 2009 and beyond.
Hospira (NYSE:HSP - News) reported a nearly 80% jump in fourth quarter profit Wednesday on higher product volumes, higher prices and favorable currency exchange. The company earned $47.4 million, or 30 cents a share, on the period - up from $26.6 million, or 16 cents. On an adjusted basis, Hospira said it would have earned 43 cents a share, vs. 32 cents in the last three months of 2005. Revenue came in at $706.5 million, a gain of 9.3%. The average estimate of analysts polled by Thomson Financial was for Hospira to earn 38 cents a share on $674 million in revenue.
Kenneth Cole Productions Inc. (NYSE:KCP - News) reported fourth-quarter net earnings of $7.99 million, or 39 cents a share, up 6.9% from $7.48 million, or 37 cents a share, in the year-ago period. Revenue in the quarter ended Dec. 31 rose to $122.4 million from $119.8 million.
King Pharmaceuticals (NYSE:KG - News) reported fourth-quarter earnings of $37 million, or 15 cents a share, up from a year-ago loss of $95 million, or 39 cents a share. Excluding items, such as charges from asset impairment and an arbitration settlement, the company earned $98.8 million, or 41 cents a share, in the latest quarter. Revenue rose in the three months ended Dec. 31 to $512.9 million from $423.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 37 cents a share in the December period on revenue of $480.6 million.
Komag (NasdaqGS:KOMG - News) shares rose after American Technology Research analyst Shaw Wu lifted his rating on the hard-disk maker's stock to neutral from sell. Wu said Komag is benefitting from more sales to its largest customer, Seagate Technology , which accounts for 37% of Komag's revenue. However, Wu warned that Komag faces other fundamental challenges as it deals with rising costs and competition involving a shift to newer disk-recording technologies.
L-3 Communications (NYSE:LLL - News) was upgraded to neutral from underweight by J.P. Morgan, with the brokerage saying the stock should have limited downside given its high free cash flow yield. "We believe 2007 could be a more challenging year for defense stocks, and given L-3's more modest valuation, we no longer expect it to underperform the group," the broker said.
Leap Wireless International (NasdaqGS:LEAP - News) shares advanced after the San Diego-based provider of wireless communications services reported a fourth-quarter net loss of $39.4 million, or 60 cents a share. In the same quarter last year, the company posted a net profit of $4.95 million, or 8 cents a share. Revenue rose to $315.5 million from $228.9 million. Analysts polled by Thomson Financial were expecting a per-share loss of 35 cents on revenue of $316 million. Leap said it added 262,000 net new customers in the fourth quarter, and expects to add 260,000 to 320,000 net new customers in the first quarter.
Martha Stewart Living Omnimedia (NYSE:MSO - News) said fourth-quarter net income jumped to $16.2 million, or 31 cents a share, from $2.9 million, or 6 cents a share in the year-ago period. Total revenue rose to $97 million from $84.6 million. Analysts, on average, expected it to earn 25 cents a share on revenue of $95 million, according to Thomson Financial. For 2007, the company is expecting revenue in the range of $330 million to $340 million, operating income in the range of $5.5 million to $8.5 million and adjusted EBITDA in the range of $32 million to $35 million, including an investment of $8 million in "Blueprint" magazine.
Medical Action Industries (NasdaqGS:MDCI - News) was upgraded to buy from neutral at Sidoti & Co.
Merck & Co. (NYSE:MRK - News) said it expects its first-quarter profit will be 63 to 67 cents a share, excluding restructuring charges related to site closures and position eliminations, and targets reported first-quarter earnings per share of 58 cents to 64 cents. Whitehouse Station, N.J.-based Merck cited early revenue trends across Merck's range of products. The company also raised its anticipated 2007 earnings forecast range to $2.55 to $2.65 a share, excluding items related to site closures and position eliminations, and its full-year 2007 reported earnings range to $2.40 to $2.55 a share. Analysts, on average, expect it to earn 60 cents a share for the first quarter and $2.62 a share for the year, according to Thomson Financial. Merck said its forecasts do not reflect the establishment of any reserves for any potential liability relating to the Vioxx litigation.
Midwest Air Group Inc. (AMEX:MEH - News) , citing its own growth forecasts, urged its shareholders again Wednesday to reject a takeover offer from AirTran Holdings Inc. "AirTran's low-cost carrier business model is in trouble. By virtually any metric, AirTran's business is deteriorating," according to a letter Midwest sent to its shareholders.
Published By MarketWatch

Labels: AAPL, ADBL, BEAS, CHINA, CIEN, DECK, DLTR, DTG, DY, GT, HSP, KCP, KG, KOMG, LEAP, LLL, MDCI, MEH, MRK, MSO

Bullish calls:
NYSE Group (NYSE: NYX - News): 'NYX is still my growth stock of the year.'Altria (NYSE: MO - News): ' ... that's my number 1 value stock of the year, and we've been making money in that name. 'Public Storage (NYSE: PSA - News): 'PSA is one of those incredible situations where I believe... this group's in bull market mode, and it is not about to stop, and I think PSA is two thumbs up, way up!'Tower Group (NASDAQ: TWGP - News): ' I like the insurance business. Obviously, a little expensive versus price to book, because it sells at like 4x book. But it's growth rate is equal to its P/E multiple.'Transocean (NYSE: RIG - News)GlobalSantaFe (NYSE: GSF - News)Wells Fargo (NYSE: WFC - News): 'WFC - best in show quarter.'JPMorgan (NYSE: JPM - News): 'I suggest you swap into JPM.' WFC - best in show quarterJ.C. Penney (NYSE: JCP - News): 'Let me just tell you to be in some JCP.'
Bearish calls:
General Motors (NYSE: GM - News): 'GM is in a holding pattern. It can't do anything until the numbers start getting better. Had they not lost Jerry York ... the stock would have gone to $40. Right now, it is strictly 'don't buy, don't buy...'Hertz Global (NYSE: HTZ - News): ' Take the money and run! I don't want to be there.'Intercontinental Exchange (NYSE: ICE - News): 'The ICE still does not melt... I do not understand why this stock is so strong, other than it trades oil... I still like NYX more. Don't buy, don't buy.'LoJack (NASDAQ: LOJN - News): 'They missed the quarter.'Del Monte Foods (NYSE: DLM - News): ' ... it has been historically a bad investment, and it's not going to change. That company is poorly run!'ON Semiconductor (NASDAQ: ONNN - News): 'No, no, no. Time to ring the register. That particular part of the tech bull market is on hold until August.'DivX (NASDAQ: DIVX - News): 'We recommended it at $18. It was a fabulous call. We pulled the trigger. When it got to $28, we said enough is enough. It's back to $21. I'm not going away from that.'King Pharmaceuticals (NYSE: KG - News): ' ... I have disliked KG for as long as this stock has been going down. I don't like the generics. I reiterate my sell on KG. 'Tata Motors (NYSE: TTM - News): 'I cannot in good conscience say that I am going to recommend that you buy it, but I am certainly, certainly going to tell you - if you own TTM - you can hold it, but you better do a little schnitzelling...'Hercules Offshore (NASDAQ: HERO - News): 'This is an example of the need to be selective. I want you to sell HERO. I don't like the U.S. offshore market.'The Bank of New York (NYSE: BK - News): ' I'm not a big fan of stocks that have already announced big deals.'Aeropostale (NYSE: ARO - News): 'No. I don't need that teen ghetto - it's too hard for me.'

Published By SeekingAlpha

Labels: BK, DIVX, DLM, GM, GSF, HERO, HTZ, ICE, JCP, JPM, KG, LOJN, MO, NYX, ONNN, PSA, RIG, TTM, TWGP, WFC

Among the companies whose shares are expected to see active trade in Monday's session are Harrah's Entertainment Inc., FuelCell Energy Inc., Dell Inc. and Andersons Inc.
Applied Signal Technology (APSG) is expected to report earnings per share for the fourth quarter of 22 cents, according to analysts polled by Thomson First Call.
FuelCell (FCEL) is expected to post a per-share loss of 35 cents for the fourth quarter.
Harrah's Entertainment (HET) is on the verge of being sold to two private- equity firms, Apollo Management and Texas Pacific Group, for at least $90 a share, the online edition of The Wall Street Journal reported Sunday.
Joy Global Inc. (JOYG) is expected to report per-share income for the fourth quarter of 66 cents.
Oracle Corp. (ORCL) is expected to post second-quarter per-share income of 22 cents.
Piedmont Natural Gas Co. (PNY) is expected to report first-quarter per-share income of 97 cents.
Steelcase Inc. (SCS) is expected to report earnings of 19 cents per share for the third quarter.
After Friday's closing bell, Dell (DELL) said it received a Nasdaq letter on Dec. 15 indicating that the company is not in compliance with continued listing requirements. The computer giant said the letter relates to the company's delayed third-quarter filing.
Also, three top executives at Time Warner Inc.'s (TWX) AOL unit plan to quit as part of a reorganization expected to be made public this week, according to several media reports. The execs include: Jim Bankoff, AOL's executive vice president of programming, Joe Redling, chief marketing officer, and John Buckley, a chief public-relations officer.
Watch list
Andersons (ANDE) said it has raised the quarterly cash dividend 5.6% to 4.75 cents per share. The dividend is payable Jan. 22 to shareholders as of Jan. 2.
Boston Scientific Corp. (BSX) said it is voluntarily recalling certain lots of the Mach 1 guide catheter in the United States. The medical devices maker said some units of the catheter may contain excess resin that could obstruct a blood vessel if detached during a procedure.
Comverse Technology Inc. (CMVT) Chairman Ron Hiram has resigned from the board. Hiram's resignation was tendered in view of the recent appointment of an additional five new independent directors. Also, the company has received an additional Nasdaq delisting notice over the company's delayed Form 10-Q filing for the quarter ended Oct. 31.
Guitar Center Inc. (GTRC) said its Nov. 22 agreement to buy the assets of Dennis Bamber Inc. has been terminated upon bankruptcy court approval of an alternative bidder for the business.
Imax Corp. (IMAX) said it has determined that a sale or merger of the company will not enhance shareholder value. The Toronto-based entertainment company said it will instead focus on the growth of its network and on strategic business initiatives.
King Pharmaceuticals Inc. (KG) said an arbitration panel has decided in favor of Elan Corp. (ELN) in a dispute related to King's Sonata insomnia drug. The panel ordered King to pay Elan about $49.8 million, plus interest, in milestone payments and other research and development expenses.
Nasdaq Stock Market Inc. (NDAQ) said it has approved a new employment contract for President and Chief Executive Robert Greifeld, extending his deal through Dec. 31, 2010.
PetSmart Inc. (PETM) said it has amended its bylaws to adopt a majority voting standard for the election of directors in uncontested elections. The Phoenix- based retailer of pet products and services said that under the new standard a director in an uncontested election must receive more than 50% of the votes cast.
Power Integrations Inc. (POWI) said it has informed the Nasdaq that it will not meet the Listing and Hearing Review Council's Dec. 18 deadline to become current in its filings. The company expects its shares to be delisted from the Nasdaq Global Market as of the start of trading on Dec. 19.
Refco Inc. (RFX) , 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.
Private-equity firms Clayton Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co. are in talks to acquire Royal Ahold NVU.S. foodservice unit in a leveraged buyout, according to a media report.
Standard & Poor's said it's changing the makeup of the S&P 500 and SmallCap 600 indexes after the close of trading Tuesday. Terex Corp. (TEX) will replace Navistar International Corp. (NAV) in the S&P 500. Mannatech Inc. (MTEX) will replace American Italian Pasta Co. (PLB) in the S&P SmallCap 600.
By Dow Jones

Labels: ANDE, APSG, BSX, CMVT, DELL, FCEL, GTRC, HET, IMAX, JOYG, KG, MTEX, NDAQ, ORCL, PETM, POWI, RFX, SCS, TEX, TWX