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.
Watson Pharmaceuticals (NYSE:WPI - News). WPI's PowerRating (for Traders) is 7.
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.
Netscout Systems (NasdaqGM:NTCT - News). NTCT's PowerRating (for Traders) is 8.
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.
KMG Chemicals (NasdaqGM:KMGB - News). KMGB's PowerRating (for Traders) is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up 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 close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
US Airways (NYSE:LCC - News). LCC's PowerRating (for Traders) 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.
Websense (NasdaqGS:WBSN - News). WBSN's PowerRating (for Traders) is 3.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Red Hat (NYSE:RHT - News). RHT's PowerRating (for Traders) is 3.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Circuit City (NYSE:CC - News). CC's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: CC, Hot Stocks, KMGB, LCC, NTCT, RHT, WBSN, WPI

1 800 Flowers.com (NasdaqGS:FLWS - News) was downgraded to sell from neutral by Goldman Sachs on valuation groups, as the shares are about 15% above its year-end price target of $6.50. "Calendar year 2008 to 2011 revenue growth above 5% is unlikely without greater-than-expected levels of spending, which would put our 13% profit growth estimate, and thus our price target, at risk. The current share price may reflect an overly optimistic outlook for Valentine's Day, Easter, and Mother's Day," the broker said.
Advancis Pharmaceutical (NasdaqGM:AVNC - News) has received a "refusal to file" letter from the Food and Drug Administration for its Amoxicillin Pulsys new-drug application. The Germantown, Md., pharmaceutical company said the letter requests additional information on its planned commercial manufacturing processes. Last December, Advancis submitted an NDA for once-daily Amoxicillin Pulsys to treat adolescents and adults with acute strep throat. The company plans to meet with the FDA as soon as possible to discuss the issues and to reach agreement on what additional information is required for the filing to be accepted.
Agnico-Eagle Mines Ltd (NYSE:AEM - News) agreed to buy Cumberland Resources Ltd in an all-stock deal valuing the Canadian gold mining company at C$710 million ($605 million). Agnico-Eagle said it will exchange 0.185 of its shares for every Cumberland share, representing a 28.8% premium to Cumberland's closing price on Feb. 13. Cumberland owns the Meadowbank gold project, which is currently under construction with proven and probable reserves of 2.9 million ounces. Production is due to begin in 2010 and will increase projected gold production at Agnico-Eagle by 39% in 2010 to 1.3 million ounces.
Carter (NYSE:CRI - News) shares tumbled after the company said its fourth-quarter net sales rose 7.7% to $377.5 million and earnings were 45 cents a share, including charges of 1 cent a share for share-based compensation and 1 cent a share for amortization charges. On average, analysts polled by Thomson Financial expected earnings of 46 cents a share. The analyst estimate includes share-based compensation but excludes the amortization charges. Carter's said fourth-quarter weakness is now impacting 2007 results, which are being hurt by changes in the mix and levels of inventory in our stores. Carter's said it's made progress reducing OshKosh's cost structure in 2006, but more work is still required and the benefits won't be realized until the second half of 2007. As a result the company expects first-quarter sales of $305 million, up 3% from a year ago, and earnings of 14 cents, down 46% from a year ago. For fiscal 2007, Carter's now expects net sales of $1.4 billion to $1.42 billion, up 4% to 5%, and earnings of $1.42 to $1.49 a share, flat to up 5%. The company expects no growth in same-store sales in 2007.
Champion Enterprises Inc. (NYSE:CHB - News) fourth-quarter net income declined to 5 cents a share from 8 cents a share, in the year-earlier period. The Michigan producer of manufactured and modular homes reported revenue fell to $300.9 million from $375.5 million. Analysts polled by Thomson Financial had expected revenue of $332 million.
Choice Hotels (NYSE:CHH - News) shares pulled back after the company said its fourth-quarter earnings improved to $24.6 million, or 37 cents a share, from a year-earlier profit of $21.6 million, or 32 cents a share. On an adjusted basis, earnings were 36 cents a share. Revenue rose to $143.7 million from $122 million. Wall Street, according to Thomson Financial, expected the company to post fourth-quarter earnings of 35 cents a share and revenue of $133 million. The company expects to post first-quarter earnings of 23 cents a share and full-year earnings of $1.59 a share. Wall Street expects first-quarter earnings of 28 cents a share and 2007 earnings of $1.67 a share.
Daktronics' (NasdaqGS:DAKT - News) shares dropped after the Brookings, S.D.-based company reported fiscal third-quarter net income of $7.03 million, or 17 cents a share, compared with $4.04 million, or 10 cents a share, in the year-ago period. Revenue rose to $106.7 million from $71.1 million. Analysts were expecting a per-share profit of 16 cents on revenue of $112.6 million. The company expects fourth-quarter earnings in the range of 12 cents to 19 cents a share on revenue of $106 to $118 million.
Delta Air Lines Inc. (Other OTC:DALRQ.PK - News) said its fourth-quarter loss widened to $1.98 billion from $1.24 billion. The Atlanta airline, in Chapter 11 bankruptcy, said it recorded $1.8 billion in charges in the quarter, consisting of $2.5 billion for reorganization items and a $719 million income tax-related gain from the reversal of liabilities under its pilot pension plan. Revenue in the three months ended Dec. 31 rose 5.3% to $4.14 billion from $3.92 billion. Delta, the No. 3 network airline, said it recorded its first annual operating profit since 2000.
Gen-Probe Inc. (NasdaqGS:GPRO - News) said its fourth-quarter net earnings rose slightly to $17.1 million, or 32 cents a share, compared with $16.8 million, or 32 cents a share, in the same period last year, on the back of higher sales. Excluding stock-based compensation, the San Diego-based maker of tests to diagnose disease posted per-share earnings of 38 cents. Revenue rose 3.5% to $91.1 million from $88 million. Analysts polled by Thomson Financial had expected per-share earnings of 29 cents, on revenue of $89 million. For 2007, Gen-Probe expects per-share earnings of $1.26 to $1.34, on revenue of $380 million to $390 million. Separately, the company said it has named Carl Hull chief operating officer.
Harris Corp. (NYSE:HRS - News) was downgraded to neutral from overweight at J.P. Morgan.
Host Hotels (NYSE:HST - News) was downgraded to hold from buy at Citigroup.
La-Z-Boy (NYSE:LZB - News) swung to a third-quarter net loss of 15 cents a share, as it recorded a 28-cent loss from discontinued operations. In the year-earlier period, the furniture company earned 20 cents a share. La-Z-Boy said revenue fell to $403.9 million from $446.6 million. For the fourth quarter, the company expects sales to fall 8% to 10% from the year earlier, with earnings per share of 3 cents to 7 cents.
Masco Corp. (NYSE:MAS - News)swung to a fourth-quarter loss of 49 cents a share from net income of 41 cents, in the year-earlier period on higher impairment charges and a 5.8% decline in sales. Profit from continuing operations before items decreased to 38 cents a share from 50 cents. Fourth-quarter sales fell to $2.95 billion. Analysts surveyed by Thomson Financial, on average, expected the Taylor, Mich., company to earn 36 cents a share on revenue of $2.95 billion.
Office Depot Inc. (NYSE:ODP - News) said its fourth-quarter earnings rose to 48 cents a share from 34 cents in the year-earlier period. The 2005 results include a 53rd week. Excluding certain charges and the effect of a 53rd week in 2005, Office Depot earned 54 cents a share, up from 38 cents. The Delray Beach, Fla., office-supply retail chain said sales rose to $3.84 billion from $3.72 billion. Analysts polled by Thomson Financial, on average, expected earnings of 52 cents a share, excluding items, on revenue of $3.89 billion.
Playboy Enterprises (NYSE:PLA - News) was downgraded to neutral from buy at both UBS and Banc of America Securities. Banc of America lowered its price target to $12 from $13, while UBS cuts its target to $12.50 from $14.
PNM Resources Inc. (NYSE:PNM - News) fourth-quarter net income rose to 49 cents a share from 10 cents in the year-earlier period. The Albuquerque, N.M., energy holding company's revenue declined to $619 million from $646.5 million. Analysts polled by Thomson Financial were looking for revenue of $690 million. The board also approved a 4.6% increase in the quarterly dividend, to 23 cents a share, payable May 18 to holders as of May 1.
Stifel Financial, (NYSE:SF - News), the St. Louis brokerage and investment-banking firm, reported fourth-quarter net income rose 50% on 73% higher revenue.
Telik Inc. (NasdaqGM:TELK - News) plans to cut its workforce by about 25% as part of a corporate restructuring plan to reduce spending. The Palo Alto, Calif., biopharmaceutical company expects to record about $1.6 million in restructuring and severance costs for the first quarter. After the job cuts, the company will have about 120 employees.
Therma-Wave (NasdaqGM:TWAV - News) said KLA-Tencor Corp. has indicated that the German Federal Cartel Office initiated a Phase 2 review of KLA's proposed acquisition of Therma-Wave. Therefore, the acquisition of Therma-Wave may only be consummated if the FCO approves the acquisition. The tender offer has been extended to March 15.
United Auto Group (NYSE:UAG - News) reported fourth-quarter earnings of $29.9 million, or 32 cents a share, up from a year-ago profit of $30.1 million, or 32 cents a share. On a continuing operations basis, the company earned $31.1 million, or 33 cents a share, in the latest quarter. Revenue rose 22.8% in the latest three months to $2.88 billion from $2.35 billion a year earlier. The company said same-store retail revenue rose 7.1% in the quarter. The average estimate of analysts polled by Thomson Financial was for a profit of 33 cents a share in the December period. Looking ahead, the Bloomfield Hills, Mich., automotive retailer said it expects earnings from continuing operations of 26 to 30 cents a share for the first quarter and $1.40 to $1.50 a share for fiscal 2007. Wall Street's current consensus estimates are for earnings of 30 cents a share and $1.56 a share for the respective periods.
US Airways Group Inc. (NYSE:LCC - News) said PAR Investment Partners LP, which had been the carrier's largest holder, sold 6.5 million of its 13.5 million shares to help diversify its portfolio. After the sale, PAR Investment Partners will remain one of US Airways' largest investors, the stock will remain the largest position within PAR's portfolio, and Edward Shapiro, PAR vice president, will remain on the airline's board.
Vion Pharmaceuticals' (NasdaqCM:VION - News) shares slumped after the New Haven, Conn.-based company said it has agreed to sell up to $60 million of convertible senior notes due 2012 and warrants to purchase up to 7.8 million of its shares in a private placement. The offering is expected to close on Feb. 20. Vion expects to use the proceeds of the offering for general corporate purposes.
Watts Water Technology (NYSE:WTS - News) shares fell after the North Andover, Mass.-based maker of water safety and flow control products late Tuesday reported fourth-quarter net earnings of $18.1 million, or 51 cents a share, up from $15 million, or 45 cents a share, in the year-ago period. Revenue rose to $330.5 million from $244.4 million. Analysts polled by Thomson Financial were expecting a per-share profit of 61 cents on revenue of $313.5 million.
Weight Watchers International's (NYSE:WTW - News) fourth-quarter earnings rose to $44.3 million, or 45 cents a share, from $38.9 million, or 38 cents a share, a year earlier. Excluding a $6.3 million benefit from the reversal of tax reserves, earnings were 39 cents a share in the latest quarter. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of 39 cents a share, before items. The New York provider of weight-management services said revenue for the fourth quarter increased 14% to $285.5 million from $251.2 million a year ago. Wall Street was looking for revenue of $275 million. Weight Watchers expects 2007 earnings of $2.33 to $2.47 a share, including 2 cents a share of debt expense.

Published By Michael Baron of MarketWatch

Labels: AEM, AVNC, CHB, CHH, CRI, DAKT, FLWS, GPRO, HRS, LCC, LZB, MAS, ODP, PLA, PNM, TELK, TWAV, UAG, VION, WTW

Stocks climbed higher today, as investors shrugged off a sharp rise in crude oil prices and whatever anxiety they may have about the Federal Reserve's decision on interest rates, which is due tomorrow. Investors have for the most part resigned themselves to the fact the Fed is unlikely to cut interest rates in the near term; for now they will settle for a continuation of the central bank's steady-as-she goes policy of not raising them further. The 10-year Treasury note also found buyers in advance of the Fed's announcement.
Ordinary Americans, for their part, were upbeat about the state of the economy in January, a period when wages were moving up and oil prices were going down, according to the private Conference Board's monthly consumer confidence survey. Oil futures, however, rose more than $2 a barrel today on a report in The Wall Street Journal that Saudi Arabia would cut its production another 168,000 barrels a day starting February 1st, or almost 1 million barrels a day from last summer. Natural gas prices were also up sharply as artic cold settled in across the Midwest.
In earnings news, U.S. Airways Group (NYSE: LCC - News) swung to a profit in Q4, earning $12 million, or 13 cents per share, against a loss of -$261 million, or -$3.27 a share, during the corresponding 2005 quarter. The results included several special items, which if excluded, meant the company would have earned $86 million, or 91 cents a share. The stock dropped -2% despite the positive results. Fuel prices are the company's largest cost component, and today's increase in oil prices contributed to the selling pressure. Rival JetBlue Airways (Nasdaq: JBLU - News) also declined, falling -4% after it reported a return to profitability in Q4, earning $17 million, or 10 cents a share, against a year-earlier loss of -$42 million, or -25 cents a share.
Proctor & Gamble (NYSE: PG - News) reported a 12% increase in profits amid strong sales of razors and other high-margin products, and it increased its full-year guidance. Meanwhile, transportation bellwether United Parcel Service (NYSE: UPS - News) reported results that were in line with expectations, but it issued soft guidance for the current quarter and full year.
In the pharmaceutical sector, Merck (NYSE: MRK - News) said acquisition costs and the loss of patent protection for its anti-cholesterol drug Zocor cut its Q4 profit by -58%. Revenue, however, was up 5% on sharply increased sales of vaccines. Merck's profit dropped to $474 million, or 22 cents a share, from $1.1 billion, or 51 cents per share, a year earlier. Included in the results was a charge of -$466 million related to Merck's purchase of biotechnology company Sirna Therapeutics. Wyeth (NYSE: WYE - News), meanwhile, said its profits rose 17% on strong sales of its vaccine Prevnar and arthritis drug Enbrel, but its results were below analyst forecasts. Wyeth co-markets Enbrel Amgen (Nasdaq: AMGN - News).
Electronics retailer Radio Shack (NYSE: RSH - News) rose 5% after being upgraded from "sell" to a "buy" by Goldman Sachs, which called the company a "classic turnaround opportunity." Wireless phone maker Motorola (NYSE: MOT - News) also rose sharply, jumping 7% on news that activist investor Carl Icahn has taken a 1.4% stake in the company and was seeking a seat on its board. Motorola, the world's #2 cell phone maker, recently reported a -48% drop in its Q4 profits as prices for its popular Razr phones have plummeted. The stock has been trading near its 52-week low.

Labels: AMGN, JBLU, LCC, MOT, MRK, PG, RSH, UPS, WYE

OccuLogix Inc. (NasdaqGM:OCCX - News) shares gained after the Toronto-based developer of ophthalmic devices said it has obtained investigational device exemption clearance from the Food and Drug Administration to begin its Phase III study of the Rheo procedure to treat the dry form of age-related macular degeneration. If successful, the company expects the study to support its application to the FDA for approval to market the Rheo system in the U.S.
Par Pharmaceutical (NYSE:PRX - News) shares advanced after the Woodcliff Lake, N.J.-based company said it has received final approval from the Food and Drug Administration of its abbreviated new drug application for propranolol hydrochloride extended release capsules. Propranolol HCI, the generic equivalent of Wyeth's (NYSE:WYE - News) Inderal-LA, is used to treat hypertension, angina pectoris due to coronary atherosclerosis, migraine and hypertrophic subaortic stenosis. Annual U.S. sales of Inderal-LA are roughly $215 million, Par said.
Premier Community Bankshares' (NasdaqCM:PREM - News) shares soared after the Winchester, Va.-based bank said it has agreed to be acquired by United Bankshares Inc. (NasdaqGS:UBSI - News). Premier shareholders will be able to elect to receive either United Bakshares stock, cash, or a combination. The stock consideration will be at a fixed exchange ratio of 0.93 shares of United common stock for each share of Premier common stock, and the cash consideration will be $34 a share. Premier had $900.7 million in assets at Dec.31, 2006, and 26 offices through three banking subsidiaries.
Quest Diagnostics (NYSE:DGX - News) was upgraded to overweight from neutral at J.P. Morgan. The firm said it expects the company to become more active in the acquisitions market. "Based on our conversations with Quest's management, we now believe the company will become more aggressive to act upon its long-stated goal of expanding overseas," the broker said. "In addition, we believe current guidance for the impact of the recent contract losses is too conservative, and that results over the next few quarters will prove to be better than current expectations," it added.
Silicom Ltd. (NasdaqCM:SILC - News) shares surged after the Israel-based supplier of networking products reported fourth-quarter net earnings of $1.07 million, or 20 cents a share, up from $473,000, or 11 cents a share, in the year-ago period. Revenue rose to $5.02 million from $3.13 million.
Sturm, Ruger & Co. (NYSE:RGR - News) shares gained after the Southport, Conn.-based maker of firearms and steel investment castings said it has authorized a repurchase program of up to $20 million of its common stock.
Synagro Technologies (NasdaqGM:SYGR - News) agreed to be acquired by The Carlyle Group for $462 million. The total enterprise value of the deal is $772 million, reflecting the assumption of $310 million in debt. The deal values Synagro shares at $5.76 each, a nearly 29% premium to Friday's closing price of $4.48. Synagro, a Houston-based provider of biosolid recycling services, and Carlyle expect the transaction to close in the second quarter. Synagro added that it plans to continue paying dividends on its common stock through the closing of the deal.
Tesoro Corp. (NYSE:TSO - News) said fourth-quarter earnings rose to $158 million, or $2.28 a share, from $69 million, or 97 cents a share, a year earlier. Analysts surveyed by Thomson Financial had been expecting earnings of $1.91 a share, on average. Revenue for the quarter ending December fell to $4.02 billion from last year's $4.36 billion. The company also agreed to acquire certain California assets of Shell Oil Products, including a Los Angeles refinery and 250 branded retail sites, for $1.63 billion.
Trex Co. (NYSE:TWP - News) said it will restate its results for 2003 through 2005 and the first nine months of 2006 to correct errors related to the recording of certain expenses. The maker of composite decking and railing expects the cumulative effect of the restatements to increase reported net income for 2003 through 2005 by roughly $200,000, and to increase reported net income for the first nine months of 2006 by roughly $200,000, or 2 cents a share.
Tyson Foods' (NYSE:TSN - News) first-quarter earnings rose 46%, boosted by higher profits in its chicken, pork and prepared foods units, and cost-cutting efforts that lowered expenses. The Springdale, Ark., meat processor reported first-quarter earnings of $57 million, or 16 cents a share, up from $39 million, or 11 cents a share, a year earlier. Tyson said sales for the quarter ended Dec. 30 rose 1.6% to $6.56 billion from $6.45 billion a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 6 cents a share on revenue of $6.38 billion. In addition, Tyson affirmed its earlier earnings outlook for its 2007 fiscal year, saying it expects earnings of 50 cents to 80 cents a share. The company also said it expects its second quarter to be profitable.
U.S. Airways Group (NYSE:LCC - News) is prepared to add a $1 billion cash sweetener to its offer to acquire Delta Air Lines (Other OTC:DALRQ.PK - News), according to a Wall Street Journal report. The newspaper, citing people familiar with the matter, said Tempe, Ariz.-based U.S. Airways could lift its hostile takeover offer to $10.8 billion in cash and stock if Delta's official creditors committee demands that the bankrupt carrier allow due diligence by its suitor. The creditors would also have to request that the bankruptcy court overseeing Delta's Chapter 11 bankruptcy proceedings postpone a February hearing on the Atlanta-based airline's restructuring proposal, and they'd have to agree to support the start of a formal antitrust review of the proposed merger as well.
Van der Moolen (NYSE:VDM - News) appointed Michiel Wolfswinkel as chief financial officer, effective March 1. Wolfswinkel will succeed interim-CFO Jan Van de Walter. Van der Moolen recently announced it was cutting 30% of the staff at its NYSE specialist unit as the exchange completed the transition to its hybrid trading system.

Published By MarketWatch

Labels: DGX, LCC, OCCX, PREM, PRX, RGR, SILC, SYGR, TSN, TSO, TWP, UBSI, VDM, WYE

Stocks steadily gain ground after rough open to close firmly in the black. The Dow ($INDU) closed with an advance of 25.56 points to 12,442.16. The S&P 500 ($SPX) added 2.74 points to 1,414.85. The NASDAQ ($COMPQ) tacked on 15.50 points to close at 2,459.33. Volume was moderate with the NYSE trading 1.57 billion shares and the Naz turning over 2.30 billion shares. Interestingly, market breadth was flat on both the Big Board and the Naz. Apple (AAPL) was one reason for the strength in the tech sector with the stock continuing to benefit from the unveiling of its new iPhone at the MacWorld show on Tuesday. After hitting a new all-time high yesterday, the stock continued to rally, up another 4.79 percent to close at $97. Of course, this news hasn’t been good for everyone, especially the makers of mobile phones that could possibly lose market share to Apple’s new phone. Both Nokia (NOK) and Motorola (MOT) have suffered with these two stocks down 1.55 percent and 0.55 percent respectively on Wednesday. Alcoa (AA) was another positive for stocks after the Dow component kicked off the earnings season with strong results last night. The aluminum giant saw a 20 percent increase in revenues with profits up 60 percent in the fourth-quarter. Earnings per share easily surpassed expectations sending the stock higher by six percent on the session. The SPX was an underperformer today mainly due to the drop in energy prices. With half the value of the index in energy related stocks, sharp drops in oil have taken a toll on the broader market. Chevron (CVX) shares lost 1.7 percent on the session after the oil giant warned that fourth-quarter results would be negatively impacted by falling commodity prices. Oil continued its slide Wednesday, giving up $1.62 a barrel to close at $54.02. Weekly inventory data this morning showed crude supplies fall by 5 million barrels, but a 3.8 million gain in gasoline and a 5 million barrel rise in distillates kept oil under pressure. There is a lot of talk of OPEC coming in to support oil by making more production cuts, but so far, the moves the cartel have made have done little for the commodity. Of course, airline stocks continue to benefit from a drop in crude prices with the AMEX Airline Index ($XAL) up 2.7 percent Wednesday. The sector was also in the news due to the raised hostile bid for Delta (DALRQ) by U.S. Airways (LCC). However, Delta is also in talks with Northwest Airlines in a possible merger between the two bankrupt airlines. LCC sweetened its deal by $1 billion in cash and has set a Feb. 1 deadline to hear back from Delta creditors.
Jody Osborne

Labels: AA, AAPL, CVX, DALRQ, LCC, MOT, NOK, XAL

US Airways increased the pressure on Delta Air Lines' unsecured creditors to take its buyout offer by raising the bid Wednesday nearly 20 percent to $10.3 billion. Whether the deal would survive regulatory scrutiny may be the deciding factor.
The Tempe, Ariz.-based company also set a Feb. 1 deadline for certain conditions to be met or its entire bid would be revoked.
The ball is now in the creditors' court.
The question is whether they want to take the money US Airways is offering and run the risk of a long regulatory fight, or stick with Delta's plan to emerge from bankruptcy by the middle of this year as a standalone company worth $9.4 billion to $12 billion.
Daniel Golden, a lawyer for Delta's unsecured creditors committee, did not return several phone calls Wednesday seeking comment. Most of the large creditors on the committee have refused to discuss their position publicly, except Delta's pilots union, which opposes the merger.
Delta management has argued that the combination of US Airways and Delta would not receive regulatory approval because of the overlap of the two carriers' routes. US Airways says there wouldn't be any regulatory holdup.
A Jan. 24 hearing has been scheduled by the Senate Committee on Commerce, Science and Transportation on the state of the airline industry and the potential impact of airline mergers.
Ray Neidl, an airline analyst with Calyon Securities in New York, said the increased offer will be more attractive to Delta's creditors, but the great unknown is whether regulators would approve the deal.
"In my opinion, that's going to be the main thing," Neidl said, adding that he gives the US Airways bid a 50-50 chance of being successful.
US Airways Group Inc. Chief Executive Doug Parker told analysts Wednesday there's an easy way to know who is right on the regulatory issues.
"Let's just go ask them and find out," Parker said of regulators. Parker was in Washington on Wednesday to talk to lawmakers.
Delta Air Lines Inc. said in a statement Wednesday that its board will do its duty to review the revised offer by US Airways. But, the Atlanta-based airline added, "On its face, the revised proposal does not address significant concerns that have been raised about the initial US Airways proposal and, in fact, would increase the debt burden of the combined company by yet another $1 billion."
Added Kelly Collins, a spokeswoman for Delta's pilots union, "We remain entirely committed to defending our airline from this hostile merger attempt."
US Airways said it would raise its offer by $1.7 billion from its Nov. 15 bid that was currently valued at $8.6 billion.
The decision to increase the offer was reached over the weekend after US Airways officials met to discuss it. On Monday, the carrier's executives met with Gordon Bethune, the former Continental Airlines chief who is working as a consultant to Delta's creditors committee. Bethune urged US Airways to put its best offer forward, according to an official with knowledge of the meeting who spoke on condition of anonymity because of the sensitivity of the talks.
US Airways shares rose $1.10, or 1.9 percent, to $59 in afternoon trading Wednesday on the New York Stock Exchange, boosting the value of the revised offer.
The increased offer comes just two weeks after Parker told The Associated Press that his company had no intention at the time to increase its bid.
Even so, Parker did not exactly rule out at the time the possibility of changing his mind about the price.
Parker said Wednesday that US Airways was raising its offer to remove any doubt that its bid was worth more than Delta's plan to remain a standalone carrier.
"Right now, we feel very good about our chances of getting this done" despite Delta management's position, Parker said in a conference call with analysts.
Parker said in an interview that Delta's creditors committee did not ask US Airways to raise its offer, but it indicated it was having a hard time reaching a decision.
"We just wanted to make it a much, much easier analysis for them, and today we've done that," Parker said.
US Airways said the increased offer is set to expire on Feb. 1 unless creditors indicate support for the start of the due diligence process, which would open up Delta's books to US Airways. US Airways also wants support by the creditors for postponing a Feb. 7 bankruptcy hearing involving Delta's reorganization plan, and it wants the creditors committee to support both companies filing paperwork with the Justice Department that would start the regulatory process.
Parker said "the offer would go away in its entirety" if those conditions were not met.
Parker also suggested US Airways isn't too worried about Delta management's position.
"We would very much like to see Delta management begin to work with us and support this transaction, but that's not what this proposal is about," Parker said.
The increased bid includes 89.5 million shares of US Airways stock and $5 billion in cash. The original offer included 78.5 million shares of US Airways stock and $4 billion in cash.
Based on the Delta's valuation method, US Airways estimated that its increased bid could actually be worth $12.7 billion to $15.4 billion. Those valuation methods were not disclosed.
Delta's unsecured creditors committee, which will play a key role in deciding the airline's future course, had said prior to Wednesday that it was reviewing both Delta's standalone plan and US Airways' buyout offer.
The committee also has said it would review any offers that came in from other airlines. But as recently as last month, Delta's chief financial officer, Ed Bastian, said there hadn't been any other offers. The Wall Street Journal, citing anonymous sources, reported Wednesday that Delta has been talking with Eagan, Minn.-based Northwest Airlines Corp. about a possible combination. Spokespeople for Delta and Northwest declined to comment.
The Feb. 7 bankruptcy hearing would be to consider approval of Delta's disclosure statement relating to the carrier's standalone reorganization plan.
The disclosure statement includes details on Delta's operations. If the statement is approved, that means Delta can begin soliciting votes on its reorganization plan, which typically takes four to eight weeks.
Parker has said previously that if that hearing were to go forward it could increase the urgency of US Airways' bid because US Airways hopes to consummate its deal to buy Delta before Delta emerges from Chapter 11.
Published by Harry R. Weber, AP Business Writer

Labels: DALRQ.PK, LCC, NWACQ.PK

Wall Street managed a modest gain Wednesday after investors fretted over the impact of falling oil prices but were nonetheless inspired to buy following upbeat news from Alcoa Inc. and Apple Computer Inc.
The market began the session with fresh concern that oil's decline would hurt profits in the energy sector and scare off money from sources like hedge funds that have helped push stocks higher in recent months. Adding to that sense was a profit warning from Chevron Corp. Investors' unease about sliding prices was a marked departure from that seen last summer and in subsequent months, when rising oil raised the specter of a jump in inflation.
Investors eventually turned their attention to bullish news such as word that US Airways Group Inc. raised its bid for Delta Air Lines Inc. by 20 percent to $10.2 billion. They were also pleased by news from Apple, which unveiled long-awaited plans for a mobile phone, as well as by a solid profit report from Alcoa.
"There are good underlying economic fundamentals. The buyers are starting to get a little more courageous in coming off the sidelines," said Al Goldman, chief market strategist with A.G. Edwards & Sons. "Markets take a rest, and the sellers do their dastardly deeds and the buyers become a little more aggressive and then you lift up."
According to preliminary calculations, the Dow Jones industrial average rose 25.56, or 0.21 percent, to 12,442.16.
Broader stock indicators also rose. The Standard & Poor's 500 index rose 2.74, or 0.19 percent, to 1,414.85, and the Nasdaq composite index rose 15.50, or 0.63 percent, to 2,459.33.
Bonds fell on the slide in oil prices and following a report that the U.S. trade deficit narrowed in November. Both trends were seen as boosting the economy, and perhaps leading to a rise in interest rates. The yield on the benchmark 10-year Treasury note rose to 4.69 percent from 4.66 percent late Tuesday.
The dollar was mixed against other major currencies, while gold prices fell.
Wednesday's trading resembled that of Monday, in which stocks were lower for much of the session before moving higher near the close. The gains Monday weren't widespread, however, as advancing issues nearly equaled decliners on the New York Stock Exchange. Volume came to 1.57 billion shares compared with 1.70 billion traded Tuesday.
Light, sweet crude was down $1.62 at $54.02 a barrel on the New York Mercantile Exchange. Prices have been hurt as unseasonably high temperatures have weakened demand in large parts of the U.S and Europe. Oil fell further Wednesday after weekly domestic inventory data from the Energy Department showed a drop of 5 million barrels of crude and an increase of 5.4 million barrels of distillates such as home heating oil.
In economic news, the Commerce Department said the U.S. trade deficit fell for a third straight month in November as exports of products such as commercial airplanes reached a new high and as the cost of importing foreign oil fell to the lowest level in 16 months. The deficit fell 1 percent to $58.2 billion in November.
In corporate news, the concerns about falling oil prices and Chevron's profit warning sent the company's stock down $1.22 to $69.41. The company also cited lower production and lower earnings from its refining business.
US Airways raised its offer for Delta, hoping to pressure the bankrupt airline's creditors to sign off on a deal that Delta has come out against. Investors applauded US Airways' move; the stock rose $1.03 to $58.93. Delta was up 10 cents, or 7.7 percent, to $1.40.
Apple, which announced plans to change its name to Apple Inc. as it continues its move beyond computers, rose $4.43, or 4.8 percent, to $97. The stock hit an all-time high of $97.80 after unveiling its iPhone. The stock's previous high was $93.15.
Aluminum producer Alcoa, one of the 30 stocks that make up the Dow industrials, advanced $1.71, or 6 percent, to $30.23, after reporting late Tuesday that its fourth-quarter profit jumped 60 percent.
Shares of C.A. Nacional Telefonos de Venezuela, or CANTV, rebounded somewhat Wednesday amid reports Venezuela would compensate companies whose assets could be seized under a plan by President Hugo Chavez to nationalize CANTV as well as electrical companies and several oil projects. The company's American Depositary Receipts rose $1.80, or 14.8 percent, to $14. Venezuela's largest telephone company, the only Venezuelan ADR listed on the NYSE, saw a sell-off Monday after Chavez announced the plan; the ADRs had been around $20 before the announcement.
Placer Sierra Bancshares rose $3.66, or 15.6 percent, to $27.19 after the regional bank agreed to be acquired by financial services company Wells Fargo & Co. in a stock swap worth about $645 million. Wells Fargo was off 11 cents at $35.48.
The Russell 2000 index of smaller companies rose 0.54, or 0.07 percent, to 778.87.
Overseas, Japan's Nikkei stock average closed down 1.71 percent. Britain's FTSE 100 closed down 0.57 percent, Germany's DAX index fell 0.72 percent, and France's CAC-40 was down 0.56 percent.
Published by Tim Paradis, AP Business Writer

Labels: AA, AAPL, CVX, DALRQ.PK, LCC, PLSB, WFC

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Genentech (NYSE:DNA - News) beat earnings on Wednesday afternoon, with $0.61 EPS over an expected $0.55 EPS. DNA's PowerRating is 5.
U.S. Airways (NYSE:LCC - News) upped its hostile takeover bid for Delta Airlines to $5 billion in cash. LCC's PowerRating is 5.
Infosys (NASDAQ:INFY - News) reports earnings on Thursday before the open; look for $0.36 EPS. INFY's PowerRating is 6.
M&T Bank (NYSE:MTB - News) announces quarterly earnings on Thursday morning, with analysts expecting $1.88 EPS. MTB's PowerRating is 6.
MGIC Investment (NYSE:MTG - News) is expected to report $1.53 EPS on Thursday before trading begins. MTG's PowerRating is 6.
IHS (NYSE:IHS - News) reports earnings on Thursday afternoon, so watch for heightened price action and volume ahead of the close. IHS's PowerRating is 6.
Oil stocks remain a focus as crude continues to fall steadily. Chevron (NYSE:CVX - News) warned that Q4 revenues will be negatively effected by crude prices. CVX's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: CVX, DNA, Hot Stocks, IHS, INFY, LCC, MTB, MTG

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Genentech (NYSE:DNA - News) beat earnings on Wednesday afternoon, with $0.61 EPS over an expected $0.55 EPS. DNA's PowerRating is 5.
U.S. Airways (NYSE:LCC - News) upped its hostile takeover bid for Delta Airlines to $5 billion in cash. LCC's PowerRating is 5.
Infosys (NASDAQ:INFY - News) reports earnings on Thursday before the open; look for $0.36 EPS. INFY's PowerRating is 6.
M&T Bank (NYSE:MTB - News) announces quarterly earnings on Thursday morning, with analysts expecting $1.88 EPS. MTB's PowerRating is 6.
MGIC Investment (NYSE:MTG - News) is expected to report $1.53 EPS on Thursday before trading begins. MTG's PowerRating is 6.
IHS (NYSE:IHS - News) reports earnings on Thursday afternoon, so watch for heightened price action and volume ahead of the close. IHS's PowerRating is 6.
Oil stocks remain a focus as crude continues to fall steadily. Chevron (NYSE:CVX - News) warned that Q4 revenues will be negatively effected by crude prices. CVX's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: CVX, DNA, Hot Stocks, IHS, INFY, LCC, MTB, MTG

Applied Signal Technology Inc. (NASDAQ:APSG - News) shares fell 15% Tuesday after the company late Monday reported fourth-quarter net income fell to 5 cents a share from 26 cents in the year-earlier period.
Shares in drug giant AstraZeneca (NYSE:AZN - News) slid 3.5% on news that a key patent protecting its top-selling antacid drug Nexium had been shot down by European regulators.
Shares in Circuit City Stores Inc. (NYSE:CC - News) fell 17% after the company reported a surprise third-quarter loss, hurt by price cuts on flat-panel televisions and other consumer electronics that eroded margins.
Delta Air Lines (Other OTC:DALRQ.PK - News) shares dropped 6.1% after the company filed a reorganization plan that valued its business at $9.4 billion to $12 billion, richer than the $8.4 billion merger offer from U.S. Airways Group (NYSE:LCC - News), which it formally rejected.
Fuelcell Energy Inc. (NASDAQ:FCEL - News) shares fell 5% after the company said its fourth-quarter net loss available to shareholders widened to $25.1 million, or 47 cents a share, compared with a net loss of $19.5 million, or 40 cents a share, in the same period last year, mainly due to higher product sales and costs. The Danbury, Conn.-based manufacturer of electric power generation plants said revenue rose 14.7% to $9.13 million from $7.96 million. Analysts polled by Thomson First Call had expected a per-share loss of 35 cents, on revenue of $9 million.
Luby's Inc. (NYSE:LUB - News) shares dropped 4.6% after the Houston-based restaurant operator reported fiscal first-quarter net income of $1.92 million, or 7 cents a share, down from $2.22 million, or 12 cents a share, in the year-ago period. Revenue in the quarter ended Nov. 22 rose slightly, to $73.7 million from $72.6 million, while same-store sales increased 1.7%. Analysts polled by Thomson First Call had forecast a per-share profit of 8 cents.
Nasdaq Stock Market Inc. (NASDAQ:NDAQ - News) shares fell 5.5% after the London Stock Exchange on Tuesday again rebuffed its takeover bid.
Ness Technologies Inc. (NASDAQ:NSTC - News) shares fell 5.6% after the Hackensack, N.J.-based IT services provider said it has agreed to acquire Selesta Espana S.A.U. for 6.25 million euros ($8.2 million). Selesta Espana is a privately held IT software distribution and systems integration company based in Spain. Ness said the deal includes an additional 3.75 million euros to be paid over the next two years based on the achievement of certain performance goals.
Oracle (NASDAQ:ORCL - News) shares sank 4.5% after the company reported fiscal second-quarter sales of new software licenses were less than expected, stoking concerns over the pace of future revenue growth.
Physicians Formula Holdings Inc. (NASDAQ:FACE - News) shares fell 5.2% after the company reported third-quarter net income fell to $223,000 from $589,000 in the year-earlier period.
PSS World Medical Inc. (NASDAQ:PSSI - News) shares dropped 5.8% after the company said it has authorized the repurchase of up to 5% of its outstanding common stock, or roughly 3.4 million shares. As of Sept. 29, the company had around 67.7 million outstanding shares. Jacksonville, Fla.-based PSS World Medical is a distributor of medical products to physicians and elder care providers. The company's shares fell 3.9% to $19.82 in Tuesday morning trade.
Tuesday Morning Corp. (NASDAQ:TUES - News) shares fell 11% after the Dallas-based home accessories retailer revised its 2006 forecast. The company now expects earnings of 78 cents to 84 cents a share on revenue of $905 to $915 million. Same-store sales are expected to fall 7.7% to 8.7% in 2006.
-Marketwatch

Labels: APSG, AZN, CC, FACE, FCEL, LCC, LUB, NDAQ, NSTC, ORCL, PSSI, TUES

By the BullMarket.com Staff
Stocks recorded another solid advance today, with the Dow Jones index hitting another record closing high, the S&P 500 briefly topping the 1,400 mark for the first time in six years, and the Nasdaq composite also at its best levels in years. All three indexes backed off higher intraday levels as the market reacted to the release of last month's FOMC meeting minutes, which showed Federal Reserve governors remain more concerned with inflation than the pace of economic growth. The bond market declined on the news, with the yield on the 10-year Treasury note climbing 5 basis points to 4.62%. Crude oil prices advanced today as well on an Energy Department report of a larger-than-expected decline in U.S. petroleum stocks last week.
The airline industry dominated today's headlines. US Airways Group (NYSE: LCC - News), making an end-run around the management of bankrupt Delta Airlines (Other OTC: DALRQ.PK - News), offered $8 billion to Delta's creditors for the carrier before it emerges from bankruptcy court protection next year. US Airways, also not a stranger to bankruptcy, approached Delta with a merger proposal this summer, but was rebuffed. US Airways' stock jumped 17% on the news. The airline said that if the deal were made after Delta emerges from bankruptcy, it would miss out on more than half of the projected cost savings of the merger.
The news roiled the airline sector, sending the stocks of larger air carriers higher today. Among the gainers were UAL (Nasdaq: UAUA - News), parent of United Airlines; AMR (NYSE: AMR - News), parent of American; Southwest Airlines (NYSE: LUV - News); and Continental Airlines (NYSE: CAL - News). Continental added 12%, while UAL gained 9%. Smaller airlines also attracted buyers. JetBlue Airways (Nasdaq: JBLU - News) rose 7%, while AirTran Holdings (NYSE: AAI - News), which competes head-to-head with Delta on many routes out of Atlanta, jumped 16% after Bear Stearns upgraded the stock to "outperform." We published a detailed report on airline stocks for subscribers this past Friday.
The Dow's advance was aided by Altria (NYSE: MO - News), which gained 1% after an upgrade from Goldman Sachs to "buy" from "neutral." Aircraft maker Boeing (NYSE: BA - News) was another solid gainer for the Dow, adding 2% on reports that strong demand from carriers for its planes could bring the company another $10 billion in orders in the coming weeks.
In the technology sector, Google (Nasdaq: GOOG - News) came within pennies of $500 in intraday trading before closing up just moderately higher. Semiconductor makers Advanced Micro Devices (NYSE: AMD - News) and Texas Instruments (NYSE: TXN - News) helped pace the chip sector, with each rising 2%. Motorola (NYSE: MOT - News), which has been on an acquisition binge of late, tacked on another 3% today.
Sharp gainers on the Nasdaq today included Vanda Pharmaceuticals (Nasdaq: VNDA - News), which rocketed 53% on news of favorable Phase III clinical trial results for its insomnia drug known as VEC-162. Elsewhere, agricultural biotech company Embrex (Nasdaq: EMBX - News) leapt 40% after the animal health division of Pfizer (NYSE: PFE - News) said it agreed to buy Embrex for $17 a share.

Labels: Airlines, AMD, AMR, BA, CAL, DALRQ.PK, EMBX, GOOG, LCC, LUV, MO, MOT, pfe, TXN, UAUA, VNDA

Today Cramer hyped NYSE group once again saying that this stock has the ability to soar.
The bears tried to force the stock down initially," Cramer said. "This stock is going much higher. The bears really hate me for that."
Cramer said the pending acquisition of Euronext is "gonna be a immediately accretive."
"We know how the CME did. The NYSE has really lagged. ... I think it hasn't caught fire yet and I think it will."
Cramer said he likes Yamana Gold because it bought a huge chunk of Viceroy and "they got gold out the ying-ying."
Cramer said he preferred UAL to US Airways.
"I would ring the register and go into UAUA."
As for Blockbuster , Cramer said "the stock goes to $6 in the next 18 months" after signing a deal with Harvey Weinstein to carry his movies. Cramer said he had "hated it from 80 down to 4."
"There's room for both Blockbuster and Netflix.
Finally, Cramer said, "Don't forget Master Card .He called it "the Jackie Wilson stock, higher and higher."

Labels: AUY, BBI, Jim Cramer, LCC, MA, NFLX, NYX, Stop Trading, UAUA, XVE

US Airways Group Inc. made a hostile $8 billion cash and stock bid for Delta Air Lines Inc. on Wednesday, a deal that would create one of the world's largest carriers. The move came despite Delta's repeated statements it isn't interested in a merger.
The offer to buy Delta once the Atlanta-based airline emerges from bankruptcy protection by the middle of 2007 would give Delta's unsecured creditors $4 billion in cash and 78.5 million shares of US Airways stock. Delta has yet to file its own plan of reorganization.

Labels: AMR, Apple Computer Inc., DALRQ.PK, LCC, LUV, UAUA, US Airways Group Inc.