Jim Cramer Blog

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Cutera (NasdaqGS:CUTR - News) beat earnings expectations on Monday afternoon, announcing $0.30 EPS over an expected $0.29 EPS. CUTR's PowerRating (for Traders) is 6.

Novatel Wireless (NasdaqGM:NVTL - News) beat earnings expectations on Monday, with $0.31 EPS over a consensus of $0.28 EPS. NVTL's PowerRating (for Traders) is 5.
Archer-Daniels (NYSE:ADM - News) reports earnings on Tuesday morning, with analysts looking for $0.59 EPS. ADM's PowerRating (for Traders) is 6.
When El Paso (NYSE:EP - News) announces quarterly results on Tuesday before the bell, watch for $0.23 ESP. EP's PowerRating (for Traders) is 5.
Fuel-Tech (NasdaqGM:FTEK - News) should report $0.06 EPS tomorrow morning before the market opens. FTEK's PowerRating (for Traders) is 6.
Analysts are watching for the International Securities Exchange (NYSE:ISE - News) to report $0.53 EPS on Tuesday morning. ISE's PowerRating (for Traders) is 5.
Lear (NYSE:LEA - News) should announce $0.17 EPS tomorrow morning. LEA's PowerRating (for Traders) is 4.

Labels: ADM, CUTR, EP, FTEK, ISE, LEA, NVTL, Stocks to Watch

Charlie Gasparino joined the "Fast Money" crew to discuss his take on the Bear Stearns (BSC) and rumos that Warren Buffett is part of a group of investors considering a 20% stake in BSC. He believes that Bear Stearns is going to be taken private. Guy Adami suggests that it makes no sense at all for Buffett to acquire Bear. According to Adami, Buffet's expertise is in value plays and Bear isn't a value play. Najarian declares that all brokers are back in play and recommends buying Lehman (LEH). Finerman agrees.
An American Icahn
Carl Icahn: Wants to see BEA Systems (BEAS) sold. Motorola (MOT): Bullish on their risk rewards.
GM On The Road Again
General Motors (GM) ended its two-day strike after making a health care agreement with the United Auto Workers. This changes the tune for General Motors, according to Jeff Macke. He advises buying auto parts suppliers like Lear (LEA), Visteon (VC) and BorgWarner (BWA). Adami suggests looking at Ford (F). Najarian prefers Goodyear Tires (GT).
No Deal
Sallie Mae (SLM) made news on Wednesday as a private-equity group pulled out of a deal to buy it for $25.3 billion. Macke: "stick a fork in it." Najarian disagrees and believes the deals are just being re-shifted down. Finerman isn't surprised the deal fell through. One potential deal that has her interest is Genesco (GCO).
Tech Rally
Technology stock leaders are still shining Google (GOOG), Amazon (AMZN), Hewlett Packard (HP), Cisco (CSCO) and Apple (AAPL) with 52 week highs.
Word on the Street
Bed Bath & Beyond (BBBY): Macke advises selling.
Monsanto (MON): Selling at twice its growth rate.
Newmont Mining (NEM): Dropped 6%.
Pops & Drops
Pops: Deere (DE) traded up 3%. Pier One Imports (PIR) popped 11%. China BAK Battery (CBAK) exploded by 46%. Affiliated Managers Group (AMG) traded up 4%.
Drops: Under Armour (UA) fell 6%. Timberland (TBL) dropped 8%.

Final Trade
Macke: recommends selling Bear Stearns (BSC).
Finerman: is positive that BEA Systems (BEAS) is going higher.
Najarian: top pick is Isis Pharmaceuticals (ISIS).
Adami: prefers NYSE Euronext (NYX)

Labels: AAPL, AMZN, BEAS, BSC, BWA, CNBC, CSCO, F, Fast Money, GCO, GM, GOOG, GT, HP, LEA, LEH, MOT, SLM

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.
Nice-Systems (NasdaqGS:NICE - News). NICE's PowerRating (for Traders) 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.
Western Refining (NYSE:WNR - News). WNR's PowerRating (for Traders) is 7.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five 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.
iRobot (NasdaqGM:IRBT - News). IRBT's PowerRating (for Traders) is 9.
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.
AES Corporation (NYSE:AES - News). AES's PowerRating (for Traders) is 4.
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.
Yahoo (NasdaqGS:YHOO - News). YHOO'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.
Lear Corporation (NYSE:LEA - News). LEA'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.
UGI Corporation (NYSE:UGI - News). UGI's PowerRating (for Traders) is 4.

Labels: AES, Hot Stocks, IRBT, LEA, NICE, UGI, WNR, YHOO

The major market averages were mixed today, with the Dow Jones once again setting a new all-time closing high. The S&P and Nasdaq, meanwhile, traded lower. Oil remained high on investor minds as the price of crude traded above $74 a barrel. Investors are awaiting a bevy of earnings reports from some big names later this week.
On the economic front, the Federal Reserve Bank of NY said its general economic index rose to 26.5 from 25.8 the prior month. Any reading above zero marks expansion.
On the M&A front, IHOP (NYSE: IHP - News) agreed to buy casual-dining chain Applebee's International (Nasdaq: APPB - News) for $25.50 a share, or $2.1 billion. The deal is unique given IHOP's smaller market cap. It plans to finance the deal by franchising the vast majority of Applebee's 508 company restaurants. The deal includes a modest 4.6% premium to Applebee's closing price on Friday.
On the earnings front, shares of toy maker Mattel (NYSE: MAT - News) rose 2.5% on the session after the company reported net income of $43.1 million, or 11 cents a share. Revenue rose 7% to $1.02 billion on increased international sales. Burger giant McDonald's (NYSE: MCD - News) reported this morning that same-store sales in restaurants opened at least 13 months rose 7.4% in the second quarter and 8.4% in June. The quarterly rise was the biggest in three years. The world's largest restaurant chain now expects to post earnings of 71 cents a share excluding items, compared to analyst estimates of 68 cents a share. Shares of McDonald's rose 0.4%. Subscribers can read our analysis of McDonald's in today's issue.
In other news, shareholders of Lear (NYSE: LEA - News) rejected plans for a $2.9 billion buyout led by billionaire Carl Icahn. Earlier this month, Icahn's American Real Estate Partners (NYSE: ACP - News) raised its bid to $37.25 a share, but shareholders felt the offer was inadequate. Icahn who already owns 24% of Lear will be granted a termination fee totaling $25 million in cash and stock.
By the BullMarket.com Staff

Labels: ACP, APPB, Carl Icahn, IHP, LEA, MAT, MCD

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.
Lear Corporation (NYSE:LEA - News) & Platinum Holdings (NYSE:PTP - News). LEA's PowerRating is 7, and PTP's PowerRating 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.
Northrop Grunman (NYSE:NOC - News). NOC'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.
Axis Capital Holdings (NYSE:AXS - News) & The Travelers Company (NYSE:TRV - News). AXS's PowerRating is 7, and TRV's PowerRating is 6.
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. Historically, these stocks have provided traders with a significant edge.
Novartis (NYSE:NVS - News). NVS's PowerRating is 4.
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.
Pinnacle Entertainment (NYSE:PNK - News). PNK's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: AXS, Hot Stocks, LEA, NOC, NVS, PNK, PTP, TRV

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

Stocks reversed course in the afternoon session as earnings season wound towards a conclusion. Earlier in the day, the market appeared poised for a rally until Federal Reserve governors William Poole of St. Louis and Richard Fisher of Dallas each said in separate speeches that interest rates could go higher if inflation doesn't taper off. Those comments proved to be the catalyst for the afternoon's selling pressure. Oil prices hovered in the vicinity of $60 a barrel, while bond prices also slipped with the yield on the 10-year Treasury note moving to 4.78%.
MasterCard (NYSE: MA - News) reported results that beat expectations, but the stock dropped -10% after the company warned that margins could come under pressure in 2007 and that it did not plan any price increases. The credit card company said it earned $41 million, or 30 cents a share, compared with a loss of -$53 million, or -39 cents per share, a year earlier. The company's revenue increased 17% to $839 million. The company also upped its quarterly cash dividend to 15 cents a share from 9 cents. MasterCard's shares have more than doubled since its IPO last year.
Automotive stocks were one of the day's stronger performers following upgrades by Deutsche Bank, which raised its rating on both General Motors (NYSE: GM - News) and Ford Motor (NYSE: F - News) to "buy." GM rose 7% and Ford gained 2%. DaimlerChrysler (NYSE: DCX - News), meanwhile, was upgraded to a "buy" by Citigroup and subsequently rose 2%. In the automotive parts sector, Lear (LEA, $xxxxx) agreed to be taken private by an affiliate of investor Carl Icahn for $2.8 billion, though the company left itself open to other bidders. One major investor criticized the price as too low. Lear finished down -2%.
Upgrades to the semiconductor sector by Deutsche Bank and J.P. Morgan failed to keep most stocks in that sector from succumbing to the day's negative tone. Deutsche Bank raised its rating on chip stocks to "overweight," highlighting market leader Intel (Nasdaq: INTC - News) and Broadcom (Nasdaq: BRCM - News). Broadcom last night reported that net income in the most recent quarter fell -76% due to a change in the way it accounts for stock options. Were it not for the one-time charges, the company would have earned $185 million, or 31 cents a share, compared to $197 million, or 34 cents per share. J.P. Morgan raised its rating for the semiconductor sector to "bullish," but the Semiconductor Sector Index (Philadelphia: ^SOXX) nonetheless closed down -1%.
Telecom equipment maker Alcatel-Lucent (NYSE: ALU - News) declined -3% after posting a Q4 loss and warning that it expects revenue to decline in the current quarter. The company also said it plans to cut 3,500 more jobs than originally planned, or 12,500 in total. In other news, a proxy advisory firm suggested shareholders of Caremark RX (NYSE: CMX - News) reject the merger offer from drug-store operator CVS (NYSE: CVS - News). The advisor, Glass Lewis, said that while the deal made strategic sense, Caremark's board should have allowed shareholders to consider a competing offer from Express Scripts (Nasdaq: ESRX - News).
In other earnings news, lumber and paper products company Weyerhaeuser (NYSE: WY - News) reversed a year-earlier Q4 loss. For the most-recent quarter, the company earned $450 million, or $1.88 per share, against a loss of -$211 million, or -86 cents a share, in Q405, which included costs associated with plant closings.
By Bullmarket.com Staff

Labels: ALU, BRCM, CMX, CVS, DCX, ESRX, F, GM, INTC, LEA, MA, WY

Stocks drifted throughout a generally quiet trading day and finally closed mixed. The Dow Jones Industrial Average posted a slim gain, but the broader market averages closed lower. The 10-year Treasury note started off the week by moving higher, while crude oil and natural gas prices continued to climb as cold weather gripped a large portion of the nation.
Private equity investments were once again behind some of the day's sharpest gains. Triad Hospitals (NYSE: TRI - News) surged 15% after announcing that it had agreed to be acquired by CCMP Capital Advisors and GS Capital Partners for approximately $4.7 billion, excluding debt. Investor Carl Icahn, meanwhile, offered $2.8 billion for auto parts maker Lear (NYSE: LEA - News). Investors bid up the stock 11% on news of the $36 a share offer, but one current shareholder told The Wall Street Journal that the offer was "ridiculously low." Fellow auto parts makers like Tenneco (NYSE: TEN - News) and ArvinMeritor (NYSE: ARM - News) also closed higher.
In other merger news, State Street (NYSE: STT - News) announced that it would acquire Investors Financial Services (Nasdaq: IFIN - News) for $4.5 billion in an all-stock deal. Investors Financial shot up 27% on the announcement, but investors frowned on State Street, knocking its shares down -6% in the belief that it was overpaying. The companies each provide a variety of advisory and back-office services to institutional investors.
Health insurer Humana (NYSE: HUM - News) reported that Q4 earnings more than doubled, driven by strength in its Medicare business. The company reported profits of $155 million, or 92 cents per share, compared to $62 million, or 37 cents a share, in the year-ago period. Humana also raised its 2007 outlook. It now expects to earn $4.00-4.20 a share, up from its previous estimate of $3.90-4.10 per share. The nation's largest health insurer, in contrast, slipped today after UnitedHealth Group (NYSE: UNH - News) cut its 2007 revenue forecast, citing slippage in its Medicare-related health plans.
Wal-Mart (NYSE: WMT - News) rose after the company announced on Saturday that expected January same-store sales exceeded its earlier conservative forecast. Wal-Mart said same-store sales rose 2.2% last month, topping its estimate for an increase of 1-2%. Wal-Mart also said that starting with February's results, it will release same-store sales figures on the first Thursday of the following months, putting it on the same schedule as the majority of U.S. retailers.
Nursing home operator Kindred Healthcare (NYSE: KND - News) rose 5% after it was upgraded to a "buy" from "hold" by Stifel Nicolaus. Argonaut Group (Nasdaq: AGII - News), which underwrites specialty insurance products, gained 5% after releasing earnings and being upgraded to a "outperform" by Friedman Billings Ramsey. Argonaut reported a profit of $31 million, or 92 cents per share, in Q4, up from $25 million, or 76 cents per share, in the year-earlier quarter.
By Bullmarket.com Staff

Labels: AGII, ARM, HUM, IFIN, KND, LEA, STT, TEN, TRI, UNH, WMT

Agilysis Inc. (NasdaqGS:AGYS - News) said third-quarter earnings rose 32%, boosted by higher sales of server and storage hardware and software. The Boca Raton, Fla., computer-technology company reported third-quarter earnings of $20 million, or 64 cents a share, up from $15.2 million, or 49 cents a share, a year earlier.
Amkor Technology (NasdaqGS:AMKR - News) was upgraded to buy from neutral at American Technology Research.
Argonaut Group Inc. (NasdaqGS:AGII - News) reported fourth-quarter earnings of $31.4 million, or 92 cents a share, up from a year-ago profit of $25.4 million, or 76 cents a share. Total revenue rose 14.5% at the San Antonio specialty insurer in the three-month period to $243.1 million from $212.4 million in the same period a year earlier.
Asyst Technologies Inc. (NasdaqGM:ASYT - News) was upgraded to buy from neutral at American Technology Research.
Barnes & Noble (NYSE:BKS - News) was upgraded to overweight from neutral at Prudential Equity Group. The firm said the launch of the final Harry Potter book could be a catalyst to improve lackluster sales. "In addition, for each of the last three Harry Potter books, Barnes & Noble shares have performed nicely in the six months leading up to the release date," Prudential said. The broker added that, like other retailers, Barnes & Noble is offering steep discounts on the book, which is due to be released on July 21. "It seems fair to say, with these massive discounts, that none of these retailers will make any money on the book itself. Historically, however, the release has driven significant traffic into the bookstores," it said.
B/E Aerospace (NasdaqGS:BEAV - News) said its fourth-quarter net income fell to $21.7 million, or 28 cents a share, from $62.1 million, or 96 cents a share, in the year-earlier period. Analysts polled by Thomson Financial forecast earnings, on average, of 26 cents a share and sales of $299.1 million. The Wellington, Fla., maker of airplane seats and interiors said its sales in the three months ended Dec. 31 rose 44% to $321.6 million from $222.9 million. B/E Aerospace forecast 2007 earnings of $1.40 to $1.42 a share and sales of $1.4 billion. Its 2008 forecast is for $2 a share in earnings and its 2009 profit is forecast to grow 25%.
Cognizant Technology Solutions Corp. (NasdaqGS:CTSH - News) said fourth-quarter net income rose 21% to $69.5 million, or 46 cents a share, from $57.7 million, or 39 cents a share, a year ago. Excluding stock-based compensation expenses, the provider of information-technology services said Monday it earned 50 cents a share in the latest fourth quarter. Fourth-quarter revenue rose 65% to $424.4 million from $256.9 million. Analysts surveyed by Thomson Financial, on average, expected the Teaneck, N.J., company to earn 43 cents a share on revenue of $405.5 million for the latest fourth quarter.
Crocs Inc. (NasdaqGS:CROX - News) was upgraded to outperform from neutral at Robert W. Baird.
Deckers Outdoor (NasdaqGS:DECK - News) was upgraded to outperform from market perform at Piper Jaffray. The firm lifted its price target on the stock to $65 from $54.
Shares of Dell Inc. (NasdaqGS:DELL - News) rose after Credit Suisse upgraded the PC maker to outperform from neutral. Analyst Robert Semple said the upgrade was based on the belief that Dell will augment its technology with acquisitions, reduce its cost structure and possibly revise its distribution philosophy for certain products. Semple also thinks the company's core U.S. corporate market has bottomed out, and that the reward vs. risk profile in the shares is positive. He raised his stock price target to $28 from $25.
Hanover Compressor Co. (NYSE:HC - News) and Universal Compression Holdings Inc. (NYSE:UCO - News) said their boards have approved a merger that will create a combined company with a market capitalization of $3.8 billion. Under the terms of the deal, Hanover shareholders will receive 0.325 shares of the new company for each share they own, while Universal stockholders will receive 1 share for each of their shares. The companies said they anticipate that Hanover stockholders will initially own 53% of the new company. The companies added that the deal is expected to boost earnings for stockholders of both companies in 2008 and will achieve annualized pre-tax cost savings of around $50 million.
Hercules Offshore (NasdaqGS:HERO - News) said it returned to a fourth-quarter profit after not having tax expenses related to its initial public offering and on international demand for jackup rigs and liftboats. Fourth-quarter net income totaled $35.5 million, or $1.09 a share, while revenue rose to $114.7 million from $48.0 million.
Hewitt Associates Inc. (NYSE:HEW - News) reported fiscal first-quarter earnings of $30.1 million, or 27 cents a share, down from a year-ago profit of $31.5 million, or 29 cents a share. The latest results included a pre-tax severance charge of $16 million and $6 million in higher compensation expense, according to the Lincolnshire, Ill., provider of human resources outsourcing and consulting services. Reported net revenue rose 4% in the latest three months to $726.6 million from $701 million a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 24 cents a share in the December period on revenue of $701 million. The company's board has approved the buyback of up to $750 million worth of its outstanding common shares over the next 24 months.
Hewlett-Packard Co. (NYSE:HPQ - News) said it plans to withdraw the listing of its stock from the Nasdaq Global Select Market to reduce costs of exchange listing fees and administrative burdens related to being listed in two exchanges. The Dow component also agreed to acquire Bristol Technnology, a private company that provides technology to monitor business transactions.
Humana Inc. (NYSE:HUM - News) said its fourth-quarter net profit more than doubled to $155 million, or 92 cents a share, from $61.8 million, or 37 cents a share. Revenue for the period rose 53.6% to $5.46 billion, helped by strong growth in Medicare membership. Analysts at Thomson Financial had forecast earnings of 88 cents a share on revenue of $5.74 billion. The firm also raised its earnings guidance for 2007 to a range of $4.00 to $4.20 a share, from its previous forecast of $3.90 to $4.10 a share.
Kindred Healthcare (NYSE:KND - News) was upgraded to buy from hold at Stifel Nicolaus.
KLA-Tencor Corp. (NasdaqGS:KLAC - News) reported fiscal second-quarter earnings of $90 million, or 44 cents a share, up from a year-ago profit of $76.6 million, or 38 cents a share. The latest results include pre-tax charges totaling $117 million from asset write-downs, acquisitions, net stock-based compensation and restatement activities. Revenue rose in the latest three months to $649.3 million from $487.7 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 71 cents a share in the December period on revenue of $663.1 million.
Kulicke & Soffa Industries (NasdaqGM:KLIC - News) was upgraded to buy from neutral at American Technology Research.
Lear Corp. (NYSE:LEA - News) shares rallied after the automotive parts supplier said billionaire financier and top shareholder Carl Icahn has made an offer to buy all of the company's outstanding stock. The $36-a-share offer from Icahn represents a 3.8% premium over the stock's Friday closing price.
Published By MarketWatch

Labels: AGII, AGYS, AMKR, ASYT, BEAV, BKS, CROX, CTSH, DECK, DELL, HC, HERO, HEW, HPQ, HUM, KLAC, KLIC, KND, LEA, UCO

Wall Street was narrowly mixed Monday as lingering concerns about the economy offset better-than-expected sales from Wal-Mart Stores Inc. and a flurry of acquisition activity.
Dow Jones industrial Wal-Mart rose after the world's largest retailer said it expected January same-store sales to rise 2.2 percent. Tempering the gain was its projection that sales performance is on track to deliver the lowest growth rate in more than 25 years.
Meanwhile, Wall Street absorbed news of a spate of acquisition and private equity deals -- the largest amount since the start of the year. Triad Hospitals Inc. and Herbalife Ltd. received offers from private equity funds, while State Street Corp. agreed to buy Investors Financial Services Corp.
Investors had little reaction to new data that suggests continued economic growth, which could disrupt the Federal Reserve's plans to ease the economy this year. The Institute of Supply Management's non-manufacturing index, which covers the service sector, increased more than analysts were forecasting.
The market ended mixed Friday after a weaker-than-expected employment report curbed investors' bullish sentiment following three days of straight gains. Also squeezing stocks was continued strength in oil prices, which flirted with $60 per gallon as a cold snap hit the Northeast.
"We're just going to have a topsy-turvy market until investors figure out which direction to take," said Todd Leone, managing director of equity trading for Cowen & Co. "We're seeing some buying come back into the market because there still is a lot of money on the sidelines. And, all these deals announced are really helping the market out."
In late morning trading, the Dow rose 6.65, or 0.05 percent, to 12,646.84.
Broader stock indicators fell. The Standard & Poor's 500 index was down 1.44, or 0.10 percent, at 1,446.95, and the Nasdaq composite index fell 3.09, or 0.12 percent, to 2,472.79.
Treasuries largely shrugged off the ISM numbers. Bonds rose, with the yield on the benchmark 10-year Treasury note down to 4.80 percent from 4.82 percent late Friday.
A barrel of light sweet crude rose 63 cents to 59.62 on the New York Mercantile Exchange. The dollar was mixed against other major currencies, while gold prices up.
Wal-Mart rose 58 cents to $48.66 after it announced same-store sales topped its prior forecast for a 1 percent to 2 percent gain. The retailer said colder temperatures in January drove sales of seasonal items.
Triad Hospitals agreed to go private in a $4.7 billion deal from affiliates of CCMP Capital Advisors and Goldman Sachs affiliate GS Capital Partners. Shares surged $6.61, or 15.3 percent, to $49.88.
Nutritional supplement maker Herbalife said it received an acquisition proposal from private investment fund Whitney V LP that values the company at about $2.7 billion. The company said it is reviewing the offer, and its shares spiked $7.04, or 21.3 percent, to $40.14.
Billionaire financier Carl Icahn made a $2.43 billion offer for auto parts supplier Lear Corp. Shares jumped $4.34, or 12.5 percent, to $39.01.
State Street shares fell $3.53, or 4.9 percent, to $68.22 after the custody bank said it would buy Investors Financial Services for about $4.5 billion in stock. The deal, which comes as rivals Mellon Financial Corp. and Bank of New York Corp. plan to combine, sent shares of IFS up $13.95, or 29.7 percent, to $60.90.
Advancing issues led decliners by 4 to 3 on the New York Stock Exchange, where volume came to 398 million shares.
The Russell 2000 index of smaller companies was down 1.53, or 0.19 percent, at 807.89. The index surpassed the 800 mark for the first time last week.
Overseas, Japan's Nikkei stock average closed down 1.15 percent. In afternoon trading, Britain's FTSE 100 was up 0.04 percent, Germany's DAX index fell 0.19 percent, and France's CAC-40 was up 0.10 percent.
Published by Joe Bel Bruno, AP Business Writer

Labels: HLF, Hot Stocks, IFIN, LEA, MEL, STT, TRI, WMT

Lear (NYSE: LEA - News), Time Warner (NYSE: TWX - News), WCI Communications (NYSE: WCI - News), Lennar (NYSE: LEN - News)
Cramer says that it is a good idea to piggyback off of financial wizards such as Carl Icahn who made good calls with Lear and TWX and is currently buying WCI. However, he stressed that it is important to understand why Icahn likes this upscale homebuilder which owns 86% of its properties. Cramer notes that WCI is sitting on a pile of real estate, is selling at below book value, and predicts that the stock will eventually be more valuable than the properties. While some are worried about Florida real estate, Cramer observes that Lennar recently made a successful Florida investment. An important rule in piggybacking, says Cramer, is to wait for the hype to pass before investing; Icahn bought WCI when it was four points lower, andit is now nearly $22.

Genentech (NYSE: DNA - News)
After enjoying a successful year, DNA is lower than it has been in the last 14 months, and Cramer attributes this to the market's subjectivity, especially since the company was expected to see 30% growth and it actually reported 70% growth. Cramer explained that the factors affecting the movement of a stock are its earnings and its multiple. Since DNA reported strong earnings, its multiple, or what people are willing to pay for the earnings, must have been a factor in its decline. A multiple is affected by three kinds of risk: political, earnings and inflation. Cramer eliminated earnings risks from the equation, said that inflationary risks affect future earnings and have peaked, and that worries about the Democrats hurting DNA have abated. Cramer concluded that DNA is heading back up to where it was 14 months ago, called it a best-of-breed biotech stock with a great pipeline. His conservative estimate is that DNA will go to $104 from $87.53 and his bullish figure is $140.

Sell Block:Guess? (NYSE: GES - News), XM Satellite Radio (NASDAQ: XMSR - News), Interpublic Group of Companies (NYSE: IPG - News), Deere (NYSE: DE - News)
Cramer would sell Guess after it rose 38.7% since his initial recommendation. He would get rid of XMSR because it has "run out of steam." Although IPG may have some upside, Cramer would take profits and sell it. He has liked DE for a long time, but Cramer says that it is time to say goodbye. Although it might go up an other 8 points, Cramer says that this $100 stock has given its investors substantial profits.Mad Mail: Apple (NASDAQ: AAPL - News)
Cramer disagrees with an Investors' Business Daily bullish call on tech; "I like IBD very much but think they are wrong here," he said. When asked who is selling Apple, Cramer says that the shorts are putting pressure on the stock, adding that it should not have risen 8 points on the release of iPhone and its negative guidance may be bringing it down. However, he would build a position on the stock as it declines.

Pubished By SeekingAlpha

Labels: AAPL, DE, DNA, GES, IPG, Jim Cramer, LEA, LEN, Mad Money, TWX, WCI, XMSR

Yum Brands (NYSE: YUM - News), Chipotle Mexican Grill (NYSE: CMG - News), Jack in the Box (NYSE: JBX - News): "Mexican is the new pizza" declares Cramer, noting that Yum Brands, the owner of Taco Bell, has been up in spite of restaurant closings caused by an E.Coli outbreak. He believes that YUM is well-run, notes that CMG is "on fire" and JBX is doing well after a similar E. coli scare a few years ago.
Halliburton (NYSE: HAL - News), Core Labs (NYSE: CLB - News) and Baker Hughes (NYSE: BHI - News): Cramer bemoans the fact that HAL is "the most hated stock on Earth" while its competitors are moving up, and he comments that this disparity can't go on forever.
Ford (NYSE: F - News), Delphi (Other OTC: DPHIQ.PK - News), Johnson Controls (NYSE: JCI - News) and Lear (NYSE: LEA - News): Cramer would get rid of Ford because a convertible offering will knock the common stock down from $7.40 to $6.50. "I'm giving common stock an F,"he said, and would also stay away from Delphi because its common stockholders will not reap the benefits of a comeback. If auto-parts thrive again, Cramer would get into JCI or LEA instead.

Labels: BHI, CLB, CMG, F, HAL, JBX, JCI, Jim Cramer, Jim Cramer's Stop Trading, LEA, YUM

Yum Brands (YUM) is a terrific way to play the rise of Mexican restaurants, Jim Cramer said Wednesday on CNBC's Stop Trading! segment.
Cramer said the owner of the Taco Bell chain has been up in recent days in spite of an E. coli outbreak that caused some of its restaurants to be shuttered briefly in New York and New Jersey. Cramer said Yum deserves to be up, though, because the chain is well run and it's poised to cash in on Americans' embrace of Mexican food.
"Mexican is the new pizza," Cramer said. He noted that Chipotle Mexican Grill (CMG) is "on fire" and says he also likes Jack in the Box (JBX), which has recovered from the effects of an E. coli outbreak in the Northwest years ago.
Cramer lamented that Halliburton (HAL) remains "the most hated stock on earth" even as rival oil services names from Core Labs (CLB) to Baker Hughes (BHI) enjoy a sharp rally. Cramer said he believes that divergence has to come to an end some time.
Cramer said he would sell Ford (F) common shares into a big convertible offering. He says the terms of the convert should push the common stock down to $6.50 from a recent $7.40. "I'm giving the common stock an F," Cramer said, playing principal for moment.
He also warned investors away from common shares of bankrupt auto-parts maker Delphi (DPHIQ), saying he fears holders of those securities won't participate in any success of the company's turnaround efforts. He said if there is an actual revival in the auto-parts business, rivals Johnson Controls (JCI) and Lear (LEA) are better bets.

Labels: BHI, CLB, CMG, DPHIQ, F, HAL, JBX, JCI, Jim Cramer, Jim Cramer's Stop Trading, LEA, YUM

Here are 7 stocks to watch for today. This list comes directly from the TradingMarkets Stocks Indicators page.
Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
American Electric Power (NYSE:AEP - News). AEP's PowerRating is 6.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Talk America Holdings (NASDAQ:TALK - News). TALK's PowerRating is 7.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term up trends.
Lear Corp (NYSE:LEA - News). LEA's PowerRating is 9.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order to qualify as a "Trading Window" candidate, we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average.
Colgate-Palmolive (NYSE:CL - News). CL's PowerRating is 6.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Coventry Health Care (NYSE:CVH - News). CVH's PowerRating is 3.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Apollo Group (NASDAQ:APOL - News). APOL's PowerRating is 3.
Trading Where the Action Is: This list contains the most volatile stocks over the past 50 trading days. These stocks are only for the most aggressive traders who are willing to assume a high degree of risk in order to capture larger gains.
New River Pharmaceuticals (NASDAQ:NRPH - News). NRPH's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: AEP, APOL, CL, CVH, LEA, NRPH, TALK

Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
American Electric Power (NYSE:AEP - News). AEP's PowerRating is 6.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Talk America Holdings (NASDAQ:TALK - News). TALK's PowerRating is 7.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term up trends.
Lear Corp (NYSE:LEA - News). LEA's PowerRating is 9.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order to qualify as a "Trading Window" candidate, we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average.
Colgate-Palmolive (NYSE:CL - News). CL's PowerRating is 6.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Coventry Health Care (NYSE:CVH - News). CVH's PowerRating is 3.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Apollo Group (NASDAQ:APOL - News). APOL's PowerRating is 3.
Trading Where the Action Is: This list contains the most volatile stocks over the past 50 trading days. These stocks are only for the most aggressive traders who are willing to assume a high degree of risk in order to capture larger gains.
New River Pharmaceuticals (NASDAQ:NRPH - News). NRPH's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: AEP, APOL, CL, CVH, LEA, NRPH, TALK