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 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 8.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Abraxis Bioscience (NasdaqGS:ABBI - News). ABBI's PowerRating (for Traders) is 2.
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.
Advanced Medical Optics (NYSE:EYE - News). EYE'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.
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.
The Knot (NasdaqGM:KNOT - News). KNOT'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.
Accredited Home Lenders (NasdaqGS:LEND - News) & Krispy Kreme (NYSE:KKD - News). LEND's PowerRating (for Traders) is 2, and KKD's PowerRating (for Traders) is 2.
Published By TradingMarkets.com

Labels: ABBI, EYE, Hot Stocks, KKD, KNOT, LEND, WNR, YHOO

Here are 7 options to watch for Today.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
CME Group Oct 610 Calls (NYSE:CME - News). CME's PowerRating (for Traders) is 6.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Google Sep 520 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Accredited Home Lenders Oct 10 Calls (NasdaqGS:LEND - News). LEND's PowerRating (for Traders) is 3.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Intuitive Surgical Oct 185 Puts (NasdaqGS:ISRG - News). ISRG's PowerRating (for Traders) is 7.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
ImClone Systems (NasdaqGS:IMCL - News). IMCL's PowerRating (for Traders) is 2.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
KeyCorp (NYSE:KEY - News). KEY's PowerRating (for Traders) is 4.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Toll Brothers (NYSE:TOL - News). TOL's PowerRating (for Traders) is 6.
By TradingMarkets Research

Labels: Accredited Home Lenders Holding Co., CME, GOOG, IMCL, ISRG, KEY, LEND, stock options, TOL

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 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.

NxStage Medical (NasdaqGM:NXTM - News) & United Fire & Casualty (NasdaqGS:UFCS - News). NXTM's PowerRating (for Traders) is 7, and UFCS's PowerRating (for Traders) 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.
Southwest Water (NasdaqGS:SWWC - News). SWWC's PowerRating (for Traders) is 7.
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.
Accredited Home Lenders (NasdaqGS:LEND - News). LEND'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.
Cutera (NasdaqGS:CUTR - News). CUTR'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.
JDS Uniphase (NasdaqGS:JDSU - News). JDSU'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.
Rackable Systems (NasdaqGS:RACK - News). RACK's PowerRating (for Traders) is 2.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: Accredited Home Lenders Holding Co., CUTR, Hot Stocks, JDSU, LEND, NXTM, RACK, SWWC, UFCS

Shares of Accredited Home Lenders Holding Co. sank at the opening bell Monday after an investment fund backed away from a deal to buy the battered mortgage lender.
A hedge fund called Lone Star Fund V LP in June offered to buy the San Diego-based home lender for $400 million, or $15.10 per share. That price represents an enormous premium to Accredited Home Lenders' stock.

On Friday, Lone Star told the company the fund is no longer interested in the deal. Lone Star cited "the drastic deterioration in the financial and operational condition of the company, among other things."
Accredited sued Lone Star, claiming the agreement the fund signed said it could not back away from the deal because of issues affecting the entire sector, as opposed to the issues affecting just the company.

Labels: Accredited Home Lenders Holding Co., LEND

Here are 7 options to watch for today. This list comes directly from the TM Options Indicators page and is created using OptionVue options analysis software.
TradingMarkets subscribers can obtain the full list of candidates and learn how to apply the results in actual trading by clicking on the individual links. Subscribers can also access the TradingMarkets Stock Indicators page, which is based upon our latest quantitative research, and the Market Bias Indicators, to help determine short-term market direction. Futures traders can access our daily Futures Indicators lists.


Most Underpriced Calls
These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced. Goldman Sachs Oct 220.0 Calls (GS)
Most Underpriced Puts
These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.Accredited Lenders Sep 15 Puts (LEND)
Most Overpriced Calls
These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.Baidu.com Sep 230.0 Calls (BIDU)
Most Overpriced Puts
These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.Bear Stearns Sep 90.0 Puts (BSC)
Stocks with Abnormal Call Volume
These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.Petoleo Brasileiro (PBR)
Stocks with Abnormal Put Volume
These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.iShares Nasdaq Biotechnology (IBB)
Abnormal Put/Call $ Volume
These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.Netgear (NTGR)

Labels: BIDU, BSC, GS, IBB, LEND, PBR, stock options

Accredited Home Lenders Holding Co. said Friday it received the necessary regulatory approvals for the tender offer related to its acquisition by Lone Star Fund V L.P.
Last month Lone Star extended until Aug. 14 its tender offer to buy the Calabasas, Calif.-based mortgage lender for $15.10 per share, or $400 million. The initial offer was launched in June.
Lone Star said on July 30 that Accredited Home Lenders' shareholders had tendered 8.2 million shares, or less than a third of the company's outstanding stock.
Accredited Home Lenders has been fairing better than others in the struggling mortgage industry of late, primarily due to the Lone Star offer. Shares of many mortgage lenders have dropped to near multiyear lows on subprime mortgage concerns and eroding credit quality.

Labels: Accredited Home Lenders Holding Co., LEND

By the BullMarket.com Staff
The Dow, Nasdaq, and S&P 500 all started the week up despite some concerns that China and the factory orders report would drive U.S. stocks down. New highs again marked the close of both the Dow and S&P 500, and all three indices are on track to post their best quarter in at least three years. Stocks in Shanghai took another tumble as the government continues to try and control the stock market. The Shanghai Composite Index dropped -8.3% overnight, but the effect seemed minimal as most other Asian markets closed up, including five record highs. Factory orders grew in April, but the gains were weaker than expected. New orders increased by only 0.3%, which was the smallest gain in three months. Analysts had expected gains of up to 0.8%. While the overall gains were weak, analysts were encouraged by the 2.1% growth for non-defense capital goods excluding aircraft. This sub-metric is considered a good read on business investment.

M&A news once again dominated the headlines. Palm Inc. (Nasdaq: PALM ) signed a deal with private equity firm Elevation Partners for the firm to buy 25% of the smartphone manufacturer. As part of the deal, two Palm executives will resign and shareholders will receive a special $9 per share distribution. Analysts have noted that Palm is facing more competition in the smartphone market lately and it will only get worse as Apple's (Nasdaq: AAPL) iPhone prepares to release at the end of the month. Palm is also adding former Apple hardware engineer Jon Rubenstein to its board as executive chairman. Mr. Rubenstein has settled with the SEC in an investigation surrounding his role in Apple's backdating issues. He paid a fine without admitting guilt. Mr. Rubenstein most notably ran the iPod division from 2004-2005.
Private equity fund Lone Star V LP has entered into an agreement to buy Accredited Home Lenders (Nasdaq: LEND) for $15.10 per share, or a total of approximately $400 million in cash. This is a 10% premium over the stock's Friday close of $13.76. Accredited offers loans to high-risk borrowers, more commonly known as subprime mortgages. This industry, of course, recently suffered a well-publicized collapse.
Telecommunications equipment company Avaya (NYSE: AV), meanwhile, is said to be near closing its deal with private equity firms TPG Capital LLP and Silver Lake Partners. While the deal is not finalized and Avaya could still fall to another suitor, the private equity group seems to be in the leading position.
News Corp (NYSE: NWS) Chairman Rupert Murdoch met with the Bancroft family, who own a controlling interest in Dow Jones (NYSE: DJ), publishers of the The Wall Street Journal. The Bancroft family has been reluctant to meet with Mr. Murdoch, who has made overtures of late trying to buy the company. While the family has been reluctant to sell its stake, this meeting may represent a warming towards the purchase.
According to reports, American Express (NYSE: AXP) is planning to sell its private banking unit within the next one to two weeks. The unit could be worth between $1 and $2 billion. While no suitors have been named publicly, analysts believe that a large international bank could be the purchaser.
Struggling Puerto Rican lender Doral (NYSE: DRL), who last month agreed to be bought out by a private equity fund run by Bear Stearns (NYSE: BSC), has received a rival bid. Privately held FBOP Corp. has made an offer of $1.41 per share in order to take an 80% stake in the lender. This is more than twice what Bear Stearns offered in May.

Labels: AAPL, AV, AXP, BSC, DJ, iPhone, LEND, NWS, PALM

Symbol
Name
Last Trade
Change
Volume
Related Info
CZA
CLYMR/ZACKS MDCAP CR
25.43 12:05PM ET
14.95 (142.65%)
300
Chart, , More
KELYB
KELLY SERVICES CL
35.8499 10:49AM ET
9.7619 (37.42%)
100
Chart, , More
FMDA
FUTUREMEDIA ADR
1.4516 12:36PM ET
0.2916 (25.14%)
599,278
Chart, Profile, More
IHT
INNSUITES HOSP SBI
1.50 12:30PM ET
0.30 (25.00%)
20,200
Chart, Profile, More
LEND
ACCREDITED HOME LE
10.29 12:37PM ET
1.81 (21.34%)
7,912,946
Chart, Profile, More
JMBAW
JAMBA INC WARRANTS
3.7499 12:15PM ET
0.6099 (19.42%)
69,772
Chart, , More
VHI
VALHI INC
17.5399 12:29PM ET
2.6399 (17.72%)
151,200
Chart, Profile, More
CIMT
CIMATRON ORD SHS
3.77 12:36PM ET
0.55 (17.08%)
458,003
Chart, Profile, More
PSIT
PSI TECH HLDGS ADS
1.70 12:30PM ET
0.24 (16.44%)
2,375
Chart, Profile, More
IDMI
IDM PHARMA INC
4.33 12:37PM ET
0.53 (13.95%)
105,508
Chart, Profile, More
IRBT
IROBOT CORPORATION
14.9485 12:37PM ET
1.7585 (13.33%)
411,409
Chart, Profile, More
TAGS
TARRANT APPAREL GR
2.12 12:37PM ET
0.24 (12.77%)
149,718
Chart, Profile, More
CEGE
CELL GENESYS INC
4.86 12:37PM ET
0.55 (12.76%)
13,970,426
Chart, Profile, More
TRIS
TRI-S SECURITY CORP
2.50 12:26PM ET
0.07 (2.88%)
13,800
Chart, Profile, More
FVRL
FAVRILLE, INC.
3.50 12:37PM ET
0.34 (10.76%)
222,857
Chart, Profile, More
AAU
ALMADEN MINERALS LTD
2.31 12:31PM ET
0.24 (11.59%)
135,800
Chart, Profile, More
ENA
ENOVA SYSTEMS INC
5.18 12:31PM ET
0.60 (13.10%)
50,900
Chart, Profile, More
LAYN
LAYNE CHRISTENSEN
41.40 12:37PM ET
4.41 (11.92%)
756,522
Chart, Profile, More
PSMT
PRICESMART INC
17.00 12:35PM ET
1.64 (10.68%)
48,030
Chart, Profile, More
ONSM
ONSTREAM MEDIA CORP
2.31 12:29PM ET
0.07 (3.12%)
167,605
Chart, Profile, More

Labels: AAU, CEGE, CIMT, CZA, ENA, FMDA, FVRL, IDMI, IHT, IRBT, JMBAW, KELB, LAYN, LEND, ONSM, PSIT, PSMT, TAGS, TRIS, VHI

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
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Gateway (NYSE:GTW - News). GTW's PowerRating is 5.
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.
Systemax (NYSE:SYX - News). SYX's PowerRating is 7.
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.
Apex Silver Mines (NYSE:SIL - News). SIL's PowerRating is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Molex (NasdaqGS:MOLX - News). MOLX's PowerRating is 4.
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.
Biotech HOLDRS (NYSE:BBH - News) & Foot Locker (NYSE:FL - News). BBH's PowerRating is 3, and FL's PowerRating 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.
Accredited Home Lenders (NasdaqGS:LEND - News). LEND's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: BBH, FL, GTW, LEND, MOLX, SIL, SYX

Stocks followed Monday's strong move higher with a somewhat more cautious rally today, though all three major indexes closed in the green. Better-than-expected housing starts numbers accounted for some of the positive bias, while the Federal Reserve's policy meeting, which got underway today and will result in a decision tomorrow afternoon, added a note of uncertainty to the day's trading.
With recent data pointing to a potential economic slowdown exacerbated by softness in the housing market but offset by inflation numbers above the Fed's typical comfort zone, investors are keen to get a glimpse into the Fed's thinking with regard to interest rates. The Fed is almost certain to hold rates steady tomorrow, but the accompanying statement will be parsed with an eye for a shift in posture on future policy.
In corporate news, embattled smartphone maker Palm (Nasdaq: PALM - News) was the subject of buyout speculation. Though once a leader in the smartphone space, the company has fallen behind rivals like Research in Motion (Nasdaq: RIMM - News) and engaged Morgan Stanley to pursue strategic options. Reports indicate that Nokia (NYSE: NOK - News) is presently the top bidder, but Motorola (NYSE: MOT - News) as well as private equity firms are also interested.
In other M&A news, IT firm Affiliated Computer Services (NYSE: ACS - News) surged 17% after receiving a $5.93 billion bid from an investment group led by the company's founder and chairman. Meanwhile, jewelry retailer Claire's Stores (NYSE: CLE - News) confirmed an agreement to be acquired by private equity firm Apollo Management for $33 per share. Apollo was reportedly the only remaining buyer after other bidders dropped out of an auction for the retailer.
Accredited Home Lenders Holding (Nasdaq: LEND - News) continued to recover from its recent drubbing, as the subprime lender advanced 20% on news that the company had received a commitment for a $200 million loan from Farallon Capital Management. The funding will give the company more time to track down longer-term funding after a recent credit crunch due to mounting subprime mortgage defaults and late payments.
In tech news, memory chip firm Rambus (Nasdaq: RMBS - News) moved 6% higher after the Federal Trade Commission put off restrictions preventing the company from collecting certain royalties. The FTC had planned to limit Rambus' royalty payments after the agency ruled last year that the company had deceived a standards-setting committee. Meanwhile, flash memory maker SanDisk (Nasdaq: SNDK - News) gained 5% and network equipment maker Juniper Networks (Nasdaq: JNPR - News) jumped 4% after each received analyst upgrades.
By the BullMarket.com Staff

Labels: ACS, CLE, JNPR, LEND, MOT, NOK, PALM, RIMM, RMBS, SNDK

Accredited Home Lenders (LEND, 9.43) said Friday it reached an agreement to sell $2.7 billion of loans to help ease recent pressures from margin calls. The subprime mortgage lender also said it will not file its annual report by Friday as previously announced. Its shares traded higher on the news, gaining more than 30% in pre-market activity.
The stock hit a low on Tuesday, amid growing concerns that the problems facing the subprime mortgage market will spread to the prime mortgage market, but rose sharply in the following two days on speculation that the company would receive additional funding.
While we remain more optimistic and are not jumping on the subprime bandwagon, we would remain on the sidelines with Accredited given its substantial exposure to the lower-quality loans and increased headline risk.
Terms of the sale include a holdback reserve of approximately $40 million to satisfy all future claims against the loans, including early payment defaults. Claims in excess of the holdback reserve will have to recourse against the company. The sale is expected to be completed over the next couple of days.
Accredited said the transaction included substantially all of its loans held for sale that are currently funded out of its warehouse and repurchase credit facilities, asset-backed commercial paper facility, and its equity. The sale of its loans will provide additional liquidity and facilitate the company's efforts to continue its previously announced intention to explore strategic options, including potentially raising additional capital.
--Richard Jahnke, Briefing.com

Labels: Accredited Home Lenders Holding Co., LEND

New economic data offered a relatively stable level of inflation, but investors took a pessimistic view of the numbers and sent stocks lower on the day. The disappointment stemmed in part from the fact that, while recent data has been pointing to a softening economy, inflation pressure is still being felt. All three major indexes closed moderately lower on the day
Looking at the numbers, the Labor Department's Consumer Price Index (CPI) rose 0.4% in February, ahead of the 0.3% expected by Wall Street. The closely watched core rate, which excludes volatile food and energy prices, was up 0.2%, matching expectations. Coming on the heels of yesterday's Producer Price Index (PPI) numbers, which pointed to some inflationary pressure, the CPI numbers left investors on edge.
In corporate news, several subprime mortgage stocks once again posted outsized gains as the crisis in that sector continues to shake out. Accredited Home Lenders (Nasdaq: LEND - News) added another 16% on top of yesterday's big gains after announcing that it would sell some of its loans at a discount, enabling it to meet looming margin calls. Fremont General (NYSE: FMT - News) tacked on 20% after its credit line with Credit Suisse was boosted by $1 billion.
Elsewhere, in the wake of the January announcement from the Federal Deposit Insurance Corp. delaying its review of bank charter applications from Wal-Mart (NYSE: WMT - News), the retailer has scrapped long-held plans to establish a bank. Wal-Mart's plans had come under fire because, among other arguments, some believe a Wal-Mart bank would have an unfair advantage over traditional banks. Wal-Mart has argued all along that it never intended to open its own bank, but that it sought to be classified as one in order to reduce credit and debit card transaction costs. Home Depot (NYSE: HD - News), which also has a pending application, has not abandoned its efforts.
In other news, CVS (NYSE: CVS - News) moved one step closer to completing its marathon effort to acquire pharmacy benefits manager Caremark Rx (NYSE: CMX - News) after Caremark shareholders approved CVS' $26.5 billion offer. CVS had been engaged in a long-running bidding war with Express Scripts (Nasdaq: ESRX - News) over Caremark.
Elsewhere in M&A, crude oil tanker company OMI Corp (NYSE: OMM - News) jumped 14.5% after management said it was considering putting the firm up for sale. Newmont Mining (NYSE: NEM - News), meanwhile, posted a modest gain after a BusinessWeek report suggested it might be a target of Barrick Gold (NYSE: ABX - News), the world's biggest gold producer. Barrick, however, dismissed the speculation.
Finally, tech giant Hewlett-Packard (NYSE: HPQ - News) announced the biggest stock buyback in its history, authorizing the repurchase of $8.0 billion in shares. The new authorization comes on top of the $3.3 billion HP had remaining, as of January 31st, under its prior $6.0 billion repurchase plan, which was approved in August 2006. The tech leader finished the session only slightly higher on the news.

Labels: ABX, CMX, CVS, ESRX, FMT, HD, HPQ, LEND, NEM, OMM, WMT

Goldman Sachs (NYSE: GS - News), Bear Stearns (NYSE: BSC - News), Lehman Brothers (NYSE: LEH - News), Bear Stearns (NYSE: BSC - News), Merrill Lynch (NYSE: MER - News), Accredited Home Lenders (NasdaqGS: LEND), and IndyMac (NYSE: NDE - News)
Cramer comments that companies are jumping onto the defaulted loan bandwagon, as Bear Stearns and other brokers “are moving mortgages to distressed debt, marking them up really big and giving you a better coupon ... having sold paper on the fly of defaulted, bankrupt and criminal savings and loans, I can tell you that's a lot better than selling paper that's involving people who own homes." When Gregg Greenberg asked Cramer to rate the top brokers in light of the subprime worries, he said Goldman Sachs is #1, and added people have yet to see the good in mortgages. GS is profiting from LEH and BSC reports, and Cramer predicts the stock will go back to $250 from $200. BSC earns the #2 position because it is "much more proactive than Lehman in terms of turning the mortgage morass into something really positive." For people who want a short play, Cramer suggests MER because it is just getting into mortgages and is not proactive. Cramer says the rally in LEND and NDE was short-covering. Concerning his dirty dozen list yesterday, Cramer emphasized that he is not saying that every company deserves to be on the list. In fact, Cramer says he is more likely to be long than short some of the listed stocks.
Published By SeekingAlpha

Labels: BSC, GS, Jim Cramer, LEH, LEND, MER, NDE, Wall Street Confidential

Stocks traded in a fairly narrow range today following Tuesday's plunge and Wednesday's late-day recovery. The day began with data showing a bigger-than-expected jump in producer prices, but some big-name M&A activity helped take the edge off inflation-related investor nervousness. The major indices all closed slightly higher.
Looking at the day's economic data, the Producer Price Index (PPI) jumped by 1.3% in February, well above economist expectations, and the closely watched core rate, which excludes volatile food and energy costs, jumped 0.4% compared to the 0.2% rise that had been expected. The concern here is that further data confirming this outlook for inflation will make the Fed less likely to lower interest rates later this year, as many investors are hoping. The more influential Consumer Price Index (CPI) number will be released tomorrow, and investors will be watching to see if it tracks closely with today's PPI numbers.
In merger news, electronic commodities trading platform Intercontinental Exchange (NYSE: ICE - News) made public an unsolicited bid worth $9.9 billion for Chicago Board of Trade parent CBOT Holdings (NYSE: BOT - News). CBOT rose 17% on the news, while Intercontinental dropped -3%. The announcement also pushed Nymex Holdings (NYSE: NMX - News), parent of the rival New York Mercantile Exchange, 5% higher.
In tech news, Cisco Systems (Nasdaq: CSCO - News) announced it will pay $3.1 billion in cash, or $57 a share, for online videoconferencing firm WebEx Communications (Nasdaq: WEBX - News). Excluding WebEx's cash, the deal is worth $2.9 billion. The deal continues Cisco's trend of moving beyond the router and equipment business to providing a wider array of networking services. WebEx gained 22% on the news, while Cisco finished little changed.
Subprime lenders remained highly volatile, and several beaten-down stocks in the sector recorded eye-popping gains as acquirers appeared to be massing on the sidelines, readying bids for these now cheap companies. Leading the pack was Accredited Home Lenders (Nasdaq: LEND - News), which climbed 56% on the day, but Novastar Financial (NYSE: NFI - News) and Fremont General (NYSE: FMT - News) also registered big gains.
One of those potential buyers is Bear Stearns (NYSE: BSC - News), which reported FQ1 earnings today and said it would consider buying subprime lenders or pieces of their portfolios at the depressed prices offered by the recent market turmoil. Bear Stearns, the top underwriter of mortgage-backed securities in the country, said that problems with the subprime market had not spread to the broader mortgage market. For FQ1 ended February 28th, Bear Stearns beat EPS estimates and reported essentially in-line revenue for the quarter. Investors responded by pushing the stock 2% higher.
By the BullMarket.com Staff

Labels: BOT, BSC, CSCO, FMT, ICE, LEND, NFI, NMX, WEBX

New Century (NEWC) and the Dirty Dozen: Cramer listed 12 subprime stocks bears are targeting after the fall of New Century. While not all of these names deserve to be hounded, Cramer believes investors should be careful before buying or selling:
1. IndyMac (NYSE: NDE - News)2. CharterMac (NYSE: CHC - News)3. Friedman Billings (NYSE: FBR - News)4. Fremont General (NYSE: FMT - News)5. Redwood Trust (NYSE: RWT - News)6. Newcastle Investment (NYSE: NCT - News)7. American Home Mortgage (NYSE: AHM - News)8. Gramercy (NYSE: GKK - News)9. RAIT (NYSE: RAS - News)10. Accredited (NasdaqGS: LEND)11. Thornburg Mortgage (NYSE: TMA - News)12. CapitalSource (NYSE: CSE - News)

Labels: AHM, CHC, CSE, FBR, FMT, GKK, Jim Cramer, Jim Cramer's Stop Trading, LEND, NCT, NDE, NEWC, RAS, RWT, TMA

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Goldman Sachs Apr 230 Calls (NYSE:GS - News). GS' PowerRating is 5.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Caremark RX Apr 60 Puts (NYSE:CMX - News). CMX's PowerRating is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Accredited Home Lenders Apr 10 Calls (NasdaqGS:LEND - News). LEND's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Apr 90 Puts (NYSE:MA - News). PowerRating not available due to less than 200-day trading history. Google Apr 420 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
None Today.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Fremont General (NYSE:FMT - News). FMT's PowerRating is 3.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Fannie Mae (NYSE:FNM - News). FNM's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: CMX, FMT, FNM, GOOG, GS, LEND, MA, stock options

A rebound overnight in Asian markets carried westward to Europe and ignited gains on Wall Street today, sending the major market averages up more than 1% today. The rebound came despite some sluggish economic numbers from the government. Oil prices also resumed climbing as did metals, with gold, platinum, and silver all notching solid gains today. The yield on the 10-Treasury note rose to 4.53% as the bond market moved lower.
Many market observers cautioned that today's advance doesn't mean the recent correction has run its course. Among the cautionary news today was a revised report on U.S. productivity during Q4 of last year. The Commerce Department now says the productivity of U.S. workers grew at only a 1.6% annualized rate, or about half of the 3.0% gain the government agency initially forecasted.
Labor costs, meanwhile, soared, increasing to a revised 6.6%, compared with an earlier estimate of 1.7% growth. The revisions to the labor cost index and the drop in productivity point to inflationary pressures that make it less likely the Federal Reserve will act to reduce interest rates anytime soon. On top of those reports, the Commerce Department said that factory orders dropped by -5.6% in January, the biggest decline since July 2000.
Investors were willing to look past those numbers today, as buying interest was buoyed by strong gains on the Japanese, German, and British markets. Technology stocks paced today's advance, led by solid gains from Apple (Nasdaq: AAPL - News), which added 2%, and Google (Nasdaq: GOOG - News), up 4%. Google CEO Eric Schmidt said the two companies were working on additional projects, but didn't elaborate in an appearance at a West Coast technology conference. Terry Semel, CEO of Google's rival Yahoo (Nasdaq: YHOO - News), appeared at the same conference, where he said Yahoo's new Panama search technology is off to a solid start delivering better results for advertisers. The stock added 2%.
Citigroup (NYSE: C - News) enjoyed a 3% bounce after announcing a nearly $11 billion tender offer to take control of Japan's Nikko Cordial brokerage. An offer from Citi was expected since Nikko Cordial has run into problems related to an accounting scandal. Due to the scandal, the firm faces the risk of being delisted by the Tokyo Stock Exchange. Citi's relationship with the company and the weakened position it is in opened the opportunity for the U.S. banking giant. Subscribers can read our detailed analysis of the proposed deal in today's issue.
In M&A news, private equity firms Tornante and Madison Dearborn Partners said they have a deal in place to buy Topps (Nasdaq: TOPP - News), the famed maker of trading cards featuring Major League Baseball players, for $385 million. Tornante is the investment vehicle of Michael Eisner, former CEO of Walt Disney (NYSE: DIS - News). Topps gained 10% after the announcement.
Finally, investors took another look at battered subprime lenders today. Shares of New Century Financial (NYSE: NEW - News) rose 10% on more than 6x average daily volume, but the stock still has a long way to go to recoup yesterday's 69% dive. The chief financial officer of Countrywide Financial (NYSE: CFC - News), meanwhile, told an investor conference that while some subprime lenders might fail, his company won't. CFO Eric Sieracki called Countrywide a "top-conditioned athlete" that will get past current woes in the sector. The stock added 5% today. Other originators like American Home Mortgage Investment (NYSE: AHM - News) and Accredited Home Lenders Holding (Nasdaq: LEND - News) climbed 8% and 9%, respectively.
By the BullMarket.com Staff

Labels: AAPL, AHM, C, CFC, DIS, GOOG