Jim Cramer Blog

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

Labels: ADP, BAM, CAB, COST, DELL, DIS, FNM, FSLR, HD, HPQ, JCG, JCI, Jim Cramer, LDK, Lightning Round, LOW, Mad Money, SPWR, TSFG, WOS

The Dow closed down 218 points and the Nasdaq fell 43 points on Monday. Finerman sees storm clouds are everywhere and the Goldman downgrade of Citigroup (C) really hurt the markets. Najarian had a fun day trading. He also thinks the financial sector is in big trouble and he is extremely worried about General Motors (GM) which fell below $27.
Louise Yamada, a highly ranked technician on Wall Street, joined the show to discuss her analysis on the technicals of the market. She is currently worried that the S&P 500 could break 1406, which would signal to her an end of the longer-term uptrend. Yamada is still bullish on Cisco Systems (CSCO) and she would look to buy pullbacks on the name. She looked at the chart on Broadcom (BRCM) calling it a sell because it hasn't followed through after a false break-out. The chart on Coca-Cola (KO) is initiating an uptrend according to Yamada, so she would be a buyer of KO. Bed Bath and Beyond (BBBY) should be sold.
Retail
Nordstrom (JWN) reported a 22% rise in third-quarter profits helped by an extra week of sales.
Sears Holdings (SHLD) disclosed it has taken a 13.7% stake in Restoration Hardware (RSTO) and the possibility of proposing an acquisition.
Target (TGT) is set to report earnings Tuesday before the opening bell.
Hewlett-Packard (HPQ) clocked a 28% jump in profits off of strong notebook sales.
Medtronic (MDT) reported a 2% decline in profits, but the stock trades 3% higher after hours.
Lowe's (LOW) dropped 7% after reporting a 10% decline in profits due to the weak housing market.
Celgene (CELG) bought Pharmion (PHRM) for $2.9 billion. Adami thinks that Phizer must make a similar acquisition.
EchoStar (DISH) shares exploded higher Monday after Citigroup said there was a 65% chance that AT&T (T) will buy DISH.
Ultimate Fighting is now the fasting growing spectator sport in the United States. Macke says look for growth in cable companies and satellite companies like Viacom (VIA) and EchoStar. He also thinks makers of energy drinks like Coca-Cola will benefit. He said avoid the World Wrestling Entertainment (WWE) because the UFC is taking share. Lastly, Macke speculated that Anheuser-Busch (BUD) could be near a beverage deal with the UFC.
Pops & Drops
Pops - Xerox (XRX) traded up 2%.
Intercontinental Exchange traded up 3%
VeriSign (VRSN) traded up 2%.
Drops - E*TRADE (ETFC) fell 13% even with speculation of a takeover by Ameritrade (AMTD)
Wynn Resorts (WYNN) fell 7%
Genesco (GCO) plunged 24%.
Disney (DIS) fell 4%
General Motors (GM) fell 8% after the automaker announced plans for year-end discounts to clear out inventory.
Dillard's (DDS) fell 5%.
Tween Brands (TWB) fell 13%
Final Trade
Macke would purchase Dicks Sporting Goods (DKS) and Target on any selloff Tuesday
Najarian advises buying EchoStar (DISH) on a pullback under $44.
Finerman is long Goldman Sachs Group (GS) and short Lehman Brothers Holdings (LEH).
Adami recommends Vodafone Group (VOD) for a play on China.

Labels: BBBY, BRCM, CELG, Citigroup Inc., CNBC, CNBC's Fast Money, CSCO, DISH, Dow Jones, Fast Money Recap, GM, HPQ, JWN, KO, LOW, MDT, Nasdaq, PHRM, SHLD, TGT

All three major indices ended significantly lower for the day, as a Citigroup (NYSE: C - News) downgrade fueled financial sector concerns and Lowe's (NYSE: LOW - News) disappointed investors with its outlook. The Dow was off -218 points at the bell to close at 12,958. Meanwhile, the Nasdaq and S&P each lost more than -1.5% to end at 2,593 and 1,433, respectively. Oil traded higher on the day to close at $94.64 per barrel for December delivery. Treasury prices rose, while the price of gold fell to close at $778 an ounce. The dollar traded flat against the euro, and declined versus the yen.
On the earnings front, shares of Lowe's plunged -7.6% on the day after the company reported that profits fell -10% in the third quarter. For the period, net income was $643 million, or 43 cents per share, down from $716 million, or 46 cents per share, last year. Quarterly revenue rose to $11.6 billion, up 3% from $11.2 billion a year earlier. On average, analysts were expecting earnings of 41 cents per share on revenue of $11.78 billion. Looking forward, Lowe's adjusted its fiscal-year earnings forecast lower to a range of $1.83-$1.87 a share, down from previous guidance of $1.97-$2.01 per share given in September.
Campbell Soup (NYSE: CPB - News) reported first-quarter earnings today of $270 million, or 70 cents per share, down from $291 million, or 72 cents per share, a year ago. Excluding last year's results from operations that have since been jettisoned, profit was up $1 million from $269 million reported a year earlier. Revenue for the quarter was $2.3 billion, up 6.7% from $2.15 billion in 2006. Analysts, on average, were looking for earnings of 71 cents per share. Shares of Campbell's were off -0.9% in trading for the day.
In other corporate news, shares of Citigroup tumbled -5.9% after a Goldman Sachs analyst downgraded the stock and predicted the company could write down an additional $15 billion over the next two quarters. The Goldman analyst also predicted that the nation's largest bank may be forced to cut its dividend in order to save money. Subscribers can read our take on Citigroup in today's edition.
Elsewhere, Xerox (NYSE: XRX - News) announced today that the company will pay its first quarterly cash dividend in nearly six years. According to the release, the company will pay a dividend of 4.25 cents per share on January 31st to shareholders of record on December 31st. Xerox also predicted the company will see double-digit earnings growth over the next few years. Shares of Xerox were up 1.6% for the session.
In M&A news, Celgene (Nasdaq: CELG - News) announced that it will acquire drug developer Pharmion (Nasdaq: PHRM - News) in a cash and stock deal worth approximately $2.9 billion. According to terms released, Celgene will pay $72 per share for Pharmion stock, including $25 per share in cash. The deal represents a 46% premium over Pharmion's closing price on Friday. After the deal closes, Pharmion shareholders will hold approximately 6% of Celgene's outstanding shares. Pharmion's stock surged on the news to close up 32.1% on the day, while shares of Celgene were down -1.4% at the bell.
By the BullMarket.com Staff

Labels: C, CELG, CPB, LOW, PHRM, XRX

Lowe's Cos. cited a weak sales environment amid a continuing slump in the housing sector Monday as reasons for a 10.2 percent drop in third-quarter profit.
The nation's second largest home improvement chain suggested an industry recovery won't occur in early 2008 either as it slashed its outlook for the fourth quarter and the full year.
Its shares tumbled more than 7 percent in afternoon trading after hitting a new 52-week low earlier in the day.
It's been a tough quarter for home-improvement retailers. Home Depot Inc., Lowe's bigger rival, reported a 27 percent drop in third-quarter earnings last week and cut its full-year outlook, citing the persistent housing slump.
On a conference call with analysts, Lowe's Chairman and CEO Robert A. Niblock blamed slowing home sales, lower home prices and tightening of credit standards, all which hurt consumer spending on big-ticket items.

Labels: LOW, Lowe's Companies Inc.

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Campbell's Soup (NYSE:CPB - News) reports earnings on Monday morning before the bell, with analysts looking for $0.71 EPS. CPB's PowerRating (for Traders) is 5.
When Lowe's (NYSE:LOW - News) announces earnings on Monday, be watching for $0.41 EPS. LOW's PowerRating (for Traders) is 4.
Valspar (NYSE:VAL - News) is set to report $0.40 EPS on Monday morning. VAL's PowerRating (for Traders) is 4.
Tween Brands (NYSE:TWB - News) should announce $0.46 EPS before the bell rings on Monday. TWB's PowerRating (for Traders) is 4.
Hewlett-Packard (NYSE:HPQ - News), Medtronic (NYSE:MDT - News) and Nordstrom (NYSE:JWN - News) all report earnings after the close on Monday, so watch for heightened volatility ahead of the bell. HPQ's PowerRating (for Traders) is 5, and MDT's PowerRating (for Traders) is 5 and JWN's PowerRating (for Traders) is 4.

Labels: CPB, Hot Stocks, HPQ, JWN, LOW, MDT, TWB, VAL

Bullish
Diana Shipping (DSX)-
Sirius Satellite Radio (SIRI)- Need to get the merger done to go up.
Baidu.com (BIDU)-
Celgene (CELG)- This is the name.
L-3 Communications (LLL)-
Becton Dickinson (BDX)-
Lowe's (LOW)- Is low and likes retail here.
Union Pacific (UNP)- Has better breadth
Barrick Gold (ABX), Yamana Gold (AUY), Goldcorp (GG), Freeport-McMoRan (FCX)- Likes all gold.
Wyndham Worldwide (WYN)- They reported a good quarter.

Bearish
Navios Maritime (NM)- Not his favorite shipper
Sohu.com (SOHU)- "no, no, no"
Genentech (DNA)- Had to give up.
AuthenTec (AUTH)- Had a big run, but likes L-3
Burlington Northern Santa Fe (BNI) - Likes UNP better.
Las Vegas Sands (LVS)-

Labels: BDX, BIDU, CELG, DSX, Jim Cramer, Lightning Round, LLL, LOW, Mad Money Lightning Round, SIRI, UNP

The crew at Fast Money discussed how retail stocks may be affected by the whipsaws of trading. Najarian pointed at that while stocks were down early, technology names recovered. According to Macke, investors shot first and didn't bother to ask the questions in the retail sector. Finerman feels something else besides fundamentals were at work with regards to the overall market sell off and the selling seen in retail stocks.
Target (TGT), Lowe's (LOW) and Wal-Mart (WMT) traded lower off the poor consumer confidence numbers. Adami thinks Target is worth a trade here.
Christmas Season:
Margret Brennan, CNBC's chief correspondent, thinks consumer electronics and retail accessories like handbags and shoes will be strong again this Christmas. She is looking at Wal-Mart and agrees with Adami on Target for a play on strong consumer electronics demand. Macke recommends Coach (COH). Adami suggests Saks (SKS). Najarian continues to favor athletic apparel maker Under Armour (UA)
Word on the Street
Existing home sales were reported on Tuesday and hit a five-year low. Finerman has concerns that Lennar (LEN) may have write-downs in the future, and that short-term trade is in order at Centex (CTX). Adami: if KB Home (KBH) trades down to a 52-week low on 10 million shares, buy it for a short-term trade. The strike at General Motors (GM) hit its second day on Tuesday as investors grow nervous of a stalemate. Najarian doesn't want to see the strike go more then five days. Adami's idea for an auto trade look is to look for a pullback in BorgWarner (BWA).
Technology Sector
Apple (AAPL) and Google (GOOG) hit new records as technology stocks continued to shine. Najarian says gadget stocks like Garmin (GRMN) and Research In Motion (RIMM) continue to be strong as well.
Chemical and Consumer Sectors:
Najarian: Likes Crocs (CROX), Monsanto (MON) and Digital River (DRIV).
Carter Worth: chief market technician at Oppenheimer, joined the crew to discuss his take on technical analysis in the markets. Says there is strength in materials, energy and industrial stocks, but that strength is being offset by weakness in consumer discretionary and financial stocks.
BHP Billiton (BHP) vs. Wal-Mart (WMT). BHP is killing WMT in performance. The second chart was Schlumberger (SLB) vs. UBS (UBS) and the third was Arcelor Mittal (MT) vs. Toyota (TM). UBS and MT are the out performers in the above three comparisons and BHP has room to go higher.
Pops & Drops
Pops -- ValueClick (VCLK) traded up 13% and Focus Media (FMCN) traded up 19%.
NAVTEQ (NVT) traded up 11%.
Tesoro (TSO) popped 3%. Adami is bearish on the refineries.
USEC (USU) popped 6%.
Drops -- Vonage (VG) plunged 34%
Whirlpool (WHR) fell 5%
Freeport McMoRan (FCX) fell 2%
Face2Face
Intercontinental Exchange (ICE) has fallen considerably from its high of $174. Is this an opportunity to accumulate a larger position, or is ICE's stock price reflecting slower growth? Finerman responds by noting that the exchanges are in play for M&A and this could draw in more investor interest for names like ICE.
Macke was asked his opinion on Chipotle Mexican Grill's (CMG). Macke likes CMG for a trade.
Final Trade
Macke favors eBay (EBAY).
Finerman prefers Comverse Technology (CVMT).
Najarian tells investors to play the online ad space with Digital River (DRIV).
Adami likes USEC (USU)

Labels: AAPL, CNBC, COH, CTX, Fast Money, GOOG, GRMN, LEN, LOW, RIMM, SKS, TGT, UA, WMT

Stocks seesawed back and forth between positive and negative territory today, with the major market indices finishing the day mixed. The Dow and Nasdaq both closed higher, while the S&P was off fractionally. Gold slipped on the day, while oil fell to close under $80 a barrel at $79.53.
Economic news was plentiful on the day, with some continuing unsettling data on the housing market. The National Association of Home Builders reported that existing home sales fell -4.3% to 5.5 million units. Sales dropped -13% compared with a year earlier. The group noted that median home prices rose 0.2% to $224,500. Meanwhile, the S&P Case-Shiller home price index stated that home prices in 20 metro areas fell the most on record in July. Shifting gears a bit, The Conference Board announced that its index of consumer sentiment fell to 99.8 in September, which is the lowest level since November of 2005, and down from 105.6 in August.
In corporate news, several retail warnings weighed heavily on investors. The nation's second-largest discount retailer, Target (NYSE: TGT - News), cut its September same-store sales growth figures citing weaker traffic during the month, especially in Florida and the Northeast. The company cut same-store sales growth to 1.5-2.5%, down from its previous expectations of 4-6%. Shares slid -4.6%. Subscribers can read our take on Target in today's issue.
Meanwhile, shares of home improvement retailer Lowe's (NYSE: LOW - News) shares fell -6.7% after the company announced that it sees full-year earnings at the low end or slightly below its prior forecast. Lowe's cited lower-than-expected sales trends. The company had predicted earnings of $1.97-2.01 a share previously. The company did note that for 2008-2010 it expects earnings to increase 12-15%, while seeing sales rise 8-11% per year.
Also lowering guidance on the day was McCormick & Schmick's Seafood Restaurants (Nasdaq: MSSR - News). After previously forecasting earnings of 21-23 cent a share on revenue of $90-$91 million, McCormick & Schmick's now anticipates reporting a profit of 16 cents a share on revenue of $88 million. The company's CEO attributed the lowered outlook to weak demand from "aspirational guest[s]." Shares plunged -22.9%
The losses continue to mount for our nation's homebuilders, as Lennar (NYSE: LEN - News) posted a loss of -$514 million, or -$3.25 a share, for the quarter ended August 31st. The loss compared to a year-ago profit of $207 million, or $1.30 a share. Revenues fell -44% to $2.2 billion during the quarter, and the company took a -$848 million charge due to valuation reductions and write-offs. Home deliveries declined a drastic -41%, while new orders plunged -48%. The company announced that it is seeking further reductions in head count. Shares fell -4.0%.
By the BullMarket.com Staff

Labels: LEN, LOW, Lowe's Companies Inc., MSSR, Target, TGT

First caller asking whether the tech sector is still the best place to be? Cramer says drop out of tech right now and wait for the pullback.
Second caller inquired on stock splits and asked if Cramer thinks a stock split is forthcoming for Apple (AAPL). Cramer said he wouldn't be surprised.
Third called asking if EMC is a better value than VZW. Cramer said he likes EMC.

Cramer's getting bullish on companies taking a "no bull" approach to business. He looked at companies that started in U.S. but have expanded. U.S. is no longer a growth country. Cramer says invest in companies with growing international exposure. Best Buy (BBY): Creating value with through the Canadian loon and expanding elsewhere globally. International sales are huge with Best Buy. Circuit City is shrinking its business. Cramer stated the success and future potential of Best Buy's Geek Squad.

Next, Cramer talked about the fact that the US economy is not in great shape, so we should look abroad for investment opportunities. He specifically mentioned Carnival Cruises (CCL) as a buy, and thinks that it will beat Royal Caribbean (RCL) in the growing European cruise market.

Airgas (ARG): Cramer spoke to the CEO of Airgas about its excellent performance. Cramer thinks this is another stock to buy after the pullback.
Lowe's (LOW): Finally, Cramer mentioned that Lowes was hurt in the market downturn. He reiterated his pullback theory, saying retail will lead the way down, followed by tech.

Labels: AAPL, AMZN, ARG, BBY, CCL, EMC, GOOG, Jim Cramer, LOW, Mad Money, Mad MOney Recap, RIMM

Stocks continued to be volatile to start off the week, but not as volatile as the past several weeks have been. Investors weighed and assessed the decision by the Federal Reserve on Friday when it lowered the discount rate by 50 basis points. For most of the session, all three major market averages were lower, but the bulls orchestrated a rally towards the close. At the close, the Dow gained 42 points, with the Nasdaq picking up a modest 4 points. The S&P 500, meanwhile, ended the session fractionally lower. Over in the energy markets, natural gas was the biggest loser as Hurricane Dean appears that it will not head into the energy rich northern Gulf of Mexico. Natural gas lost -98 cents to finish at $6.03.
Jumbo loan company Thornburg Mortgage (NYSE: TMA - News) saw its shares decline -10.2% after it announced it sold $20.5 billion worth of mortgage-backed securities at a discount in order to pay down debt it could not refinance. It foresees itself losing $930 million on the transaction, but said it will go ahead and pay its dividend. The company stated it will not give any guidance on further dividends. Rating agency Fitch Ratings downgraded its issuer default rating to "CCC" citing concerns of Thornburg's ability to generate and maintain adequate liquidity given the current market environment.
On the earnings front, the nation's second-largest home improvement retailer, Lowes (NYSE: LOW - News), reported that its second-quarter profit rose 9% to $1.02 billion, or 67 cents a share, up from $975 million, or 60 cents a share, in the same period a year ago. Analysts were expecting earnings to come in at 61 cents a share. Sales rose 5.8% to $14.2 billion. Same-store sales declined -2.6% for the company. For the year, the retailer sees earnings of $1.97-2.01 a share, down slightly from its prior forecast of EPS of $1.99-2.03. Despite the lowered full-year earnings estimates, the stock rose 6.1% on the heels of market share gains as well as a company belief that sales trends were improving.
In other corporate news, Nasdaq Stock Market (Nasdaq: NDAQ - News) said it is looking to sell its 31% stake in the London Stock Exchange (LSE). It attempted to buy the exchange last year, but the LSE's shareholders rejected the offer in February. Nasdaq said it would use the proceeds to retire some of its debt and also repurchase its stock. Shares declined -0.7%.
On the international front, the world's third-largest bank HSBC Holdings (NYSE: HBC - News) is in talks to buy the majority of Korea Exchange Bank, South Korea's sixth-largest bank. HSBC is currently in advanced discussions with Lone Star Funds, which owns a 51% stake worth $4.5 billion in the foreign bank.
By the BullMarket.com Staff

Labels: HBC, LOW, Lowe's Companies Inc., NDAQ, Thornburg Mortgage Inc., TMA

Lowe's Cos., the nation's second largest home improvement chain, said Monday that its second-quarter profit rose 9 percent on higher overall revenue.
The results came in ahead of Wall Street expectations, and its shares rose 6 percent in morning trading.
But its sales fell at stores open at least a year and Lowe's trimmed its earnings outlook for the full year on Monday.
The home improvement market has been slowing amid a slump in the housing sector.
Last week, rival Home Depot Inc., the nation's largest home improvement store chain, said its second-quarter income dropped 14.8 percent. Its same-store sales dropped 5.2 percent.

Labels: LOW, Lowe's Companies Inc.

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Kensey Nash (NasdaqGS:KNSY - News) should report $0.09 EPS on Monday before the market opens. KNSY's PowerRating (for Traders) is 4.
Lowe's (NYSE:LOW - News) is expected to announce $0.61 EPS on Monday morning before the bell. LOW's PowerRating (for Traders) is 4.
Analysts are watching for Solarfun Power Holdings (NasdaqGM:SOLF - News) to report $0.04 EPS before the market opens on Monday. SOLF's does not have a PowerRating (for Traders) due to a short trading history.
Oplink Communications (NasdaqGM:OPLK - News) and Perry Ellis (NasdaqGS:PERY - News) both announce earnings after the close on Monday, so watch for heightened price action and volatility ahead of the close. OPLK's PowerRating (for Traders) is 4, and PERY's PowerRating (for Traders) is 4.
Countrywide Financial (NYSE:CFC - News) gained over 11% on Friday, after Banc of America gave the company a ratings upgrade, from Sell to Neutral. CFC's PowerRating (for Traders) is 6.
Nordstrom (NYSE:JWN - News) announced better than expected profit on Thursday, but said results were slightly lower due to the company's credit-card business. JWN's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CFC, Hot Stocks, JWN, KNSY, LOW, OPLK, PERY, SOLF

A Reliab-Oil Stock: XTO Energy (NYSE: XTO - News)
Cramer says he has finally found the "perfect" oil company which takes advantage of high oil prices by exploiting new properties rather than just buying back stock. XTO has risen 14% since Cramer recommended it in March, and with its recent acquisition of Dominion Resources, it should see double-digit growth for four or five years, according to Cramer.
Interview with Duncan Niederauer, president and co-COO of NYSE Euronext (NYSE: NYX - News)
Cramer's growth stock for 2007, NYX, is down 15%, but he is not backing away. While Euronext is growing rapidly, Cramer admits NYX is turning into the "worst performing" stock he's seen. Duncan Niederauer commented NYX is the only multi-product exchange; "It's still a wonderfully scaleable business, and a lot of the market doesn't know how to evaluate us because we're not quite as attractive as the derivative-only exchanges," he told Cramer. However, he added that NYX is still more attractive than the equity-only exchanges. Concerning derivatives, Niederauer said, "The U.S. futures market is still a hole in our global footprint .... The only way in is an acquisition." Cramer commented on how rapidly NYX drops, and Niederauer conceded NYX "trades in a very choppy way for a large-cap company." Although he can't predict when NYX will start moving up, Cramer says he is sticking with NYX.
Sell Block: Norfolk Southern (NYSE: NSC - News), Johnson & Johnson (NYSE: JNJ - News), Guess? (NYSE: GES - News), Monster Worldwide (NasdaqGS: MNST - News)
While Cramer's predictions of NSC 's and JNJ 's declines were fulfilled, and GES jumped as he expected, Cramer admitted he missed "the big one" of the week, namely, the selloff and vitality in the bond market. The lesson from this error is "You ignore what the big institutional investors are doing at your own peril," Cramer said, and added investors should not overlook the bond market. Cramer is still hopeful that MNST will win a bid and believes the new CFO,Timothy Yates, will make moves toward selling the company.
Mad Mail: Wal-Mart (NYSE: WMT - News), Target (NYSE: TGT - News), Lowes (NYSE: LOW - News), Verizon (NYSE: VZ - News)
Cramer says WMT's risk reward is superior to TGT's, which should be sold because it has increased substantially. Since WMT is not currently buildng new stores, the company can buy back stock and revamp its existing stores. Cramer adds he also likes LOW. He told another viewer Verizon has a solid yield and increasing growth. Concerning what action to take in the decline, Cramer coached his viewers; "Let it come in -- let the market open down ... If it opens up, do some selling. Don't do any buying. I'll tell you when I think it's overdone."
Published by SeekingAlpha

Labels: GES, Jim Cramer, JNJ, LOW, Mad Money, MNST, NSC, NYX, TGT, VZ, WMT, XTO

The buyout binge continued to keep stock prices high today as a flurry of new deals drove the markets higher during the day. The tech-laden Nasdaq composite was the strongest of the indexes, while the Dow faded to close slightly lower. Intraday, all the averages were higher as the benchmark S&P broke an all-time intraday record of 1527 before closing below the record. Over in the energy pits, crude oil rose $1.33 to $66.27. Treasury prices ended slightly higher as the market awaits key economic data tomorrow. The benchmark 10-year note, ended the session trading at a yield of 4.79%.
The merger and acquisition boom continues as Goldman Sachs (NYSE: GS ) and the TPG Group agreed to buy Alltel (NYSE: AT ) for $24.7 billion. This deal, when closed, will become one of the biggest leveraged buyouts (LBO) ever. Alltel is currently the fifth-largest wireless carrier in the U.S. The telecom industry continues to be a focus of consolidation and interest from both institutions and private equity. Shares of the telco giant rose more than 6.73% on the trading day.
The People's Republic of China is taking a $3 billion interest in privately held Blackstone Group. China, which is currently the largest holder of U.S. debt, has been looking for ways to invest in other areas, most notably private equity. This news comes off fresh rumors that the Blackstone Group is close to announcing an IPO in the not-so distant future. The private equity firm is expected to raise more than $7.75 billion by selling stock to the public.
Elsewhere in the M&A arena today, diagnostic and imaging systems maker Hologic (Nasdaq: HOLX ) agreed to buy diagnostic and surgical products maker Cytyc (Nasdaq: CYTC) for $6.2 billion, a premium of 32% over the closing price on Friday. On the international merger front, European bank Unicredit agreed to buy Italy based Capitalia for $29 billion. Unicredit will become the 6th largest bank, and the deal will give it a powerful footprint in Italy.
Over on the institutional side of the markets, Merrill Lynch (NYSE: MER) agreed to acquire a minority stake in Goldman Sach's GSO hedge fund for a undisclosed amount. The hedge fund manages over $8 billion. Merrill has been picking up more hedge fund assets in recent quarters as a way to boost earnings growth.
On the earnings front, the nation's second-largest home-improvement retailer missed Wall Street estimates. Lowe's Corp (NYSE: LOW) reported earnings of 48 cents per share versus analyst estimates of 49 cents per share. Total sales rose 2% to $12.2 billion, but fell shy of analyst estimates of $12.5 billion. Same-store sales fell -6.3%. Going forward, the company lowered its annual growth forecast and sales numbers. The retailer's shares lost -2.4% on the day.
In the drug sector, shares of GlaxoSmithKline PLC (NYSE: GSK) slid -7.9% after analysis on their diabetes drug "Avandia" appeared to have shown that the medication substantially increases the chances of a heart attack. Finally, Visteon (NYSE: VC ) surged more than 9.23% on news that Indian firm Tata Group may be eyeing the autoparts maker.

Labels: AT, CYTC, GS, GSK, HOLX, LOW, MER, VC

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Campbell Soup (NYSE:CPB) reports earnings on Monday morning before the bell; watch for $0.41 EPS. CPB's PowerRating is 5.
Lowe's (NYSE:LOW) reports earning Monday before the market opens, with analysts looking for $0.50 EPS. LOW's PowerRating is 5.
When Saks (NYSE:SKS) announces quarterly earnings Monday morning, be looking for $0.16 EPS. SKS's PowerRating is 6.
Analysts expect Trina Solar (NYSE:TSL) to report $0.15 EPS in quarterly earnings before the bell on Monday. TSL does not have a PowerRating due to its short trading history.
American Science & Engineering (NasdaqGM:ASEI), Apollo Group (NasdaqGS:APOL) and Pacific Sunwear (NasdaqGS:PSUN) all report earnings on Monday after the market closes, so watch for heightened price action and volatility ahead of the close. ASEI's PowerRating is 5, APOL's PowerRating is 4 and PSUN's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: APOL, ASEI, CPB, Hot Stocks, LOW, PSUN, SKS, TSL

Six Flags (NYSE: SIX - News): 'We are big fans of Mark Shapiro... I like the advanced ticket sales. I like what he's doing. I am bullish on SIX, but I have to believe that you don't want to pull the trigger until it is below $6.'Ford (NYSE: F - News): 'People are believing in Alan Mulally [CEO}, and it's about time. He's shrinking the company ... we have heroes on Wall Street, not just villains, and Alan is one of the heroes!'Wells Fargo (NYSE: WFC - News): 'Best in show bank. 14x multiple. Unbelievable. WFC is good - don't buy, don't buy - but I want you to pull the trigger on GS!'Goldman Sachs (NYSE: GS - News): ' ... at $225, and I think it's going to $350... I want you to pull the trigger on GS.'Peabody Energy (NYSE: BTU - News)Chemed (NYSE: CHE - News)Charter Communications (NasdaqGM: CHTR) 'CHTR's going higher! CHTR is now up almost a dollar from where we recommended it.'J.C. Penney (NYSE: JCP - News)Kohl's (NYSE: KSS - News)Saks (NYSE: SKS - News): 'Somebody upgraded it today. They're finally getting on board. I like that one too!'Dick's Sporting Goods (NYSE: DKS - News)Lowe's (NYSE: LOW - News)Federated Department Stores (NYSE: FD - News): 'That stock has gotten too cheap. I'd like to buy that. Buy, buy, buy.'Sears (NasdaqGS: SHLD): ' ... is a stock that everybody now hates... (buzzer sounds)... Meanwhile, I say, c'mon. The guy's making money. Give him the BOD - give him the benefit of the doubt!'Caterpillar (NYSE: CAT - News): ' ... why would you not buy Caterpillar instead, which is best in show, much too low versus the rest of the group.'Joy Global (NasdaqGS: JOYG): 'I like JOYG, but it is to CAT that I am pointing you to...'Syneron Medical (NasdaqGS: ELOS): 'We're still sticking with ELOS ... We like the lasers. We believe in the dental laser. Has it taken off yet? Not yet, but we still like it. I would stick with ELOS.'China Medical (NasdaqGS: CMED): 'The stock is good... A very strange combination of hospice and Roto Rooter... I am sticking by CMED. I would take a little off, because ... hogs get slaughtered... but CMED was a good one and it remains so.'New York Stock Exchange/Euronext (NYSE: NYX - News): '.... was so ugly today that... I've never seen such a bear raid on a stock ... The Euronext numbers that came out were great!'
Bearish calls:
Consol Energy (NYSE: CNX - News): 'Keep looking! Don't pull the trigger! Don't buy, don't buy.'Massey Energy (NYSE: MEE - News): ' ... that one is just awful! House of pain...'DivX (NasdaqGM: DIVX): 'I cannot get behind DIVX. That was one of the ugliest quarters out of the chute that I've ever seen... I cannot do the right thing when management screws up. I am not getting behind DIVX. No way, no how!'Big Lots (NYSE: BIG - News): 'BIG is not a favorite of mine.'Sport Chalet (NasdaqGM: SPCHB)Central Garden & Pet (NasdaqGS: CENT): 'Pass on CENT... Inconsistent. Not a great company. Way too levered to whether we have a good garden season, which is really bad. Sell, sell, sell!'

Published by SeekingAlpha

Labels: BIG, BTU, CAT, CHE, CHTR, CNX, DKS, F, FD, GS, JCP, Jim Cramer, KSS, Lightning Round, LOW, NYX, SIX, SKS, WFC

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
Gaps Down 5% or More: These are stocks that gap 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 gap 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.

Sohu.com (NasdaqGS:SOHU). SOHU's PowerRating is 5.
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.
InterOil Corporation (NYSE:IOC). IOC's PowerRating is 8.
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.
Lowe's Companies (NYSE:LOW). LOW'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.
Stage Stores (NYSE:SSI) & Apria Healthcare (NYSE:AHG). SSI's PowerRating is 7, and AHG'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.
Emageon (NasdaqGM:EMAG). EMAG'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.
Hawaiian Electric (NYSE:HE). HE's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AHG, EMAG, HE, Hot Stocks, IOC, LOW, SOHU, SSI