Jim Cramer Blog

Google (GOOG): Today's show started with Cramer talking about Google. He talked about all the Google non-believers, and then talked about the reasons that he thinks the stock will keep going higher. He has set his price target at $750, and believes it's not too late to get into the stock right now. He thinks it is a great company and has been undervalued every day "of it's existence." He told viewers that if they're afraid to buy such an expensive stock, divide it by 10 and think of it in that sense. Buy Buy Buy!
Next Cramer listed medical device makers that he likes by building a theoretical bionic woman. The first stock he listed was Alcon (ACL) which makes eye care products. He also recommended Smith and Nephew (SNN) and Stryker (SYK). His favorite one is Stryker, which he thinks could give you a 36% gain. Stryker has some litigation pending, but once that is settled he thinks the stock will take off. He also believes that the stock will do well if the economy slows. A caller asked about BioScrip (BIOS), and Cramer said that BIOS is an interesting takeover play with solid fundamentals.
"Are You Diversified?"
The first caller asked about his core of Google (GOOG), eBay (EBAY), Wachovia (WB), Nastech (NSTK) and Southwest (LUV). Cramer said he prefers United (UAUA). He said eBay overlaps with Google. He recommended selling eBay and buying a defensive stock.
A second caller's portfolio included Wells Fargo (WFC), Lockheed Martin (LMT), Texas Instruments (TXN), Exxon-Mobil (XOM) and Dover (DOV). "Hallelujah," Cramer said. There is a picture of this caller in the dictionary next to the entry for "diversification."
He also said "hallelujah" to the third callers portfolio which included Wachovia (WB), Research in Motion (RIMM), Schlumberger (SLB), Lockheed and Lundin Mining (LMC).
BioMarin Pharmaceutical (BMRN) CEO was on the show. Cramer discussed the prospects of an upcoming drug from BioMarin and said that he is bullish on the stock.
Finally, Cramer came back and said that he was wrong about Downey Financial (DSL), which was down big today.

Labels: ACL, BIOS, BMRN, GOOG, Jim Cramer, LUV, Mad Money, Mad MOney Recap, NSTK, SNN, SYK, WFC

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Altria (NYSE:MO - News) reports earnings on Wednesday before the market opens; watch for $1.13 EPS. MO's PowerRating is 6.
CIT Group (NYSE:CIT - News) is expected to report $1.35 EPS before the bell on Wednesday. CIT's PowerRating is 6.
JP Morgan Chase (NYSE:JPM - News) should report $1.08 EPS on Wednesday before the bell. JPM's PowerRating is 5.
Lufkin Industries (NasdaqGS:LUFK - News) is looking to announce $1.19 EPS tomorrow morning. LUFK's PowerRating is 6.
When Pfizer (NYSE:PFE - News) announces earnings before the market opens on Wednesday, look for $0.50 EPS. PFE's PowerRating is 4.
Southwest Air (NYSE:LUV - News) should announce $0.22 EPS on Wednesday morning. LUV's PowerRating is 5.
United Tech (NYSE:UTX - News) is expected to announce $1.15 EPS on Wednesday morning before the action begins. UTX's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CIT, Hot Stocks, JPM, LUFK, LUV, MO, pfe, UTX

Lockheed Martin (NYSE: LMT - News): 'I think LMT is incredibly cheap. It's got a huge buyback. A question whether it even needs to be public. I would buy that stock hand over fist, every time it gets hammered. It's been a big winner, and it will stay a big winner.'Reliance Steel (NYSE: RS - News): 'RS is the cheapest stock left in the group. I look at RS, in the mid-$40s, and I think it's a travesty... The stock deserves to sell in the $50s... 'Freeport-McMoRan (NYSE: FCX - News): ' There are very few stocks that I feel have created value by merging in this country... FCX has created a giant colossus of copper... As the Chinese continue to buy copper, you are going to coin money FCX... I typically don't like the cyclicals right here. FCX is a buy, buy, buy, and I want you to stay long it. FCX, you rock!'Jacobs Engineering (NYSE: JEC - News): ' It has reported two great upside surprises. And it does not get the respect ... JEC is best in show.... trades very difficult... I think $90 goes to $110. I like the infrastructure group. They're doing a great job.'Foster Wheeler (NasdaqGS: FWLT): 'I like FWLT.'Transocean (NYSE: RIG - News): 'I've got to go with best of breed RIG. Long Live RIG!'GlobalSantaFe (NYSE: GSF - News)
Neutral calls:
Riverbed (NasdaqGM: RVBD): 'It has now pulled back to $26. There is a sense that the stock is played out, and the reason is that there's been so much insider selling. I am now in 'wait and see' mode in RVBD.... I can't pull the trigger on RVBD, until I see the quarter...'
Bearish calls:
United States Steel (NYSE: X - News): 'Swap out of X and get into RS.'Southwest Airlines (NYSE: LUV - News): 'it was the once-great - because no one else had its recipe... and now everyone's got its recipe... and now, it's a don't buy ... LUV has got to come down before I can recommend it.'Advanced Micro Devices (NYSE: AMD - News): 'I've got to take the extraordinary step of pressing every single bad button there is! Sell, sell, sell! The house of pain... There is no reason for AMD to live! It has no purpose! It has nothing going for it! If you're in AMD, I give you permission right now to leave, and sell that stock!'GameStop (NYSE: GME - News): 'The new product's dried up a little, so I've got to tell you, I would not buy GME until we get closer to the Christmas season. I think it does nothing for now.'Diamond Offshore (NYSE: DO - News): 'No. DO does not have the leverage to the world that RIG has. It has a little too much Gulf of Mexico for me ... I cannot bless that stock.'
Published by SeekingAlpha

Labels: AMD, DO, FCX, GME, GSF, JEC, Jim Cramer, Lightning Round, LMT, LUV, Mad Money, RIG, RS, X

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.

Compucredit Corporation (NasdaqGS:CCRT - News). CCRT's PowerRating is 5.
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.
Petroquest Energy (NYSE:PQ - News). PQ's PowerRating 6.
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.
C.R. Bard (NYSE:BCR - News). BCR's PowerRating is 6.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Human Genome Sciences (NasdaqGM:HGSI - News). HGSI'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.
Jackson Hewitt (NYSE:JTX - News). JTX's PowerRating 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.
Gymboree (NasdaqGS:GYMB - News). GYMB's PowerRating is 5.
Bearish
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving 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.
Southwest Airlines (NYSE:LUV - News). LUV's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: BCR, CCRT, GYMB, HGSI, Hot Stocks, JTX, LUV, PQ

LCA-Vision Inc. (NasdaqGS:LCAV - News) reported fourth-quarter earnings of $7.1 million, or 34 cents a share, up from a year-ago profit of $6.6 million, or 30 cents a share. Revenue jumped 26% in the latest three months to $58.8 million from $46.8 million a year ago. The Cincinnati-based provider of laser vision correction services also said it's increased its quarterly dividend by 50% to 18 cents a share from 12 cents. Looking ahead, LCA-Vision forecast earnings of $2.05 to $2.15 a share for 2007 on revenue growth of 20% to 25%.
Lions Gate (NYSE:LGF - News) reported third-quarter net earnings of $20.5 million, or 17 cents a share, compared with $3.14 million, or 3 cents a share, in the same period last year, driven by revenue from the company's "Saw III" and "Employee of the Month" films.
Loews Corp. (NYSE:LTR - News) reported consolidated net income of $746.5 million, or $1.11 a share, for the fourth quarter, up from a year-ago equivalent profit of $127.6 million, or 8 cents a share. This performance includes contributions from both Loews Group and Carolina Group, whose net income rose to $137.1 million, or $1.26 per Carolina Group share, in the quarter, from $81.6 million, or $1.11 a share, a year earlier. On a continuing operations basis, Loews earned $633.4 million, or $1.15 per share, in the latest quarter. Loews attributed its higher earnings to improved results at CNA Financial , its 89%-owned subsidiary, and Diamond Offshore Drilling , its 54%-owned subsidiary.
Municipal Mortgage & Equity LLC (NYSE:MMA - News) said it knows of no reason why recent trading in the stock has resulted in a decrease in price. Since Monday, shares of the real estate debt and equity financing concern have dropped almost 15%. MuniMae management noted that it is not engaged in sub-prime or any other single family mortgage lending activities, and that its outlook for the multifamily rental sector is positive.
Novelis was in focus after the company agreed to be acquired by Hindalco Industries Ltd. in a deal worth $6 billion, including debt assumption. The consideration values Novelis at $44.93 a share.
OmniVision (NasdaqGS:OVTI - News) unveiled a 5.17 megapixel auto-focus camera module for mobile handsets based on its OV5623 CameraChip sensor. The company also unveiled its TrueFocus camera with Wavefront Coding technology for the mobile handset market.
Onyx Pharmaceuticals (NasdaqGM:ONXX - News) soared after the company and Bayer (NYSE:BAY - News) said a Phase 3 trial of Nexavar to treat advanced liver cancer was closed early due to a positive outcome. Bayer and Onyx will stop the trial and allow all patients enrolled in this trial access to Nexavar. Given that there are limited approved systemic therapies for this disease, the companies will continue discussions with health authorities worldwide, including the U.S. Food and Drug Administration and European health authorities regarding the next steps in filing for approval for the treatment in advanced liver cancer. Nexavar is currently approved in nearly 50 countries, including the United States and in the European Union, for the treatment of patients with advanced kidney cancer.
Shares of Panera Bread Co. (NasdaqGS:PNRA - News) edged higher after Raymond James upgraded the bakery-café chain to strong buy from outperform, citing valuation. The company reported Friday fourth-quarter earnings that rose over year-earlier levels but fell shy of expectations, according to Thomson Financial, and provided an outlook that was slightly below forecasts. Analyst Bryan Elliott noted that the stock traded up most of the day before turning lower at the close. "We believe that that this reflects intermediate and longer-term capital that has been on the sideline waiting for 2007 guidance to be released," Elliott said in a research note. "We believe there is sufficient interest from this class of investor to keep Panera Bread under accumulation for at least the next several months."
R.H. Donnelly (NYSE:RHD - News) was upgraded to overweight from neutral at J.P. Morgan.
Smithfield Foods (NYSE:SFD - News) was upgraded to outperform from market perform at Wachovia Securities. The firm cited expectations about the benefits of recent acquisitions.
Southwest Airlines (NYSE:LUV - News) was upgraded to outperform at Bear Stearns.
Triple Crown Media Inc. (NasdaqGM:TCMI - News) said it swung to a fiscal second-quarter net profit of $418,000, or 8 cents a share. The company, which owns and operates local newspapers and runs a collegiate marketing business offering sports marketing services, reported a loss of $802,000 or 16 cents a share in the year-earlier quarter. Revenue for the quarter jumped to $48.1 million from $12.3 million, driven by the acquisition of the marketing business from Bull Run Corp.
Vodafone Group (NYSE:VOD - News) agreed to acquire Hutchison Telecom's (NYSE:HTX - News) 67% stake in Indian mobile operator Hutchison Essar for $11.1 billion and the assumption of $2 billion in debt.
WCI Communities (NYSE:WCI - News) said it's retained Goldman Sachs to assist it in identifying ways to increase shareholder value. The Bonita Springs, Fla. homebuilder said that it expects to generate $1 billion in free cash flow in 2007, and will look at asset sales to help reduce debt. Once the balance sheet is improved, the company will review strategic alternatives, including possible share repurchases are a sale of the company.
Witness Systems' (NasdaqGS:WITS - News) shares rallied after the company agreed to be acquired by Verint Systems (Other OTC:VRNT.PK - News), a unit of Comverse Technology (Other OTC:CMVT.PK - News), for $27.50 a share, or roughly $950 million.
Zoltek Cos. (NasdaqGM:ZOLT - News) shares rose after the St. Louis-based materials reported a fiscal first-quarter net loss of $5.66 million, or 23 cents a share. The quarter included a charge of $8.4 million related to convertible debt and warrant issuances. In the same quarter last year, the company posted net earnings of $6.29 million, or 3 cents a share. Revenue rose to $30.3 million from $15.6 million.
Published By Michael Baron of MarketWatch

Labels: BAY, CMVT, HTX, LCAV, LGF, LTR, LUV, MMA, ONXX, OVTI, PNRA, RHD, SFD, TCMI, VOD, VRNT, WCI, WITS, ZOLT

Alaska Communications (NasdaqGM:ALSK - News) was downgraded to underweight from equal weight at Lehman Bros.
Allied Capital Corp. (NYSE:ALD - News) agreed to sell its portfolio company, Palm Coast Data Holdco Inc., to Kable Media Services Inc., a unit of Amrep Corp. (NYSE:AXR - News). The value of the transaction was $92 million.
Blackbaud Inc. (NasdaqGS:BLKB - News) acquired privately owned sister companies Target Software Inc. and Target Analysis Group Inc. for $60 million, plus up to an additional $2.4 million under a 1-year earn-out arrangement. Blackbaud sees the acquisition cutting earnings per share, before items, in 2007 by 3 to 6 cents.
Cheesecake Factory Inc. (NasdaqGS:CAKE - News) said Peter D'Amelio, president and chief operating officer of the restaurant division, is leaving for personal reasons, effective Feb. 2. The company is searching for a replacement.
Cosi (NasdaqGM:COSI - News) was downgraded to buy from strong buy at Wedbush Morgan.
Fortunet Inc. (NasdaqGM:FNET - News) was initiated with a hold rating at W.R. Hambrecht & Co.
Fulton Financial (NasdaqGS:FULT - News) said fourth-quarter net income rose, as interest income gained, to $46.6 million, or 27 cents a share, from $40.9 million, or 25 cents a share, during the same period in the prior year. The Lancaster, Pa.-based financial holding company said quarterly net interest income rose to $121.7 million from $107.9 million in the prior year.
Genomic Health (NasdaqGM:GHDX - News) was downgraded to equal weight from overweight at Lehman Bros. on valuation concerns.
Health Care Property Investors Inc. (NYSE:HCP - News) priced a public offering of 6.77 million of its shares. The real estate investment focusing on healthcare facilities said it has granted underwriters a 10-day option to purchase an additional 1.02 million shares.
Indymac (NYSE:NDE - News) was downgraded to market perform from market outperform at JMP Securities.
Intel (NasdaqGS:INTC - News) said fourth-quarter profit dropped 39% as the world's largest chipmaker cut prices and boosted investment, attempting to beat back a challenge from smaller rival Advanced Micro Devices.
Isis Pharmaceuticals' (NasdaqGM:ISIS - News) shares slumped after the Carlsbad, Calif.-based company said late Tuesday it plans to raise roughly $125 million through an offering of convertible subordinated notes due 2027 in a private placement. Isis also plans to grant the initial purchasers a 30-day option to buy up to an additional $37.5 million of convertible notes. The company said it will use the proceeds of the offering repurchase, retire or repay its 5.5% convertible subordinated notes due 2009 and for general corporate purposes.
Linear Tech (NasdaqGS:LLTC - News) said second-quarter net earnings rose slightly to $105 million, or 34 cents a share, from $103.2 million, or 33 cents, last year, as sales were virtually flat. Excluding stock-based compensation, the company posted per-share earnings of 39 cents vs. 36 cents last year.
Polycom (NasdaqGS:PLCM - News) was downgraded to hold from buy at Wedbush Morgan.
Rackable Systems Inc. (NasdaqGS:RACK - News) said it expects fourth-quarter results to range from a net loss of $683,000, or 2 cents a share, to net earnings of $194,000, or 1 cent a share. The company said it is "disappointed" it did not meet its per-share earnings and gross margin goals, citing higher-than-expected DDR memory pricing and intense competition as reasons for the missed targets.
Ryanair Holdings (NasdaqGS:RYAAY - News) was downgraded to hold from buy at Citigroup Investment Research.
Southwest Airlines (NYSE:LUV - News) reported fourth-quarter net income fell 19% on 15% higher revenue. Earnings fell to $57 million, or 7 cents a share, from $70 million, or 9 cents, in the year-earlier period. Excluding special items, earnings were 12 cents against 10 cents. Revenue reached $2.28 billion from $1.99 billion. A survey of analysts by Thomson First Call produced a consensus estimate of 12 cents of profit on $2.28 billion of revenue. Southwest said it hopes in 2007 to exceed its target of 15% growth in earnings per share excluding special items. For the first quarter, Southwest said it's 100% hedged for jet-fuel prices at the equivalent of an average of $50 a barrel of crude. That's compared with the year-earlier period's level of 75% hedged at $36 a barrel.
Trustmark Corp. (NasdaqGS:TRMK - News) reported fourth-quarter net earnings of $29.4 million, or 50 cents a share, up 6% from $27.7 million, or 50 cents a share, during the year-ago period. There were 59.1 million shares outstanding during the compared with 56 million a year ago.
UST Inc. (NYSE:UST - News) was downgraded to neutral from buy at UBS. The firm cited valuation.
Weyerhaeuser (NYSE:WY - News) was downgraded to neutral from buy at UBS. The firm cite weaker fundamentals.
World Acceptance Corp. (NasdaqGS:WRLD - News) was downgraded to hold from buy at Jefferies & Co., citing valuation. The firm also cut its price target on the stock to $49 from $53.

Labels: ALD, ALSK, AXR, BLKB, CAKE, COSI, FNET, FULT, GHDX, HCP, INTC, ISIS, LLTC, LUV, NDE, PLCM, RACK, RYAAY, TRMK

Intel (NASDAQ:INTC - News) beat earnings estimates, announcing $0.26 EPS over an expected $0.25 EPS. INTC's PowerRating is 4.
AMR Corp (NYSE:AMR - News) is set to announce $0.03 EPS on Wednesday before the open. AMR's PowerRating is 3.
Look for Charles Schwab (NASDAQ:SCHW - News) to report $0.21 EPS before the bell Wednesday. SCHW's PowerRating is 5.
Analysts are expecting JP Morgan (NYSE:JPM - News) to announce $0.94 EPS on Wednesday morning. JPM's PowerRating is 5.
Lennar (NYSE:LEN - News) looks set to report -$1.11 EPS tomorrow before the opening bell. LEN's PowerRating is 5.
Progressive (NYSE:PGR - News) is expected to report $0.50 EPS Wednesday morning. PGR's PowerRating is 5.
Southwest Air (NYSE:LUV - News) looks to announce quarterly earnings of $0.13 EPS Wednesday. LUV's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AMR, INTC, JPM, LEN, LUV, PGR, SCHW

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Intel (NASDAQ:INTC - News) beat earnings estimates, announcing $0.26 EPS over an expected $0.25 EPS. INTC's PowerRating is 4.
AMR Corp (NYSE:AMR - News) is set to announce $0.03 EPS on Wednesday before the open. AMR's PowerRating is 3.
Look for Charles Schwab (NASDAQ:SCHW - News) to report $0.21 EPS before the bell Wednesday. SCHW's PowerRating is 5.
Analysts are expecting JP Morgan (NYSE:JPM - News) to announce $0.94 EPS on Wednesday morning. JPM's PowerRating is 5.
Lennar (NYSE:LEN - News) looks set to report -$1.11 EPS tomorrow before the opening bell. LEN's PowerRating is 5.
Progressive (NYSE:PGR - News) is expected to report $0.50 EPS Wednesday morning. PGR's PowerRating is 5.
Southwest Air (NYSE:LUV - News) looks to announce quarterly earnings of $0.13 EPS Wednesday. LUV's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AMR, Hot Stocks, INTC, JPM, LEN, LUV, PGR, SCHW

AMR Corp. (NYSE:AMR - News) shares rose after Citigroup lifted its price target on the stock to $46 from $34 as part of a larger bullish call on the airline industry. The firm also boosted targets for JetBlue (NASDAQ:JBLU - News) and Southwest Airlines (NYSE:LUV - News).
Bio-Reference Laboratories (NASDAQ:BRLI - News) was upgraded to buy from hold at Jefferies & Co. The firm also boosted its price target on the stock to $30 from $26.
CDC Corp. (NASDAQ:CHINA - News) said it expects fourth-quarter software license revenue to rise approximately 37% to $13.8 million to $14.2 million from $10.2 million a year earlier. The Chinese business software company expects to report earnings estimates for the quarter ending December by early-February, with analysts surveyed by Thomson First Call forecasting earnings of 7 cents a share, on average.
Dendreon (NASDAQ:DNDN - News) shares rose after the Food and Drug Administration has granted priority review status to the company's prostate cancer drug candidate Provenge, meaning that the agency should make a decision on whether to approve the product within six months of receiving the company's market application. Dendreon said Tuesday it expects the FDA to render its decision by May 15. A biotechnology product, Provenge is for the treatment of asymptomatic, metastatic, hormone refractory prostate cancer.
ElkCorp (NYSE:ELK - News) disclosed an amendment to its previously disclosed merger agreement with private equity firm The Carlyle Group. The revised deal calls for Carlyle to commence a tender offer to acquire all outstanding ElkCorp common shares for $40.50 each in cash on or before Thursday. The agreement, which values ElkCorp at about $1.05 billion, including the assumption of $173 million in debt, represents an increase of $2.50 per share from the $38 offer called for in the parties' original Dec. 18 agreement. ElkCorp's board is recommending that shareholders tender their stock to the Carlyle offer and reject a $40 per share cash tender offer from Building Materials Corp. of America.
Pharmacy benefits manager Express Scripts Inc. (NASDAQ:ESRX - News) said it launched its exchange offer for all outstanding shares of larger rival Caremark Rx Inc. (NYSE:CMX - News) . Under the terms of the deal, St. Louis-based Express Scripts is offering to pay Caremark shareholders $29.25 in cash and 0.426 shares of Express Scripts for each share of Caremark held. Based on closing stock prices on Jan. 12, Express Scripts said its offer has a value of $56.87 per share, or about $25 billion, and gives Caremark stockholders a 7% premium to the current value of the rival offer from drugstore operator CVS Corp. (NYSE:CVS - News). The offer from Express Scripts and withdrawal rights are scheduled to expire at midnight Eastern Standard Time on Feb. 13, subject to extension.
FairPoint Communications (NYSE:FRP - News) shares jumped after the company reached a deal with Verizon Communications (NYSE:VZ - News) to combine certain assets in less populated areas of New England. The agreement calls for Verizon to spin off certain operations in Maine, Vermont and New Hampshire and merge them with FairPoint. Verizon investors will receive 1 share of FairPoint for every 55 shares of Verizon held.
FedEx (NYSE:FDX - News) was upgraded to overweight from neutral at J.P. Morgan, citing valuation.
Genesis HealthCare Corp. (NASDAQ:GHCI - News) agreed to be acquired for $63 a share in cash by a joint venture between affiliates of Formation Capital LLC and JER Partners. The deal is valued at $1.7 billion, including the assumption of $450 million in debt, Genesis said. The company said the $63-a-share offer represents a 31% premium over its average share closing price over the past 30 days. The deal to take the company private must still be approved by shareholders. Kennett Square, Pa.-based Genesis provides healthcare and support services to the elderly.
GMH Communities Trust (NYSE:GCT - News) was upgraded to neutral from sell at Banc of America Securities on valuation.
HealthExtras (NASDAQ:HLEX - News) was upgraded to outperform from market perform at Raymond James.
Highway Holdings (NASDAQ:HIHO - News) said it's received two initial original equipment manufacturer orders from U.S. based customers. Financial terms weren't disclosed.
Infrasource Services (NYSE:IFS - News) lifted its outlook for the fourth quarter, saying it saw higher than expected revenue from the successful completion of several projects, increased customer demand for greater volumes of work and favorable weather. The Media, Pa., utility transmission network construction services provider now sees earnings of 15 to 17 cents a share for the fourth quarter on revenue of between $240 million and $250 million. Its previous outlook was for a profit of 11 to 13 cents a share on revenue ranging from $200 million and $210 million in the period.
Interpool Inc. (NYSE:IPX - News) said its board has received a $24 per share acquisition proposal from a group led by Martin Tuchman, its chief executive officer and chairman. Princeton, N.J.-based Interpool, a maker of transportation equipment, said the group includes other significant investors and an investment fund affiliated with Fortis Merchant Banking. Interpool said its board has formed a special committee to review and evaluate the proposal.
Masco (NYSE:MAS - News) was upgraded to buy from neutral at UBS.
Mercer International (NASDAQ:MERC - News) was upgraded to outperform from sector perform at RBC Capital Markets. The firm also lifted its price target on the stock to $14 from $12, citing a higher outlook for pulp prices.
Mills Corp. (NYSE:MLS - News) shares rose after current stockholder Farallon Partners said in a filing with the Securities and Exchange Commission that they've submitted a term sheet to Mills' financial advisors for a proposed acquisition of an additional $499 million worth of shares at a price of $20 each.

Labels: AMR, BRLI, CHINA, CMX, CVS, DNDN, ESRX, FDX, GCT, GHCI, HIHO, HLEX, IFS, IPX, JBLU, LUV, MAS, MERC, MLS, VZ

Barron's reported on Monday that Southwest Airlines has been underrated lately, with shares trading near the cheapest levels in its history, and handily outperformed by legacy carriers. The report further underscores our positive view on the stock, which is down about 5% since the beginning of the year, compared to the Amex Airline index, which is up about 8%.
There is a vague feeling among investors that Southwest has grown so big it does not have the kind of opportunity it once had, Barron's reported. However, the company's fundamentals remain impressive and will stand in good stead regardless of the direction of oil prices or the economy, something that can not be said for the legacy carriers, according to the report. Southwest has less exposure to economic and terrorism risks, and is not hostage to energy prices, given its best-in-class jet fuel hedging strategies.
Earlier in November, we took a bullish view on Southwest's stock, given its strong fundamentals and attractive valuation. Although the company's third quarter results raised some questions about its long streak of solid performance, amid increased competition from its low-cost peers such as Air Tran (AAI) and JetBlue (JBLU), as well as legacy carriers, which now have better cost structures and more flexibility to match their lower-priced counterparts, current risks already appear to be priced into shares.
We continue to believe Southwest's strong and consistent earnings record makes the airline's stock price attractive at current levels. Shares of the company are currently trading at 16.3x forward earnings, compared to the average P/E of 20x and a low of roughly 15x.
--Richard Jahnke, Briefing.com

Labels: LUV, Southwest Airlines Co.

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

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

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

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