Jim Cramer Blog

Father's Day Special: Google (NasdaqGS: GOOG)
Devoting Thursday's program to Father's Day, Cramer thanked his father for encouraging him to read the stock pages early and getting him "hooked" on the game. When asked by an audience member if it is better to buy options of a viable, high-priced stock like Google rather than shares, Cramer replied he would prefer buying shares, even if one can afford only one share; "My take is just own the common stock -- don't out-think it ... buying one share of Google is a great way to get started."
The Russerts: Nike (NYSE: NKE)
Tim Russert, host of NBC's Meet the Press, and his son Luke joined Cramer and discussed their success with Nike which brought Luke's savings from $21,000 to $25,000. He also discussed the importance of teaching kids to save money and to work hard.
Family Therapist: Masco (NYSE: MAS), Coke (NYSE: KO) and Pepsi (NYSE: PEP)
Cramer played the role of family therapist for a mother, father and daughter who couldn't agree about whether or not to invest in MAS. He said MAS has been a "tremendous share taker" even though housing in sluggish, and would own the stock for the short and the long term. Concerning a father-daughter conflict over whether to own Pepsi or Coke, Cramer said "This is one of the toughest I have ever seen." While the father was correct that Coke is strong internationally, the daughter was also right to favor Pepsi, since it is growing faster than Coke. Cramer would stay with Coke for the remainder of the year, but for the next five years, his pick is Pepsi.
Icahn's Dad
Carl Icahn came onto the program and discussed his father, an intellectual type, who told Carl that he would not make money in business. However, his father taught him the "power of education." When Cramer asked Carl Icahn if he would choose to be lucky or good, Icahn replied, "the guy who works the hardest -- he gets the luckiest anyway."
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Labels: GOOG, Jim Cramer, KO, Mad Money, MAS, NKE, PEP

Owens Corning (NYSE: OC - News), Masco (NYSE: MAS - News), Centex (NYSE: CTX - News) and Cummins Engine (NYSE: CMI - News): A strong quarter from OC, MAS and CTX indicate there are sectors that are moving, and while things are slow on the domestic scene, exporters are faring well. Cramer adds CMI is a "fabulous" exporter, even though "No one ever thought that Cummins Engine in Indiana even knew where Kazakhstan was."
Liz Claiborne (NYSE: LIZ - News), Jones of New York (NYSE: JNY - News): After disappointing reports from LIZ and JNY, Cramer is bearish on retail, and said LIZ was the worst report he had seen the entire quarter, while JNY was "really bad."

Labels: CMI, CTX, Jim Cramer, Jim Cramer's Stop Trading, JNY, LIZ, MAS, OC

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

Published By Michael Baron of MarketWatch

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

On Speculation: Landec Corp (NasdaqGS: LNDC)
Cramer announced that he was going to discuss speculative stocks on Fridays to give investors a weekend to cool off before pulling the trigger on potentially risky companies. Friday's speculative play was LNDC, a $12 stock that, according to Cramer, is in the hottest part of one of the hottest sectors, which is seed technology. LNDC's technology, "intellicoat," prevents seeds from germinating and absorbing water too early, and allows farmers to plant up to four weeks ahead of time. Cramer says, "if corn is the next oil, LNDC is the equivalent of a pressure pumper that gets more oil out of the well." He advised investors to use limit orders and not to buy an entire position at one time.
The Week Ahead: Prudential (NYSE: PRU - News), Metlife (NYSE: MET - News), Aon Corp (NYSE: AOC - News)
Cramer commented that he doesn't like the market here, that the financials are "acting terrible," the real estate market is a "total collapsed bubble," and that gold, "ever the enemy of paper" is going up and that gold investors should take profits. In this "glass is half-empty" environment, Cramer warns of selloffs in even the best companies, and suggests buying only half of the intended amount and making a move at the end of the week after the "selling squall." He likes Prudential, which reported a "beautiful quarter," AOC, and MET, which is best-of-breed and is the "big sleeper" of next week with 10% accelerated growth. Cramer would buy it before and after its earnings report and recommends patience if it doesn't rise immediately.
Chipotle Mexican Grill (NYSE: CMG - News) and Denny's (NasdaqCM: DENN)
Concerning CMG and DENN, Cramer says he doesn't mind fact that these companies have debt because their financials are still good, they can refinance at low rates thanks to the strong bond market, and can raise earnings per share by decreasing interest payments. He calls Denny's a "bad going to good" story, but would wait, and calls CMG a "good going to better" story which will have a "fantastic quarter." However, Cramer would hold off until CMG gets hit and would buy it low.

Life Time Fitness (NYSE: LTM - News), Baidu.com (NasdaqGM: BIDU), Psychiatric Solutions (NasdaqGS: PSYS)LTM has "come in a tad" from where Cramer recommended it as a generational play, but he would still buy it as a long-term stock. He comments that BIDU has just a fraction of Google's value and better growth potential, but is in a precarious position because of China's Communist government. Since BIDU tends to trade wildly after it reports, he would use a downturn as an opportunity to buy it cheaply. Cramer notes that PSYS' management has been bullish ahead of the quarter, and would buy some stocks ahead of time, since PSYS has been acquiring companies, and Cramer expects a "big number bump" next week.

Masco Corp. (NYSE: MAS - News), KBH Home (NYSE: KBH - News), Daktronics (NasdaqGS: DAKT), Reliance Steel (NYSE: RS - News)
Cramer would ring the register on MAS before it reports, since it has had a big run. He predicts that KBH will see a huge selloff, and would sell it before it reports and buy the stock back lower. Cramer likes DAKT which is "remaking the billboard industry in its own digital image" and is building huge billboards at sports stadiums. He would use the 8% dip as an opportunity to get in before it reports. Cramer would take profits in RS because it has risen 8 points since he recommended it.
Published By SeekingAlpha

Labels: AOC, BIDU, CMG, DAKT, DENN, KBH, LNDC, LTM, MAS, MET, PRU, PSYS, RS

Texas Instruments (NYSE: TXN - News), Cisco (NASDAQ: CSCO - News), Apple (NASDAQ: AAPL - News), Tellabs (NASDAQ: TLAB - News), Nortel (NYSE: NT - News), Alcatel (NYSE: ALU - News)
Cramer comments that TXN-led rally is a perfect chance to sell; "These are predictable rallies," he said. "When you have a very bad options hangover that finishes right near the end of the day, and you have a big, bad event like Texas Instruments to get through, then you're going to have a several-day rally." Cramer adds that he doesn't care for TLAB, NT and ALU, and the only two tech stock he would stick with are Apple and Cisco.
American Standard (NYSE: ASD - News) and Masco (NYSE: MAS - News) and Black & Decker (NYSE: BDK - News)
In spite of Goldman Sach's upgrade of the sector, Cramer warns that housing is being attacked by the shorts and the media, however, the "momentum of the buyers" is great. He adds that these stocks don't trade according to their fundamentals and that pin action companies such as ASD and MAS have been inching up every day. Cramer adds that Black and Decker is a buy because it has preannounced.
Schlumberger (NYSE: SLB - News), Transocean (NYSE: RIG - News), GlobalSantaFe (NYSE: GSF - News), Halliburton (NYSE: HAL - News), Hoku Scientific (NASDAQ: HOKU - News)
Cramer disagrees with an Bear Stearns call on oil which implies that SLB is clueless. He likes SLB,RIG and GSF, saying that he is usually cautious of Americna and Canadian drillers. He predicts that HAL will make an international acquisition. He calls HOKU a "trading vehicle" and says it will be a "huge short down the road." He concludes by commenting that while the President makes is seem as if he going to make a move toward alternative energy, investors will have to sell these stocks between 9:30 and 4:30 on Wednesday.
Published by SeekingAlpha

Labels: AAPL, ALU, ASD, BDK, CSCO, GSF, HAL, HOKU, Jim Cramer, MAS, NT, RIG, SLB, TLAB, TXN

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