Jim Cramer Blog

At midday, stocks were rising modestly on upbeat economic and housing data. Stocks have been less volatile this week as investors have been patient and trying to dissect what the Fed will do at its next scheduled meeting in September. Also midday, oil was trading higher on the day.
In economic news, the Commerce Department said that Durable Good orders gained more than forecast in July. For the month, orders climbed 5.9%, the biggest gain since September. Today's figure came after a revised 1.9% the prior month. Excluding transportation equipment, orders rose 3.7%, the most in nearly two years. In the housing side of the economic picture, sales of new homes increased 2.8% in July to a seasonally adjusted rate of 870,000. Inventory of homes fell -1%, the fourth-straight month it has fallen. The median price of a home in the U.S. was $239.500, up 0.6% from last year's measure.
To end the week, several companies reported quarterly earnings, among them number-two burger giant Burger King (NYSE: BKC - News). For the quarter ended June 30th, the company reported earnings of $36 million, or 26 cents a share, up from a year-ago loss of -$10 million, or -8 cents a share. Excluding items from both those quarters, it earned $40 million, or 29 cents a share, up from $25 million, or 18 cents a share, in 2006. Analysts on average were looking for EPS of 27 cents. Sales hit $590 million, up from $533 million last year. Same-store sales increased 4.4% worldwide, with the U.S. and Canada showing growth of 4.8%. The company attributed the strong quarter to increased sales in its breakfast and late-night operations in the U.S. and Canada.
Continuing on the food theme, ketchup maker H.J. Heinz (NYSE: HNZ - News) said its first-quarter earnings grew 6%. For the quarter, the company posted net income of $205.3 million, or 63 cents a share, up from $194.1 million, or 58 cents a share, in the same period a year ago. Sales climbed 9% to $2.25 billion on double-digit growth in ketchup, beans, and soups. Its earnings came in line with what the street was forecasting. It also increased its full-year EPS outlook to the top of its range of $2.54-2.60.
Over in the tech world, embattled chipmaker Marvell Tech (Nasdaq: MRVL - News) posted a loss of -$56.5 million, or -10 cents a share, compared to a profit of $44.9 million, or 7 cents a share, last year. Excluding stock-based compensation, it would have earned 6 cents a share, in line with what analysts were expecting. Sales rose 14% to $656.7 million on increased sales of its communications and wireless network chips. Costs, meanwhile, surged, as R&D expenses increased 55% and SG&A costs rose 71% from year-ago levels.
In corporate M&A news, the nation's largest home improvement retailer, Home Depot (NYSE: HD - News), said it may cut its sale of its HD Supply unit by as much as $1 billion in an effort to salvage the deal. The deal, which was announced last quarter for $10.3 billion, is in jeopardy as its buyers, private equity groups Bain Capital; The Carlyle Group; and Clayton, Dubilier & Rice, are seeking price cuts. The financers on the deal, which include three top Wall St. banks, are seeking price cuts as well as they are hesitant to finance the mega-billion dollar deal in the current debt market environment.

Labels: BKC, HD, HNZ, MRVL

Gilead Sciences (NasdaqGS: GILD):' ... at $81 - a nice little pullback.'Celgene (NasdaqGS: CELG): ' ... has not only not let us down, but now has a cure for the heartbreak of psoriasis.'Patterson-UTI Energy (NasdaqGS: PTEN): 'PTEN is a land driller and, I think, has room to catch up to King Halliburton.'Halliburton (NYSE: HAL - News)Saks (NYSE: SKS - News): 'If you add the $8 in dividends, plus the appreciation, we almost have a double right here. Let the stock come in ... I was not concerned about the gross margins. I think it's a chance to buy, but we only double down when things have been cut, and cut, and cut. You do a schnitzel, my friend, not a full buy.'Schering-Plough (NYSE: SGP - News): 'I should have taken half off, and let the rest run. My advice to you, to take half off and let the rest run. This stock's a double, but it's still going up.'BP (NYSE: BP - News): ' BP, with a 3+% yield... BP, with still some good properties, with the possibility that they're restructuring... I say you pull the trigger right here.'Cisco (NasdaqGS: CSCO): ''Lets just stick with Cisco.It's down three straight points. That's the better... I like best of breed.'RadioShack (NYSE: RSH - News): ' ... give Julian Day the benefit of the doubt. He's the CEO ... He's rationalizing the stores... He is making it so it's a profitable enterprise. The answer is: Stay long!'
Bearish calls:
RH Donnelley (NYSE: RHD - News): 'It's been too high. I've watched the private equity rumor, over and over again. There's been too much hype in the name... I want to sell RHD.'Geron (NasdaqGM: GERN):'Stem cell speculation... Not for me. Sell, sell, sell! I don't want to come near it. It's up too high.'Tellabs (NasdaqGS: TLAB): 'TLAB's was one of the worst quarters I have heard.'Marvell Technology (NasdaqGS: MRVL): ' ... when you look at a stock like MRVL, I bought it... What was I doing? The financials weren't clean. There is a sign on my desk... and what it says is... Accounting irregularities equals sell. Did I look at that before I bought the stock? I did not.'Sally Beauty Holdings (NYSE: SBH - News): 'It's a 'don't buy, don't buy...' I didn't like their quarter. I did take a hard look at it though.'Crystallex (AMEX: KRY - News): 'No. Chavez don't give a darn about his people... sell, sell, sell! I want you out of that stock now. Enough with him. Enough with that country, unless they come around to our ways.'SunPower (NasdaqGM: SPWR)
Published by SeekingAlpha

Labels: BP, CELG, GERN, GILD, HAL, Jim Cramer, KRY, Lightning Round, MRVL, PTEN, RHD, RSH, SBH, SGP, SKS, SPWR, TLAB

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.
Jinpan International (NYSE:JST). JST's PowerRating is 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.
Natural Resources (NYSE:NRP). NRP'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.
Acadia Research (NasdaqGM:ACTG). ACTG'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.
New York & Company (NYSE:NWY) & Advanced Magnetics (NasdaqGM:AMAG). NWY's PowerRating is 9, and AMAG'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.
BB&T Corporation (NYSE:BBT). BBT's PowerRating is 4.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Marvell Technology (NasdaqGS:MRVL). MRVL's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: ACTG, AMAG, BBT, Hot Stocks, JST, MRVL, NRP, NWY

Blue Chip stocks as measured by the Dow Jones Industrial Average inched upward to another record close, but stocks were otherwise mixed today as the technology sector closed fractionally lower. Oil prices inched down, but the 10-year Treasury note gained.
The Dow set its 20th record close since the beginning of the year. Part of the Dow's boost came from a hostile bid by Alcoa (NYSE: AA), a Dow component, for its Canadian rival Alcan (NYSE: AL). Alcoa offered an unsolicited bid of $26.9 billion for its cross-border competitor. Were the bid to be successful -- and Wall Street was betting today that the price would go higher -- the combined companies would control 20% of the world's aluminum production and would put back together companies split up over antitrust concerns years ago. Alcoa said it would address those issues by divesting itself of other assets. Alcoa's cash-and-stock offer valued Alcan at $73.25 a share, but investors quickly bid up the price of Alcan's stock above that level. Alcoa's shares also closed 8.3% higher.
Another factor that will drive trading this week will be the Federal Reserve, which meets on Tuesday and Wednesday to discuss interest rates and the economy. Most observers expect the Fed to hold the line on rates once again, but investors will be closely watching for any indications of a sentiment change from the central bank.
In other news, Johnson & Johnson (NYSE: JNJ) closed lower after announcing that a new drug-coated stent being developed by its Conor MedSystems unit had failed a key trial and would be pulled from overseas markets. Stents are used by heart surgeons to open up clogged arteries and keep blood flowing. Plans to introduce the new stent into the U.S. were also shelved. Some analysts suggested the announcement wasn't a major financial blow because the product was only expected to be a modest contributor over the next 12-18 months. Shares of Boston Scientific (NYSE: BSX) and Abbott Laboratories (NYSE: ABT), which offer competing products, rose on the news.
In the tech sector, Yahoo (Nasdaq: YHOO) backtracked following Friday's advance that was driven by rumors that it's talking to Microsoft (Nasdaq: MSFT) about some sort of linkage that would enable the two companies to better blunt Google (Nasdaq: GOOG).
Chipmaker Marvell Technologies (Nasdaq: MRVL) gained 1.1% after the company announced management changes to address problems stemming from its stock-option program. The company's board said its options problems were the result of a "systemic failure of internal controls." Marvell's CFO quit and the company fired the general counsel of its U.S. subsidiary. Co-founder Sehat Sutardja was asked to give up the chairman's title, but remains as CEO. Co-founder Weili Dai will assume a "significantly reduced role."
Finally, Berkshire Hathaway (NYSE: BKR-B) held its annual meeting over the weekend, during which CEO Warren Buffett commented that he's shopping for a huge deal in the $40-$60 billion range, but he's having trouble finding the right candidate. He also talked about succession plans, though he has no immediate plans of stepping down.

Labels: AA, ABT, AL, BSX, GOOG, JNJ, MRVL, YHOO

Bullish calls:
Chemed (NYSE: CHE - News): 'I prefer CHE, when I want to do hospice.'Brush Engineered (NYSE: BW - News): 'We caught a double in this one. You know I like high-performance materials.'Allegheney Technologies (NYSE: ATI - News): 'I also reiterate right here, ATI, $107. Going higher.'FactSet Research (NYSE: FDS - News): 'Fabulous, fabulous quarter. This company seems to be doing everything Cheesecake Factory (NasdaqGS: CAKE)Chipotle Mexican Grill (NYSE: CMG - News)TD Ameritrade (NasdaqGS: AMTD): 'I didn't know that stock was below $15... You know, that's attractive here. Wow. Below $15? ... That's too cheap.'Qwest Communications (NYSE: Q - News):'I think this company is just part of a major ramp. You know that I think Dick Notebart is the best of an industry ... I'd like to buy even more.'Gmarket (NasdaqGM: GMKT): 'Look, I think the worst is over ... I just did a terrible job with it. I said take a little profit on it. I should have said take it all ... But down here, no. I would never back away from it down here, but if it gets back to $20, sell, sell, sell! All right?'eBay (NasdaqGS: EBAY)Marvell Technology (NasdaqGS: MRVL): 'They still can't get their financials out because of this darn options probe ... I don't want to sell it at $16. There's too much upside, because I just believe it's a coiled spring. I think it could go back to the $30s when they get it right ... I'm really mad at them. Memo to Marvell Tech: You guys should be ashamed!'Kinder Morgan Energy (NYSE: KMP - News): 'You are so in the house of pleasure, with a 6% dividend, with monster-good management, with a shareholder-friendly outfit... with a stock that just kind of perks along, that is the kind of thing I want you to stay with.'
Neutral calls:
Brocade (NasdaqGS: BRCD): 'I 'm waiting for the news out of the meeting, because I think that BRCD is suffering from the same incredible, unbelievable bear market that tech is in right now ... I still thought BRCD could be a good trade. Let me get more intel about how that meeting's going before I slam it here, because I like the stock.'
Bearish calls:
Yum! Brands (NYSE: YUM - News): 'I am concerned about YUM ... it didn't go down enough after the Taco Bell incident... I think that you should get out of YUM.'Stride Rite (NYSE: SRR - News): 'The quarter wasn't that good ... they've got to show some growth in the core, regular Stride Rite shoes, and they didn't do it. I think that stock is not going up here. Sell, sell, sell.'Nvidia (NasdaqGS: NVDA): 'I am not a fan of graphic chips. It's too expensive. I fear that almost every single semiconductor company that I recommend on this show goes bad. I'm saying take profits on NVDA.'

Published By SeekingAlpha

Labels: ATI, BRCD, BW, CHE, CMG, FDS, Jim Cramer, KMP, Lightning Round, Mad Money, MRVL, NVDA, Q, SRR, YUM

Brocade (NasdaqGS:BRCD - News) reported fiscal first-quarter earnings tripled on 32% higher revenue.

CBS Corp. (NYSE:CBS - News) swung to a fourth-quarter profit from a year-earlier loss, raised its dividend 10% and plans to buy back up to $1.5 billion of stock
CDI Corp. (NYSE:CDI - News) said it earned $6.8 million, or 34 cents a share, in the fourth quarter, up from $3.3 million, or 16 cents a share, in the same period a year ago. The Philadelphia-based staffing company said revenue rose to $321 million from $290.7 million. Analysts polled by Thomson Financial were forecasting earnings of 28 cents a share on revenue of $311.2 million. "A healthy capital spending environment,plus our current pipeline of new business wins, could produce organic revenue growth in the range of 7% to 9% for 2007," CEO Roger Ballou said in a statement. CDI is expecting first-quarter revenue growth of 7% to 9%.
Cogent Inc., (NasdaqGS:COGT - News) the South Pasadena, Calif., provider of fingerprint-biometric services, reported fourth-quarter net income fell 34% as revenue decreased 8.5%.
HealthExtras Inc.'s (NasdaqGS:HLEX - News) fourth-quarter net income rose 94% as the Rockville, Md., pharmacy-benefits-management company's revenue more than doubled to $396.2 million. For 2007, the company sees earnings of $1 to $1.06 a share on revenue of $1.8 billion.
Herbalife Ltd.'s (NYSE:HLF - News) fourth-quarter net income rose 39% on 19% higher sales.
Marvell Technology Group Ltd. (NasdaqGS:MRVL - News) posted preliminary fourth-quarter net revenue of $622 million compared with $489 million during the year-ago period.
RadioShack (NYSE:RSH - News)reported fourth-quarter net income of 62 cents a shae, up from 38 cents in the year-earlier period. Revenue was $1.46 billion compared with $1.67 billion. Analysts surveyed by Thomson Financial had been estimating 43 cents on revenue of $1.47 billion.
Superior Energy Services Inc. (NYSE:SPN - News) fourth-quarter earnings more than tripled as revenue at the Harvey, La.-based provider of oilfield services and equipment rose to $319.1 million vs. $188 million. The year-ago results were hurt by Hurricanes Katrina and Rita.
TNS Inc. (NYSE:TNS - News) swung to a fourth-quarter net loss of 28 cents a share from earnings of 6 cents a share. Excluding charges the loss was 13 cents a share. The Reston, Va.-based provider of the data communications services posted revenue of $74.4 million vs. $65.6 million.

Published By MarketWatch

Labels: BRCD, CBS, CDI, COGT, HLEX, HLF, MRVL, RSH, SPN, TNS

"Pipeline Play": Biosite (NasdaqGS: BSTE)
Cramer wanted viewers to take a look at Biosite which will be in demand if the Democrats "storm the winter palace" in November, because the money will go out of Big Pharma into "small, diagnostic plays." He likes the fact that Biotech is new and not yet played out, and comments that this producer of diagnostic tests keeps reinvesting money into new products. Cramer added Biosite is "sitting on top of a new product cycle," and should see an upside as well as more analyst coverage. He also predicts a short squeeze which should bring the stock up, and notes the company implemented a 12% buyback of its stock, and Fidelity is increasing its stake in the company from 12% to 15%. Cramer likes Biosite as a "pipeline story" and thinks the shorts are going to be sorry.
Here Comes the Sun Microsystems (NasdaqGS: SUNW)
Cramer declares that SUNW, a stock he has "hated for a very long time," is now an "under -$10 turnaround" because its new management is making serious changes by cutting costs and continuing to improve its sales. However, he cautions against impulse buying, and urges investors to find a good entry point and not to buy before Monday afternoon. Cramer sees upgrade potential, notes that its server business is "en fuego" and its software business is strong. He reminds investors to use limit orders when buying.

The Week Ahead: GlobalSantaFe (NYSE: GSF - News), Marvell Technology (NasdaqGS: MRVL), Analog Devices (NYSE: ADI - News), Blockbuster (NYSE: BBI - News), Dynegy (NYSE: DYN - News), Foster Wheeler (NasdaqGS: FWLT), McDermott (NYSE: MDR - News), Charter Communications (NasdaqGM: CHTR), Sprint (NYSE: S - News), Gap (NYSE: GPS - News), Viacom , and VeriFone (NYSE: PAY - News)
On Monday, Cramer suggests buying GSF before it reports a "blowout quarter" and would pick up MRVL after its disappointing report. He sees hope for MRVL because ADI indicated the worst is over in the chip inventory cycle. Cramer says investors should sell BBI before Tuesday and buy some back after a selloff, and he would do the same with DYN. He predicts strong earnings for FWLT and MDR, would buy CHTR ahead of its report, and would only pick up Sprint if it has an "incredibly miserable" quarter. Cramer also suggests taking a look at GPS, Viacom and PAY.
Mad Mail: Sirius Satellite Radio (NasdaqGS: SIRI) and XM Satellite Radio (NasdaqGS: XMSR)
When faced with a potential merger, Cramer says it is better to buy stock in the stronger rather than the weaker company, because even if the deal is off, the better company will rise.
Published By SeekingAlpha

Labels: ADI, BBI, BSTE, CHTR, DYN, FWLT, GPS, GSF, Jim Cramer, Mad Money, MDR, MRVL, PAY, S, SIRI, SUNW, XMS

Bullish calls:Crocks (NasdaqGS: CROX): ' ... take advantage of the way the bears pushed down Crocs.'Under Armour (NYSE: UA - News) InterDigital (NasdaqGS: IDCC): 'I'm blessing. ... I think it's OK. It is at a 52-week high.'Yamana Gold (NYSE: AUY - News): '52-week high I am not backing down. We caught a double.'Texas Roadhouse (NasdaqGS: TXRH): 'JPMorgan stepped up to the plate today and they agree that Texas Roadhouse should no longer be the punching bag that it's been. ... It's going to 20.'Transocean (NYSE: RIG - News)Mastercard (NYSE: MA - News): 'People who sold MasterCard are going to be dead wrong. ... MasterCard at 107, two thumbs up, way up.'Halliburton (NYSE: HAL - News): 'What I am sticking with is, on the low valuation [Halliburton and Transocean.]'NYSE Group (NYSE: NYX - News): 'Indeed, my stock of the year. ... Indeed when that merger is done ... the Euronext deal ... the numbers will go up ... And I am proud to say that I backed up the truck when it went into the 80s. Did you?'Onyx Pharmaceuticals (NasdaqGM: ONXX): '... I think people feel Onyx Pharma has run too much. ... I think it can get a bid.'BEA Systems (NasdaqGS: BEAS)Devon Energy (NYSE: DVN - News)Marvell Technology (NasdaqGS: MRVL)
Bearish calls: Delia's (NasdaqGM: DLIA): 'Too Tough.'Goldcorp (NYSE: GG - News): 'I used to love GG, then they did that really bad merger.'Helix Energy (NYSE: HLX - News)New River Pharmaceuticals (NasdaqGM: NRPH)Chesapeake Energy (NYSE: CHK - News)

Published By SeekingAlpha

Labels: AUY, BEAS, CHK, DVN, GG, HAL, HLX, Jim Cramer, Lightning Round, MA, Mad Money, MRVL, NYX, ONXX, RIG, UA

Bullish calls:
Palomar Medical Technologies (NasdaqGS: PMTI): 'I think PMTI should be bought. I want to wait to see what happens.'Joy Global (NasdaqGS: JOYG): 'Mining equipment is - I think - a growth area again, after many years ... I think JOYG is in a nice spot ... I think it's ridiculous that that stock's so low... buy buy buy!'Marvell Technology (NasdaqGS: MRVL): ' ... if you want a turnaround semi - and if you pay more than $18, I'm going to regret it - MRVL is the one that has the least down, and the most up. Swap out of LSI and into MRVLFord (NYSE: F - News): 'I like the management of F. I think they're really good. I don't like the common stock. The common stock's not as good as the convertible. I say swap out of the common, and get into the F convertible. And Mulally's doing a great job there.'Lundin Mining (AMEX: LMC - News): 'I think that LMC is the heir - it is the one that will be bought before any ... I want to back up the truck up at $10 on LMC.'L-1 Identity Solutions (NYSE: ID - News): I think that Bob LaPenta ... I genuinely believe that he is building a powerhouse. I do believe that - if he doesn't get the stock up through acquisitions - he will sell the company. Bob LaPenta is a bankable man, and I am sticking with him.'CarMax (NYSE: KMX - News): 'Let me tell you something. AN and KMX are both fabulous, fabulous stocks, and I want to own both of them ... I do believe that KMX has too far behind AN, and you should pull the trigger right now!'AutoNation (NYSE: AN - News)United Auto Group (NYSE: UAG - News)Asbury Automotive Group (NYSE: ABG - News)Service Corp (NYSE: SCI - News): ' I think that this company - which was in the early 2000s just a mess - has gotten its act back together. It's become, once again, a great growth company.'Level 3 Communications (NasdaqGS: LVLT): 'LVLT is just terrific here. It is going to be the bandwidth company of the future. I think that LVLT will either be acquired .... or go cash flow positive by the end of the year, and blow the numbers away in 2008. LVLT remains my favorite under-$7 stock on Mad Money.'Celgene (NasdaqGS: CELG)Lamson & Sessions (NYSE: LMS - News): 'I send you to LMS. Cheaper and better.'
Bearish calls:
LSI Logic (NYSE: LSI - News): 'No! Questionable. Not one of my favorite semis at all.' But if you want a turnaround semi - and if you pay more than $18, I'm going to regret it - MRVL* is the one that has the least down, and the most up. Swap out of LSI and into MRVLAdvanced Micro Devices (NYSE: AMD - News)Urban Outfitters (NasdaqGS: URBN): 'We've had a major turn in URBN. It has just moved all the way up from $18 to $26, and do you mind if I (ring the register) on that name. I think the run is overdone. I want to sell, sell, sell URBN.'Allos Therapeutics (NasdaqGM: ALTH): 'No. Too hard. Man, we've got CELG down so much. Why you fooling around with that lesser stuff.'Symmetricom (NasdaqGM: SYMM): 'No. Copper wiring. You want copper wiring, I send you to LMS. Cheaper and better.'

Published By SeekingApha

Labels: ABG, AMD, AN, F, ID, Jim Cramer, JOYG, KMX, Lightning Round, LMC, LSI, Mad Money, MRVL, PMTI, SCI, SYMM, UAG, URBN

Labels: DEO, DPZ, ERTS, HYDL, Jim Cramer, Mad Money, MRVL, NOV, S, SHLD, THQI, TS, VG

Case for Trades: Marvell (NasdaqGS: MRVL)
Cramer discussed the outdated stigma that surrounds trading, and said that there is no reason to avoid trades now that taxes and commissions are the lowest he has seen them. "Buy and hold" doesn't cut it anymore, he commented, adding that his Mad Money picks are not meant to be held forever; investors "should try to buy as low as possible and sell high ... That doesn't make you a trader. It makes you an intelligent manager of your own money." In spite of an upgrade by Deutsche Bank and J.P Morgan, semiconductor stocks will not be strong until the middle of the year, and he expects MRVL to get hit harder than the rest. However, Cramer would buy the stock low because "Marvell is not a trade. It's not an investment. It's just a good idea." He would pick up the stock below $18 before it reports, but would do homework first.
Oil is Well: National Oilwell Varco (NYSE: NOV - News), Teneris (NYSE: TS - News), Hydril (NasdaqGS: HYDL)
Although The Street has abandoned oil, Cramer likes NOV, since it "is the biggest maker of oil rigs on earth," reported an amazing quarter and is cheap. He points out that just as Teneris has agreed to buy HYDL for $97 a share, another buyer could pick up NOV. Cramer would buy some before it gets a takeover bid.
Q & A and Mad Mail: Sears Holdings (NasdaqGS: SHLD), Sprint (NYSE: S - News), Electronic Arts (NasdaqGS: ERTS), THQ (NasdaqGS: THQI), Domino's (NYSE: DPZ - News), Diageo (NYSE: DEO - News), Vonage (NYSE: VG - News)
Cramer says that he is recommending SHLD because it could be another Berkshire Hathaway, but said that he would get rid of the stock if he saw "deviation from... the Berkshire plan." Concerning Sprint, he says he would not recommend a stock when its fundamentals are deteriorating, and adds, "I keep waiting till the estimates get so low that they can't deteriorate further," and says that he would back up the truck when that happens. While the success of one game would not make such an impact on $15 billion company ERTS, it could affect$2 billion company THQ, and since the stock is expensive, Cramer would not buy it. Cramer says that "the worst is over" for DPZ, and would hold on to it, since it is a good chain. Finally, Cramer says Diageo is "terrific" and VG is "radically overpriced."
Published by SeekingAlpha

Labels: DEO, DPZ, ERTS, HYDL, Jim Cramer, Mad Money, MRVL, NOV, S, SHLD, THQI, TS, VG

Micron (NYSE: MU - News), Broadcom (NasdaqGS: BRCM), Marvell (NasdaqGS: MRVL): In spite of upgrades from JP Morgan and Deutsche Bank, Cramer would stay away from semiconductors and would not buy tech stocks until the second half of the year. He points to the fact that MU is down 3% and a 1.2% decline in the SOX index of chip stocks as evidence that investors should avoid the sector now. Although he might see the logic of buying Broadcom, given its fall, and Marvell, Cramer cautions that these are strictly long-term investments.
Chesapeake (NYSE: CHK - News), Marathon Oil (NYSE: MRO - News), Agco (NYSE: AG - News): Cramer says that CHK is "not my cup of tea" because management has "financed the heck out of it." He doesn't see CHK moving, but predicts that MRO is going up. Finally, on AG's rally, Cramer says that bullishness on ethanol can obscure AG's terrible fundamentals.
Published By SeekingAlpha

Labels: AG, CHK, Jim Cramer, Jim Cramer's Stop Trading, MRO, MRVL, MU

Cramer said glut talk from big memory chipmaker Micron (MU) points up the futility of trying to buy tech out of season. Cramer said it's unwise to buy tech stocks till the latter end of the year, because of the way Wall Street works. Thus he said he's not surprised to see Micron down 3% and the SOX index of chip stocks down 1.2% even in the wake of upgrades from JPMorgan and Deutsche Bank.
Cramer said he could "make a case" for buying Broadcom (BRCM), given how far the stock has fallen, and he owns Marvell (MRVL) for his charitable trust. But he said those plays are strictly long-term holdings, based on how poor results have been and the seemingly low risk that they can get any worse.
Cramer doesn't like gas driller Chesapeake (CHK), saying it's "not my cup of tea" because management has "financed the heck out of it." Cramer said while Chesapeake goes from $29 to $29 to $29, Marathon Oil (MRO) is moving ahead.
Cramer also said the rally in Agco (AG ) shows that the bull case on ethanol and agriculture can overcome even the most pathetic, quarter-missing fundamentals.
Published By TheStreet.com

Labels: AG, BRCM, CHK, Jim Cramer, Jim Cramer's Stop Trading, MRO, MRVL, MU

Marvell (MRVL), Broadcom (BRCM), Seagate (STX), Level 3 (LVLT), Blockbuster (BBI), Goldman Sachs (GS): Cramer says that tech is okay for a trade until August, and he likes the wireless chip players because of the iPhone, Xbox and Playstation. Cramer adds that Marvell is 2 down because of its bad quarter, ten up, and mentions that he also likes BRCM and that STX is going higher. Cramer proclaims the death of the bears in speculative plays such as like LVLT, up 5% at $6.26, and Blockbuster, up 2% at $6.78. He predicts that GS, up 3% to $219 will make it to $300.
Marriott (MAR), Starwood (HOT), Hilton (HLT) and Trump (TRMP): Those who don't like hotel stocks "don't do their homework," said Cramer who is bullish on MAR, HOT and HLT, and says he is not afraid of buying TRMP, because it has dropped to $17.
Published by SeekingAlpha

Labels: BBI, BRCM, GS, HLT, HOT, Jim Cramer, LVLT, MAR, MRVL, STX, TRMP

Bullish calls:
Schlumberger (NYSE: SLB - News): 'I'm steering people toward SLB.'Transocean (NYSE: RIG - News): ' ... that's the cheapest international driller, now that SLB has run so much. That's a better buy.'Companhia Vale do Rio Doce (NYSE: RIO - News)Allegheny Technologies (NYSE: ATI - News)Wachovia (NYSE: WB - News): 'This is a 4% yielder with decent growth. Good quarter today. You know I like the regional banks. I say it's okay. I prefer BNS.'Bank of Nova Scotia (NYSE: BNS - News): ' I prefer BNS [to WB].'Ford (NYSE: F - News)Marvell Technology (NASDAQ: MRVL - News): 'I am going to recommend - even at the price of perhaps a shortfall near term - MRVL. I think that's one down and 10 up. That's my gift to you.'Charles Schwab (SCHW): 'SCHW's good. ETFC's good. AMTD's good. They all trade more expensively, though, than the full-service brokers.'Ameritrade (NASDAQ: AMTD - News)E*Trade (NASDAQ: ETFC - News)Goldman Sachs (NYSE: GS - News): 'I have been recommending GS. The stock's been down for two days and, you know what? (motions to back up the truck for a 'mon-back) - even that short of time, and I want to buy GS, because I'm using a $300 price target and it's one of my stock picks of the year - my value stock pick...'Johnson Controls (NYSE: JCI - News)Adobe Systems (NASDAQ: ADBE - News): 'I think ADBE is unfairly being brought down. I think ADBE is right here ... I'd like to buy this one for my charitable trust. That's how great I think it is down here ... It's a triple buy. Buy, buy, buy! ... I want you to stay with it.'@Road (NASDAQ: ARDI - News): ' Good speculative play on the net. I like it, I'll endorse it.'Darden Restaurants (NYSE: DRI - News): 'Yes! That's a well-run company!'
Bearish calls:
Talisman Energy (NYSE: TLM - News): 'I don't want to be in TLM. I want to be in RIG.'Zoltek (NASDAQ: ZOLT - News): ' I don't like ZOLT. I think it's played out. We recommended it on this show at $12. When it doubled, we took our profits. And I'm not going back. I do not want to own ZOLT.'Syntax-Brillian (NASDAQ: BRLC - News): 'No can do, my friend. That's like hamburger helper. I'd rather go for the real thing; I'd rather go for the filet mignon [MRVL].'Fuel-Tech (NASDAQ: FTEK - News): 'I like pollution control stories somewhat ... I'm concerned that this is one of those 'State of the Union' plays, where it drops down tomorrow, so let's take profits today.'Visteon (VC)SAIC (NYSE: SAI - News): 'There is a sense that the consulting companies that report to the government for military purposes aren't doing well ... I think that SAI - which I liked a little too much, I now say - is just 'don't buy, don't buy' ... New position for me - new negativity.'Evergreen Solar (NASDAQ: ESLR - News): 'Another one of these (bear)... I am not going to countenance any of these solar plays with energy going down!'Baker Hughes (NYSE: BHI - News): 'BHI has a decent product portfolio, but RIG* is the name of the game ... because it's an international driller. 'Complete Production Services (NYSE: CPX - News): 'No, we're going to RIG.'
Published by SeekingAlpha

Labels: ADBE, AMTD, ARDI, ATI, BNS, BRLC, DRI, ETFC, F, GS, JCI, Jim Cramer, Mad Money, MRVL, RIG, RIO, SLB, TLM, WB, ZOLT

Rejecting Tech: Advanced Micro Devices (NYSE: AMD - News), Intel (NASDAQ: INTC - News), Texas Instruments (NYSE: TXN - News), Qualcomm (NASDAQ: QCOM - News), National Semiconductor (NYSE: NSM - News), Marvel (NASDAQ: MRVL - News), MRV Communications (NASDAQ: MRVC - News), Apple (NASDAQ: AAPL - News), Symantec (NASDAQ: SYMC - News), Rackable Systems (NASDAQ: RACK - News), Brocade Communications (NASDAQ: BRCD - News) and EMC (NYSE: EMC - News), Research in Motion (NASDAQ: RIMM - News)
Since it is mid-January, Cramer tells investors that it is time to get out of tech, with a few notable exceptions. The tech businesses that are particularly troubled are cell phones, handheld products, storage stocks, semiconductors and software. Many of these companies are plagued by competition, which is a more destructive force than the calendar. It is for this reason Cramer suggests staying away from Intel and AMD, which are locked in a fierce price war, and he thinks that even the Vista launch will not propel these stocks. Cramer would also sell TXN, QCOM and NSM. However, he would stay with MRVL which is levered to Apple's iPhone. He also likes MRVC because it is poised to spin off one of its divisions. On the other hand, Cramer said that Symantec was a "disaster" and that it had "one of the ugliest preannouncements that was never supposed to happen." He would also stay away from storage companies RACK, BRCD and EMC. Since the handheld trade is "dead," Cramer would unload Research In Motion.

Playing for Keeps: Cisco (NASDAQ: CSCO - News), Apple (NASDAQ: AAPL - News), Hewlett-Packard (NYSE: HPQ - News), Google (NASDAQ: GOOG - News), Microsoft (NASDAQ: MSFT - News), Level 3 Communications (NASDAQ: LVLT - News)
Cramer said that some tech stocks transcend the calendar with "blowaway earnings" and great products. He would stay with CSCO, AAPL, HPQ, GOOG and MSFT or buy them on weakness. Although investors may be tempted to cash in on CSCO, Cramer says that CSCO has a "product-driven story that cannot be denied," its competitors are out of the picture and its three downgrades have taken risk out of the stock. Apple reported a strong quarter, gave "ridiculously low guidance" and should continue going up because of the iPhone, according to Cramer. MSFT's dip is a "big fat gift," and Cramer calls Vista the "single most awaited product story in years." He anticipates a big upside surprise with Google and calls it the best internet stock. For a good speculative internet play, Cramer recommends LVLT.
Published By SeekingAlpha

Labels: AAPL, AMD, BRCD, CSCO, EMC, GOOG, HPQ, INTC, Jim Cramer, LVLT, Mad Money, MRVC, MRVL, MSFT, NSM, QCOM, RACK, RIMM, SYMC, TXN