Jim Cramer Blog

Microsoft Corp. has pounced on slumping Internet icon Yahoo Inc. with an unsolicited takeover offer of $44.6 billion in its boldest bid yet to challenge Google Inc.'s dominance of the lucrative online search and advertising markets.
The surprise offer of $31 per share, made late Thursday and announced Friday, comes with Sunnyvale-based Yahoo in a vulnerable position.
In a statement Friday, Yahoo said it will "carefully and promptly" study Microsoft's bid.
With its profits steadily sliding, Yahoo's stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.
The announcement sent Yahoo's share price up 60 percent in premarket trading, while Google fell 8 percent, weighted down by a fourth-quarter earnings report that missed Wall Street expectations.

Labels: Microsoft Corp., MSFT, Yahoo Inc., YHOO

New Rule #1 : There's a market for everything; pay attention to how it works, Archer Daniels Midland (ADM), Andersons (ANDE) and VeraSun (VSE)
Cramer reiterated his recommendation that investors read his first book: Jim Cramer's Real Money: Sane Investing in an Insane World, in addition to his newest publication, Jim Cramer's Mad Money: Watch TV Get Rich, which contains 20 brand new investment rules, 5 of which he described on Tuesday's show. His first new rule requires that investors be aware of how stocks trade and that there are many sub-markets within the market. When faced with a trendy stock, it is more important to pay attention to supply and demand than media hype. For instance, late in 2005 when demand for ethanol stocks was high and supply was low, it was possible to make truckloads of money with ADM and ANDE. However, when VeraSun went public in June 2006, Cramer declared that the ethanol story was over, since the supply of ethanol exceeded demand. If you'd just been paying attention to the fundamentals, or to the hype about ethanol in the media, you would've been caught totally off-guard by the downturn in ethanol, Cramer said.
New Rule #2: Make sure your stocks actually fit the bill, Microsoft (MSFT) and Cisco (CSCO)
In addition to doing homework, Cramer warned, Don't be bamboozled by what sector your stock belongs to. Instead, know precisely what you own and why you own it. Cramer cautions viewers not to confuse a rally in an entire sector with a rally within the sector. Broad sector rallies are not too difficult to spot or predict. For instance, when the Fed cuts interest rates, rallies are prevalent among cyclicals, and when the economy is perceived as being weak, consumer staples rally. However, most rallies don't work that way, Cramer said. For instance, when there were stories about a tech rally in June 2005, Cramer chose MSFT and CSCO as names that represented tech, when the upsurge was actually a gadget rally, and did not affect these stocks. Cramer suggests looking at industries within sectors.
New Rule #3: Latin America is Always a Trade, BanColombia (CIB)
Cramer envisions that one day this rule may be revoked, but not in the near future, because every time there is an amazing, long-term growth story in Latin America, it will wind up being a trade. This has nothing to do with the fundamentals of the companies, but is the result of huge market-moving investment firms which have the conviction that Latin America is always a trade, and the stocks get hammered as soon as they move on. Cramer admitted that he made this mistake by thinking that CIB was an investment when it was actually a trade.
New Rule #4: Be a Lemming.
Although he confessed that, at first, this rule may sound stupid and terrible, it actually makes sense to go with the big institutions and the movement of the market if the investor has done sufficient homework. This doesn't mean to ride momentum blindly, but it is true that stocks which hit a 52-week high often keep increasing. This isn't about being a unique and individual snowflake. It's about trying to make money, Cramer said.
New Rule #5: Don't be afraid to say something is too hard.
Some things are just too difficult to game, even after doing lot of homework. Cramer confesses that his rough spot is predicting restaurant same-store sales growth; There are too many better, easier ways to make money in the market, he said. Restaurant CEOs have a hard time predicting their own same-store sales, and the weirdest, most unexpected factors can cause worse-than-expected results. Since there is always a bull market somewhere, Cramer doesn't see the point in knocking one's head against the wall with something that is too hard.
Published By SeekingAlpha

Labels: ADM, ANDE, CIB, CSCO, Jim Cramer, Mad Money, MSFT, VSE

Cramer Cries Foul:
United Technologies (UTX), Microsoft (MSFT), Honeywell (HON), IBM (IBM), Fluor (FLR), Union Pacific (UNP), CSX (CSX)
Cramer declared he was sick and tired of taking abuse from people who say I've gotten it wrong, specifically Robert Samuelson who wrote in a recent Newsweek article that Cramer advocates rate cuts only to create a short-term lift for stocks. Cramer argued he has been advocating rate cuts for a year, and band-aid stimulus packages that give away taxpayer monies that we don't have are not the solution. Instead, he advocates a rate reduction of 1.75% and said the Fed was unsophisticated, arrogant and incredibly reckless. Cramer said in the current environment, he would consider buying UTX, MSFT, HON, IBM, FLR, UNP, CSX.
Excuses, Excuses: Motorola (MOT), Nokia (NOK)
Sometimes a loser company's excuses can bring down good companies. Cramer cited MOT, which reported abysmal numbers last week, admitted mobile sales were down 38% and blamed the economy. As a result, there was a huge selloff of MOT and NOK, even though NOK reported a 44% increase in sales, bigger market share and strength in foreign markets. Nokia should not be punished for Motorla's sins, particularly since MOT makes products no one wants to buy and lacks vision.
CEO Interview: Emanuel Chirico of Phillips-Van Heusen (PVH) also with stocks Liz Claiborne (LIZ), VF Corp (VFC), Jones Apparel (JNY)
Cramer says retail is the place to be if there will be another rate cut and mentions he likes LIZ, VFC and JNY in addition to PVH. Emanuel Chirico said although his company was one of the first in the sector to issue warnings about a sluggish consumer, PVH recently beat its estimates by two cents a share. While inventories are up slightly, Chirico highlighted PVH's successful buyback program and its renaming Continental Airlines Area to Izod Arena, which will be a strong marketing tool. While Cramer likes all the retail names he mentioned, he adds PVH is the cheapest in the group.
Published By SeekingAlpha

Labels: CSX, FLR, HON, IBM, Jim Cramer, JNY, LIZ, Mad Money, MOT, MSFT, NOK, PVH, UNP, UTX, VFC

InterContinental Exchange's price had risen dramatically since Cramer recommended the stock on "Mad Money," but has since returned to previous levels, Cramer said. Neither stock has responded favorably to today's news that the CME, which operates the Chicago Mercantile Exchange and the Chicago Board of Trade, is in talks to buy ICE. "What is the ICE doing down?" Cramer asked.
Cramer also believes the economy is not headed for a recession. He named earnings calls from Honeywell (HON), Caterpillar (CAT), Parker Hannifin (PH) and others as signs of the market's health.
Cramer also noted that the KBW Bank Index and the PHLX Housing Sector Index are rallying because of the rate cuts.
In spite of the positive news, Cramer said he believes more action is needed. Given "the losses that we saw for the quarterlies from a Bank of America (BAC) or a Wachovia (WB) ... I genuinely feel that we are too close to the precipice to stop.
"That doesn't mean that a Honeywell isn't doing fine without it," Cramer cautioned. "It's like 1998, when the economy was booming. ... We had to stop the decline [in the financials] ."
Cramer believes the bank woes may remain independent of the broader economy. "The problems are not with IBM (IBM) or Verizon (VZ) ... AT&T (T ) ... Nokia (NOK) ... Microsoft (MSFT)."
Cramer added that the Federal Reserve's 75-basis-point rate cut last week was helpful. "You needed that cut to be able to raise all that money last week." However, the crisis isn't over. "Home price appreciation is nonexistent. ... We saw that number today. ... The oil futures are saying no recession. I think the Fed cuts are needed again."
Published By TheStreet.com

Labels: BAC, CAT, HON, IBM, ICE, Jim Cramer, MSFT, NOK, PH, Stop Trading, T, VZ, WB

Stock index futures rose on Friday as strong earnings from Microsoft Corp (NasdaqGS:MSFT - News) and a speedy agreement on a U.S. economic stimulus package helped boost investor confidence.

Shares of Ambac Financial Group Inc's (NYSE:ABK - News) rose on a London newspaper report that investor Wilbur Ross is in serious talks to take over the bond insurer. Concerns insurers might lose their top credit ratings forcing massive bond losses for investors have weighed on global markets all week.
Microsoft raised its full-year earnings outlook above Wall Street targets and reported a 79 percent rise in quarterly profit.

Labels: ABK, Ambac Fiancial Group Inc., Microsoft Corp., MSFT, Tax Stimulus

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Microsoft (NasdaqGS:MSFT - News) beat earnings estimates on Thursday afternoon, announcing $0.50 EPS over a consensus of $0.46 EPS. MSFT's PowerRating (for Traders) is 6.
Tempur-Pedic (NYSE:TPX - News) missed earnings, reporting $0.52 EPS versus expectations of $0.53 EPS. TPX's PowerRating (for Traders) is 2.
Cash America (NYSE:CSH - News) also missed earnings, with $0.88 EPS versus a consensus of $0.90 EPS. CSH's PowerRating (for Traders) is 3.
Caterpillar (NYSE:CAT - News) reports earnings on Friday morning, with traders expecting $1.50 EPS. CAT's PowerRating (for Traders) is 3.
When Commerce Bancorp (NYSE:CBH - News) announces quarterly results tomorrow morning, analysts will be looking for $0.30 EPS. CBH's PowerRating (for Traders) is 5.
Harley-Davidson (NYSE:HOG - News) is set to report $0.82 EPS on Friday before the bell. HOG's PowerRating (for Traders) is 4.
WW Grainger (NYSE:GWW - News) is expected to announce $1.27 EPS tomorrow morning. GWW's PowerRating (for Traders) is 3.

Labels: CAT, CBH, CSH, GWW, HOG, Hot Stocks, Microsoft Corp., MSFT, TPX

Microsoft Corp (NasdaqGS:MSFT - News) reported a rise in quarterly profit on Thursday, boosted by strong computer sales that are driving sales of its Windows operating system and Office software.
The world's largest software maker said net profit in its fiscal second quarter rose to $4.7 billion, or 50 cents per diluted share, from $2.6 billion, or 26 cents per diluted share, in the year-ago period. Revenue rose 30 percent to $16.37 billion.
Analysts, on average, had forecast Microsoft to earn 46 cents per share on revenue of $15.94 billion, according to Reuters Estimates.

Labels: Microsoft Corporation, MSFT

All three major indices posted modest gains after a volatile session, as investors absorbed news of more mortgage-related losses and a Fed liquidity plan. The Dow added 41 points to end the day at 13,479. Meanwhile, the Nasdaq and S&P each closed up for the session to finish at 2,671 and 1,487, respectfully. Light, sweet crude prices surged higher to settle at $94.39 a barrel. Treasury prices tumbled, while gold prices gained to end at $818.80 an ounce. The dollar fell against the euro, but gained against the yen.
The Federal Reserve announced today that it will mount a joint effort with other central banks to inject billions of dollars of liquidity into the financial system in order to combat the credit crunch. The plan calls for the central bank to conduct four special auctions that will allow banks to bid for the opportunity to borrow directly from the Fed. The first two auctions will take place next week and will be for up to $20 billion each. The amounts of the remaining two auctions will be decided in January 2008.
In other economic news, a report from the Commerce Department showed that the U.S trade deficit widened in October. A reading of the report showed that imports exceeded exports by $57.8 billion, up from a gap of $57.2 billion September. Economists had predicted the gap would be $57 billion.
In corporate news, shares of Bank of America (NYSE: BAC - News) fell -2.7% on the day after the company disclosed in a regulatory filing that it expects fourth-quarter write-downs to exceed the -$3 billion it had predicted last month but was uncertain how big the write-down would be. The bank also said it expects to set aside $3.3 billion in loan-loss provisions in the fourth quarter, which is approximately $1.3 billion more than the previous period. The company expects to remain profitable in the fourth quarter.
Elsewhere, 3M Co. (NYSE: MMM - News), the maker of Scotch tape and Post-it notes, said it expects earnings growth of at least 10% for the full year 2008 fueled by overseas sales and exchange rates. The company said it expects 2008 earnings per share to be between $5.44-$5.47 per share. Analysts, on average, were looking for earnings growth of 9%, or EPS of $5.43 per share. 3M's stock was up 2.4% for the day.
Also today, shares of Sallie Mae (NYSE: SLM - News) tumbled -10.8% after the company slashed its earnings guidance for the fourth quarter and full-year 2008. The student lender also disclosed that it has failed to renegotiate a buyout offer from an investor group that balked at its original offer of $25 billion several months ago. For the quarter, Sallie expects to earn between 52-57 cents per share. On average, analysts were looking for fourth-quarter earnings of 71 cents per share, which is down from previous estimates of 74 cents last month. The company lowered its earnings guidance for 2008 to be between $2.60-$2.80 per share, down from $3.25 per share.
In M&A activity, software giant Microsoft (Nasdaq: MSFT - News) announced today that it had acquired U.K.-based Multimap, a provider of location and mapping technology. Financial terms of the deal were not disclosed. Microsoft said the mapping technology could be used to complement several of its current offerings and may be integrated with future products. Shares of Microsoft were up 1.1% on the day.
By the BullMarket.com Staff

Labels: BAC, MMM, MSFT, SLM

The Dow closed down 211 points and the Nasdaq finishing down 34. The S&P 500 has now given up all of its gains on the year. Najarian continues to like the four horseman names like Apple (AAPL), Google (GOOG) and Research In Motion (RIMM) which showed strength on Wednesday. Adami recommended getting long General Motors (GM) right here with a specific stop price in mind. Finerman found it strange that Fannie Mae (FNM) went up Wednesday. Crude oil came close to $100 on Wednesday, but fell just short and finished the day at $97.19. Gartman feels the stock market is behaving horribly and he is short names like Harley-Davidson (HOG), Tiffany (TIF) and Coach (COH) and long Microsoft (MSFT)and Apple (AAPL). Gartman's favorite position right now is short Cummins (CMI).
CNBC Pharmaceuticals Reporter Mike Huckman joined the show to discuss his take on big pharma stocks. Huckman explained that Pfizer (PFE) is having issues with safety concerns on a stop smoking drug, falling Lipitor sales and generic competition. Huckman also mentioned that Merck (MRK), Eli Lilly (LLY) and Bristol Myers (BMY) were all down on Wednesday. Finerman likes Johnson & Johnson (JNJ).
Investors tend to sell their biggest losers towards the end of the year to reduce the tax hit they take from their winners. Some of the names at 52-week lows are Citigroup (C), Pfizer (PFE), Merck (MRK), J.C. Penny (JCP), Capital One Financial (COF), Advanced Micro Devices (AMD) and AIG (AIG).
Word on the Street
Macke recommended buying The Gap (GPS) on dips. Finerman likes Limited (LTD) on valuation. Adami suggested buying Citi Trends (CTRN) ahead of earnings for Monday. Najarian likes Target (TGT) for its valuation in retail.
Deere & Company (DE) traded up 5% after profits rose 52%.
Najarian suggests looking at Agco (AG)
Najarian noted strong call options trading activity on Tibco Software (TIBX).
Pops & Drops
Pops - Google (GOOG) traded up 2%
U.S. Steel (X) traded up 5% also bucking the down trend in the market.
Drops - Tesoro (TSO) fell 3%
American International Group (AIG) fell 6%.
Circuit City (CC) fell 6% after a JPMorgan analyst downgraded the stock.
Jamba Juice (JMBA) plunged 30%
Final Trade
Macke says don't buy stocks if you don't have to and Adami and Finerman just gave thanks in the holiday spirit.
Najarian likes Apple (AAPL) and he thinks the stock will explode into January.

Labels: AAPL, BMY, CMI, CNBC, CNBC's Fast Money, COF, COH, Fast Money Recap, FNM, GM, GOOG, HOG, LLY, LTD, MRK, MSFT, pfe, RIMM, TGT, TIF

On Tuesday's show Cramer gave out 5 rules for investing in the stock market. His first rule is that there is a market for everything, including the stocks themselves. He said an example was how ethanol stocks were very hot about a year ago, and then several IPOs came on the market, so there was an oversupply of ethanol stocks on the market and the entire sector went down. So the ethanol business and news didn't matter because there were too many ethanol stocks available. Cramer said another example was his recommendation of Sealy (ZZ) at its IPO where he liked the stock, but didn't realize that there was a glut of IPOs, so the IPO market was saturated and the stock tanked.
Cramer took soma calls. The first caller asked how you can know whether an IPO is a good investment or not, and Cramer said that the key is the offering price for the shares. Another caller asked if there are any sectors that Wall Street overlooks, and Cramer said that you should look for a sector that used to have 10 analysts and only has 1 or 2 now and consider that sector for a turnaround. The next caller asked about the Vonage (VG) IPO, and Cramer said that this IPO was overhyped and that they should not have let the company sell stock to its customers.
Cramer's second rule is to know what you own. Sectors don't always matter since stocks within a sector can rally without others. Industries within a sector are the key to rallies, not the sector itself. An example occurred a couple years ago when he called for a tech rally and recommended Cisco (CSCO) and Microsoft (MSFT) because they were the big tech stocks, and he should have been thinking more specifically about the gadget industry within tech, since stocks like Apple (AAPL) were up big. He also said that he wants you to do at least 1 hour of homework each week for each stock you own. He thinks you should give your money to a mutual fund if you don't have enough time.
A caller asked why you don't see big rallies in the biotech sector, and Cramer explained that biotech stocks are moved by FDA rulings, not broader industry moves. The next caller asked how to find the pin action within a sector that Cramer talks about, and he used an example where Boeing (BA) reported a great quarter, and you should look to see who makes the components of the planes they make, since their sales will rise with Boeing's. The next caller asked how to predict performance if a sector is split, like Internet search with Yahoo! (YHOO) and Google (GOOG), and Cramer said that you need to look at management and other company specific factors in that case.
Cramer's third rule is that Latin America should always be treated as a shorter term trade since Wall Street has preconceived notions about the region that prevent it from being a long term investment, and they are the ones who move the market. You should always take profits as a Latin American stock moves up so you don't get caught when the big investors move out of their trade. A caller asked how important our economy is to Chinese stocks, and Cramer said that he doesn't like to recommend Chinese stocks because he doesn't trust their economy. The other caller asked about stocks like Wal-mart (WMT) and Starbucks (SBUX) that are expanding in China, and Cramer said that Starbucks could be the next Yum! Brands (YUM) which doubled their stock price after they doubled their stores in China.
Cramer's next rule is that being a lemming is ok, but he still wants you to go your homework, but if you agree with the moves that big investors are making, then it's good to go with the momentum.
His last rule was to not be afraid to say that something is too difficult to invest or trade on. His example is restaurant same store sales, which he has been crushed on in the past since there are so many factors that contribute to the number and the reaction. He said you aren't being weak, but smart by focusing your time someplace where you can make money.

Labels: AAPL, BA, CHINA, CSCO, GOOG, IPO, Jim Cramer, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, MSFT, SBUX, VG, WMT, YHOO, YUM, ZZ

The Dow finished 66 points into positive territory and the Nasdaq closed up 18 points. The technology sector and retail industry is getting a lot of attention as the holiday season is fast approaching. Technology stocks rebounded Friday after the worst week for the Nasdaq since April 2002. Najarian said this week was not that bad for technology. He highlighted Apple (AAPL), which started the week at $165 and finished the week at $165. Cisco Systems and Oracle (ORCL) both enjoyed a great week as well. Najarian suggested that as soon as Research in Motion (RIMM) hits China the stock will make a huge move.
Jim Goldman joined the show crew to discuss his take on Google entering the wireless space. Goldman says Google (GOOG) is going to make a play for the 700mhz spectrum being auctioned off by the FCC in January. Goldman speculates that this network could be worth $4.5 billion.
Henry Blodget caused speculation on Friday after posting on his blog that Microsoft (MSFT) should buy Yahoo! (YHOO) to gain market share in internet search. Finerman doesn't think the idea is outrageous. Macke also feels that Microsoft has plenty of cash to make the deal.
Hewlett-Packard (HPQ) and GameStop (GME) will report earnings next week. Adami loves Hewlett-Packard, but he is worried that expectations might be too high. The rest of the crew more or less agreed.
Najarian says look at the strong stock performance in companies that sell merchandise at Dick's Sporting Goods (DKS) like Under Armour (UA), Crocs (CROX), Nike (NKE) and Calloway (ELY). Macke agrees and said he would buy Dick's right now.
Wal-Mart (WMT) shines among a weak retail sector after posting a solid quarterly report.
FedEx's (FDX) lowered full-year outlook may be predicting an economic slowdown. Macke says FedEx is a legitimate economic indicator especially for the health of the consumer.
Consumer staples like Coca-Cola (KO), Altria (MO), Colgate (CL) and Procter & Gamble (PG) continue to show strength in a weak market. Adami favors Unilever (UL) at its 52-week high and is cheaper then Procter on valuation. Najarian likes Johnson & Johnson (JNJ) which Warren Buffett owns and Merck (MRK).
Crude oil closed at $95 as traders make another attempt at $100. Adami thinks crude is toppy, but Tesoro (TSO) is worth looking at in the mid-$50's. Najarian would prefer a solar stock play.
Pops & Drops
Pops - Cisco (CSCO) traded up 5% this week after announcing a $10 billion stock buyback.
Advanced Micro Devices (AMD) traded up 2% after the Abu Dhabi government took an 8.1% stake worth $622 million.
Lehman Brothers Holdings (LEH) traded up 7%.
Delta Airlines (DAL) traded up 21% after speculation that a merger with United Airlines (UAUA) could occur.
Corning (GLW) traded up 10% after raising their profit forecast for the fourth-quarter.
Garmin (GRMN) traded up 14%
Sotheby's (BID) traded up 16% after selling $316 million in contemporary art on Wednesday.
Crocs (CROX) traded up 10%
Final Trade
Macke feels positive about Dick's Sporting Goods (DKS).
Adami recommends Lazard (LAZ) for an M&A play.
Finerman would short Hovnanian Enterprises (HOV) because of its high debt levels.
Najarian favors DaVita (DVA)

Labels: AAPL, CNBC, CNBC's Fast Money, DKS, Fast Money Recap, GME, GOOG, HPQ, MSFT, ORCL, RIMM, YHOO

Here are 7 trading ideas for today. This list comes directly from the TradingMarkets Stock Indicators page and is based upon our latest quantitative research.
Bullish
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Baidu.com (NasdaqGS:BIDU - News) & Sunpower (Nasdaq:SWPR - News). BIDU's PowerRating (for Traders) is 9, and SPWR's PowerRating (for Traders) is 7.
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.
Electronic Arts (NasdaqGS:ERTS - News). ERTS's PowerRating (for Traders) 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.
Wynn Resorts (NasdaqGS:WYNN - News). WYNN's PowerRating (for Traders) is 8.
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.
Microsoft (NasdaqGS:MSFT - News). MSFT's PowerRating (for Traders) is 8.
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.
JDA Software (NasdaqGM:JDAS - News). JDAS's' PowerRating (for Traders) is 8.
Bearish
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Tenet Healthcare (NYSE:THC - News). THC's PowerRating (for Traders) is 2.
Published By TradingMarkets.com

Labels: BIDU, ERTS, JDAS, MSFT, SWPR, THC

Trish Regan hosted. Tech stocks are down today. Microsoft was down 2%. Fannie May down 8%. Treasury notes gain, dollar sinks on weak consumer sentiment. Intel was down 2%. Nasdaq down 6% over 3 days, the biggest loss since 2002. Google was down over 3%. Wachovia says they are looking at a $1.1B write-down. Paul Krugman, author of conscience of a liberal, reports on the current credit crunch. He estimates the tight credit situation shall last a long time. Marc Weinberger of W. Quillen Securities says the sooner credit companies and the financial sector as a whole shakes the growing debt dilemma, the more comfortable the consumers and investors will become. Next up was the weak dollar. Rick Santelli says despite the inflation in the U.S, the weakening of the dollar is a good thing. Paul Krugman adds that the trade deficit will fix itself when fundamentals are re-examined. Apple was down 2.5%. Next, the writers guild of America is on strike for day 5. Hollywood production has stopped "How I met your mother," and a rally of 4,000 is expected outside of FOX today. A holiday retail forecast was presented by MaragretBrennan oc CNBC. She says that major retailers like Wal-Mart pay meteorologists to inform them of weather changes, so they can change their shelf products accordingly. Consumer buy on impulse and weather has an impact on consuming. Bon-Ton, Aeropostale, Abercrombie % Fitch, American Eagle and Limited Brands are estimated to be prepared for the weather changes, as well as being the top picks for investors around the season change, according to analytics, also that major retailers like Wal-Mart and Meijers will not be as prepared to serve the consumers.

Labels: CNBC, MSFT, NDAQ, The Call, trish regan

On Friday the Fast Money crew speculated on the news about Citigroup (C). Macke thinks the banks are still a sell here unless you're the fastest of traders. Finerman went long Citigroup through options on Friday and she sees a bounce if CEO Chuck Prince leaves. Macke agrees that it does look like a near term reversal to the upside could be in store for Citigroup. Tim Seymour thinks the downside for the financials might be a bit over done and he bought Merrill Lynch (MER) on Friday.
Famous Legg Mason money manager, Bill Miller, likes financials and consumer names, proposing that the global plays might be over. He predicts that new leadership in the markets will come from US, large-cap, dollar-based stocks. Seymour disagrees and thinks that consumer names will do nothing over the next year. Macke thinks Miller's statement is reckless.
Cisco Systems (CSCO) is set to report earnings on Wednesday. Oppenheimer Chief Market technician Carter Worth joined the show to discuss Cisco Systems. In Worth's opinion, CSCO has relative strength and during market sell-offs investors haven't been selling the shares. Adami notes that fundamentally CSCO is doing well. Seymour contends CSCO is a bell-weather for technology and the company is finding ways to grow outside of the U.S. Macke thinks CSCO is just getting started and any pullback in the name is a chance to buy it. In the technology sector Macke wants a dip on Microsoft (MSFT) so he can get in. Adami favors Western Digital.
Retail Shopping
Most major retailers are set to report same-store sales for October on Wednesday Nov. 7th and Thursday Nov. 8th. Costco (COST) and Macy's (M) are Macke's favorite plays here. Finerman is positive on the retailers, but she is nervous about the consumer and she sold her Target (TGT).
Insurance: A shareholder group including Maurice Greenberg is requesting that American International Group (AIG) look at strategic alternatives. The stock is trading up 3% after hours on the news. Greenberg, who use to run AIG, is currently the largest shareholder and controls $3 billion in the stock. Charlie Gasparino's sources say that Greenberg wants to get rid of the current mangers and board of directors. Macke would be a buyer of AIG off this news.
OIL: Oil hits another record high to close at $95.93. Finerman favors Flowserve (FLS) for a global play. She also mentioned that FLS is her biggest position, although she did trim some on Friday. Adami tells investors Exxon Mobil (XOM) still has a rich valuation and if you want to play the oil space look at Chevron (CVX).
Seymour recommends investors look at emerging markets like Brazil, Russia and China. Brazilian banks Banco Itau Holding Financeira S.A. (ITU) and Banco Bradesco S.A. (BBD) are his plays. In Eastern Europe, he likes cellular plays Mobile TeleSystems (MBT) and Vimpel-Communications (VIP).
Pops & Drops
Pops - IAC Interactive Corp (IACI) traded up 9% after beating earnings.
USEC (USU) traded up 12% on a strong profits report.
Potash (POT) traded up 4% after Russian competitor Silvinit had a major flood causing tight world supplies to tighten further.
Baidu.com (BIDU) popped 16% after profits doubled. Macke declares BIDU is the Google of China.
Drops - Washington Mutual (WM) fell 17% after New York Attorney General Andrew Cuomo sued WM alleging it colluded with a real estate appraisal firm to inflate the value of homes to help ensure that loans went through.
Yahoo! (YHOO) fell 8% for the week.
Target (TGT) fell 6% following the downward trend in the market.
Titanium Metals (TIE) fell 11% after missing profit forecasts.
Quicker than the Ticker
Back on October 8th, Seymour suggested buying CTC Media (CTCM) and Central European Media Entertainment (CETV). Seymour got it right and shares of CTC Media went up 7% and CETV surged 20% since his recommendation.
On October 17th Adami told investors to buy MasterCard (MA). The stock has advanced 17% since he recommended it.
October 29th Finerman advised shorting GPS play Garmin (GRMN). GRMN declined 20% since her call.
It was October 31st when Macke recommended investors to short Citigroup (C). Macke was right and two days later Citigroup fell 9%.
Misfires
Earlier this week on Tuesday, Adami recommended buying Las Vegas Sands (LVS). He missed the trade and LVS plunged 19% since his call. For now he favors Boyd Gaming (BYD).
Last Friday Finerman recommended shorting oil. Since her call oil has climbed 6% higher. Finerman would get out of the short oil trade because it didn't work.
A week ago Macke told investors to buy Procter and Gamble (PG). Procter has fallen 3% since he picked it, but Macke says the earnings report wasn't that bad and maintains its going to work in the long-term.
On October 4th Seymour favored investment bank Merrill Lynch (MER) on valuation. Seymour was way off and Merrill fell 19%.
Final Trade
After a rollercoaster week, the team gives their best picks. Although, not necessarily for stocks.
Macke picks the Indianapolis Colts over the New England Patriots. Finerman went with the New England Patriots.
Adami places his bet on Intel (INTC).
Seymour chooses Immersion (IMMR).

Labels: AIG, CNBC, COST, CSCO, Fast Money, Fast Money Recap, MER, MSFT, TGT

Stocks take a hit, led by CITI Bank, following three straight monthly gains. Oil prices retreat after reaching $96/barrel. Melissa Lee says $45/share will be the probable cut in stock for Citigroup. CNBC correspondents discuss the current condition of the market, under the headline; Markets: Fear of the unknown. David Kotok from Cumberland Advisors says quality of bank earnings will be much higher in the upcoming year. Peter Bookvar disagrees, and believes that you cannot solve the problem of high liquidity by adding more liquidity. Steve Liesman says companies like Citgroup will be vulnerable for months to come. Bill Seidman adds that Citgroup has been outperformed, compared to other banks. David Kotok makes a return, saying that mortgage finance issues are rippling out, despite how most groups like to keep them contained, and is likely that fed rate cuts will inevitably be the bi-product of these inequities. Microsoft, Coca-Cola, Intek, Merk and Hewlett Packard are leaders today. Southwest Airlines chairman; Herb Kelleher was on next to discuss American dependence on crude oil, as well as the relative consequences. He says Americans consume over 45% of the crude oil the world has to offer. He sights fuel efficiency and alternative fuels as ways to improve, as well as being more open to ideas pertaining to alternative fuel sources. He says we need to pursue alternative sources for decades to avoid crisis, and to diverge from our current course of mass consumption of the world's energy resources. Affiliated Computer Systems (ACS) is experiencing some problems with exec's communicating confidential and inappropriate information to competitors. They will be replacing their independent directors in the very near future.

Labels: ACS, Citigroup Inc., CNBC, HP, MSFT, The Call

Crude Oil: Crude oil declined 3% today as investors now fear that the global growth story might be in jeopardy. Finerman said that if you feel the US economy is going to slow down, then demand for oil will also drop. She would look to short the United States Oil Fund (USO). Adami said that shorting Exxon Mobil (XOM) ahead of earnings is a gutsy trade that could pay off big. Dylan Ratigan mentions one more way to short oil is to buy the UltraShort Oil & Gas ProShares (DUG).
Technology: Adami liked hearing that Dell (DELL) is announcing a big buyback, while the stock is at a 52 week high. Najarian says this plays well for Dell, as well as Apple (AAPL), Hewlett-Packard (HPQ) and Microsoft (MSFT). The Wall Street Journal reported that Verizon (VZ) and Google (GOOG) are discussing a mobile phone partnership.
Video Games: International Game Technology (IGT) and Electronic Arts (ERTS) are both set to report earnings this week. Macke thinks the trade is to buy Activison (ATVI), Nintendo (NTDOY) and Microsoft. Najarian noted monster options activity in the November $17.50 calls for Take-Two Interactive (TTWO). The action makes him think that TTWO is set to move higher.
Word on the Street
Procter & Gamble (PG) reports a 14% rise in profits but disappoints Wall Street on its full-year outlook. Najarian favors Colgate-Palmolive (CL) overseas.
Merrill Lynch (MER) drops after former CEO Stan O'Neal leaves. Finerman doubts the CO-CEO arrangement will work. Adami continues to like Raymond James (RJF).
Wynn Resorts (WYNN) fell in after-hours trading. Najarian would look to buy the stock on selloff. Adami would rather be long Las Vegas Sands (LVS) and Boyd Gaming (BYD).
Under Armour (UA) trades up 7% on strong earnings.
Masco also traded up 4% on strong earnings.
Pops & Drops
Pops - Goodyear Tire (GT) traded up 8%.
Colgate-Palmolive (CL) traded up 1%
Avon Products (AVP) traded up 4% on strong profits from emerging market strength. Finerman favors Estee Lauder (EL).
Sohu.com (SOHU) traded up 8% on a 47% rise in profits.
Yum! Brands (YUM) traded up 3% on no news.
AGCO (AG) popped 9%
Sepracor (SEPR) exploded up 16%
Drops- US Steel (X) fell 7% after reporting a 35% drop in profits.
WellCare Health Plans (WCG) plunged 33%
Sirius Satellite Radio (SIRI) dropped 9%
Final Trade
Macke suggests buying the pullback in Yahoo! (YHOO). He currently owns YHOO.
Adami recommends Dell.
Finerman says buy Cadbury Schweppes (CSG) for a Halloween candy trade.
Najarian favors Dick's Sporting Goods (DKS).

Labels: AAPL, ATVI, CNBC, Crude Oil, DELL, Fast Money, Fast Money Recap, GOOG, HPQ, MSFT, USO, VZ, XOM

Merrill Lynch (MER)- There was speculation on Wall Street that Stan O'Neal will be removed as CEO and Chairman of the Board over the weekend. CNBC's Charlie Gasparino joined the show to discuss O'Neal leaving. Gasparino says rumors are out that Larry Fink the CEO of BlackRock could be named the new Chairman and the CEO position might be split between Greg Flemming and Bob McCann. Najarian said he still would be a buyer of Merrill and that if O'Neal doesn't go, he expects the stock to go down to $55. However, Macke advocates shorting Merrill when O'Neal leaves.
BEA Systems (BEAS)- Carl Icahn has sent a letter to the board of BEA saying its time to come to the negotiating table with Oracle (ORCL). Rumors are that BEA wants $21 share and Oracle offered $17. The offer is set to expire on Sunday.
Microsoft (MSFT) traded up 15% after profits and revenues handily beat Wall Street estimates. Macke remarks that the earnings were great especially from Microsoft and the shorts are getting crushed. Finerman feels the market is very confusing with tech performing well, but many financial stocks doing poorly. Adami prefers Intel (INTC) here and noted that the Citigroup analyst put a $33 price target on the name. Najarian favors Apple (APPL)
Rate Cut- The crew then discussed how next week the Federal Reserve will meet to decide on interest rates and the jobs report will be released. Najarian thinks that the Fed is going to cut rates and that's why the financials flew Friday. He advocates staying with the good sectors like technology and asset mangers and avoid the rest. Macke and Finerman agree that the jobs number will be the best indicator for the economy.
Crude oil hit another record Friday trading above $92. Adami points out how Exxon (XOM) isn't rallying into record oil prices and suggests the company might miss earnings. XOM has a rich valuation and the price action signals that it may move lower. Adami admits that Exxon scares him in front of earnings. He thinks if Exxon reports bad results, it could take the Dow lower. Finerman mentioned that Kirk Kerkorian's Tracinda is looking to buy 16% of Tesoro (TSO).
Procter & Gamble (PG) is also set to report earnings on Tuesday. Procter is one of Macke's favorite trades in front of earnings. Finerman likes Procter as well and Kraft (KFT) which reports earnings on Wednesday. Manitowoc (MTW) is also set to report on Wednesday, which Najarian is partial to.
Quicker than the Ticker- On October 23rd Najarian said buy Vmware (VMW). He nailed the call and the stock has risen 10%. On September 27th Macke recommending buying Yahoo (YHOO). Macke was right and the stock appreciated 20% since his call. On September 20th Adami said buy Microsoft (MSFT). Adami was on the money and Microsoft killed Wall Street's estimates and traded up 11%.
Fast Fire- On October 5th Macke recommending buying Coach (COH). Macke was way off and Coach fell 21% since his call. On October 15th Najarian favored Broadcom (BRCM). He dropped the ball on BRCM and the stock fell 16% after disappointing earnings. On September 12th Adami said he loved Zimmer Holdings (ZMH). Since his call the stock has dropped 15%. On October 1st Finerman advised investors to buy put options on Garmin (GRMN). The stock has risen 9% since her call and she is now admitting defeat and moving on.
Pops & Drops
Pops - Merck (MRK) traded up 8%.
Goldman Sachs (GS) traded up 8%.
DeVry (DV) exploded up 47%.
Deckers Outdoor (DECK) traded up 34% on strong profits.
Baidu.com (BIDU) traded up 12% after profits more than doubled.
Black and Decker (BDK) popped 18% on strong international sales numbers.
Monster Worldwide (MNST) traded up 12% on strong profits.
Drops - Schering Plough (SGP) fell 7% after missing Wall Street estimates.
WellCare Health Plans (WCG) plunged 73% after the FBI raided their offices.
Final Trade
Macke favors Intel (INTC).
Adami recommends Dell (DELL).
Finerman says short the United States Oil Fund (USO).
Najarian grabs a buy ticket for Baker Hughes (BHI).

Labels: BEAS, BRCM, CNBC, COH, Fast Money, Fast Money Recap, MER, MSFT, PG, VMW, ZMH