Jim Cramer Blog

Symbol
Name
Last Trade
Change
Volume
Related Info
ALGN
ALIGN TECHNOLOGY I
22.88 12:04PM ET
5.19 (29.34%)
6,045,704

CVNS
COVANSYS CP
33.31 12:04PM ET
6.51 (24.29%)
2,504,680

INOD
INNODATA ISOGEN
3.50 11:55AM ET
0.61 (21.11%)
VDSI
VASCO DATA SECURITY
21.68 12:04PM ET
4.02 (22.76%)
2,577,758

SWKS
SKYWORKS SOLUTIONS
7.37 12:04PM ET
1.21 (19.64%)
7,917,343

AEIS
ADVANCED ENERGY
25.67 12:04PM ET
4.17 (19.40%)
1,257,050
FFIV
F5 NETWORKS INC
78.71 12:04PM ET
12.64 (19.13%)
4,459,850

CNS
COHN & STEERS
54.22 11:59AM ET
9.26 (20.60%)
793,150

HAR
HARMAN INTL INDS
122.49 11:59AM ET
19.93 (19.43%)
4,620,300
GEL
GENESIS ENERGY LP
26.12 11:57AM ET
3.88 (17.45%)
342,600

OI
OWENS ILLINOIS
31.19 11:59AM ET
4.89 (18.59%)
3,782,940
WST
WEST PHARMA SVCS INC
53.82 11:59AM ET
7.56 (16.34%)
747,550

KOG
KODIAK OIL
5.86 11:59AM ET
0.70 (13.57%)
2,471,400
OMTL
OMTOOL LTD
2.05 11:15AM ET
0.29 (16.48%)
10,472
SBCF
SEACOAST BKNG CP
23.57 12:04PM ET
3.14 (15.37%)
392,899

WEN
WENDYS INTL INC
38.11 11:59AM ET
5.43 (16.62%)
8,829,900

PSAI
PEDIATRIC SRVS
15.85 11:59AM ET
2.15 (15.71%)
220,127
RKT
ROCK-TENN CO CL A
40.44 11:59AM ET
4.60 (12.83%)
741,150

CBRX
COLUMBIA LABS INC
2.66 12:04PM ET
0.32 (13.67%)
5,799,659

MTH
MERITAGE HOMES CORP
37.70 11:59AM ET
5.14 (15.79%)
3,060,280

Labels: AEIS, ALGN, CBRX, CNS, CVNS, FFIV, GEL, HAR, INOD, KOG, MTH, OI, OMTL, PSAI, RKT, SBCF, SWKS, VDSI, WEN, WST

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
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.
Simulations Plus (NYSE:SLP - News). SLP's PowerRating is 9.
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.
Urban Outfitters (NasdaqGS:URBN - News). URBN's PowerRating is 7.
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) & Resmed (NYSE:RMD). NWY's PowerRating is 9, and RMD's PowerRating is 6.
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.
Jackson Hewitt (NYSE:JTX). JTX's PowerRating is 2.
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.
Meritage Homes (NYSE:MTH). MTH's PowerRating is 3.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
H&R Block (NYSE:HRB). HRB's PowerRating is 4.

Labels: Hot Stocks, HRB, JTX, MTH, NWY, RMD

Meritage Homes
Business Risk: AverageEconomic Moat: NonePrice/Fair Value Ratio*: 0.76
With more than 9,400 closings in 2005, Meritage Homes (NYSE:MTH - News) is the nation's 13th-largest homebuilder. Lower inventory balances--facilitated by heavy use of options to secure land--and exposure to sizzling markets have helped the company to generate above-average returns on capital over the past several years. Yet with some of its markets in the doldrums, Meritage is in for some tough sledding over the near term in Morningstar analyst Eric Landry's opinion. Nevertheless, Landry thinks Meritage will come out of this downturn in relatively good shape, thanks to its use of options (which boost invested capital turns and mitigate balance sheet risk associated with nonperforming land and debt) and its still-growing book of orders in the state of Texas, which should somewhat offset weakness in imploding markets like Nevada, Arizona, and Florida.
New Jersey Resources
Business Risk: Below AverageEconomic Moat: NarrowPrice/Fair Value Ratio*: 0.85
New Jersey Resources (NYSE:NJR - News) is one of the most well-managed and financially secure companies on Morningstar analyst Paul Justice's utility coverage list. Its long-standing ability to drive consistent earnings- and dividend-growth--shepherded by the company's reliance on customer growth and conversion to natural gas, rather than rate-base increases--underscores why we would need only a small margin of safety before aggressively acquiring these shares. And while regulatory caps on rates of return somewhat blunt the competitive advantages that New Jersey Resources enjoys as a natural monopoly, Justice points out that expansion of the company's nonregulated wholesale energy business--which has been increasingly important to NJR's profitability and growth lately--could provide additional growth going forward.
* Price/fair value ratios calculated using fair value estimates and closing prices as of Friday, Jan. 12, 2007.
By Jeffrey Ptak, CPA, CFA

Labels: MTH, NJR

NEW YORK (Reuters) - Shares of U.S. home builders rose on Wednesday after a stronger-than-expected report on November new single-family home sales suggested to some analysts that the housing market may have bottomed.
New home sales rose 3.4 percent from the previous month to a 1.047 million annual rate, above economists' forecasts for a 1.018 million rate, according to the Commerce Department. But sales were down 15.3 percent from a year earlier.
Shares of home builders were each up more than 1 percent in morning trading, with the overall Dow Jones Home Construction index (^DJUSHB - News) gaining 10 points, or 1.4 percent, to 729.58. This index has lost 21 percent this year, and is down about 35 percent from its high in July 2005.
"The new home sales report did beat the consensus forecast and that, I think, provides further evidence to support the view that the worst of the housing downturn may have passed," said Alex Beuzelin, senior market analyst with Ruesch International in Washington.
But talk of a bottom may be premature since the government data doesn't capture cancellation rates, said John Tomlinson, home building analyst with Majestic Research in New York. Majestic's own survey of 36 top markets has showed high rates of cancellation, he said, as buyers demand higher incentives before closing on a home.
Many home buyers are willing to walk away from their deposits to seek a better deal.
"It's a quiet week in the market," Tomlinson said. "On the surface, the data may seem somewhat positive, but you need to take a deeper dive into the metrics before concluding that we've reached a bottom and things are picking up."
Among major companies in the sector, KB Home (NYSE:KBH - News) rose 73 cents to $51.52, Toll Brothers Inc. (NYSE:TOL - News) gained 57 cents to $32.26, and D.R. Horton Inc. (NYSE:DHI - News) was up 25 cents to $26.36. Shares of Lennar Corp. (NYSE:LEN - News), Ryland Group (NYSE:RYL - News) and Meritage Homes (NYSE:MTH - News) were also higher, all on the New York Stock Exchange.
(Additional reporting by New York Treasuries Desk)

Labels: DHI, KBH, LEN, MTH, RYL, TOL