Jim Cramer Blog

Stocks took a breather following a two-day rally, as Wall Street demonstrated caution ahead of next week's Fed meeting. The Dow posted a 6-point gain to close at 13,626 for the week. Meanwhile, the Nasdaq and S&P were just off at the bell to end at 2,706 and 1,505, respectfully. Light, sweet crude traded lower on the day to settle at $88.28 for January delivery. Treasury prices dropped, while gold prices fell to close at $800.20 for February delivery. The dollar traded higher against the yen, but eased versus the euro.
In economic news, a Labor Department report showed that 94,000 jobs were added to payrolls in the month of November. Analysts had estimated 70,000 new jobs would be added. The report also showed that the unemployment rate remained unchanged in October at 4.7%. Economists had predicted a rise to 4.8%. In a separate report, the University of Michigan said its consumer confidence index fell to 74.5 in early December, down from 76.1 in November. Economists had predicted a drop to 75.0.
On the earnings front, shares of Synopsys (Nasdaq: SNPS - News) surged 9.3% on the day after the maker of semiconductor design automation software said profits jumped on higher license revenues. For the quarter, the company posted earnings of $41 million, or 27 cents per share, up from $10.1 million, or 7 cents per share, last year. Excluding one-time items, Synopsys earned $60 million, or 40 cents per share, versus $30.7 million, or 22 cents per share, a year ago. Quarterly revenue rose to $315.2 million, up 11.2% from $283.4 million in last year's period. On average, analysts were looking for earnings of 36 cents per share.
In corporate news, billionaire Rubert Murdoch named new leaders at Dow Jones (NYSE: DJ - News), the publisher of The Wall Street Journal, one week before his media empire, News Corp (NYSE: NWS - News), is set to close its acquisition of the company. Les Hinton will become the new CEO at Dow Jones following a shareholder vote. Murdoch also appointed his son, James, as News Corp's chairman and chief executive for Europe and Asia. The move has fueled speculation that James will eventually succeed his father as CEO of News Corp. Shares of Dow Jones were off slightly in trading, while News Corp's stock posted a small gain.
After the bell yesterday, Palm (Nasdaq: PALM - News) warned that it would swing to a loss in the second quarter and lowered its sales guidance citing a product launch delay. The smart-phone maker said it now expects to post a loss of -22 to -24 cents per share, off from previous estimates of a loss of -1 to -3 cents per share. Excluding one-time items, Palm expects to report a loss between -8 to -10 cents per share. The company said it now expects sales to be between $345-$350 million, down from previous guidance of $370-$380 million. On average, analysts were calling for a profit of 4 cents per share on sales of $376 million. Shares of Palm plunged in trading and were off -12.9% at the bell.
In M&A news, Macrovision (Nasdaq: MVSN - News) has agreed to acquire Gemstar-TV Guide (Nasdaq: GMST - News) in a cash and stock deal worth $2.8 billion. According to terms, Gemstar-TV Guide shareholders will receive $6.35 in cash or 0.2548 of a share in a new holding company that owns both Macrovision and Gemstar-TV Guide. Meanwhile, Macrovision stockholders will own one share of the new holding company for each share held when the deal closes. Under the terms of the deal, the cash exchange will not exceed $1.55 billion. Upon completion of the takeover, Macrovision shareholders will own a 53% stake in the newly formed company, with former shareholders of Gemstar-TV Guide holding a 47% stake. The deal is expected to close in the second quarter of next year. Shares of Macrovision plummeted -21.4% on the day, while Gemstar-TV Guide's stock tumbled to close off -16.6% at the bell.
By the BullMarket.com Staff

Labels: DJ, GMST, MVSN, NWS, PALM, SNPS

Symbol
Name
Last Trade
Change
Volume
Related Info
TRT
TRIO-TECH INTL
20.90 1:33PM ET
4.64 (28.54%)
397,300

TTPY
TOMOTHERAPY INC
23.55 1:46PM ET
4.55 (23.95%)
8,537,938

FWLTZ
FOSTER WHEELER WT B
5.62 1:45PM ET
1.02 (22.17%)
185,518

FWLTW
FOSTER WHEELER WTS A
131.46 12:48PM ET
21.89 (19.98%)
12,118

FREEW
FREESEAS INC
1.7000 1:45PM ET
0.2800 (19.72%)
132,661

ARRO
ARROW INTL INC
38.95 1:46PM ET
6.11 (18.61%)
2,785,576

KIRK
KIRKLAND'S INC
5.51 1:46PM ET
0.87 (18.75%)
63,307

FWLT
FOSTER WHEELER
87.26 1:46PM ET
14.11 (19.29%)
8,385,761

MVSN
MACROVISION CORP
27.88 1:46PM ET
3.87 (16.12%)
2,738,695

ATPL
ATLANTIS PLASTICS IN
3.22 12:13PM ET
0.08 (2.42%)
8,577

B
BARNES GP INC
28.12 1:41PM ET
3.32 (13.39%)
2,297,698
SBEI
SBE INC
2.13 1:40PM ET
0.28 (15.14%)
700

BPHX
BLUEPHOENIX SOLUTN
9.70 1:46PM ET
1.21 (14.25%)
1,086,117

STXS
STEREOTAXIS, INC.
11.82 1:46PM ET
1.35 (12.89%)
600,717

FREEZ
FREESEAS INC WT Z
1.84 1:05PM ET
0.21 (12.88%)
40,445

MPZ
MPC CORPORATION
1.14 1:07PM ET
0.13 (12.87%)
46,600

FTWR
FIBERTOWER CORP
5.18 1:46PM ET
0.58 (12.61%)
2,300,575

HAUP
HAUPPAUGE DIGITAL
6.44 1:46PM ET
0.73 (12.78%)
290,053

EFD
EFUNDS CORP
31.95 1:40PM ET
3.46 (12.14%)
2,493,318

Labels: ARRO, ATPL, B, BPHX, EFD, FREEW, FREEZ, FTWR, FWLT, FWLTW, FWLTZ, HAUP, KIRK, MPZ, MVSN, SBEI, STXS, TRT, TTPY

General Growth Properties (NYSE:GGP - News) was upgraded to neutral from reduce at UBS.
Genzyme Corp. (NasdaqGS:GENZ - News) reported a fourth-quarter loss of $268.2 million, or $1.02 a share, down from earnings of $106.6 million, or 39 cents a share, in the year-ago period. Excluding items, most notably a charge related to its acquisition of AnorMed, the company posted non-GAAP (generally accepted accounting principles) earnings of $209 million, or 77 cents a share, for the fourth quarter. Revenue rose 17% in the latest three months to $854.2 million from $728.7 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 75 cents a share in the December period. Looking ahead, Genzyme forecast earnings of $1.90 to $2 per share for 2007. The company expects a non-GAAP profit of $3.05 to $3.15 a share for the year. It sees revenue of $3.6 billion to $3.8 billion for 2007. In the first quarter, the Cambridge, Mass., biotechnology company anticipates non-GAAP earnings in the low 70 cents range. Wall Street's current consensus estimates are for earnings of 73 cents a share in the March quarter and $3.17 a share for fiscal 2007.
Hanger Orthopedic Group (NYSE:HGR - News) posted fourth-quarter earnings of $4.9 million, or 17 cents a share, as sales rose 3.2% to $153.9 million. The performance was in line with Wall Street's consensus profit estimate.
Invitrogen (NasdaqGS:IVGN - News) posted quarterly results that beat Wall Street's expectations and agreed to sell its BioReliance Corp. unit, which provides biological safety testing, to Avista Capital Partners, a private equity firm, for $210 million.
Jarden Corp. (NYSE:JAH - News)reported fourth-quarter earnings of 52 cents a share, up from 4 cents in the year-earlier period. The Rye, N.Y., consumer-products company posted adjusted profit of 80 cents a share, up from 51 cents. Sales rose 9% to $1.1 billion. The average estimate of analysts polled by Thomson Financial was profit of 73 cents a share.
Journal Communications Inc. (NYSE:JRN - News) said its fourth-quarter net profit rose 39.9% to $23.4 million, or 33 cents a share, from $16.7 million, or 23 cents a share a year ago. The media company, which has operations in publishing, radio and television, said total revenue for the quarter rose 15.3% to $186.6 million, driven by strong growth at its broadcasting division after acquiring three television stations in December 2005. The firm also benefited from an extra week in the fourth quarter compared to a year ago. For the first quarter, the company said it expects publishing revenue to fall, reflecting continued challenges in automotive advertising.
Knight Capital Group (NasdaqGS:NITE - News) said January average daily dollar value traded fell 9.2% to $9.06 billion, from $9.97 billion in the year-ago period. However, January came in 17.3% ahead of December's average daily dollar value of $7.72 billion. Average daily U.S. equity trade volume in January 2007 was 1.1 million, up 1.1% from 1 million in the year-ago period and up 11.2% from 953,000 in December.
Kreisler Manufacturing (NasdaqCM:KRSL - News) shares surged after the Elmwood Park, N.J.-based maker of metal components and assemblies reported fiscal second-quarter net earnings of $607,000, or 33 cents a share, up from $289,794, or 16 cents a share last year. Revenue rose to $6.02 million from $4.43 million.
Macrovision Corp. (NasdaqGS:MVSN - News)reported fourth-quarter earnings of 31 cents a share compared with 9 cents a share, in the year-earlier period. Excluding equity-based compensation charges and other items, the Santa Clara, Calif., software concern earned 43 cents vs. 36 cents. Revenue rose 22% to $74.1 million. Analysts polled by Thomson Financial had expected earnings of 42 cents on revenue of $73 million. The company also said the U.S. Attorney's Office withdrew its subpoena related to Macrovision's stock-option review.
MGM Mirage (NYSE:MGM - News) said fourth-quarter earnings more than doubled, boosted by a 13% increase in gaming revenue, an 8% increase in hotel revenue, its share of profits from the sale of Tower 2 condominium units at The Signature at MGM Grand and pretax income of $86 million from Hurricane Katrina insurance recoveries. The Las Vegas entertainment, hotel and gaming company had fourth-quarter earnings of $201.6 million, or 69 cents a share, compared with $97.8 million, or 33 cents a share, a year earlier. MGM Mirage said revenue for the quarter ended Dec. 31, 2006, rose 11% to $2.02 billion from $1.82 billion a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 48 cents a share on revenue of $1.81 billion. Analyst earnings forecasts typically exclude unusual items.
Molina Healthcare Inc. (NYSE:MOH - News) fourth-quarter net income rose to 41 cents a share from 38 cents in the year-earlier period. Analysts polled by Thomson Financial had expected 41 cents. The managed care company's revenue increased to $549.5 million from $423.2 million; Wall Street was looking for $541 million. Molina backed its view for fiscal 2007 earnings per share of $1.75 to $1.90.
New York Times Co. (NYSE:NYT - News) and Monster Worldwide Inc. (NasdaqGS:MNST - News) formed a strategic alliance for help-wanted advertising. Under the agreement, 19 of the publishing company's Web sites, including The New York Times, The Boston Globe, the Worcester Telegram & Gazette and newspapers throughout the Southeast and California, will co-brand online recruitment advertising Web sites with Monster.
P.F. Chang's China Bistro (NasdaqGS:PFCB - News)reported fourth-quarter earnings per share were flat at 34 cents a share. Revenue rose to $252 million from $213.8 million. The latest results reflect $1.5 million in equity-based compensation expense and $400,000 in additional pre-opening expenses. The average estimate of analysts polled by Thomson Financial was profit of 26 cents a share. Looking ahead, the Scottsdale, Ariz., restaurant operator sees earnings of $1.45 a share in fiscal 2007 with revenue increasing 19% to $1.1 billion. Wall Street's current consensus estimate is profit of $1.38 per share in 2007.
Sigma-Aldrich (NasdaqGS:SIAL - News) fourth-quarter profit rose to 53 cents a share from 42 cents in the year-earlier period. The chemicals maker's sales rose 13% to $464.5 million. Analysts polled by Thomson Financial had forecast earnings of 47 cents on revenue of $449 million. The St. Louis company expects to earn $2.15 to $2.25 a share this year.
SPSS Inc. (NasdaqGS:SPSS - News) reported fourth-quarter net income dropped 66% to $2 million, or 10 cents a share, from $5.89 million, or 30 cents a share, a year earlier. The Chicago company said the latest quarter included a non-cash charge of $6.9 million related to an income tax expense, which cut earnings by 33 cents a share. On average, analysts polled by Thomson Financial expected earnings of 34 cents a share. Analyst estimates typically exclude unusual items. Total net revenue jumped 14% to $71.1 million from $62.2 million a year ago, driven by increased sales across all product lines and major geographical regions. SPSS's operating income rose 36% to $11.7 million from $8.6 million a year ago. Looking ahead, SPSS expects first-quarter revenue of $68 million and $70 million, and earnings of 23 cents to 27 cents a share, excluding 6 cents a share for stock-based compensation. For 2007, the company expects revenue of $285 million to $295 million, and earnings of $1.20 to $1.30 a share, excluding 26 cents a share for stock-based compensation expense.
Total (NYSE:TOT - News) fourth-quarter adjusted net income declined 10% to 2.74 billion euros ($3.6 billion), or 1.20 euros a share. Sales slipped 6% to 36.4 billion euros after hydrocarbon production declined 2.5% in the quarter to 2.4 million barrels of oil equivalent a day. The output decline followed governments taking a bigger share of production plus asset divestments and security-related shutdowns in the Niger Delta. The French oil giant expects to raise hydrocarbon production by an average of more than 5% a year to 2010. Surplus cash flow will be used to buy back shares, Total said.
Unibanco (NYSE:UBB - News) said its 2006 net income rose 20.2% to 2.2 billion Brazilian reais ($1.04 billion). Operating income for the year rose 20.5% to 3.52 billion reais. Total assets reached 104 billion reais in December, up 13% from a year earlier. "Unibanco remains satisfied and confident with the ongoing results and the continuous improvement of its performance," the bank said in a statement.
Varian Semiconductor (NasdaqGS:VSEA - News) was upgraded to buy from neutral at UBS. The firm said it expects the company's share of the ion implant market to improve to around 48% from 39%. UBS said the decision by Applied Materials Inc. to cease future development of its beamline ion implant product will leave Varian as one of only two suppliers in the sector. As well as improved market share, Varian should also be able to benefit from better pricing in the sector as competition eases, UBS added.
Shares of Wolseley plc (NYSE:WOS - News) jumped following a report that Cinven is considering a 10 billion pound takeover offer for the building products company. The potential deal was reported in the CityAM newspaper, which cited unnamed sources.

Published By Michael Baron of MarketWatch

Labels: GENZ, GGP, HGR, IVGN, JAH, JRN, KRSL, MGM, MNST, MOH, MVSN, NITE, NYT, PFCB, SIAL, SPSS, TOT, UBB, VSEA, WOS

Here are 7 stocks to watch for today. This list comes directly from the TradingMarkets Stocks Indicators page.
Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
MacroVision (NASDAQ:MVSN - News). MVSN's PowerRating is 5.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Ford (NYSE:F - News). F's PowerRating is 8.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term up trends.
Syntel (NASDAQ:SYNT - News). SYNT's PowerRating is 7.
Trading Where the Action Is: This list contains the most volatile stocks over the past 50 trading days. These stocks are only for the most aggressive traders who are willing to assume a high degree of risk in order to capture larger gains.
Alberto-Culver (NYSE:ACV - News). ACV's PowerRating is 5.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Plantronics (NYSE:PLT - News). PLT's PowerRating is 2.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
HCC Insurance (NYSE:HCC - News). HCC's PowerRating is 4.
Short Windows Candidates: These are stocks which are in a strong downtrend, as determined by a proprietary trend filter and whose current bar has its low above the 4-day moving average. Historically, these stock on average have had a larger than normal short-term downside reversals. In order to qualify as a "Trading Window" candidate, the 10-period ADX must be 30 or higher and the -DI must be greater than the +DI. Or we must have a 14-period -DI reading of above 30 (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its low of the day above the 4-period moving average.
Norfolk Southern (NYSE:NSC - News). NSC's PowerRating is 3.

Labels: ACV, F, HCC, Hot Stocks, MVSN, NSC, PLT, SYNT