Jim Cramer Blog

Jim Cramer outlined his own version of an economic stimulus plan on CNBC's "Stop Trading!" segment Friday.
The plan put forth by Treasury Secretary Hank Paulson "doesn't make any sense," Cramer said. "It's obviously a good boost for Apple (AAPL) ... Maybe a boost for Men's Wearhouse (MW)."
The real problem, Cramer said, is in the banks. "Every day you come in here, and your bank stocks are down." The source of all the trouble is the bond insurers, specifically MBIA (MBI), Ambac (ABK), PMI (PMI) and MGIC (MTG), he added.
Cramer's plan, he said, declares the bond insurers bankrupt, then "gives the municipal bonds over to Warren Buffett. ... It takes all these loans ... $500 billion ... and guarantees these loans for 50 cents on the dollar. ... It would cost us far less than the stimulus plan, and it would rally the stock market."
Cramer acknowledged the plan had some negative elements. "There are actual people that work at these companies; I feel bad about them," he said. But he says that the insurers are the reason that America's large banks can't determine their exposure to bad paper.
If, as Cramer believes, those four bond insurers are insolvent, the government can take them over. That, combined with a fed funds rate cut of 100 basis points would result in a gain of 2,000 points for the stock market.
Source: TheStreet.com

Labels: AAPL, Jim Cramer, MBI, MTG, MW, PMI, Stop Trading

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.
Men's Warehouse (NYSE:MW - News). MW's PowerRating (for Traders) is 7.
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.
Infineon Technologies (NYSE:IFX - News). IFX's PowerRating (for Traders) 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.
Integra Lifesciences (NasdaqGS:IART - News). IART's PowerRating (for Traders) 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.
Cardinal Health (NYSE:CAH - News). CAH's PowerRating (for Traders) is 3.
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.
Pfizer (NYSE:PFE - News). PFE's PowerRating (for Traders) is 4.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average 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.
Tyson Foods (NYSE:TSN - News). TSN's PowerRating (for Traders) is 3.
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.
Interoil Corporation (NYSE:IOC - News). IOC's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: CAH, Hot Stocks, IART, IFX, IOC, MW, pfe, TSN

CEO Interview: Indra Nooyi, PepsiCo (NYSE: PEP - News)
"The stocks are saying there's going to be a slowdown, so it would be wise for you to prepare for it," said Cramer, and while he isn't urging people to sell all their cyclicals yet, he suggests its time to take some profits. He invited Pepsi CEO and chairman Indra Nooyi onto the show to discuss the company's great performance which she said was due to the company's diverse portfolio and stellar management. Nooyi added, in terms of financial resources, Pepsi is not constrained, and in terms of people-resources, North America is growing and the company's international business is "exploding." Cramer mentioned a Wall Street Journal story that Nestle turned down a merger with Pepsi because it considers the latter company junk-food laden. Nooyi pointed out Pepsi's expansion into non-carbonated beverages and healthy snacks and its production process which conserves energy and water. Cramer remarked Pepsi delivered better than expected numbers and is a the right stock to buy.
Remember the AlaMobile: Texas Instruments (NYSE: TXN - News), Nokia (NYSE: NOK - News), Ericsson (NasdaqGS: ERIC - News), Sony (NYSE: SNE - News), Analog Devices (NYSE: ADI - News), National Semiconductor (NYSE: NSM - News)
With back -to-school tech gadgets in production, Cramer discussed TXN which was hit by a selloff; "I don't care about the quarter," he said. "I care about the future, because that is where we're going to make our money." He would use the decline as a buying opportunity, and thinks its mobile business will energize TXN. He added NOK, ERIC, SNE, ADI and NSM are also doing well. Returning to TXN, Cramer predicts the next quarter will be excellent and adds the company has a "massive rest-of-world" exposure.

Go Cisco (NasdaqGS: CSCO - News)! with Juniper Networks (NasdaqGS: JNPR - News), and Ciena (NasdaqGS: CIEN - News)
Cramer discussed a Financial Times interview during which Cisco CEO John Chambers says he's more enthusiastic about the company than he has been in a decade and the internet is entering a second phase which should last 10 to 15 years. Since Cisco provides the "backbone" for many types of communcation, Cramer doubts Chambers is just trying to sell his company, and notes Cisco rivals are delivering but have less upside than Cisco. Cramer noted Cisco is not expensive, is below its 52-week high, has $22 billion in cash and is protected from the ailing economy with its big international exposure.
Mad Mail: Six Flags (NYSE: SIX - News), Men's Wearhouse (NYSE: MW - News)
Cramer told one viewer not to touch financial stocks. He said he doesn't like SIX's balance sheet, and added the stock will do badly if the weather is not good. He told another mailer he doesn't like Men's Warehouse.
Published By SeekingAlpha

Labels: ADI, CIEN, CSCO, ERIC, Jim Cramer, JNPR, Mad Money, MW, NOK, NSM, PEP, SIX, SNE, TXN

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.
Genesco (NYSE:GCO). GCO'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.
Gymboree Corporation (NasdaqGS:GYMB). GYMB'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.
Bunge (NYSE:BG) & Men's Wearhouse (NYSE:MW). BG's PowerRating is 7, MW's PowerRating is 7.
Bearish
Gaps Up 5% or More: These are stocks that gap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that gap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Fremont General (NYSE:FMT). FMT's PowerRating is 2.
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.
JDS Uniphase (NasdaqGS:JDSU). JDSU'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.
Energy Partners Limited (NYSE:EPL). EPL's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: BG, EPL, FMT, GCO, GYMB, Hot Stocks, JSDU, MW

Arqule Inc. (NasdaqGM:ARQL - News) shares rose 6.7% Thursday after the company was initiated with a buy rating at WR Hambrecht & Co.
Bon-Ton Stores Inc. (NasdaqGS:BONT - News) shares surged 16% after the York, Pa., retailer reported that February sales tripled and comparable-store sales rose nearly 14.6%. A survey of analysts by Thomson Financial produced a consensus estimate of same-store sales down 2%. Total sales reached $237.6 million from $72.2 million, reflecting $153.4 million from Carson's and Parisian stores acquired in 2006. Carson's sales aren't included in the comparable-store-sales figure. Bon-Ton said that Carson's comparable-store sales for the period increased 7.2%, while the combined Carson's and Bon-Ton comparable sales advanced 9.8%.
California Coastal Communities (NasdaqGM:CALC - News) shares gained 8.7% after the company was upgraded to market outperform from market perform at JMP Securities.
Catalina Marketing (NYSE:POS - News) shares rose 5.5% after the company agreed to be acquired by ValueAct Capital for $1.7 billion, including the assumption of about $135 million in debt. The deal values shares of Catalina, a St. Petersburg, Fla., promotional messaging company, at $32.10 each in cash, compared to the stock's close on Wednesday at $29.85, down 4.1%. The agreement allows Catalina to solicit and entertain alternative acquisition proposals from third parties for the next 45 days. Catalina expects the transaction to close in the next several months.
CSP Inc. (NasdaqGM:CSPI - News) shares gained 15% after the Billerica, Mass.-based IT services provider reported fiscal first-quarter net income of $978,000, or 25 cents a share. In the same quarter last year, the company posted a net loss of $546,000, or 15 cents a share. Revenue rose to $21.1 million from $15.1 million.
Culp Inc. (NYSE:CFI - News) shares rose 5.9% after the company said its third quarter net loss widened slightly to $2.2 million from $2.17 million. The High Point, N.C.-based company's loss per share for the quarter was unchanged at 19 cents a share. Quarterly net sales fell to $55.7 million from $61 million.
Delphi (Other OTC:DPHIQ.PK - News) shares gained 8.8% after the company filed to issue nearly $2 billion worth of common stock to shareholders as a key step toward funding its emergence from bankruptcy. According to a filing with the Securities and Exchange Commission, the auto parts maker is offering current stockholders the right to buy 56,700,000 shares at $35 each.
Fred's Inc. (NasdaqGS:FRED - News) shares rose 6.5% after the company said its February sales at stores open at least one year rose 3.9%. Analysts, on average, had expected its same-store sales to rise 2%, according to Thomson First Call. Total sales for the four weeks ended March 3 rose 8% to $143.9 million.
KLA-Tencor (NasdaqGS:KLAC - News) shares rose 4% after Morgan Stanley upgraded the company to overweight from equal weight and lifted its price target to $65 from $60.
La Jolla Pharmaceutical Co. (NasdaqGM:LJPC - News) shares surged 31% after the company announced positive interim antibody results from its Phase II trial of Riquent, its drug candidate for systemic lupus erythematosus. The results showed a significant dose response when comparing all Riquent-treated patients to placebo-treated patients, the company said. "We are very excited by these results," said Deirdre Gillespie, president and chief executive, in a statement. "The higher the dose, the greater the reduction in antibodies to dsDNA, and the relative magnitude of these reductions is greater than we have seen in previous studies, which used lower doses of Riquent."
Mamma.com (NasdaqCM:MAMA - News) shares gained 19% after the company swung to a fourth-quarter profit on higher revenue as a result of an increase in search advertising revenue, new software licensing contracts and increase in customized development and maintenance support. The Montreal provider of Internet search services said it earned $420,000 or 3 cents a share in the latest quarter versus a loss of $763,000 or 6 cents a year earlier. Revenue rose to $3.6 million from $1.6 million last year.
Men's Wearhouse Inc. (NYSE:MW - News) shares gained 9.4% after the company said it expects first-quarter earnings between 63 cents and 67 cents a share, assuming same-store sales rise 1% to 2% in the U.S. and 5% to 6% in Canada. The Houston-based seller of men's apparel also expects to earnings between $2.80 and $2.91 a share for the fiscal year ending Feb. 2.
New York & Co. (NYSE:NWY - News) shares rose 16% after the company said same-store sales rose 2.7% in February. The average estimate of analysts polled by Thomson Financial was for growth of 2.1% for the month. Total sales for the four weeks ended March 3 increased 8.9% to $87.7 million from $80.6 million in the same period a year earlier.
Nighthawk Radiology Corp. (NasdaqGM:NHWK - News) shares gained 5.1% after the company was upgraded to market perform from underperform at Piper Jaffray.
Nucor Corp. (NYSE:NUE - News) shares rose 5.3% Thursday morning after the second-largest U.S. steel producer forecast strong first-quarter earnings and said shrinking steel stockpiles should support profits for the rest of the year.
Omni Energy Services Corp. (NasdaqGM:OMNI - News) shares leapt 17% after the company said it expects fiscal 2007 revenue of more than $175 million, an 80% increase over last year. Excluding certain tax benefits, the Carencro, La.-based company said it expects net income may rise as much as 70% to more than $17 million. Earnings before interest, taxes, depreciation and amortization could increase more than 60% to exceed $40 million, the company said. Additionally, Omni said it sees slightly improved gross profit margins for the year with the inclusion of a full-year's operations from its rental equipment division.
PriceSmart Inc. (NasdaqGM:PSMT - News) shares jumped 18% after the company said February same-store sales rose 21% over year-earlier levels. Total sales for the month rose 21% to $63.3 million from last year's $52.5 million.
RehabCare (NYSE:RHB - News) shares gained 7.7% after the company reported fourth-quarter earnings of $2.1 million, or 12 cents a share, on revenue of $182.2 million, up from a loss of $31.8 million, or $1.89 a share, in the same period a year earlier, on revenue of $123.4 million.
Resource Capital Corp. (NYSE:RSO - News) shares rose 6.8% after the company reported fourth-quarter earnings of $6.8 million, or 36 cents a share, up from a year-ago profit of $4.9 million, or 32 cents a share. The New York City real estate investment trust estimates that it will pay dividends of between $1.65 and $1.80 per common share.
Seattle Genetics (NasdaqGM:SGEN - News) shares gained 7% after the company was initiated with a buy rating at Caris & Co.
Zumiez Inc. (NasdaqGS:ZUMZ - News) shares climbed 14% after the company said its February sales at stores open at least a year increased 12.4%. Analysts, on average, expected the retailer to post a same-store sales increase of 7.1%, according to a survey by Thomson Financial. Total net sales for the four-week period ended March 3 increased 43.9% to $20.7 million, from $14.4 million for the four-week period ended Feb. 25, 2006.
Published By Michael Baron of MarketWatch

Labels: ARQL, BONT, CALC, CFI, CSPI, FRED, KLAC, LJPC, MAMA, MW, NHWK, NUE, NWY, OMNI, POS, PSMT, RHB, RSO, SGEN, ZUMZ

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Men's Wearhouse (NYSE:MW - News) beat earnings on Wednesday, announcing $0.81 EPS over an expected $0.75 EPS. MW's PowerRating is 6.
K2 (NYSE:KTO - News) missed earnings on Wednesday after the close; analysts were looking for $0.28, but the company only announced $0.25 EPS. KTO's PowerRating is 5.
Allis-Chalmers Energy (NYSE:ALY - News) announces earnings on Thursday before the market opens; look for $0.38 EPS. ALY's PowerRating is 4.
Brown Shoe Company (NYSE:BWS - News) is looking to report $0.59 EPS on Thursday before the bell. BWS's PowerRating is 5.
Costco (NasdaqGS:COST - News) reports quarterly earnings before the market opens on Thursday, with analysts watching for $0.66 EPS. COST's PowerRating is 5.
When Goldcorp (NYSE:GG - News) announces earnings Thursday morning, watch for $0.21 EPS. GG's PowerRating is 5.
Analysts expect Urban Outfitters (NasdaqGS:URBN - News) to report $0.21 EPS tomorrow morning. URBN's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: ALY, BWS, COST, GG, Hot Stocks, KTO, MW, URBN

blockquote> Focus: Retail Stocks: Although Cramer does not recommend buying all of these retail stocks now, he has listed the top ten to watch and to buy when they bottom out. While these stocks may be a bit more costly on a valuation basis, Cramer says that they are consistently strong and are the retail stocks most likely to yield an excellent profit:
Best Buy (NYSE: BBY - News): Cramer says that BBY is "The best hard goods retailer in the US ... make that the world," and dominates big-screen TV and electronics retail sales. BBY should excel in sales of new Apple iPod products.Lowe's (NYSE: LOW - News): "Smaller than Home Depot...but there is a lot of room to grow."Costco (NASDAQ: COST - News):"Cheapest and best-run of all the big warehouse stores." Cramer likes COST better than Wal-Mart, and notes that it now sells electronics, appeals to wealthy customers and pays its employees well.Men's Warehouse (NYSE: MW - News): 'They keep rolling out concept after concept."Federated Department Stores (NYSE: FD - News): This company owns Macy's, Bloomingdale's and Lord Taylor. "FD has the opportunity to turn a bunch of middle-of-the-road stores they bought from May into high-end Macy's and Bloomingdales."Sears Holding Corporation (NASDAQ: SHLD - News): Cramer sees potential for "a big turnaround," has confidence in CEO Eddie Lampert because of his success on Wall Street, and sees SHLD as a real-estate as well as a retail play.JC Penney Corporation (NYSE: JCP - News): "Great management, terrific attention to detail and they've got all the brands you want." Cramer particularly likes JCP because of the addition of Sephora cosmetics.Coldwater Creek (NASDAQ: CWTR - News): "it's a regional-to-national story...a lot of room to grow."Starbucks (NASDAQ: SBUX - News): They have expanded in the U.S. sufficiently, but are looking at China: "Twenty percent of Starbucks' sales will be pouring out of China 2 years from now."Commerce Bancorp (NYSE: CBH - News): This bank is "run like a retailer...will benefit bigtime from all of those Banks of NY that are going to JP Morgan... (NYSE: CBH - News) capitalizes opportunistically on the disruption."

Labels: BBY, CBH, COST, CWTR, FD, JCP, Jim Cramer, LOW, Mad Money, MW, SBUX, SHLD