Jim Cramer Blog

Cramer said banks such as PNC (PNC) are trading at premium to big names such as Citi (C) and Bank of America (BAC) in spite of the regionals' significant exposure to possible lending issues. Cramer said he believes lots of regionals have problems similar to the one revealed late Friday by M&T (MTB).
Cramer is also "concerned" about the so-called Alt-A lenders, the companies that made loans to homebuyers with better-than-subprime credit ratings but without full documentation. He said the degree to which loans were made without documentation is a "big black box" that keeps investors from knowing "who a good lender is." He conceded that some companies like IndyMac (NDE) are "seasoned players" who should know better than to chase nonpaying customers, but he stressed that lenders need to "open things up kimonowise" for shareholders to judge for themselves.
Cramer, stipulating that he "loves" Countrywide (CFC) chief Angelo Mozilo, suggested Mozilo cut back on the TV appearances, reasoning that Countrywide stock gets hit every time Mozilo is on.
Published by thestreet.com

Labels: BAC, C, CFC, Jim Cramer, MTB, NDE, PNC, Stop Trading

Goldman Sachs (NYSE: GS - News), Bear Stearns (NYSE: BSC - News), Lehman Brothers (NYSE: LEH - News), Bear Stearns (NYSE: BSC - News), Merrill Lynch (NYSE: MER - News), Accredited Home Lenders (NasdaqGS: LEND), and IndyMac (NYSE: NDE - News)
Cramer comments that companies are jumping onto the defaulted loan bandwagon, as Bear Stearns and other brokers “are moving mortgages to distressed debt, marking them up really big and giving you a better coupon ... having sold paper on the fly of defaulted, bankrupt and criminal savings and loans, I can tell you that's a lot better than selling paper that's involving people who own homes." When Gregg Greenberg asked Cramer to rate the top brokers in light of the subprime worries, he said Goldman Sachs is #1, and added people have yet to see the good in mortgages. GS is profiting from LEH and BSC reports, and Cramer predicts the stock will go back to $250 from $200. BSC earns the #2 position because it is "much more proactive than Lehman in terms of turning the mortgage morass into something really positive." For people who want a short play, Cramer suggests MER because it is just getting into mortgages and is not proactive. Cramer says the rally in LEND and NDE was short-covering. Concerning his dirty dozen list yesterday, Cramer emphasized that he is not saying that every company deserves to be on the list. In fact, Cramer says he is more likely to be long than short some of the listed stocks.
Published By SeekingAlpha

Labels: BSC, GS, Jim Cramer, LEH, LEND, MER, NDE, Wall Street Confidential

New Century (NEWC) and the Dirty Dozen: Cramer listed 12 subprime stocks bears are targeting after the fall of New Century. While not all of these names deserve to be hounded, Cramer believes investors should be careful before buying or selling:
1. IndyMac (NYSE: NDE - News)2. CharterMac (NYSE: CHC - News)3. Friedman Billings (NYSE: FBR - News)4. Fremont General (NYSE: FMT - News)5. Redwood Trust (NYSE: RWT - News)6. Newcastle Investment (NYSE: NCT - News)7. American Home Mortgage (NYSE: AHM - News)8. Gramercy (NYSE: GKK - News)9. RAIT (NYSE: RAS - News)10. Accredited (NasdaqGS: LEND)11. Thornburg Mortgage (NYSE: TMA - News)12. CapitalSource (NYSE: CSE - News)

Labels: AHM, CHC, CSE, FBR, FMT, GKK, Jim Cramer, Jim Cramer's Stop Trading, LEND, NCT, NDE, NEWC, RAS, RWT, TMA

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
iShares MSCI Emerging Markets IndexApr 120 Calls (AMEX:EEM - News). EEM's PowerRating is 6.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Express Scripts Apr 80 Puts (NasdaqGS:ESRX - News). ESRX's PowerRating is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Indymac Bancorp Apr 30 Calls (NYSE:NDE - News). NDE's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Petroleo Brasileiro Apr 90 Puts (NYSE:PBR - News). PBR's PowerRating is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Network Appliance (NasdaqGS:NTAP - News). NTAP's PowerRating is 6.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Amgen (NasdaqGS:AMGN - News). AMGN's PowerRating is 6.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Peabody Energy Corp. (NYSE:BTU - News). BTU's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AMGN, BTU, EEP, ESRX, Hot Options, NDE, NTAP, PBR

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
MBIA Inc. Apr 70 Calls (NYSE:MBI - News). MBI's PowerRating is 5.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Express Scripts Apr 80 Puts (NasdaqGS:ESRX - News). ESRX's PowerRating is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Indymac Bancorp Apr 30 Calls (NYSE:NDE - News). NDE's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced. Research in Motion Apr 120 Puts (NasdaqGS:RIMM - News). RIMM's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Mirant (NYSE:MIR - News). MIR's PowerRating is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Lennar (NYSE:LEN - News). LEN's PowerRating is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Centex (NYSE:CTX - News). CTX's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: CTX, ESRX, Hot Options, LEN, MBI, MIR, NDE, RIMM

IndyMac Bancorp (NYSE: NDE - News): No news is bad news in the case of NDE, according to Cramer who comments that selling isn't done until a subprime lending company goes under. He suspects NDE wants to pretend everything is fine, and the fact that NDE hasn't announced its dividends are suspended or hasn't given any indication of its financials is a special code for "We don't have a clue what's going on, but we'll let you know when we're out of business."
T. Rowe Price (NasdaqGS: TROW), Polo Ralph Lauren (NYSE: RL - News), Alliant Techsystems (NYSE: ATK - News), Coke (NYSE: KO - News) and Heinz (NYSE: HNZ - News): Cramer suggests being on the lookout for companies like TROW, RL, ATK, KO and HNZ which yield substantial dividends, and he notes that all of them, particularly ATK and HNZ, had really strong quarters. He also likes the fact that Coke recieved three upgrades in the last two weeks, but despairs of Wall Street's indifference.
IAC/InterActiveCorp (NasdaqGS: IACI): CEO Barry Diller has been buying back stock at $37 and $38 and is putting billions of dollars to work, comments Cramer; "but they still sell it below where he wants to buy it. I call that stupid."

Labels: ATK, HNZ, Jim Cramer, Jim Cramer's Stop Trading, KO, NDE, RL

24/7 Real Media Inc. (NasdaqGM:TFSM - News) reported a fourth-quarter net loss of $227,000, or breakeven per share, compared with net earnings of $1.4 million, or 3 cents a share, in the year-ago period. Revenue rose to $60 million from $41.7 million.
Amgen Inc. (NasdaqGS:AMGN - News) disclosed it's received an informal inquiry from the Securities and Exchange Commission seeking more information about a Danish study of the company's Aranesp anemia drug.
Avocent Corp. (NasdaqGS:AVCT - News) revised its previously-announced fourth-quarter earnings down by $0.7 million and its revenue by $2.8 million after becoming aware that several previously recorded transactions did not meet revenue recognition criteria. The firm also said certain royalties earned by its LANDesk unit should have been recorded prior to the closing of its acquisition. Avocent said it now doesn't expect to pay the previously accrued contingent consideration of $27 million related to the acquisition. Taking account of the revision, Avocent said fourth-quarter revenue rose 55% to $166.1 million and operating income per share was 59 cents in the quarter, compared to 49 cents a year ago.
Ciena (NasdaqGS:CIEN - News) said it swung to a first-quarter profit of $11.1 million, or 12 cents a share, after revenue jumped 37% to $165 million. Excluding amortization of intangible assets, stock-based compensation and other items, it would've earned 22 cents a share. Analysts polled by Thomson Financial had expected earnings of 23 cents a share on revenue of $164 million. "As bandwidth demands escalate across multiple traffic types, service provider and enterprise customers alike are increasingly looking for solutions that allow them to transition their networks toward powerful converged network architectures capable of delivering any service at any time," said Gary Smith, CEO, in a statement.
Circuit City Stores (NYSE:CC - News) was downgraded to market perform from outperform at Piper Jaffray.
Comfort Systems USA Inc. (NYSE:FIX - News) reported fourth-quarter net earnings of $7.5 million, or 18 cents a share. During the year-ago period, the company posted a net loss of $17.6 million, or 44 cents a share. Revenue at the Houston-based provider of commercial, industrial and institutional heating, ventilation and air conditioning services rose to $268.1 million from $233.7 million.
Constellation Brands (NYSE:STZ - News) said it expects earnings of $1.21 to $1.31 a share for fiscal 2008. On a comparable basis, excluding items, the Fairport, N.Y., alcohol producer and marketer forecast earnings of $1.30 to $1.40 a share. It sees a net sales decrease of 12% to 14% for the year, citing the impact of using the equity method to report the results of its Crown Imports joint venture. The company expects free cash flow of between $140 million and $160 million for fiscal 2008. Constellation also said its board has approved the buyback of up to $500 million worth of its common stock. The average estimate of analysts polled by Thomson Financial is for a profit of $1.83 a share in fiscal 2008. As for fiscal 2007, the company expects earnings of $1.34 to $1.39 a share. On a comparable basis, it sees a profit of $1.65 to $1.70 a share for the fiscal year ended Feb. 28. Wall Street's current consensus estimate is for earnings of $1.67 a share for the year. It sees net sales growth in the low double digit to low teens for fiscal 2007. The company also said it expects its Svedka vodka acquisition to close in mid-March.
Corrections Corp. of America (NYSE:CXW - News) said its chief financial officer, Irving Lingo, will retire. The Nashville, Tenn. correctional facility operator said it has selected Todd Mullenger, currently the company's Treasurer, as the new CFO, effective March 16.
Douglas Emmett Inc. (NYSE:DEI - News) reported a fourth-quarter net loss of $20.6 million, or 18 cents a share. The Santa Monica, Calif.-based real estate investment trust posted total revenue of $87 million for quarter, which ended Dec. 31.
Energy Partners Ltd. (NYSE:EPL - News) posted a loss of $52.5 million, or $1.35 a share, for the fourth quarter, down from a year-ago profit of $28.1 million, or 69 cents a share. The New Orleans-based oil and natural gas exploration company attributed the majority of its loss in the latest period to $77.9 million in pre-tax non-cash costs related to property impairments. On an adjusted basis, the company said its earnings would have been $4.9 million, or 13 cents per basic share, in the latest quarter.
Focus Media Holding Ltd. (NasdaqGM:FMCN - News) agreed to acquire Allyes Information Technology Co., a China-based Internet, for $70 million in cash and $155 million of stock.
Goodman Global (NYSE:GGL - News) reported fourth-quarter earnings of $11.2 million, or 16 cents a share, up from a year-ago loss of $803,000, or 2 cents a share. Excluding items, the Houston-based maker of heating, ventilation and air conditioning products posted an adjusted profit of $13 million in the year-ago period. Looking ahead, the company forecast earnings of $1.30 to $1.40 a share for 2007. Wall Street's current consensus estimate is for a profit of $1.30 a share for the year.
Hertz Global Holdings Inc. (NYSE:HTZ - News) said it will eliminate 1,350 jobs in a new restructuring initiative intended to save $125 million in yearly compensation.
IndyMac Bancorp (NYSE:NDE - News) said it sees tough conditions ahead for loan originations and credit, and warned earnings in 2007 will be lower than 2006. In a letter to shareholders, the company forecast a return on equity (ROE) of 10%-15% for the year. "Our ROEs for the early quarters of the year will be at the low end of the range above; however, during the second half of the year, if we execute on our plans as we expect, and with a little luck, our ROEs could be at or even somewhat above the high end of the range," the company said.
Input/Output Inc. (NYSE:IO - News) shares tumbled after the Houston-based provider of seismic acquisition equipment and software reported fourth-quarter net earnings of $13.7 million, or 15 cents a share, vs. $16.1 million, or 17 cents a share, in the year-ago period. Revenue rose to $166.2 million from $131 million. Analysts polled by Thomson Financial were expecting a per-share profit of 15 cents. Input/Output forecast 2007 earnings of 45 cents to 60 cents a share on revenue of $610 million to $670 million.
Intevac (NasdaqGM:IVAC - News) was downgraded to market weight from overweight at Thomas Weisel Partners.
Laboratory Corp. of America (NYSE:LH - News) said it expects 2007 earnings will be reduced by 4-12 cents a share after Aetna Inc. (NYSE:AET - News) cancelled its contract with the company, effective July 1. "We are disappointed with Aetna's decision but we are confident in our strategy for profitable growth," CEO David King said in a release.
Limited Brands Inc. (NYSE:LTD - News) said its profit fell in the latest quarter compared with the same period a year earlier, which was lifted by favorable onetime gains.
Medicis Inc. (NYSE:MRX - News) reported fourth-quarter net income of $17.9 million, or 27 cents a share, compared with $37.3 million, or 56 cents a share, for the same quarter last year. Revenue rose to $99.1 million, from $80.7 million last year. Medicis also said it expects to post earnings of 12 cents a share and revenue of $95 million for the first quarter 2007. For 2007, the company sees earnings of $1.12 a share, on revenue of $455 million.
Published By MarketWatch

Labels: AET, AMGN, AVCT, CC, CIEN, CXW, DEI, EPL, FIX, FMCN, GGL, HTZ, IO, IVAC, LH, LTD, MRX, NDE, STZ, TFSM

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Mastercard Apr 125 Calls (NYSE:MA - News). PowerRating not available due to less than 200 days of trading history.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Digital River Mar 55 Puts (NasdaqGS:DRIV - News). DRIV's PowerRating is 4.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple Apr 90 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Bear Sterns Apr 145 Puts (NYSE:BSC - News). BSC's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Simon Property Group (NYSE:SPG - News). SPG's PowerRating is 6.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock. IndyMac Bancorp (NYSE:NDE - News). NDE's PowerRating is 6.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Micron Technology (NYSE:MU - News). MU's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, BSC, DRIV, MA, MU, NDE, SPG, stock options

News Corp. (NYSE:NWS - News) said fiscal second-quarter net income fell to $822 million, or 27 cents per class A share and 23 cents per class B share. In the year-ago period it earned $1.08 billion, or 35 cents per class A share and 29 cents a class B share. On a continuing operations basis, it earned 26 cents a share. Revenue rose to $7.84 billion from $6.67 billion. During the quarter, Liberty Media Corp. agreed to exchange its entire 16.3% position in News Corp. for the company's entire interest in DirecTV Group, three regional sports networks and $550 million of cash, subject to adjustment. If approved, the deal is expected to be completed in the second half of calendar 2007.
New York Mortgage Trust (NYSE:NTR - News) agreed to sell certain assets of its REIT unit's mortgage banking platform to IndyMac Bank (NYSE:NDE - News) for about $13.4 million.
Nortel Networks Corp. (NYSE:NT - News) outlined a restructuring plan that calls for the elimination of 2,900 jobs. It anticipates about 70% of the layoffs will take place this year. The Canadian communications equipment provider also said it expects to shift 1,000 jobs to what it termed "lower-cost locations." The company estimates these actions will result in annual savings of about $400 million with half of this figure expected to be realized in 2007. It sees the cost of the restructuring coming in as high as $390 million with $300 million of this figure related to the workforce reductions and $90 million stemming from plans to consolidate and reduce its global real-estate portfolio. Nortel expects to record about 75% of this cost as charges in 2007. The company said it expects revenue of about $3.26 billion for the fourth quarter, a performance that would represent an increase of about 8.8% from last year's equivalent total of $3 billion. The company, which also announced a restructuring plan that calls for the elimination of about 2,900 jobs, sees gross margin for the period at slightly above 40% of revenue. The current average estimate of analysts polled by Thomson Financial is for revenue of $3.21 billion. The company said it expects to report its operating and financial performance for the fourth quarter and full year in the second half of February.
OYO Geospace (NasdaqGM:OYOG - News) shares advanced after the Houston-based maker of equipment for the oil and gas industry posted a fiscal first-quarter net profit of $7.85 million, or $1.30 a share, up from $1.28 million, or 22 cents a share, in the year-ago period. Revenue more than doubled, rising to $44.8 million from $21.9 million.
Ralcorp Holdings (NYSE:RAH - News) reported fiscal first-quarter earnings of $7.6 million, or 28 cents a share, up from a year-ago profit of $9.7 million, or 32 cents a share. Sales rose in the latest three months to $522.7 million from $464 million a year earlier. The St. Louis-based branded food provider said its latest quarter includes a non-cash loss of $17.9 on forward sale contracts related to its shares of Vail Resorts Inc. (NYSE:MTN - News).
SCM Microsystems' (NasdaqGM:SCMM - News) shares leapt after the Fremont, Calif.-based developer of smart card technology forecast an operating profit on revenue of $8.5 million to $9.5 million and a gross margin of roughly 40%. Operating expenses in the fourth quarter are expected to be between $3.3 million and $3.6 million, the company said.
SWS Group (NYSE:SWS - News) shares jumped after the Dallas-based provider of investment and financial services reported fiscal second-quarter earnings of $12.9 million, or 48 cents a share, on revenue of $74.3 million.
USANA Health Sciences' (NasdaqGS:USNA - News) shares rose after the Salt Lake City, Calif.-based maker of nutrition and personal care products late Tuesday reported a fourth-quarter net profit of $11.1 million, or 61 cents a share, up from $10.5 million, or 54 cents a share, last year. Revenue rose 16.5% to $99.8 million from $85.6 million. The company forecast first-quarter net earnings of 61 cents to 63 cents a share on revenue of $103 million to $105 million. For 2007, the company now expects earnings per share to grow 17% to 20% and revenue to grow 15% to 17%.
Valassis Communications (NYSE:VCI - News) reported fourth-quarter earnings before items of $20.6 million, or 43 cents a share, compared to the average estimate of analysts polled by Thomson Financial for a profit of 40 cents a share. For 2007, the Livonia, Mich., marketing services provider said it expects pro forma combined revenue of $2.5 billion to $2.6 billion.
Vanda Pharmaceuticals Inc. (NasdaqGM:VNDA - News) said its fourth-quarter net loss narrowed to $11.9 million from a year ago loss of $21.8 million. The year-ago loss also included a $15 million charge from dividend payments to preferred stockholders. Research and development costs rose 52% to $7.9 million. Research costs were around 21% lower than the third quarter due to the completion of two Phase 3 trials. Vanda also engaged an investment bank to provide strategic advisory services. "This engagement may lead to one or more possible transactions, including the acquisition, sale or licensing by the company of businesses or product candidates, the sale or licensing to a third party of one or more of the company's own product candidates, or the acquisition of the company," Vanda said.
Vornado Realty Trust (NYSE:VNO - News) shares rose after the company said it's terminating its proposal to acquire Equity Office Properties Trust (NYSE:EQR - News). "Vornado concluded that the premium it would have to pay to top Blackstone's latest bid, protected by a twice-increased breakup fee, would not be in its shareholders' interest," the company said in a statement. A report Wednesday morning said Equity Office shareholders at a special shareholder meeting are expected to vote in favor of a bid from private-equity firm Blackstone Group, which had been in a bidding war with Vornado for the nation's largest office REIT.
Published By Michael Baron

Labels: EQR, MTN, NDE, NT, NTR, NWS, OYOG, RAH, SCMM, SWS, USNA, VCI, VNDA, VNO

Alaska Communications (NasdaqGM:ALSK - News) was downgraded to underweight from equal weight at Lehman Bros.
Allied Capital Corp. (NYSE:ALD - News) agreed to sell its portfolio company, Palm Coast Data Holdco Inc., to Kable Media Services Inc., a unit of Amrep Corp. (NYSE:AXR - News). The value of the transaction was $92 million.
Blackbaud Inc. (NasdaqGS:BLKB - News) acquired privately owned sister companies Target Software Inc. and Target Analysis Group Inc. for $60 million, plus up to an additional $2.4 million under a 1-year earn-out arrangement. Blackbaud sees the acquisition cutting earnings per share, before items, in 2007 by 3 to 6 cents.
Cheesecake Factory Inc. (NasdaqGS:CAKE - News) said Peter D'Amelio, president and chief operating officer of the restaurant division, is leaving for personal reasons, effective Feb. 2. The company is searching for a replacement.
Cosi (NasdaqGM:COSI - News) was downgraded to buy from strong buy at Wedbush Morgan.
Fortunet Inc. (NasdaqGM:FNET - News) was initiated with a hold rating at W.R. Hambrecht & Co.
Fulton Financial (NasdaqGS:FULT - News) said fourth-quarter net income rose, as interest income gained, to $46.6 million, or 27 cents a share, from $40.9 million, or 25 cents a share, during the same period in the prior year. The Lancaster, Pa.-based financial holding company said quarterly net interest income rose to $121.7 million from $107.9 million in the prior year.
Genomic Health (NasdaqGM:GHDX - News) was downgraded to equal weight from overweight at Lehman Bros. on valuation concerns.
Health Care Property Investors Inc. (NYSE:HCP - News) priced a public offering of 6.77 million of its shares. The real estate investment focusing on healthcare facilities said it has granted underwriters a 10-day option to purchase an additional 1.02 million shares.
Indymac (NYSE:NDE - News) was downgraded to market perform from market outperform at JMP Securities.
Intel (NasdaqGS:INTC - News) said fourth-quarter profit dropped 39% as the world's largest chipmaker cut prices and boosted investment, attempting to beat back a challenge from smaller rival Advanced Micro Devices.
Isis Pharmaceuticals' (NasdaqGM:ISIS - News) shares slumped after the Carlsbad, Calif.-based company said late Tuesday it plans to raise roughly $125 million through an offering of convertible subordinated notes due 2027 in a private placement. Isis also plans to grant the initial purchasers a 30-day option to buy up to an additional $37.5 million of convertible notes. The company said it will use the proceeds of the offering repurchase, retire or repay its 5.5% convertible subordinated notes due 2009 and for general corporate purposes.
Linear Tech (NasdaqGS:LLTC - News) said second-quarter net earnings rose slightly to $105 million, or 34 cents a share, from $103.2 million, or 33 cents, last year, as sales were virtually flat. Excluding stock-based compensation, the company posted per-share earnings of 39 cents vs. 36 cents last year.
Polycom (NasdaqGS:PLCM - News) was downgraded to hold from buy at Wedbush Morgan.
Rackable Systems Inc. (NasdaqGS:RACK - News) said it expects fourth-quarter results to range from a net loss of $683,000, or 2 cents a share, to net earnings of $194,000, or 1 cent a share. The company said it is "disappointed" it did not meet its per-share earnings and gross margin goals, citing higher-than-expected DDR memory pricing and intense competition as reasons for the missed targets.
Ryanair Holdings (NasdaqGS:RYAAY - News) was downgraded to hold from buy at Citigroup Investment Research.
Southwest Airlines (NYSE:LUV - News) reported fourth-quarter net income fell 19% on 15% higher revenue. Earnings fell to $57 million, or 7 cents a share, from $70 million, or 9 cents, in the year-earlier period. Excluding special items, earnings were 12 cents against 10 cents. Revenue reached $2.28 billion from $1.99 billion. A survey of analysts by Thomson First Call produced a consensus estimate of 12 cents of profit on $2.28 billion of revenue. Southwest said it hopes in 2007 to exceed its target of 15% growth in earnings per share excluding special items. For the first quarter, Southwest said it's 100% hedged for jet-fuel prices at the equivalent of an average of $50 a barrel of crude. That's compared with the year-earlier period's level of 75% hedged at $36 a barrel.
Trustmark Corp. (NasdaqGS:TRMK - News) reported fourth-quarter net earnings of $29.4 million, or 50 cents a share, up 6% from $27.7 million, or 50 cents a share, during the year-ago period. There were 59.1 million shares outstanding during the compared with 56 million a year ago.
UST Inc. (NYSE:UST - News) was downgraded to neutral from buy at UBS. The firm cited valuation.
Weyerhaeuser (NYSE:WY - News) was downgraded to neutral from buy at UBS. The firm cite weaker fundamentals.
World Acceptance Corp. (NasdaqGS:WRLD - News) was downgraded to hold from buy at Jefferies & Co., citing valuation. The firm also cut its price target on the stock to $49 from $53.

Labels: ALD, ALSK, AXR, BLKB, CAKE, COSI, FNET, FULT, GHDX, HCP, INTC, ISIS, LLTC, LUV, NDE, PLCM, RACK, RYAAY, TRMK

Wells Fargo (NYSE: WFC - News), Commerce Bank (NYSE: CBH - News), IndyMac (NYSE: NDE - News), Bank of America (NYSE: BAC - News), National City (NYSE: NCC - News), SL Green (NYSE: SLG - News), CB Richard Ellis (NYSE: CBG - News): Cramer called Wells Fargo's quarter a "thing of the beauty" and commented that it was the good stock out of the good, bad and the ugly among Tuesday's bank earnings reports. The "bad" was CBH, which dropped 9% in heavy trading after it announced that it was checking some transactions involving officers. However, Cramer doesn't believe that this will have any long-term effect and that those who are confident that the Fed will cut rates may feel that CBH is "the best-run bank in North America. " It sells at twice book value, and Cramer believes it is becoming cheap. The "ugly" was IndyMac which Cramer puts in the sell category in spite of a 7% fall, since it is connected with homebuilders and subprime lenders, which are both difficult sectors. Although Cramer thinks that BAC should avoid making more acquisitions, he thinks it could buy NCC or CMA. Cramer follows CGM Funds manager Ken Heeber' s call in favor of real estate plays SLG and CBG. "Heebner owns this segment," Cramer said. "No one is better than Heebner.'
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Acuate Corp. (NASDAQ:ACTU - News) was downgraded to market perform from market outperform. The firm cited expectations for transitional issues as the company moves toward an open source model.
Cardica Inc. (NASDAQ:CRDC - News) said in a regulatory filing that it is initiating a voluntary recall of 55 units of its C-Port xA blood vessel connection system used in heart bypass operations after internal testing showed a manufacturing defect. The Redwood City, Calif., company said the recall will hurt the company's revenue for the quarters ended March 31, 2007, and Dec. 31, 2006, but did not specify by how much.
Centex Corp. (NYSE:CTX - News) said it expects to swing to a third-quarter loss from continuing operations of $2.00 per share, from a profit of $2.52 a share a year ago. The company said it will record land valuation adjustments of around $300 million due to the declining housing market. It has also decided not to exercise land option contracts on 37,000 lots, which will result in walk-away costs of around $150 million. Centex plans to increase its provision for taxes by around $60 million in connection with its ongoing federal tax audit. Excluding these costs, Centex expects adjusted earnings for the quarter of 75 cents a share. Analysts polled by Thomson First Call were expecting earnings of 81 cents a share. For the quarter, Centex said home closings fell 12% to 8,360 and net orders fell 24% to 6,139.
Cisco Systems Inc. (NASDAQ:CSCO - News) was downgraded to neutral from buy at Banc of America Sec., due primarily to valuation. Analyst Tim Long said he believes the networker's business is "as good as it gets," and therefore sees limited upside to the shares. In addition, Prudential Equity Group lowered its rating on the networking giant's stock to neutral weight.
Commerce Bancorp (NYSE:CBH - News) shares fell after the bank said it's been advised that an investigation is being conducted by the Office of the Comptroller of the Currency, in conjunction with the Board of Governors of the Federal Reserve System. "Commerce has further been advised that the scope of the investigation will include but not be limited to transactions with its officers, directors and related parties, including transactions involving bank premises," the company said. "Commerce is fully cooperating with the OCC and the Federal Reserve with respect to the investigation." The company also reported its fourth-quarter results, saying net income jumped 68% to $78.7 million, or 40 cents a share.
Edge Petroleum Corp. (NASDAQ:EPEX - News) said it plans to sell 9.2 million common shares. The deal includes an over-allotment option for the sale of an additional 1.38 million common shares. Houston-based Edge also plans to concurrently offer 2 million shares of Series A cumulative preferred stock. The company anticipates it will use the proceeds to finance its pending acquisition of certain properties from Smith Production Inc. and to refinance its existing revolving credit facility.
Freeport-McMoran Copper & Gold (NYSE:FCX - News) reported fourth-quarter earnings of $441.6 million, or $1.99 per share, down from a year-ago profit of $478.3 million, or $2.19 a share. Revenue rose in the latest three months to $1.64 billion from $1.49 billion in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of $2.12 a share on revenue of $1.72 billion. Looking ahead, Freeport-McMoran said it expects to close in merger agreement with Phelps Dodge in early March. It anticipates sales for the first quarter will be "the highest of the year" with about 400 million pounds of copper and 850,000 ounces of gold.
Goodrich Petroleum Corp. (NYSE:GDP - News) definitively agreed to sell substantially all its assets in south Louisiana for $100 million, effective as of July 1, 2006. The deal is subject to conditions including a due-diligence financial review by the buyer, which a news release identified as a private purchaser. The purchase price will be adjusted for cash flow to the closing date, which Goodrich estimated as Feb. 27, 2007. Goodrich said the deal enables it to focus on developing its Cotton Valley trend acreage and to reduce operating costs.
Headwaters Inc. (NYSE:HW - News) said it plans to sell $125 million worth of convertible senior subordinated notes due 2014 through a private placement. The deal includes an over-allotment option for the sale of an additional $25 million worth of notes.
Indymac (NYSE:NDE - News) said it expects fourth-quarter net income of 97 cents a share, lower than its earlier forecast of $1.30-$1.40 a share. Analysts surveyed by Thomson First Call forecast earnings of $1.34 a share, on average, for the period. "This shortfall reflects the challenging times being faced by the mortgage and housing industries and the difficult nature of forecasting earnings in our business," the Pasadena, Calif., financial services company said.
Intel (NASDAQ:INTC - News) shares were lower ahead of the Dow component's quarterly report, which is due after the closing bell. The current average estimate of analysts polled by Thomson First Call is for a profit of 25 cents a share on revenue of $9.44 billion.
KLA-Tencor (NASDAQ:KLAC - News) was downgraded to hold from buy at Deutsche Bank.
Lam Research (NASDAQ:LRCX - News) was downgraded to hold from buy at Deutsche Bank.
Lamson & Sessions (NYSE:LMS - News) took down its profit outlook due to a slump in the price of PVC pipe due at least in part to a weaker-than-expected residential construction. The company now sees earnings of $2.42 to $2.43 a share for 2006. "This segment's operating loss is due to an industry-wide inventory reduction in the fourth quarter following a mild hurricane season along with lower energy costs," the company said. That meant "an accelerated decline in selling prices that outpaced a decrease in raw material costs. In addition, the residential construction market was much weaker than expected." Previously, the company had been expecting to earn $2.50 to $2.53 a share for the year but, Lamson noted, even the lower number is still a record. On the top line, its still expects to bring in sales of $560 million to $561 million.
Marchex (NASDAQ:MCHX - News) was downgraded to market perform from market outperform at JMP Securities. The firm cited a deceleration of the company's direct navigation business.
Medicines Co. (NASDAQ:MDCO - News) plans to sell six million shares of its common stock. The company also intends to grant the underwriters a 30-day option to purchase up to an additional 900,000 shares of common stock. Bear Stearns and Merrill Lynch are acting as joint book-running managers for the offering. The company was also downgraded to reduce at UBS.
Mesabi Trust (NYSE:MSB - News) declared a distribution of 31.5 cents per beneficial unit late Friday, payable on Feb. 20 to shareholders of record on Jan. 30. The company's distribution was 47 cents per unit for the same period a year earlier, a decline Mesabi attributed to significantly lower shipments of iron ore pellets in the calendar fourth quarter of 2006.
Novellus Systems (NASDAQ:NVLS - News) was downgraded to sell from hold at Deutsche Bank.
Sterling Construction Co. (NASDAQ:STRL - News) forecast earnings of $13.4 million to $15 million, or $1.13 to $1.26 per share, for fiscal 2007 on revenue of between $285 million and $310 million. The current average estimate of analysts polled by Thomson First Call is for a profit of $1.30 a share for the year on revenue of $300.9 million. Also, as of Dec. 31, the company's backlog stood at about $395 million, up 29% from year-ago levels. Shares of the Houston-based civil construction company closed Friday at $20, down 2.4%.
Symantec Corp. (NASDAQ:SYMC - News) said it was lowering its third-quarter earnings and revenue forecast, citing a weaker-than-anticipated performance by its data center management business and higher deferrals than expected as a result of a greater proportion of enterprise maintenance contracts. The Cupertino, Calif. security software company cut its earnings estimate to 10 to 11 cents a share from 14 to 15 cents a share and his revenue forecast to $1.29 billion to $1.31 billion from $1.315 billion from $1.149 billion. Excluding non-recurring items, the company lowered its earnings estimate to 24 to 25 cents a share from 29 to 30 cents, and its revenue projection to $1.30 billion to $1.32 billion from $1.325 billion to $1.355 billion. For the fiscal fourth-quarter, the company expects adjusted earnings of 18 to 20 cents a share, below the average analyst estimate compiled by Thomson First Call of 32 cents.

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