Jim Cramer Blog

Sliding oil prices and a spate of M&A deals spurred investors to resume buying stocks. In doing so, they looked past the struggle that one of the nation's leading subprime lenders faces in a bid to survive. After a lackluster start to the week, buying picked up in the mid-afternoon as the major stock averages pushed sharply higher before easing somewhat in the final 30 minutes of trading. The 10-year Treasury note also attracted buyers, which cut the yield -4 basis points to 4.55%. Crude oil futures dipped near $59 a barrel.
Early in the day, the market was focused on the travails of New Century Financial (NYSE: NEW - News), which appears to be teetering on the brink of insolvency. The company disclosed in a filing with the Securities and Exchange Commission that all of its lenders have either cut financing or will cease to finance New Century's short-term borrowings. New Century said last Thursday it would no longer accept new loan applications due to liquidity problems. The company hinted it does not have the funds to meet current obligations, which may exceed $8 billion. Subscribers can read further analysis on the fallout from this latest development in today's issue.
Merger activity helped shake off the cloud created by New Century's woes. Ford Motor (NYSE: F - News) took a step toward funding its own recovery plan by announcing it has sold its Aston Martin unit to a consortium of investors for $848 million. The U.K.-based unit is best known for the exotic, pricey sports cars used in the James Bond movie series. The car now retails for between $110,000 and $270,000 each.
Schering-Plough (NYSE: SGP - News), meanwhile, announced it plans to buy the pharmaceuticals division of Akzo Nobel (Nasdaq: AKZOY - News) for $14.5 billion in cash. U.S.-traded shares of Akzo, a Dutch company, jumped 16% on the news. The deal will given Schering the Akzo Organon Biosciences unit, which makes a range of fertility, birth control, and women's health products. That addition should lessen Schering's dependence on its Vytorin and Zetia cholesterol-lowering drugs. Organon also has a treatment for schizophrenia and bipolar disorder in late-stage development, but Pfizer (NYSE: PFE - News), its partner in the development of the drug asenapine, dropped out after the treatment achieved mixed results in clinical trials.
In the health insurance sector, UnitedHealth Group (NYSE: UNH - News) agreed to buy Sierra Health Services (NYSE: SIE - News) for about $2.6 billion in cash. Sierra services about 310,000 employer-sponsored health plan members in Nevada and another 320,000 members enrolled in senior and government programs nationwide. UnitedHealth offered $43.50 a share for Sierra, or roughly a 21% premium over Friday's close. Sierra added 16% today. Separately, Express Scripts (Nasdaq: ESRX - News) ended 5% higher on the day after announcing it would not raise its bid for rival Caremark Rx (NYSE: CMX - News). Express Scripts has been battling drug-store retailer CVS (NYSE: CVS - News) to acquire Caremark. Both Caremark and CVS ended down -2%.
In the final major deal of the day, the management of discount retailer Dollar General (NYSE: DG - News) agreed to a $6.9 billion buyout bid from Kohlberg Kravis Roberts. KKR offered $22 a share, a 31% premium over Friday's close, for the operator of more than 8,200 discount stores nationwide. Dollar General jumped 26% higher on the news.
By the BullMarket.com Staff

Labels: AKZOY, CMX, CVS, DG, ESRX, F, NEW, pfe, SGP, SIE, UNH

Stocks showed little movement Monday as further cracks appeared in the subprime lending sector, stirring concerns that a blowup among companies making loans to consumers with poor credit will spill over into other industries.
A warning from New Century Financial Corp. early Monday about its financial woes overshadowed merger news, which often gives a boost to enthusiasm on Wall Street.
The renewed concerns about subprime lenders follow a relatively successful week on Wall Street. Stocks etched out gains last week U.S. and overseas markets managed to regain some sense of stability following a sharp pullback that began Feb. 27. Even amid the gains seen last week, however, concerns about subprime lenders weighed on investors.
"We've had fairly flat trading given the continuing meltdown in New Century," said Frederic Dickson, market strategist and director of retail research at D.A. Davidson & Co. "The market appears to have handled this latest piece of news in a fairly decent and orderly way, almost as if had anticipated it happening at the end of last week."
In late morning trading, the Dow Jones industrial average fell 9.69, or 0.08 percent, to 12,266.63.
Broader stock indicators slipped. The Standard & Poor's 500 index fell 3.44, or 0.25 percent, to 1,399.41, and the Nasdaq composite index fell 0.80, or 0.03 percent, to 2,386.75.
Bonds rose amid the concerns about subprime lenders; the yield on the benchmark 10-year Treasury note falling to 4.54 percent from 4.59 percent late Friday. The dollar was mixed against other major currencies, while gold prices were little changed.
Light, sweet crude fell $1.17 to $58.88 per barrel on the New York Mercantile Exchange.
In corporate news, New Century warned in a filing with the Securities and Exchange Commission that all its lenders had cut off short-term funding or announced plans to do so after the subprime mortgage lender wasn't able to make payments. New Century, which relies on short-term borrowings to finance mortgage loan originations and purchases, said it would need about $8.4 billion should it be forced to repurchase all outstanding mortgage loans. The company said it doesn't have sufficient liquidity to meet its obligations for repurchasing mortgages.
Trading in New Century shares remained halted with news pending, as it had been before the opening bell.
Other subprime lenders fell sharply. Fremont General fell 86 cents, or 10.7 percent, to $7.17, while Novastar Financial Inc. fell 67 cents, or 12.8 percent, to $4.57.
Investors have grown uneasy about the subprime market amid fresh concerns about the ability of some homeowners with spotty credit to continue to make mortgage payments. Many of the mortgages came with low teaser rates and a cooling housing market has made it more difficult for people to extract cash from equity in their homes by refinancing.
Amid the din over subprime lenders, buyout news offered some support for stocks. Word that private-equity company Kohlberg Kravis Roberts & Co. struck a deal to acquire Dollar General Corp. for about $6.87 billion sent the discount retailer sharply higher. Dollar General jumped $4.38, or 26.1 percent, to $21.16 -- well past the stock's 52 week high of $18.32.
As often occurs when a company announces an acquisition, Schering-Plough Inc. fell 22 cents to $23.63 after agreeing to purchase the Organon BioSciences BV pharmaceuticals business of Akzo Nobel NV, the Dutch maker of chemicals and coatings, for $14.5 billion. Akzo rose $9.94, or 16.4 percent, to $70.75.
UnitedHealth Group Inc., the health insurer, announced plans to acquire health care services provider Sierra Health Services Inc. for about $2.6 billion. Sierra Health rose $5.66, or 15.8 percent, to $41.56, while UnitedHealth advanced 28 cents to $53.28.
Boeing Co., one of the 30 stocks that make up the Dow industrials, said Kuwait-based Alafco Aviation Lease and Finance Co. agreed to purchase 18 airplanes with a list value of $2.26 billion. The deal includes 12 787-8 Dreamliner airplanes and six 737-800s. Boeing rose 97 cents to $90.48.
Procter & Gamble Co., the consumer products company, said it struck a deal to sell its Western European tissue and towel business to SCA, which makes paper and other products, for about $671.9 million. P&G, also a Dow component, advanced 11cents to $62.27.
Declining issues outnumbered advancers by about 8 to 7 on the New York Stock Exchange, where volume came to 469.6 million shares.
The Russell 2000 index of smaller companies fell 1.29, or 0.16 percent, to 783.83.
Overseas, Japan's Nikkei stock average rose 0.75 percent, Hong Kong's Hang Seng index added 1.61 percent and the Shanghai Composite Index added 0.58 percent. In afternoon trading, Britain's FTSE 100 fell 0.29 percent, Germany's DAX index slipped 0.08 percent, and France's CAC-40 fell 1.02 percent.

Labels: AKZOY, BA, DG, NEW, NFI, PG, SIE, UNH

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.
Goldman Sachs Apr 230 Calls (NYSE:GS - News). GS' PowerRating is 4.
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.
New Century Financial Corp. Apr 10 Puts (NYSE:NEW - News). NEW's PowerRating is 7.
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.
Atherogenics Apr 7.5 Calls (NasdaqGM:AGIX - News). AGIX'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.
Chicago Mercantile Exchange Apr 520 Puts (NYSE:CME - News). CME's PowerRating is 5. Google Apr 410 Puts (NasdaqGS:GOOG - News). GOOG'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.
Noble Corp. NYSE:NE. NE's PowerRating is 5.
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.
None today.
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.
Baidu.com (NasdaqGM:BIDU - News). BIDU's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: AGIX, BIDU, CME, GOOG, GS, Hot Options, NE, NEW

Stocks opened moderately lower Monday as further cracks appeared in the subprime lending sector, stirring concerns that a blowup among companies making loans to consumers with poor credit will spill over to other sectors.
A warning from New Century Financial Corp. early Monday about its financial woes overshadowed merger news, which often gives a boost to enthusiasm on Wall Street.
The renewed concerns about subprime lenders follow a relatively successful week on Wall Street. Stocks etched out gains last week U.S. and overseas markets managed to regain some sense of stability following a sharp pullback that began Feb. 27. Even amid the gains seen last week, however, concerns about subprime lenders weighed on investors.
In the opening minutes of trading, the Dow Jones industrial average fell 5.28, or 0.04 percent, to 12,271.04.
Broader stock indicators also fell. The Standard & Poor's 500 index fell 1.19, or 0.08 percent, to 1,401.66, and the Nasdaq composite index 0.95, or 0.04 percent, to 2,386.60.

Labels: Dow Jones, Hot Stocks, Nasdaq, NEW

Not a Borrower but a Lender Be: Cash America International (NYSE: CSH - News), Advance America, Cash Advance Centers (NYSE: AEA - News), New Century (NYSE: NEW - News) and NovaStar (NYSE: NFI - News)
"Where others see catastrophe, I see opportunity," Cramer said concerning the subprime lending crisis, and suggested playing difficulties with working class loans by investing in"pawnbrokers and loan sharks." Cramer calls CSH the "largest player in pawn lending," and comments the slightly risky and morally dubious AEA is "cheap, cheap, cheap." While others are spending their time and resources shorting NEW and NFI, Cramer prefers being bullish on CSH and AEA.

Rubble Stock: Chemed (NYSE: CHE - News)
Thursday's so-called "rubble stock" which Cramer thinks did not deserve the beating it took during the selloff was Chemed, a company which has a thriving Vitas hospice operation and Roto-Rooter plumbing business. Cramer likes CHE because it "blew away its numbers" right before the selloff, and although it has recovered somewhat, CHE is still low enough to buy. CHE jumped $7 in one day, and shed $2 during The Fall, and although the drop was not significant, Cramer still believes CHE is "immunized" against downside and he would buy it before "it gets its mojo back."

Sell Block: Fortress (NYSE: FIG - News), Goldman Sachs (NYSE: GS - News), Melco PBL Entertainment (NasdaqGM: MPEL), IPG Photonics (NasdaqGM: IPGP), Wynn (NasdaqGS: WYNN), Las Vegas Sands (NYSE: LVS - News), Artes Medical (NasdaqGM: ARTE), Switch & Data Facilities (NasdaqGM: SDXC), Aero Vironment (NasdaqGM: AVAV), Opnext (NasdaqGS: OPXT)
Cramer dedicated Thursday's Sell Block to tracking the success and failure of recent IPOs. He suggested selling FIG and buying GS instead. He would also sell MPEL and IPGP "on any strength," and admitted that Meclo was an "unmitigated disaster," and apologized for backing it, saying he "extrapolated" his bullishness from the success of WYNN and LVS in Macau. Cramer was glad he didn't recommend ARTE, because the company is not thriving, but would buy SDXC which is cheaper than its rivals and will have a "positive news flow in the near term." He also likes AVAV as a defense play and would pick up OPXT, but only when it dips.
CFO Interview: Rick Lindner, AT&T (NYSE: T - News)
Cramer asked CFO Rick Lindner how the company was able to put cash into AT & T Wireless, continue to develop and build its network and raise its dividend simultaneously. Lindner replied, "First of all, we've done three large acquisitions in the past three years," which have resulted in "tremendous opportunities for merger synergies. And those synergies are driving double-digit growth." He also commented on new products and growth in wireless and data. Although Cramer usually discourages a "buy and hold" strategy, he said investors "can buy AT&T and put it away," because it is well-run and has a solid yield.
Published By SeekingAlpha

Labels: AEA, ARTE, CHE, CSH, FIG, GS, Jim Cramer, LVS, Mad Money, NEW, NFI, SDXC, WYNN

New Century (NYSE: NEW - News), NovaStar (NYSE: NFI - News) and Camden Property Trust (NYSE: CPT - News): Cramer says the "overdone" panic over sub-prime lending will have a lasting impact on only "one or two ne'er do wells." Although it is possible a major financial institution may take a hit from the NEW and NFI fiasco, he emphasized the "rush to capital from this sector," and predicts that all but the weakest will survive. On another note, Cramer is bearish on CPT because it has had a big run.
Saks (NYSE: SKS - News) and J.C. Penney (NYSE: JCP - News): Cramer is bullish on SKS and JCP and believes in the consumer, although "no one on Wall Street has any faith." He also notes that "non-traditional providers of liquidity" have now gone into that sector, which is another reason to be bullish.

Labels: CPT, JCP, Jim Cramer, Jim Cramer's Stop Trading, NEW, NFI, SKS

NovaStar (NYSE: NFI - News), New Century (NYSE: NEW - News) and Fremont General (NYSE: FMT - News)
Cramer warned, on a day like Tuesday, around 3:30 is a crucial time, since the buybacks stop and the bears start spreading rumors to bring stocks down. Although it is illegal to invent such rumors, Cramer remembers hearing the tall tales when he was a hedge fund manager, but did not spread them himself because he was a "very high-profile guy" and "very easy to take down." He added, "The ethics side is very thin in the hedge fund business." Cramer thinks of NFI, NEW and FMT as "insolvent companies unless proven otherwise" which have "been very adept at hiding a lot of problems," he said. "When I say hiding problems, I'm saying I see illegality."

Labels: FMT, Jim Cramer, NEW, NFI, Wall Street Confidential

A rebound overnight in Asian markets carried westward to Europe and ignited gains on Wall Street today, sending the major market averages up more than 1% today. The rebound came despite some sluggish economic numbers from the government. Oil prices also resumed climbing as did metals, with gold, platinum, and silver all notching solid gains today. The yield on the 10-Treasury note rose to 4.53% as the bond market moved lower.
Many market observers cautioned that today's advance doesn't mean the recent correction has run its course. Among the cautionary news today was a revised report on U.S. productivity during Q4 of last year. The Commerce Department now says the productivity of U.S. workers grew at only a 1.6% annualized rate, or about half of the 3.0% gain the government agency initially forecasted.
Labor costs, meanwhile, soared, increasing to a revised 6.6%, compared with an earlier estimate of 1.7% growth. The revisions to the labor cost index and the drop in productivity point to inflationary pressures that make it less likely the Federal Reserve will act to reduce interest rates anytime soon. On top of those reports, the Commerce Department said that factory orders dropped by -5.6% in January, the biggest decline since July 2000.
Investors were willing to look past those numbers today, as buying interest was buoyed by strong gains on the Japanese, German, and British markets. Technology stocks paced today's advance, led by solid gains from Apple (Nasdaq: AAPL - News), which added 2%, and Google (Nasdaq: GOOG - News), up 4%. Google CEO Eric Schmidt said the two companies were working on additional projects, but didn't elaborate in an appearance at a West Coast technology conference. Terry Semel, CEO of Google's rival Yahoo (Nasdaq: YHOO - News), appeared at the same conference, where he said Yahoo's new Panama search technology is off to a solid start delivering better results for advertisers. The stock added 2%.
Citigroup (NYSE: C - News) enjoyed a 3% bounce after announcing a nearly $11 billion tender offer to take control of Japan's Nikko Cordial brokerage. An offer from Citi was expected since Nikko Cordial has run into problems related to an accounting scandal. Due to the scandal, the firm faces the risk of being delisted by the Tokyo Stock Exchange. Citi's relationship with the company and the weakened position it is in opened the opportunity for the U.S. banking giant. Subscribers can read our detailed analysis of the proposed deal in today's issue.
In M&A news, private equity firms Tornante and Madison Dearborn Partners said they have a deal in place to buy Topps (Nasdaq: TOPP - News), the famed maker of trading cards featuring Major League Baseball players, for $385 million. Tornante is the investment vehicle of Michael Eisner, former CEO of Walt Disney (NYSE: DIS - News). Topps gained 10% after the announcement.
Finally, investors took another look at battered subprime lenders today. Shares of New Century Financial (NYSE: NEW - News) rose 10% on more than 6x average daily volume, but the stock still has a long way to go to recoup yesterday's 69% dive. The chief financial officer of Countrywide Financial (NYSE: CFC - News), meanwhile, told an investor conference that while some subprime lenders might fail, his company won't. CFO Eric Sieracki called Countrywide a "top-conditioned athlete" that will get past current woes in the sector. The stock added 5% today. Other originators like American Home Mortgage Investment (NYSE: AHM - News) and Accredited Home Lenders Holding (Nasdaq: LEND - News) climbed 8% and 9%, respectively.
By the BullMarket.com Staff

Labels: AAPL, AHM, C, CFC, DIS, GOOG, LEND, NEW, TOPP, YHOO

Google Inc. (NasdaqGS:GOOG - News) Chief Executive Eric Schmidt said Monday that Google and Apple Inc. (NasdaqGS:AAPL - News) are working together on "many more" new projects, which he did not identify. Schmidt made his comments at a technology conference in San Francisco. Google has nearly doubled the annual salaries of Chief Financial Officer George Reyes and three other top-level executives, the company said in a regulatory filing.
Health Management Associates Inc. (NYSE:HMA - News) was upgraded to buy from hold at Deutsche Bank.
The International Securities Exchange (NYSE:ISE - News) was upgraded to buy from neutral at Banc of America Securities. "The recent spike in volatility has driven surging option volumes. We expect volatility to remain at elevated levels in the near-term, and we could be at the start of a cyclical turn to a higher volatility environment, so we are raising ISE's volume growth forecasts to 24% in 2007 and 25% in 2008," the broker said.
Landauer (NYSE:LDR - News) was upgraded to buy from neutral at Hilliard Lyons.
Lifetime Brands Inc.'s (NasdaqGS:LCUT - News) fourth-quarter net income rose to $9.46 million, or 62 cents a share, from $7.22 million, or 60 cents, a year earlier. A Thomson Financial survey of analysts, on average, projected earnings of 64 cents a share for the quarter. Analysts' estimates usually exclude items. The Westbury, N.Y., maker of consumer products said revenue rose 26% to $157.3 million from $124.4 million in the year-ago period. The company forecasts 2007 earnings of $1.40 to $1.70 a share on revenue of $540 million to $575 million. Analysts are looking for earnings of $1.58 a share for the year.
Maidenform Brands Inc. (NYSE:MFB - News) reported fourth-quarter net earnings of $3.22 million, or 13 cents a share. During the same period a year ago, the company posted a net loss of $209,000, or a penny a share. The Bayonne, N.J.-based marketer of intimate apparel reported revenue of $85 million vs. $79.5 million. For 2007, Maidenform said it expects per-share earnings growth of 15% to 18% on total net sales growth of 6% to 7%.
Microchip Technology Inc. (NasdaqGS:MCHP - News) said it still expects fiscal fourth-quarter earnings of about 33 cents a share, or 36 cents a share excluding items. The Chandler, Ariz., provider of microcontroller and analog semiconductors also said it expects net sales to be flat to slightly up from third-quarter sales of $251 million. In January, Microchip said it expected fourth-quarter revenue to be flat from the third quarter.
Monsanto (NYSE:MON - News) was upgraded to buy from hold at Citigroup, which cited expectations of a Latin American recovery and a key regulatory change in Brazil. Citigroup said it expects Brazilian farming to recover due to higher grain prices, a greater share of the soybean market as U.S. production declines and the ability to turn more land over to agriculture. It added a recent regulatory change will speed up the process for approval of biotechnology traits.
Nissan Motors (Other OTC:NSANF.PK - News) said it has appointed Mark McNabb to head its global Infiniti luxury car division, effective April 1. McNabb, 45, is returning to Nissan after a one-year stint at DaimlerChrysler where he was vice president of marketing at Mercedes-Benz USA.
Novartis (NYSE:NVS - News) upgraded to neutral from underperform by Credit Suisse after winning approval from the FDA for Tekturna. "With Galvus and Tekturna catalysts out of the way, and the shares having profoundly underperformed and with last night's close being below our 68 francs a share price target, we raise our rating to neutral and our price target to 70 francs," the broker said.
Pozen Inc. (NasdaqGM:POZN - News) shares rallied after the Chapel Hill, N.C.-based pharmaceutical company announced positive results for its PA 325 proof-of-concept study. PA 325 is a formulation of 325mg of aspirin surrounded by a 20mg coating of an immediate release formulation of a proton pump inhibitor.
ResCare Inc.'s (NasdaqGS:RSCR - News) fourth-quarter net income rose sharply to $8.99 million, or 27 cents a share, from $596,000, or 2 cents a share, a year earlier. The Louisville, Ky., healthcare company's revenue grew to $337.1 million from $270.9 million. For 2007, the company expects to earn $1.24 to $1.28 a share on revenue of $1.43 billion.
Retalix Ltd. (NasdaqGS:RTLX - News), the Ra'anana, Israel, producer of software and solutions of supermarkets, food-service firms, and goods distributors, reported fourth-quarter net income fell 38% on 5.7% higher revenue. Earnings were $3.4 million, or 17 cents a share, compared with $5.5 million, or 28 cents, in the year-earlier period. Adjusted net for the period was 27 cents a share against 32 cents. Revenue reached $56.8 million from $53.7 million. In 2007, Retalix expects to earn about $9 million to $16 million, or an adjusted $15 million to $22 million. Revenue should range $220 million to $230 million, the company estimated. In 2006, Retalix earned $1.3 million, or 6 cents a share, on revenue of $203.8 million.
Ruth's Chris Steak House Inc. (NasdaqGS:RUTH - News), a New Orleans upscale steak house operator, will replace New Century Financial Corp. (NYSE:NEW - News) in the S&P SmallCap 600 index March 7. The market cap of the mortgage real estate investment trust fell to about $253 million, below the minimum of $300 million, S&P said.
Ryerson Inc. (NYSE:RYI - News) shares rallied after the Chicago-based steel distributor postponed its annual meeting, saying it continues to consider a possible sale or other options for the company.
Santarus Inc.'s (NasdaqGM:SNTS - News) fourth-quarter loss narrowed to $7.47 million, or 15 cents a share, from $15.8 million, or 36 cents a share, a year earlier. Earnings for the most recent period included stock-based compensation expenses of about $2.2 million, or 4 cents a share, the company said. The San Diego pharmaceutical company's revenue surged to $20.5 million from $5.68 million a year ago.
Spirit Aerosystems Holdings (NYSE:SPR - News) was upgraded to outperform from neutral at Credit Suisse.
Sykes Enterprises Inc. (NasdaqGS:SYKE - News) reported fourth-quarter net earnings of $8.14 million, or 20 cents a share, down 5% from $8.6 million, or 22 cents a share, during the year-ago period. The Tampa, Fla.-based provider of customer management products and services posted revenue of $158.6 million vs. $128.8 million.
Topps Co. (NasdaqGS:TOPP - News) agreed to be acquired by Michael Eisner's Torante Co. and private equity firm Madison Dearborn Partners for $385.4 million, or $9.75 a share in cash. The bid for the sports-related cards maker represents a 9.4% premium to Topps' Monday closing price of $8.91. As part of the agreement, Topps can solicit better bids from third parties during the next 40 days. The deal is expected to close during the third quarter.
TransMontaigne Partners L.P. (NYSE:TLP - News) said it expects to increase its quarterly distribution to unitholders by about 7 cents to 50 cents per unit by the end of 2007. The current quarterly distribution to unitholders is 43 cents per unit. Denver-based TransMontaigne is a refined petroleum products terminaling and pipeline company
Visicu Inc. (NasdaqGM:EICU - News) was upgraded to buy from hold at Jefferies & Co.
Xilinx Inc. (NasdaqGS:XLNX - News) raised the low end of its fiscal fourth-quarter sales outlook, and now expects sales of flat to down 4%, sequentially. The San Jose logic chip maker had predicted sales to be flat to down 5%, sequentially. Xilinx also reiterated its gross margin forecast, which is expected to be about 61%.
Published By MarketWatch

Labels: AAPL, GOOG, HMA, ISE, LCUT, LDR, MCHP, MFB, MON, NEW, NVS, POZN, RSCR, RTLX, RUTH, RYI, SNTS, SPR, SYKE

Countrywide Financial (NYSE: CFC - News), Novastar (NYSE: NFI - News) and New Century (NYSE: NEW - News): While Cramer conceded subprime loans may be a problem for lenders such as NFI and NEW, "this is not 1989" he said, dismissing comparisons between the current situation and the savings and loan debacle in the late 80s. Concerning Lehman's downgrade of CFC, Cramer commented "at $35, it's hard to downgrade it." Cramer said he didn't like CEO Angelo Muzilo's insider selling; "I love Angelo, but he's hurting his own case with this insider selling. I mean, he's killing his case. This is a horrible sector. "
Coca-Cola (NYSE: KO - News), Whirlpool (NYSE: WHR - News): Cramer says Coke is "not as bad as it used to be" which is a victory in this market, and he likes the stock's 3% dividend yield. While he likes WHR, he thinks the company is too closely associated with housing, and "we're still in burn your house down mode."

Labels: CFC, Jim Cramer, Jim Cramer's Stop Trading, KO, NEW, NFI, WHR

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.
Bear Sterns Apr 165 Calls (NYSE:BSC - News). BSC'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.
Public Storage March 95 Puts (NYSE:PSA - News). PSA's PowerRating is 7.
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.
Accredited Home Lenders Apr 15 Calls (NasdaqGS:LEND - News). LEND'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.
Google Inc. Apr 380 (NasdaqGS:GOOG - News). GOOG'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.
International Game Technology (NYSE:IGT - News). IGT'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.
HSBC Holdings (NYSE:HBC - News). HBC'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.
New Century Financial (NYSE:NEW - News). NEW's PowerRating is 7.
PowerRatings are courtesy of TradingMarkets.com

Labels: BSC, GOOG, HBC, IGT, LEND, NEW, PSA, stock options

After a seesaw start to trading, in which the Dow Jones Industrial Average posted a 130 point turnaround in the first hour of trading, stocks closed out the day broadly lower. The drop followed a heavy sell-off overseas, and drove home the point that the jitters that formed last week haven't been eased. The 10-year Treasury finished unchanged, while crude oil declined sharply.
Technology stocks were pressured by a warning from Advanced Micro Devices (NYSE: AMD - News) that it would not meet its Q1 revenue forecast as its price war with Intel (Nasdaq: INTC - News) drags on. The company would not speculate on when it would return to profitability. Wireless handset maker Motorola (NYSE: MOT - News) was lower after urging shareholders to reject financier Carl Icahn's bid to join its board. On the positive side, Apple (Nasdaq: AAPL - News) moved higher on an upgrade from Prudential Securities. Prudential raised its view on Apple to "overweight" from "neutral" based on its outlook for sales of the new iPhone, a wide-screen iPod media player, and the Macintosh computer.
Smart-phone makers Palm (Nasdaq: PALM - News) and Research In Motion (Nasdaq: RIMM - News) were also lower in today's trading. Palm's stock soared on Friday on speculation that Nokia (NYSE: NOK - News) was close to buying the maker of the Treo handheld. Its shares dropped -10% today, however, after neither company would comment on the rumor. Nokia ended down less than -1%. The Wall Street Journal, meanwhile, reported Palm has hired Morgan Stanley to help it explore its options, including a possible sale. RIM shares shed -1% after the company said it will restate its financials from 2004 to the present and probably take a -$250 million charge related to erroneously reported stock-option grants.
Lenders suffered today on continuing fallout from investor concerns about the health of subprime originators. The problems were highlighted by the collapsing share price of the nation's #2 subprime lender, New Century Financial (NYSE: NEW - News), which plunged another -69% today. Part of the company's difficulties are due to a criminal probes into the trading of its securities and its accounting procedures, but the weakness of its loan portfolio was highlighted by a downgrade by JMP Securities today to "market underperform." The firm said it believed New Century was in danger of failure due to "severe liquidity pressure and ... worsening industry conditions." Since closing at $30.16 on February 7th, New Century's stock has lost roughly -85% of its value on its way towards today's close.
While New Century's problems represent the extreme of woes in the lending sector, big banks and other lenders have suffered as well. Since the February 7th date, when HSBC (NYSE: HBC - News) acknowledged weakness in its subprime portfolio by announcing that it was raising its allowance for loan losses, it and other large banks have largely been trending lower. Bank stocks that have weakened in the last three weeks include Citigroup (NYSE: C - News) and Bank of America (NYSE: BAC - News), as well as mortgage lender Countrywide Financial (NYSE: CFC - News). A further look into the subprime lending sector is available to subscribers in today's Bull Market Report.
Published By BullMarket.com Staff
In M&A news, the grocery chain operator Great Atlantic & Pacific Tea (NYSE: GAP - News), better known as A&P, announced it was buying the smaller Pathmark (Nasdaq: PTMK - News) for $677 million in cash and stock. The combined companies will operate 550 stores in the New York, New Jersey, and Philadelphia metro areas, and in Baltimore, Washington, D.C., Michigan, and Louisiana. The stocks ended 5% and 11% higher, respectively.

Labels: AAPL, AMD, BAC, C, CFC, HBC, INTC, MOT, NEW, NOK, PALM, RIMM

Advocat (NasdaqCM:AVCA - News) shares tumbled 28% Friday after the Brentwood, Tenn.-based health care services provider reported fourth-quarter net earnings of $2.28 million, or 37 cents a share, down from $12.9 million, or $1.99 a share, in the year-ago period. Revenue rose 3.8% to $55.8 million from $53.7 million. The company expects 2007 results in a range of a loss of 8 cents a share to a profit of a penny a share on revenue of $221 million to $228 million.
AFC Enterprises Inc. (NasdaqGM:AFCE - News) shares lost 6.7% after the company said Chief Executive and President Kenneth Keymer is resigning, effective March 30. The Atlanta parent of Popeyes Chicken & Biscuits said Frederick Beilstein, who had been AFC's chief financial officer from 2004 to 2005, will serve as interim CEO while the comapny seeks a permanent successor to Keymer. Beilstein is a managing partner of Equicorp Partners LLC, an Atlanta investment and advisory services firm. Keymer joined Popeyes in June 2004 as president and was promoted to AFC's CEO post in September 2005. The company also said it promoted James Lyons from chief development officer to the newly created position of chief operating officer.
AMN Healthcare Services Inc.'s (NYSE:AHS - News) shares sank 15% after the company reported fourth-quarter net income jumped 44% to $10 million, or 29 cents a share, from $6.98 million, or 21 cents a share, a year earlier. The San Diego company's revenue grew to $283.5 million from $221.4 million.
Atlantic Tele-Network (NasdaqGM:ATNI - News) shares fell 11% after the company said it doesn't expect organic growth in earnings for 2007 to be as strong as it was in 2006 although it does expect to grow consolidated profits. The company posted earnings of $23.2 million, or $1.70 a share, for the year, on revenue of $155.4 million. In 2005, the Salem, Mass., telecommunications provider earned $13.6 million, or $1.09 a share, on revenue of $102.3 million.
Avnet Inc. (NYSE:AVT - News) shares dropped 7% after the company said it plans to offer $250 million of senior notes due 2014. Phoenix-based Avnet, a distributor of electronic and computer components, said it plans to use the proceeds to repay amounts outstanding under its revolving credit facility and/or its accounts receivable securitization program.
Cleveland-Cliffs Inc. (NYSE:CLF - News) shares slipped 5.3% after the company said it would delay the filing of its annual report due to a review of the timing of revenue recognition. The review centers on cash payments for sales from the company's ore stockpiles in the fourth quarter, as the ore was not yet delivered at the request of the customer. The Cleveland iron ore pellets producer said earnings announced on Feb. 21 could be revised as a result.
Credence Systems Corp. (NasdaqGS:CMOS - News) shares tumbled 25% after the company reported a first-quarter net loss of $11,000, or breakeven on a per-share basis, compared with a net loss of $4.05 million, or 4 cents a share, during the year-ago period. The Milpitas, Calif.-based semiconductor-testing-equipment company posted revenue of $118.8 million vs. $121.8 million.
Delta Air Lines Inc. (Other OTC:DALRQ.PK - News) shares lost 6.9% after the company said its loss in January was $109 million, compared with a $300 million loss in January 2006. Delta's consolidated passenger unit revenue rose 3.7% in January over the same month in 2006. The Atlanta-based airline said its monthly operating expenses "remained essentially flat" despite a capacity increase of 2.9%. Delta is currently in Chapter 11 reorganization and is expected to exit bankruptcy in the coming months.
Focus Enhancements Inc. (NasdaqCM:FCSE - News) shares slumped 8.8% after the Campbell, Calif.-based video production company reported a fourth-quarter net loss of $3.01 million, or 4 cents a share, compared with $3.26 million, or 5 cents a share, in the year-ago period. Revenue rose to $10.3 million from $6.08 million. The company expects first-quarter revenue of $7 million to $7.8 million and 2007 revenue of $42 million to $46 million.
Fording Coal Trust (NYSE:FDG - News) shares slid 7.6% after the Calgary, Alberta-based company declared a first-quarter cash distribution of 65 Canadian cents per unit, to be paid April 16 to unitholders of record as of March 30. Fording said the distribution reflects the impact of adverse winter weather conditions on rail transportation in January. The company added that sales volume for the rest of the first quarter continues to be dependent largely on weather conditions and resulting rail and port performance. Fording also expects higher first quarter transportation costs.
Gulf Island Fabrication (NasdaqGS:GIFI - News) shares tumbled 25% after the Houma, La.-based maker of offshore drilling and production platforms reported fourth-quarter net earnings of $3.73 million, or 26 cents a share, up from $2.7 million, or 22 cents a share, in the year ago period. Revenue rose to $76 million from $41.4 million. The company also said it discovered an error regarding estimated revenue on the Tahiti contract, and determined that it had overstated both revenue and net income in the first three quarters of 2006. Gulf Island said it will include the restated results in its 2006 Form 10-K but will not amend its previous filings.
Handleman Co. (NYSE:HDL - News) shares sank 11% after the company said it has suspended its quarterly cash dividend of 8 cents a share in connection with amending its credit agreement. The Troy, Mich.-based distributor of prerecorded music, and video game hardware and software said will redirect its cash flow to reduce outstanding debt.
Inercontinental Exchange (NYSE:ICE - News) shares 8% after the company said average daily volume in the month of February for its U.K.-based ICE Futures unit rose 93% to 492,353 contracts from 255,396 contract a year earlier. The Atlanta operator of the electronic global futures and over-the-counter marketplace for trading energy commodity contracts said the average daily commissions in its over-the-counter unit rose 90% to $800,466 from $421,205 a year ago. Intercontinental Exchange also said average daily volume in February at the New York Board of Trade rose 18% to 256,447 contracts from 217,529 contracts.
KongZhong Corp.'s (NasdaqGM:KONG - News) shares lost 11% after the company said fourth-quarter net income fell 42% to $3.66 million, or 10 cents an American depositary share, from $6.26 million, or 17 cents an American depository share, a year ago. The Beijing provider of wireless services said revenue rose 7.1% to $23.7 million from $22.1 million.
Leapfrog Enterprises (NYSE:LF - News) shares sank 8.4% after the company reported a fourth-quarter loss of $46.0 million, or 73 cents a share, on sales of $182.8 million. In the same period a year earlier, the educational products developer earned $14.4 million, or 23 cents a share, on sales of $248 million. Looking ahead, the company said it expects its 2007 net loss to be "significantly less" than its 2006 loss and consistent with previous expectations.
Shares of New Century Financial Corp. (NYSE:NEW - News) slid 7.6% after the mortgage real estate investment trust said it expects to delay the filing of its annual report. The Irvine, Calif. company said late Thursday that it plans to file Form 12b-25 with the Securities and Exchange Commission, a form used as a notification of late filing. If the form is filed, the company must file the required report within fifteen calendar days for an annual report.
Noven Pharmaceuticals Inc. (NasdaqGS:NOVN - News) shares dropped 13% after the company reported fourth-quarter net earnings of $7.12 million, or 29 cents a share, up from $6.06 million, or 25 cents a share, in the year-ago period. Excluding certain items, the Miami-based company reported a profit of $7.7 million, or 31 cents a share, compared with $2.7 million, or 11 cents a share, last year. Revenue in the three months ended Dec. 31 rose to $17.2 million from $16.8 million.
OmniVision Technologies Inc. (NasdaqGS:OVTI - News) shares sank 7.2% after the company reported third-quarter net earnings of $4.13 million, or 7 cents a share, down from $29.6 million, or 53 cents a share, during the year-ago period. The Sunnyvale, Calif.-based company, which designs and markets high-performance semiconductor image sensors, posted revenue of $134.4 million vs. $137.3 million.
Transaction Systems Architects (NasdaqGS:TSAI - News) shares fell 11% after the company said an examination of its stock options dating and subsequent accounting has determined it will need to restate results for the period running from 1995-2002. The company also said it sees adjusted earnings of $1.57 to $1.86 a share for calendar 2007. It also said it currently anticipates reporting in its fiscal 2006 Form 10-K certain material internal control weaknesses in the areas of income taxes, non-routine transactions, financial reporting and the recognition of revenue as of Sept. 30.
World Fuel Services Corp. (NYSE:INT - News) shares lost 11% after the Miami-based company, which markets and sells fuel products, reported fourth-quarter net earnings of $17.3 million, or 60 cents a share, up from $12 million, or 42 cents a share, in the year-ago period. Revenue rose to $2.62 billion from $2.53 billion. Analysts polled by Thomson Financial were expecting a per-share profit of 60 cents.
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Labels: AFCE, AHS, ATNI, AVCA, AVT, CLF, CMOS, FCSE, FDG, GIFI, HDL, ICE, INT, KONG, LF, NEW, NOVN, OVTI, TSAI

Apple Inc. (NasdaqGS:AAPL - News) was upgraded to overweight from equal weight at Lehman Bros., due primarily to valuation. The stock closed Wednesday up 0.8% at $84.61, after falling 6.2% over the previous three sessions. At Wednesday's close, the stock had lost 13% since reaching an all-time high of $97.80 on Jan. 10. Analyst Harry Blount said the stock's recent pullback "provides an attractive entry point and a favorable reward vs. risk ratio in front of an anticipated product cycle in 2007." Blount also sees lowered component pricing leading to additional potential operating margin expansion and the likelihood of PC market share gains.
Cooper Tire & Rubber Co. (NYSE:CTB - News) said its fourth-quarter loss widened to $27.6 million, or 45 cents a share, from $6.85 million, or 11 cents a share, a year earlier, hurt by restructuring charges and the write-off of goodwill and intangible assets. The Findlay, Ohio, tire-maker said sales rose 29% to $739.1 million from $572.4 million in the year-ago period, helped in part by the addition of operations of Cooper Chengshan Passenger Tire Co. and Cooper Chengshan Tire Co. in China. Analysts polled by Thomson Financial expected, on average, breakeven earnings for the quarter.
DealerTrack Holdings (NasdaqGM:TRAK - News) reported fourth-quarter earnings of $5.7 million, or 14 cents a share, as revenue grew 37% to $45.7 million.
Del Monte Foods Co.'s (NYSE:DLM - News) third-quarter earnings fell 10%, due to lower sales volumes for consumer products, higher costs, and higher marketing and interest expense. The San Francisco canned food company had third-quarter earnings of $46.5 million, or 23 cents a share, compared with $51.9 million, or 26 cents a share, a year earlier. Del Monte said revenue for the quarter ended Jan. 28 rose 15% to $907.2 million from $789.6 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 22 cents a share on revenue of $943 million.
EchoStar Communications (NasdaqGS:DISH - News) said fourth-quarter net income rose to $153 million, or 35 cents a basic share, from $133 million, or 30 cents a basic share, with revenue up 17% to $2.58 billion. Analysts polled by Thomson Financial expected earnings of 32 cents a share on revenue of $2.54 billion. The operator of the DISH Network added 350,000 net new subscribers during the quarter, giving it a total of 13.1 million subscribers.
Greif Inc. (NYSE:GEF - News) reported fiscal first-quarter net earnings of $34 million, or $1.15 per Class A share, up slightly from $33.4 million, or $1.13 per Class A share, in the year-ago period. Revenue at the Delaware, Ohio-based industrial packaging company rose 29% to $750.8 million from $582.3 million.
Hana Biosciences (NasdaqGM:HNAB - News) was upgraded to buy from hold at Cantor Fitzgerald.
Leading Brands (NasdaqCM:LBIX - News) said its TrueBlue Blueberry Juice brand is now listed with The Kroger Co. (NYSE:KR - News).
Longs Drug Stores' (NYSE:LDG - News) fiscal fourth-quarter net income fell 24% to $26.9 million, or 71 cents a share, from $35.4 million, or 93 cents a share, a year ago. Revenue for the quarter ended Jan. 25 increased 8% to $1.34 billion from $1.24 billion a year ago.
ManTech International Corp. (NasdaqGS:MANT - News) reported fourth-quarter net earnings of $13.9 million, or 41 cents a share, up 33% from $10.4 million, or 31 cents a share, during the year-ago period. The company posted revenue of $290.7 million vs. $261 million.
Martha Stewart Omnimedia (NYSE:MSO - News) was upgraded to equal-weight from underweight at Morgan Stanley.
Motorola Inc. (NYSE:MOT - News) said it has been notified that certain Carl Icahn entities have filed to acquire additional shares of Motorola stock. The Schaumburg, Ill.-based telecommunications company said the notice stated that Icahn and Icahn Partners LP are each filing to acquire between $119.7 million and $500 million worth of Motorola stock, while Icahn Partners Master Fund LP and Icahn Partners Master Fund II LP are each filing to acquire more than $500 million, but less than 25% of Motorola's outstanding stock.
New Century Financial Corp. (NYSE:NEW - News) was upgraded to peer perform from underperform at Bear Stearns.
Oracle Corp. (NasdaqGS:ORCL - News) confirmed that it was buying business performance management software maker Hyperion Solutions Corp. (NasdaqGS:HYSL - News) in a deal valued at $3.3 billion, or $52 a share. The per-share bid represents a 21% premium to Hyperion's closing price of $42.84 on Wednesday. Oracle said the acquisition, which is expected to close in April, should to add 1 cent a share to fiscal 2008 earnings on an adjusted basis, and 4 cents a share to fiscal 2009 results.
Parallel Petroleum (NasdaqGM:PLLL - News) reported fourth-quarter earnings of $11.1 million, or 29 cents a share. In the same period a year earlier, the company earned $8.4 million, or 24 cents a share. The latest results include a $9 million pre-tax gain on an asset sale, and a $2.8 million gain related to the fair market value of derivative instruments and ineffective portion of hedges.
PharmaNet Development (NasdaqGS:PDGI - News) posted adjusted earnings of $6.8 million, or 36 cents a share, for the fourth quarter, and forecast an adjusted profit of $1.06 to $1.21 a share for fiscal 2007.
PRG-Schultz International (NasdaqGM:PRGX - News) reported a fourth-quarter loss of $2.9 million, or 43 cents a share, narrower than a year-ago loss of $175.8 million, or $28.32 a share.
Smith Micro Software Inc.'s (NasdaqGM:SMSI - News) fourth-quarter net income rose 63% to $3.61 million, or 14 cents a share, from $2.21 million, or 9 cents a share, a year earlier. The Aliso Viejo, Calif., developer and marketer of software products and services said revenue more than doubled to $17.2 million from $8 million a year ago.
Stats Chippac Ltd. (NasdaqGS:STTS - News) shares surged after Temasek Holdings Ltd. said it would launch a cash offer, through its subsidiary Singapore Technologies Semiconductors Ltd., for the remaining shares in Stats Chippac that it does not already own. Temasek currently holds a 35.6% stake in the semiconductor test company. Temasek, Singapore's state-owned investment company, is offering S$1.75 per share and S$17.50 per American Depositary share in cash. If the offer results in Temasek owning more than 90% of Stats Chippac, Temasek will raise the offer price to S$1.88 per share and S$18.80 per ADS.
Sun-Times Media Group (NYSE:SVN - News) said it received a favorable review on its international tax liability from representatives of a foreign taxing authority.
Todco (NYSE:THE - News) said its fourth-quarter net income roughly tripled to $64.1 million, or $1.11 a share, from $21.2 million, or 34 cents a share, a year earlier. Revenue for the quarter rose 73% to $260.1 million. Analysts polled by Thomson Financial were expecting earnings of $1.01 a share on revenue of $255 million. Todco said the improved performance was largely due to improved utilization and higher day-rates.
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Labels: AAPL, CTB, DISH, DLM, GEF, HNAB, HYSL, KR, LBIX, LDG, MANT, MOT, MSO, NEW, ORCL, PDGI, PLLL, PRGX,