Jim Cramer Blog

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Oxford Industries (NYSE:OXM - News) and Robbins & Myers (NYSE:RBN - News) both report earnings after the bell on Tuesday, so watch for heightened price action and volume ahead of the close. OXM's PowerRating is 6, and RBN's PowerRating is 4.
Subprime lender New Century Financial (Nasdaq:NEWC - News) filed for bankruptcy today; NEWC's creditors include Goldman Sachs (NYSE:GS - News) and Citigroup (NYSE:C - News). NEWC does not have a PowerRating due to price restraints, GS's PowerRating is 6, and C's PowerRating is 4.
Apple (NasdaqGS:AAPL - News) and EMI announced plans to release music without the standard anti-piracy software. AAPL's PowerRating is 6.
Xerox (NYSE:XRX - News) closed its takeover deal with Global Imaging Systems (NasdaqGS:GISX - News). XRX will buy GISX for $1.5 billion. XRX's PowerRating is 6, and GISX's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AAPL, C, GISX, GS, Hot Stocks, NEWC, OXM, RBN, XRX

Sub-prime lender New Century Financial (NEWC 1.41) could file for bankruptcy as early as this week, the New York Times reported. The news comes amid concerns about the battered housing sector, allegations of lending fraud, and a widening credit crunch, as a record number of loans are headed into foreclosure.
Many sub-prime lenders are now facing bankruptcy as banks and investors respond to an increase in the number of delinquencies and defaults by ordering lenders to buy back loans. The recent problems in the sub-prime lending market have exacerbated concerns about soft housing market conditions and home builders' diminishing prospects. Some analysts believe tighter lending standards could eliminate an entire group of buyers from the available pool of home buyers, which would add to the current supply glut and further weigh on new home demand.
New Century, which stopped accepting new loan applications earlier this month, is still seeking financing that would allow it to reorganize or sell itself through a pre-packaged bankruptcy, rather than be forced to liquidate itself, according to the New York Times. It is still hoping to find a buyer for the company. However, the chances for such a deal are slim, as banks have already started to foreclose on their credit lines.
Unfortunately, if New Century does file for bankruptcy, shareholders, who have already seen their holdings decline sharply in recent months, would recover little of their investment. Shares of the company have dropped from $31.59 at the end of 2006 to $1.41 on Tuesday.
--Richard Jahnke, Briefing.com

Labels: New Century Financial, NEWC

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