Jim Cramer Blog

ABN Amro (NYSE:ABN - News) shares gained after Merrill Lynch added the firm to its Europe 1 list of most preferred stocks and reiterated its buy rating on the firm. "If the company delivers on its headline earnings per share target of 2.30 euros, we think it will have broken the earnings downgrade cycle and the EPS momentum should continue to improve. If management fails, we consider that takeover speculation around the stock will increase," the broker said.

AmSurg Corp. (NasdaqGS:AMSG - News) fourth-quarter earnings rose 13% to $9.6 million, or 31 cents a share. Excluding share-based compensation expense, the company posted fourth-quarter earnings from continuing operations of 36 cents. The Nashville ambulatory-care company's revenue rose 17% to $118.9 million.
Shares of Apple Inc. (NasdaqGS:AAPL - News) surged after Prudential Equity Group lifted its earnings estimate for the company's March quarter following a meeting with senior management last week. The firm, which also cited a recent round of channel checks with industry contacts in the Mac and iPod supply chains, boosted its view by 4 cents to 68 cents a share for the March quarter, a level it said was 7 cents ahead of Wall Street's current average estimate. "Our checks suggest a solid MarQ with seasonal iPod weakness being more than offset by stronger Mac sales and higher margins due to a favorable component cost environment," Prudential told clients. The firm maintained its neutral rating and $100 price target on the stock. Within its research note, Prudential also provided some information about the iPhone, stating that management said the product will be sold exclusively through its own stores, Web site and Cingular stores. The company expects the majority of iPhone sales to occur in its own stores, Prudential said, because of its belief that consumers will want Apple to demonstrate the device's features.
Carter's Inc.'s (NYSE:CRI - News) fourth-quarter net income increased to 45 cents a share from 28 cents in the year-earlier period. The Atlanta apparel marketer reported adjusted per-share earnings of 47 cents. Sales increased 7.7% to $377.5 million. Carter's expects adjusted per-share earnings of 14 cents for the first quarter and $1.42 to $1.49 for fiscal 2007.
Central Parking Corp. agreed to go private in a transaction that values it at $22.53 a share. The stock closed Tuesday at $21.22, up 4.2%. The Nashville, Tenn., provider of parking and transportation-related services said the consideration represents a premium of about 30.8% from its closing price on Nov. 27, just before it announced plans to evaluate its strategic options. The company is being acquired by KCPC Holdings Inc., a company formed by affiliates of Kohlberg & Co., Lubert-Adler, L.P., and Chrysalis Capital Partners, L.P. Central Parking expects the deal to close in the second calendar quarter of 2007.
Chemed Corp. (NYSE:CHE - News) reported fourth-quarter net income quadrupled to 67 cents a share from 16 cents in the year-earlier period. Revenue increased 11% to $271.9 million.
Delia's Inc. (NasdaqGM:DLIA - News) said late Tuesday Chief Financial Officer John Holowko has resigned to pursue other interests. The New York-based apparel and accessories retailer named Stephen Feldman CFO, effective Feb. 26. Feldman served as CFO of Urban Brands Inc. from 2004 to 2006.
Epiq Systems (NasdaqGS:EPIQ - News) shares surged after the Kansas City-based provider of technology products and services to the legal profession reported a fourth-quarter net loss of $2.09 million, or 11 cents a share, compared with a net loss of $4.05 million or 22 cents a share, last year. Excluding certain items, the company posted a per-share profit of 15 cents vs. 25 cents in the year-ago quarter. Total revenue rose to $46.4 million from $30 million.
Fossil (NasdaqGS:FOSL - News) was upgraded to outperform from market perform at Wachovia.
Hecla Mining (NYSE:HL - News) reported earnings of $68.6 million, or 57 cents a share, for 2006, a performance the Coeur D'Alene, Idaho gold and silver producer said exceeded its next best year by 20%. For the fourth quarter, the company earned $20.4 million, or 17 cents a share, on revenue of $70.3 million. The company also said it's agreed to sell its interest in the Hollister Development Block gold project in Nevada for $60 million.
Henry Schein Inc.'s (NasdaqGS:HSIC - News) fourth-quarter net income rose 30% to $63 million, or 70 cents a share, from $48.6 million, or 55 cents a share, a year earlier. The provider of healthcare products said Wednesday the latest quarter includes one extra week of business. The Melville, N.Y., company's fourth-quarter sales increased 12% to $1.5 billion from $1.34 billion. The company said it experienced sales growth in each of its business groups. Analysts polled by Thomson First Call expected, on average, fourth-quarter earnings of 67 cents a share and revenue of $1.57 billion. For 2007, Henry Schein expects to earn $2.51 to $2.57 a share and to distribute about 20 million doses of flu vaccine.
Jack In The Box, (NYSE:JBX - News) reported fiscal first-quarter net income rose to $1.03 a share from 70 cents in the year-earlier period. A survey of analysts by Thomson Financial produced an estimate of 81 cents. Revenue rose to $857 million from $813 million. The board authorized a buyback of 3.3 million shares during 2007. Second-quarter earnings are seen between 67 and 70 cents a share. For the fiscal year, earnings are seen between $3.27 and $3.33 a share.
JetBlue (NasdaqGS:JBLU - News) revised first quarter and 2007 forecast to incorporate material changes in its projections due to the service disruptions resulting from the Feb. 14 New York metropolitan area ice storm and related recovery period. For the first quarter, JetBlue now expects to report an operating margin between negative 4% and negative 2%, based on an assumed aircraft fuel cost per gallon of $1.89, net of hedges. The company's pre-tax margin is expected to be between negative 10% and negative 8% percent for the first quarter. The company also received an upgrade to buy from Merrill Lynch.
Jupitermedia (NasdaqGS:JUPM - News) shares rose following a published report that the company is in advanced talks to be acquired by Getty Images Inc. . A report in the New York Post, citing unnamed sources, said Getty could offer more than $11 a share for Jupitermedia in a deal worth more than $450 million including debt. Darien Conn.-based Jupitermedia is a provider of images, online information and research.
LoJack Corp. (NasdaqGS:LOJN - News) said it expects net income growth of 27% to 30% for fiscal 2007 with diluted earnings per share projected to increase 30% to 33%. Revenue is anticipated to increase between 9% and 11%. The Westwood, Mass., vehicle theft protection technology company also posted fourth-quarter net income of $2.9 million, or 15 cents a share, as revenue rose 10% to $51.1 million.
Medco Health Solutions Inc. (NYSE:MHS - News) reported a 29% rise in fourth-quarter profit to $228.8 million, or 77 cents a share, raised its earnings estimate for 2007 and lifted its share buyback by $3 billion. Excluding amortization charges, the pharmacy-benefits manager earned 86 cents a share. Revenue rose 1.2% to $10.93 billion. Analysts polled by Thomson Financial had expected earnings of 79 cents a share on revenue of $11.09 billion.
Netbank (NasdaqGM:NTBK - News) said it swung to a fourth-quarter loss of $86.3 million, or $1.86 a share. The Atlanta bank, reporting preliminary results as Porter Keadle Moore was recently hired to be its auditor, said increased provisions on its decision to close the non-conforming mortgage channel and $21.3 million in restructuring costs hurt results. It expects its first-quarter loss at the bottom end of an analyst range from 8 cents to 24 cents a loss.
Nice Systems Ltd., (NasdaqGS:NICE - News) reported fourth-quarter net income fell 38% on 29% higher revenue and raised its earnings estimates for the year. On an adjusted basis, Nice earned 37 cents against 28 cents. Adjusted revenue rose 34% to $120.4 million. A survey of analysts by Thomson Financial produced consensus estimates of 34 cents of profit and $118 million of revenue.
Odyssey Healthcare Inc. (NasdaqGS:ODSY - News) swung to fourth-quarter net income of 5 cents a share from a loss of 5 cents in the year-earlier period. The Dallas hospice-care company reported per-share profit from continuing operations, excluding items, of 7 cents. Revenue fell 6% to $96.9 million.
Orbital Sciences Corp. (NYSE:ORB - News)fourth-quarter net income per share was flat at 12 cents. On an adjusted basis, the Dulles, Va., company earned 20 cents a share in the latest quarter. Revenue reached $215.8 million, up 8%, reflecting strength in the satellites and space systems business. Analysts, on average, were looking for Orbital Sciences to earn 6 cents a share on revenue of $211 million, according to estimates compiled by Thomson Financial.
Owens Corning (NYSE:OC - News) reported earnings of $7.7 billion for the three months ended Dec. 31, up from $338 million in the year-ago equivalent period. The latest figures include gains related to the settlement of certain asbestos liabilities and fresh-start accounting adjustments stemming from the company's emergence from Chapter 11 bankruptcy protection. On an adjusted basis, excluding items, the company posted earnings from operations of $143 million for the three-month period, which it designated as its fiscal fourth quarter, down 4% from $149 million in last year's period. Owens Corning, which is based in Toledo, Ohio, disclosed plans to evaluate strategic options for siding solutions business and the Fabwel unit of its composites business. This decision follows the company's announcement late Tuesday of a joint venture with Saint-Gobain to combine their reinforcements and composites businesses. The joint venture is to be 60% owned by Owens and 40% owned by Saint-Gobain with Owens Corning holding an option to purchase Saint-Gobain's minority stake. That deal is expected to close in mid-2007. Also, Owens Corning said its board has approved the buyback of up to 5% of its outstanding common stock. For 2007, the company said it expects the continued slowdown in U.S. housing starts to be reflected in its first-quarter results.

Published By MarketWatch

The buyers came in today because rates are down and there is talk about a rate cut. Cramer dedicated this episode towards IPOs coming to the market this week

Kellogg Brown and Root (KBR)- This is an engineering and construction company. This stock is surrounded by a dark cloud of negativity and it's even worse because the democrats took the House. This is the reason why this stock is being priced so low. The street believes that this company will loose a lot of middle eastern business. This stock is being priced at a 20% discount in relation to any of the other engineering firms. Cramer sees no reason why this stock should trade at such a discount in relation to the group. The only problem is that this stock is so oversubscribed. Cramer thinks the best way to get into KBR is buying its parent Halliburton (HAL). HAL has the lowest multiple of any stock in the oil service group.

NYMEX (NMX) -This is the true big daddy of the week. This is also very oversubscribed. NYMEX is the one Cramer wants you in and it deserves the additional shares that are being offered. Cramer sees no reason why this stock will not be as successful as the NYSE Group. (NYX). Cramer says you can ride NYX from the mid $90s all the way to the $200s. NYMEX's Their profit doubled and revenue rose 70% last year alone. Buy this stock with limit orders. If it opens up as much as $25 you should be buying this stock.

Hertz (HTZ)- Cramer does not want you in this. He wouldn't touch this stock with a 10 ft. pole. 62% of what was raised in the IPO was used to repay a debt. Good Start.

Bullish: AMGN, HOG, NICE, APKT,

Bearish: BGC, PDLI, ASEI, JBLU, NDE