Jim Cramer Blog

Dick's Sporting Goods (NYSE:DKS) experienced its biggest drop since the bear market bottom in October 2002 after its annual profit forecast was less than analysts expected. The Short Term PowerRating for DKS is 7.
Evergreen Solar (NasdaqGM:ESLR), the solar power panel parts maker, ended the day up by more than 10% on news of a new $750 million contract. The Short Term PowerRating for ESLR is 3.
The biggest producer of electricity from natural gas, Calpine (NYSE:CPN) was up by more than 8% on the day on news that NRG Energy (NYSE:NRG) was making an unsolicited bid for the company. The Short Term PowerRating for NRG is 5.
BCE, Inc. (NYSE:BCE) was down by 12% as bondholders won the right to challenge a planned leveraged buyout of the company. The Short Term PowerRating for BCE is 5.
Gap Inc. (NYSE:GPS) announced earnings on Thursday that beat analyst estimates by three cents. The Short Term PowerRating for GPS is 5.
Ford Motor Company (NYSE:F) admitted that it would likely break even in 2009, later than analysts had expected. The stock was down more than 8% on the news. The Short Term PowerRating for F is 8.

Labels: BCE, CPN, DKS, ESLR, F, GPS, Hot Stocks, NRG

On Monday's show, Cramer started with his reasons that the market has not hit a bottom yet. He does not think that the Fed will continue to cut rates, and that mortgages and weak consumers will hurt stocks. Cramer thinks this is a time to preserve capital, not go on the offensive in this market.
Cramer then went to the phone lines. The first caller asked whether options expiration will cause the market to fall further, and Cramer said that he thinks tomorrow is the time to pick up some of the good stocks that have been hit the hardest over the past few days. Second caller asked Cramer how a weak dollar helps the economy, and what companies are in the best position to take advantage of it? Cramer said that he thinks the dollar is about to bottom, so he doesn't want anyone to try and profit off of a weak dollar now. The next caller asked if now is the time to buy a stock like Sandridge (SD), and Cramer said that he wants you to buy high quality oil stocks that pay high dividends before looking at a stock like that one.
Cramer then gave his pick for a stock that could give a cautious portfolio a boost when the market turns around and that stock was Apache (APA). Cramer has been pushing this stock since July, and he is still behind it because it can maintain its earning multiple. The CEO of the company was on the show to talk about the company's plans for the future, and his opinion on the price of oil.
Cramer came back fromt he lightning round and reviewed a duel between two analysts over Wyeth (WYE). One analyst upgraded the stock, and another analyst downgraded it at the same time. Cramer agrees with the analyst who upgraded the stock since he is bullish at this time. Cramer likes WYE because it is a defensive stock, people will want to own it if a recession hits, and they are buying back stock.
Mad Mail: The first email asked about E*Trade (ETFC), and Cramer said he wants people to stay away from it. The next email asked about Foster Wheeler (FWLT), and Cramer said that although it is a great company, the stock is losing momentum in this market. The next email asked about Cramer's Dow prediction, and he said that his prediction was based on the Fed cutting rates further, which they seem unwilling to do. The next email asked about NRG's (NRG) storage of spent fuel rods, and Cramer said that he should have asked the CEO that question when he was on the show. The last emailer asked about ways to profit from the reduction of the crack spread as oil prices decline, and Cramer said he thinks the best play on that idea is Marathon (MRO).
Sudden Death. In sudden death Cramer was bullish on Sirius (SIRI), Nordstrom (JWN), and Aecom (ACM). Cramer was bearish on Acadia Pharmaceuticals (ACAD).

Labels: APA, ETFC, FWLT, Jim Cramer, Mad Money, Mad MOney Recap, NRG, WYE

Wednesday's show began with Cramer discussing who he thinks is to blame for the 361 point drop on the Dow. His answers were Supermodel Gisele Bundchen and New York Attorney General Andrew Cuomo. Gisele recently announced that she doesn't want to be paid in dollars any more since it is weak, and then a Chinese official followed up with a statement this morning that they might sell some of their dollar reserves. Cramer doesn't think that this announcement from China is true. Cuomo then announced that he will probe Washington Mutual to see if they forced appraisers to inflate their estimates so they could make loans. Cramer believes that this will scare mortgage lenders and make them require higher down payments, which is the last thing the lenders need.

Cramer then went to the phonelines. The first caller asked about hedging the dollar by investing in international mutual funds, and Cramer said he thinks 20% of your portfolio should be foreign. The second caller asked about Nasdaq (NADQ), and Cramer thinks that CME (CME) and NYSE-Euronext (NYX) are better plays on the increased volatility in the market, but said that he likes Nasdaq as well.

The CEO of NRG Energy (NRG) was on the show since Cramer thinks that nuclear energy is the cleanest way to generate electricity. They talked about the company’s plans for nuclear plants, as well as their other coal based plants.

Cramer came back from the lightning round and talked with Herbalife (HLF) CEO Michael Johnson about the outstanding quarter they just reported as well as allegations of unethical behavior at the company. Johnson said that they do not believe they are guilty of any wrongdoing, and that they will investigate and correct any issues they find. He then talked about their international growth and new sales plans they have.

Cramer then did a follow up on Nastech Pharmaceutical (NSTK), a recommendation he made last week. The stock was down $5 today because Proctor & Gamble (PG) terminated an agreement with them, and Cramer had the CEO, Stephen Quay, on the show to explain why people should not sell the stock. Quay said that they will do a new trial soon and expect to find a new partner after that. Cramer said that you should hold onto it now if you already bought it, but said he will take the blame for a screw-up on this one.

Labels: CME, CNBC, HLF, Jim Cramer, Mad Money, Mad MOney Recap, nadq, NRG, NYX

Dynegy (NYSE: DYN - News), Mirant (NYSE: MIR - News), NRG (NYSE: NRG - News), Foster Wheeler (NasdaqGS: FWLT): Cramer predicts DYN will go to $13 from $10 and comments CEO Bruce Williamson is "fabulous" and doesn't get enough credit. Although DYN has doubled, people are still not paying attention. He also likes FWLT as a great way to play nuclear and notes stocks like DYN and FWLT are no longer hostages to oil, which is declining while these names are on the rise. News that Mirant is for sale will bring up NRG, which is also doing well on a positive note from Jeffries, notes Cramer.
D.R. Horton (NYSE: DHI - News) and Pulte (NYSE: PHM - News): Cramer praised Ivy Zelman of Credit Suisse for her downgrade of DHI and PHM and called her report "eye opening." In brief, her research indicated DHI and PHM "could go much lower, and book value seems to mean nothing." Zelman predicts a 15%-20% decline for homebuilders who haven't sufficiently reduced their land holdings.
Published by SeekingAlpha

Labels: DHI, DYN, FWLT, Jim Cramer, MIR, NRG, PHM, Stop Trading