Jim Cramer Blog

Here are 7 stocks for traders for Friday from TradingMarkets.com:
National Semiconductor (NYSE:NSM - News) beat earnings expectations, announcing $0.33 EPS over a consensus of $0.31 EPS. NSM's PowerRating (for Traders) is 4.
Cascade (NYSE:CAE - News) missed earnings on Thursday afternoon, reporting $1.00 EPS versus $1.08 EPS. CAE's PowerRating (for Traders) is 3.
Herley Industries (NasdaqGM:HRLY - News) also missed expectations, announcing $0.14 EPS versus $0.18 EPS. HRLY does not have a PowerRating (for Traders) due to volume constraints.
Kellwood (NYSE:KWD - News) reports earnings on Friday morning before the market opens, with traders looking for $0.14 EPS. KWD's PowerRating (for Traders) is 4.
American International Group (NYSE:AIG - News) rallied over 4% on Thursday, after a Goldman Sachs announcement that potential housing market losses are "manageable." AIG's PowerRating (for Traders) is 4.
Analogic (NasdaqGS:ALOG - News) rallied 15% on Thursday, after announcing earnings of $0.53 EPS versus expectations of only $0.36 EPS. ALOG's PowerRating (for Traders) is 4.
Tribune (NYSE:TRB - News) rallied over 7% on Thursday after announcing the company will need to borrow $500 million less than earlier estimated, to help finance its going-private transaction. TRB's PowerRating (for Traders) is 5.

Labels: AIG, ALOG, CAE, Hot Stocks, HRLY, KWD, NSM, TRB

Stocks were slammed on the final trading day of the week as poor employment data sent bulls looking for the exits. At the close, The Dow, Nasdaq, and S&P 500 all dropped over -1.5%. Gold, meanwhile, continued to advance in price, with the commodity ending the session up $5.10 to finish at $709.70.
Investors woke up to a job shock, as the Labor Department reported that the economy unexpectedly lost jobs for the first time in nearly four years last month. In all, employers cut -4,000 workers, compared with a revised gain of 68,000 in July. The unemployment rate held steady at 4.6%. Economists got it all wrong as they expected the economy to produce 100,000 jobs in the month. Breaking down jobs in sectors, factory payrolls slid by -46,000, while builders' payrolls fell by -22,000. Even the government sector reported payrolls down -28,000.
In housing sector news, Hovnanian (NYSE: HOV - News) reported a quarterly loss due to land impairment charges related to unprofitable inventory. For its third quarter, the builder reported a loss of -$80.5 million, or -$1.27 a share, compared with a year ago profit of $74.4 million, or $1.15 a share. Sales plunged by -27% to $1.1 billion, as the housing market has continued to worsen. New contracts also fell by -24%. Shares fell 7.1%. Elsewhere in the housing spotlight, Beazer Homes (NYSE: BZH - News) shares sank 13% after the company received a notice of default tied to its senior notes. The company responded by saying the letter was "invalid and without merit."
In other corporate news, motorcycle maker Harley Davidson (NYSE: HOG - News) saw investors flee the name after it announced that it is cutting production in the third quarter following last month's poor sales for its "hogs." The company expects to ship 86,000-88,000 in the third quarter, down from 91,000-95,000 previously forecast. Due to the lower sales, it now sees full-year earnings coming in at $3.69-3.77, analysts were expecting full-year earnings of $4.12. The stock dropped 9.2%.
Office supply retailer Office Depot (NYSE: ODP - News) warned investors that its third and fourth quarters would likely fall below year-ago levels as small business customers have cut back on spending. Citing continued softness in the housing market, management noted that EPS would likely fall by double digits in the third quarter. Investors were unsympathetic, sending the shares reeling 9.8%.
Chip company National Semiconductor (NYSE: NSM - News) reported that net income in its latest quarter plunged -29% to $58.6 million, or 30 cents a share, compared to a year ago profit of $12.01 million, or 35 cents. Sales totaled $471.5 million. While its net dropped, it still managed to beat analysts' estimates by a nickel. The company said that looking ahead it sees sales increasing 4-7% sequentially.
In deal news, shareholders of TXU (NYSE: TXU - News) agreed to sell the company for $32 billion to private equity players led by Kohlberg, Kravis & Roberts and TPG. 95% of the votes were in favor of the deal. The company noted that in order for the deal to close, it must gain the approval of regulators. TXU is the largest ever buyout.
By The BullMarket.com Staff

Labels: BZH, HOG, HOV, NSM, ODP, TXU

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Cooper (NYSE:COO - News) beat earnings on Thursday afternoon, announcing $0.76 EPS versus expectations of $0.69. COO's PowerRating (for Traders) is 4.

National Semiconductor (NYSE:NSM - News) beat expectations Thursday, with $0.30 EPS over $0.25 EPS. NSM's PowerRating (for Traders) is 5.
Merck (NYSE:MRK - News) gained around 2% after announcing that the Supreme Court has reversed an unfavorable ruling, which would have granted health organizations and insurers the right to consolidate lawsuits against the pharmaceutical giant. MRK's PowerRating (for Traders) is 5.
Apple (NasdaqGS:AAPL - News) announced that its 8GB iPhone will drop in price from $599 to $399, prompting investors to question overall consumer demand for the product. AAPL's PowerRating (for Traders) is 5.
Major retailers reported better-than-expected sales on Thursday. Wal-Mart (NYSE:WMT - News) reported a 2.5% rise in same store sales from last year, while Target (NYSE:TGT - News) same store sales were up 6.1%. WMT's PowerRating (for Traders) is 5, and TGT's PowerRating (for Traders) is 6.
Despite reporting a 39% increase in Q4 profit, Campbell Soup (NYSE:CPB - News) fell over 3% on Thursday. CPB's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AAPL, COO, CPB, Hot Stocks, MRK, NSM, TGT, WMT

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 Underpriced 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 Stearns Companies Inc. Sep 140.0 Calls (NYSE:BSC - News). BSC's PowerRating is 5.
Most Underpriced 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.
Citigroup Inc. Sep 47.5 Puts (NYSE:C - News). C's PowerRating is 5.
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.
Priceline.com Inc. Aug 65.0 Calls (NasdaqGS:PCLN - News). PCLN'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.
Countrywide Financial Corp. Oct 20.0 Puts FC. CFC's PowerRating is .
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.
Patterson-UTI Energy Inc. (NasdaqGS:PTEN - News). PTEN'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.
National Semiconductor Corp. (NYSE:NSM - News). NSM's PowerRating is 7.
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.
CBS Corp. BS. CBS' PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: BSC, C, NSM, PCLN, PTEN, stock options

CEO Interview: Indra Nooyi, PepsiCo (NYSE: PEP - News)
"The stocks are saying there's going to be a slowdown, so it would be wise for you to prepare for it," said Cramer, and while he isn't urging people to sell all their cyclicals yet, he suggests its time to take some profits. He invited Pepsi CEO and chairman Indra Nooyi onto the show to discuss the company's great performance which she said was due to the company's diverse portfolio and stellar management. Nooyi added, in terms of financial resources, Pepsi is not constrained, and in terms of people-resources, North America is growing and the company's international business is "exploding." Cramer mentioned a Wall Street Journal story that Nestle turned down a merger with Pepsi because it considers the latter company junk-food laden. Nooyi pointed out Pepsi's expansion into non-carbonated beverages and healthy snacks and its production process which conserves energy and water. Cramer remarked Pepsi delivered better than expected numbers and is a the right stock to buy.
Remember the AlaMobile: Texas Instruments (NYSE: TXN - News), Nokia (NYSE: NOK - News), Ericsson (NasdaqGS: ERIC - News), Sony (NYSE: SNE - News), Analog Devices (NYSE: ADI - News), National Semiconductor (NYSE: NSM - News)
With back -to-school tech gadgets in production, Cramer discussed TXN which was hit by a selloff; "I don't care about the quarter," he said. "I care about the future, because that is where we're going to make our money." He would use the decline as a buying opportunity, and thinks its mobile business will energize TXN. He added NOK, ERIC, SNE, ADI and NSM are also doing well. Returning to TXN, Cramer predicts the next quarter will be excellent and adds the company has a "massive rest-of-world" exposure.

Go Cisco (NasdaqGS: CSCO - News)! with Juniper Networks (NasdaqGS: JNPR - News), and Ciena (NasdaqGS: CIEN - News)
Cramer discussed a Financial Times interview during which Cisco CEO John Chambers says he's more enthusiastic about the company than he has been in a decade and the internet is entering a second phase which should last 10 to 15 years. Since Cisco provides the "backbone" for many types of communcation, Cramer doubts Chambers is just trying to sell his company, and notes Cisco rivals are delivering but have less upside than Cisco. Cramer noted Cisco is not expensive, is below its 52-week high, has $22 billion in cash and is protected from the ailing economy with its big international exposure.
Mad Mail: Six Flags (NYSE: SIX - News), Men's Wearhouse (NYSE: MW - News)
Cramer told one viewer not to touch financial stocks. He said he doesn't like SIX's balance sheet, and added the stock will do badly if the weather is not good. He told another mailer he doesn't like Men's Warehouse.
Published By SeekingAlpha

Labels: ADI, CIEN, CSCO, ERIC, Jim Cramer, JNPR, Mad Money, MW, NOK, NSM, PEP, SIX, SNE, TXN

The Dow, S&P 500, and Nasdaq all ended the week on a high note despite consumer confidence troubles. The latest numbers were released today with the statistic at a 10-month low. Meanwhile, exports climbed to an all-time high as the trade deficit dropped to $58.5 billion. Oil prices were down over -$2 as concerns from the cyclone subsided and on expectations that U.S. supplies would increase for the sixth week in a row. The dollar was stronger this week as well, which buffeted against inflation concerns.
Shares of Tyco (NYSE: TYC) were up 3.6% today on more news of its three-way breakup. The company will separate its healthcare and electronics companies into their own public entities. Shareholders as of June 19th will receive one share of each of the new companies for every four shares of Tyco that they own, and then a reverse-split will take place condensing the four shares into one share of Tyco. Tyco will spend approximately $1.6 billion in the separation, which is to take place on June 29th.
McDonald's (NYSE: MCD) announced that its comparable-store sales for the month of May increased at its highest rate in three years, as sales climbed 8.7%, well clear of the 5% that analysts had predicted. The company credits new smaller sandwiches gaining popularity in France, as well as its tie-in with Shrek the Third in the U.S. Domestically, same-store sales were up 7.4%. The stock rose 2.4% on the news.
National Semiconductor (NYSE: NSM) released fourth-quarter earnings today, and the stock jumped 14.7% on the good news. Earnings were down from a year ago, from 34 cents a share to 28 cents a share, but still beat analyst expectations by 5 cents a share. The company also announced that its board had approved a $1.5 billion share buyback program.
Vail Resorts (NYSE: MTN) also got a boost from its earnings announcement for its fiscal third quarter ended April 30th. The company earned $1.99 per share, up from $1.75 per share a year ago, and in line with expectations. Revenue from its real estate unit jumped from $7.1 million to $17.1 million this past quarter.
Cell phone maker Qualcomm (Nasdaq: QCOM) received a ban on importing any new phones while its chip design infringes on a patent owned by Broadcom (Nasdaq: BRCM) in a ruling by the U.S. International Trade Commission. However, most analysts do not think that this will have much impact in the near term as it allows continued sales of models already being shipped to the U.S. Some feel that it could cause a limit to the competition for Apple's (Nasdaq: AAPL) iPhone.

Labels: AAPL, BRCM, MCD, MTN, NSM, QCOM, TYC

Symbol
Name
Last Trade
Change
Volume
Related Info
LLNW
LIMELIGHT NETWORKS,
22.18 4:00PM ET
7.18 (47.87%)
12,220,154

HOTJ
HOUSE OF TAYLR JEWLR
1.59 3:59PM ET
0.39 (32.50%)
127,316
INFN
INFINERA CORPORATION
25.16 4:00PM ET
5.45 (27.68%)
4,190,363

XWG
WIRELESS XCESSORIES
3.7400 3:59PM ET
0.6700 (21.82%)
502,400

TCHCZ
21ST CENTURY HLDG WT
2.96 3:46PM ET
0.45 (17.93%)
500

SCOX
SCO GRP INC (THE)
1.42 3:59PM ET
0.19 (15.45%)
328,774

NSM
NATL SEMICONDUCTOR
29.58 4:00PM ET
3.79 (14.70%)
30,340,461

UWN
NEVADA GOLD &CASINO
2.15 3:59PM ET
0.24 (12.57%)
165,100

TELK
TELIK INC
4.05 4:00PM ET
0.45 (12.50%)
3,327,309
CAE
CASCADE CP
73.73 4:01PM ET
8.03 (12.22%)
708,822


LBIX
LEADING BRANDS
4.5900 3:59PM ET
0.4900 (11.95%)
791,578
QPSA
QUEPASA CORPORATION
5.32 3:58PM ET
0.56 (11.76%)
122,396

FORD
FORWARD INDS INC
3.62 3:59PM ET
0.38 (11.73%)
521,533

HRLY
HERLEY INDS INC
17.82 4:00PM ET
1.81 (11.31%)
477,739

CRDC
CARDICA, INC.
5.58 3:58PM ET
0.56 (11.16%)
31,370

SPTN
SPARTAN STORES INC
29.65 4:00PM ET
2.91 (10.88%)
940,542
ASTIZ
ASCENT SOLAR TECH
2.15 3:57PM ET
0.20 (10.26%)
40,720

CLN
CELSION CORP
6.60 3:59PM ET
0.60 (10.00%)
40,400

TNC
TENNANT CO
36.17 4:03PM ET
3.27 (9.94%)
423,400

EVOL
EVOLVING SYSTEMS INC
2.2068 3:59PM ET
0.1968 (9.79%)
437,315

Labels: ASTIZ, CAE, CLN, CRDC, EVOL, Ford, HOTJ, HRLY, INFN, LBIX, LLNW, NSM, QPSA, SCOX, SPTN, TCHCZ, TELK, TNC, UWN, XWG

Stocks partially rebounded from a spate of Friday afternoon profit taking to finish mixed. A government employment report that came in as expected and a drop in the U.S. trade deficit helped give traders some confidence in the economy going forward. The 10-year Treasury note and crude oil futures both dropped sharply. The yield on the 10-year note rose to 4.59%, while crude slipped to just above $60 a barrel.
The Labor Department reported the unemployment rate fell from 4.6% to 4.5% in February as U.S. employers added 97,000 non-farm workers. A drop in construction jobs was offset by gains in the services sector. Average hourly earnings rose 6 cents to $17.16. The employment numbers were in line with expectations. The Commerce Department, meanwhile, reported that the January U.S. trade deficit narrowed by -3.8% to $59.1 billion.
In today's market action, Yahoo (Nasdaq: YHOO - News) dropped -5% on a report in The Wall Street Journal that the company might lose a long-standing contract with AT&T (NYSE: T - News). Subscribers can read our take on the Journal article and the market's reaction to it in today's issue. National Semiconductor (NYSE: NSM - News) was one of the day's better performers after it raised its full-year guidance, despite the fact that it reported a -45% drop in earnings. The maker of analog chips cited improved bookings for its increased outlook. For the quarter ended February 25th, the company reported profits of $71.5 million, or 22 cents a share, down from $130 million, or 37 cents a share, a year earlier. Revenue dropped to $431 million, well below last year's $548 million.
In other earnings-related news, homebuilder Hovnanian Enterprises (NYSE: HOV - News) dropped -4% after the company reported a FQ1 loss and cut its full fiscal year target. The company lost -$57 million, or -91 cents per share, for the quarter ended January 31st. The loss was less than the company had forecast, but it nonetheless reduced its full-year earnings target to $1.10-1.50 per share from earlier guidance of $1.50-2.00 a share.
Amgen (Nasdaq: AMGN - News) slid -2% to a 52-week low after the Food & Drug Administration announced new label warnings for the company's top-selling anemia treatments Arenesp and Epogen. The new warnings will note an increased risk of death, heart trauma, blood clots, and tumor growth when used at higher-than-recommended doses. The warning also applies to Procrit from Johnson & Johnson (NYSE: JNJ - News), but that stock finished modestly higher.
Shares of wireless Internet provider Clearwire (Nasdaq: CLWR - News) sank -10% on their second day of trading following its IPO Wednesday. Intel (Nasdaq: INTC - News) and Motorola (NYSE: MOT - News), which are significant investors in the company founded by cable mogul Craig McCaw, were also slightly lower today.
In the transportation sector, package-delivery giant FedEx (NYSE: FDX - News) was upgraded to a "buy" by Stifel Nicolaus. The firm also cut its rating on C.H. Robinson (Nasdaq: CHRW - News) to "sell." Robinson, a logistics company that coordinates global shipping through other freight-haulers, lost -5% today. Stifel Nicolaus said the stock was overvalued and that the company faces challenges to maintaining margins and growing its business.
By the BullMarket.com Staff

Labels: AMGN, CHRW, CLWR, FDX, HOV, INTC, JNJ, MOT, NSM, T, YHOO

Stocks opened higher this morning but quickly fell into a funk on their way to a mixed close. There seemed to be little in the way of a strong catalyst to encourage the bulls to remain in the market. Oil prices put some pressure on stocks, rising for the second-consecutive day to push close to the $61 a barrel mark. The 10-year Treasury note was also weak today, pushing the yield up to 4.73%.

Makers of analog semiconductor chips were one of the day's most attractive sectors, spurred higher by a strong fiscal first-quarter profit report and encouraging guidance from Analog Devices (ADI, $xxxxx). The company, which makes chips used in cell phones, medical devices, and flat-screen TVs, reported a 26% increase in profits to $153 million, or 44 cents a share, up from $121 million, or 32 cents a share, in the year-ago period. The company said orders improved in the last month and it forecasted a strong current quarter. The results and a Citigroup upgrade to "buy" helped the stock climb 10%.
Other analog chipmakers moved higher on Analog Devices' profit report, including National Semiconductor (NYSE: NSM - News), up 6%; Maxim Integrated Products (Nasdaq: MXIM - News), which added 8%; and Linear Technology (Nasdaq: LLTC - News), up 10%. The strong showing helped the Philadelphia Semiconductor Index push 3% higher.
In other tech news, Apple (Nasdaq: AAPL - News) and Cisco Systems (Nasdaq: CSCO - News) agreed to share the iPhone name and to work together on "opportunities for interoperability in the areas of security, and consumer and enterprise communications." Neither company would elaborate on what that meant. Apple was sued by Cisco after the iPod maker introduced its iPhone smartphone product. Cisco said it owned the iPhone trademark and was already using it for a VoIP handheld phone. Both products will remain on the market under the iPhone brand name.
Luxury homebuilder Toll Brothers (NYSE: TOL - News) announced sharply lower fiscal Q1 earnings. The company's profit slumped -67%, driven lower by writedowns and other expenses as the slump in new home sales continued to hurt the builder's results. Toll Brothers said its profit declined to $54 million, or 33 cents per share, from $164 million, or 98 cents per share, a year ago. The results were better than the 29 cents EPS Wall Street expected, but the stock ended down -4%. Other companies in the new-home market slid on Toll Brother's report. Lennar (NYSE: LEN - News) was off -2%, while D.R. Horton (NYSE: DHI - News) and Centex (NYSE: CTX - News) both dropped -3%.
Retailer J.C. Penney (NYSE: JCP - News) slid -3% after it reported a weaker-than-expected fiscal Q1 and warned that it was seeing soft results this month. Penney's profit for the quarter ended February 3rd fell to $477 million, or $2.09 per share, from $551 million, or $2.34 per share, last year. Although February sales have been weak, the company predicted an upturn when it introduces its spring fashions.
In merger news, natural and organic foods supermarket operator Whole Foods Market (Nasdaq: WFMI - News) announced late yesterday that it would buy its smaller rival Wild Oats Markets (Nasdaq: OATS - News) for $535 million. Investors applauded the news, pushing shares of Whole Foods up 13%, while Wild Oats added 17%.

Published By Bullmarket.com

Labels: AAPL, CSCO, CTX, DHI, JCP, LEN, LLTC, MXIM, NSM, OATS, TOL, WFMI

Agnico-Eagle Mines Ltd. (NYSE:AEM - News) reported fourth-quarter earnings more than doubled to 35 cents a share from 13 cents in the year-earlier period. The Toronto gold producer's revenue nearly doubled to $138.4 million from $71.4 million.

Ambassadors International (NasdaqGM:AMIE - News) shares climbed after Carnival Corp. (NYSE:CUK - News) said it signed a definitive agreement to sell its Windstar Cruises brand to Ambassadors $100 million. Carnival said the purchase price includes $40 million cash and the assumption of liabilities, and Carnival will provide mortgage financing for the remaining $60 million. Windstar Cruises operates three vessels and is a unit of Carnival's Holland America Line subsidiary.
Analog Devices Inc. (NYSE:ADI - News) fiscal first-quarter profit rose 26% on 6% higher sales. It sold more microchips used in industrial equipment and consumer electronics.
Arrow Electronics (NYSE:ARW - News) reported fourth-quarter earnings of $128.1 million, or $1.04 a share, up from a year-ago profit of $74.4 million, or 60 cents a share. Excluding certain items, such as restructuring charges and a gain from a tax settlement, the Melville, N.Y., electronics components distributor said it earned $92.2 million, or 75 cents a share, in the latest quarter. Sales rose in the latest three months to $3.49 billion from $2.96 billion in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 73 cents a share in the December period. Looking ahead, Arrow sees earnings of 72 to 76 cents a share in the first quarter on sales ranging from $3.525 billion to $3.725 billion. Wall Street's current consensus estimate is for earnings of 74 cents a share in the March period.
Catalina Marketing Corp. (NYSE:POS - News) said it received an unsolicited proposal from ValueAct Capital Master Fund LP to acquire by merger all of the Catalina stock it doesn't already own, for $32 a share. Jeffrey Ubben, a Catalina director since May 2006, is principal owner of ValueAct, according to a statement. Catalina said it advised ValueAct that its proposal is under consideration by the company's board of directors.
Ensco International Inc.'s (NYSE:ESV - News) fourth-quarter net income rose to $210.4 million, or $1.39 a share, from $103.6 million, or 67 cents a share, a year ago. Earnings from continuing operations for the quarter were $1.36 a share, up from 65 cents a year ago. A Thomson Financial survey of analysts, on average, predicted earnings of $1.29 a share for the quarter. Analysts' estimates usually exclude items. The Dallas provider of contract drilling services said revenue for the quarter rose 51% to $470.6 million from $311.3 million last year. The company is "positive" about its 2007 outlook and expects first quarter results to be improved compared to the fourth quarter.
First Data Corp. (NYSE:FDC - News) said it would exit its official check and money-order operations over two to three years. The wind-down will free up $250 million to $300 million of cash for potential acquisitions, share repurchases and other purposes this year, FDC said.
Friedman, Billings, Ramsey Group Inc. (NYSE:FBR - News) reported a turn back to profit in the fourth quarter on Thursday, although the company today remained solidly in the red for the full year 2006. Friedman, Billings said it earned $3.8 million, or 2 cents a share, reversing a loss of $271.6 million, or $1.60 a share, in the year-ago period. Revenue came in at just under $176 million, vs. negative revenue of $114 million due to an investment loss in the same quarter of 2005. For the full year 2006, Friedman, Billings lost 39 cents a share, compared to a loss of $1.01 a share in 2005.
General Maritime Corp.'s (NYSE:GMR - News) fourth-quarter net income fell 79% on 56% lower revenue, hurt by lower spot charter rates and a smaller fleet.
HealthSpring Inc.'s (NYSE:HS - News) fourth-quarter net income more than tripled to 35 cents from 10 cents in the year-earlier period. The Nashville provider of prescription-drug plans posted revenue of $335.7 million, up from $246.1 million. The company still expects 2007 earnings of $1.55 and $1.65 a share on revenue of $1.5 billion to $1.6 billion.
Hilb Rogal & Hobbs Co. (NYSE:HRH - News) fourth-quarter earnings rose to 59 cents a share from 54 cents in the year-earlier period. Revenue at the Richmond, Va., insurance and risk management intermediary climbed to $175.5 million from $164 million. Lamar Advertising Co.'s board declared a special dividend of $3.25 a share, payable March 30 to shareholders of record March 22.
Industrial Distribution Group Inc. (NasdaqGM:IDGR - News), a maker and distributor of cutting tools and abrasives, said fourth-quarter net income rose 33% to $1.9 million, or 20 cents a share, from $1.5 million, or 15 cents a share, a year earlier. Sales climbed 1% to $131.6 million. Gross margins in the quarter came in at 23% compared to 22.4% in the year-ago period.
J.C. Penney Co. (NYSE:JCP - News) on Thursday said fourth-quarter net income slipped to $477 million, or $2.09 a share, from $551 million, or $2.34 a share, in the year-ago period. On a continuing operations basis, it earned $2 a share vs. $1.92 a year earlier. Total net sales rose to $6.66 billion from $6.2 billion, while sales at stores open at least one year rose 2.2%. Analysts, on average, expected it to earn $1.97 a share on revenue of $6.64 billion, according to Thomson Financial. For the first quarter, Plano, Texas-based J.C. Penney expects to earn 99 cents a share, for the year it is targeting profit at $5.44 a share. Analysts polled by Thomson Financial expect it to earn $1.05 a share for the first quarter and $5.42 for the year.
Monarch Casino & Resort Inc. (NasdaqGS:MCRI - News) shares rose after Standard & Poor's said it will add the company to the S&P SmallCap 600 index on a date to be announced, replacing Advo Inc. (NYSE:AD - News).
Moscow CableCom Corp.: (NasdaqGM:MOCC - News) Renova Media Enterprises Ltd. agreed to acquire the equity in Moscow CableCom that it does not already own for $12.90 a share and an equivalent price for Moscow CableCom's Series A convertible preferred stock.
National Semiconductor (NYSE:NSM - News) was upgraded to overweight from equal-weight by Morgan Stanley. "Following three consecutive quarters with negative surprises, we believe that National Semiconductor's fundamentals will likely bottom in the current quarter. Although we expect the ensuing recovery in fundamentals to be slow and potentially choppy during the next couple of quarters, we expect the company's underlying earnings power to show solid signs of improvement during the next couple of years, and this trend should drive NSM higher," the broker said.
OfficeMax Inc. (NYSE:OMX - News)earned 76 cents a share in the fourth quarter, compared with a loss of 62 cents in the year-earlier period. Excluding items, the office-supply retailer earned 48 cents a share compared with 7 cents. From continuing operations, OfficeMax earned 71 cents. Sales fell to $2.26 billion from $2.46 billion. Analysts, on average, expected it to earn 40 cents on revenue of $2.31 billion, according to Thomson Financial. In the retail segment, sales at stores open at least one year fell 0.4%.
PDL BioPharma Inc. (NasdaqGS:PDLI - News) reported that its fourth-quarter net loss widened to 78 cents a share from 31 cents in the year-earlier quarter. Excluding one-time items, the Fremont, Calif., biopharmaceutical company earned 5 cents a share. Revenue climbed to $107.8 million from $83.7 million. For 2007, PDL forecast earnings of 38 cents to 54 cents a share on revenue of $450 million to $500 million. Wall Street is currently forecasting 64 cents on revenue of $495.7 million.

Published By MarketWatch

Labels: AD, ADI, AEM, AMIE, ARW, CUK, ESV, FBR, FDC, GMR, HRH, HS, IDGR, JCP, MCRI, MOCC, NSM, OMX, PDLI, POS

Stocks traded flat for most of the session before closing with fractional gains. Hewlett-Packard (NYSE: HPQ - News) weighed on both the Dow Jones and Nasdaq indices today. Many technology stocks also treaded water ahead of an earnings report from Cisco Systems (Nasdaq: CSCO - News) and reduced guidance from chipmaker National Semiconductor (NYSE: NSM - News). The 10-year Treasury note moved higher, cutting the yield to 4.78%, while an earlier sharp rise in the price of crude was trimmed to a modest gain for the day.
After the market closed, Cisco reported that fiscal Q2 net income increased 40% on a 27% increase in sales. The maker of routers and other gear for the Internet reported earnings of $1.9 billion, or 31 cents a share, for the quarter ended January 27th, against earnings of $1.4 billion, or 22 cents per share, in the same period last year. Last night, National Semiconductor cut its fiscal Q3 revenue forecast to a decline of -14% to -15% sequentially. The company had previously forecast a revenue decline of between -8% to -11%.
Weakness in Hewlett-Packard was attributed to an announcement from Eastman Kodak (NYSE: EK - News) that it would introduce its first line of inkjet printers that will retail for somewhat higher prices than printers from other manufacturers, but Kodak will dramatically cut the prices it charges for replacement ink cartridges. Most printer makers have followed the "razor and blade" model whereby they sell the printers at a low price and make the majority of their profits on replacement ink. According to analysts, the Kodak model would sharply cut price-per-page costs if it catches on with consumers.
Oil producer BP (NYSE: BP - News) reported that Q4 adjusted net profit declined -22% to $2.9 billion, from $3.7 billion a year ago, hurt by declining oil and gas prices and reduced output. Its adjusted net profit measures earnings before extraordinary items and excludes changes in the value of inventories. Revenue rose nearly 12% to $274 billion from $245 billion. In addition to falling oil prices, BP also has had to ratchet up its capital spending to address safety and other operational problems following a spill at an Alaska oil pipeline and an explosion at a BP refinery in Texas that killed 15 people.
Online retailer Overstock.com (Nasdaq: OSTK - News) surged 22% even though the company missed its Q4 earnings target by a wide margin. The company reported a quarterly loss of -$1.92 per share compared with analyst estimates for a loss of -85 cents per share. The stock's rise was attributed to analysts concluding that Overstock was bottoming out operationally and had nowhere to go but up. First Albany raised its rating to "neutral" from "sell."
Household products maker Church & Dwight (NYSE: CHD - News) gained 4% to a 52-week high after reporting better-than-expected Q4 results. The company's Q4 net increased 47% to $24 million, or 36 cents per share, from $16 million, or 25 cents per share, a year earlier. Avon Products (NYSE: AVP - News) climbed 10% after the maker of personal care products reported profits that beat Wall Street estimates. Finally, shares of Tyco (NYSE: TYC - News) slipped in spite of a 43% rise in fiscal Q1 profit. Subscribers can read our analysis of Tyco's results in today's issue.
By Bullmarket.com Staff

Labels: AVP, BP, CHD, CSCO, EK, HPQ, NSM, OSTK, TYC

Major market indices battle to finish in the black, but not by much. The Dow ($INDU) ended the session with a gain of 4.57 points to 12,666.31. The S&P 500 ($SPX) added just 1.01 points to 1,448.00. The NASDAQ ($COMPQ) was virtually flat, up just 0.89 points to close at 2,471.49. Volume was moderate with the NYSE trading 1.47 billion shares and the Naz turning over 2.15 billion. Market breadth was positive by a 21-to-12 and 17-to-13 ratio on the Big Board and Naz respectively.A lack of economic news and a slowdown in earnings data has create lethargy for stocks. This makes sense given the strength in stocks last week. The fact is that a correction is due, but with so much liquidity, buying occurs on every dip. Today’s move off the session lows occurred as oil prices fell off resistance at $60 a barrel. Crude has been on the rise, but this resistance has held to date. Nonetheless, if this area is broken it could give traders a reason to sell. Overall, crude prices rose just 14-cents on the session to close at $58.88. Oil giant BP (BP) saw its shares drop 0.8 percent after the firm reported that profits fell 22 percent in the quarter. The company also lowered guidance going forward. BP is one of the Big Three oil companies, but its results were the worst of the three with Exxon Mobile (XOM) and Chevron (CVX) seeing a drop in results, but not to the extent BP saw. The chip sector saw weakness Tuesday after National Semiconductor (NSM) lowered its outlook for the third quarter. NSM sees revenue falling by 15 percent in the quarter from the second quarter on lower shipments. As a result, the stock fell 2.7 percent to close at $22.68. Overall, the Philly Semiconductor Index ($SOX) fell half a percent on the session. One of the largest movers on the session was Globalstar Inc (GSAT). This stock fell 28.2 percent after it was downgrade due to a regulatory filing that stated the company was having problems with several of its satellites. Another large mover was Overstock.com (OSTK), which gained 22.1 percent on the session. Ironically, the discount retailer had such a bad quarter that analyst’s feel it has bottomed and can only get better from here. After the bell, Cisco (CSCO) reported better than expected earnings on a 40 percent rise in profits. The networking giant saw its shares fall 0.8 percent in the regular session, but they are up nearly five percent after hours. This should set up a strong opening for tech sector on Wednesday.
Jody Osborne

Labels: BP, CSCO, CVX, GSAT, NSM, OSTK, SOX, XOM

Stocks are experiencing minor losses, led by declines in the tech sector. Earnings season is winding down, but traders are waiting for a key report from Cisco (CSCO) after the bell. Shares of BP (BP) are lower on the session after announcing a drop in earnings. Oil prices remain a topic of discussion Tuesday as well with crude moving back toward the $60 level once again. Though it seems stocks are ripe for a correction, the bulls just won’t let a major decline get started. Crude prices have moved higher Tuesday along with heating oil prices. The fact temperatures across the Northeast are so cold has convinced many traders that demand will be strong, hurting current supplies. However, just like Monday’s session, crude has found resistance at $60 and has come off its morning highs. The concern is that if $60 is broken, it could create worries that could lead to selling in the stock market. Energy giant BP announced that its earnings fell during the quarter and came in at their lowest level in two years. The company also lowered its forecasts for 2007 and even stated that growth would be light heading into the end of the decade. This is down from estimates in the past calling for 4 percent annualized growth. Nonetheless, BP shares are down less than one percent on the session, trading just above $63. After the bell today, networking giant Cisco will announce its quarterly report. The company is expected to report earnings of 28-cents a share, which would be earnings growth of just under 10 percent. CSCO shares have performed quite well the past six months, up nearly 60 percent and this could create some selling on the news unless the results are spectacular. Chip stocks have been under pressure Tuesday after National Semiconductor (NSM) cut its revenue forecast. The company is blaming lower than expected shipment in Asia as the cause. This news has pushed NSM shares down four percent and has taken the Philly Semiconductor Index ($SOX) down 1.5 percent. Chip giant Intel (INTC) is also suffering on the session, down nearly one percent. Though economic news will be rather light this week, several Fed speeches this afternoon could garner attention. San Francisco Fed President Janet Yellen, Chicago Fed President Michael Moskow and Treasury Secretary Henry Paulson will all speak today. However, it will be a speech by Fed Chairman Ben Bernanke that will garner most the attention.
Jody Osborne

Labels: BP, CSCO, INTC, NSM

Stocks are set to open flat Tuesday amid rising oil prices and mixed earnings news. Thirty minutes before the opening bell on Wall Street, stock index futures indicated that both the Dow Jones Industrials ($INDU) and NASDAQ ($COMPQ) would open the trading session little changed. Energy-related stocks such as Exxon Mobile (XOM) and ConcoPhillips (COP), and Chevron (CVX) are trading higher as crude oil makes another run towards $60.00 a barrel. Crude is trading up 1.14 cents to $59.88 a barrel on demand for heating oil following an arctic blast of weather throughout the Northeast and Midwest.
Tyco (TYC) is expected to see early strength after reporting quarter earnings of 45 cents a share, which was a penny ahead of analyst estimates. The International Securities Exchange (ISE), the only publicly traded options exchange, reported profits for the fourth quarter of 47 cents a share and that exceeded analyst estimates by four cents. Avon Products (AVP) is up $1.60 to $36.22 after the company said quarterly earnings fell to 41 cents, from 50 cents a year ago. However, results were two cents better than analyst estimates. Meanwhile, Bowater (BOW) and Anadarko Petroleum (APC) earnings came up short of expectations. National Semi (NSM) might weigh on the chip sector after forecasting a 14 to 15% decline in second quarter sales. UBS cut the stock to neutral from buy on the news. NSM is down $50 cents to $22.82 a share.
No economic data is due out today, but investors will get commentary from Treasury Secretary Paulson and Fed Chairman Ben Bernanke later in the day. Paulson speaks to the House and Ways Committee at 10:00 a.m. Eastern time. Bernanke takes the pulpit in Omaha, Nebraska this afternoon.
So far, the days news doesnt hold too many surprises and stocks are set for another slow start. Cisco Systems (CSCO) will be in focus ahead of a profit report due out after the closing bell. Most of the earnings news today has been positive. However, crude oil is up more than $1.00 a barrel and has added $9.00 in a little more than two weeks. While the rally is positive for energy-related stocks, it is a negative for many other sectors and the market might begin to feel the impact if crude makes a push above $60.00 a barrel.

Frederic Ruffy

Labels: APC, AVP, BOW, COP, CSCO, CVX, ISE, NSM, TYC, XOM

Rejecting Tech: Advanced Micro Devices (NYSE: AMD - News), Intel (NASDAQ: INTC - News), Texas Instruments (NYSE: TXN - News), Qualcomm (NASDAQ: QCOM - News), National Semiconductor (NYSE: NSM - News), Marvel (NASDAQ: MRVL - News), MRV Communications (NASDAQ: MRVC - News), Apple (NASDAQ: AAPL - News), Symantec (NASDAQ: SYMC - News), Rackable Systems (NASDAQ: RACK - News), Brocade Communications (NASDAQ: BRCD - News) and EMC (NYSE: EMC - News), Research in Motion (NASDAQ: RIMM - News)
Since it is mid-January, Cramer tells investors that it is time to get out of tech, with a few notable exceptions. The tech businesses that are particularly troubled are cell phones, handheld products, storage stocks, semiconductors and software. Many of these companies are plagued by competition, which is a more destructive force than the calendar. It is for this reason Cramer suggests staying away from Intel and AMD, which are locked in a fierce price war, and he thinks that even the Vista launch will not propel these stocks. Cramer would also sell TXN, QCOM and NSM. However, he would stay with MRVL which is levered to Apple's iPhone. He also likes MRVC because it is poised to spin off one of its divisions. On the other hand, Cramer said that Symantec was a "disaster" and that it had "one of the ugliest preannouncements that was never supposed to happen." He would also stay away from storage companies RACK, BRCD and EMC. Since the handheld trade is "dead," Cramer would unload Research In Motion.

Playing for Keeps: Cisco (NASDAQ: CSCO - News), Apple (NASDAQ: AAPL - News), Hewlett-Packard (NYSE: HPQ - News), Google (NASDAQ: GOOG - News), Microsoft (NASDAQ: MSFT - News), Level 3 Communications (NASDAQ: LVLT - News)
Cramer said that some tech stocks transcend the calendar with "blowaway earnings" and great products. He would stay with CSCO, AAPL, HPQ, GOOG and MSFT or buy them on weakness. Although investors may be tempted to cash in on CSCO, Cramer says that CSCO has a "product-driven story that cannot be denied," its competitors are out of the picture and its three downgrades have taken risk out of the stock. Apple reported a strong quarter, gave "ridiculously low guidance" and should continue going up because of the iPhone, according to Cramer. MSFT's dip is a "big fat gift," and Cramer calls Vista the "single most awaited product story in years." He anticipates a big upside surprise with Google and calls it the best internet stock. For a good speculative internet play, Cramer recommends LVLT.
Published By SeekingAlpha

Labels: AAPL, AMD, BRCD, CSCO, EMC, GOOG, HPQ, INTC, Jim Cramer, LVLT, Mad Money, MRVC, MRVL, MSFT, NSM, QCOM, RACK, RIMM, SYMC, TXN