Jim Cramer Blog

Olin (NYSE: OLN - News), PPG (NYSE: PPG - News), Applied Materials (NasdaqGS: AMAT - News), KLA-Tencor (NasdaqGS: KLAC - News), Novellus (NasdaqGS: NVLS - News), Motorola (NYSE: MOT - News): Buyouts in the chemical sector have caused prices to rise, and Cramer says it's time to sell OLN and PPG and buy tech stocks. He likes AMAT "up 3 in the blink of an eye," Tencor, which he sees rising another 5 points and NVLS, which made an "incredible" 11% rise despite its disappointing numbers. Even Motorola is coming back after reporting a terrible quarter. "Just take your wallet and just like throw it at the tech stocks!," Cramer said.

Labels: AMAT, Jim Cramer, Jim Cramer's Stop Trading, KLAC, MOT, NVLS, OLN, PPG

Novellus Systems (NasdaqGS: NVLS - News), Motorola (NYSE: MOT - News), Intel (NasdaqGS: INTC - News), EMC (NYSE: EMC - News), Microsoft (NasdaqGS: MSFT - News)
Cramer would buy Novellus, which guided down its earnings, revenues and orders and still rose 10%. The stock is even up after missing its estimates, which demonstrates the health of the tech sector, according to Cramer. Similarly, Motorola is back up after reporting a disastrous quarter. He predicted Intel will reach $30 and investors will be safe to buy half their positions now "because you're immunized. I expect it will be contained either at the $25 strike or the $27.50 strike." Other great tech names are EMC, which is a buy at $19 ahead of VMware's IPO, MSFT, whose performance is sluggish but will still see $32. "This group is like oil was a year ago," Cramer said. "You just can't stop buying it."

Labels: EMC, INTC, Jim Cramer, MOT, MSFT, NVLS, Wall Street Confidential

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Eaton (NYSE:ETN - News) reports earnings on Monday before the open, with analysts looking for $1.47 EPS. ETN's PowerRating is 5.
Mattel (NYSE:MAT - News) should announce $0.11 EPS on Monday before the bell. MAT's PowerRating is 5.
When Merix (NasdaqGM:MERX - News) reports earnings on Monday morning, be looking for $0.01 EPS. MERX does not have a PowerRating due to volume constraints.
WW Grainger (NYSE:GWW - News) should announce $1.19 EPS before the bell on Monday. GWW's PowerRating is 5.
ADTRAN (NasdaqGS:ADTN - News), Equity Lifestyle Properties (NYSE:ELS - News) and Novellus (NasdaqGS:NVLS - News) all report earnings on Monday after the market closes, so look for heightened price action and volatility ahead of the bell. ADTN's PowerRating is 5, and ELS's PowerRating is 4 and NVLS's PowerRating is 4.
PowerRatings (for Traders) is courtesy of TradingMarkets.com

Labels: ADTN, ELS, ETN, GWW, Hot Stocks, MAT, MERX, NVLS

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Eaton (NYSE:ETN - News) reports earnings on Monday before the open, with analysts looking for $1.47 EPS. ETN's PowerRating is 5.
Mattel (NYSE:MAT - News) should announce $0.11 EPS on Monday before the bell. MAT's PowerRating is 5.
When Merix (NasdaqGM:MERX - News) reports earnings on Monday morning, be looking for $0.01 EPS. MERX does not have a PowerRating due to volume constraints.
WW Grainger (NYSE:GWW - News) should announce $1.19 EPS before the bell on Monday. GWW's PowerRating is 5.
ADTRAN (NasdaqGS:ADTN - News), Equity Lifestyle Properties (NYSE:ELS - News) and Novellus (NasdaqGS:NVLS - News) all report earnings on Monday after the market closes, so look for heightened price action and volatility ahead of the bell. ADTN's PowerRating is 5, and ELS's PowerRating is 4 and NVLS's PowerRating is 4.
PowerRatings (for Traders) is courtesy of TradingMarkets.com

Labels: ADTN, ELS, ETN, GWW, Hot Stocks, MAT, MERX, NVLS

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.
Goldman Sachs July 260 Calls (NYSE:GS - News). GS' 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.
Joy Global July 50 Puts (NasdaqGS:JOYG - News). JOYG'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.
Google Inc. July 540 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 4.
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.
iShares MSCI Emerging Markets Index July 115 Puts (AMEX:EEM - News). EEM'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.
Commerce Bancorp (NYSE:CBH - News). CBH'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.
Novellus Systems (NasdaqGS:NVLS - News). NVLS' PowerRating is 5.
PF Chang's China Bistro (NasdaqGS:PFCB - News). PFCB's PowerRating is 4.
PowerRatings are courtesy of TradingMarkets.com

Labels: CBH, EEM, GOOG, GS, Hot Stock Options, JOYG, NVLS, PFCB

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Hospira (NYSE:HSP) & Hologic (NasdaqGS:HOLX). HSP's PowerRating is 6, and HOLX's PowerRating is 8.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Oriental Express Hotels (NYSE:OEH). OEH's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Novellus Systems (NasdaqGS:NVLS) & NuStar GP Holdings (NYSE:NSH). NVLS's PowerRating is 7, and NHS's PowerRating is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Jackson Hewitt (NYSE:JTX). JTX's PowerRating is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Conseco (NYSE:CNO). CNO's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: CNO, HOLX, Hot Stocks, HSP, JTX, NSH, NVLS, OEH

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Gilead Sciences (NasdaqGS:GILD - News) beat earnings estimates on Wednesday afternoon, announcing $0.85 EPS over an expected $0.80 EPS. GILD's PowerRating is 5.

Novellus Systems (NasdaqGS:NVLS) missed earnings on Wednesday; analysts were looking for $0.43 EPS, but NVLS announced $0.42 EPS. NVLS's PowerRating is 6.
Altria (NYSE:MO) reports quarterly earnings on Thursday before the bell; watch for $1.06 EPS. MO's PowerRating is 5.
Bank of America (NYSE:BAC) announces earnings Thursday before the market opens, with analysts looking for $1.15 EPS. BAC's PowerRating is 4.
Continental Airlines (NYSE:CAL) is expected to report $0.14 EPS on Thursday before the bell. CAL's PowerRating is 3.
When Merck (NYSE:MRK) reports on Thursday morning, look for $0.82 EPS. MRK's PowerRating is 5.
Look for Merrill Lynch (NYSE:MER) to announce $1.97 EPS on Thursday before the action begins. MER's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: BAC, CAL, Hot Stocks, MER, MO, MRK, NVLS

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.
Capital One Financial Feb 80 Calls (NYSE:COF - News). COF's 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.
Apple Inc. Feb 85 Puts (NASDAQ:AAPL - News). AAPL'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.
Intuitive Surgical Feb 100 Calls (NASDAQ:ISRG - News). ISRG's PowerRating is 4.
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.
Diamond Offshore Drilling Feb 75 Calls (NYSE:DO - News). DO'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.
Las Vegas Sands (NYSE:LVS - News). LVS' 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.
Deckers Outdoor (NASDAQ:DECK - News). DECK's PowerRating is 6.
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.
Novellus Systems (NYSE:NVLS - News). NVLS' PowerRating is 7.
PowerRatings are courtesy of PowerRatings.net

Labels: AAPL, COF, DECK, DO, ISRG, LVS, NVLS, stock options

A slug of disappointments in technology caused a rotation from “the rotation.” Elsewhere though, strength in the energy complex and less lofty expectations helped keep the schnitzeling to a minimum and the bull at large still hanging in there. For the four-day period, the S&P500 ($SPX) and NASDAQ Composite ($COMPQ) are showing very mixed results from a virtually unchanged decliner of just -.02%, to a much larger -2.06% bit of expired bull.The past week brought home the fact that the market is indeed made up of individual stocks. Large-cap tech—an area of late that’s seen a heavy rotation by institutional money in search of a new home—took the path less traveled. The quick workout on heavyweight tech contenders started off with a sales warning from security software powerhouse Symantec (SYMC), an influential downgrade of key players in the semis (SMH, KLAC, LRCX, NVLS), and two brokers chiming in with reductions to “neutral” on networking giant Cisco (CSCO). A narrowing of gross margins and lackluster guidance by Intel (INTC) didn’t help matters for tech bulls, nor did Apple’s (AAPL) earnings disappointment Wednesday evening. The current crown jewel beat bottom line estimates by 36 cents. However, guidance was reduced by management and shipments of the ever-popular iPod and Mac products were seen as being at the low end of expectations. In Friday’s session, reduced margins resulting in a ‘light’ penny beat at Big Blue (IBM) didn’t compute for bulls. In each case, the individual issues experienced what many might call an inflated disappointment, with investors simply looking to focus on the worst that each report had to offer. With all of the aforementioned being at or near 52-week highs, or better, and Wall Street having made an ‘all in’ move into the group of late, some might also call the action deserved. Black Gold (USO) pushed lower and hit below $50 a barrel for the first time in more than two years. On the week, the futures contract finished down a point at 51.99. Interestingly enough, the ‘profit-engine’ of the energy complex (XLE, OIH) managed to find a bid for the four-day period after its own severe slide. Value hunters and shorts covering were helped along in Friday’s trade by Schlumberger’s (SLB) better-than-expected earnings and a group whose bearish consensus outlook is fertile ground for contra trend reactions. The broader market as represented by the S&P500 can certainly thank the influence that the energy complex carries with it, in keeping profit-taking to a bare minimum. Lowered expectations of earnings (outside of technology) has also helped somewhat. Reactions on the week were generally mixed and the reports themselves didn’t offer up any type of unified and strong guidance for investors. However, Wall Street was able to keep the pains felt in tech names an isolated condition. That might be seen as a small victory for bulls. Names offering up decent results this past week include Wells Fargo (WFC), Harley (HOG), Johnson Controls (JCI) and Capital One (COF). Economic data this past week continued to hint at a slightly stronger economy than expected—focused on inflation pressures, but not reacting to the news either way. Better-than-expected reports on housing starts, industrial production and regional manufacturing reflected underlying growth. Also, weakening trends in energy and commodity prices helped keep price concerns muted and the bulls somewhat supportive of market prices. Other data however, hindered any further rally attempts. A tighter-than-expected labor market via the weekly claims report [sub 300K second week] is keeping the theme of wage-based inflation on traders’ minds. Further, neither the CPI nor PPI releases were able to show any type of clear moderation in prices of yet. With a year-over-year reading of the core CPI at 2.6%, that figure remains elevated, but not significant enough to warrant the Fed to shift policy. All said and done, with the widely followed 10-Year unchanged on the week at 4.77% and the S&P500 virtually unchanged, traders’ will have plenty of fresh catalysts this week to inspire. ON TAP THIS WEEKHeading into the week, potential market catalysts are riding heavily on 4th quarter earnings reports. This week will be the first of the season offering a full five days of corporate results and a calendar filled with promise from the likes of Texas Instruments (TXN), Bank of America (BAC), Yahoo (YHOO), Occidental (OXY), Amgen (AMGN), Caterpillar (CAT), Ford (F) and Johnson & Johnson (JNJ). Thus far, Reuter’s estimates that fourth quarter operational earnings for the S&P500 are on track for an increase of 9.3%. That’s roughly in-line with analysts estimates seen heading into the season, but more than 85% of S&P500 companies are still on tap to report. Further, an in-line Q4 after thirteen periods of double digit growth and a market at multi-year highs doesn’t sound like the basis for bullish behavior in 2007. MondayEconomic: Leading Indicators (.2%)Earnings: Pfizer (PFE), Eaton (ETN), A.O. Smith (AOS), Lee (LEE), Sify (SIFY), Plantronics (PLT), Texas Instruments (TXN), CSX (CSX)TuesdayEconomic: NAEarnings: Bank of America (BAC), EMC (EMC), Jacobs (JEC), J & J (JNJ), Precision Cast (PCP), Rediff (REDF), UAL (UAUA), Advanced Micro (AMD), Citrix (CTXS), Centex (CTX), QLogic (QLGC), Steel Dynamics (STLD), Supertex (SUPX), Yahoo (YHOO), Seagate (STX), RFMicro (RFMD)WednesdayEconomic: Weekly CrudeEarnings: Alleghany (ATI), Conoco (COP), Corning (GLW), General Dynamics (GD), Piper Jaffray (PJC), Waters (WAT), eBay (EBAY), F5 Net (FFIV), Netflix (NFLX), Novellus (NVLS), Qualcomm (QCOM), Rambus (RMBS), Symantec (SYMC), Varian Med (VAR)ThursdayEconomic: Weekly Claims (310K), Existing Home Sales (6.30M)Earnings: Applied Bio (ABI), AT&T (T), BJ Srvc (BJS), Dow Chem (DOW), Ford (F), Imclone (IMCL), Legg Mason (LM), Potash (POT), Occidental (OXY), Nokia (NOK), Quest Diag (DGX), SunPower (SPWR), Union P (UNP), Peabody (BTU), Amgen (AMGN), Harman (HAR), Bebe (BEBE), Columbia (COLM), MEMC (WFR), Microsoft (MSFT), Stryker (SYK), Tempur-Pedic, (TPX), VistaPrint (VPRT), Western Digital (WDC)FridayEconomic: Durable Orders (3.5%), New Home Sales (1.05M)Earnings: Carpenter Tech (CRS), Caterpillar (CAT), Fortune Brands (FO), Halliburton (HAL), Honeywell (HON), T. Rowe (TROW), CDW Corp (CDWC), FPL Group (FPL)
Published By Optionetics

Labels: AAPL, AMGN, BAC, COF, CSCO, HOG, IBM, INTC, JCI, KLAC, LRCX, NVLS, OXY, SLB, SMH, SYMC, TXN, USO, WFC, YHOO

Major market indices see mixed results Tuesday to start a busy week of economic and earnings news. The Dow ($INDU) closed with an advance of 26.51 points to 12,582.59. The S&P 500 ($SPX) added 1.17 points to 1,431.90. The NASDAQ ($COMPQ) experienced a loss of 5.04 points to close at 2,497.78. Volume was solid with the NYSE trading 1.51 billion shares and the Naz turning over 2.18 billion shares. Market breadth was flat on the Big Board and negative on the Naz by a 14-to-16 margin.Though the Dow was able to close at another record high, tech stocks fell on a disappointing earnings announcement from Symantec (SYMC) and downgrades of several key tech stocks. Shares of SYMC fell 13.1 percent on the session after the security software maker warned that both fiscal Q3 and Q4 earnings would fall short of estimates. Last week, Advanced Micro Device (AMD) and this led to a sharp decline for AMD shares as well.Shares of Cisco (CSCO) fell 3.0 percent Tuesday after being downgraded at both Banc of America and Prudential. Novellus (NVLS) and KLA-Tencor (KLAC) were also downgrade this morning, leaving these two stocks down 1.53 percent and 2.80 percent respectively. The Philly Semiconductor Index ($SOX), which both NVLS and KLAC are part of, fell 1.23 percent. Chip giant Intel (INTC) rose 0.77 percent Tuesday ahead of its earnings report after the bell. However, despite beating earnings and revenue expectations, INTC shares are down three percent in after-hours trading. The company stated, much like AMD, that a price war to garner market share did hurt overall results, which saw profits fall to $1.5 billion from $2.45 billion in the year ago period. Oil prices continued to be in the spotlight Tuesday with crude falling to a 20-month low of $50.55 intraday and closing at $51.21. Saudi Arabia Oil Minister Ali al-Naimi told reporters at a conference in India that OPEC did not need to hold a special meeting to cut output again. Mr. al-Naimi believes that the oil market is in much better condition than it was back in October. There is a cut that was announced in December that is supposed to cut another 500,000 barrels a day starting in February. However, there is a lot of debate whether OPEC has much control over the member nations and this has kept oil prices to the downside. There also was some concern today after the release of the Empire State Index. This index measures manufacturing activity in the New York area. However, after hitting a level above 20 last month, this index fell below 10 in a surprise move. This keeps economists concerned about the strength of the economy, although most analysts believe the weak manufacturing sector will not push the economy into a recession or create a hard landing.
Jody Osborne

Labels: AMD, CSCO, INTC, KLAC, NVLS, SOX, SYMC

Acuate Corp. (NASDAQ:ACTU - News) was downgraded to market perform from market outperform. The firm cited expectations for transitional issues as the company moves toward an open source model.
Cardica Inc. (NASDAQ:CRDC - News) said in a regulatory filing that it is initiating a voluntary recall of 55 units of its C-Port xA blood vessel connection system used in heart bypass operations after internal testing showed a manufacturing defect. The Redwood City, Calif., company said the recall will hurt the company's revenue for the quarters ended March 31, 2007, and Dec. 31, 2006, but did not specify by how much.
Centex Corp. (NYSE:CTX - News) said it expects to swing to a third-quarter loss from continuing operations of $2.00 per share, from a profit of $2.52 a share a year ago. The company said it will record land valuation adjustments of around $300 million due to the declining housing market. It has also decided not to exercise land option contracts on 37,000 lots, which will result in walk-away costs of around $150 million. Centex plans to increase its provision for taxes by around $60 million in connection with its ongoing federal tax audit. Excluding these costs, Centex expects adjusted earnings for the quarter of 75 cents a share. Analysts polled by Thomson First Call were expecting earnings of 81 cents a share. For the quarter, Centex said home closings fell 12% to 8,360 and net orders fell 24% to 6,139.
Cisco Systems Inc. (NASDAQ:CSCO - News) was downgraded to neutral from buy at Banc of America Sec., due primarily to valuation. Analyst Tim Long said he believes the networker's business is "as good as it gets," and therefore sees limited upside to the shares. In addition, Prudential Equity Group lowered its rating on the networking giant's stock to neutral weight.
Commerce Bancorp (NYSE:CBH - News) shares fell after the bank said it's been advised that an investigation is being conducted by the Office of the Comptroller of the Currency, in conjunction with the Board of Governors of the Federal Reserve System. "Commerce has further been advised that the scope of the investigation will include but not be limited to transactions with its officers, directors and related parties, including transactions involving bank premises," the company said. "Commerce is fully cooperating with the OCC and the Federal Reserve with respect to the investigation." The company also reported its fourth-quarter results, saying net income jumped 68% to $78.7 million, or 40 cents a share.
Edge Petroleum Corp. (NASDAQ:EPEX - News) said it plans to sell 9.2 million common shares. The deal includes an over-allotment option for the sale of an additional 1.38 million common shares. Houston-based Edge also plans to concurrently offer 2 million shares of Series A cumulative preferred stock. The company anticipates it will use the proceeds to finance its pending acquisition of certain properties from Smith Production Inc. and to refinance its existing revolving credit facility.
Freeport-McMoran Copper & Gold (NYSE:FCX - News) reported fourth-quarter earnings of $441.6 million, or $1.99 per share, down from a year-ago profit of $478.3 million, or $2.19 a share. Revenue rose in the latest three months to $1.64 billion from $1.49 billion in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of $2.12 a share on revenue of $1.72 billion. Looking ahead, Freeport-McMoran said it expects to close in merger agreement with Phelps Dodge in early March. It anticipates sales for the first quarter will be "the highest of the year" with about 400 million pounds of copper and 850,000 ounces of gold.
Goodrich Petroleum Corp. (NYSE:GDP - News) definitively agreed to sell substantially all its assets in south Louisiana for $100 million, effective as of July 1, 2006. The deal is subject to conditions including a due-diligence financial review by the buyer, which a news release identified as a private purchaser. The purchase price will be adjusted for cash flow to the closing date, which Goodrich estimated as Feb. 27, 2007. Goodrich said the deal enables it to focus on developing its Cotton Valley trend acreage and to reduce operating costs.
Headwaters Inc. (NYSE:HW - News) said it plans to sell $125 million worth of convertible senior subordinated notes due 2014 through a private placement. The deal includes an over-allotment option for the sale of an additional $25 million worth of notes.
Indymac (NYSE:NDE - News) said it expects fourth-quarter net income of 97 cents a share, lower than its earlier forecast of $1.30-$1.40 a share. Analysts surveyed by Thomson First Call forecast earnings of $1.34 a share, on average, for the period. "This shortfall reflects the challenging times being faced by the mortgage and housing industries and the difficult nature of forecasting earnings in our business," the Pasadena, Calif., financial services company said.
Intel (NASDAQ:INTC - News) shares were lower ahead of the Dow component's quarterly report, which is due after the closing bell. The current average estimate of analysts polled by Thomson First Call is for a profit of 25 cents a share on revenue of $9.44 billion.
KLA-Tencor (NASDAQ:KLAC - News) was downgraded to hold from buy at Deutsche Bank.
Lam Research (NASDAQ:LRCX - News) was downgraded to hold from buy at Deutsche Bank.
Lamson & Sessions (NYSE:LMS - News) took down its profit outlook due to a slump in the price of PVC pipe due at least in part to a weaker-than-expected residential construction. The company now sees earnings of $2.42 to $2.43 a share for 2006. "This segment's operating loss is due to an industry-wide inventory reduction in the fourth quarter following a mild hurricane season along with lower energy costs," the company said. That meant "an accelerated decline in selling prices that outpaced a decrease in raw material costs. In addition, the residential construction market was much weaker than expected." Previously, the company had been expecting to earn $2.50 to $2.53 a share for the year but, Lamson noted, even the lower number is still a record. On the top line, its still expects to bring in sales of $560 million to $561 million.
Marchex (NASDAQ:MCHX - News) was downgraded to market perform from market outperform at JMP Securities. The firm cited a deceleration of the company's direct navigation business.
Medicines Co. (NASDAQ:MDCO - News) plans to sell six million shares of its common stock. The company also intends to grant the underwriters a 30-day option to purchase up to an additional 900,000 shares of common stock. Bear Stearns and Merrill Lynch are acting as joint book-running managers for the offering. The company was also downgraded to reduce at UBS.
Mesabi Trust (NYSE:MSB - News) declared a distribution of 31.5 cents per beneficial unit late Friday, payable on Feb. 20 to shareholders of record on Jan. 30. The company's distribution was 47 cents per unit for the same period a year earlier, a decline Mesabi attributed to significantly lower shipments of iron ore pellets in the calendar fourth quarter of 2006.
Novellus Systems (NASDAQ:NVLS - News) was downgraded to sell from hold at Deutsche Bank.
Sterling Construction Co. (NASDAQ:STRL - News) forecast earnings of $13.4 million to $15 million, or $1.13 to $1.26 per share, for fiscal 2007 on revenue of between $285 million and $310 million. The current average estimate of analysts polled by Thomson First Call is for a profit of $1.30 a share for the year on revenue of $300.9 million. Also, as of Dec. 31, the company's backlog stood at about $395 million, up 29% from year-ago levels. Shares of the Houston-based civil construction company closed Friday at $20, down 2.4%.
Symantec Corp. (NASDAQ:SYMC - News) said it was lowering its third-quarter earnings and revenue forecast, citing a weaker-than-anticipated performance by its data center management business and higher deferrals than expected as a result of a greater proportion of enterprise maintenance contracts. The Cupertino, Calif. security software company cut its earnings estimate to 10 to 11 cents a share from 14 to 15 cents a share and his revenue forecast to $1.29 billion to $1.31 billion from $1.315 billion from $1.149 billion. Excluding non-recurring items, the company lowered its earnings estimate to 24 to 25 cents a share from 29 to 30 cents, and its revenue projection to $1.30 billion to $1.32 billion from $1.325 billion to $1.355 billion. For the fiscal fourth-quarter, the company expects adjusted earnings of 18 to 20 cents a share, below the average analyst estimate compiled by Thomson First Call of 32 cents.

Published By MarketWatch

Labels: ACTU, CBH, CRDC, CSCO, CTX, EPEX, FCX, GDP, HW, INTC, KLAC, LMS, LRCX, MCHX, MDCO, MSB, NDE, NVLS, STRL, SYMC