Jim Cramer Blog

Stocks climbed higher in afternoon trading to end a volatile week on a high note, as Wall Street did its best to absorb earnings reports, banking sector concerns, and the overall direction of the economy. The Dow was up 67 points at the bell to finish the week at 13,177. Meanwhile, the Nasdaq and S&P ended higher to close at 2,637 and 1,459, respectively. Light, sweet crude traded down on the day to close at $94.85 per barrel for December delivery. Treasury prices traded flat on the day, while gold prices advanced to close at $787.00 an ounce. The dollar dipped against the euro, but gained slightly versus the yen.
On the earnings front, shares of Starbucks (Nasdaq: SBUX - News) tumbled -3.9%, as the company cut its fiscal-year 2008 guidance and reported its first-ever decline in traffic at its U.S. stores. The warning came as the company posted a 35% jump in fourth-quarter profit. For the period, Starbucks reported net earnings of $158.5 million, or 21 cents per share, versus $117.3 million, or 15 cents per share, last year. Quarterly revenue was up to $2.44 billion, from $2 billion a year earlier. Analysts were looking for earnings of 21 cents per share on revenue of $2.43 billion. The company expects 2008 EPS to be between $1.02-$1.05, representing growth of 17-21% and down from previous earnings growth estimates of 20-22%.
Shares of Jack in the Box (NYSE: JBX - News) soared 17.3%, as the fast-food chain reported a better-than-expected fourth-quarter profit. Net income for the period came in at $27 million, or 43 cents per share, down from $33.2 million, or 46 cents per share, last year. Results reflect a 2-for-1 stock split. Revenue rose in the quarter to $678.4 million, up 5% from $648.5 million, a year ago. On average, Wall Street was expecting earnings per share of 39 cents on $684.4 million in revenue. Subscribers can read our take on Jack in the Box in today's edition.
In other corporate news, Garmin (Nasdaq: GRMN - News) announced today that it was withdrawing its bid to acquire digital map maker Tele Atlas NV, and instead signed a long-term data agreement with Navteq (NYSE: NVT - News). Garmin had previously offered $3.3 billion for Tele Atlas, but was recently outbid by rival TomTom. Shares of Garmin surged on the news, and were up 16.1% at the bell.
Shipping giant FedEx (NYSE: FDX - News) said that it was lowering its second-quarter and fiscal-year guidance, citing higher energy prices and a weaker freight sector. For Q2, the company now expects to earn $1.45-$1.55 per share, compared with previous guidance of $1.60-$1.75 per share. For the fiscal year, FedEx lowered guidance to be between $6.40-$6.70 per share, down from a range of $6.70-$7.10 per share. On average, analysts were looking for second-quarter earnings of $1.71 per share and fiscal-year 2008 earnings of $6.87 per share. FedEx's stock was off -4.5% on the day. Subscribers can read our take on FedEx in today's edition.
Elsewhere, Cisco Systems (Nasdaq: CSCO - News) upped its buyback program by an additional $10 billion, bringing the total amount now available to repurchase shares to $62 billion. The company had approximately 6.09 billion shares outstanding as of September 7th. Shares of Cisco were up 2.2% in trading.
By the BullMarket.com Staff

Labels: CSCO, FDX, GRMN, JBX, NVT, SBUX

Buy Nokia (NOK), Jim Cramer said Thursday on CNBC's Stop Trading! segment.
Cramer likes the handset maker's buy of map company Navteq (NVT) and says Nokia is worlds ahead of rivals like Motorola (MOT). He said the stock's decline on the Navteq deal is a "buyable pullback."
Cramer also likes Capital One (COF), saying data from hard-hit California markets indicates that credit card defaults aren't likely to go through the roof. Cramer said he believes the stock is "done going down."
Cramer also likes Cisco (CSCO), saying it's better than Ciena (CIEN), which has just run up 10 points. Cramer would sell Ciena and buy Cisco right now.
Cramer says Bank of America (BAC) is cheap and going to $60 from $52, while talk of J.P. Morgan (JPM) CEO Jamie Dimon's excellence is "overblown."
Published By TheStreet.com

Labels: CIEN, COF, CSCO, Jim Cramer, JPM, MOT, NOK, NVT, Stop Trading

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
NAVTEQ Oct 75 Calls (NYSE:NVT - News). NVT's PowerRating (for Traders) is 5.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
United Therapeutics Oct 70 Puts (NasdaqGS:UTHR - News). UTHR's PowerRating (for Traders) is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Garmin Nov 135 Calls (NasdaqGS:GRMN - News). GRMN's PowerRating (for Traders) is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Google Oct 540 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 4.
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.
Weight Watchers International (NYSE:WTW - News). WTW's PowerRating (for Traders) is 4.
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.
ArthroCare (NasdaqGS:ARTC - News). ARTC's PowerRating (for Traders) 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.
Constellation Energy Group (NYSE:CEG - News). CEG's PowerRating (for Traders) is 6.
Published By TradingMarkets.com

Labels: ARTC, CEG, GOOG, GRMN, NVT, stock options, UTHR, WTW

The Dow Jones Industrial hit new highs on Monday as the market shook off a warning from Citigroup (C), which reported a 60% drop in earnings for the current quarter. The S&P 500 is within 9 points of a record and the NASDAQ hit a 6 year high. Finerman: surprised with the market strength on Monday. Najarian suggested that these are investors who sat on the sidelines during the summer. They are now putting money back into the markets in sectors like technology, commodities and financials. Gasparino: the worst is over for the financials.
Wireless
Nokia (NOK) bought NAVTEQ (NVT) for $8 billion. Najarian: this takeover suggests to him that M&A is not done. Research In Motion (RIMM) is set to report earnings on Thursday. Adami: if you're not already in Research In Motion don't buy it now. Palm (PALM) reported earnings after the bell Monday and traded lower after-hours. Najarian likes the new Centro smart phone that Palm is introducing and thinks the future is bright for PALM. Finerman: the valuation on NAVTEQ is over done and thinks the deal makes Garmin (GRMN) over valued and recommends buying puts on the GPS maker. Macke agrees with Finerman that Garmin is topped.
Global
Big runs in ETF names like Materials EFT (XLB), Tech ETF (XLK) and Energy ETF (XLF). Adami: companies like Fluor Corp (FLR) are up 87% in 9 months, McDermott (MDR) up 120% since January and Jacobs Engineering (JEC) is up 100% since January. He suspects these stocks are due for a pullback and taking profits in these names isn't a bad idea. Macke: Investors have to chase these stocks. Finerman prefers Flowserve (FLS).
Micron (MU): set to report earnings on Tuesday. Najarian: last week someone bought 27,000 call options on Micron, so keep an eye on it. He also wants investors to put ScanDisk (SNDK) on their watch list after the firm just opened up a plant in China. Adami: Micron is a buy.
Conferences
Investment conferences at Deutsche Bank, Jefferies and William Blair will catch investor's attention this week. Najarian: stocks to watch off these conferences are OSI Systems (OSIS), Cepheid (CPHD) and Manitowoc (MTW).
Earnings Warnings
Macke devised a three point checklist to watch as a warning sign from a firm's earnings reports. Any company that points the finger outside of things they can't control, doesn't have a solution, or has a warning that is 10% below estimates should be avoided. Walgreen's (WAG) gave all three of these today and that's why the stock fell apart. Macke: Don’t buy the dip on Walgreen's.
Pops & Drops
Pops- Time Warner (TWX) traded up 2%. Adami could see the stock moving from $18 to $28, if the CEO is ousted.
BorgWarner (BWA): popped 4% off a bullish Barron's article. Adami: still likes BWA.
Electronic Arts (ERTS): popped 4%. Macke: entire video game sector is going higher into the holidays.
AMR Corp (AMR): traded up 12% off a positive Barron's article. Adami says sell.
First Solar (FSLR): traded up 8%. Najarian continues to point investors to Cypress Semiconductor (CY) as the safest play in the solar space.
Drops- SuperValu (SVU): fell 6% after Bank of America downgraded the stock to a sell. Macke likes SVU right here and right now.
Acxiom (ACXM): plunged 20% after a $2.25 billion takeover offer fell through. Finerman wonders if something could be wrong at the company.
Final Trade
Macke advises buying Caterpillar (CAT).
Adami prefers Tesoro (TSO).
Finerman recommends YUM! Brands (YUM).
Najarian would go long Terra Industries (TRA).

Labels: C, CNBC, Fast Money, Fast Money Recap, GRMN, MDR, NOK, NVT, PALM, RIMM, SNDK, XLB, XLK

Ford (F): Cramer began Monday's show by recommending investors buy Ford. Thinks that it will profit off the fact that GM broke the unions with its latest negotiations and that it is selling some of its units. Jim then took a couple of phone calls. The first call was about Tata Motors (TTM), which Cramer likes, but he thinks is too expensive. The second caller asked about Toyota (TM). Cramer won't back Toyota because the weak dollar hurts their sales and the Japanese market is the worst in the world.
In the next segment, Cramer continued to talk about investing opportunities related to GM's success against the UAW. He looked off the beaten path and found American Axle and Manufacturing (AXL) since the company makes auto parts, and has a labor contract that ends in the near future.
Cramer then took some more phone calls. He was asked about Garmin (GRMN), which Cramer thinks fell too much, but he will be concerned about it once the Navteq (NVT) and Nokia (NOK) merger is completed next year. Another caller asked about Eaton (ETN), and Cramer said that it’s one of his favorite manufacturing stocks. The next caller asked about CarMax (KMX), and Cramer said that you should think about pulling the trigger in late November to avoid tax-loss selling.
After the lightning round, Cramer talked about a stock that went public this summer without much attention and considers it an overlooked IPO. His pick is Dolan Media (DM), which helps process mortgage defaults.
Mad Mail:
Cramer read emails about NYSE-EuroNext (NYX), which Cramer thinks he "blew it" when he recommended the stock. Boeing (BA): Despite past devastating news, Cramer believes in it. Siemens (SI): Cramer thinks is in great shape and that you should hold onto it.

Labels: AXL, BA, DM, ETN, F, GRMN, Jim Cramer, KMX, Mad Money, Mad MOney Recap, NOK, NVT, NYX, SI, TM, TTM

Bullish:

Excel Maritime (EXM): bullish on all dry bulk shipping companies.
Companhia Vale do Rio Doce (RIO): Cramer thinks this stock should go higher
Range Resources (RRC): Cramer likes this stock along with the other cheap oil companies
Quicksilver Resources (KWK)
Rosetta Resources (ROSE)
XTO Energy (XTO): his favorite in the sector
Celgene (CELG): one of the best picks he has ever made.

Bearish:

Navteq (NVT): Cramer thinks it's time to ring the register
Garmin (GRMN)
Urban Outfitters (URBN): Cramer's not a fan.
Western Union (WU): This stock doesn't have enough upside.
Nastech (NSTK): Wouldn't recommend buying it until it goes back to $12.
Citigroup (C): Undervalued, but he's not a fan of CEO Chuck Prince.
Sears (SHLD): Cramer isn't urging people to buy

Labels: C, CELG, EXM, GRMN, Jim Cramer, KWK, Lightning Round, Mad Money, NSTK, NVT, RIO, ROSE, RRC, SHLD, URBN, WU, XTO

Bullish Calls:
CV Therapeutics (NasdaqGM: CVTX - News): 'Small-molecule biotech company, dedicated to solving one of the most pressing problems in the world, which is all the cardiology problems which can be solved, and I think that that is precisely the kind of stock to buy in this environment.'Nastech Pharmaceutical (NasdaqGM: NSTK - News): 'Biotech's coming back. With a worldwide slowdown figured in...that's a winner!'Celgene (NasdaqGS: CELG - News)Discovery (NasdaqGS: DISCA - News): 'Can you imagine a whole network with good programming that people tune in... that isn't about being stupid or lazy, or making people look awful, and humiliating them with reality shows?... How can it be?... Actually, I think it's really well-run. I think it goes higher. I think it could go to $27, so I would stay long, and maybe pull the trigger at $24.'Apple (Other OTC: APPL.PK - News): ' ... I would start adding... I do think that AAPL has come down enough to start rebuilding it, but not aggressively, because I need to see the quarter...'
Bearish calls:
MasterCard (NYSE: MA - News): 'Let MA come in, before we pull the trigger... Don't buy, don't buy. It's just a little too expensive for me right now...'Trump Entertainment Resorts (NasdaqGM: TRMP - News): 'They could not sell themselves, so I don't even know what it's worth anymore... I've got to tell you, this is a distinctly bear market stock. I don't want to touch it... Management turnover... it's not for me...'Navteq (NYSE: NVT - News): 'We sell, sell, sell... we take off the gain, and we live to play again.'
Published By SeekingAlpha

Labels: AAPL, CELG, CVTX, DISCA, Jim Cramer, Lightning Round, MA, Mad Money, NSTK, NVT, TRMP

A Safe Bet: Navteq (NYSE: NVT - News), Google (NasdaqGS: GOOG - News), Microsoft (NasdaqGS: MSFT - News)
Cramer confesses his pick this speculation Friday isn't such a wild speculation, since it seems obvious NVT will be bought out by someone. "This $4 billion company, the No. 1 supplier of digital maps used in navigation systems, location-based services and geographic information systems, has been acting like deal bait," he said. Rumors that Google will buy NVT have brought up the stock, and when this happens, a stock usually does not drop even if the rumored acquisition doesn't take place, notes Cramer. However, Google has already indicated its interest in buying NVT, and MSFT, desperate to compete with the internet giant, might also make a bid. "Takeovers aside, Navteq is the big winner from the increased demand for in-car navigation," Cramer said.

Labels: GOOG, Google Inc., Microsoft Corp., MSFT, Navteq, NVT