Jim Cramer Blog

Stocks took a breather following a two-day rally, as Wall Street demonstrated caution ahead of next week's Fed meeting. The Dow posted a 6-point gain to close at 13,626 for the week. Meanwhile, the Nasdaq and S&P were just off at the bell to end at 2,706 and 1,505, respectfully. Light, sweet crude traded lower on the day to settle at $88.28 for January delivery. Treasury prices dropped, while gold prices fell to close at $800.20 for February delivery. The dollar traded higher against the yen, but eased versus the euro.
In economic news, a Labor Department report showed that 94,000 jobs were added to payrolls in the month of November. Analysts had estimated 70,000 new jobs would be added. The report also showed that the unemployment rate remained unchanged in October at 4.7%. Economists had predicted a rise to 4.8%. In a separate report, the University of Michigan said its consumer confidence index fell to 74.5 in early December, down from 76.1 in November. Economists had predicted a drop to 75.0.
On the earnings front, shares of Synopsys (Nasdaq: SNPS - News) surged 9.3% on the day after the maker of semiconductor design automation software said profits jumped on higher license revenues. For the quarter, the company posted earnings of $41 million, or 27 cents per share, up from $10.1 million, or 7 cents per share, last year. Excluding one-time items, Synopsys earned $60 million, or 40 cents per share, versus $30.7 million, or 22 cents per share, a year ago. Quarterly revenue rose to $315.2 million, up 11.2% from $283.4 million in last year's period. On average, analysts were looking for earnings of 36 cents per share.
In corporate news, billionaire Rubert Murdoch named new leaders at Dow Jones (NYSE: DJ - News), the publisher of The Wall Street Journal, one week before his media empire, News Corp (NYSE: NWS - News), is set to close its acquisition of the company. Les Hinton will become the new CEO at Dow Jones following a shareholder vote. Murdoch also appointed his son, James, as News Corp's chairman and chief executive for Europe and Asia. The move has fueled speculation that James will eventually succeed his father as CEO of News Corp. Shares of Dow Jones were off slightly in trading, while News Corp's stock posted a small gain.
After the bell yesterday, Palm (Nasdaq: PALM - News) warned that it would swing to a loss in the second quarter and lowered its sales guidance citing a product launch delay. The smart-phone maker said it now expects to post a loss of -22 to -24 cents per share, off from previous estimates of a loss of -1 to -3 cents per share. Excluding one-time items, Palm expects to report a loss between -8 to -10 cents per share. The company said it now expects sales to be between $345-$350 million, down from previous guidance of $370-$380 million. On average, analysts were calling for a profit of 4 cents per share on sales of $376 million. Shares of Palm plunged in trading and were off -12.9% at the bell.
In M&A news, Macrovision (Nasdaq: MVSN - News) has agreed to acquire Gemstar-TV Guide (Nasdaq: GMST - News) in a cash and stock deal worth $2.8 billion. According to terms, Gemstar-TV Guide shareholders will receive $6.35 in cash or 0.2548 of a share in a new holding company that owns both Macrovision and Gemstar-TV Guide. Meanwhile, Macrovision stockholders will own one share of the new holding company for each share held when the deal closes. Under the terms of the deal, the cash exchange will not exceed $1.55 billion. Upon completion of the takeover, Macrovision shareholders will own a 53% stake in the newly formed company, with former shareholders of Gemstar-TV Guide holding a 47% stake. The deal is expected to close in the second quarter of next year. Shares of Macrovision plummeted -21.4% on the day, while Gemstar-TV Guide's stock tumbled to close off -16.6% at the bell.
By the BullMarket.com Staff

Labels: DJ, GMST, MVSN, NWS, PALM, SNPS

Stocks dropped hard from the onset of the trading session as global equity markets fell after credit woes hit foreign indexes. Losses were extended towards the closing bell, with the Dow Jones Industrials falling -387 points at the close, while the Nasdaq lost -56 points and the S&P retraced -44 points on the session. Treasuries rose sharply on the news, with the yield on the 10-year note ending at 4.79%. Over in the energy complex, natural gas was the only gainer, rising 36 cents to $6.58.
Company news from foreign markets hit home today, as France's largest bank, BNP Paribas SA, halted withdrawals from three investment funds because it could not fairly value its holdings after the U.S. subprime mortgage market roiled credit markets. As of August 7th, the company said those funds had assets of $2.2 billion, but those values declined -20% in the past two weeks. The news prompted the European Central Bank (ECB) to infuse 95 billion euros into the overnight lending market. On the home front, a $1.8 billion quantitative hedge fund managed by Highbridge Capital Management, a unit of JP Morgan Chase (NYSE: JPM - News), has lost -5.3% so far this month as credit markets continue to feel the heat.
On the earnings front, one of the world's largest insurers American International Group (NYSE: AIG - News) reported net income of $4.28 billion, or $1.64 a share, up from $3.19 billion, or $1.21 last year. Excluding hedging activities and other investment gains and losses, it said it earned $4.63 billion, or $1.77 a share, easily topping estimates of $1.61 a share. Revenues climbed 16% to $31.15 billion. The insurer cited strong performance in its general insurance business as well as life and retirement services. Strong results could do little for shareholders on this day, as shares fell -3.3%. Subscribers can read our analysis of American International Group's earnings in today's issue.
Elsewhere, media giant News Corp (NYSE: NWS - News), fresh off its acquisition of Dow Jones (NYSE: DJ - News), reported a 4% rise in fiscal fourth-quarter earnings. For the quarter just ended, the company earned $890 million compared to last year's $852 million. Excluding discontinued operations in the year-ago period, profits rose 22% on a per share basis to 28 cents per share, up from 23 cents in the same period a year ago. Revenues rose 9% to $7.37 billion. The company cited higher cable networks results for the increased profits.
In other news, home improvement retailer Home Depot (NYSE: HD - News) shares fell -5.3% after the company said it may have to reduce its price tag and restructure its planned $10.3 billion sale of its contractor supply business to a group of private equity companies. It also said it is scaling back its planned stock repurchase program due to the possible reduction in price for the unit.
Food giant Campbell Soup (NYSE: CPB - News), meanwhile, has hired Centerview Partners to help it explore strategic alternatives for its Godiva Choclatier business. Shares fell -4.6% on the session.
By the BullMarket.com Staff

Labels: AIG, CPB, DJ, HD, JPM, NWS

Rupert Murdoch edged closer to his goal of owning Wall Street Journal publisher Dow Jones & Co. late Tuesday as the board of his News Corp. media conglomerate signed off on the $5 billion deal, a person with knowledge of the matter said.
The Journal reported on its Web site late Tuesday that Dow Jones' board had also approved the deal, removing the last significant hurdle, but a company spokeswoman declined to comment.
If he succeeds, as seems likely, Murdoch would get one of the great trophies of U.S. journalism and a newspaper that is considered required daily reading among the business and power elite.
The deal would also expand Murdoch's already massive global media and entertainment empire News Corp., which owns the Fox broadcast network; Fox News Channel; the Twentieth Century Fox movie and TV studio; MySpace; newspapers in Australia and the U.K.; and several satellite TV broadcasters.

Labels: Dow Jones and Co. Inc., News Corp, NWS

The Dow, Nasdaq, and S&P 500 seesawed but stayed up for most of the day before ending down slightly amidst concerns about tomorrow's Fed meeting. Consumer confidence numbers for June were released today, and the drop was more severe than analysts had expected. The Conference Board's index was down to 103.9, from a revised May number of 108.5. Analysts had expected an index number of 105. Sales of new homes also dropped -1.6% to an annual pace of 915,000 units.
Lennar Homes (NYSE: LEN) showed the effects of the drop in home sales as it announced a loss of -$244.5 million, or -$1.55 per share. Last year, the company had a profit of $327.4 million, or $2.00 per share. The company also announced a weak forecast for its third quarter and the rest of 2007. Quarterly revenues slipped -37% to $2.88 billion. Lennar was down -3.1% on the news.
Oracle (Nasdaq: ORCL) announced after the bell that fiscal fourth-quarter earnings were up 27% from a year ago to $1.6 billion, or 31 cents a share. Excluding items, EPS came in at 37 cents, beating analyst estimates by two cents. Revenues were up 20% to $5.8 billion with software revenues up 19% to $4.8 billion. Fiscal-year earnings were up 27% to $4.3 billion, or 81 cents per share, with total revenues of $18 billion, up 25%.
Nike (NYSE: NKE) also released its fiscal fourth-quarter earnings after the bell, reporting a profit of $437.9 million, or 86 cents per share. Revenues were up 9% for the quarter to $4.4 billion. For the fiscal year, Nike showed profits of $1.5 billion, or $2.93 per share, with revenues of $16.3 billion.
Grocery store chain Kroger (NYSE: KR) posted profits of $336.6 million, or 47 cents per share, for its fiscal first quarter. Profits were up 11.3% from the year-ago period, when Kroger announced profits of $302.4 million. Sales rose 6.7% to $20.73 billion, exceeding analyst estimates of $20.32 billion. The stock fell -6.7%.
Rupert Murdoch and the board of directors of Dow Jones (NYSE: DJ) have reportedly come to a preliminary agreement regarding editorial independence, thereby clearing the path for the purchase of the media company by News Corp. (NYSE: NWS). A source reportedly told AP that while there are still some points to iron out, most of the deal has been worked out. The Dow Jones board of directors includes four members of the Bancroft family -- the controlling shareholder group for the company.
Ventana Medical Systems (Nasdaq: VMSI) saw shares of its stock soar today on news that Roche Holding AG had made an offer for the company. Roche offered $3 billion, or $75 a share, in a hostile takeover bid Monday evening. Ventana closed up 47.7% on the day. Roche also closed another deal today, finalizing its purchase of Gaithersburg, MD-based BioVeris Corp. for $600 million.
Basell, a Dutch chemical company, has made a bid for Huntsman Corp. (NYSE: HUN). Under the deal, Basell would acquire all outstanding shares of Huntsman for $5.6 billion, or $25.25 per share. The total deal is worth $9.6 billion when assumption of debt is included. Huntsman has been shopping itself around for some time, but has had trouble finalizing a deal.

Labels: DJ, Dow Jones and Co. Inc., KR, LEN, Lennar Corp., News Corp, Nike Inc., NKE, NWS, Oracle Corp., ORCL

After six days of climbing, the S&P 500 was down today, along with the Nasdaq and Dow. Stocks were affected by a scare that the Fed might be preparing to raise interest rates again for the first time since last June. Fed Chairman Ben Bernanke, speaking via satellite at an international money management conference in South Africa, suggested that the economy was set to rebound even though the housing slump might continue for some time. Coupling that with the news from the Institute for Supply Management (ISM) and there were concerns that rates might be on their way up.

The ISM released its May index of business activity in the non-manufacturing sector. The new reading of 59.7 beat both April's number and Wall Street expectations of 56. New orders were at 57.4 and employment was at 54.1, both up from April. Numbers higher than 50 indicate expansion, while numbers lower indicate contraction.
After yesterday's meeting with News Corp (NYSE: NWS) Chairman Rubert Murdoch, the Independent Association of Publisher's Employees, which is the union that represents Wall Street Journal employees, has reached out to other potential buyers. One surfaced as billionaire investor Ron Burkle has indicated that he might be interested in purchasing Dow Jones (NYSE: DJ). Union president Steve Yount indicated that Burkle was the first person to respond, but that overtures were made to a few potential buyers.
Avaya (NYSE: AV) has agreed to a buyout from TPG Capital and Silver Lake Partners. The total value of the sale is $8.2 billion, or $17.50 per share. This deal has been in talks for some time, and while it is no surprise that it has come to fruition, there was speculation about when the offer would be made.
Housewares retailer Bed Bath and Beyond (Nasdaq: BBBY) lowered its guidance for the quarter, saying that a consumer spending drop-off was responsible for the company failing to meet expectations for the first time since it went public in 1992. In today's announcement, Bed Bath and Beyond released earnings expectations of 36-38 cents per share, down from the 39 cents it said was "reasonable" on its previous conference call. While the company said that same-store sales would be up, the growth is now only expected to be 1.6% instead of the 3-5% previously suggested.
Amazon.com (Nasdaq: AMZN) shares rose 4.6% after the company said it would increase its investment in Chinese Internet company Joyo.com. Proctor & Gamble (NYSE: PG), meanwhile, rose 0.46% after it reiterated its previous guidance.

By the BullMarket.com Staff

Labels: AMZN, AV, BBBY, DJ, NWS, PG

By the BullMarket.com Staff
The Dow, Nasdaq, and S&P 500 all started the week up despite some concerns that China and the factory orders report would drive U.S. stocks down. New highs again marked the close of both the Dow and S&P 500, and all three indices are on track to post their best quarter in at least three years. Stocks in Shanghai took another tumble as the government continues to try and control the stock market. The Shanghai Composite Index dropped -8.3% overnight, but the effect seemed minimal as most other Asian markets closed up, including five record highs. Factory orders grew in April, but the gains were weaker than expected. New orders increased by only 0.3%, which was the smallest gain in three months. Analysts had expected gains of up to 0.8%. While the overall gains were weak, analysts were encouraged by the 2.1% growth for non-defense capital goods excluding aircraft. This sub-metric is considered a good read on business investment.

M&A news once again dominated the headlines. Palm Inc. (Nasdaq: PALM ) signed a deal with private equity firm Elevation Partners for the firm to buy 25% of the smartphone manufacturer. As part of the deal, two Palm executives will resign and shareholders will receive a special $9 per share distribution. Analysts have noted that Palm is facing more competition in the smartphone market lately and it will only get worse as Apple's (Nasdaq: AAPL) iPhone prepares to release at the end of the month. Palm is also adding former Apple hardware engineer Jon Rubenstein to its board as executive chairman. Mr. Rubenstein has settled with the SEC in an investigation surrounding his role in Apple's backdating issues. He paid a fine without admitting guilt. Mr. Rubenstein most notably ran the iPod division from 2004-2005.
Private equity fund Lone Star V LP has entered into an agreement to buy Accredited Home Lenders (Nasdaq: LEND) for $15.10 per share, or a total of approximately $400 million in cash. This is a 10% premium over the stock's Friday close of $13.76. Accredited offers loans to high-risk borrowers, more commonly known as subprime mortgages. This industry, of course, recently suffered a well-publicized collapse.
Telecommunications equipment company Avaya (NYSE: AV), meanwhile, is said to be near closing its deal with private equity firms TPG Capital LLP and Silver Lake Partners. While the deal is not finalized and Avaya could still fall to another suitor, the private equity group seems to be in the leading position.
News Corp (NYSE: NWS) Chairman Rupert Murdoch met with the Bancroft family, who own a controlling interest in Dow Jones (NYSE: DJ), publishers of the The Wall Street Journal. The Bancroft family has been reluctant to meet with Mr. Murdoch, who has made overtures of late trying to buy the company. While the family has been reluctant to sell its stake, this meeting may represent a warming towards the purchase.
According to reports, American Express (NYSE: AXP) is planning to sell its private banking unit within the next one to two weeks. The unit could be worth between $1 and $2 billion. While no suitors have been named publicly, analysts believe that a large international bank could be the purchaser.
Struggling Puerto Rican lender Doral (NYSE: DRL), who last month agreed to be bought out by a private equity fund run by Bear Stearns (NYSE: BSC), has received a rival bid. Privately held FBOP Corp. has made an offer of $1.41 per share in order to take an 80% stake in the lender. This is more than twice what Bear Stearns offered in May.

Labels: AAPL, AV, AXP, BSC, DJ, iPhone, LEND, NWS, PALM

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Intuit (NasdaqGS:INTU) beat earnings after the close on Thursday, announcing $1.13 EPS over an expected $1.07 EPS. INTU's PowerRating is 5.
Kohl's (NYSE:KSS) beat earnings on Thursday afternoon, with $0.64 EPS over an expected $0.62 EPS. KSS's PowerRating is 6.
Alliance Data Systems (NYSE:ADS ) agreed to be bought out by private equity firm Blackstone for $7.8 bln. ADS's PowerRating is 5.
WPP Group (NasdaqGS:WPPGY) announced on Thursday a deal to buy 24/7 Real Media (NasdaqGM:TFSM) for $649 million. WPPGY's PowerRating is 5.
A major takeover bid is still on the table for Dow Jones (NYSE:DJ Medial mogul Rupert Murdoch, who runs Newscorp (NYSE:NWS) reportedly offered to buy DJ for $60 a share. DJ's PowerRating is 5, and NWS's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: ADS, DJ, Hot Stocks, INTU, KSS, NWS, TFSM, WPPGY

Stocks traded gingerly preceding today's decision by the Federal Reserve to hold the line on interest rates, then the markets resumed the upward pace that has characterized trading in the past month. The advance by the major averages wasn't dramatic, but it was another move higher and established yet another closing record for the Dow Jones Industrial Average. In other markets, the 10-year Treasury note and crude oil futures closed lower.
The Fed's decision not to alter interest rates came as little surprise and there was little change in the wording of the central bank's announcement that would tip its hand about future rate cuts. The policy makers are maintaining their inflation-fighting bias, though this month around there was some acknowledgment that growth has slowed. Overall, it's steady as it goes for Fed policy.
In corporate news, shares of Cisco Systems (Nasdaq: CSCO) sank -6.5% after the network equipment maker offered a weak sales outlook as part of its profit report, which was released after last night's closing bell. The company suggested a modest slowing of sales growth in the 15-16% range for the current quarter, compared with the 19-20% it forecasted or delivered in the past few quarters. Chipmaker Texas Instruments (NYSE: TXN) moved higher after the company's CEO offered an upbeat assessment of gross margins in an address to analysts.
Media companies were also in the spotlight. Walt Disney (NYSE: DIS) said its fiscal Q2 profit rose 27%. Disney reported net income of $931 million, or 44 cents a share, compared with $733 million, or 37 cents a share, in the year-earlier quarter. Revenue rose to $8.07 billion, which missed the $8.13 billion target analysts expected. Disney cited strength in its cable channels as a growth driver.
News Corp. (NYSE: NWS), meanwhile, said its net income rose 6.2% on the strength of profits from the company's movie unit. Chairman Rupert Murdoch also addressed his surprise $5 billion bid for Dow Jones & Company (NYSE: DJ) in the company's conference call. He suggested the $60 a share bid that is on the table for The Wall Street Journal publisher won't rise, calling it "more than fair." Enough members of the Bancroft family, which controls the company's future through ownership of a super-voting class of stock, have indicated opposition to the deal to block it. Murdoch said he hoped they might be persuaded to change their minds and was seeking a private meeting. Dow Jones closed down -5.1%.
Elsewhere, Japanese carmaker Toyota Motor (NYSE: TM) posted a smaller-than-expected profit. The company's net income rose 8.9% to $3.7 billion, but its operating profit declined -2.8%. On the M&A front, The Wall Street Journal reported that at least three private equity groups are looking at wireless carrier Alltel (NYSE: AT). The company's low debt relative to its cash flow make the company attractive to leveraged buyout firms. Alltel stock closed up 2.1%.

Labels: AT, CSCO, DIS, DJ, NWS, TM, TXN

Rupert Murdoch's media conglomerate News Corp. reported a 6.2 percent profit increase for its latest quarter Wednesday on higher earnings from movies including "Night at the Museum" and growth in cable TV networks.
News Corp., which owns Twentieth Century Fox, the Fox broadcast network, Fox News Channel, newspapers in the U.K. and Australia and MySpace, earned $871 million in its third fiscal quarter ended March 31, up from $820 million in the same period a year ago.
The earnings were equivalent to 27 cents per share, in line with the estimate of analysts polled by Thomson Financial, and up from 26 cents per share a year ago. News Corp.'s shares slipped 29 cents to $21.46 in morning trading.
Revenue rose 21.5 percent to $7.5 billion from $6.2 billion in the same period a year ago.

Labels: News Corp, NWS

Rupert Murdoch's News Corp. offered to buy Dow Jones & Co. for $5 billion, but the deal, which would add The Wall Street Journal to Murdoch's global media empire, faces doubtful prospects since Dow Jones' controlling shareholders said Tuesday they would vote against it.
Clinching ownership of The Wall Street Journal would mark a huge coup for the 76-year old media mogul, landing Murdoch the most authoritative voice in the world of business journalism as well as key know-how and personnel as News Corp. gears up to launch a business-oriented cable news channel to rival CNBC, which first broke news of the proposal earlier Tuesday.

Labels: News Corp, NWS, Rupert Murdoch

Stocks drifted through the morning session on mixed economic news, then gained strength in the afternoon on M&A activity. The Blue Chip Dow Jones Industrial Average made the boldest move, with tamer advances from the Nasdaq composite and S&P 500 indexes. The price of crude oil, as well as the 10-year Treasury note, both declined.
The private Institute for Supply Management's April manufacturing index came in at 54.7, which was stronger than last month and also above Wall Street forecasts. A reading above 50 shows the manufacturing sector is expanding. It also makes it less likely that the Federal Reserve will see the need to cut interest rates to stimulate the economy. On the downside, housing and autos remain weak. The National Association of Realtors said pending sales of existing homes fell by another -4.9% in March.
Meanwhile, U.S. carmakers reported another month of slow sales. Ford Motor (NYSE: F - News) said its domestic sales in April slid -12.9% from a year ago. Car sales at General Motors (NYSE: GM - News) fell -9.5%. Even Toyota Motor (NYSE: TM - News), which has had a seemingly endless string of increased monthly sales, reported a -4.4% sales decline. There were two less selling days in April 2007 than the previous year.
In a rare occurrence, Dow Jones & Co. (NYSE: DJ - News) was more newsworthy than the stock index that bears its name. Shares of the publisher of The Wall Street Journal rocketed up 54.7% after news of a $5 billion unsolicited takeover bid from Rupert Murdoch's News Corp. (NYSE: NWS - News). The $60-a-share offer, which was submitted to the company's board in mid-April, marks a substantial premium over where the stock has traded in the last year. Dow Jones is controlled by the Bancroft family through a two-tier stock system and cannot be sold without its consent. The family was said to be studying the offer.
Other newspaper publishing companies gained today as well, as investors eyed the sector for further consolidation. Moving higher today were shares of New York Times (NYSE: NYT - News), McClatchy (NYSE: MNI - News), Gannett (NYSE: GCI - News), and the Washington Post (NYSE: WPO - News). News Corp., however, traded lower.
On the earnings front, Procter & Gamble (NYSE: PG - News) reported a 14% increase in its fiscal Q3 net, but those results disappointed investors who had become accustomed in recent quarters to results from the consumer products company that came in above forecast. With its Q3 figures only matching Wall Street's expectations, the shares declined -2.2%. Subscribers can read our take on P&G's earnings in today's issue.
Electronics retailer Circuit City (NYSE: CC - News) shed -5.3% after it withdrew its guidance for the first half of the year after announcing that April sales were "substantially" lower than what the company expected. Circuit City is facing intense competition from the larger Best Buy (NYSE: BBY - News) and is in the midst of a restructuring effort.
By the BullMarket.com Staff

Labels: BBY, CC, DJ, F, GCI, GM, MNI, NWS, NYT, PG, TM

Bullish calls:
Syneron Medical (NasdaqGS: ELOS): 'I am going to reiterate ELOS, even as I think that PMTI has come down a lot, ELOS has the best future ahead of it.'FuelCell Energy (NasdaqGM: FCEL)Avnet (NYSE: AVT - News): 'I'm going to send you to AVT.'Chemed (NYSE: CHE - News): 'So, why don't I send you to CHE, which is still 9 points off its high. Also does the hospitality business... has Roto-Rooter, and a hospice.'Comcast (NasdaqGS: CMCSA)Gorman-Rupp (AMEX: GRC - News): 'I like GRC...I'm giving it a thumb and a half up to GRC - two thumbs and a half up...Onyx Pharmaceuticals (NasdaqGM: ONXX): 'This is a stock that, even when it went up to $20, I wanted to buy... I think, at $27, it's still a buy.'Lockheed Martin (NYSE: LMT - News): ' Is there a day when LMT does not have a negative article written about it, about some contract that it has, and they can't keep that stock down... The reason is, that they are bulletproof. No matter how much they screw up, they keep going higher. That's my kind of stock.'Ceradyne (NasdaqGS: CRDN)Hercules Offshore (NasdaqGS: HERO): 'I think HERO was mispriced and you should be buying that. I am looking at re-valuing the drillers, given the fact that the rig count on Friday hit the highest it's been in years. I think HERO is a buy!'Hornbeck Offshore (NYSE: HOS - News): 'I have been upgrading slowly but surely most of the domestic drillers. I'll add HOS to the list. I think that this group has bottomed.'Six Flags (NYSE: SIX - News): 'Hey, listen, ahead of a good summer, I would ... I think SIX is inexpensive. It's like a call option on a decent summer. I say yes to Shapiro and I say yes to SIX!'Electronic Arts (NasdaqGS: ERTS): 'I think you've got to own ERTS. I think it's a good long-term stock. Is it going to go up tomorrow? Not necessarily, but I think the franchises are in tact.'Goldman Sachs (NYSE: GS - News)Expedia (NasdaqGS: EXPE): 'If you like that game, I suggest you be in EXPE.'NewsCorp (NYSE: NWS - News): 'I think NWS is inexpensive. I think it is well-run. I think I'm going to get fired for saying it's anything more than 'good...'
Bearish calls:
Palomar Medical Technologies (NasdaqGS: PMTI):Headwaters (NYSE: HW - News): 'We think that there's more hype, and more hope, and less money!'Ecolab (NYSE: ECL - News): 'I like ECL, which does hospitality service, but the stock's had a big run.'Plexus (NasdaqGS: PLXS): 'Oh c'mon, my friend. We have got to get out of the cellar-dwelling.'Novastar Financial (NYSE: NFI - News): 'Man is this ever a tough one. I've got to tell you, this NFI, if it doesn't go belly up, it's going to go much higher ... It yields 81%. Now we know that ain't right, so they've got to cut that dividend. When they do, you're going to get hit. So, let's remember, be nimble, and only play this one on paper, in the NBC contest.'Pentair (NYSE: PNR - News)Simcere Pharmaceutical (NYSE: SCR - News): 'I can't get in bed with this stock. It's just too dangerous for me. Sell, sell, sell. I want to ring the register and take the gain ... I am not a China fan.'Take-Two Interactive (NasdaqGS: TTWO)Wells Fargo (NYSE: WFC - News): ' thought WFC delivered a great quarter but, once again, that stock sells at 14x earnings.'Travelzoo (NasdaqGS: TZOO): ' Now TZOO will now make me look like an idiot by being good, but EXPE is better.'
Published By SeekingAlpha

Labels: AVT, CHE, ECL, GRC, GS, HOS, HW, Jim Cramer, Lightning Round, LMT, Mad Money, NFI, NWS, PNR, SCR, WFC

Bullish calls:
Denny's (NasdaqCM: DENN): 'I want to be candid. They did not have a good month. I am sticking by them because, what I liked them for is the restructuring that's fixing their balance sheet ... it's part of my little under-$10 package that I think is ramping, and that I think goes still higher. DENN is fine with me. I want to hold it.'Blockbuster (NYSE: BBI - News)Dynegy (NYSE: DYN - News)Companhia Vale do Rio Doce (NYSE: RIO - News): 'This company accomplished something that no other company could do in the western hemisphere... It literally merged with its #2 competitor ... and it has created a mineral powerhouse ... I think it's got $45 written on it. I have liked this company for 10 points. I bet you I like it for another 15! But, I've got to tell you - let's understand - it's had a big run. It is up 68% year over year. It goes to $40, and goes to $45. It probably pulls back a little, and ultimately goes to $50.'NYSE Group (NYSE: NYX - News): 'I think this is the most undervalued stock on the New York Stock Exchange - how ironic... I just bought some again for my charitable trust last week, and I am anxious to pull the trigger again, because I just think it is so darn undervalued versus when that Euronext deal closes. This one is a keeper.'Yahoo! (NasdaqGS: YHOO): ' ... there was an article in the Wall Street Journal that really said that the Yahoo AT&T relationship is ka-put, that it's just a trainwreck ... Now, over the weekend, YHOO and AT&T put out a series of releases that basically said that the Journal was dead wrong. Maybe it's something in between, but the people who tossed this stock out on Friday overreacted to what I think may have been a lot wrong in that article. I'm staying with YHOO.'eBay (NasdaqGS: EBAY)Big Lots (NYSE: BIG - News): ' ... As soon as I saw the Dollar General buyout, I said that someone is going to bid for this BIG, so I hit it up. Sure enough, 52-week high but, you know what? It probably has a little bit more to go. Now, let me caution... If I owned it, it's up 120% year-over-year, and that means bulls make money, bears make money, but hogs get slaughtered. So, if you owned it for the last year....'BEA Systems (NasdaqGS: BEAS): 'I recommended it at $12. Right now, I'm giving myself 30 lashes... I am disappointed in how this company reported. I still believe that Oracle could take them out ... I want to stick with it for now.'
Neutral calls:
Ford (NYSE: F - News): 'I don't mind the company, but the stock is wrong ... I think that Ford will be successful in its turnaround, but I like to play it with the right piece of paper - the convertible bond.'
Bearish calls:
USG (NYSE: USG - News): 'USG is a really interesting situation, because it never seems to ever go right where Warren Buffet says that he would buy the rest of it, which is mid-40s... Now, USG in the end, is deeply levered to the housing market, and you know that I am a bear on housing.'Heelys (HYLS): 'I think that HLYS is over-valued ... I went recently to a couple of sporting goods stores. They're stocked to the gills with Heely's. I don't like to see that. Sell, sell, sell!'News Corp. (NYSE: NWS - News): 'We're a dollar away from register ringing on NWS. It doesn't mean I dislike it. It does mean it's had a really big run.'Quiksilver (NYSE: ZQK - News): 'Awful. Awful. I've got to tell you. This is one of the worst quarters I have seen from any apparel company, and they're blaming the warm weather ... I hate those kind of excuses. In other words, what I'm saying is, it's probably too late to sell right now but, if that stock rallies, sell, sell, sell!'
Published By SeekingAlpha

Labels: BBI, BEAS, BIG, DENN, DYN, Ebay, F, Jim Cramer, Lightning Round, Mad Money, NWS, NYX, RIO, USG, YHOO, ZQK

Stocks traded mixed, with the Dow Jones Industrial Average ending the day flat. The broader market averages posted modest gains, while technology stocks showed strength today. After initially spiking higher, crude oil prices retreated to slip below $58 a barrel. Bonds moved higher with the yield on the 10-year Treasury note dipping to 4.75%.
The day's economic news was mostly positive. The Labor Department reported that U.S. productivity grew during the final three months of last year. Non-farm productivity grew at a 3.0% rate in Q4, which reversed a revised -0.1% decline in the previous quarter. The National Association of Realtors, meanwhile, said it believes the housing market bottomed out in the fourth quarter and that sales of existing homes will grow over the course of the current year. New home sales are forecasted to slide again during the current quarter before the trend gradually turns positive.
In business news, Cisco Systems (Nasdaq: CSCO - News) paced technology stocks today after posting better-than-expected fiscal Q2 results after last night's market close. Cisco also guided higher for the current quarter, calling increased use of video-downloading services the driver behind growth of its Internet equipment business. Semiconductor stocks were also strong. Market leader Intel (Nasdaq: INTC - News) was up modestly, while smaller players recorded sharp gains. Infineon Technologies (NYSE: IFX - News) gained 10% after announcing that it had won a contract to supply chips to mobile phone maker Nokia (NYSE: NOK - News). Broadcom (Nasdaq: BRCM - News) added 5% on the eve of its earnings announcement, which is scheduled for tomorrow night. The company was also upgraded to "overweight" by Morgan Stanley.
Health insurer Cigna (NYSE: CI - News), whose shares have risen sharply since the middle of last year when concerns over costs sent the stock into a brief tailspin, reported record Q4 profits. The market cap of the Philadelphia-based insurer rose 2% today and reached a new 52-week high in intraday action. Strong enrollment in its medical plans powered earnings of $232 million, or $2.28 a share, which was up 10% from $210 million, or $1.67 a share, a year earlier. Analysts also noted the company's attention to cost discipline, as Cigna's medical cost ratio beat analyst expectations in the quarter. Another major health insurer, Aetna (NYSE: AET - News), will report its earnings tomorrow before the opening bell. An unexpected spike in Aetna's medical cost ratio last year also caused a sharp sell-off from which the stock has partly recovered. Aetna ended up 1% today.
Rupert Murdoch's News Corp. (NYSE: NWS - News) posted a bottom-line earnings decline of -24% in its fiscal Q2, but the previous year's quarterly results contained a gain from the sale of assets. The company reported profits of $822 million, or 26 cents a share, down from $1.1 billion, or 33 cents a share, a year earlier, but 1 cent better than expected. Revenue rose 18% to $7.8 billion. Profits at appliance maker Whirlpool (NYSE: WHR - News) declined -13%. The company said costs from discontinued operations, higher raw material costs, and reduced demand for home appliances contributed to the weak results. Whirlpool earned $109 million, or $1.37 a share, down from $126 million, or $1.83 a share, a year earlier. The loss from discontinued operations in the quarter was -30 cents per share. Revenue was sharply higher, rising to $5.0 billion from $4.0 billion, aided in part by its acquisition of Maytag.
By the BullMarket.com Staff

Labels: AET, BRCM, CI, CSCO, IFX, INTC, NOK, NWS, WHR

Stocks rose Wednesday, lifting the Dow Jones industrials past 12,700 for the first time after Wall Street welcomed a robust sales forecast from Cisco Systems Inc. and a stronger-than-expected productivity reading.
The Cisco forecast gave a boost to technology stocks, while the Labor Department's productivity figures were stronger than expected for the fourth quarter. Productivity grew at a 3 percent annual rate, nearly double what Wall Street expected and the agency also reported that wage pressures eased somewhat in the last three months of the year.
"This economy just keeps moving along. Stocks overall are still reasonably priced and obviously there's a lot of money on the sidelines that wants to come in," said Al Goldman, chief market strategist with A.G. Edwards & Sons.
In early afternoon trading, the Dow rose 29.72, or 0.23 percent, to 12,696.03. The Dow rose as high as 12,700.28, passing a previous trading record of 12,683.93 set Friday.
Broader stock indicators also moved higher. The Standard & Poor's 500 index was up 4.74, or 0.33 percent, at 1,452.74, and the tech-focused Nasdaq composite index, responding to Cisco's news, rose 23.16, or 0.94 percent, to 2,494.65.
Bonds rose following the economic data, with the yield on the benchmark 10-year Treasury note falling to 4.74 percent from 4.77 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices rose.
Light, sweet crude rose 26 cents to $59.14 per barrel on the New York Mercantile Exchange, lifted slightly after the Energy Department's weekly domestic inventory data showed a small decrease in crude stockpiles.
"I think that people are slowly but surely becoming aware of the fact that if we had any kind of a landing it was a soft landing. I'm not even sure we can call it a landing," Goldman said of the economy. "I think people who have been disbelievers in this market for years are starting to believe."
Investors found encouragement in the productivity data because it suggested employers could extract more work from employees and stave off the need to add workers in a tight labor market. Employers forced to compete for workers would likely have to raise pay and other benefits. Such a prospect would draw concern on Wall Street as the Fed remains watchful of an increase in wage inflation.
Last week, the Fed left rates unchanged for the fifth straight time, interrupting a string of 17 straight increases than began in 2004. In comments accompanying the decision, the Fed said inflationary pressures appeared to be in check though still a concern. After an initial burst higher following the comments on inflation, stocks have shown little movement as bullish investors try to build resolve to move higher.
The productivity data seemed to overshadow comments from Philadelphia Fed President Charles Plosser that an improving economy might force the central bank to raise short-term interest rates. Plosser said the productivity gains were helping consumers but that it was too soon to declare the threat of inflation neutralized.
In corporate news, Cisco rose $1.16, or 4.2 percent, to $28.44 after the networking equipment maker predicted its third-quarter revenue would rise 19 to 20 percent.
News Corp. added 60 cents, or 2.5 percent, to $24.75 after the media conglomerate's fiscal second-quarter earnings fell from those of a year ago, which benefited from a gain on an asset sale. The company's box office earnings rose on several hits including the "Borat" movie. Earnings were stronger than expected and the stock set a new 52-week high of $25.35, topping an earlier high of $24.52.
Multi-Fineline Electronix Inc., which makes circuit boards, rose $3.26, or 18.5 percent to $20.84 although its fiscal first-quarter profit came in below Wall Street's expectation. Some analysts suggested the company's revenue had hit a low point.
Appliance maker Whirlpool Corp. saw its fourth-quarter earnings fall 14 percent as it recorded a loss from discontinued operations. The stock fell $2.85, or 3 percent, to $92.05. DirecTV Group Inc. rose $1.63, or 6.8 percent, to $25.60 after the satellite television operator's fourth-quarter profit more than doubled after its subscriber base grew and it changed its accounting for set-top boxes.
Cheesecake Factory Inc. fell 79 cents, or 2.9 percent, to $26.97 after the restaurant chain's fourth-quarter profit fell 9 percent amid compensation charges and increased operating costs.
Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where volume came to 753.59 million shares.
The Russell 2000 index of smaller companies was up 4.78, or 0.59 percent, at 815.19.
Overseas, Japan's Nikkei stock average closed down 0.66 percent. Britain's FTSE 100 closed up 0.37 percent, Germany's DAX index was up 0.58 percent, and France's CAC-40 finished up 0.46 percent.
Published by Tim Paradis, AP Business Writer

Labels: CAKE, CSCO, Dow Jones, DTV, Hot Stocks, MFLX, NWS, WHR

News Corp. (NYSE:NWS - News) said fiscal second-quarter net income fell to $822 million, or 27 cents per class A share and 23 cents per class B share. In the year-ago period it earned $1.08 billion, or 35 cents per class A share and 29 cents a class B share. On a continuing operations basis, it earned 26 cents a share. Revenue rose to $7.84 billion from $6.67 billion. During the quarter, Liberty Media Corp. agreed to exchange its entire 16.3% position in News Corp. for the company's entire interest in DirecTV Group, three regional sports networks and $550 million of cash, subject to adjustment. If approved, the deal is expected to be completed in the second half of calendar 2007.
New York Mortgage Trust (NYSE:NTR - News) agreed to sell certain assets of its REIT unit's mortgage banking platform to IndyMac Bank (NYSE:NDE - News) for about $13.4 million.
Nortel Networks Corp. (NYSE:NT - News) outlined a restructuring plan that calls for the elimination of 2,900 jobs. It anticipates about 70% of the layoffs will take place this year. The Canadian communications equipment provider also said it expects to shift 1,000 jobs to what it termed "lower-cost locations." The company estimates these actions will result in annual savings of about $400 million with half of this figure expected to be realized in 2007. It sees the cost of the restructuring coming in as high as $390 million with $300 million of this figure related to the workforce reductions and $90 million stemming from plans to consolidate and reduce its global real-estate portfolio. Nortel expects to record about 75% of this cost as charges in 2007. The company said it expects revenue of about $3.26 billion for the fourth quarter, a performance that would represent an increase of about 8.8% from last year's equivalent total of $3 billion. The company, which also announced a restructuring plan that calls for the elimination of about 2,900 jobs, sees gross margin for the period at slightly above 40% of revenue. The current average estimate of analysts polled by Thomson Financial is for revenue of $3.21 billion. The company said it expects to report its operating and financial performance for the fourth quarter and full year in the second half of February.
OYO Geospace (NasdaqGM:OYOG - News) shares advanced after the Houston-based maker of equipment for the oil and gas industry posted a fiscal first-quarter net profit of $7.85 million, or $1.30 a share, up from $1.28 million, or 22 cents a share, in the year-ago period. Revenue more than doubled, rising to $44.8 million from $21.9 million.
Ralcorp Holdings (NYSE:RAH - News) reported fiscal first-quarter earnings of $7.6 million, or 28 cents a share, up from a year-ago profit of $9.7 million, or 32 cents a share. Sales rose in the latest three months to $522.7 million from $464 million a year earlier. The St. Louis-based branded food provider said its latest quarter includes a non-cash loss of $17.9 on forward sale contracts related to its shares of Vail Resorts Inc. (NYSE:MTN - News).
SCM Microsystems' (NasdaqGM:SCMM - News) shares leapt after the Fremont, Calif.-based developer of smart card technology forecast an operating profit on revenue of $8.5 million to $9.5 million and a gross margin of roughly 40%. Operating expenses in the fourth quarter are expected to be between $3.3 million and $3.6 million, the company said.
SWS Group (NYSE:SWS - News) shares jumped after the Dallas-based provider of investment and financial services reported fiscal second-quarter earnings of $12.9 million, or 48 cents a share, on revenue of $74.3 million.
USANA Health Sciences' (NasdaqGS:USNA - News) shares rose after the Salt Lake City, Calif.-based maker of nutrition and personal care products late Tuesday reported a fourth-quarter net profit of $11.1 million, or 61 cents a share, up from $10.5 million, or 54 cents a share, last year. Revenue rose 16.5% to $99.8 million from $85.6 million. The company forecast first-quarter net earnings of 61 cents to 63 cents a share on revenue of $103 million to $105 million. For 2007, the company now expects earnings per share to grow 17% to 20% and revenue to grow 15% to 17%.
Valassis Communications (NYSE:VCI - News) reported fourth-quarter earnings before items of $20.6 million, or 43 cents a share, compared to the average estimate of analysts polled by Thomson Financial for a profit of 40 cents a share. For 2007, the Livonia, Mich., marketing services provider said it expects pro forma combined revenue of $2.5 billion to $2.6 billion.
Vanda Pharmaceuticals Inc. (NasdaqGM:VNDA - News) said its fourth-quarter net loss narrowed to $11.9 million from a year ago loss of $21.8 million. The year-ago loss also included a $15 million charge from dividend payments to preferred stockholders. Research and development costs rose 52% to $7.9 million. Research costs were around 21% lower than the third quarter due to the completion of two Phase 3 trials. Vanda also engaged an investment bank to provide strategic advisory services. "This engagement may lead to one or more possible transactions, including the acquisition, sale or licensing by the company of businesses or product candidates, the sale or licensing to a third party of one or more of the company's own product candidates, or the acquisition of the company," Vanda said.
Vornado Realty Trust (NYSE:VNO - News) shares rose after the company said it's terminating its proposal to acquire Equity Office Properties Trust (NYSE:EQR - News). "Vornado concluded that the premium it would have to pay to top Blackstone's latest bid, protected by a twice-increased breakup fee, would not be in its shareholders' interest," the company said in a statement. A report Wednesday morning said Equity Office shareholders at a special shareholder meeting are expected to vote in favor of a bid from private-equity firm Blackstone Group, which had been in a bidding war with Vornado for the nation's largest office REIT.
Published By Michael Baron

Labels: EQR, MTN, NDE, NT, NTR, NWS, OYOG, RAH, SCMM, SWS, USNA, VCI, VNDA, VNO

Shares of Google Inc. headed north toward the $500 mark Thursday morning, after an analyst raised estimates on expectations for a strong fourth quarter.
The Mountain View, Calif.-based company's stock added $9.38, just under 2 percent, to $498.79 in morning trading on the Nasdaq Stock Market. Shares have retreated from a 52-week high of $513 in November.
In a research note, Goldman Sachs analyst Anthony Noto encouraged investors to buy shares of Google.
"Several factors could unfold over the coming months to unlock the value we see in Google shares," he wrote. Noto forecast "strong fourth-quarter 2006 results due to a solid holiday season that likely benefited from continued advertiser demand, seasonal strength in traffic, and recent product launches (including Checkout)," the company's online payment system.
The analyst also looked ahead to benefits from soon-to-launch partnerships with eBay Inc. and News Corp.'s MySpace, and ad