Jim Cramer Blog

Natural and organic grocery chain Wild Oats Markets Inc. said Thursday its second quarter profit dropped 97 percent due to higher costs and charges that offset improved sales.
For the quarter ended June 30, net income fell to $127,000, or less than 1 cent per share, from $4.9 million, or 16 cents per share in the prior year period.
Analysts polled by Thomson Financial expected profits of 18 cents per share.
Higher expenses and charges contributed to the chain's profit drop. Selling, general and administrative expenses rose 44 percent while restructuring and asset impairment charges climbed 26 percent.
Revenue, though, rose 5 percent to $311.8 million from $296.6 million in the second quarter of 2006.

Labels: OATS, Wild Oats Markets Inc.

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Korn/Ferry International (NYSE:KFY) looks set to announce $0.35 EPS on Wednesday before the market opens. KFY's PowerRating is 5.

Martek Biosciences (NasdaqGS:MATK) reports quarterly earnings after the bell on Wednesday afternoon, with analysts watching for $0.15 EPS. MATK's PowerRating is 3.
When SAIC (NYSE:SAI) reports earnings after the bell on Wednesday, analysts will be watching for $0.20 EPS. SAI's PowerRating is currently unavailable due to the stock meeting certain criteria.
Shuffle Master (NasdaqGS:SHFL) should report $0.13 EPS after the close on Wednesday. SHFL's PowerRating is 4.
It was reported that Amazon.com (NasdaqGS:AMZN) CEO Jeff Bezos said the company will begin to focus more extensively on its fastest growing market in the world, China. AMZN's PowerRating is 5.
Wild Oats Market Inc. (NasdaqGM:OATS) reported that regulators at the Federal Trade Commission will file a lawsuit looking to block its acquisition by Whole Foods Markets Inc. (NasdaqGS:WFMI). OATS' PowerRating is 7 and WFMI's PowerRating is 3.
PowerRatings are courtesy of TradingMarkets.com

Labels: AMZN, Hot Stocks, KFY, MATK, OATS, SAI, SHFL, WFMI

J.C. Penney (NYSE: JCP - News), Ralph Lauren (NYSE: RL - News): Cramer sees JCP's 3% selloff as an opportunity to buy, and comments that management has its "eye on the ball." He praises its deal with RL which will produce private-label clothes to be sold exclusively by JCP. Cramer would by the stock at every 2 or 3 point dip.
Whole Foods (NasdaqGS: WFMI) and Wild Oats (NasdaqGM: OATS): Cramer likes WFMI's plan to buy OATS, because the move will eliminate a price-cutting competitor, raise margins and will give the company a chance to make a comeback after its decline in November.
Analog Devices (NYSE: ADI - News), Texas Instruments (NYSE: TXN - News), Broadcom (NasdaqGS: BRCM), Qualcomm (NasdaqGS: QCOM): Cramer cites ADI CEO Jerald Fishman's comments that inventory correction is over as a reason to expect a rally in TXN, QCOM, and BRCM, although he comments that QCOM is "too litigious for my taste."

Labels: ADI, BRCM, JCP, Jim Cramer, Jim Cramer's Stop Trading, OATS, QCOM, RL, TXN, WFMI

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

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

Published By Bullmarket.com

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

PG&E Corp. (NYSE:PCG - News) posted a fourth-quarter profit of $152 million, or 43 cents a share, down from $180 million, or 49 cents a share, a year earlier. The company attributed most of the decline to severance costs that resulted in an after-tax cost of 5 cents a share in the most recent period. Analysts polled by Thomson First Call had expected a profit of 44 cents a share. California's biggest utility raised its outlook for 2007 earnings by 5 cents a share to a range of $2.70 to $2.80 a share.
Quanta Services Inc., (NYSE:PWR - News) the Houston provider of contracting services and solutions for electric power, gas, telecommunications and cable television, swung to a fourth-quarter loss from a year-earlier profit on 13% higher revenue. For the first quarter Quanta expects to earn 10 cents to 12 cents a share compared with 7 cents in the year-earlier period. Revenues should range $540 million to $550 million, up from $496.5 million a year earlier.
Skechers USA Inc. (NYSE:SKX - News) reported fourth-quarter earnings more than doubled to 33 cents a share from 14 cents in the year-earlier period. The Manhattan Beach, Calif., footwear company posted revenue of $304.5 million vs. $223.5 million. Skechers expects first-quarter earnings of 50 cents to 55 cents a share on revenue of $325 million to $335 million.
Teekay Shipping Corp. (NYSE:TK - News) reported fourth-quarter earnings fell to 81 cents a share from $1.85 in the year-earlier period. The Bahamas shipper of oil and natural gas posted voyage revenue of $587 million, up 10%.
TRW Automotive Holdings (NYSE:TRW - News) earned 32 cents a share in the fourth quarter, down from 57 cents in the year-earlier period. The Livonia, Mich. maker of safety systems for cars said sales rose 4.3% to $3.3 billion. The average estimate of analysts polled by Thomson Financial was earnings of 3 cents on revenue of $3.16 billion. TRW is forecasting sales of $13.4 billion to $13.8 billion for 2007, yielding earnings of $1.85 to $2.15. Thomson is looking for earnings of $2.10 and sales of $13.4 billion.
ValueClick Inc. (NasdaqGS:VCLK - News), an Internet marketing firm, reported profit increased 56% as sales rose 38%.
Wabtec Corp. (NYSE:WAB - News) Thursday reported fourth-quarter earnings of $26.2 million, or 53 cents a share, up from a year-ago profit of $16.3 million, or 34 cents a share. On a continuing operations basis, the company earned $26.9 million, or 55 cents a share, in the fourth quarter, up from a year-ago equivalent profit of $17.9 million, or 37 cents a share. The latest results include a net tax benefit of 8 cents a share. Excluding the gain, the Wilderming, Pa., maker of rail technology products said it earned 45 cents a share in the latest quarter. Sales rose 9% in the latest three months to $294.4 million from $270.3 million in the same period a year earlier. The company attributed the sales increase in the latest quarter to higher sales of transit locomotives, locomotive components and radiators for non-rail markets, as well as acquisitions. The average estimate of analysts polled by Thomson Financial was for a profit of 44 cents a share in the December period. The company also affirmed its outlook for earnings of $2.10 a share for fiscal 2007, excluding restructuring expenses of roughly 5 cents a share. Wall Street's current consensus estimate is for a profit of $2.10 a share for the year.
WebMD Health Corp. (NasdaqGS:WBMD - News) reported fourth-quarter earnings of 15 cents a share, up from 11 cents in the year-earlier period. The New York provider of health information services posted revenue of $80.6 million vs. $49.1 million. WebMD raised its 2007 outlook and now expects per-share earnings of 35 cents to 48 cents on revenue of $336 million to $352 million.
Whole Foods (NasdaqGS:WFMI - News) agreed to acquire smaller rival Wild Oats Markets Inc. (NasdaqGM:OATS - News) for about $565 million, as it grapples with competition from conventional supermarkets.

Labels: OATS, PCG, PWR, SKX, TK, TRW, VCLK, WAB, WBMD, WFMI

Whole Foods Market Inc. said Wednesday it will pay $565 million for Wild Oats Markets Inc., a chain of natural and organic food markets in the United States and Canada. Shares of Wild Oats jumped 17 percent in extended trading after the deal was announced.
Whole Foods executives said they approached Wild Oats because they sensed a "strategic gap" after the smaller company lost its chief executive and chief financial officer.

Labels: OATS, WFMI, Whole Foods Market Inc., Wild Oats Markets Inc.

Here are 7 stocks for traders for Thursday:
Salesforce.com (NYSE:CRM - News) beat earnings Wednesday after the bell, with $0.10 EPS over a consensus of $0.07 EPS. CRM's PowerRating is 7.
Abercrombie (NYSE:ANF - News) matched earnings expectations Wednesday after the market closed, announcing $2.14 EPS. ANF's PowerRating is 6.
Whole Foods (NasdaqGS:WFMI - News) missed earnings on Wednesday afternoon barely missing with $0.38 EPS versus an expected $0.40 EPS. WFMI signed an agreement to acquire Wild Oats Markets (NasdaqGM:OATS - News) after hours on Wednesday. WFMI's PowerRating is 5.
Ballard Power (NasdaqGM:BLDP - News) is expected to report -$0.15 EPS on Thursday before the market opens. BLDP's PowerRating is 3.
JC Penney (NYSE:JCP - News) announces quarterly earnings on Thursday morning; watch for $1.97 EPS. JCP's PowerRating is 5.
Analysts are looking for Sempra Energy (NYSE:SRE - News) to report $1.13 EPS on Thursday before the market opens. SRE's PowerRating is 6.
When Newmont Mining (NYSE:NEM - News) reports quarterly earnings on Thursday morning, look for $0.38 EPS. NEM's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: ANF, BLDP, CRM, Hot Stocks, JCP, NEM, OATS, SRE, WFMI