Jim Cramer Blog

Office Depot Inc., the nation's second biggest office-supply store chain, said Tuesday its third-quarter profit fell 9 percent, hurt by lower consumer spending, a weak housing market and a British economic slowdown. Its shares fell more than 6 percent.
The company had delayed its quarterly results to revise past financial statements after a whistleblower complaint prompted an independent review of vendor-program accounting. It found weakness in its internal controls and led to the firing of four merchandising employees and 2006 and 2007 results being restated.
"To be clear, this is solely related to the timing as to when those funds were recognized," Steve Odland, the company's chairman and CEO, said during a conference call. He added that the problems have been corrected.
Net income fell to $117.5 million, or 43 cents per share, in the three months ended Sept. 29 from $129.1 million, or 45 cents per share, in the year-ago quarter. The latest period includes a $33 million tax benefit.
Sales climbed 2 percent to $3.94 billion from $3.86 billion in the prior-year period.
Analysts surveyed by Thomson Financial predicted profit of 40 cents per share on slightly higher revenue of $3.95 billion.

Labels: ODP, Office Depot Inc.

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Barnes & Noble (NYSE:BKS - News) reports earnings on Tuesday before the market opens, with analysts looking for -$0.08 EPS. BKS's PowerRating (for Traders) is 5.

CDC Corporation (NasdaqGM:CHINA - News) is expected to announce $0.09 EPS on Tuesday morning before the market opens. CHINA's PowerRating (for Traders) is 5.
Gamestop (NYSE:GME - News) announces earnings tomorrow morning before the bell, with traders expecting $0.23 EPS. GME's PowerRating (for Traders) is 6.
Hormel Foods (NYSE:HRL - News) should report $0.65 EPS on Tuesday morning before the bell. HRL's PowerRating (for Traders) is 4.
When Office Depot (NYSE:ODP - News) announces quarterly results on Tuesday morning, look for $0.40 EPS. ODP's PowerRating (for Traders) is 5.
Saks (NYSE:SKS - News) and Target (NYSE:TGT - News) both report earnings tomorrow morning. SKS is looking for $0.16 EPS, while TGT expects $0.61 EPS. SKS's PowerRating (for Traders) is 4, and TGT's PowerRating (for Traders) is 5.

Labels: BKS, CHINA, GME, Hot Stocks, HRL, ODP, SKS, TGT

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.
American International Group Dec 70 Calls (NYSE:AIG - News). AIG's PowerRating (for Traders) is 4.
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.
ZymoGenetics Nov 12.5 Puts (NasdaqGM:ZGEN - News). ZGEN's PowerRating (for Traders) is 3.
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.
Wynn Resorts Nov 195 Calls (NYSE:WYNN - News). WYNN's PowerRating (for Traders) is 4.
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.
CME Group Nov 600 Puts (NYSE:CME - News). CME's PowerRating (for Traders) 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.
Office Depot (NYSE:ODP - News). ODP's PowerRating (for Traders) 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.
Perot Systems (NYSE:PER - News). PER's PowerRating (for Traders) is 4.
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.
AmeriCredit (NYSE:ACF - News). ACF's PowerRating (for Traders) is 6.
Published By TradingMarkets.com

Labels: ACF, AIG, CME, ODP, PER, stock options, WYNN, ZGEN

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

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

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.

Gray Television NYSE:GTN. GTN's PowerRating is 7.
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.
Stein Mart Nasdaq:SMRT. SMRT'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.
Array Biopharma Nasdaq:ARRY. ARRY's PowerRating is 7.
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.
Medivation Nasdaq:MDVN & Advanced Magnetics Nasdaq:AMAG. MDVN's PowerRating is 8, and AMAG's PowerRating is 6.
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.
Office Depot NYSE:ODP. ODP's PowerRating is 4.
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.
Alesco Financial NYSE:AFN. AFN's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: AFN, ARRY, GTN, ODP, SMRT, stock options

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
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.

Gray Television (NYSE:GTN). GTN's PowerRating is 7.
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.
Stein Mart (NasdaqGS:SMRT). SMRT'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.
Array Biopharma (NasdaqGM:ARRY). ARRY's PowerRating is 7.
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.
Medivation (NasdaqGM:MDVN) & Advanced Magnetics (NasdaqGM:AMAG). MDVN's PowerRating is 8, and AMAG's PowerRating is 6.
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.
Office Depot (NYSE:ODP). ODP's PowerRating is 4.
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.
Alesco Financial (NYSE:AFN). AFN's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: AFN, AMAG, ARRY, GTN, Hot Stocks, MDVN, ODP, SMRT

Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Cogent Communications (NasdaqGM:CCOI - News). CCOI's PowerRating is 4.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
iShares MSCI Australia Index (NYSE:EWA - News). EWA's PowerRating is 5.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five 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.
Intermune (NasdaqGM:ITMN - News). ITMN's PowerRating is 9.
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.
3M Company (NYSE:MMM - News) & Office Depot (NYSE:ODP - News). MMM's PowerRating is 4, and ODP'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.
United Parcel Service (NYSE:UPS - News). UPS's PowerRating is 4.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Hot Topic (NasdaqGS:HOTT - News). HOTT's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: CCOI, EWA, Hot Stocks, HOTT, ITMN, MMM, ODP, UPS

America's Car-Mart Inc. (NasdaqGS:CRMT - News) shares jumped Wednesday after the Bentonville, Ark., automotive retailer swung to a loss for the third quarter but said it still expects to be profitable in the fourth quarter. The company lost $50,000 for the three months ended Jan. 31 on revenue of $59.3 million. It added that it's seen a dramatic reduction in its accounts over 30 days due and that it's encouraged by the continuation of this trend into February.

Shares of American Axle Manufacturing (NYSE:AXL - News) surged after J.P. Morgan lifted its rating on the stock to overweight from neutral, citing the potential for the company's 2008 labor contract to include an agreement for "substantial, eventual UAW wage/benefit reductions." The firm said it believes the United Auto Workers union is likely to be sympathetic to American Axle this time around because the company will be the only UAW supplier with high cost OEM(original equipment manufacturer)-level compensation following restructurings at Delphi and Visteon. J.P. Morgan also said the company's management has leverage over the union with regard to future sourcing locations. It estimates a minimum of $1.10 per share in cost savings being secured by the company in the 2008 contract.
Avalon Pharmaceuticals (NasdaqGM:AVRX - News) shares surged after the company formed a drug discovery, development and commercialization collaboration with Merck (NYSE:MRK - News) to identify and develop inhibitors for an undisclosed target that is important in the development of cancer. The deal's terms provide for Avalon to potentially receive payments of more than $200 million as well as royalties on potential future products.
BJ's Wholesale Club Inc. (NYSE:BJ - News) said fourth-quarter earnings fell 77% to $11.9 million, or 18 cents a share, from $51.6 million, or 76 cents, a year earlier, hurt by items. The company said the latest quarter's results included charges of 44 cents a share related to its ProFoods closing expense, asset impairment, pharmacy closing expense, severance payments and a credit-card claim reserve. Excluding one-time items and stock-based compensation expense, the company said non-GAAP earnings fell to 59 cents a share from 77 cents, a year earlier. The Natick, Mass., warehouse-club operator said net sales rose 13% to $2.38 billion from $2.1 billion in the year-ago period.
British Airways Plc (NYSE:BAB - News), Europe's third-largest airline, said it expects fiscal 2008 revenue to increase 5% to 6% on traffic up 2.4% and average fares up 3.4%. The company said it sees fuel costs up by 100 million pounds from a year earlier and total costs excluding fuel up by 50 million pounds. The company said it's on track to reach its target of a 10% operating margin in 2008.
Canadian Natural Resources Ltd. (NYSE:CNQ - News) said its fourth-quarter net profit fell 72% to C$313 million ($265 million), or C$0.58 a share, from C$1.1B, or C$2.06 a share. Revenue before royalties for the quarter fell 9.1% to C$2.83 billion. The company said it booked an after-tax expense of C$99 million related to the effects of risk management activities. In the fourth quarter of 2005 it booked an after-tax gain of C$503 million. The company added that, for the full year, higher commodity prices were accompanied by significant cost inflation. North American natural gas production rose 14% to a record high and crude oil production rose 1% from a year earlier.
The Cheesecake Factory Inc. (NasdaqGS:CAKE - News) said it'll buy back 10 million shares of stock worth about $266 million based on its closing price Tuesday of $26.63 a share. The Calabasas Hills, Calif. will ink an agreement to repurchase $200 million of its shares of common stock through a broker-dealer in an accelerated share repurchase transaction. The company plans to secure a revolving credit facility in the amount of $200 million to replace a temporary credit facility.
Chico's FAS (NYSE:CHS - News) reported fourth-quarter net earnings of $18.2 million, or 10 cents a share, down from $44.5 million, or 24 cents a share, during the year-ago period. The latest results include pretax impairment expenses of about $8.6 million, or 3 cents a share, related to the planned closure of the Fitigues brand operations in the first quarter of fiscal 2007. The Fort Myers, Fla.-based retailer posted net revenue of $446.3 million, up 19% from $375.7 million. Chico's said it will no longer provide specific quarterly or annual sales and earnings outlooks. The company said it believes that if it achieves a low-single-digit same-store sales increase for fiscal 2007, the current consensus analyst estimates for the period "appear reasonable." Chico's said February sales at company-owned stores open at least one year fell 4.3%. Total sales for the four weeks ended March 3 rose 15% to $113.6 million from $98.7 million, Chico's said.
Deere & Co. (NYSE:DE - News) was upgraded to overweight from equal weight at Lehman Bros., which cited increased confidence about the durability of higher agricultural prices and the company's ability to leverage high end market demand. Analyst Joel Tiss also raised his stock price target to $135 from $95 and his 2008 earnings estimate to $8.20 a share from $7.25. Shares of the agricultural and construction equipment maker closed Tuesday up $2.84 at $107.04. They have lost 8.1% since reaching an all-time high of $116.50 on Feb. 22, but are still up 13% since the end of 2006.
First American (NYSE:FAF - News) was upgraded to overweight from equal-weight at Lehman Bros.
Friendly Ice Cream (AMEX:FRN - News) has hired Goldman Sachs as financial advisor, and Weil, Gotshal & Manges as legal advisor, to assist the board in exploring strategic options, including a possible sale of the company. The Wilbraham, Mass.-based company said that while it will review a wide range of options in consultation with its advisors, there can be no assurance of any particular outcome. Friendly, which operates restaurants and manufactures ice cream, said it does not expect to disclose further developments regarding the process until the review of strategic alternatives has been completed.
Joy Global (NasdaqGS:JOYG - News) was upgraded to overweight from equal-weight at Lehman Bros.
Shares of Movie Gallery (NasdaqGM:MOVI - News) rose after the company said it's acquired MovieBeam Inc., a private on-demand movie service. Financial terms of the transaction weren't disclosed but the company expects total incremental expenses related to MovieBeam, including the initial acquisition cost and any ongoing development expenses, to be less than $10 million in 2007. Dothan, Ala.-based Movie Gallery added that the deal includes substantially all of MovieBeam's assets, technology, network operations and customers. The company said MovieBeam content delivery network is available in 31 major metropolitan areas in the U.S.
Office Depot (NYSE:ODP - News) was upgraded to buy from hold at Deutsche Bank.
Panera Bread Co. (NasdaqGS:PNRA - News) said its total system-wide comparable bakery-cafe sales slipped 0.6% in February. For company-owned locations, same-store sales fell 1.3% for the five weeks ended Feb. 27. Panera said this performance reflects severe weather in the Midwest, where it has a high concentration of its bakery-cafes.
Payless ShoeSource Inc. (NYSE:PSS - News) said it plans to acquire privately held Collective International LP in a deal valued at roughly $91 million. Topeka, Kan.-based Payless sees the deal closing in the first half of fiscal 2007. The company expects the deal to be neutral to fiscal 2007 net earnings and to be accretive to fiscal 2008 net earnings. Payless also reported fourth-quarter net earnings of $24.6 million, or 37 cents a share. In the same quarter last year, the company posted a net loss of $5.6 million, or 8 cents a share. The Topeka, Kan.-based retailer said fourth quarter 2006 earnings benefited by the release of $14.3 million, or 22 cents a share, of income tax reserves related primarily to the closing of income tax audits in various jurisdictions. Revenue rose 13% to $692.7 million from $611 million, while comparable store sales in the quarter rose 6.8%.
Saks Inc. (NYSE:SKS - News) swung to a fourth-quarter profit, boosted by an additional week in the quarter and higher same-store sales. The Birmingham, Ala., retailer reported fourth-quarter earnings of $21.5 million, or 14 cents a share, compared with a loss of $2.24 million, or 2 cents a share, a year earlier. Saks said revenue for the quarter ended Feb. 3 rose 17% to $955 million from $817.8 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 22 cents a share on revenue of $921 million. Analyst earnings forecasts typically exclude unusual items.
Take-Two Interactive (NasdaqGS:TTWO - News) shares jumped after Oppenheimer Funds and SAC Capital, a hedge fund, disclosed plans to nominate six new candidates to the company's board.
Talbots Inc.'s (NYSE:TLB - News) fiscal fourth-quarter profit fell 99% to $17,000, with earnings of less than 1 cent a share, from $19.8 million, or 37 cents a share, a year earlier, hampered by higher costs and expenses and deeper post-Christmas discounts. The most recent quarter included 14 weeks while the year-earlier quarter had only 13. Excluding items such as acquisition costs and stock-option expense, the Hingham, Mass., women's clothing retailer said Wednesday that it would have earned 19 cents a share in the quarter ended Feb. 3. Net sales rose 31% to $638 million from $486.2 million.

Published By MarketWatch

Labels: AVRX, AXL, BAB, BJ, CAKE, CHS, CNQ, CRMT, DE, FAF, FRN, JOYG, MOVI, MRK, ODP, PNRA, PSS

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.
Bear Sterns Apr 170 Calls (NYSE:BSC - News). BSC's PowerRating is 7.
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.
New Century Financial Apr 20 Puts (NYSE:NEW - News). NEW's PowerRating is 8.
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.
Goldman Sachs Mar 210 Calls (NYSE:GS - News). GS' PowerRating is 7.
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.
iMCSI Emerging Markets Index Fund Mar 105 (AMEX:EEM - News). EEM's PowerRating is 6.
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.
Questar Corp. (NYSE:STR - News). STR's PowerRating 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.
Public Storage (NYSE:PSA - News). PSA's PowerRating is 7.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Office Depot (NYSE:ODP - News). ODP's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: BSC, EEM, GS, NEW, ODP, PSA, stock options, STR

Mad Mergers: Sirius Satellite Radio (NasdaqGS: SIRI) and XM Radio (NasdaqGS: XMSR)
Cramer smells "desperation" in the intended merger between SIRI and XMSR, and predicts that there will be a spate of anticompetitive mergers ahead of the possibility of a Democrat winning the White House, an event which would discourage future monolopistic mergers. Cramer dedicated the program to discussing ten likely scenarios.
10. Kroger (NYSE: KR - News) and Safeway (NYSE: SWY - News)9. Laboratory Corp. (NYSE: LH - News) and Quest Diagnostics (NYSE: DGX - News): Cramer notes that these two companies have been "locked in a ferocious price war to win the HMO business." Their slashed prices have meant less profits, and "it is time for them to get on the anticompetitive bus."8. Carnival (NYSE: CCL - News) and Royal Carribbean (NYSE: RCL - News)7. Office Depot (NYSE: ODP - News) and Office Max (NYSE: OMX - News)6. Cardinal Health (NYSE: CAH - News) and McKesson (NYSE: MCK - News): Cramer notes that drug distributors have "been at war for wages" hurting themselves by lowering prices. He sees some major mergers in the sector for the next couple of years.5. BP (NYSE: BP - News) and Chevron (NYSE: CVX - News): BP would do well to merge with CVX, according to Cramer, because of CVX's excellent management.4. Lockheed Martin (NYSE: LMT - News) and Northrop Grunman (NYSE: NOC - News): Cramer notes that this merger is likely because the Pentagon doesn't want a lot of vendors.3. Comcast (NasdaqGS: CMCSA) and Time Warner (NYSE: TWX - News)2. Gannett (NYSE: GCI - News) and McClatchy (NYSE: MNI - News): Cramer believes that this merger is essential because it could "save the newspaper business."1. Union Pacific (NYSE: UNP - News) and Burlington Northern (NYSE: BNI - News): Cramer says that this is his favorite possible merger.
Cramer also sees Norfolk Southern (NYSE: NSC - News) and CSX (NYSE: CSX - News) pairing up, and describes all of these possibilities as "a wave of mergers that will be great for profits."

Labels: BNI, BP, CAH, CCL, CVX, DGX, Jim Cramer, KR, LH, LMT, Mad Money, MCK, ODP, OMX, RCL, SIRI, SWY, TWX, UNP, XMSR

Labels: DCX, DE, GENZ, KO, ODP

1 800 Flowers.com (NasdaqGS:FLWS - News) was downgraded to sell from neutral by Goldman Sachs on valuation groups, as the shares are about 15% above its year-end price target of $6.50. "Calendar year 2008 to 2011 revenue growth above 5% is unlikely without greater-than-expected levels of spending, which would put our 13% profit growth estimate, and thus our price target, at risk. The current share price may reflect an overly optimistic outlook for Valentine's Day, Easter, and Mother's Day," the broker said.
Advancis Pharmaceutical (NasdaqGM:AVNC - News) has received a "refusal to file" letter from the Food and Drug Administration for its Amoxicillin Pulsys new-drug application. The Germantown, Md., pharmaceutical company said the letter requests additional information on its planned commercial manufacturing processes. Last December, Advancis submitted an NDA for once-daily Amoxicillin Pulsys to treat adolescents and adults with acute strep throat. The company plans to meet with the FDA as soon as possible to discuss the issues and to reach agreement on what additional information is required for the filing to be accepted.
Agnico-Eagle Mines Ltd (NYSE:AEM - News) agreed to buy Cumberland Resources Ltd in an all-stock deal valuing the Canadian gold mining company at C$710 million ($605 million). Agnico-Eagle said it will exchange 0.185 of its shares for every Cumberland share, representing a 28.8% premium to Cumberland's closing price on Feb. 13. Cumberland owns the Meadowbank gold project, which is currently under construction with proven and probable reserves of 2.9 million ounces. Production is due to begin in 2010 and will increase projected gold production at Agnico-Eagle by 39% in 2010 to 1.3 million ounces.
Carter (NYSE:CRI - News) shares tumbled after the company said its fourth-quarter net sales rose 7.7% to $377.5 million and earnings were 45 cents a share, including charges of 1 cent a share for share-based compensation and 1 cent a share for amortization charges. On average, analysts polled by Thomson Financial expected earnings of 46 cents a share. The analyst estimate includes share-based compensation but excludes the amortization charges. Carter's said fourth-quarter weakness is now impacting 2007 results, which are being hurt by changes in the mix and levels of inventory in our stores. Carter's said it's made progress reducing OshKosh's cost structure in 2006, but more work is still required and the benefits won't be realized until the second half of 2007. As a result the company expects first-quarter sales of $305 million, up 3% from a year ago, and earnings of 14 cents, down 46% from a year ago. For fiscal 2007, Carter's now expects net sales of $1.4 billion to $1.42 billion, up 4% to 5%, and earnings of $1.42 to $1.49 a share, flat to up 5%. The company expects no growth in same-store sales in 2007.
Champion Enterprises Inc. (NYSE:CHB - News) fourth-quarter net income declined to 5 cents a share from 8 cents a share, in the year-earlier period. The Michigan producer of manufactured and modular homes reported revenue fell to $300.9 million from $375.5 million. Analysts polled by Thomson Financial had expected revenue of $332 million.
Choice Hotels (NYSE:CHH - News) shares pulled back after the company said its fourth-quarter earnings improved to $24.6 million, or 37 cents a share, from a year-earlier profit of $21.6 million, or 32 cents a share. On an adjusted basis, earnings were 36 cents a share. Revenue rose to $143.7 million from $122 million. Wall Street, according to Thomson Financial, expected the company to post fourth-quarter earnings of 35 cents a share and revenue of $133 million. The company expects to post first-quarter earnings of 23 cents a share and full-year earnings of $1.59 a share. Wall Street expects first-quarter earnings of 28 cents a share and 2007 earnings of $1.67 a share.
Daktronics' (NasdaqGS:DAKT - News) shares dropped after the Brookings, S.D.-based company reported fiscal third-quarter net income of $7.03 million, or 17 cents a share, compared with $4.04 million, or 10 cents a share, in the year-ago period. Revenue rose to $106.7 million from $71.1 million. Analysts were expecting a per-share profit of 16 cents on revenue of $112.6 million. The company expects fourth-quarter earnings in the range of 12 cents to 19 cents a share on revenue of $106 to $118 million.
Delta Air Lines Inc. (Other OTC:DALRQ.PK - News) said its fourth-quarter loss widened to $1.98 billion from $1.24 billion. The Atlanta airline, in Chapter 11 bankruptcy, said it recorded $1.8 billion in charges in the quarter, consisting of $2.5 billion for reorganization items and a $719 million income tax-related gain from the reversal of liabilities under its pilot pension plan. Revenue in the three months ended Dec. 31 rose 5.3% to $4.14 billion from $3.92 billion. Delta, the No. 3 network airline, said it recorded its first annual operating profit since 2000.
Gen-Probe Inc. (NasdaqGS:GPRO - News) said its fourth-quarter net earnings rose slightly to $17.1 million, or 32 cents a share, compared with $16.8 million, or 32 cents a share, in the same period last year, on the back of higher sales. Excluding stock-based compensation, the San Diego-based maker of tests to diagnose disease posted per-share earnings of 38 cents. Revenue rose 3.5% to $91.1 million from $88 million. Analysts polled by Thomson Financial had expected per-share earnings of 29 cents, on revenue of $89 million. For 2007, Gen-Probe expects per-share earnings of $1.26 to $1.34, on revenue of $380 million to $390 million. Separately, the company said it has named Carl Hull chief operating officer.
Harris Corp. (NYSE:HRS - News) was downgraded to neutral from overweight at J.P. Morgan.
Host Hotels (NYSE:HST - News) was downgraded to hold from buy at Citigroup.
La-Z-Boy (NYSE:LZB - News) swung to a third-quarter net loss of 15 cents a share, as it recorded a 28-cent loss from discontinued operations. In the year-earlier period, the furniture company earned 20 cents a share. La-Z-Boy said revenue fell to $403.9 million from $446.6 million. For the fourth quarter, the company expects sales to fall 8% to 10% from the year earlier, with earnings per share of 3 cents to 7 cents.
Masco Corp. (NYSE:MAS - News)swung to a fourth-quarter loss of 49 cents a share from net income of 41 cents, in the year-earlier period on higher impairment charges and a 5.8% decline in sales. Profit from continuing operations before items decreased to 38 cents a share from 50 cents. Fourth-quarter sales fell to $2.95 billion. Analysts surveyed by Thomson Financial, on average, expected the Taylor, Mich., company to earn 36 cents a share on revenue of $2.95 billion.
Office Depot Inc. (NYSE:ODP - News) said its fourth-quarter earnings rose to 48 cents a share from 34 cents in the year-earlier period. The 2005 results include a 53rd week. Excluding certain charges and the effect of a 53rd week in 2005, Office Depot earned 54 cents a share, up from 38 cents. The Delray Beach, Fla., office-supply retail chain said sales rose to $3.84 billion from $3.72 billion. Analysts polled by Thomson Financial, on average, expected earnings of 52 cents a share, excluding items, on revenue of $3.89 billion.
Playboy Enterprises (NYSE:PLA - News) was downgraded to neutral from buy at both UBS and Banc of America Securities. Banc of America lowered its price target to $12 from $13, while UBS cuts its target to $12.50 from $14.
PNM Resources Inc. (NYSE:PNM - News) fourth-quarter net income rose to 49 cents a share from 10 cents in the year-earlier period. The Albuquerque, N.M., energy holding company's revenue declined to $619 million from $646.5 million. Analysts polled by Thomson Financial were looking for revenue of $690 million. The board also approved a 4.6% increase in the quarterly dividend, to 23 cents a share, payable May 18 to holders as of May 1.
Stifel Financial, (NYSE:SF - News), the St. Louis brokerage and investment-banking firm, reported fourth-quarter net income rose 50% on 73% higher revenue.
Telik Inc. (NasdaqGM:TELK - News) plans to cut its workforce by about 25% as part of a corporate restructuring plan to reduce spending. The Palo Alto, Calif., biopharmaceutical company expects to record about $1.6 million in restructuring and severance costs for the first quarter. After the job cuts, the company will have about 120 employees.
Therma-Wave (NasdaqGM:TWAV - News) said KLA-Tencor Corp. has indicated that the German Federal Cartel Office initiated a Phase 2 review of KLA's proposed acquisition of Therma-Wave. Therefore, the acquisition of Therma-Wave may only be consummated if the FCO approves the acquisition. The tender offer has been extended to March 15.
United Auto Group (NYSE:UAG - News) reported fourth-quarter earnings of $29.9 million, or 32 cents a share, up from a year-ago profit of $30.1 million, or 32 cents a share. On a continuing operations basis, the company earned $31.1 million, or 33 cents a share, in the latest quarter. Revenue rose 22.8% in the latest three months to $2.88 billion from $2.35 billion a year earlier. The company said same-store retail revenue rose 7.1% in the quarter. The average estimate of analysts polled by Thomson Financial was for a profit of 33 cents a share in the December period. Looking ahead, the Bloomfield Hills, Mich., automotive retailer said it expects earnings from continuing operations of 26 to 30 cents a share for the first quarter and $1.40 to $1.50 a share for fiscal 2007. Wall Street's current consensus estimates are for earnings of 30 cents a share and $1.56 a share for the respective periods.
US Airways Group Inc. (NYSE:LCC - News) said PAR Investment Partners LP, which had been the carrier's largest holder, sold 6.5 million of its 13.5 million shares to help diversify its portfolio. After the sale, PAR Investment Partners will remain one of US Airways' largest investors, the stock will remain the largest position within PAR's portfolio, and Edward Shapiro, PAR vice president, will remain on the airline's board.
Vion Pharmaceuticals' (NasdaqCM:VION - News) shares slumped after the New Haven, Conn.-based company said it has agreed to sell up to $60 million of convertible senior notes due 2012 and warrants to purchase up to 7.8 million of its shares in a private placement. The offering is expected to close on Feb. 20. Vion expects to use the proceeds of the offering for general corporate purposes.
Watts Water Technology (NYSE:WTS - News) shares fell after the North Andover, Mass.-based maker of water safety and flow control products late Tuesday reported fourth-quarter net earnings of $18.1 million, or 51 cents a share, up from $15 million, or 45 cents a share, in the year-ago period. Revenue rose to $330.5 million from $244.4 million. Analysts polled by Thomson Financial were expecting a per-share profit of 61 cents on revenue of $313.5 million.
Weight Watchers International's (NYSE:WTW - News) fourth-quarter earnings rose to $44.3 million, or 45 cents a share, from $38.9 million, or 38 cents a share, a year earlier. Excluding a $6.3 million benefit from the reversal of tax reserves, earnings were 39 cents a share in the latest quarter. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of 39 cents a share, before items. The New York provider of weight-management services said revenue for the fourth quarter increased 14% to $285.5 million from $251.2 million a year ago. Wall Street was looking for revenue of $275 million. Weight Watchers expects 2007 earnings of $2.33 to $2.47 a share, including 2 cents a share of debt expense.

Published By Michael Baron of MarketWatch

Labels: AEM, AVNC, CHB, CHH, CRI, DAKT, FLWS, GPRO, HRS, LCC, LZB, MAS, ODP, PLA, PNM, TELK, TWAV, UAG, VION, WTW

Here are 7 stocks to watch for today. This list comes directly from the TradingMarkets Stocks Indicators page.
Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
CenturyTel (NYSE:CTL - News). CTL's PowerRating is 5.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Columbia Laboratories (NASDAQ:CBRX - News). CBRX's PowerRating is 6.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term up trends.
AZZ Incorporated (NYSE:AZZ - News). AZZ's PowerRating is 6.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order to qualify as a "Trading Window" candidate, we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average.
Hewlett-Packard (NYSE:HPQ - News). HPQ's PowerRating is 6.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Office Depot (NYSE:ODP - News). ODP's PowerRating is 4.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Dril-Quip (NYSE:DRQ - News). DRQ's PowerRating is 4.
Short Windows Candidates: These are stocks which are in a strong downtrend, as determined by a proprietary trend filter and whose current bar has its low above the 4-day moving average. Historically, these stock on average have had a larger than normal short-term downside reversals. In order to qualify as a "Trading Window" candidate, the 10-period ADX must be 30 or higher and the -DI must be greater than the +DI. Or we must have a 14-period -DI reading of above 30 (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its low of the day above the 4-period moving average.
Fluor (NYSE:FLR - News). FLR's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AZZ, CBRX, CTL, DRQ, FLR, Hot Stocks, HPQ, ODP

A Blockbuster Year: Microsoft (NASDAQ: MSFT - News), Best Buy (NYSE: BBY - News), Office Depot (NYSE: ODP - News), Home Depot (NYSE: HD - News), Lowe's (NYSE: LOW - News) and Costco (NASDAQ: COST - News), Wal-Mart (NYSE: WMT - News), Target (NYSE: TGT - News)
Cramer says that although drugs and tech were not "good enough" last year and had a "bad last 10 days," they are suddenly getting a boost, while investors are backing away from oil.
When Aaron Task pointed out Goldman Sach's downgrade of some tech stocks, Cramer responded that while January is usually tough for tech, the trend will be "flipped" because of a tremendous upsurge in PCs. The catalyst is Microsoft's Vista which will drive BBY and ODP away from marketing their large-screen TVs in favor of advertising their PCs.
Cramer would sell HD now and buy it lower, and dismissed rumors of a leveraged buyout, since HD is too large for an LBO. Its main problem, according to Cramer, was that it was run as a financial company by former CEO Bob Nardelli, while LOW and COST are more pleasant places to shop. Cramer would also sell Wal-Mart, which demonstrates the principle that "underinvesting in the stores and trying to save its bottom line is not a way to save a retailer." Cramer says he would rather own Target, but would avoid retailers which sell alot of winter clothes.
Task called 2006 an unexpected "blockbuster" year, and Cramer noted that while the upsurge began in July, it could keep going for another six or seven months. "The lesson of last year is that the worry should be that you are not bullish enough," Cramer said. With low inflation, high profits and the possibility that the Fed will cut interest rates, "Being careful could be reckless here," he said.
Published By SeekingAlpha

Labels: BBY, COST, HD, Jim Cramer, LOW, MSFT, ODP, TGT, Wall Street Confidential, WMT