Jim Cramer Blog

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
On Semiconductor (NasdaqGS:ONNN - News). ONNN's PowerRating (for Traders) is 6.
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.
ImClone Systems (NasdaqGS:IMCL - News). IMCL's PowerRating (for Traders) is 6.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Medicines Company (NasdaqGS:MDCO - News). MDCO's PowerRating (for Traders) is 3.
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.
Sara Lee (NYSE:SLE - News). SLE's PowerRating (for Traders) 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.
Autozone (NYSE:AZO - News). AZO's PowerRating (for Traders) is 3.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
American International Group (NYSE:AIG - News). AIG's PowerRating (for Traders) 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.
Moody's (NYSE:MCO - News). MCO's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: AIG, AZO, Hot Stocks, IMCL, MCO, MDCO, ONNN, SLE

Hercules Inc. (NYSE:HPC - News) said net income for the fourth quarter swung to a profit of $242.1 million, or $2.14 a share. In the same period last year, the company posted a net loss of $79.2 million, or 73 cents a share.
Shares of Hovnanian Enterprises (NYSE:HOV - News) gained after Banc of America Securities upgraded the stock to buy from neutral. Analyst Daniel Oppenheim cited improving buyer traffic in the company's core markets, solid cash flow which could be used for future acquisitions, its strategy of using options to control land, and attractive valuation. "We think Hovnanian was among the most conservative builders in the way that it assessed write-downs," the analyst wrote in a Thursday research note.
I2 Technologies (NasdaqGM:ITWO - News) shares rose after the Dallas-based provide of supply chain management software reported fourth-quarter net earnings applicable to common stockholders of $14.3 million, or 54 cents a share, down from $69.4 million, or $2.69 a share, in the year-ago period. Revenue fell to $79.6 million from $96.6 million. Analysts polled by Thomson Financial were expecting a per-share profit of 27 cents on revenue of $72.2 million. For 2007, the company expects earnings of 90 cents to $1.10 a share. Excluding stock option expense and contract revenue, I2 forecast earnings of $1.25 to $1.45 a share.
L-1 Identity Solutions (NYSE:ID - News) confirmed an outlook for earnings of 2 to 4 cents a share in the fourth quarter on revenue of between $75 million and $80 million. For the year, the Stamford, Conn., personal identity protection and security products provider said it expects earnings of 8 to 12 cents a share on revenue ranging from $330 million to $340 million.
Landstar System (NasdaqGS:LSTR - News) said its fourth-quarter net income fell 31% to $28.7 million, or 50 cents a share, from $41.8 million, or 70 cents a share, in the year-earlier period. The Jacksonville, Fla.-based transportation and logistics provider said accounting for stock-based compensation reduced its net income by 2 cents a share. Analysts polled by Thomson Financial forecast earnings, on average, of 47 cents a share and sales of $649 million. Landstar said its revenue fell 24% to $611.3 million.
Lehman Brothers (NYSE:LEH - News) increased its annual dividend by 25% to 60 cents a share from 48 cents a share. The dividend for the first quarter of 2007 is 15 cents a share, payable Feb. 21 to holders of record as of Feb. 12. Lehman Brothers also announced the continuation of its common stock repurchase program with up to 100 million shares of stock.
Magma Design Automation (NasdaqGM:LAVA - News) shares gained after the company received a favorable ruling in a patent dispute with Synopsys (NasdaqGS:SNPS - News) and IBM (NYSE:IBM - News). "We are extremely pleased with this ruling," said David Stanley, Magma corporate vice president, Corporate Affairs, in a statement. "It is a major step toward dismissal of infringement claims with regard to these two patents."
Monster Worldwide Inc. (NasdaqGS:MNST - News) disclosed selected financial targets for 2007, saying its ability to make a full forecast is hindered by legal fees and other potential costs associated with the inquiry into the company's stock-option practices. Among other things, revenue was pegged by management in a range of $330 million to $338 million for the first quarter and in a range of $1.36 billion to $1.41 billion for all of 2007. According to estimates compiled by Thomson Financial, analysts' average forecasts stand at $321 million and slightly more than $1.36 billion, respectively. The company also reported fourth-quarter net income of $39.1 million, or 30 cents a share, up from $36.1 million, or 28 cents, earned in the final three months of 2005. Quarterly revenue for the New York-based online employment clearinghouse reached $298.6 million from the prior year's $223.8 million. Earnings from continuing operations were 31 cents a share for the latest quarter, Monster Worldwide said. Analysts were looking for earnings of 33 cents a share on revenue of $296 million, according to estimates compiled by Thomson First Call.
Old Dominion Freight Line (NasdaqGS:ODFL - News) shares leapt after the Thomasville, N.C., motor carrier reported fourth-quarter earnings of $17.8 million, or 48 cents a share, up from a year-ago profit of $14.7 million, or 39 cents a share. Revenue rose 12% in the latest three months to $319.4 million from $285.2 million in the same period a year earlier. The performance was ahead of its outlook for a profit of 40 to 43 cents a share for the quarter.
ON Semiconductor (NasdaqGS:ONNN - News) shares jumped after the electronics chipmaker reported fourth-quarter profit quadrupled and surpassed Wall Street's targets. On Semi said fourth-quarter net income rose to $87.4 million, or 27 cents a share, compared with net income of $21.2 million, or 7 cents a share, a year ago. The latest quarter included an insurance settlement and real-estate sales, which added 3 cents a share. For the three months ended Dec. 31, sales rose 17% to $401.6 million from $341.8 million. Analysts polled by Thomson Financial had estimated On Semi would report sales of $395 million and earnings of 17 cents a share. The Phoenix-based company makes audio and power management chips used in mobile phones, cars and computers. Its biggest customer in the quarter was Motorola Inc., which represented 7% of total sales.
Oshkosh Truck Corp. (NYSE:OSK - News) said its JLG Industries unit was awarded a $102.2 million contract by the Army for the purchase of military telescopic material handlers.
Polo Ralph Lauren (NYSE:RL - News) was initiated with a market weight rating at Thomas Weisel Partners.
Pulte Homes Inc. (NYSE:PHM - News) reported a fourth-quarter net loss of $8.41 million, or 3 cents a share. During the same period a year ago, the company posted net earnings of $574.5 million, or $2.19 a share. The loss from continuing operations was $8.3 million, or 3 cents a share.
Sierra Wireless was upgraded to outperform from market perform at Piper Jaffray. The firm lifted its price target on the stock to $20 from $14.
Silgan Holdings Inc. (NasdaqGS:SLGN - News) said fourth-quarter net income rose, as revenue gained, to $20.8 million, or 55 cents a share, from $14 million, or 37 cents a share, during the same period in the prior year.
Snap-On Inc. (NYSE:SNA - News) reported better-than-expected earnings late Wednesday. It said fourth-quarter net income rose to $38 million, or 64 cents a share, up from $27.4 million, or 47 cents a share, in the year-ago period. Profit in the most recent quarter included 5 cents a share from lower income tax expense. The provider of tools and equipment for professionals said sales in the last three months of 2006 rose 16% to $656 million, helped by its November acquisition of ProQuest Business Solutions. Analysts polled by Thomson Financial had expected earnings of 51 cents on revenues of $610.7 million.
Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT - News) said its fourth-quarter net income rose 27.7% to $203 million, or 93 cents a share, from $159 million, or 70 cents a share a year earlier. Revenue for the period ending Dec. 31 rose 3.7% to $1.57 billion. Excluding special items, the firm said earnings from continuing operations rose to 92 cents a share from 71 cents a share. Analysts polled by Thomson Financial were expecting earnings of 73 cents a share on revenue of $1.58 billion. Starwood said growth was driven by an 11.4% rise in worldwide revenue per available room as well as growth in margins. Starwood also said it expects earnings per share for 2007 to be around $2.50.
Tollgrade Communications (NasdaqGS:TLGD - News) reported fourth-quarter non-GAAP earnings of 14 cents a share on revenue of $16.6 million, coming in at the high end of its previously disclosed outlook.
Valero Energy Corp. (NYSE:VLO - News) reported fourth-quarter earnings of $1.11 billion, or $1.80 a share, down from a year-ago profit of $1.35 billion, or $2.06 a share. The latest results include a pre-tax gain of $196 million, or 21 cent a share, related to an asset sale. Excluding items, the company earned $987 million, or $1.59 a share, in the latest quarter. Operating revenue fell in the latest three months to $19.79 billion from $25.89 billion in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of $1.37 a share in the December period.
VeriSign Inc. (NasdaqGS:VRSN - News) posted fourth-quarter total revenue of $412.6 million, compared with $389.1 million during the year-ago period. The company did not report full results due to the previously announced review of its historical stock option grants, which it said is now substantially completed.
Webex Communications (NasdaqGS:WEBX - News) said that fourth-quarter earnings rose 23% to $16.7 million, or 33 cents a share, from $13.6 million, or 28 cents a share, a year earlier. Excluding items, the Santa Clara, Calif., provider of Internet services said earnings rose to 42 cents a share from 30 cents a share. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of 38 cents a share, excluding items, on revenue of $101.4 million. Revenue rose 22% to $101.9 million from $83.7 million in the year-ago period. The company expects first-quarter earnings of 29 cents to 31 cents a share on revenue of $105 million to $108 million.
Published By MarketWatch

Labels: HOT, HOV, HPC, IBM, ID, ITWO, LAVA, LEH, LSTR, MNST, ODFL, ONNN, OSK, PHM, RL, SLGN, SNA, SNPS, TLGD, VLO

Bullish calls:
NYSE Group (NYSE: NYX - News): 'NYX is still my growth stock of the year.'Altria (NYSE: MO - News): ' ... that's my number 1 value stock of the year, and we've been making money in that name. 'Public Storage (NYSE: PSA - News): 'PSA is one of those incredible situations where I believe... this group's in bull market mode, and it is not about to stop, and I think PSA is two thumbs up, way up!'Tower Group (NASDAQ: TWGP - News): ' I like the insurance business. Obviously, a little expensive versus price to book, because it sells at like 4x book. But it's growth rate is equal to its P/E multiple.'Transocean (NYSE: RIG - News)GlobalSantaFe (NYSE: GSF - News)Wells Fargo (NYSE: WFC - News): 'WFC - best in show quarter.'JPMorgan (NYSE: JPM - News): 'I suggest you swap into JPM.' WFC - best in show quarterJ.C. Penney (NYSE: JCP - News): 'Let me just tell you to be in some JCP.'
Bearish calls:
General Motors (NYSE: GM - News): 'GM is in a holding pattern. It can't do anything until the numbers start getting better. Had they not lost Jerry York ... the stock would have gone to $40. Right now, it is strictly 'don't buy, don't buy...'Hertz Global (NYSE: HTZ - News): ' Take the money and run! I don't want to be there.'Intercontinental Exchange (NYSE: ICE - News): 'The ICE still does not melt... I do not understand why this stock is so strong, other than it trades oil... I still like NYX more. Don't buy, don't buy.'LoJack (NASDAQ: LOJN - News): 'They missed the quarter.'Del Monte Foods (NYSE: DLM - News): ' ... it has been historically a bad investment, and it's not going to change. That company is poorly run!'ON Semiconductor (NASDAQ: ONNN - News): 'No, no, no. Time to ring the register. That particular part of the tech bull market is on hold until August.'DivX (NASDAQ: DIVX - News): 'We recommended it at $18. It was a fabulous call. We pulled the trigger. When it got to $28, we said enough is enough. It's back to $21. I'm not going away from that.'King Pharmaceuticals (NYSE: KG - News): ' ... I have disliked KG for as long as this stock has been going down. I don't like the generics. I reiterate my sell on KG. 'Tata Motors (NYSE: TTM - News): 'I cannot in good conscience say that I am going to recommend that you buy it, but I am certainly, certainly going to tell you - if you own TTM - you can hold it, but you better do a little schnitzelling...'Hercules Offshore (NASDAQ: HERO - News): 'This is an example of the need to be selective. I want you to sell HERO. I don't like the U.S. offshore market.'The Bank of New York (NYSE: BK - News): ' I'm not a big fan of stocks that have already announced big deals.'Aeropostale (NYSE: ARO - News): 'No. I don't need that teen ghetto - it's too hard for me.'

Published By SeekingAlpha

Labels: BK, DIVX, DLM, GM, GSF, HERO, HTZ, ICE, JCP, JPM, KG, LOJN, MO, NYX, ONNN, PSA, RIG, TTM, TWGP, WFC