Jim Cramer Blog

Stocks traded off across the board as Wall Street looked to digest service reports and private employment numbers and determine what effect they may have on the Fed's decision whether to cut rates at its next meeting. On the day, gold prices fell, while oil was relatively flat on the New York Mercantile Exchange. The dollar was mixed against other major currencies.
On the economic front, a report delivered by the Institute for Supply Management showed that the service sector expanded at a slower pace in September than in August. The trade group's non-manufacturing index fell in August from 55.8 to 54.8, as expected. A report reading above 50 indicates economic growth, while a figure below 50 signals contraction. The index is now at its lowest levels since March of this year.
In earnings news, sandwich and bakery chain Panera Bread (Nasdaq: PNRA - News) preannounced sales for the third quarter, saying it sees a 35% increase in revenue to $276 million from $205 million the prior year. Same-store sales grew 1.5% for company-owned stores and 0.3% at franchises. The company anticipates EPS to fall within a range of 35-37 cents. Analysts were projecting a third-quarter profit of 34 cents per share. Panera closed up 8% for the day. P.F. Chang's China Bistro (Nasdaq: PFCB - News), meanwhile, warned that it would miss its third-quarter earnings and sales forecasts due to wage pressures, higher capital costs and a fire at a facility. Shares dropped -2.8%.
The third-largest U.S. oil company, ConocoPhillips (NYSE: COP - News), announced that profit from its global refining operations would likely be down significantly from the previous quarter, and added that oil and gas production numbers would be off, as well. The company attributed the decline in output to the seizure of its Venezuelan assets, pipeline damage in the United Kingdom, and planned downtime in other areas. ConocoPhillips is scheduled to report its recently completed third-quarter results on October 24th. Shares of the oil company were off -1.7% at the bell.
Shares of Deutsche Bank (NYSE: DB - News) closed up 1.3% after the company announced that it expects net profit to rise in the third quarter to more than $2 billion, despite sizeable write-downs stemming from the global credit market issues. The company said robust earnings growth in other sectors should help offset the credit-related hits. Germany's biggest bank also reiterated its targets for 2008.
M&A speculation has Goldman Sachs (NYSE: GS - News) looking to take over Credit-Based Asset Servicing & Securitization LLC, a struggling subprime mortgage firm, in the coming weeks for approximately $500 million, according to a person familiar with the matter. Goldman, renown for its opportunistic investing abilities, has recently indicated that the end of the subprime lending fiasco may be close at hand and has expressed an interest in the depressed sector.

Labels: COP, DB, GS, PFCB, PNRA

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 Underpriced 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.
Goldman Sachs July 260 Calls (NYSE:GS - News). GS' PowerRating is 5.
Most Underpriced 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.
Joy Global July 50 Puts (NasdaqGS:JOYG - News). JOYG's PowerRating is 5.
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.
Google Inc. July 540 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 4.
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.
iShares MSCI Emerging Markets Index July 115 Puts (AMEX:EEM - News). EEM's PowerRating 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.
Commerce Bancorp (NYSE:CBH - News). CBH's PowerRating 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.
None Today
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.
Novellus Systems (NasdaqGS:NVLS - News). NVLS' PowerRating is 5.
PF Chang's China Bistro (NasdaqGS:PFCB - News). PFCB's PowerRating is 4.
PowerRatings are courtesy of TradingMarkets.com

Labels: CBH, EEM, GOOG, GS, Hot Stock Options, JOYG, NVLS, PFCB

P.F. Chang's China Bistro, Inc. (NASDAQ: PFCB - News) today reported consolidated revenues of $264.4 million for the first quarter ended April 1, 2007 compared to $228.6 million for the first quarter of 2006. Sales at the company owned P.F. Chang's China Bistro restaurants accounted for $207.0 million of consolidated revenues, sales at the company's Pei Wei Asian Diner restaurants accounted for $56.7 million of consolidated revenues and sales at the company's Taneko Japanese Tavern restaurant accounted for $0.7 million of consolidated revenues.
For the 13 weeks ended April 1, 2007, comparable store sales decreased 2.5% at the Bistro (taking into account a 2% to 3% effective price increase) and increased 0.5% at Pei Wei (taking into account a 2% to 3% effective price increase) as compared to the 13 weeks ended April 2, 2006. Comparable store sales at the Bistro decreased 2.9%, 1.6% and 3.0% for January, February and March, respectively, and decreased 1.4% in January and increased 2.7% and 0.5% for February and March, respectively, at Pei Wei.

Labels: PF Chang's China Bistro Inc., PFCB

General Growth Properties (NYSE:GGP - News) was upgraded to neutral from reduce at UBS.
Genzyme Corp. (NasdaqGS:GENZ - News) reported a fourth-quarter loss of $268.2 million, or $1.02 a share, down from earnings of $106.6 million, or 39 cents a share, in the year-ago period. Excluding items, most notably a charge related to its acquisition of AnorMed, the company posted non-GAAP (generally accepted accounting principles) earnings of $209 million, or 77 cents a share, for the fourth quarter. Revenue rose 17% in the latest three months to $854.2 million from $728.7 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 75 cents a share in the December period. Looking ahead, Genzyme forecast earnings of $1.90 to $2 per share for 2007. The company expects a non-GAAP profit of $3.05 to $3.15 a share for the year. It sees revenue of $3.6 billion to $3.8 billion for 2007. In the first quarter, the Cambridge, Mass., biotechnology company anticipates non-GAAP earnings in the low 70 cents range. Wall Street's current consensus estimates are for earnings of 73 cents a share in the March quarter and $3.17 a share for fiscal 2007.
Hanger Orthopedic Group (NYSE:HGR - News) posted fourth-quarter earnings of $4.9 million, or 17 cents a share, as sales rose 3.2% to $153.9 million. The performance was in line with Wall Street's consensus profit estimate.
Invitrogen (NasdaqGS:IVGN - News) posted quarterly results that beat Wall Street's expectations and agreed to sell its BioReliance Corp. unit, which provides biological safety testing, to Avista Capital Partners, a private equity firm, for $210 million.
Jarden Corp. (NYSE:JAH - News)reported fourth-quarter earnings of 52 cents a share, up from 4 cents in the year-earlier period. The Rye, N.Y., consumer-products company posted adjusted profit of 80 cents a share, up from 51 cents. Sales rose 9% to $1.1 billion. The average estimate of analysts polled by Thomson Financial was profit of 73 cents a share.
Journal Communications Inc. (NYSE:JRN - News) said its fourth-quarter net profit rose 39.9% to $23.4 million, or 33 cents a share, from $16.7 million, or 23 cents a share a year ago. The media company, which has operations in publishing, radio and television, said total revenue for the quarter rose 15.3% to $186.6 million, driven by strong growth at its broadcasting division after acquiring three television stations in December 2005. The firm also benefited from an extra week in the fourth quarter compared to a year ago. For the first quarter, the company said it expects publishing revenue to fall, reflecting continued challenges in automotive advertising.
Knight Capital Group (NasdaqGS:NITE - News) said January average daily dollar value traded fell 9.2% to $9.06 billion, from $9.97 billion in the year-ago period. However, January came in 17.3% ahead of December's average daily dollar value of $7.72 billion. Average daily U.S. equity trade volume in January 2007 was 1.1 million, up 1.1% from 1 million in the year-ago period and up 11.2% from 953,000 in December.
Kreisler Manufacturing (NasdaqCM:KRSL - News) shares surged after the Elmwood Park, N.J.-based maker of metal components and assemblies reported fiscal second-quarter net earnings of $607,000, or 33 cents a share, up from $289,794, or 16 cents a share last year. Revenue rose to $6.02 million from $4.43 million.
Macrovision Corp. (NasdaqGS:MVSN - News)reported fourth-quarter earnings of 31 cents a share compared with 9 cents a share, in the year-earlier period. Excluding equity-based compensation charges and other items, the Santa Clara, Calif., software concern earned 43 cents vs. 36 cents. Revenue rose 22% to $74.1 million. Analysts polled by Thomson Financial had expected earnings of 42 cents on revenue of $73 million. The company also said the U.S. Attorney's Office withdrew its subpoena related to Macrovision's stock-option review.
MGM Mirage (NYSE:MGM - News) said fourth-quarter earnings more than doubled, boosted by a 13% increase in gaming revenue, an 8% increase in hotel revenue, its share of profits from the sale of Tower 2 condominium units at The Signature at MGM Grand and pretax income of $86 million from Hurricane Katrina insurance recoveries. The Las Vegas entertainment, hotel and gaming company had fourth-quarter earnings of $201.6 million, or 69 cents a share, compared with $97.8 million, or 33 cents a share, a year earlier. MGM Mirage said revenue for the quarter ended Dec. 31, 2006, rose 11% to $2.02 billion from $1.82 billion a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 48 cents a share on revenue of $1.81 billion. Analyst earnings forecasts typically exclude unusual items.
Molina Healthcare Inc. (NYSE:MOH - News) fourth-quarter net income rose to 41 cents a share from 38 cents in the year-earlier period. Analysts polled by Thomson Financial had expected 41 cents. The managed care company's revenue increased to $549.5 million from $423.2 million; Wall Street was looking for $541 million. Molina backed its view for fiscal 2007 earnings per share of $1.75 to $1.90.
New York Times Co. (NYSE:NYT - News) and Monster Worldwide Inc. (NasdaqGS:MNST - News) formed a strategic alliance for help-wanted advertising. Under the agreement, 19 of the publishing company's Web sites, including The New York Times, The Boston Globe, the Worcester Telegram & Gazette and newspapers throughout the Southeast and California, will co-brand online recruitment advertising Web sites with Monster.
P.F. Chang's China Bistro (NasdaqGS:PFCB - News)reported fourth-quarter earnings per share were flat at 34 cents a share. Revenue rose to $252 million from $213.8 million. The latest results reflect $1.5 million in equity-based compensation expense and $400,000 in additional pre-opening expenses. The average estimate of analysts polled by Thomson Financial was profit of 26 cents a share. Looking ahead, the Scottsdale, Ariz., restaurant operator sees earnings of $1.45 a share in fiscal 2007 with revenue increasing 19% to $1.1 billion. Wall Street's current consensus estimate is profit of $1.38 per share in 2007.
Sigma-Aldrich (NasdaqGS:SIAL - News) fourth-quarter profit rose to 53 cents a share from 42 cents in the year-earlier period. The chemicals maker's sales rose 13% to $464.5 million. Analysts polled by Thomson Financial had forecast earnings of 47 cents on revenue of $449 million. The St. Louis company expects to earn $2.15 to $2.25 a share this year.
SPSS Inc. (NasdaqGS:SPSS - News) reported fourth-quarter net income dropped 66% to $2 million, or 10 cents a share, from $5.89 million, or 30 cents a share, a year earlier. The Chicago company said the latest quarter included a non-cash charge of $6.9 million related to an income tax expense, which cut earnings by 33 cents a share. On average, analysts polled by Thomson Financial expected earnings of 34 cents a share. Analyst estimates typically exclude unusual items. Total net revenue jumped 14% to $71.1 million from $62.2 million a year ago, driven by increased sales across all product lines and major geographical regions. SPSS's operating income rose 36% to $11.7 million from $8.6 million a year ago. Looking ahead, SPSS expects first-quarter revenue of $68 million and $70 million, and earnings of 23 cents to 27 cents a share, excluding 6 cents a share for stock-based compensation. For 2007, the company expects revenue of $285 million to $295 million, and earnings of $1.20 to $1.30 a share, excluding 26 cents a share for stock-based compensation expense.
Total (NYSE:TOT - News) fourth-quarter adjusted net income declined 10% to 2.74 billion euros ($3.6 billion), or 1.20 euros a share. Sales slipped 6% to 36.4 billion euros after hydrocarbon production declined 2.5% in the quarter to 2.4 million barrels of oil equivalent a day. The output decline followed governments taking a bigger share of production plus asset divestments and security-related shutdowns in the Niger Delta. The French oil giant expects to raise hydrocarbon production by an average of more than 5% a year to 2010. Surplus cash flow will be used to buy back shares, Total said.
Unibanco (NYSE:UBB - News) said its 2006 net income rose 20.2% to 2.2 billion Brazilian reais ($1.04 billion). Operating income for the year rose 20.5% to 3.52 billion reais. Total assets reached 104 billion reais in December, up 13% from a year earlier. "Unibanco remains satisfied and confident with the ongoing results and the continuous improvement of its performance," the bank said in a statement.
Varian Semiconductor (NasdaqGS:VSEA - News) was upgraded to buy from neutral at UBS. The firm said it expects the company's share of the ion implant market to improve to around 48% from 39%. UBS said the decision by Applied Materials Inc. to cease future development of its beamline ion implant product will leave Varian as one of only two suppliers in the sector. As well as improved market share, Varian should also be able to benefit from better pricing in the sector as competition eases, UBS added.
Shares of Wolseley plc (NYSE:WOS - News) jumped following a report that Cinven is considering a 10 billion pound takeover offer for the building products company. The potential deal was reported in the CityAM newspaper, which cited unnamed sources.

Published By Michael Baron of MarketWatch

Labels: GENZ, GGP, HGR, IVGN, JAH, JRN, KRSL, MGM, MNST, MOH, MVSN, NITE, NYT, PFCB, SIAL, SPSS, TOT, UBB, VSEA, WOS