Jim Cramer Blog

Stick with agriculture and recession stocks, Jim Cramer said on CNBC's "Stop Trading!" segment Friday.
"Mosaic (MOS) is terrific. ... I think Agrium (AGU) is a catch-up ... to Mosaic," Cramer said. "You're going to do better with that than ... betting against Procter (PG)."
More broadly, Cramer believes the market is frantic as shorts try to cover their bets on the bond insurers. "Today's a big short-squeeze day. 'Let's short squeeze Ambac (ABK) and MBIA (MBI).'"
In the financial sector, Cramer expects more take-unders like Bank of America's (BAC) purchase of Countrywide (CFC). He foresees Washington Mutual (WM) on the auction block, adding that CEO "Kerry Killinger is doing his best to do a bad job. ... Washington Mutual at $15 is like Countrywide at $8."
Cramer encouraged investors to play conservatively. "I would be partial to Coke (KO)," he said, adding that he was encouraged that commodity prices are down for the soft-drink company. Pepsi (PEP) is another good pick, he added.
Published By TheStreet.com

Labels: AGU, BAC, CFC, CNBC's Stop Trading, Jim Cramer, KO, MBI, MOS, PEP, PG, WM

Amback (ABK), Wachovia (WB), Countrywide Financial (CFC), MGIC (MTG), Washington Mutual (WM), Fannie Mae (FNM), Freddie Mac (FRE), Pepsico (PEP), Colgate (CL), Procter and Gamble (PG), Diageo (DEO)
Cramer said the Fed's liquidity strategy is going to make banks suffer more and noted the bad performance of ABK, WB, CFC, MTG, WM, FNM and FRE. He said favorite defensive stocks PEP, CL, PG and DEO were thriving. Cramer called on the Fed to vacate its Ivory Tower and find out what is really going on in the market.
Apple (AAPL), Hewlett-Packard (HPQ), Google (GOOG), Research in Motion (RIMM), Intel (INTC), Nvidia (NVDA), Texas Instruments (TXN), Sigma Designs (SIGM), AT &T (T)
Cramer commented if the Fed had cut half a point, there would be more stocks to recommend, but with a quarter point interest rate reduction, it looks like slim pickings, except for tech. His perennial favorites in the sector: AAPL, HPQ, GOOG, RIMM, INTC, NVDA, TXN are in great shape, Cramer said.
In addition, Cramer singled out Sigma Designs as a play on the decline of cable companies and as comparable services are provided by telephone companies. AT &T announced it is spending $5 billion on its U-verse TV service, and Sigma, which designs the chips for service, will benefit. Analysts raised their price targets after Sigma reported a fantastic quarter, and the company has a high quality problem of not making enough chips to meet demand. Cramer suggests letting SIGM come down a bit before buying.
Published By SeekingAlpha

Labels: AAPL, ABK, CFC, CL, DEO, FNM, FRE, GOOG, HPQ, INTC, Jim Cramer, Mad Money, MTG, NVDA, PEP, PG, RIMM, TXN, WB, WM

The Dow closed up 51 points and the S&P 500 finished up 6 points. Crude oil is closing in on $100 as we near Thanksgiving. John Kilduff, an analyst at MF Global, joined the show to discuss his take on oil. He predicts the top on crude could be in area of $108 to $110. Adami favors Chevron (CVX), which he feels is cheaper then ExxonMobil (XOM). He advises looking at refiners like Tesoro (TSO) here. Finerman owns Tesoro and she is also looking at buying ConocoPhillips (COP).
Regional airlines are benefiting from the delays and congestion at larger airports. Airlines like Midwest (MEH) and Allegiant (ALGT) are benefiting from this trend. Adami says the way to play this trend is to buy the private jet makers like Textron (TXT), General Dynamics (GD), Embrear (ERJ) and Honeywell (HON).
For Defensive stocks Najarian likes Merck (MRK), Genentech (DNA) and Biogen (BIIB). However, Finerman would get defensive with names like Altria (MO) and Kraft (KFT). Adami also recommends Altria, Unilever (UL) and Procter & Gamble (PG).
Word on the Street
Target (TGT) reported a 4.4% fall in profits.
Whole Foods Market (WFMI) reported a decline in fourth-quarter profits, but sales top Wall Street estimates.
Google (GOOG) trades up 4% after Credit Suisse raised their price target to $900. Najarian believes names like Research In Motion (RIMM), Google and Apple (AAPL) are starting to show strength again. He would look to get back into these stocks around these levels. Adami prefers Microsoft (MSFT).
Najarian would keep an eye on ISIS Pharmaceuticals (ISIS) and Sangamo Biosciences (SGMO).
Pops & Drops
Pops - Barnes & Noble (BKS) traded up 13% after reporting higher internet sales.
Exxon (XOM) traded up 4% after UBS upgraded the stock.
Kraft (KFT) traded up 2%.
Utilities EFT (XLU) traded up 1%.
Drops - Office Depot (ODP) fell 7% after reporting a 9% decline in profits.
Echostar (DISH) fell 7%
Ericsson (ERIC) fell 12%
Hovnanian (HOV) fell 9%.
GameStop (GME) fell 4% after the video game maker missed analyst estimates.
Saks (SKS) fell 2% after missing estimates.
Final Trade
Macke likes the price action in Microsoft (MSFT).
Adami recommends Freeport McMorRan (FCX).
Finerman says to short the iShares Dow Jones US Real Estate ETF (IYR).
Najarian would purchase Pulte Homes (PHM) for a short term buy.

Labels: ALGT, BIIB, CNBC, CNBC's Fast Money, COP, CVX, erj, Fast Money, GD, GOOG, HON, MEH, MRK, PG, TGT, TSO, TXT, UL, WFMI, XOM

Merrill Lynch (MER)- There was speculation on Wall Street that Stan O'Neal will be removed as CEO and Chairman of the Board over the weekend. CNBC's Charlie Gasparino joined the show to discuss O'Neal leaving. Gasparino says rumors are out that Larry Fink the CEO of BlackRock could be named the new Chairman and the CEO position might be split between Greg Flemming and Bob McCann. Najarian said he still would be a buyer of Merrill and that if O'Neal doesn't go, he expects the stock to go down to $55. However, Macke advocates shorting Merrill when O'Neal leaves.
BEA Systems (BEAS)- Carl Icahn has sent a letter to the board of BEA saying its time to come to the negotiating table with Oracle (ORCL). Rumors are that BEA wants $21 share and Oracle offered $17. The offer is set to expire on Sunday.
Microsoft (MSFT) traded up 15% after profits and revenues handily beat Wall Street estimates. Macke remarks that the earnings were great especially from Microsoft and the shorts are getting crushed. Finerman feels the market is very confusing with tech performing well, but many financial stocks doing poorly. Adami prefers Intel (INTC) here and noted that the Citigroup analyst put a $33 price target on the name. Najarian favors Apple (APPL)
Rate Cut- The crew then discussed how next week the Federal Reserve will meet to decide on interest rates and the jobs report will be released. Najarian thinks that the Fed is going to cut rates and that's why the financials flew Friday. He advocates staying with the good sectors like technology and asset mangers and avoid the rest. Macke and Finerman agree that the jobs number will be the best indicator for the economy.
Crude oil hit another record Friday trading above $92. Adami points out how Exxon (XOM) isn't rallying into record oil prices and suggests the company might miss earnings. XOM has a rich valuation and the price action signals that it may move lower. Adami admits that Exxon scares him in front of earnings. He thinks if Exxon reports bad results, it could take the Dow lower. Finerman mentioned that Kirk Kerkorian's Tracinda is looking to buy 16% of Tesoro (TSO).
Procter & Gamble (PG) is also set to report earnings on Tuesday. Procter is one of Macke's favorite trades in front of earnings. Finerman likes Procter as well and Kraft (KFT) which reports earnings on Wednesday. Manitowoc (MTW) is also set to report on Wednesday, which Najarian is partial to.
Quicker than the Ticker- On October 23rd Najarian said buy Vmware (VMW). He nailed the call and the stock has risen 10%. On September 27th Macke recommending buying Yahoo (YHOO). Macke was right and the stock appreciated 20% since his call. On September 20th Adami said buy Microsoft (MSFT). Adami was on the money and Microsoft killed Wall Street's estimates and traded up 11%.
Fast Fire- On October 5th Macke recommending buying Coach (COH). Macke was way off and Coach fell 21% since his call. On October 15th Najarian favored Broadcom (BRCM). He dropped the ball on BRCM and the stock fell 16% after disappointing earnings. On September 12th Adami said he loved Zimmer Holdings (ZMH). Since his call the stock has dropped 15%. On October 1st Finerman advised investors to buy put options on Garmin (GRMN). The stock has risen 9% since her call and she is now admitting defeat and moving on.
Pops & Drops
Pops - Merck (MRK) traded up 8%.
Goldman Sachs (GS) traded up 8%.
DeVry (DV) exploded up 47%.
Deckers Outdoor (DECK) traded up 34% on strong profits.
Baidu.com (BIDU) traded up 12% after profits more than doubled.
Black and Decker (BDK) popped 18% on strong international sales numbers.
Monster Worldwide (MNST) traded up 12% on strong profits.
Drops - Schering Plough (SGP) fell 7% after missing Wall Street estimates.
WellCare Health Plans (WCG) plunged 73% after the FBI raided their offices.
Final Trade
Macke favors Intel (INTC).
Adami recommends Dell (DELL).
Finerman says short the United States Oil Fund (USO).
Najarian grabs a buy ticket for Baker Hughes (BHI).

Labels: BEAS, BRCM, CNBC, COH, Fast Money, Fast Money Recap, MER, MSFT, PG, VMW, ZMH

Bullish
Proctor and Gamble (PG), better play than Unilever in this sector.
ValueClick (VCLK), Cramer thinks that this stock is still a buy.
UPS (UPS), bullish on the stock over the long term despite the current slowdown in the economy.
Omniture (OMTR), Cramer is bullish on the stock, and thinks that it will get bought out in the next year.
Aecom (ACM), still a great infrastructure play and that it is still cheap.
KBR (KBR),
Foster Wheeler (FWLT),
Salesforce.com (CRM) - likes their product and their sales model
Oracle (ORCL).

Bearish
Taser (TASR) - it is time to cash out
Smith & Wesson (SWHC).

Labels: ACM, CRM, FWLT, Jim Cramer, KBR, Lightning Round, Mad Money Lightning Round, OMTR, ORCL, PG, VCLK

Cramer started the Lightning Round by recommending that holders of Baidu.com (BIDU) and Focus Media (FMCN) take some profits off the table. The holders of these stocks should sell half their holdings.

Bullish:
Cisco (CSCO) is a better choice than Arris Group
Procter & Gamble (PG)
AK Steel (AKS): Cramer recommended owning AKS on the potential for a takeover.
Go with Wynn (WYNN) and Las Vegas Sands (LVS) instead
Republic Services (RSG): Likes it but would go with Waste Management (WMI) is the best-of-breed stock in this space.
Altria (MO): Stick with it and buy more if it goes below $65.
Intuitive Surgical (ISRG): "One of the great growers."
Freeport-McMoRan (FCX): Cramer expects FCX to go $120, but he wouldn't frown on investors taking profits.
Cramer likes Best Buy (BBY) or Lululemon (LULU) better.
Chipotle (CMG) instead of Buffalo Wild Wings
Garmin (GRMN): Cramer likes the stock, but it's up too much today.

Bearish:
Harman International (HAR): Wait until December to look at.
Arris Group (ARRS): Overpay
Global Payments (GPN): Cramer's not interested.
Melco (MPEL): Three boo's
E*Trade (ETFC): Cramer isn't bullish on the stock just yet. He said he doesn't think it goes below $9.
GigaMedia (GIGM): Cisco (CSCO) is the better play here also.
hhgregg Inc (HGG): No
Buffalo Wild Wings (BWLD): Cramer thinks you should get out of Buffalo Wild Wings

Labels: AKS, BBY, BIDU, CMG, CSCO, FCX, FMCN, GRMN, ISRG, Jim Cramer, Lightning Round, LULU, LVS, Mad Money, MO, PG, RSG, WYNN

Procter & Gamble (PG): Procter & Gamble is cheap to the mid-$70s. Stay in it.

Dominion (D): Cramer gives it the triple buy!

Omniture (OMTR): "Stock is going to $35. Do not sell."

Boeing (BA): Sotck goes to $120. Boeing "all aboard."

Ceragon Networks (CRNT): "Just go buy Cisco (CSCO)"

Intuitive Surgical (ISRG): Wait until you have $10,000 or more. Cramer endorses the stock.

Archer Daniels Midland (ADM): Buy Deere (DE), Monsanto (MON), and Bunge (BG) instead. "52 week high."

Seagate (STX): Cramer doesn't like the disk drive stocks, and thinks you should go with Intel (INTC) or Hewlett-Packard (HPQ).

Chevron (CVX): Cramer thinks you have to own the stock unless you own ExxonMobil (XOM) or ConocoPhillips (COP).

Labels: ADM, BG, COP, CRNT, CSCO, CVX, D, DE, HPQ, INTC, ISRG, Jim Cramer, Lightning Round, Mad Money, MON, OMTR, PG, STX, XOM

Playing it Safe with Procter & Gamble (NYSE: PG - News)
As interest rates go lower, dividends will rise in value, and Cramer recommends PG as a "money in the bank" dividend stock. While at first glance, few would be impressed by a $64 stock with a 2.2% yield, Cramer reminded viewers that PG was at $30 in 2000. Reinvesting PG's dividend is like having "compound interest" said Cramer and he lauds PG for its "mega buyback." He predicts PG will reach $90 and is a good way to "Fed-proof your portfolio."
How Much is that PetSmart in the Window? VCA Antech (NasdaqGS: WOOF - News), PetMed Express (NasdaqGS: PETS - News) and PetSmart (NasdaqGS: PETM - News)
The heated discussion over NFL star quarterback Michael Vick's upcoming trial shows "people won't stand for cruelty to animals," said Cramer who unveiled some of his pet picks and peeves. One pet peeve was WOOF's "piled-up debt," but he liked discount pet pharmacist PETS for its personalized care. However, his best pet pick was PETM, which is up $3 from where he recommended it in January. PETM is known for selling "high-class premium" items and has $245 million cash on hand. PETM will remain the victor as its main rival, Petco, will probably close stores after being taken over by a "debt-ridden" company.
Everybody out of the Poole: Bear Stearns (NYSE: BSC - News), Countrywide Financial (NYSE: CFC - News), Goldman Sachs (NYSE: GS - News)
Cramer defended his vigorous criticism of St. Louis Federal Reserve President William Poole, who said interest rates should be raised, not lowered. Cramer accused Poole of "single-handedly attempting to destroy" the market and said he should put in his resignation. Senator Kent Conrad (D, N.D), chairman of the Budget Committee, was Cramer's guest caller and said Poole's proposal was "reckless and irresponsible" and would cause a calamity. He added difficulties at BSC, CFC and GS speak for themselves. Conrad added Poole' s statements showed a "lack of confidence" in the market, and Cramer concluded the segment with his hope that " people on Wall Street are as considerate as those in the Senate."
Mad Mail: Altria (NYSE: MO - News), Melco PBL Entertainment (NasdaqGM: MPEL - News), Las Vegas Sands (NYSE: LVS - News) and Wynn Resorts (NasdaqGS: WYNN - News)
Cramer says there is "good news coming" at Altria with a rise of 5 points to the 70s but not the 80s, since it is a stock "everybody already owns" and has limited upside. Atlhough he liked the IPO, Cramer says MPEL is now worst of breed and prefers LVS or WYNN.
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Labels: BSC, CFC, GS, Jim Cramer, LVS, Mad Money, MO, MPEL, PETM, PETS, PG, WOOF, WYNN

Pepsi (NYSE: PEP - News), Procter & Gamble (NYSE: PG - News), Schering-Plough (NYSE: SGP - News) and Pfizer (NYSE: PFE - News): Cramer says the household goods sector is healthy given Pepsi's rise after Goldman Sach's downgrade. He also likes PG and SGP. He commented this sector did well during the 1990s' credit crisis which he compares to current subprime woes. Cramer would even think about Pfizer on the principle that "if anything good happens at Pfizer, you've got a good upside."

Labels: Jim Cramer, PEP, pfe, PG, SGP, Stop Trading

The Skinny on Kraft (NYSE: KFT - News) and Proctor and Gamble (NYSE: PG - News)
After Tuesday's dismal trading day, Cramer believes the Fed will be willing to accept a recession, anything that will beat inflation, "even if even if it means the electric bleachers for my hedge fund and trading fund friends." As expected, Cramer recommended defensive stocks, and especially KFT, which may sell "loser brands" such as Maxwell House, especially since Carl Icahn and Nelson Peltz have a stake in the company. He also thinks PG will jettison brands that aren't working to preserve its capital.

CEO Interview: Timothy Wallace, Trinity Industries (NYSE: TRN - News)
Timothy Wallce doesn't think TRN's steep 20% slide last month is an indication of a longer-term decline for the company, and comments Trinity purchased 20% equity in TRIP Rail Holdings. While Cramer thinks TRN may have a good long-term story, he would be careful since, "the numbers may be too high here."
Treehouse Foods Inc. (NYSE: THS - News) and B & G Foods Inc. (NYSE: BGS - News)
While Kraft and Proctor and Gamble are getting rid of "crummy" brands, THS and BGS are masters of acquiring tired names and giving them new life. Cramer described THS as a risky stock which has been on an acquisition spree, and owns household brands Santa Fe, Del Monte and Oxford. THS' profits have increased 42% year-over-year in the second quarter. B & G's buys neglected brands such as Ortega, Cream Of Wheat and Underwood, is a conservative investment which reported a 12.3% increase in net sales last quarter and is worth owning for the dividend, according to Cramer. He says both companies are "thrice-blessed" because they are recession-proof and consolidate their expenses to reduce raw costs; "We like the dividends, and we like the brands."
The Last Man Standing; The Travelers (NYSE: TRV - News)
In spite of the current environment, Cramer says money can be made from insurance companies which continually invest and are "gigantic cash machines." He would stick with TRV which is the "last man standing" and is ranked 89 in the Fortune 500. He predicts TRV will go higher on the current housing situation.
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Labels: BGS, Jim Cramer, KFT, Mad Money, PG, THS, TRN, TRV

Thornburg Mortgage (NYSE: TMA - News), Washington Mutual (NYSE: WM - News), Lehman Brothers (NYSE: LEH - News), KB Home (NYSE: KBH - News), Beazer Homes USA (NYSE: BZH - News), Procter & Gamble (NYSE: PG - News), Coca-Cola (NYSE: KO - News), and Colgate (NYSE: CL - News)
Cramer predicts around 7 million "teaser" mortgages are likely to be defaulted and recommends "staying defensive," by avoiding real estate and bank stocks such as TMA, WM, LEH, KBH and BZH and investing in soft goods such as PG, KO and CL. While the Fed thinks mortgage woes will pass, Cramer still believes the Fed should cut rates.
Schering-Plough (NYSE: SGP - News)
Cramer thinks SGP is an excellent stock for the current environment and notes sales are up 13% since last year. He adds the company is not leveged to mortgaes and he believes in Fred Hassan, who was one of Cramer's transformational CEOs. He would wait until buying SGP, and while the current economic climate is not good, "we have no control on what the Fed will do," Cramer said.
Vodafone (NYSE: VOD - News),Verizon Wireless (NYSE: VZ - News)
VOD is a good international play and the world's best wireless carrier. Cramer thinks VOD will raise more revenues than the competition, owns a "serious chunk" of VZ, is successful in emerging economies and has a strong dividend.
CEO Interview: Jack Cumming, Hologic (NasdaqGS: HOLX - News) with Cytyc (NasdaqGS: CYTC - News)
Jack Cumming talked about the upcoming merger with CYTC, which will mean $400 million to $50o million in EBITDA and nine top women's health products. Cumming added the company can afford the acquisition and there is no financial risk.
Published by SeekingAlpha

Labels: BZH, CL, CYTC, HOLX, Jim Cramer, KBH, KO, LEH, Mad Money, PG, SGP, TMA, VOD, VZ, WM

Colgate-Palmolive (NYSE: CL - News), Coca-Cola (NYSE: KO - News), Procter & Gamble (NYSE: PG - News): Cramer would buy rather than sell defensive stocks such as CL, KO, and PG. He told investors not to hold their breath for a Fed rate cut. "I think the Federal Reserve has a game plan," he said, "and the plan is to wipe out anyone who speculated." Cramer predicts the Fed is expecting a recovery with the upcoming election.

Labels: CL, Jim Cramer, KO, PG, Stop Trading

Equities once again fell hard in afternoon trading after credit worries and some rather soft economic news brought the bears out of their two-day hibernation. The Dow, Nasdaq, and S&P 500 all ended the week on a sour note with each losing more than -2%. In the energy pits, news of a slowing economy helped drive down the price of oil, with crude ending the session lower by -$1.38 to $75.48.
On the economic docket today, the Labor Department said that employers added fewer jobs in July than forecast. For the month just ended, payroll growth slowed to 92,000 jobs, down from 126,000 in the prior month. The jobless rate increased to 4.6% from 4.5%. In a separate report, the Institute for Supply Management showed service industries, which include banks and retailers, expanded less than expected.
Shares of Bear Sterns (NYSE: BSC - News) plunged -5.9% on the day after the company said its profitability in the current quarter may sink to a historical low following losses in its hedge funds as well as exposure to the tumbling mortgage market. However, top brass at the Wall Street investment firm defended its company stating, "The firm's liquidity position, capital adequacy, and funding capacity remains extremely solid, notwithstanding the current market conditions." Also on the day, Standard & Poor's downgraded Bear's long-term credit to negative from stable.
On the earnings front, Japanese automaker Toyota Motor (NYSE: TM - News) posted a 32% jump in profits in its fiscal fourth quarter. The company reported net income of 491.5 billion yen on sales of 6.52 trillion yen, an increase of 15.7% over the same period last year. Profits were fueled by increased sales of vehicles overseas.
Consumer product giant Proctor & Gamble (NYSE: PG - News) earned $2.27 billion, or 67 cents a share, in its fourth quarter, up from $1.9 billion, or 55 cents a share, in the year-ago period. Sales rose 8% to $19.27 billion. Analysts were looking for a profit of 66 cents per share on revenue of $19.11 billion. The company also said it would buy back $24-30 billion of its own stock over the next three years and that it expects to post earnings of 88-90 cents for the first quarter. It sees full-year earnings coming in at a range of $3.44-3.47. Shares fell -0.5%. Subscribers can read our analysis of Proctor & Gamble in today's issue.
Timber company Weyerhauser (NYSE: WY - News) said net earnings plunged -89% on the back of a weak housing market. For the second quarter, the company reported net earnings of $32 million, or 15 cents a share, down from $298 million, or $1.19 a share, last year. Excluding one-time items, it earned $104 million, or 48 cents a share. Revenue declined -11% to $4.33 billion. Shares reversed earlier gains and ended the session down -3.1%.
By the BullMarket.com Staff

Labels: BSC, PG, TM, WY

Consumer products maker Procter & Gamble Co., boosted by strong sales of new Gillette razors, reported Friday that its profit for its fourth quarter and the full year each rose 19 percent.

The company behind the Tide, Crest and Pringles brands also confirmed its earnings-per-share guidance for fiscal 2008 and announced plans to substantially increase its stock buyback.
Net income for the quarter ended June 30 rose to $2.27 billion, or 67 cents per share, from $1.9 billion, or 55 cents per share, a year earlier.
Sales rose 8 percent to $19.27 billion from $17.84 billion, led by double-digit increases in blades and razors, fabric and home care, and health care. Sales from businesses it has owned for more than a year rose 5 percent, while foreign exchange contributed 3 percent to sales growth.
On average, analysts surveyed by Thomson Financial forecast a quarterly profit of 66 cents per share on sales of $19.11 billion.

Labels: PG, Procter and Gamble Co.

Buy CIT (CIT), Jim Cramer said Monday on CNBC's "Stop Trading!" segment.
Cramer said last week's bad quarter was "scary" as it showed the lender briefly became "a cesspool of bad mortgages." But Cramer added that the New York financial firm is "a really smart company" that's mostly focused on commercial lending, an area Cramer believes "is not causing the problems" in the financial sector. He said he'd buy the stock, which hasn't recovered off last week's hammering.
Cramer said he likes Colgate (CL), Clorox (CLX) and Procter & Gamble (PG) amid signs of a slowdown in worldwide growth.

Labels: CIT, CL, CLX, Jim Cramer, Jim Cramer's Stop Trading, PG

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

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

By the BullMarket.com Staff

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

Breaking Up is Good to Do: Citigroup (NYSE: C - News)
The best thing C could do, according to Cramer, other than ridding itself of "Clown Prince" [CEO Chuck Prince] is to split itself up; "I think the one-stop shop for everything financial doesn't work." Cramer predicts if C breaks up into five businesses, the stock will jump from from $54 to $63. However, since such a move is not definite, Cramer warns investors of the "calculated risk" involved in buying C.
CEO Interview, Mary Sammons of Rite Aid (NYSE: RAD - News)
Cramer observed the company is 50% up from last year, expects more upside on the close of its Eckerd deal, and says it is "striking distance" from Walgreen. When he asked Mary Sammons about the benefits of the acquisition, she replied, "We believe there are even greater margin and revenue opportunities not included in our forecast." On the subject of the company's debt, Sammons commented cash flow created by the purchase of new stores will help RAD balance its budget. Cramer is still bullish on RAD and predicts it will reach $8 or $9.
Sparkling Clean Ingredients: Colgate - Palmolive (NYSE: CL - News) and Procter and Gamble (NYSE: PG - News)
In Latin America, Chinese-produced toothpaste was found to have DEG, a chemical used in antifreeze which should not be consumed even in trace amounts, according to the FDA. This is good news for CL, which Cramer preferst to PG because CL has a larger international presence. In addition, Cramer comments CL is a "leaner, meaner company" which should grab substantial market share from "lumbering giant" PG.
Mad Mail: aQuantive (NasdaqGS: AQNT - News), Raser Technologies (NYSEArca: RZ), Corning (NYSE: GLW - News)
Cramer told a viewer he would sell AQNT since it has been taken over. Responding to another question, he said RZ is too speculative and he would buy GLW instead.
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Labels: AQNT, C, CL, GLW, Jim Cramer, Mad Money, PG, RAD, RZ

More Dow Picks: Pfizer (NYSE: PFE), Procter & Gamble (NYSE: PG), United Technologies (NYSE: UTX), Verizon (NYSE: VZ ), Wal-Mart (NYSE: WMT), Walt Disney (NYSE: DIS)
Cramer says PFE is "stuck" and owning the stock is a bit like owning a bond with a tad more upside. He admits he was too bullish on PG when he predicted it could go to $67 on the weak dollar and organic growth. However, Cramer says he wasn't bullish enough on UTX which is doing well internationally and is in "hyper-drive." He predicts UTX is headed to $73. Cramer also admits he underestimated VZ's fiberoptics and its wireless, and he would buy it for its yield and growth in spite of its 14% rise. WMT should go to $52 but not higher, predicts Cramer, as long as CEO Lee Scott is in charge. While he likes DIS, he thinks its parks will be casualty to gas prices and the success of its Pirates of the Caribbean film is priced into the stock.
Call Me Darling (AMEX: DAR)
Cramer says Darling is "as speculative as it gets" with one business that transforms animal fats into oil and a restaurant business. DAR is "en fuego," but Cramer would wait for a big selloff before buying. After that, DAR needs more analysts covering it before it tops off, and Cramer predicts the stock will go "through the roof" when it moves into the renewable energy sector. Like Tyson, DAR could go into biodiesel, but it will get pummeled first, and when it does, Cramer would buy.

Game Plan for the Coming Week: Polo Ralph Lauren (NYSE: RL), Costco (NasdaqGS: COST), Sears (NasdaqGS: SHLD)
Cramer would stay away with tech, and would move into retail. He recalled RL got "creamed" after its last quarter, which was excellent, but which led to a selloff because of a negative perception about the company's guidance. Therefore, Cramer would buy half a position before RL reports and half after. While he praises COST as a "delivery machine" he believes the company will continue to be misunderstood, and would buy after its earnings report. Cramer suggests pickkng up SHLD if it gets pummeled, and if not, to wait for the next drop in the stock.

Labels: COST, DAR, DIS, Jim Cramer, Mad Money, pfe, PG, RL, SHLD, UTX, VZ, WMT

Procter & Gamble (NYSE: PG), Avon (NYSE: AVP), Unilever (NYSE: UN), Colgate-Palmolive (NYSE: CL), Coca-Cola (NYSE: KO), General Mills (NYSE: GIS), Kellogg (NYSE: K)
Cramer is perplexed by PG's performance; "This should have been their quarter," he said. He is now questioning the company's Gillette acquisition, its buybacks and product lines. On the other hand, AVP, UN, CL, KO, GIS and K all reported strong quarters while PG has businesses in every one of those sectors. Cramer discussed how AVP CEO Andrea Jung finally pulled it together and AVP moved from $34 to $38 and $39. Cramer feels there is still room for AVP to run, especially as investors start selling PG.

Labels: AVP, CL, Dennis Kozlowski, GIS, Jim Cramer, K, PG, UN, Wall Street Confidential