Jim Cramer Blog

Investors should take a hard look at their portfolios and make some sales tomorrow after today's huge rally, Jim Cramer told viewers. Cramer advised selling into any future rallies to free up cash for the declines that are most certainly ahead. Get into position for the next big sale, he told viewers. He said today's 410-point rally in the Dow was entirely due to rumors that the federal government is considering a resolution mortgage trust to begin buying up bad home loans in an effort to rescue the U.S. banking system. Cramer said a resolution trust will not only put a floor in the housing market but is far more effective and inexpensive than the current plan of nationalizing entire companies. He said the Federal Reserve needs to cut interest rates to 1% to spur growth and add liquidity into the markets. He again urged the re-instatement of the uptick rule, which is designed to prevent relentless short-selling of companies. And finally, Cramer said regulation is needed to stop the credit default swap activity that companies have been engaging in. All of these things, said Cramer, are what the markets need to finally put the housing and financial crisis behind us.
The State of Housing - Pulte Homes (PHM)
Richard Dugas, president and CEO of Pulte Homes, talked about the state of the housing market. Dugas said he still feels there's a ways to go before the housing market hits bottom. He said that while the situation is improving, there is still a lot of excess home inventory that needs to be worked off. On the upside, Dugas confirmed that deposit cancellation rates, which peaked in 2007, have moderated so far in 2008. For would-be homeowners, Dugas said now is a great time to buy a home, citing low mortgage rates and depressed home values that make owning a home more attractive than renting. When questioned about Pulte's financials, Dugas said his company currently has one of the best balance sheets in the industry, with over $1 billion in cash. With the housing market still underselling the growth rate and pent-up demand for homes building, Cramer and Dugas agreed that now may be a great time to buy a home and shares of Pulte Homes.
Published By SeekingAlpha

Labels: Jim Cramer, Mad Money, PHM

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Piedmont (NYSE:PNY - News) reports earnings on Monday before the bell, with traders looking for -$0.05 EPS. PNY's PowerRating (for Traders) is 6.
When Immucor (NasdaqGS:BLUD - News) reports earnings on Wednesday after the close, traders will be watching for $0.24 EPS. BLUD's PowerRating (for Traders) is 5.
KB Home (NYSE:KBH - News) dropped about 3.5% on Friday, following an extremely weak new home sales report out of the U.S. KBH's PowerRating (for Traders) is 5.
Pulte Homes (NYSE:PHM - News) also fell on the news, down over 2% for the day. PHM's PowerRating (for Traders) is 4.
Cal-Maine Foods (NasdaqGM:CALM - News) rallied 9% on Friday after announcing a massive increase in Q2 net income from the same period last year. CALM's PowerRating (for Traders) is 3.
CDC Corporation (NasdaqGM:CHINA - News) rallied 23% on Friday after announcing that the company's directors and executives have purchased nearly 500k shares of the company over the last week. CHINA's PowerRating (for Traders) is 2.
Checkpoint Software (NYSE:CKP - News) rallied 15% after announcing a new CEO. CKP's PowerRating (for Traders) is 4.

Labels: BLUD, CALM, CHINA, CKP, Hot Stocks, KBH, PHM, PNY

Here are 7 trading ideas for today. This list comes directly from the TradingMarkets Stock Indicators page and is based upon our latest quantitative research.
Bullish
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.
Nuance Communications (NasdaqGS:NUAN - News). NUAN's PowerRating (for Traders) is 7.
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.
Netflix (NasdaqGS:NFLX - News). NFLX's PowerRating (for Traders) is 7.
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.
Arthrocare (NasdaqGS:ARTC - News). ARTC's PowerRating (for Traders) is 7.
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.
Pulte Homes (NYSE:PHM - News). PHM's PowerRating (for Traders) is 5.
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.
Genentech (NYSE:DNA - News). DNA'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.
Dean Foods (NYSE:DF - News). DF'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.
Dendreon (NasdaqGM:DNDN - News). DNDN's PowerRating (for Traders) is 1.
Published By TradingMarkets.com

Labels: ARTC, DF, DNA, DNDN, Hot Stocks, NFLX, NUAN, PHM

Pulte Homes (NYSE: PHM - News) announced today financial results for its third quarter and nine months ended September 30, 2007. For the quarter, the Company reported a loss from continuing operations of $787.9 million, or $3.12 per share, compared with income from continuing operations of $191.5 million for the prior year third quarter, or $0.74 per diluted share. The third quarter 2007 loss included $1.18 billion on a pre-tax basis, or $3.33 per share after-tax, recorded for impairments, land-related charges and impairment of goodwill, compared with $87.7 million, or $0.22 per diluted share for the third quarter of 2006.
Consolidated revenues for the quarter were $2.5 billion, a decline of 31% from prior year revenues of $3.6 billion.
"The operating environment continues to be challenged with elevated levels of new and resale home inventory, tightening of mortgage liquidity, and weak consumer sentiment for housing," said Richard J. Dugas, Jr., President and CEO of Pulte Homes. "In the midst of these conditions, in the third quarter we were profitable on a pre-impairment basis, which exceeded the higher end of the guidance we previously provided of $0.10 to $0.20 per diluted share, exclusive of impairments or land-related charges. We also modestly improved our cash position, while reducing outstanding debt under the revolving credit facility. We remain focused on maintaining a strong, transparent balance sheet, generating additional cash, and managing SG&A costs to better match this challenging operating environment."

Labels: PHM, Pulte Homes Inc.

The Fed's 50 point cut on Tuesday sparked the stock market, and CNBC's "Fast Money" discussed why the bulls are running, and what it means for financial stocks:
Najarian: Tuesday's actions all about the financials. Financial Select Sector SPDR, ton of volume in call options.
Macke: Can't be short financials now.
Adami: continues to like financials; Lehman Brothers(LEH), Goldman Sachs (GS) and Morgan Stanley (MS)
All Clear on Wall Street? CNBC's Charlie Gasparino discussed whether brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns (BSC)--lease diversed and tied to credit markets.
OIL: Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Author Dennis Gartman: Shocked by feds decision. Thinks stock market will continue to climb.
Housing Market: Adami: housing stocks are back for a trade. He likes Hovanian, (HOV), Toll Brothers (TOL) and Pulte Homes (PHM)
Finerman: Still likes Home Depot(HD), which she owns for its cheap valuation.
Word on the Street: Cummings (CMI) and Caterpillar (CAT) exploded higher on the Fed cut. Najarian: Thinks CAT has much more upside to come.
Global: China and Brazil's markets soared on the rate cuts. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and Brazil ETF (EWZ)
Face 2 Face:
Viewer writes: "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.
Viewer writes: "Should I sell my October $195 call options on Goldman Sachs (GS) now or is there still more upside?" Najarian- feels strong about GS, but you should take half the position off before earnings.
Viewer writes: "What is your outlook for Tiffany's (TIF) as the holiday season approaches?" Macke is positive about Tiffany's and Blue Nile (NILE)
Pops & Drops:
Pops: Macke-Caterpillar (CAT), Finerman-Target (TGT), Adami-Alcoa (AA)-could be bought out by Najarian's pick-Billiton (BHP), and Finerman-Wendy's (WEN)
Drops: Najarian-E*Trade (ETFC), Macke-Hovnanian(DOG), Adami-Boeing(BA)
Final Trade:
Macke- Macy's (M)
Finerman- Altria (MO)
Adami- Nucor (NUE)
Najarian- Companhia Vale do Rio Doce (RIO)

Labels: BHP, BSC, CAT, CMI, CNBC, ETFC, EWZ, Fast Money, GS, HD, HOV, LEH, MS, NILE, PHM, SPDR, TGT, TIF, TOL, WEN

Doomsday Scenario: MDC Holdings (NYSE: MDC - News), DR Horton (NYSE: DHI - News), Pulte Homes (NYSE: PHM - News) and Toll Brothers (NYSE: TOL - News)
Cramer created a doomsday scenario which probably will not happen, since the bank crisis in 1990 was "ten times worse" than the problems of today. However, he would avoid any companies which deal with borrowing and lending money, particularly housing: DHI, PHM and TOL. The only housing stock that isn't hopeless now is MDC, but Cramer would still not buy. He would also avoid financials amid bearish fears that loans will not be repaid and yields will shrink; "You can't own anything that even walks by a mortgage," Cramer warned. He would not touch companies which need financing for deals. However, Cramer added; "the worst-case scenario will be derailed," and the doom and gloom will not really materialize
If Ben will Budge: Centex (NYSE: CTX - News), Lennar (NYSE: LEN - News), Bear Stearns (NYSE: BSC - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
Cramer discussed two scenarios which could reverse doomsday: overseas buyers and an interest rate cut. He is confident that if the Federal Reserve reduces rates by only one percent, housing will make a comeback (especially DHI, PHM, CTX, LEN), financials GS and C will recover and the Dow will jump to 15.
Playing it Safe: Celgene (NasdaqGS: CELG - News), Kellogg (NYSE: K - News), Schlumberger (NYSE: SLB - News), Medco Health Solutions (NYSE: MHS - News), Kimberly-Clark (NYSE: KMB - News), Amazon.com (NasdaqGS: AMZN - News), Google (NasdaqGS: GOOG - News), Apple (Other OTC: APPL.PK - News) and Research in Motion (NasdaqGS: RIMM - News)
Even if the Fed doesn't budge rates, investors can still create a safe portfolio consisting of CELG, K, SLB, MHS and KMB. He also directed viewers to his six wild bull markets: oil and oil services, agriculture, machinery, aerospace, infrastructure and minerals, and his four horse men of tech: AMZN, GOOG, APPL and RIMM.
Mad Mail: Brookfield Asset Management (NYSE: BAM - News), Rite Aid (NYSE: RAD - News), ValueClick Inc. (VLCK)
Cramer urged a mailer not to sell BAM, because it is an international company, unaffected by subprime woes, and is similar to Warren Buffet's Berkshire Hathaway; "If you sold Warren Buffet because of a housing problem, forget it!" To a mailer concerned about RAD, Cramer said, "The integration is going very well. I'm holding your hand on RAD, and begging you not to sell it." Concerning VLCK's bad quarter, he commented, "I don't have my arms around it yet. To me, the stock looks like it's going to see $18, before you see a bottom."
Published By SeekingAlpha

Labels: AAPL, AMZN, BAM, BSC, CELG, CTX, DHI, GOOG, GS, Jim Cramer, K, KMB, LEN, Mad Money, MDC, MHS, PHM, RIMM, SLB, TOL

By TradingMarkets Research
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.
Whole Foods Markets Inc. July 40 Calls (NasdaqGS:WFMI). WFMI's PowerRating is 4.
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.
Sears Holdings July 170 Puts (NasdaqGS:SHLD). SHLD'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 560 Calls (NasdaqGS:GOOG). GOOG's PowerRating is 5.
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 125 Calls (AMEX:EEM). 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.
Washington Mutual Inc. (NYSE:WM). WM'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.
Pulte Homes (NYSE:PHM). PHM's PowerRating is 5.
Sepracor Inc. (NasdaqGS:SEPR). SEPR's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: EEM, GOOG, PHM, SEPR, SHLD, stock options, WFMI, WM

On Not Feeling at Home with Housing: D.R. Horton (NYSE: DHI - News), Pulte Homes (NYSE: PHM - News), Lennar (NYSE: LEN - News), Centex (NYSE: CTX - News)
Cramer would not touch DHI, PHM or LEN, at least not with a long pole, after reading a report by Ivy Zelman of Credit Suisse during which she discussed her downgrade of Pulte and Horton and upgrade of Centex. Cramer comments DHI is "the most dangerous homebuilder" because it bought a gigantic amount of property in its quixotic delusion of "endless demand" and has the least written down on its property. Cramer would approve of shorting DHI and being long Centex. He says the problem with homebuilders is while "the rigor of the writedowns is clearly there, all the price targets are still way too high." He sees the potential of another leg down, and until more is written down on Horton and Pulte homes, he would not touch them on the long side.
Published by SeekingAlpha

Labels: CTX, DHI, Hot Stocks, Jim Cramer, LEN, PHM, Wall Street Confidential

Dynegy (NYSE: DYN - News), Mirant (NYSE: MIR - News), NRG (NYSE: NRG - News), Foster Wheeler (NasdaqGS: FWLT): Cramer predicts DYN will go to $13 from $10 and comments CEO Bruce Williamson is "fabulous" and doesn't get enough credit. Although DYN has doubled, people are still not paying attention. He also likes FWLT as a great way to play nuclear and notes stocks like DYN and FWLT are no longer hostages to oil, which is declining while these names are on the rise. News that Mirant is for sale will bring up NRG, which is also doing well on a positive note from Jeffries, notes Cramer.
D.R. Horton (NYSE: DHI - News) and Pulte (NYSE: PHM - News): Cramer praised Ivy Zelman of Credit Suisse for her downgrade of DHI and PHM and called her report "eye opening." In brief, her research indicated DHI and PHM "could go much lower, and book value seems to mean nothing." Zelman predicts a 15%-20% decline for homebuilders who haven't sufficiently reduced their land holdings.
Published by SeekingAlpha

Labels: DHI, DYN, FWLT, Jim Cramer, MIR, NRG, PHM, Stop Trading

Last week, investors interpreted statements from the Federal Reserve Board's announcement that it would keep its primary interest rate at 5.25% as indicating the central bank might be moving towards a rate cut later in the year. Today, Fed Chairman Ben Bernanke suggested that investors may have jumped to that conclusion too quickly. Predictably, stocks sank today on renewed fears of inflation. The 10-year Treasury note also declined, while crude oil futures pushed above $64 a barrel.

Bernanke, in testimony before a joint congressional committee, said the decision to drop the long-standing phrase "additional firming" -- which was always interpretted to be code for "rate hike" -- was simply intended to give the bank "a bit more flexibility given the uncertainties that [the Fed is] facing and the risks that are occurring on both sides of [the Fed's] outlook." Inflation, Bernanke noted, remains a concern, but the economy is still growing, albeit more slowly than in previous years. He added that he does not expect the economy to slip into recession and that he sees no evidence that the problems occurring in the subprime sector are impacting the broader economy, which many investors have feared will happen.
Also weighing on stocks today was a weaker-than-expected rebound in durable goods orders in February. After a sharp -9.3% drop in January in orders for products expected to last at least three years, economists were looking for growth of 3.5% in February. According to the Commerce Department, durable goods orders rose by only 2.5% to a seasonally adjusted $207 billion.
Builders remained a focus of investors today. Beazer Homes USA (NYSE: BZH - News) sank -8.4% after the company confirmed that it is cooperating with a probe by several federal government agencies into its mortgage business. The company has not been accused of any wrongdoing at this point. Sinking for a second-consecutive day were shares of Lennar (NYSE: LEN - News), the Florida homebuilder that released sharply lower fiscal Q1 earnings yesterday. Following Lennar lower were Toll Brothers (NYSE: TOL - News), KB Home (NYSE: KBH - News), Pulte Homes (NYSE: PHM - News), and Hovnanian (NYSE: HOV - News).
Shares of Circuit City (NYSE: CC - News), the nation's No. 2 electronics retailer, moved higher after the company said it planned to cut about 8.5% of its in-store staff. The company said it would cut highly paid workers that earn "well above the market-based salary range for their role" and replace them with less costly workers. The company also plans to cut 130 corporate information technology jobs and outsource their functions to International Business Machines (NYSE: IBM - News). The nation's top electronics retailer, Best Buy (NYSE: BBY - News), closed lower.
Agriculture products giant and ethanol producer Archer Daniels Midland (NYSE: ADM - News) added 2.5% after Citigroup suggested the company will benefit from an expected drop in corn prices, which is a key ingredient in domestically produced ethanol. Fellow ethanol producer Verasun Energy (NYSE: VSE - News) also added 3.8%.

Labels: ADM, BBY, BZH, CC, HOV, IBM, KBH, LEN, PHM, TOL, VSE

Vulcan Materials (VMC, 111.81), the largest producer of construction aggregates - crushed stone, gravel, and sand - in the U.S., on Monday agreed to acquire Florida Rock (FRK) in a cash and stock deal valued at $4.6 billion.
The company said the acquisition will significantly enhance its strategic position and long-term growth opportunities by greatly expanding its presence in attractive Florida markets and in other high-growth Southeast and Mid-Atlantic states. While construction markets in the U.S. Sunbelt region, including Florida, have faltered over the past year with the slowdown the housing market, Vulcan is essentially making a long-term bet that the market is going to come back, especially as baby boomers begin to retire.
Although the housing market has not yet shown significant signs of improvement, with leading homebuilders such as Pulte Homes (PHM), DR Horton (DHI), and Toll Brothers (TOL) still struggling with a glut of inventory and undeveloped land, we believe the acquisition makes sense for Vulcan from a longer-term perspective, and should leave the company in a strong position to capitalize on the upturn in the housing cycle. As such, we would be buying shares of the company on the deal.
Under the terms of the agreement, Vulcan shareholders will receive one share of common stock in a new holding company, whose subsidiaries will be Vulcan Materials and Florida rock, for each Vulcan share. Florida Rock shareholders can elect to receive either 0.63 shares of the new holding company or $67 in cash for each Florida Rock share, with Vulcan seeking to ensure that an aggregate 70% of Florida rock shares will be converted into cash and 30% converted into stock.
Vulcan said it anticipates annual pre-tax cost synergies of about $50 million and expects the combined company to have aggregate reserves totaling about 13.9 billion tons. The acquisition, which should close in mid-2007, is expected to be neutral on Vulcan's earnings this year and accretive next year and beyond.
--Richard Jahnke, Briefing.com

Labels: DHI, Florida Rock, FRK, PHM, TOL, VMC, Vulcan Materials Co.

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

It’s going to be a second week of heavy and influential corporate reporting for earnings hounds.
Reports from the likes of Boeing (BA), US Steel (X), Verizon (VZ), Exxon (XOM) and Comcast (CMCSA) will be in the spotlight and could impact the broader market. So far, the damage inflicted due to sub par results or just matching estimates has been minimal. However, sentiment did take a turn for the worse on both Thursday and Friday. Without corrective action, the thought is that similar results will beget further selling pressure as the idea of multiple contraction comes into play.Economic watchdogs are going to busy as well, beginning with a slug of reports on Wednesday. On that day, the FOMC meeting will take center stage, but other data could prove to be more important. Rates are widely expected to remain unchanged at 5.25%. However, price pressures and slightly better growth for the economy has sparked talk of potential increases. That said, the policy statement and any wording that might hint at the Fed’s intentions on the future path of rates will be important. For many investors, with earnings growth accepted as slowing down, without a rate cut provision sometime later this year, the view is that 2007 will be a bumpy one.Other economic data coming both before and after the FOMC statement could ultimately ease or inflate Fed policy and viewed as taking top billing for the week. The Q4 GDP out Wednesday morning is one that investors should be on the lookout for. The Street is looking for 3.0% annual growth, which has been quickly adjusted upwards since last month. Sinking gas prices, warmer temperatures in the northeast and a decent holiday shopping season are seen as being key catalysts for the bump up by analysts. Meanwhile, the core PCE price index is expected to show an increase of 2.2%. And on Friday, the jobs report will be dissected for any clues over a firm labor market which might lean the Fed towards a tighter monetary policy.
Monday
Economic: NAEarnings: Mattel (MAT), Phelps Dodge (PD), USG Corp (USG), Verizon (VZ), Schering (SGP), Atheros (ATHR), Gol Air (GOL), Zimmer (ZMH)
Tuesday
Economic: Consumer Confidence (109.5)Earnings: 3M (MMM), Black & Decker (BDK), Illinois Tool (ITW), JetBlue (JBLU), Merck (MRK), UPS (UPS), Cymer (CYMI), Flextronics (FLEX), SanDisk (SNDK), US Steel (X), Websense (WBSN)
Wednesday
Economic: GDP Advance (3.0%), Chain Deflator (1.7%), Employment Cost Index (1.0%), Chicago PMI (52), Construction Spending (0.0%), Weekly Crude, FOMC Policy (5.25%)Earnings: Altria (MO), Boeing (BA), Kodak (EK), CBOT (BOT), Hilton (HLT), OptionsXpress (OXPS), NYMEX (NMX), Eagle Matls (EXP), Gilead (GILD), Google (GOOG), Armor Hldg (AH), JDS Uniphase (JDSU), Starbucks (SBUX), Sunoco (SUN), Pulte (PHM)
Thursday
Economic: Inc & Spend (.5%, .7%), Weekly Claims (318K), ISM Index (51.5), Auto / Truck Sales (5.4M, 7.4M)Earnings: Archer Dan (ADM), Comcast (CMCSA), CVS (CVS), Exxon (XOM), Celgene (CELG), Monster (MNST), Under Armour (UA), Valero (VLO), Amazon (AMZN), Dolby (DLB), Electronic Arts (ERTS), Intuitive Surgical (ISRG), Rackable Systems (RACK), Silicon Motion (SIMO), Vertex (VRTX)Friday Economic: Nonfarm Pay (150K), Unemployment (4.5%), Hourly Earnings (.3%), Factory Orders (1.5%), Michigan (97.8) Earnings: Arch Coal (ACI), Chevron (CVX), NYSE Group (NYX), Oshkosh (OSK), Ventana Med (VMSI), Wendy’s (WEN)

Labels: AMZN, ATHR, BA, GILD, JBLU, JDSU, MAT, MRK, NYX, PHM, SGP, SIMO, USG, VLO, VZ, WBSN, X, XOM

Yahoo (NASDAQ: YHOO - News), Google (NASDAQ: GOOG - News), Sun Microsystems (NASDAQ: SUNW - News), AT & T (NYSE: T - News), Verizon (NYSE: VZ - News), Apple (NASDAQ: AAPL - News), Norfolk Southern (NYSE: NSC - News), Union Pacific (NYSE: UNP - News), Lennar (NYSE: LEN - News), Centex Corp (NYSE: CTX - News), Toll Brothers (NYSE: TOL - News), DR Horton (NYSE: DHI - News) and Pulte (NYSE: PHM - News)
Cramer described the "glass half full mode" in tech as the shorts were looking at options expiration last week. "We were confounded by the work off of the options hangover which then positioned tech to be too low and ready for a trade -- just a trade, but a trade is worth grabbing." He added that the fact that Yahoo is up even though the company "doesn't have a clue" will give hedge funds the impression that it will go up whether Yahoo is good or bad and will encourage the shorts to change their position. Cramer also noted that Google was up on Yahoo, and that SUNW is also up, but he doesn't think that the company is doing anything interesting. What Cramer does find interesting is AT & T's strategy, outlined in its conference call, to take customers away from Verizon wireless by offering free service for a 18 months to Apple's iPhone users. Cramer says that NSC's drop is a "false tell" because the company periodically messes up and then ramps. He predicts that UNP will reach $110 to $115 from a recent $97. The "infrastructure crumble" for trucks make the rails "superior to almost any other trend I've got." Cramer calls CTX a "bunch of idiots" because they, along with LEN, TOL, DR Horton and PHM were too bullish at the top. "None of these companies distinguished themselves as good businessmen," he said. "None of them turned out to be cautious." However, he likes the fact that these companies are not building more homes, and prefers being long land inventory than home inventory because land is selling.
Published by SeekingAlpha

Labels: AAPL, CTX, DHI, GOOG, Jim Cramer, LEN, NSC, PHM, SUNW, T, TOL, UNP, VZ, YHOO

Pulte Homes cut its earnings forecast for the fourth quarter, as homebuilders continue to navigate through a challenging operating environment. The announcement follows a warning by Centex Corp. (CTX) and mixed fourth-quarter results from Lennar Corp. (LEN) earlier this week.
Shares of Pulte Homes have shed roughly 20% over the past year, amid continued weakness in the U.S. housing market. At the current level, the stock is trading at 6.7x trailing twelve month earnings. While much of the bad news already appears to be factored into prices, we remain cautious about the company's prospects, as it, and other homebuilders, continue to face significant headline risk associated with the industry's malaise.
Pulte Homes said it expects fourth quarter results to be in the range of a loss of ($0.05) per share to earnings of $0.05 per share from continuing operations, down from its previous guidance for earnings at the lower end of a range from $0.30 to $0.70 per share. The Bloomfield Hills, Michigan-based company said it now expects impairments and land-related charges of $330 million to $350 million, or approximately $0.83 to $0.88 per share. Analysts on average had pegged fourth quarter earnings at $0.39 per share, according to Reuters Estimates.
Pulte Homes closed 12,566 homes during the latest quarter, a decline of 20% from the year ago period. Net new orders were down 34% year/year to 6,446, reflecting a continued soft housing market and further underscoring our tepid outlook for the industry.
--Richard Jahnke, Briefing.com

Labels: CTX, LEN, PHM, Pulte Homes Inc.

Pulte Homes cut its earnings forecast for the fourth quarter, as homebuilders continue to navigate through a challenging operating environment. The announcement follows a warning by Centex Corp. (CTX) and mixed fourth-quarter results from Lennar Corp. (LEN) earlier this week.
Shares of Pulte Homes have shed roughly 20% over the past year, amid continued weakness in the U.S. housing market. At the current level, the stock is trading at 6.7x trailing twelve month earnings. While much of the bad news already appears to be factored into prices, we remain cautious about the company's prospects, as it, and other homebuilders, continue to face significant headline risk associated with the industry's malaise.
Pulte Homes said it expects fourth quarter results to be in the range of a loss of ($0.05) per share to earnings of $0.05 per share from continuing operations, down from its previous guidance for earnings at the lower end of a range from $0.30 to $0.70 per share. The Bloomfield Hills, Michigan-based company said it now expects impairments and land-related charges of $330 million to $350 million, or approximately $0.83 to $0.88 per share. Analysts o