Jim Cramer Blog

Good As Golden Star Resources (AMEX: GSS - News)
Cramer likes GSS as a way to play the CNBC Million Dollar Portfolio Challenge. The company operates in South America and Africa, and is therefore highly speculative, but has a large mine in Ghana, "an island of stability." The bears are worried about a sulfide-processing plant GSS is building in Ghana, but Cramer thinks investors should use this anxiety as an opportunity to buy. He predicts the announcement of a new plant, which will double production and lower costs, will be sooner than expected. With this news, analysts will raise their numbers and the stock will go higher. Cramer also believes GSS may be taken over, and he likes the sector, since gold is moving up. Cramer would not swap out of best-of-breed Yamana to buy GSS, but likes the price at $4.46, and urges investors to use limit orders when buying.
Laser King: Ionatron (NasdaqGM: IOTN), Palomar Medical Technologies (NasdaqGS: PMTI), Syneron Medical (NasdaqGS: ELOS), Cynosure (NasdaqGM: CYNO)
Cramer noted that last Friday's laser pick, IOTN has risen 17% since his recommendation, and he decided to choose a new "laser king." Cramer has liked PMTI in the past and declared ELOS the "czar of lasers" when he was discussing cosmetic laser procedures. Now CYNO wears the laser king crown, since it has doubled while ELOS hasn't moved. In addition, CYNO has 30% growth and is levered to the rest of the world. Cramer added he prefers "a performer that's pricey" to "an underperformer that's cheap." PMTI is Cramer's second-best pick, but is more costly than CYNO, and he likes ELOS, but doesn't see it going up in the near future.
Game Plan for the Coming Week: Fluor (NYSE: FLR - News), McDermott International (NYSE: MDR - News), Foster Wheeler (NasdaqGS: FWLT), CVS/Caremark (NYSE: CVS - News), Dynegy (NYSE: DYN - News), Nabors (NYSE: NBR - News), Halliburton (NYSE: HAL - News), Parker Drilling (NYSE: PKD - News), Forest Oil (NYSE: FST - News), L-1 Identity Solutions (NYSE: ID - News), Precision Castparts (NYSE: PCP - News), Six Flags (NYSE: SIX - News), Syntax-Brillan (NasdaqGM: BRLC)
Cramer suggesting looking at infrastructure, especially MDR, FLR, and FWLT which are "terrific" companies and which should benefit from high oil prices. He would establish half a position before their reports and half after, and would buy the stocks on any weakness. On Monday, he would also buy FST. Cramer praises CVS as having "valued itself even further into the health care heaven" with its cheap Caremark purchase, and would buy ahead of its Tuesday report, adding he also likes DYN. PKD, which also reports on Tuesday, may be bought by NBR or HAL which discussed expansion during their conference calls, Cramer commented. His Wednesday picks include ID, PCP and SIX. Since the LCD TV sector is improving, Cramer likes BRLC which reports on Thursday after the markets close.
CEO Interview: Nolan Archibald, Black and Decker (NYSE: BDK - News)
Nolan Archibald says BDK's report was strong because of the company's "great brands and innovative products" which thrive in down times. BDK is featuring new Dewalt brand products including concrete breakers, hammers and generators. Archibald added the company is going to continue buying back shares. Cramer commented BDK is "the real deal" and sees it rising from $92.36 to $100.
Published By SeekingAlpha

Labels: BDK, CVS, DYN, ELOS, FLR, FST, GSS, HAL, ID, Jim Cramer, Mad Money, MDR, NBR, PCP, PKD, PMTI, SIX

New Plan Excel Realty Trust (NYSE:NXL - News) shares gained after the New York-based company late Tuesday agreed to be acquired by Centro Properties Group in a deal valued at $6.2 billion including debt. Australia-based Centro Properties has agreed to pay $33.15 in cash for New Plan, representing a 12.9% premium to New Plan's closing share price on Tuesday. The deal will be completed through a cash tender offer, which is expected to begin within 10 business days. The tender offer is expected to close in the second quarter.
Novatel Wireless Inc.'s (NasdaqGM:NVTL - News) fourth-quarter net income rose sharply to $2.4 million, or 8 cents a share, from $121,000, or less than a penny a share, a year earlier, helped by a strong broadband market and non-PC card products. Revenue rose 58% to $77 million from $48.7 million a year earlier.
Palomar Medical Technologies (NasdaqGS:PMTI - News) was upgraded to buy from hold at W.R. Hambrecht following a recent correction in the company's stock price, as well as a partnership inked by a competitor of the maker of laser-based medical and cosmetic products. "This morning's partnership announcement between Procter & Gamble Co. and Syneron Medical Ltd. ...validates our belief that the light-based home-use market is imminent and very real," analyst Emily Johnson wrote in a research note. Johnson also cited efforts by Palomar to revitalize its international sales and a lack of concern regarding the company's recent sales personnel turnover. A price target of $49 was set as well.
R.J. Reynolds Tobacco Co. (NYSE:RAI - News) said an appeals court upheld the company's view that its market-share based discount programs are "size-blind" and not discriminatory. The Winston-Salem, N.C., tobacco company said the 6th Circuit Court of Appeals upheld a lower court's ruling dismissing an antitrust lawsuit brought by Smith Wholesale Co. of Tennessee, and 18 other wholesalers.
South Jersey Industries Inc.'s (NYSE:SJI - News) fourth-quarter net income rose to $19.9 million, or 68 cents a share, from $13.7 million, or 47 cents a share, a year earlier. The energy holding company said Wednesday total expenses fell to $210.4 million from $257.7 million. Revenue at the Folsom, N.J., company decreased 12% to $250.3 million from $285.4 million. For 2007, South Jersey Industries expects income from continuing operations before items to increase by more than a 7% from a year ago.
Southwest Gas Corp.'s (NYSE:SWX - News) fourth-quarter net income rose 54% to $46.7 million, or $1.11 a share, from $30.3 million, or 76 cents a share, helped by colder weather than a year earlier. The Las Vegas natural gas company's revenue rose 14% to $565.1 million from $497 million a year earlier.
Sprint Nextel (NYSE:S - News) said fourth-quarter profit rose 34% to $261 million, or 9 cents a share, with operating revenue up 7% to $10.44 billion. The Reston, Va. carrier said 9% wireless revenue growth after adding 742,000 customers offset a 2% long-distance revenue decline. On an adjusted basis, its profit would've climbed 26% to 29 cents a share. Analysts polled by Thomson Financial expected earnings of 28 cents a share on revenue of $10.39 billion.
SPX Corp. (NYSE:SPW - News) said that its fourth-quarter net income rose to $86.8 million, or $1.47 a share, from $47.4 million, or 72 cents a share, a year ago. Adjusted earnings per share totaled $1.18, in line with analyst forecasts. Sales at the flow technology company rose to $1.3 billion, from $1.1 billion a year ago, driven by a 11.5% rise in organic revenue, acquisitions and currency fluctuations. The company said that its strong performance has continued in 2007 and it's raising its first quarter earnings per share guidance to a range of 47 cents to 52 cents, from a previous range of 45 cents to 50 cents. It also tightened its annual EPS guidance range to $3.85 to $3.95 from a prior range of $3.80 to $3.95.
StarTek Inc. (NYSE:SRT - News), the Denver provider of business-process-outsourcing services to the communications industry, reported fourth-quarter earnings per share fell 27% on 4.4% lower revenue. The company earned 8 cents a share compared with 11 cents, as revenue fell to $59.1 million. Gross-profit margin for the quarter shrank to 14.3% from 15.8%. StarTek said "revenue from several clients declined due to challenges in hiring and retaining enough agents to respond to client demands and unfavorable changes in revenue mix."
Wynn Resorts Ltd. (NasdaqGS:WYNN - News) reported a fourth-quarter net loss of $55.4 million, or 55 cents a share, compared with a net loss of $9.89 million, or 10 cents a share, during the year-ago period. Net revenue at the Las Vegas-based casino resort operator rose to $563.6 million from $269.4 million.
Published By MarketWatch

Labels: NVTL, NXL, PMTI, RAI, S, SJI, SPW, SRT, SWX, WYNN

Bullish calls:
Palomar Medical Technologies (NasdaqGS: PMTI): 'I think PMTI should be bought. I want to wait to see what happens.'Joy Global (NasdaqGS: JOYG): 'Mining equipment is - I think - a growth area again, after many years ... I think JOYG is in a nice spot ... I think it's ridiculous that that stock's so low... buy buy buy!'Marvell Technology (NasdaqGS: MRVL): ' ... if you want a turnaround semi - and if you pay more than $18, I'm going to regret it - MRVL is the one that has the least down, and the most up. Swap out of LSI and into MRVLFord (NYSE: F - News): 'I like the management of F. I think they're really good. I don't like the common stock. The common stock's not as good as the convertible. I say swap out of the common, and get into the F convertible. And Mulally's doing a great job there.'Lundin Mining (AMEX: LMC - News): 'I think that LMC is the heir - it is the one that will be bought before any ... I want to back up the truck up at $10 on LMC.'L-1 Identity Solutions (NYSE: ID - News): I think that Bob LaPenta ... I genuinely believe that he is building a powerhouse. I do believe that - if he doesn't get the stock up through acquisitions - he will sell the company. Bob LaPenta is a bankable man, and I am sticking with him.'CarMax (NYSE: KMX - News): 'Let me tell you something. AN and KMX are both fabulous, fabulous stocks, and I want to own both of them ... I do believe that KMX has too far behind AN, and you should pull the trigger right now!'AutoNation (NYSE: AN - News)United Auto Group (NYSE: UAG - News)Asbury Automotive Group (NYSE: ABG - News)Service Corp (NYSE: SCI - News): ' I think that this company - which was in the early 2000s just a mess - has gotten its act back together. It's become, once again, a great growth company.'Level 3 Communications (NasdaqGS: LVLT): 'LVLT is just terrific here. It is going to be the bandwidth company of the future. I think that LVLT will either be acquired .... or go cash flow positive by the end of the year, and blow the numbers away in 2008. LVLT remains my favorite under-$7 stock on Mad Money.'Celgene (NasdaqGS: CELG)Lamson & Sessions (NYSE: LMS - News): 'I send you to LMS. Cheaper and better.'
Bearish calls:
LSI Logic (NYSE: LSI - News): 'No! Questionable. Not one of my favorite semis at all.' But if you want a turnaround semi - and if you pay more than $18, I'm going to regret it - MRVL* is the one that has the least down, and the most up. Swap out of LSI and into MRVLAdvanced Micro Devices (NYSE: AMD - News)Urban Outfitters (NasdaqGS: URBN): 'We've had a major turn in URBN. It has just moved all the way up from $18 to $26, and do you mind if I (ring the register) on that name. I think the run is overdone. I want to sell, sell, sell URBN.'Allos Therapeutics (NasdaqGM: ALTH): 'No. Too hard. Man, we've got CELG down so much. Why you fooling around with that lesser stuff.'Symmetricom (NasdaqGM: SYMM): 'No. Copper wiring. You want copper wiring, I send you to LMS. Cheaper and better.'

Published By SeekingApha

Labels: ABG, AMD, AN, F, ID, Jim Cramer, JOYG, KMX, Lightning Round, LMC, LSI, Mad Money, MRVL, PMTI, SCI, SYMM, UAG, URBN

Bright Smile: Syneron Medical (NASDAQ: ELOS - News) with Palomar (NASDAQ: PMTI - News)
After telling people to swap out of ELOS into what he had thought was best-of-breed laser company Palomar, Cramer says Syneron is going to make a comeback after having been written off by The Street following two lackluster quarters. The stock was in the mid-40s, but is now sitting at $25.70, has an average of 30% revenue growth and is up46% in operating margins. Cramer likes ELOS because it has a major catalyst, dental laser, which will mean significant growth for the company. In addition, ELOS could be a takeover target. Cramer says the worst is over for this cheap stock and it is "ready to run."
DivX (NASDAQ: DIVX - News) Delay
Although he called DivX "the hottest of the hot" and the stock is up 52% since he recommended it in September, Cramer would wait on DivX. This compay has a deal with Google and is expanding into Eastern Europe and India, but has limited upgrade potential, since analysts give it four buys and one hold. Although there won't be a major selloff until its lockup expiration on March 22, Cramer believes that not many people will want to get into DivX until after that date. In addition, a second offering could crater the stock. "I don't want you in DivX for the next few months," Cramer said, addomg that he likes the stock cheaper.

Mad Mail: Trump Entertainment (NASDAQ: TRMP - News) and Gap (NYSE: GPS - News)
Cramer regretted making the prediction that TRMP would get a license to build a casino in Philadelphia, and said investors could hold onto the stock, but it probably won't be moving until summertime. Concerning GPS, Cramer doesn't want to be for or against it and said that it has no leveraged buyout on the horizon.
Published By SeekingAlpha

Labels: DIVX, ELOS, GPS, Jim Cramer, Mad Money, PMTI, TRMP