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

Symbol
Name
Last Trade
Change
Volume
Related Info
TWER
TOWERSTREAM CORP
3.88 12:40PM ET
1.99 (33.90%)
869,068

XTLB
XTL BIOPHARMACEUTICA
3.00 12:39PM ET
0.53 (14.89%)
PNRA
PANERA BREAD A
50.22 12:40PM ET
8.10 (13.89%)
7,420,849

ANGN
ANGEION CORP
9.30 12:39PM ET
1.54 (14.21%)
416,944
IMR
IMA EXPLORATION INC
0.94 12:24PM ET
0.15 (13.76%)
217,200
ICOPW
ICOP DIGITAL WARRANT
2.2399 11:55AM ET
0.3001 (11.81%)
24,829

HCTL
HEALTHCARE TECH LTD
0.93 9:30AM ET
0.10 (9.71%)
1,500
HAXS
HEALTHAXIS INC
1.72 10:39AM ET
0.14 (7.53%)
14,557

SIRT
SIRTRIS PHARMA INC.
10.81 12:40PM ET
1.14 (9.54%)
39,784

POLXF
POLYDEX PHARM LTD
1.80 11:06AM ET
0.18 (9.09%)
3,200
LEV
LEVITT CORP CL A
9.82 12:35PM ET
0.99 (9.16%)
76,200
CRVL
CORVEL CP
23.37 12:40PM ET
1.98 (7.81%)
60,124
PGEB
97% NOTES GEB
12.50 10:01AM ET
1.13 (8.29%)
4,000

IRN
REWARDS NETWORK
3.47 12:35PM ET
0.30 (7.96%)
70,400

HMB
HOMEBANC CORP
1.69 12:35PM ET
0.16 (8.65%)
163,200
HOTJ
HOUSE OF TAYLR JEWLR
1.27 12:35PM ET
0.11 (7.97%)
44,639

PSIT
PSI TECH HLDGS ADS
1.75 11:11AM ET
0.15 (7.89%)
1,938

SILC
SILICOM LIMITED
20.69 12:40PM ET
1.74 (7.76%)
176,822

GSX
GASCO ENERGY INC
2.27 12:35PM ET
0.16 (6.58%)
528,400

Labels: ANGN, CRVL, GSX, HAXS, HCTL, HMB, HOTJ, ICOPW, IMR, IRN, LEV, PGEB, PNRA, POLXF, PSIT, SILC, SIRT, TWER, XTLB

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's 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.
Celgene May 60 Puts (NasdaqGS:CELG - News). CELG'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.
Apple Inc. July 110 Calls (NasdaqGS:AAPL - News). AAPL'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.
Dendreon May 17.5 Puts (NasdaqGM:DNDN - News). DNDN's PowerRating is 2.
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.
Crocs Inc. (NasdaqGS:CROX - News). CROX's PowerRating is 4.
Monster Worldwide (NasdaqGS:MNST - News). MNST's PowerRating is 4.
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.
Panera Bread Co. (NasdaqGS:PNRA - News). PNRA's PowerRating is 4.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, CELG, CROX, DNDN, GS, MNST, PNRA, stock options

America's Car-Mart Inc. (NasdaqGS:CRMT - News) shares jumped Wednesday after the Bentonville, Ark., automotive retailer swung to a loss for the third quarter but said it still expects to be profitable in the fourth quarter. The company lost $50,000 for the three months ended Jan. 31 on revenue of $59.3 million. It added that it's seen a dramatic reduction in its accounts over 30 days due and that it's encouraged by the continuation of this trend into February.

Shares of American Axle Manufacturing (NYSE:AXL - News) surged after J.P. Morgan lifted its rating on the stock to overweight from neutral, citing the potential for the company's 2008 labor contract to include an agreement for "substantial, eventual UAW wage/benefit reductions." The firm said it believes the United Auto Workers union is likely to be sympathetic to American Axle this time around because the company will be the only UAW supplier with high cost OEM(original equipment manufacturer)-level compensation following restructurings at Delphi and Visteon. J.P. Morgan also said the company's management has leverage over the union with regard to future sourcing locations. It estimates a minimum of $1.10 per share in cost savings being secured by the company in the 2008 contract.
Avalon Pharmaceuticals (NasdaqGM:AVRX - News) shares surged after the company formed a drug discovery, development and commercialization collaboration with Merck (NYSE:MRK - News) to identify and develop inhibitors for an undisclosed target that is important in the development of cancer. The deal's terms provide for Avalon to potentially receive payments of more than $200 million as well as royalties on potential future products.
BJ's Wholesale Club Inc. (NYSE:BJ - News) said fourth-quarter earnings fell 77% to $11.9 million, or 18 cents a share, from $51.6 million, or 76 cents, a year earlier, hurt by items. The company said the latest quarter's results included charges of 44 cents a share related to its ProFoods closing expense, asset impairment, pharmacy closing expense, severance payments and a credit-card claim reserve. Excluding one-time items and stock-based compensation expense, the company said non-GAAP earnings fell to 59 cents a share from 77 cents, a year earlier. The Natick, Mass., warehouse-club operator said net sales rose 13% to $2.38 billion from $2.1 billion in the year-ago period.
British Airways Plc (NYSE:BAB - News), Europe's third-largest airline, said it expects fiscal 2008 revenue to increase 5% to 6% on traffic up 2.4% and average fares up 3.4%. The company said it sees fuel costs up by 100 million pounds from a year earlier and total costs excluding fuel up by 50 million pounds. The company said it's on track to reach its target of a 10% operating margin in 2008.
Canadian Natural Resources Ltd. (NYSE:CNQ - News) said its fourth-quarter net profit fell 72% to C$313 million ($265 million), or C$0.58 a share, from C$1.1B, or C$2.06 a share. Revenue before royalties for the quarter fell 9.1% to C$2.83 billion. The company said it booked an after-tax expense of C$99 million related to the effects of risk management activities. In the fourth quarter of 2005 it booked an after-tax gain of C$503 million. The company added that, for the full year, higher commodity prices were accompanied by significant cost inflation. North American natural gas production rose 14% to a record high and crude oil production rose 1% from a year earlier.
The Cheesecake Factory Inc. (NasdaqGS:CAKE - News) said it'll buy back 10 million shares of stock worth about $266 million based on its closing price Tuesday of $26.63 a share. The Calabasas Hills, Calif. will ink an agreement to repurchase $200 million of its shares of common stock through a broker-dealer in an accelerated share repurchase transaction. The company plans to secure a revolving credit facility in the amount of $200 million to replace a temporary credit facility.
Chico's FAS (NYSE:CHS - News) reported fourth-quarter net earnings of $18.2 million, or 10 cents a share, down from $44.5 million, or 24 cents a share, during the year-ago period. The latest results include pretax impairment expenses of about $8.6 million, or 3 cents a share, related to the planned closure of the Fitigues brand operations in the first quarter of fiscal 2007. The Fort Myers, Fla.-based retailer posted net revenue of $446.3 million, up 19% from $375.7 million. Chico's said it will no longer provide specific quarterly or annual sales and earnings outlooks. The company said it believes that if it achieves a low-single-digit same-store sales increase for fiscal 2007, the current consensus analyst estimates for the period "appear reasonable." Chico's said February sales at company-owned stores open at least one year fell 4.3%. Total sales for the four weeks ended March 3 rose 15% to $113.6 million from $98.7 million, Chico's said.
Deere & Co. (NYSE:DE - News) was upgraded to overweight from equal weight at Lehman Bros., which cited increased confidence about the durability of higher agricultural prices and the company's ability to leverage high end market demand. Analyst Joel Tiss also raised his stock price target to $135 from $95 and his 2008 earnings estimate to $8.20 a share from $7.25. Shares of the agricultural and construction equipment maker closed Tuesday up $2.84 at $107.04. They have lost 8.1% since reaching an all-time high of $116.50 on Feb. 22, but are still up 13% since the end of 2006.
First American (NYSE:FAF - News) was upgraded to overweight from equal-weight at Lehman Bros.
Friendly Ice Cream (AMEX:FRN - News) has hired Goldman Sachs as financial advisor, and Weil, Gotshal & Manges as legal advisor, to assist the board in exploring strategic options, including a possible sale of the company. The Wilbraham, Mass.-based company said that while it will review a wide range of options in consultation with its advisors, there can be no assurance of any particular outcome. Friendly, which operates restaurants and manufactures ice cream, said it does not expect to disclose further developments regarding the process until the review of strategic alternatives has been completed.
Joy Global (NasdaqGS:JOYG - News) was upgraded to overweight from equal-weight at Lehman Bros.
Shares of Movie Gallery (NasdaqGM:MOVI - News) rose after the company said it's acquired MovieBeam Inc., a private on-demand movie service. Financial terms of the transaction weren't disclosed but the company expects total incremental expenses related to MovieBeam, including the initial acquisition cost and any ongoing development expenses, to be less than $10 million in 2007. Dothan, Ala.-based Movie Gallery added that the deal includes substantially all of MovieBeam's assets, technology, network operations and customers. The company said MovieBeam content delivery network is available in 31 major metropolitan areas in the U.S.
Office Depot (NYSE:ODP - News) was upgraded to buy from hold at Deutsche Bank.
Panera Bread Co. (NasdaqGS:PNRA - News) said its total system-wide comparable bakery-cafe sales slipped 0.6% in February. For company-owned locations, same-store sales fell 1.3% for the five weeks ended Feb. 27. Panera said this performance reflects severe weather in the Midwest, where it has a high concentration of its bakery-cafes.
Payless ShoeSource Inc. (NYSE:PSS - News) said it plans to acquire privately held Collective International LP in a deal valued at roughly $91 million. Topeka, Kan.-based Payless sees the deal closing in the first half of fiscal 2007. The company expects the deal to be neutral to fiscal 2007 net earnings and to be accretive to fiscal 2008 net earnings. Payless also reported fourth-quarter net earnings of $24.6 million, or 37 cents a share. In the same quarter last year, the company posted a net loss of $5.6 million, or 8 cents a share. The Topeka, Kan.-based retailer said fourth quarter 2006 earnings benefited by the release of $14.3 million, or 22 cents a share, of income tax reserves related primarily to the closing of income tax audits in various jurisdictions. Revenue rose 13% to $692.7 million from $611 million, while comparable store sales in the quarter rose 6.8%.
Saks Inc. (NYSE:SKS - News) swung to a fourth-quarter profit, boosted by an additional week in the quarter and higher same-store sales. The Birmingham, Ala., retailer reported fourth-quarter earnings of $21.5 million, or 14 cents a share, compared with a loss of $2.24 million, or 2 cents a share, a year earlier. Saks said revenue for the quarter ended Feb. 3 rose 17% to $955 million from $817.8 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 22 cents a share on revenue of $921 million. Analyst earnings forecasts typically exclude unusual items.
Take-Two Interactive (NasdaqGS:TTWO - News) shares jumped after Oppenheimer Funds and SAC Capital, a hedge fund, disclosed plans to nominate six new candidates to the company's board.
Talbots Inc.'s (NYSE:TLB - News) fiscal fourth-quarter profit fell 99% to $17,000, with earnings of less than 1 cent a share, from $19.8 million, or 37 cents a share, a year earlier, hampered by higher costs and expenses and deeper post-Christmas discounts. The most recent quarter included 14 weeks while the year-earlier quarter had only 13. Excluding items such as acquisition costs and stock-option expense, the Hingham, Mass., women's clothing retailer said Wednesday that it would have earned 19 cents a share in the quarter ended Feb. 3. Net sales rose 31% to $638 million from $486.2 million.

Published By MarketWatch

Labels: AVRX, AXL, BAB, BJ, CAKE, CHS, CNQ, CRMT, DE, FAF, FRN, JOYG, MOVI, MRK, ODP, PNRA, PSS

LCA-Vision Inc. (NasdaqGS:LCAV - News) reported fourth-quarter earnings of $7.1 million, or 34 cents a share, up from a year-ago profit of $6.6 million, or 30 cents a share. Revenue jumped 26% in the latest three months to $58.8 million from $46.8 million a year ago. The Cincinnati-based provider of laser vision correction services also said it's increased its quarterly dividend by 50% to 18 cents a share from 12 cents. Looking ahead, LCA-Vision forecast earnings of $2.05 to $2.15 a share for 2007 on revenue growth of 20% to 25%.
Lions Gate (NYSE:LGF - News) reported third-quarter net earnings of $20.5 million, or 17 cents a share, compared with $3.14 million, or 3 cents a share, in the same period last year, driven by revenue from the company's "Saw III" and "Employee of the Month" films.
Loews Corp. (NYSE:LTR - News) reported consolidated net income of $746.5 million, or $1.11 a share, for the fourth quarter, up from a year-ago equivalent profit of $127.6 million, or 8 cents a share. This performance includes contributions from both Loews Group and Carolina Group, whose net income rose to $137.1 million, or $1.26 per Carolina Group share, in the quarter, from $81.6 million, or $1.11 a share, a year earlier. On a continuing operations basis, Loews earned $633.4 million, or $1.15 per share, in the latest quarter. Loews attributed its higher earnings to improved results at CNA Financial , its 89%-owned subsidiary, and Diamond Offshore Drilling , its 54%-owned subsidiary.
Municipal Mortgage & Equity LLC (NYSE:MMA - News) said it knows of no reason why recent trading in the stock has resulted in a decrease in price. Since Monday, shares of the real estate debt and equity financing concern have dropped almost 15%. MuniMae management noted that it is not engaged in sub-prime or any other single family mortgage lending activities, and that its outlook for the multifamily rental sector is positive.
Novelis was in focus after the company agreed to be acquired by Hindalco Industries Ltd. in a deal worth $6 billion, including debt assumption. The consideration values Novelis at $44.93 a share.
OmniVision (NasdaqGS:OVTI - News) unveiled a 5.17 megapixel auto-focus camera module for mobile handsets based on its OV5623 CameraChip sensor. The company also unveiled its TrueFocus camera with Wavefront Coding technology for the mobile handset market.
Onyx Pharmaceuticals (NasdaqGM:ONXX - News) soared after the company and Bayer (NYSE:BAY - News) said a Phase 3 trial of Nexavar to treat advanced liver cancer was closed early due to a positive outcome. Bayer and Onyx will stop the trial and allow all patients enrolled in this trial access to Nexavar. Given that there are limited approved systemic therapies for this disease, the companies will continue discussions with health authorities worldwide, including the U.S. Food and Drug Administration and European health authorities regarding the next steps in filing for approval for the treatment in advanced liver cancer. Nexavar is currently approved in nearly 50 countries, including the United States and in the European Union, for the treatment of patients with advanced kidney cancer.
Shares of Panera Bread Co. (NasdaqGS:PNRA - News) edged higher after Raymond James upgraded the bakery-café chain to strong buy from outperform, citing valuation. The company reported Friday fourth-quarter earnings that rose over year-earlier levels but fell shy of expectations, according to Thomson Financial, and provided an outlook that was slightly below forecasts. Analyst Bryan Elliott noted that the stock traded up most of the day before turning lower at the close. "We believe that that this reflects intermediate and longer-term capital that has been on the sideline waiting for 2007 guidance to be released," Elliott said in a research note. "We believe there is sufficient interest from this class of investor to keep Panera Bread under accumulation for at least the next several months."
R.H. Donnelly (NYSE:RHD - News) was upgraded to overweight from neutral at J.P. Morgan.
Smithfield Foods (NYSE:SFD - News) was upgraded to outperform from market perform at Wachovia Securities. The firm cited expectations about the benefits of recent acquisitions.
Southwest Airlines (NYSE:LUV - News) was upgraded to outperform at Bear Stearns.
Triple Crown Media Inc. (NasdaqGM:TCMI - News) said it swung to a fiscal second-quarter net profit of $418,000, or 8 cents a share. The company, which owns and operates local newspapers and runs a collegiate marketing business offering sports marketing services, reported a loss of $802,000 or 16 cents a share in the year-earlier quarter. Revenue for the quarter jumped to $48.1 million from $12.3 million, driven by the acquisition of the marketing business from Bull Run Corp.
Vodafone Group (NYSE:VOD - News) agreed to acquire Hutchison Telecom's (NYSE:HTX - News) 67% stake in Indian mobile operator Hutchison Essar for $11.1 billion and the assumption of $2 billion in debt.
WCI Communities (NYSE:WCI - News) said it's retained Goldman Sachs to assist it in identifying ways to increase shareholder value. The Bonita Springs, Fla. homebuilder said that it expects to generate $1 billion in free cash flow in 2007, and will look at asset sales to help reduce debt. Once the balance sheet is improved, the company will review strategic alternatives, including possible share repurchases are a sale of the company.
Witness Systems' (NasdaqGS:WITS - News) shares rallied after the company agreed to be acquired by Verint Systems (Other OTC:VRNT.PK - News), a unit of Comverse Technology (Other OTC:CMVT.PK - News), for $27.50 a share, or roughly $950 million.
Zoltek Cos. (NasdaqGM:ZOLT - News) shares rose after the St. Louis-based materials reported a fiscal first-quarter net loss of $5.66 million, or 23 cents a share. The quarter included a charge of $8.4 million related to convertible debt and warrant issuances. In the same quarter last year, the company posted net earnings of $6.29 million, or 3 cents a share. Revenue rose to $30.3 million from $15.6 million.
Published By Michael Baron of MarketWatch

Labels: BAY, CMVT, HTX, LCAV, LGF, LTR, LUV, MMA, ONXX, OVTI, PNRA, RHD, SFD, TCMI, VOD, VRNT, WCI, WITS, ZOLT

Omnicell (NasdaqGM:OMCL - News) shares jumped after the company posted fourth-quarter earnings of $3.8 million, or 13 cents a share, up from a year-ago profit of $2.2 million, or 8 cents a share. Revenue rose 26.4% in the latest three months to $42.3 million. The Mountain View, Calif., provider of patient safety technology products said its product backlog ended the quarter at $114.3 million, up 64.2% from the same period a year ago.
O'Reilly Automotive (NasdaqGS:ORLY - News) was upgraded to outperform from neutral at Credit Suisse. The firm lifted its price target on the stock to $38 from $36.
Quicksilver Resources (NYSE:KWK - News) was upgraded to outperform from neutral at Credit Suisse. The firm also boosted its price target on the stock to $47 from $43.
Panera Bread Co. (NasdaqGS:PNRA - News) said same bakery-cafe sales rose 0.8% in January from the same month a year ago. The St. Louis bakery-cafe chain said company-owned same-store sales rose 0.7% while franchise-operated sales were up 0.9%.
ProQuest (NYSE:PQE - News) said Alan Aldworth is leaving its chairman, president and CEO positions, effective immediately. The company named Richard Surratt president and CEO. Surratt had served as the CFO of the Ann Arbor, Mich., publishing company.
RedEnvelope Inc. (NasdaqGM:REDE - News) said third-quarter net income rose, as revenue gained, to $5.31 million, or 56 cents a share, from $4.1 million, or 43 cents a share, during the same period in the prior year. The branded online retailer said quarterly revenue rose to $57 million from $53 million in the prior year.
Sierra Health Services Inc. (NYSE:SIE - News) reported fourth-quarter net earnings of $39.3 million, or 65 cents a share, compared with $28.3 million, or 44 cents a share, in the same period last year, boosted by higher medical premiums revenue.
Sirf Technology Holdings Inc. (NasdaqGS:SIRF - News) reported fourth-quarter net earnings of $9.1 million, down from $10.23 million in the same period the prior year, mainly due to higher stock-based compensation and acquisition-related contingent payments.
U.S. Concrete (NasdaqGM:RMIX - News) said it sees fourth-quarter revenue of $211 million, compared with its prior view of $195 million to $205 million. The company cited stronger-than-anticipated sales volumes of ready-mixed concrete, partially attributable to relatively mild winter conditions. Analysts polled by Thomson Financial are looking for quarterly revenue of $204 million. U.S. Concrete said it sees a fourth-quarter net loss of 62 cents to 63 cents per share, a view that includes a 70-cent-per-share after-tax goodwill impairment charge associated with its Michigan assets. Excluding the charge, the company expects income for the fourth quarter of 7 to 8 cents per share, compared with its November outlook of 3 to 7 cents. Analysts are looking for per-share income of 5 cents.

Labels: KWK, OMCL, ORLY, PNRA, PQE, REDE, RMIX, SIE, SIRF

Movin' on Up: Dolby (NYSE: DLB - News), Mastercard (NYSE: MA - News)
Cramer says that Dolby is still a buy even though it has risen substantially in the past month, and the stock reminds him of Mastercard which has kept going up. He comments that Dolby did not raise its estimates high enough and that it should fetch $1 per share in 2007. Dolby is "a great play on the flat-panel TV upgrade cycle, "and is starting to produce gaming consoles, notes Cramer who also likes that fact that 79% of its revenue comes from licensing which has big margins which should increase as it pursues the video market.
Trading Truce: eBay (NASDAQ: EBAY - News), Google (NASDAQ: GOOG - News), Yahoo (NASDAQ: YHOO - News), Baidu (NASDAQ: BIDU - News)
Although Cramer has been picking on eBay all summer, he finally declares that at $31.30 "it has become the ultimate value stock." First of all, he says that it is cheaper than it should be, it owns PayPal which web Goliath Google has not been successful in supplanting with its own service. Cramer admits that he was too critical of CEO Margaret Whitman, who has been negotiating advertising deals with Yahoo and Google, as well as an agreement with Baidu which will help distribute PayPal in China. In addition, eBay is flush with cash and is implementing buybacks, notes Cramer, who says that while he felt eBay was overpriced in the past, now "not only is it cheap, it's good."
Sell Block: Hershey (NYSE: HSY - News), Sirius Satellite Radio (NASDAQ: SIRI - News), Panera (NASDAQ: PNRA - News), XM Satellite Radio (NASDAQ: XMSR - News), Ford (NYSE: F - News), Smith & Wesson (NASDAQ: SWHC - News) and Bankrate (NASDAQ: RATE - News)
After hearing that Hershey lowered its earnings estimates, Cramer admits that he was wrong about the stock and suggested selling once it reaches $50 from$49.34. He also admitted a mistake in thinking that SIRI doesn't need to merge with XMSR. After SIRI lowered its sales outlook, Cramer thinks that the stock won't go anywhere "except slightly down unless it gets that merger with XM Radio." Yet another company, Panera, reduced its earnings estimates, blaming Midwestern stores. However, since only a small percentage of stores are affected, Cramer suspects that sluggish growth is the real reason for the reduction."It is running out of steam and I was wrong to recommend it. Get rid of it." Ford, which Cramer had recommended, is issuing convertible bonds with a 4% yield. "Now ... the common stock is plain wrong," Cramer said. "If you want to play Ford, then play it with the convertible bond for less-risky exposure." Finally, Cramer suggested taking some SWHC and RATE off the table.

CEO Interview: Sally Smith, Buffalo Wild Wings (NASDAQ: BWLD - News)
Cramer asked Sally Smith if BWLD could maintain its 11.8% company-owned sales growth, and she responded confidently that providing a good dining experience would encourage customers to come back. She added that the company could "absolutely" expand from 400 to 1,000 stores and noted that a new store was opened in Brooklyn, addressing a demand to go national: "We started getting letters from all over the country," she said. "They were craving the sauces and the wings and were wondering when we were going to their towns." Cramer commented on the restaurant chains "multiyear growth plan" and says that if it ever dips "back up the stock and buy some."
By Miriam Metzinger

Labels: BIDU, BWLD, DLB, Ebay, F, GOOG, HSY, Jim Cramer, MA, Mad Money, PNRA, RATE, SIRI, SWHC, XMSR, YHOO