Jim Cramer Blog

Citigroup (C) pulled together its emerging-markets credit group and its global credit-trading business. The combined group will be headed by Carey Lathrop, a nearly 20-year veteran of the bank who led the emerging-markets business.
Crocs (CROX), in an attempt to diversify its product line, will introduce a line of apparel for men and children. The apparel line, which Crocs intends to unveil today, will feature regular fibers, such as cotton, interwoven with a lightweight derivative of the pliable, plastic resin used to make Crocs' shoes. It will make its debut in stores in October.
Home Depot (HD) agreed to cut the price in its supply division sale to buyout firms by $1.8 billion, sources said on Sunday, as a housing market drop and a credit crunch forced all sides to renegotiate.
Marsh & McLennan (MMC) said it has agreed to buy back $800 million worth of its outstanding shares in an accelerated share repurchase transaction. The company said it will fund the transaction with proceeds from the recent sale of Putnam Investments and that it will conduct the purchase under the $1.5-billion share buyback authorization announced on Aug. 7.
Rambus (RMBS) said the special litigation committee established by the board has finished its review of stock options practices and submitted a final report to court. The special litigation committee was composed of two independent directors, J. Thomas Bentley and Abraham Sofaer, and it conducted its review with the assistance of independent counsel, the company said.
United States Steel (X) said it will buy Canadian steelmaker Stelco for $1.1 billion in a cash deal, including X paying $36.59 per share of Stelco.
Wal-Mart (WMT) is considering acquisitions in its home market as it seeks to open smaller stores and limit its reliance on giant supercenters for growth, the Financial Times reported.
Published by Minyanville.com

Labels: C, CROX, HD, Hot Stocks, MMC, RMBS, WMT, X

Memory chip maker Rambus Inc. said Thursday second-quarter revenue fell 5 percent to $47.5 million from the previous quarter, missing analysts' estimates.
The company added that it won't release complete second-quarter earnings by the Aug. 9 deadline because it has not yet finished restating some past financial reports related to its ongoing investigation of historical employee stock options grants.
Rambus is one of scores of companies that have launched internal probes over possible backdating of stock option grants. In October, Rambus said it discovered some of its past stock option grants were incorrectly dated or accounted for.
The company also said it is highly likely that it had "one or more material weakness in internal control over financial reporting as of December 31, 2006." That means there were deficiencies that result in "more than a remote likelihood" that material misstatements in financial reporting were not detected, it said.
Rambus expects to file its annual financial report for 2006 during the third quarter.
Analysts polled by Thomson Financial, on average, expected revenue of $48.6 million for the second quarter.

Labels: Rambus Inc., RMBS

Stocks followed Monday's strong move higher with a somewhat more cautious rally today, though all three major indexes closed in the green. Better-than-expected housing starts numbers accounted for some of the positive bias, while the Federal Reserve's policy meeting, which got underway today and will result in a decision tomorrow afternoon, added a note of uncertainty to the day's trading.
With recent data pointing to a potential economic slowdown exacerbated by softness in the housing market but offset by inflation numbers above the Fed's typical comfort zone, investors are keen to get a glimpse into the Fed's thinking with regard to interest rates. The Fed is almost certain to hold rates steady tomorrow, but the accompanying statement will be parsed with an eye for a shift in posture on future policy.
In corporate news, embattled smartphone maker Palm (Nasdaq: PALM - News) was the subject of buyout speculation. Though once a leader in the smartphone space, the company has fallen behind rivals like Research in Motion (Nasdaq: RIMM - News) and engaged Morgan Stanley to pursue strategic options. Reports indicate that Nokia (NYSE: NOK - News) is presently the top bidder, but Motorola (NYSE: MOT - News) as well as private equity firms are also interested.
In other M&A news, IT firm Affiliated Computer Services (NYSE: ACS - News) surged 17% after receiving a $5.93 billion bid from an investment group led by the company's founder and chairman. Meanwhile, jewelry retailer Claire's Stores (NYSE: CLE - News) confirmed an agreement to be acquired by private equity firm Apollo Management for $33 per share. Apollo was reportedly the only remaining buyer after other bidders dropped out of an auction for the retailer.
Accredited Home Lenders Holding (Nasdaq: LEND - News) continued to recover from its recent drubbing, as the subprime lender advanced 20% on news that the company had received a commitment for a $200 million loan from Farallon Capital Management. The funding will give the company more time to track down longer-term funding after a recent credit crunch due to mounting subprime mortgage defaults and late payments.
In tech news, memory chip firm Rambus (Nasdaq: RMBS - News) moved 6% higher after the Federal Trade Commission put off restrictions preventing the company from collecting certain royalties. The FTC had planned to limit Rambus' royalty payments after the agency ruled last year that the company had deceived a standards-setting committee. Meanwhile, flash memory maker SanDisk (Nasdaq: SNDK - News) gained 5% and network equipment maker Juniper Networks (Nasdaq: JNPR - News) jumped 4% after each received analyst upgrades.
By the BullMarket.com Staff

Labels: ACS, CLE, JNPR, LEND, MOT, NOK, PALM, RIMM, RMBS, SNDK

Longview Fibre Co. (NYSE:LFB - News) shares rose after Brookfield Asset Management (NYSE:BAM - News) agreed to acquire the company in a deal worth $2.15 billion, including assumed debt. The consideration values Longview shares at $24.75 each, compared to Friday's closing price of $21.01, up 21 cents. Brookfield noted that it currently owns about 3.04 million Longview shares, roughly 4.6% of the company's outstanding stock. Brookfield expects the deal for Longview, whose assets include 588,000 acres of timberlands in Washington and Oregon, to close in the second quarter.
Shares of The Mills Corp. (NYSE:MLS - News) surged after Simon Property Group Inc. (NYSE:SPG - News) and private equity firm Farrallon Capital Management LLC disclosed a joint proposal to acquire the company for $24 per share. At present, Mills has an agreement in place to be acquired by Brookfield Asset Management Inc. for $21 per share. Farralon manages funds that currently own roughly 10.9% of Mills' outstanding common stock.
NetRatings' (NasdaqGM:NTRT - News) shares jumped after Nielsen Co. said it plans to acquire the 40% of NetRatings Inc. it doesn't already own for $21 a share in cash, or $327 million. The price represents a 44.1% premium over NetRatings' closing price on Oct. 6, 2006. The deal is expected to close in the second quarter of this year.
Novatel Wireless (NasdaqGM:NVTL - News) shares gained after the San Diego-based provider of wireless broadband access products said it expects fourth-quarter earnings to be in the range of or above its previous outlook of 2 cents to 4 cents a share, on revenue of $76 million. Excluding items, the company forecast a fourth-quarter profit of 13 cents to 14 cents a share. For 2007, Novatel forecast earnings excluding items of 55 cents to 65 cents a share on revenue of $330 million to $350 million.
Potlatch Corp. (NYSE:PCH - News) reported fourth-quarter earnings of $44.1 million, or $1.13 a share, up from a year-ago profit of $9.9 million, or 34 cents a share. The latest results included a gain of $24 million, or 62 cents a share, related to the company's share of the negotiated settlement of the softwood lumber trade dispute between the U.S. and Canada, as well as an income tax adjustment of $3.9 million, or 10 cents a share, stemming from an asset transfer. Spokane, Wash.-based Potlatch attributed the higher profit in the latest quarter to improved results for its Resource and Pulp and Paperboard business segments. The average estimate of analysts polled by Thomson First Call was for a profit of 24 cents a share in the December period on revenue of $395.6 million.
Rambus (NasdaqGS:RMBS - News) shares gained after the company was ordered by the Federal Trade Commission to license some of its computer memory-chip technology and set maximum royalty rates it can collect for licensing. Those memory chip technologies include so-called SDRAM and DDR SDRAM. DRAM chips are widely used in personal computers, servers, printers, and cameras. In addition, the FTC barred Rambus from making misrepresentations or omissions to technology standard-setting groups. In June 2002, the FTC had charged Rambus with violating U.S. antitrust laws. Rambus said it plans to appeal the order.
Sun Healthcare Group (NasdaqGM:SUNH - News) was upgraded to buy from hold at Stifel Nicolaus.
Triad Hospitals Inc. (NYSE:TRI - News) agreed to go private in a buyout valued at $6.4 billion including debt. The company also said it expects to report a fourth-quarter profit from continuing operations of about 42 to 44 cents a share on revenue of approximately $1.4 billion. Analysts, on average, have been looking for the company to post a fourth-quarter profit of 55 cents a share on revenue of nearly $1.43 billion, according to estimates compiled by Thomson Financial. The company cited a higher allowance for doubtful accounts in the quarter, which reduced earnings by 24 cents a share, as well as a 21-cent hit due to a reduction of its estimate of collection rates on accounts receivable and a 3-cent hit related to increases in self-pay receivables. Triad said it also experienced a reduction in medical-malpractice reserves of about 18 cents a share, reflecting improved trends in its claims experience.
Wal-Mart Stores (NYSE:WMT - News) reported a gain of 2.2% in comparable-store sales for the first month of the year, putting it on track to deliver the lowest annual same-store sales growth in more than 25 years. The results topped the Bentonville, Ark.-based retailer's prediction that sales in U.S. stores open for at least one year would rise annually by 1% to 2% in the five-week period, ending Feb. 2.
Published By MarketWatch

Labels: BAM, LFB, MLS, NTRT, NVLT, PCH, RMBS, SPG, SUNH, TRI, WMT

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 Under Priced 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.
CBOT Holdings Jan 170 Calls (NYSE:BOT - News) . BOT's PowerRating is 5.
Most Under Priced 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.
Intuitive Surgical Jan 100 Puts (NASDAQ:ISRG - News). ISRG's PowerRating is 6.
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.
Rambus Incorporated Feb 22.5 Calls (NASDAQ:RMBS - News). RMBS's PowerRating is 6.
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.
Google Incorporated Jan 420 Puts (NASDAQ:GOOG - News). GOOG's PowerRating is 6.
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.
First DataCorporation (NYSE:FDC - News). FDC's PowerRating is 6.
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 suggestsan extraordinarily negative earnings report, or other news which may negatively affect the stock.
Nike Incorporated (NYSE:NKE - News). NKE's PowerRating is 6.
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.
Beazer Homes (NYSE:BZH - News). BZH's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: BOT, BZH, FDC, GOOG, ISRG, NKE, RMBS, stock options

Bullish calls:
CR Bard Inc. (NYSE: BCR - News): 'You want medical products, I offer you BCR!'Brush Engineered Materials (NYSE: BW - News): 'The composite engineering business has not caught fire, the way I'd like it ... However, we identified BW - fully 10 points ago - and it's still going higher, because it's got a monopoly on its barillium. My take is, this stock is not done going up. You keep it. It's going higher!'Barr Pharmaceuticals (NYSE: BRL - News)Disney (NYSE: DIS - News): 'It hit its 52-week high today. DIS is two thumbs up, way up. It's not going to get you to $40 overnight, but it is inching its way there, and it will get to $40.'Riverbed Technology (NASDAQ: RVBD - News): 'I recommend taking 25% off from where I first recommended this stock. Not any more than that, because RVBD's got the mojo!'Harley-Davidson (NYSE: HOG - News): 'You are not a hog; it's a great brand name. I think that HOG is a too-heavily-shorted stock. It's got terrific brand. It is a great way to go when gasoline goes higher.'Companhia Vale do Rio (NYSE: RIO - News): 'Carnival, my friend! RIO's going to go to $35. They've got the ore that the Chinese need ... I want you to stick with RIO!'
Bearish calls:
Compuware Corp. (NASDAQ: CPWR - News): 'This stock has been in a five year flatline. I can't wake it up. I don't think there's any paddles that's going to get that stock started. Right here, right now. Sell, sell, and more sell.'Mindray Medical (NYSE: MR - News): ' I feel the same way about MR as I do about CMED.'going to the Chinese communists to do a little business - I'm not going to do that. You want medical products, I offer you BCR !China Medical (NASDAQ: CMED - News): ' ... going to the Chinese communists to do a little business - I'm not going to do that.'AtheroGenics (NASDAQ: AGIX - News): 'I think it's too risky, my friend. Now you can say, 'Wait a minute, Jim. It's all the way down to its 52-week low...' It's got that stuff you really like - the small molecule therapeutics... I can't do it. Because these stocks have hurt me.'Biovail (NYSE: BVF - News): ' ... it's not my favorite; it's Canadian pharma. I think you've got to wait until it comes down. I am going to give you a solid 'don't buy, don't buy.'AMREP (NYSE: AXR - News): ' ... this is a tough one. This is a $102 stock ... I mean, that's like too many games under one roof. I would take profits ... They should split that company in half and then I'll get interested.'Rambus (NASDAQ: RMBS - News): 'I don't like the NSM numbers I saw after the close. That's going to drive the chip stocks down. I don't want you in RMBS - it's too risky.'

Labels: AGIX, AXR, BCR, BRL, BVF, BWLD, CMED, CPWR, DIS, HOG, Jim Cramer, Lightning Round, Mad Money, MR, RIO, RMBS, RVBD

Shares of memory chip interface developer and licenser Rambus Inc. surged on Friday in fairly high volume trading, although there was no major news from the company.
"I think what's happening here is that a lot of guys who have waited (to buy) because they thought it was a speculative play, they're taking a (Rambus) position because there aren't a lot of people to get in ahead of them today," said American Technology Research analyst Jeff Schreiner. "You're seeing a lot of large institutional buyers getting in on the stock.

Labels: Rambus Inc., RMBS

Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
Applebee's International (NASDAQ:APPB - News). APPB's PowerRating is 6.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Qwest Communications (NYSE:Q - News). Q's PowerRating is 7.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term uptrends.
Cross Country Healthcare (NASDAQ:CCRN - News). CCRN's PowerRating is 7.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order for us to be a buyer of a "Trading Window," we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average. You will enter if the stock trades above yesterday's high.
Allegheny Energy (NYSE:AYE - News). AYE's PowerRating is 6.
Trading Where the Action Is: This list contains the most volatile stocks over the past 50 trading days. These stocks are only for the most aggressive traders who are willing to assume a high degree of risk in order to capture larger gains.
Rambus (NASDAQ:RMBS - News). RMBS's PowerRating is 2.
Explosion List: An inherent feature of all markets is that periods of lower-than-normal volatility are usually followed by periods of higher volatility. These stocks are trading at one-third or less of their normal volatility and therefore have a high likelihood of exploding within the next few trading days.
Quality Systems (NASDAQ:QSII - News). QSII's PowerRating is 7.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Ciena (NASDAQ:CIEN - News). CIEN's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: APPB, AYE, CCRN, CIEN, Q, QSII, RMBS