Jim Cramer Blog

A recovery in electronics sales offset losses in video games and helped boost Sony's profit for the July-to-September quarter more than 40-fold over the same period a year ago.
Sony Corp. saw $646.7 million in group net profit for the second quarter -- or 73.72 yen, up from 1.68 billion yen in last year's second quarter. Quarterly sales jumped 12.3 percent to $18.27 billion.
For the fiscal half overall, Sony posted a $1.23 billion profit, about three times a year earlier. First half sales climbed 12.8 percent to $35.61 billion.
Sony shares dipped 1.4 percent to $45 shortly before earnings were announced Thursday.

Labels: SNE, Sony Corp.

General Motors (GM): Hit with its first nationwide strike in 37 years, and the crew at Fast Money was focused on what it means to the market. Adami: has been consistently negative on GM and would rather own Ford (F). Macke agrees that GM is a sell, unless they take a huge hit on health care without giving job guarantees.
Online Ad Play: Microsoft (MSFT) made headlines today as rumors floated around Wall Street that the firm is planning on taking a 5% stake in Facebook.com. Kourosh Karimkhany, manager of wired digital at Conde Naste, sees Microsoft's play for Facebook as one for software development. Macke: time to get long MSFT. Najarian prefers ValueClick (VCLK) and Focus Media (FMCN). Tuesday will be a big day for Microsoft as they will release the hyped up Halo 3 game which is predicted to be the biggest selling game ever.Macke proposes investors play Halo 3 with trades in Gamestop (GME) and Activison (ATVI). He advises getting out of Sony (SNE).
Drug Trade: The UBS health care industry conference could help jump start some of the pharmaceutical and biotech stocks this week. Adami suggests Pfizer (PFE). Najarian: Myraid Genetics (MYGN) and Quest Diagnostics (DGX). Macke: Johnson & Johnson (JNJ).
Burning Down the House: The homebuilders sector was annihilated on Monday, as investors fear more bad news is on the way when the government reports existing home sales data Tuesday. Adami advises not to trade this sector unless you have to. Finerman: stay away from WCI Communities (WCI) and Hovnanian (HOV).
Chartology: Technical analysis expert Jeff DeGraaf was on the show. DeGraaf likes the technology sector right now and he thinks it will outperform in the coming months. He feels positive about tech because the sector was strong in the summer when it normally tends to trade down. DeGraaf looked at Fedex (FDX) and the chart isn't showing bullish trends. Adami: doesn't like FDX until it trades above $121 and DeGraaf agreed. DeGraaf: loves the pattern in gold and continues to be bullish longer term on the yellow metal. He would look to buy gold on pullbacks.
Word on the Street: Target (TGT) lowered same-store sales on Monday. SABMiller reported an 11% jump in beer volumes on Monday. Macke likes Molson Coors (TAP). Najarian likes BHP Billiton (BHP) and copper and gold producer Freeport McMoRan (FCX).
Alternative Energy: NRG Energy (NRG) submitted its first application for a new US nuclear reactor in 30 years. Najarian would play this news with (BHP) Billiton and Cameco (CCJ). Finerman: Flowserve (FLS) and Adami likes Fluor Corp (FLR). Macke would just play NRG Energy (NRG). Trina (TSL) traded higher 8% as solar stocks were active with a major solar conference started. Najarian likes TSL.
Pops & Drops
Pops- Crocs (CROX) traded up 9%. Adami thinks a big short was forced to cover on Monday. He would take profits on CROX.
NYSE Euronext (NYX) traded up 2% off a JP Morgan upgrade. Finerman continues to be long this stock and she feels it has more room to run higher.
Las Vegas Sands (LVS) traded up 7% off a Jeffries upgrade. Macke says time to get out.
PrimeWest Energy Trust (PWI) exploded 32% on news that Abu Dhabi National Energy Co. bought them out. Finerman hopes we keep seeing deals like this.
EMC Corporation (EMC) traded up 8% after Citigroup and Bear Stearns upgraded the name. Adami still likes it.
Drops- AMR Corp (AMR) fell 14% after revenue forecasts missed Wall Street expectations. This drop took down all the airline companies for the day.
Harman (HAR) dropped 6% after the company said profits would miss Wall Street expectations. Finerman wouldn't touch it.
Adtran (ADTN) plunged 14% after the telecom company warned on 3rd quarter earnings and revenue. Macke suggests avoiding these guys on the telecom side.
Final Trade:
Finerman: likes NYMEX (NMX)
Najarian: ValueClick (VCLK).
Adami: Pfizer (PFE) for its cheap valuation.
Macke: Short Dow30 ProShares (DOG).

Labels: ATVI, CNBC, CROX, DGX, EMC, Fast Money, FDX, FMCN, GM, GME, HOV, JNJ, MSFT, MYGN, NYX, pfe, SNE, VCLK, WCI

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are 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.
J. Crew (NYSE:JCG - News) . JCG's PowerRating (for Traders) is 4.
5+ Consecutive Down Days: These are stocks that have closed down 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 close down 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.
Capella Education Company (NasdaqGM:CPLA - News). CPLA'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.
Hot Topic (NasdaqGS:HOTT - News). HOTT's PowerRating (for Traders) is 4.
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.
Joy Global (NasdaqGS:JOYG - News). JOYG's PowerRating (for Traders) is 3.
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.
Sony (NYSE:SNE - News). SNE's PowerRating (for Traders) is 3.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Arch Coal (NYSE:ACI - News). ACI's PowerRating (for Traders) is 3.
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.
Blockbuster (NYSE:BBI - News). BBI's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ACI, BBI, CPLA, Hot Stocks, HOTT, JCG, JOYG, SNE

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap 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 gap 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.
Fuel Tech (NasdaqGM:FTEK - News). FTEK's PowerRating is 7.
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.
Albany International (NYSE:AIN - News). AIN's PowerRating is 6.
5+ Consecutive Down Days: These are stocks that have closed down 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 close down 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. Historically, these stocks have provided traders with a significant edge.
Hess Corporation (NYSE:HES - News). HES's PowerRating is 8.
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.
Sony Corporation (NYSE:SNE - News). SNE's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Alcoa (NYSE:AA - News). AA's PowerRating is 8.
Bearish
5+ Consecutive Up Days: 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.
InvesTools (NasdaqGM:SWIM - News). SWIM's PowerRating is 2.
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.
Whole Foods (NasdaqGS:WFMI - News). WFMI's PowerRating is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AA, AIN, FTEK, HES, Hot Stocks, SNE, SWIM, WFMI

CEO Interview: Indra Nooyi, PepsiCo (NYSE: PEP - News)
"The stocks are saying there's going to be a slowdown, so it would be wise for you to prepare for it," said Cramer, and while he isn't urging people to sell all their cyclicals yet, he suggests its time to take some profits. He invited Pepsi CEO and chairman Indra Nooyi onto the show to discuss the company's great performance which she said was due to the company's diverse portfolio and stellar management. Nooyi added, in terms of financial resources, Pepsi is not constrained, and in terms of people-resources, North America is growing and the company's international business is "exploding." Cramer mentioned a Wall Street Journal story that Nestle turned down a merger with Pepsi because it considers the latter company junk-food laden. Nooyi pointed out Pepsi's expansion into non-carbonated beverages and healthy snacks and its production process which conserves energy and water. Cramer remarked Pepsi delivered better than expected numbers and is a the right stock to buy.
Remember the AlaMobile: Texas Instruments (NYSE: TXN - News), Nokia (NYSE: NOK - News), Ericsson (NasdaqGS: ERIC - News), Sony (NYSE: SNE - News), Analog Devices (NYSE: ADI - News), National Semiconductor (NYSE: NSM - News)
With back -to-school tech gadgets in production, Cramer discussed TXN which was hit by a selloff; "I don't care about the quarter," he said. "I care about the future, because that is where we're going to make our money." He would use the decline as a buying opportunity, and thinks its mobile business will energize TXN. He added NOK, ERIC, SNE, ADI and NSM are also doing well. Returning to TXN, Cramer predicts the next quarter will be excellent and adds the company has a "massive rest-of-world" exposure.

Go Cisco (NasdaqGS: CSCO - News)! with Juniper Networks (NasdaqGS: JNPR - News), and Ciena (NasdaqGS: CIEN - News)
Cramer discussed a Financial Times interview during which Cisco CEO John Chambers says he's more enthusiastic about the company than he has been in a decade and the internet is entering a second phase which should last 10 to 15 years. Since Cisco provides the "backbone" for many types of communcation, Cramer doubts Chambers is just trying to sell his company, and notes Cisco rivals are delivering but have less upside than Cisco. Cramer noted Cisco is not expensive, is below its 52-week high, has $22 billion in cash and is protected from the ailing economy with its big international exposure.
Mad Mail: Six Flags (NYSE: SIX - News), Men's Wearhouse (NYSE: MW - News)
Cramer told one viewer not to touch financial stocks. He said he doesn't like SIX's balance sheet, and added the stock will do badly if the weather is not good. He told another mailer he doesn't like Men's Warehouse.
Published By SeekingAlpha

Labels: ADI, CIEN, CSCO, ERIC, Jim Cramer, JNPR, Mad Money, MW, NOK, NSM, PEP, SIX, SNE, TXN

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down 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 close down 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. Historically, these stocks have provided traders with a significant edge.
Alberto-Culver (NYSE:ACV) & Eaton (NYSE:ETN). ACV's PowerRating is 7, and ETN's PowerRating is 6.
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.
CVS Corporation (NYSE:CVS) & Diamonds Trust (NYSE:DIA). CVS's PowerRating is 6, and DIA's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Sony (NYSE:SNE). SNE's PowerRating is 7.
Bearish
5+ Consecutive Up Days: 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.
Dr. Reddy's Labs (NYSE:RDY). RDY's PowerRating is 3.
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.
Komag (NasdaqGS:KOMG). KOMG's PowerRating is 2.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ACV, CVS, DIA, ETN, Hot Stocks, KOMG, RDY, SNE

Apple (NasdaqGS: AAPL - News): 'Let's buy it down. You want to have 200 shares of AAPL, you buy 50 tomorrow at the opening, and then you pray it comes down... until five days before the iPhone is shipped, and then you've got to skee-daddy out of that guy... 'Alcoa (NYSE: AA - News):' ... even though it has had a monster run, and we believe in the stock, I am sticking with AA here.'Sony (NYSE: SNE - News): 'House of pleasure. I think that SNE goes higher ... How many companies come out with a totally third-rate product, that nobody likes, and then goes up 25% because of it ... I think it goes to $53, and there I want to pull the trigger.'Pall (NYSE: PLL - News): ' ... if you really want to go with that filtration game - that you go with Pall.'Tetra Tech (NasdaqGS: TTEK - News): ' ... if you want clean water, they've got it.'NYSE Euronext (NYSE: NYX - News): 'The NYX is not going to go up until everybody sells it, and everybody gets short it, and all the analysts come around and admit that they're wrong about being negative... and then it's going to fly.'
Bearish calls:
Resources Connection (NasdaqGS: RECN - News): ' I would not buy this stock. Don't buy, don't buy.'Skechers USA (NYSE: SKX - News): ' ... they had an inventory problem earlier in the year ... I think that SKX is too dangerous.'Calgon Carbon (NYSE: CCC - News)Verasun Energy (NYSE: VSE - News): 'You're kidding me, right? ... That stock was just created by bankers in order to be able to take the money from you - sell, sell, sell! '
Published by SeekingAlpha

Labels: AA, AAPL, CCC, Jim Cramer, Lightning Round, NYX, Pll, RECN, SKX, SNE, TTEK, VSE

The Dow Jones and S&P 500 continue to flirt with record closings, but today both ended further away than when trading opened. Both fell fractionally, and they were joined by the Nasdaq, which fell -0.47%. Today followed the same pattern of the past two sessions with all three indices climbing early before falling back. At 2:00PM, the downward decline for the day came about, and although there was a slight rebound, it was not enough to push the markets into positive territory for the day's end.
The Energy Information Association announced the weekly gas inventories this morning. The stockpiles rose higher than analyst estimates, almost doubling the prediction of 800,000 barrels. Crude oil stocks also rose by approximately 2 million barrels.
There were a number of retailers out with earnings today, with Target (NYSE: TGT), Men's Wearhouse (NYSE: MWH), and GameStop (NYSE: GME) all reporting results. Target saw first-quarter profits jump 18%, as same-store sales rose 4.3%. Earnings per share rose to 75 cents from 65 cents in 4Q06, an increase of 8%. Target's credit card was also a major profit center, adding $143 million in pretax earnings. Bull Market Report subscribers can read our report on Target's earnings in today's edition.
Men's Wearhouse saw an earnings increase of 49.1%, as sales rose 14.2%. Another growth indicator -- tuxedo rentals in its Men's Wearhouse stores, which accounts for 12% of its revenue stream -- jumped 34.2%. The company also saw benefits from its acquisition of After Hours Formalwear, which analysts expect to bring increased value and revenue to the company.
GameStop also released higher-than-expected earnings today, topping the charts at 111% net earnings growth. The company saw total sales grow 23%, with same-store sales increasing 15.3%, bolstered by the release of next generation hardware such as Sony's (NYSE: SNE) Playstation3 and Nintendo's Wii. A strong game market also helped. The stock fell -4.9%, though, as investors were disappointed with Q2 guidance.
In other news, Alcan (NYSE: AL) rejected a bid made by Alcoa (NYSE: AA). Both companies' stocks rose on the news. Meanwhile, Payless Shoe Source (NYSE: PSS) moved forward in its attempt to purchase Stride Rite shoes, and Boston-based women's health companies Hologic (Nasdaq: HOLX) and Cytyc (Nasdaq: CYTC) agreed to merge.
By the BullMarket.com Staff

Labels: AA, AL, CYTC, GME, HOLX, MWH, PSS, SNE, TGT

Bullish
5+ Consecutive Down Days
These are stocks that have closed down 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 close down 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. Automatic Data Processing (ADP)

2- Period RSI Below 2
These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. CBOT Holdings (CBOT) & Sony (SNE)

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. American Superconductor (AMSC)

Bearish
5+ Consecutive Days Up
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. Blyth Incorporated (BTH)

2- Period RSI Above 98
These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge. First State Bancorporation (FSNM)

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. NutriSystem (NTRI)
John Lee Associate Editor for TradingMarkets.com

Labels: ADP, AMSC, BTH, CBOT, FSNM, Hot Stocks, NTRI, SNE

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap 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 gap 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.
Horizon Lines (NYSE:HRZ - News). HRZ's PowerRating is 7.
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.
Sony Corporation (NYSE:SNE - News). SNE's PowerRating is 7.
5+ Consecutive Down Days: These are stocks that have closed down 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 close down 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.
Bed Bath & Beyond (NasdaqGS:BBBY - News). BBBY's PowerRating 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.
Medarex (NasdaqGM:MEDX - News). MEDX's PowerRating is 8.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Cephalon (NasdaqGS:CEPH - News). CEPH's PowerRating 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.
CSX Corporation (NYSE:CSX - News). CSX's PowerRating is 7.
Bearish
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Pimco Corporate Opportunity (NYSE:PTY - News). PTY's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: BBBY, CEPH, CSX, Hot Stocks, HRZ, MEDX, PTY, SNE

Bristol West Holdings (NYSE:BRW - News) shares jumped 36% Friday after the company agreed to be acquired by Zurich Financial for $712 million in cash, or $22.50 a share. That's a 39% premium to Bristol's close on Thursday. BRW is a leading provider of liability and physical damage insurance focusing exclusively on private passenger automobiles across the U.S., specializing in the non-standard market. Kohlberg Kravis Roberts, which holds 42% of BRW, has agreed to vote in favor of the deal, but BRW has until March 31 to actively solicit other possible bidders.
Shares of Dendrite International (NasdaqGS:DRTE - News) jumped 21% after Cegedim S.A. agreed to acquire the company for $16 a share in cash. The deal values Bedminster, N.J.-based Dendrite, a provider of sales and marketing products and services to the pharmaceutical industry, at roughly $751 million. The offer represents a 40% premium to Dendrite's average share closing price over a 20-day period from Feb. to March 1, the companies said. Cegedim is based in Paris.
Immersion Corp. (NasdaqGM:IMMR - News) shares jumped 17% after the company said it and Sony Corp.'s (NYSE:SNE - News) Sony Computer Entertainment ended their patent litigation in a U.S. Court of Appeals and signed an agreement to explore the inclusion of Immersion technology in PlayStation products. Immersion, a San Jose touch-feedback technology company, also reported its fourth-quarter loss narrowed to $2 million, or 8 cents a share, from $3 million, or 12 cents a share. Revenue rose to $8.6 million from $6.9 million. The agreement is intended to enable "advanced vibration capability" for the PlayStation and provides Sony Computer Entertainment with certain new rights to Immersion's patent portfolio. In ending the litigation, Immersion will receive the amount of the judgment entered by the district court, which includes damages, prejudgment interest, costs, and interest, in addition to retaining compulsory license fees ordered by the district court which were already paid.
Kohl's Corp. (NYSE:KSS - News) shares gained 5.5% after the company said fourth-quarter profit rose nearly 30%, helped by new store openings and strength in its private-label brands.
Methode Electronics (NasdaqGS:METH - News) shares rose 12% after the company said third-quarter sales rose to $105.4 million from $95.1 million a year earlier. Quarterly net income for the global maker of electronic components and subsystem devices was $4.7 million, or 13 cents a share, compared with $2.8 million, or 8 cents, a year earlier. The company said the sales increase was mainly due to improved sales of power distribution products, fiber-optic installations and automotive products in Europe and Asia.
Pall Corp. (NYSE:PLL - News) shares gained 5.4% after the company reported fiscal second-quarter net earnings of $55.8 million, or 45 cents a share, up 72% from $32.4 million, or 26 cents a share, in the year-ago period. On a pro forma basis, the East Hills, N.Y.-based maker of filtration, purification, and separation products reported earnings of 43 cents a share compared with 28 cents a share last year.
Shares of Palm Inc. (NasdaqGS:PALM - News) jumped 11% amid a fresh media reports that the maker of handheld wireless devices might be acquired by Nokia Corp. (NYSE:NOK - News)
Scottish Re Group Ltd. (NYSE:SCT - News) shares rose 11% after the company said the company's shareholders approved proposals relating to an investment of $300 million each by MassMutual Capital Partners LLC and an affiliate of Cerberus Capital Management L.P. Following the closing of the transaction, which was announced in November, MassMutual Capital and Cerberus will have a controlling voting equity interest in the company. MassMutual Capital and Cerberus will purchase one million newly issued preferred shares, which can be converted into 150 million ordinary shares of Scottish Re at any time. The deal is expected to close early in the second quarter.
Published By MarketWatch

Labels: BRW, DRTE, IMMR, KSS, METH, NOK, PALM, Pll, SCT, SNE

Breaking up is Good to Do, Sony (NYSE: SNE - News) and Apple (NASDAQ: AAPL - News)
Now that everyone is talking about Apple, Cramer suggests looking at companies that are not so well-loved but have potential upside. Cramer notes that Sony is the polar opposite of Apple, since it seems incapable of doing anything right and is being written off. Sony is worth $45 billion and should have a revenue of $70 billion while Apple is worth $82 billion and should have a $23 billion revenue. Judging by the numbers, Cramer says that Sony is too cheap and would be even more valuable if it would break itself up. Even if Sony doesn't take that step, the widespread perception that Sony could be worth more after a split-up is enough to raise the stock. Cramer estimates the breakup value would be $61 to $72 and he would buy Sony before it reports on January 30.
Blockbuster Comeback (NYSE: BBI - News), Netflix (NASDAQ: NFLX - News)
Blockbuster was getting trounced by Netflix, but Cramer praises CEO John Antioco who fought back by developing an online business. Now customers can drop videos rented online off at a Blockbuster store which means a "big leg up." Cramer added that the company had 700,000 new customers in November and December, and that customer satisfaction is at an "all time high." Cramer declares that 2007 "will be the year of Blockbuster" and invited the company's "heroic" CEO onto the program. "We've always had a great brand and great retail locations,"Antioco commented, adding that the Total Access campaign, which allows customers to return videos by mail or at stores, has been a success. Cramer concluded that BBI will go higher and he doesn't consider it a speculative play anymore.
Sell Block: Intercontinental Exchange (NYSE: ICE - News), NYSE Group (NYSE: NYX - News), InnerWorkings (NASDAQ: INWK - News), Atherogencis (NASDAQ: AGIX - News) and J. Crew (NYSE: JCG - News)
Cramer commented that he likes NYX better than ICE, even if the latter's "supply pressure" problem were not a factor. In spite of "massive insider selling" going on at INWK, he would sell the stock because it is better to "cut and run." Cramer would also sell AGIX and would buy JCG.
CEO Interview: Mark Shapiro, Six Flags (NYSE: SIX - News)Cramer praised Mark Shapiro for selling seven theme parks for $312 million, and asked how low gas prices would affect SIX. Shapiro replied that this would be "fantastic" for business and predicted a solid year for his company, based on strong early season indicators. He added that Six would "earn itself a new reputation." Cramer added that SIX is a good $5 to $6 speculative stock.
Published By SeekingAlpha

Labels: AAPL, AGIX, BBI, ICE, INWK, JCG, Jim Cramer, Mad Money, NFLX, NYX, SIX, SNE

Rumors follow Apple Computer (Nasdaq: AAPL - News) everywhere. Although only a handful turn out to be true, the company has a history of surprising people with products like the iPod Nano, for example, or the switch to Intel (Nasdaq: INTC - News) processors, so even seemingly far-fetched suggestions tend to get a serious vetting. The latest is a note from analysts at Prudential who have concluded that Apple's recent hiring of video game designers and the company's decision to sell simple iPod-playable video games through its iTunes Store could mean that the company is contemplating releasing a video game console.
Apple's heft in the consumer electronics market, as well as its well-established iTunes-based distribution system, would help the company if it entered the video game market. In addition, the company's forthcoming device, code-named iTV, promises to give Apple a beachhead in the living room, while the tiny Mac Mini is already well-suited to entertainment system setups. Do all of these factors mean that an Apple gaming system is on the way? Not necessarily.
The console market is crowded, with Microsoft (Nasdaq: MSFT - News), Sony (NYSE: SNE - News), and Nintendo doing a pretty good job of covering the market both in terms of price and target audience -- there's not much room here for a new entrant. At the same time, the economics of the game market are challenging, with high-cost consoles routinely sold as loss-leaders and companies hoping to make up the loss by selling games and peripherals. Furthermore, Apple would have to have the backing of major game developers because without compelling games, the console would be dead on arrival.
A likelier scenario then, is that new iterations of the ever-evolving iPod will add more robust handheld gaming function to the device -- a possibility that Prudential also noted. Ultimately, this could end up to be just another Apple story that doesn't go anywhere, but -- like the iPod phone that appears to be on the way -- it underscores Apple's need to continue to push the envelope with its all-important iPod franchise so that the blockbuster device can maintain its huge lead on the competition. A video game console, on the other hand, might not be the ideal way for Apple to grab more living room market share.
By Bullmarket.com

Labels: AAPL, Apple Computer Inc., INTC, iTV, MSFT, SNE

Cover Story: The New IBM by Leslie P. Norton
Highlighted companies: International Business Machines Corp. (NYSE: IBM - News), EMC Corp. (NYSE: EMC - News), Microsoft Corp. (NASDAQ: MSFT - News), Dell Inc. (NASDAQ: DELL - News), Hewlett-Packard Co. (NYSE: HPQ - News), Citigroup Inc. (NYSE: C - News), Sun Microsystems Inc. (NASDAQ: SUNW - News), Siemens AG (NYSE: SI - News), Accenture Ltd. (NYSE: ACN - News), Infosys Technologies Ltd. (NASDAQ: INFY - News), Wipro Ltd. (NYSE: WIT - News), SAP AG (NYSE: SAP - News),Summary: Barron's cover story takes a bullish stance on International Business Machines Corp. (NYSE: IBM - News). CEO Samuel Palmisano, who few thought would radically part ways with his predecessor Louis Gerstner when he took over in 2002, is doing his best to reinvent the giant and transition it from a hardware/mainframe focus to a middleware producer which can make big dough with its exceptional software margins (85%), followed-up with client services. Some key points:
2006 earnings are expected to grow 12%, and 2007 by another 9% ($5.98 and $6.54).
Shares trade at 15x earnings vs. 25x for EMC Corp. (NYSE: EMC - News), 23 for Dell Inc. (NASDAQ: DELL - News), and 20 for Microsoft Corp. (NASDAQ: MSFT - News).
Its $10b cash on hand can be and has been used to boost earnings through swallowing up smaller software companies and speculative investments such as last month's Citigroup Inc. (NYSE: C - News) partnership in China's Guangdong Development Bank.
A decade ago most IBM software ran on its mainframes. Today it's the world's largest middleware vendor through brands WebSphere, Lotus, Tivoli, Rational and DB2 brands. Its legacy software, such as the operating systems for IBM mainframes and servers, "don't blow anyone's doors off," but are still big money makers.
Its middleware helps companies implement "Service Oriented Architecture" [SOA], a buzzword for the growing trend to make computer systems more flexible and adaptable to changing business needs. IBM sells over 3x more SOA products and services than anyone else.
Its traditional services department has been hit by competition, particularly Indian rivals which low-cost services. IBM has restructured its service unit, and plans to invest $6b in India, possibly acquiring another firm to go along with its purchase of outsourcing company Daksh. This quarter IBM won a $300 million contract with Scotland's public health service, an $863 million deal with the State of Texas, and is expected to sign a 10-year $8.45 billion contract with Siemens AG (NYSE: SI - News) to modernize technology for the German military.
Its "cash-cow hardware division keeps ticking," with Q3 growth up 8.8% (versus 5% in 2005) from higher mainframe revenues and gains in IBM's Technology Collaboration operation.
IBM processors are at the core of all major videogame consoles, including Sony's (NYSE: SNE - News) new PlayStation 3. Bob Djurdjevic of Annex Research predicts that Technology Collaboration, its R&D and semiconductor-design unit, "will become so large that it deserves comparison to IBM's shift to services several years ago." Palmisano: "We have a top share in servers and Linux, No. 1 in blade servers, which is a huge growth area... No. 1 in supercomputing, No. 1 in SOA... We're No. 1 in middleware... IBM is a stronger company today than it was four years ago, with stronger margins, solid cash and earnings." Barron's: You don't need a computer to know what that trend could do for IBM's shares.

What's in His Wallet? by John Kimelman
Highlighted companies: CompuCredit Corp. (NASDAQ: CCRT - News), Capital One Financial Corp. (NYSE: COF - News), RenaissanceRe Holdings Ltd. (NYSE: RNR - News), Citigroup Inc. (NYSE: C - News), Bank of America Corp. (NYSE: BAC - News), JPMorgan & Chase Co. (NYSE: JPM - News), Wachovia Corp. (NYSE: WB - News), Tennessee Commerce Bancorp (NASDAQ: TNCC - News)Summary: Tom Brown's Second Curve Capital hedge-fund invests exclusively in financial services stocks, and has generated 20% yearly returns since its start in May 2000. Stocks mentioned:
CompuCredit Corp. (NASDAQ: CCRT - News): A sub-prime lender that instead of focusing on credit cards, offers payday and automobile loans. Brown concedes that sub-prime lenders may be vulnerable to economic slowdowns, but sees risk assessment as a far more critical determinant. Calls CCRT's $700m of excess liquidity a "wild card" that could be used for earnings growth. Shares trade at 6x '08 earnings, and he expects earnings growth of 20%+.
Capital One Financial Corp. (NYSE: COF - News): Within a year credit cards will be less than half of its earnings. It trades at 8x '07 earnings. "Next year it will be perceived as a rapidly growing diversified financial institution."
RenaissanceRe Holdings Ltd. (NYSE: RNR - News): 2004-5 hurricane devastation led to a dramatic repricing in the reinsurance industry that will drive 20%+ growth for another couple years. It trades at 6x 2007 estimates, which Browns says are too low.
Citigroup Inc. (NYSE: C - News) Bank of America Corp. (NYSE: BAC - News) JPMorgan & Chase Co. (NYSE: JPM - News) Wachovia Corp. (NYSE: WB - News): Due to their size, they stand little chance of having a serious earnings shortfall, but huge earnings beats are equally unlikely. If Citigroup management starts taking action like selling off some businesses, it could go up 10-15%.
Regional banks: He's short the sector, particularly banks that bet on falling interest rates and steep yield-curves. He doesn't see the yield-curve steepening in the coming year. He likes Tennessee Commerce Bancorp (NASDAQ: TNCC - News) because of its focus on the small business customer that "more than compensates for its exposure to the yield curve -- they can grow their earnings rapidly despite the difficult interest-rate environment."

At Duke, A Powerful Idea by Jack Willoughby
Highlighted companies: Duke Energy Corp. (NYSE: DUK - News)Summary: Duke Energy's planned January spinoff of its natural-gas operations into Spectra Energy is 'turnaround wiz' Chairman Paul Anderson's brainchild. He hopes the split will bring "full value" for its underappreciated gas assets, including 17,500 miles of pipeline. The two businesses trade differently: (1) Gas companies trade for multiples of cash flow and electrics for multiples of earnings. (2) Gas concerns command richer valuations, in part because they make use of master limited partnerships which allow them to pass tax-free cash through to investors. (3) Spectra faces fewer regulatory hurdles than electric utilities, and expansion opportunities abound due to underinvestment in pipelines and storage, and rising demand. Duke shareholders are to receive one Spectra share for every two shares of Duke common, meaning they would get Spectra stock for $8 per share. Analysts believe it could trade for double. According to analyst Nathan Judge, Duke's assets are worth about $37 a share, 17% above the recent stock price of $31. Utilities analyst John Bartlett calls Duke, "an excellent way to capitalize on both the need for new energy infrastructure and the potential for a higher valuation as the market recognizes the strength of the underlying utility business."Barron's bottom line: After the spinoff, Duke could trade for $23 and change; Spectra, for $16.45.

TECHNOLOGY TRADER: Microsoft's Bold Voyage Begins by Bill Alpert
Highlighted companies: Microsoft Corp. (NASDAQ: MSFT - News), Cisco Systems Inc. (NASDAQ: CSCO - News)Summary: Shares of Microsoft Corp. (NASDAQ: MSFT - News) are up 35% since June to $29 as investors anticipate big upgrade revenues from Vista and Office 2007. Shares presently trade at 20x 2006 expected cash flow of over $15b. While some investors are skeptical that Vista can deliver the growth bulls think it will, Barron's likes last week's launch, the fact that profit margins on Vista and Office exceed 60%, and that forecasts are conservative in estimating only 50% of its installed base will upgrade. New server-based voice communication and collaborative software look to be stiff competition for Cisco Systems Inc. (NASDAQ: CSCO - News), and it seems MSFT will finally start turning a profit on Xbox 360. The company plans to use up to $40b of its massive cash stash in stock buybacks, which combined with a rise in revenues from its new products could get per-share cash-flow up to 15%, and push shares into the mid 30s.

TECHNOLOGY TRADER: Dell by Bill Alpert
Highlighted companies: Dell Inc. (NASDAQ: DELL - News), Hewlett-Packard Co. (NYSE: HPQ - News), EMC Corp. (NYSE: EMC - News)Summary: Friedman Billings Ramsey hardware analyst Clay Sumner asserts in a report published Friday that Dell (NASDAQ: DELL - News) has been manipulating its earnings by under-compensating for warranty costs; he claims Dell EPS figures have overstated earnings by $0.02-$0.08/share in five of the past 12 quarters. He accuses Dell of using warranty accruals to custom-fit earnings -- citing that while warranty claim rates have been relatively stable, accrual rates have varied wildly. Dell, he says, tends to under-accrue during poor seasons and over-accrue in better times, but the overall trend since Q3 2003 has been toward under-accrual. Warranty costs are currently 46% of its warranty reserve, well above Hewlett-Packard Co.'s (NYSE: HPQ - News) 26% and EMC Corp.'s (NYSE: EMC - News) 13%, and that Dell with its large corporate sales base (85%) should be more in-line with EMC that with HP. With actual claims rising steadily, he warns earnings restatements may be on the way.

Tracking the Smartest Money by Andrew Bary
Summary: Barron's identifies five top-notch hedge funds whose investment moves are closely watched by the industry, revealing their top holdings and some recent transactions:
David Tepper's Appaloosa Fund: (1) Oracle Corp. (NASDAQ: ORCL - News) (2) Micron Technology Inc. (NYSE: MU - News) (3) Applied Materials Inc. (NASDAQ: AMAT - News). Other big holdings: Cisco Systems Inc. (NASDAQ: CSCO - News), Microsoft Corp. (NASDAQ: MSFT - News), Texas Instruments Inc. (NYSE: TXN - News), NASDAQ 100 Trust Shares ETF (NASDAQ: QQQQ - News), AMR Corp. (NYSE: AMR - News), UAL Corp. (NASDAQ: UAUA - News), and Continental Airlines Corp. (NYSE: CAL - News). Notes tech stocks aren't the bargains they were earlier in the year.
David Einhorn's Greenlight Fund: (1) Ameriprise Financial Inc. (NYSE: AMP - News) (2) Microsoft (3) Hospira Inc. (NYSE: HSP - News). In May Einhorn talked about his affinity for Microsoft, saying that buying Microsoft at $23 was like getting Alex Rodriguez for a merely average price in a fantasy-baseball draft.
Steve Mandel's Lone Pine Capital Fund: (1) Brookfield Asset Management Inc. (NYSE: BAM - News) (2) Google Inc. (NASDAQ: GOOG - News) (3) Comcast Corp. (NASDAQ: CMCSA - News). Mandel cut his Google position by 25% in Q3, suggesting it may be getting too rich for him. He added to Comcast and Qualcomm Inc. (NASDAQ: QCOM - News), sold Research In Motion Ltd. (NASDAQ: RIMM - News) and America Movil SA de CV (NYSE: AMX - News), and established a position in Schlumberger Ltd. (NYSE: SLB - News).
Ed Lampert's ESL Investment: (1) Sears Holdings Corp. (NASDAQ: SHLD - News) (2) AutoZone Inc. (NYSE: AZO - News) (3) AutoNation Inc. (NYSE: AN - News). The three comprise Sears Holdings' CEO's entire portfolio. Barron's says many hedge-fund managers own Sears out of admiration for his retailing skills.
Activist investor Carl Icahn: (1) Time Warner Inc. (NYSE: TWX - News) (2) ImClone Systems Inc. (NASDAQ: IMCL - News) (3) American Railcar Industries (NASDAQ: ARII - News).

THE TRADER: Retail Stocks by Vito J. Racanelli
Highlighted companies: Tiffany & Co. (NYSE: TIF - News), The Home Depot Inc. (NYSE: HD - News), Best Buy Co. Inc. (NYSE: BBY - News), Circuit City Stores Inc. (NYSE: CC - News), Wal-Mart Stores Inc. (NYSE: WMT - News), Federated Department Stores Inc. (NYSE: FD - News)Summary: Despite TV coverage of shoppers stampeding through malls, retail stocks were down last week; the internet group was down 7% while department stores fell 4%. According to Lehman Brothers' chief technical analyst, Jeffrey deGraaf, retail stocks tend to peak in the days that straddle Thanksgiving, then drifting down through most of December before Christmas. Generally it's better to wait until just before Christmas to play the sector; its long-term outlook is neutral. Stocks noted: Tiffany & Co. (NYSE: TIF - News) -- showing a good technical pattern. The Home Depot Inc. (NYSE: HD -