Jim Cramer Blog

Erin Burnett started the show discussing the Fed's new U.S economy survey with Diana Olick and Steve Liesman, both of CNBC. Diana says that the standards are tighter on consumer loans as well as residential. Stave adds that barriers have been created by the tighter credit and lending institutions. Mortgage delinquencies have drastically increased in the past quarter. The pace of homebuilding is low and is not expected to pick back up until, at best, well in to 2008. The DOW, Nasdaq and S&P have all shown improvements today. Bonds and Oil are down, stocks are at a high for the day; says Bob Pisani. Freddie Mac (FRE) and CITI Group are today's leaders in the financial sector. Exxon Mobil, Sunoco and Valero Energy are among the top five stocks in the energy sector. Next, Steve Burton of ING Global Real Estate Fund says we like companies with a conservative business model. Also mall stocks in Europe, Asia and the U.S. are considered good investments. Simon Property (SPG) is his top pick of the day. The next topic was Saudi Arabian oil reserves. Countless terror attack attempts have been foiled; by over 200 arrests being made on terror plot suspects. The attempt to infiltrate the infrastructure of Saudi reserves could be quite an issue, being that Saudi Arabia operates over one quarter of the reserves in the world. Next topic was the Chinese economy. Zachary Karabell of Fred Alger Management says there is no greater sign of investor panic in China, adding that their economy is an engine for growth. Shanghai Composite is seeing increases in the triple digits today. Very strong earnings growth is expected for any Chinese investments. Erin than talked about how private equity markets such as the Middle East are looking east for investments. They said they are trying to align themselves with interest allocaters to make some of these investments work. Colony Capital is currently one of the largest private equity investors. They currently have $26B in assets. They own office, hospitality, gaming, residential, and retail properties globally. Colony closed its largest acquisition this month by taking over Station Casinos for $8.8 B. Stop Trading with Jim Cramer was next. He says that he will be buying rather than selling within the financial sector.

Labels: Citigroup Inc., CNBC, Erin Burnett, EXXON MOBIL, FRE, ING, Jim Cramer, Jim Cramer's Stop Trading, SPG, Street Signs, street signs recap

Bullish:
Apple (NasdaqGS: AAPL): 'I said, at $85 and change it was anointed. It's up $8....because they indeed blew away the numbers.'Savient Pharmaceuticals (NasdaqGM: SVNT): ' ... still like it as much as I did at the beginning of the year. I like their uric acid product. I'm not backing away.'BioMarin Phramaceutical (NasdaqGM: BMRN):' I know people were disappointed in that last quarter. I think it's a mistake. BMRN is a good biotech stock, and a takeover target.'AT&T (NYSE: T)State Street (NYSE: STT): 'I think that the mutual fund clearing business is a great business, a great way to participate in this rally. STT is a thumb and a half up.'Pozen (NasdaqGM: POZN): 'They get that migraine stuff... I mean, this company... There are so many ways to win.'Nastech Pharmaceutical (NasdaqGM: NSTK): ' ... we identified at $10 and it went to $13.50. I'm going to join you on the buy side there. I think you're in good shape. Buy, buy, buy!'Burger King (NYSE: BKC): ... it's been on fire. BKC is a reformed, better outfit. It's really good ... easily, easily going up to $26-$27.'McDonald's (NYSE: MCD)Parker-Hannifin (NYSE: PH): 'Do not lose heart! That was a beautiful quarter. They will find it ... Even though it's been up a lot in the last year... you say I want some PH, and then you get the stampede. That stock is going to $100.'Tellabs (NasdaqGS: TLAB): 'Quite frankly, I thought the stock should have been single digits after that call ... I smell merger. I smell buyout. I smell takeout. Sit with your TLAB. I think something good is going to happen.'Thermo Fisher Scientific (NYSE: TMO): Have much have we liked TMO?... 52-week-high? No, no. More ahead. $50 goes to $60, TMO!'Trinity Industries (NYSE: TRN):Charter Communications (NasdaqGM: CHTR): 'CHTR's minding its own business, going higher ... CHTR, it reports May 2nd. I like the stock very much.'
Bearish calls:
MetroPCS Communications (NYSE: PCS): 'Let's not be too greedy. That stock has had a run. The other ones haven't. I'd actually be more conservative.'Simon Property Group (NYSE: SPG): 'Let that one come in. The commercial real estate market has had a great run. It's not where I want to be right now.'XM Satellite Radio (NasdaqGS: XMSR): 'No. That's a bleeding contest. That's one of those where you're darned if you do and darned if you don't. The congress won't let these two companies merge.'
Published By SeekingAlpha

Labels: AAPL, BKC, Jim Cramer, Lightning Round, Mad Money, PCS, PH, SPG, STT, SVNT, TMO, TRN, XMSR

Rethinking Spartan Motors Spartan Motors (NasdaqGS: SPAR)
Although he initially rejected a pitch for Spartan Motors made by an IU Kelley School of Business student, Cramer is now bullish after investigating the stock further. Initially, he thought SPAR was mainly involved with recreational vehicles which would be out of favor with rising oil prices. However, Spartan also manufactures emergency vehicles, and since 55% of the nation's firetrucks need replacing, Spartan vehicles will be in demand. In addition, the armed forces require vehicles that will protect soldiers from roadside bombs. Spartan's military motor division recently scored the second largest contract in its history. The company's RV business is doing well, because baby boomers love RVs. While Spartan has a great story, Cramer cautions that this small-cap speculative stock may not be for everyone and to wait for a pullback before buying.
Sell Block: WCI Communities (NYSE: WCI - News), Simon Property Group (NYSE: SPG - News), Hologic (NasdaqGS: HOLX), Norfolk Southern (NYSE: NSC - News), Union Pacific (NYSE: UNP - News), Greenbrier Companies (NYSE: GBX - News), Coldwater Creek (NasdaqGS: CWTR), Gilead Sciences (NasdaqGS: GILD), Celgene (NasdaqGS: CELG), Altria (NYSE: MO - News), Kraft (NYSE: KFT - News) Take-Two Interactive (NasdaqGS: TTWO)
Cramer is "adamant that homebuilders can't be owned" and would sell WCI even though it hasn't moved, along with SPG, which has had a big increase. He would also sell HOLX which is "priced for perfection" but which has been the target of articles suggesting its products are less than perfect. Cramer likes rails as a "happy oligopoly, but given NSC's disappointing guidance, he would swap it for UNP on any strength. Cramer confessed "I deserve to be roasted over hot coals" for recommending GBX as a short-busting play when the stock has had a huge drop. Cramer wants to avoid getting burned again over CWTR and would sell even though it seems to be making a comeback. He thinks upgrades of semiconductors are "insane" and would get rid of the entire sector. Gilead, Cramer's "bio stock of the year" is now too expensive, and he would sell it or swap into Celgene. Now that Altria has spun off Kraft, Cramer would hold onto MO and sell KFT; "American cheese just doesn't turn it's customers into hopeless addicts."Finally, the fact that it is difficult to zero in on what is really wrong with TTWO is the best reason to sell it.
Mad Mail: Deere (NYSE: DE - News), Coca-Cola (NYSE: KO - News)
Cramer would back up the truck and buy DE because, for the long-term "we are in a secular bull market inf farming" and sees a strong comeback for Deere. Cramer also likes KO because if it's brand turns around in Japan, KO could rise from $50 to $55.

Published by SeekingAlpha

Labels: DE, GBX, HOLX, Jim Cramer, KFT, KO, Mad Money, MO, NSC, SPAR, SPG, TTWO, UNP, WCI

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.
Mastercard Apr 125 Calls (NYSE:MA - News). PowerRating not available due to less than 200 days of trading history.
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.
Digital River Mar 55 Puts (NasdaqGS:DRIV - News). DRIV's PowerRating is 4.
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 Apr 90 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Bear Sterns Apr 145 Puts (NYSE:BSC - News). BSC'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.
Simon Property Group (NYSE:SPG - News). SPG'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 suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock. IndyMac Bancorp (NYSE:NDE - News). NDE'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.
Micron Technology (NYSE:MU - News). MU's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, BSC, DRIV, MA, MU, NDE, SPG, stock options

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