Jim Cramer Blog

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Genentech (NYSE:DNA - News) beat earnings estimates on Monday afternoon, reporting $0.69 EPS over a consensus of $0.67 EPS. DNA's PowerRating (for Traders) is 3.
Charles Schwab (NasdaqGS:SCHW - News) reports earnings on Tuesday before the market opens, with traders looking for $0.26 EPS. SCHW's PowerRating (for Traders) is 6.
Analysts expect Citigroup (NYSE:C - News) to report -$1.00 EPS on Tuesday before the bell. C's PowerRating (for Traders) is 3.
State Street (NYSE:STT - News) announces quarterly results on Tuesday morning; look for $1.31 EPS. STT's PowerRating (for Traders) is 5.
US Bancorp (NYSE:USB - News) is looking to report $0.59 EPS on Tuesday before the market opens. USB's PowerRating (for Traders) is 4.
After the close, watch for Intel (NasdaqGS:INTC - News) to announce $0.40 EPS in quarterly results. INTC's PowerRating (for Traders) is 4.
Linear Tech (NasdaqGS:LLTC - News) should report $0.41 EPS on Tuesday afternoon. LLTC's PowerRating (for Traders) is 5.

Labels: C, DNA, Hot Stocks, INTC, LLTC, SCHW, STT, USB

Abbott Labs (ABT): Cramer likes this stock because it has great drugs and diagnostics. He also recommended Baxter (BAX), Bard (BCR), and Becton Dickinson (BDX).
Infinera (INFN): Cramer doesn't want to be in this stock because he doesn't like the optical sector.
Southern Copper (PCU): Cramer is bullish on this stock, but he thinks Freeport McMoran (FCX) is better since it's cheap and he thinks it will be taken over soon.
Nordstroms (JWN): Cramer thinks this stock should go up to $36, so he would buy the stock here.
E*Trade (ETFC): Cramer thinks you will get hurt if you try to invest in this stock. He is bearish.
Anthracite Capital (AHR): This is a residential REIT, so Cramer is bearish. He recommended the caller buy Annaly Capital (NLY) instead.
Anadarko Petroleum (APC): Cramer thinks this stock is terrific, along with Apache (APA), Devon (DVN), and XTO (XTO).
Trane (TT): Cramer said he has been looking at this stock and was actually going to recommend it later tonight, but he has second thoughts about it because of its residential construction exposure. He still thinks it is a well run company.
Northern Trust (NTRS): Cramer thinks this and State Street (STT) are the best run financial institutions in the country, so he wants to recommend both of them.

Labels: ABT, AHR, APA, APC, BAX, DVN, ETFC, FCX, INFN, Jim Cramer, JWN, Lightning Round, Mad Money, NLY, PCU, STT, TT NTRS, XTO

Financials: Washington Mutual (WM) fell 16% on Wednesday after reporting that credit losses for the year could be as much as $2.9 billion. Adami concedes Goldman Sachs (GS) could trade down to $205 and that is where investors should look to buy it. Finerman likes Goldman and is currently long the company and short Lehman Brothers Holdings (LEH) and Merrill Lynch (MER). Najarian recommends State Street (STT). Morgan Stanley (MS) took a $3.7 billion write-down for the fourth-quarter.
Crude oil hit another record high on Wednesday trading up to $98.62. Addison Armstrong, Director of Market Research at Tradition Energy joined the show and said the long term trend is still bullish for oil. He sees that oil demand is strong and supply is very tight and the oil markets have zero margin for error right now. Najarian mentions the largest oil trader on the New York Mercantile Exchange told him that oil is the new currency and it's going to $150.
Consumer Trade
Same-store sales are set to be released for some of the biggest retailers on Thursday. Finerman likes that expectations are low and she still owns Wal-Mart (WMT) Adami declares the only way to play the retailers is with MasterCard (MA).
Word on the Street
American International Group (AIG) falls 3% after hours on a 27% drop in third quarter profits. Cisco Systems (CSCO) falls 9% after hours despite a 37% rise in first quarter profits. Research In Motion (RIMM) and Amazon (AMZN) bucked the market weakness to close higher on Wednesday. Adami mentions that Citigroup upgraded Allstate (ALL) and he would own it here for a trade, and stop out at $50. First Solar (FSLR) explodes up 22% after hours on a blowout quarter.
Pops & Drops
Pops - Potash (POT) traded up 2%.
Onyx Pharmaceuticals (ONXX) exploded up 18% after the drug company posted a third quarter profit.
DirectTV (DTV) traded up 3% after subscribers grew by 400,000.
TurboChef Technologies (OVEN) traded up 9% after the oven maker reported a smaller loss.
Drops - Fannie Mae (FNM) fell 10%
Ford Motor (F) fell 5% in front of earnings set for Thursday.
Yahoo (YHOO) fell 8% after Alibaba.com fell 17%.
Capital One (COF) fell 16% after warning on credit losses.
Fluor (FLR) fell 6% after missing Wall Street estimates.
Final Trade
Seymour thinks its payday with Gold Fields (GFI).
Adami's play is Short Dow30 Proshares (DOG).
Finerman still recommends being long Goldman Sachs (GS) and short Lehman Brothers (LEH).
Najarian likes green play Evergreen Solar (ESLR).

Labels: AIG, CNBC, CNBC's Fast Money, CSCO, Fast Money, FSLR, GS, LEH, MER, RIMM, STT, WM

Stocks opened the session lower after disappointing economic data caused investors to be wary of current economic conditions. Later in the day, equities accelerated their losses after credit fears once again took control of the market. All the major stock indices closed near their lows for the day. Over in the energy patch, oil prices also ended the day slightly lower.
On the economic docket today, the New York Conference board said that consumer confidence this month plunged the most since Hurricane Katrina nearly two years ago. The index fell to 105, from a revised 111.9 in July, the conference board said. Even though the readings were low, economists were looking for a larger drop to 104. Elsewhere, home prices fell the most in 20 years according to the Case-Shiller report, which recorded a -3.2% drop in home sales nationally in the second quarter.
In company-related news, consumer and commercial finance company CIT Group (NYSE: CIT - News) announced that it would close its mortgage lending operations and take a $35 million pretax charge in its third quarter for severance and exit costs. Last month, the company reported a loss due to a $495.3 million after-tax charge to reduce the value of some home loan receivables. The company also announced that it is cutting 550 jobs.
Shares of financial service company State Street (NYSE: STT - News) plunged after it reported in filings that it has exposure to about $29 billion worth of commercial paper conduits. Conduits are retail and commercial loans that are bundled into packages and backed by short-term debt from the commercial paper market. Also plaguing the company are reports that of one of its bond funds has lost more than a third of its value in recent weeks.
Internet service provider (ISP) EarthLink (Nasdaq: ELNK - News) shares rose after the company announced that it will cut 900 jobs or half of its work force and close four offices in an attempt to reduce operating costs. It also announced that it will repurchase $200 million of its own stock. The company cut its sales range for the year to $1.19-$1.21 billion, down from a previous range of $1.23-$1.24 billion. Full-year net loss is expected to come in between -$79 to -109 million.
On the deal front, pharmacy benefit manager Medco Health Solutions (NYSE: MHS - News) agreed to buy blood-glucose test maker Polymedica (Nasdaq: PLMD - News) in an all-cash deal valued at $1.5 billion, or $53 a share, which represents a 17% premium to where the shares closed on Monday. Medco says the deal will help it boost sales of its diabetes care products.
By the BullMarket.com Staff

Labels: CIT, ELNK, MHS, PLMD, STT

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.
Compuware (NasdaqGS:CPWR - News). CPWR's PowerRating is 6.
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.
Dendreon (NasdaqGM:DNDN - News). DNDN's PowerRating is 5.
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.
State Street Corporation (NYSE:STT - News). STT'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.
Hormel Foods (NYSE:HRL - News). HRL'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.
Mastercard (NYSE:MA - News). MA'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.
NYSE Euronext (NYSE:NYX - News). NYX'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.
JDS Uniphase (NasdaqGS:JDSU - News). JDSU's PowerRating is 2.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CPWR, DNDN, Hot Stocks, HRL, JDSU, MA, NYX, STT

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

Fortress Investment Group, Sears Holdings (NasdaqGS: SHLD) and Goldman Sachs (NYSE: GS - News)
Cramer comments that Fortress Investments, which will become the first publicly traded hedge fund on Friday, will serve as a yardstick for Sears which is really an investment, rather than a retail, business. Cramer calls Sears' CEO Eddie Lampert "one of the best money managers in history," but because there were no publicly traded hedge funds up until now, there has been no way to gauge SHLD's worth. "Fortress' multiple, which will probably be 17 times earnings, tells us what we should pay for Sears' investment business," Cramer said, and noted that investors will realize that Sears is cheap. While some think that Fortress could also be a gauge for GS, Cramer does not agree, since GS is more than a hedge fund. He predicts that SHLD will rise to at least $237 a share from $180.81.
State Street (NYSE: STT - News), Investors Financial Services (NasdaqGS: IFIN), DST Systems (NYSE: DST - News), Bank of America (NYSE: BAC - News), SunTrust (NYSE: STI - News)
Cramer says that asset management firms like DST "should have gone up huge" when STT made a bid to acquire IFIN. This didn't happen, and Cramer thinks it is "wrong" but would use the opportunity to buy DST, which he believes is the next takeover target. He thinks potential buyers may be BAC or STI, and even if DST doesn't get bought, it had a "blowout" quarter, is still cheap and has good fundamentals. Although DST is not worth as much as Investors Financial, it should increase from $71.94 to $88.
Sell Block: Avon (NYSE: AVP - News), Wells Fargo (NYSE: WFC - News), Goldman Sachs (NYSE: GS - News), Abercrombie & Fitch (NYSE: ANF - News), Circuit City (NYSE: CC - News), Best Buy (NYSE: BBY - News)
Cramer said he regretted placing Andrea Jung on his bad CEO list, because Avon recently reported a great quarter; "the company showed real growth afte a long time," he said. Although Cramer has liked WFC for "seemingly forever" he would sell since he feels it is expensive. Cramer said it isn't necessary to drop one's entire position, but would swap some into GS. Cramer would take profits in ANF, would sell CC and would buy BBY.
Mad Mail: Altria (NYSE: MO - News), Las Vegas Sands (NYSE: LVS - News), Diageo (NYSE: DEO - News), Level 3 Communications (NasdaqGS: LVLT)
Cramer commented that MO and DEO have solid dividends and do not resemble LVS which is a "high-rolling, conceivably one-month shortfall of a Macau stock." Cramer sees a turnaround in LVLT, which is taking care of its debt, but he suggested doing homework and checking out the company's conference call before buying.
Published By SeekingAlpha

Labels: ANF, AVP, BAC, BBY, CC, DEO, DST, GS, Jim Cramer, LVS, Mad Money, MO, SHLD, STI, STT, WFC

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.
National Finance Partners (NYSE:NFP - News). NFP's PowerRating is 6.
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.
State Street Corporation (NYSE:STT - News). STT'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.
Andrew Corporation (NasdaqGS:ANDW - News). ANDW'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.
TJX Companies (NYSE:TJX - News). TJX'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.
Greater China Fund (NYSE:GCH - News). GCH's PowerRating is 8.
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.
Illumina (NasdaqGM:ILMN - News). ILMN's PowerRating 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.
Sify Limited (NasdaqGM:SIFY - News). SIFY's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: ANDW, GCH, Hot Stocks, ILMN, NFP, SIFY, STT, TJX

State Street Corp. said Monday it will buy Investors Financial Services Corp. for $4.18 billion in stock to expand into providing institutional asset services for the fast-growing hedge fund industry and funds managed overseas.
State Street said it eclipsed other bidders in reaching a deal between two Boston-based firms that would pay IFS investors a 38 percent premium on the value of their shares. Shares of Investors Financial Services soared nearly 28 percent in midday trading, while State Street's stock tumbled 6 percent.

Labels: IFIN, Investors Financial Services Corp., State Street Corp., STT

Stocks drifted throughout a generally quiet trading day and finally closed mixed. The Dow Jones Industrial Average posted a slim gain, but the broader market averages closed lower. The 10-year Treasury note started off the week by moving higher, while crude oil and natural gas prices continued to climb as cold weather gripped a large portion of the nation.
Private equity investments were once again behind some of the day's sharpest gains. Triad Hospitals (NYSE: TRI - News) surged 15% after announcing that it had agreed to be acquired by CCMP Capital Advisors and GS Capital Partners for approximately $4.7 billion, excluding debt. Investor Carl Icahn, meanwhile, offered $2.8 billion for auto parts maker Lear (NYSE: LEA - News). Investors bid up the stock 11% on news of the $36 a share offer, but one current shareholder told The Wall Street Journal that the offer was "ridiculously low." Fellow auto parts makers like Tenneco (NYSE: TEN - News) and ArvinMeritor (NYSE: ARM - News) also closed higher.
In other merger news, State Street (NYSE: STT - News) announced that it would acquire Investors Financial Services (Nasdaq: IFIN - News) for $4.5 billion in an all-stock deal. Investors Financial shot up 27% on the announcement, but investors frowned on State Street, knocking its shares down -6% in the belief that it was overpaying. The companies each provide a variety of advisory and back-office services to institutional investors.
Health insurer Humana (NYSE: HUM - News) reported that Q4 earnings more than doubled, driven by strength in its Medicare business. The company reported profits of $155 million, or 92 cents per share, compared to $62 million, or 37 cents a share, in the year-ago period. Humana also raised its 2007 outlook. It now expects to earn $4.00-4.20 a share, up from its previous estimate of $3.90-4.10 per share. The nation's largest health insurer, in contrast, slipped today after UnitedHealth Group (NYSE: UNH - News) cut its 2007 revenue forecast, citing slippage in its Medicare-related health plans.
Wal-Mart (NYSE: WMT - News) rose after the company announced on Saturday that expected January same-store sales exceeded its earlier conservative forecast. Wal-Mart said same-store sales rose 2.2% last month, topping its estimate for an increase of 1-2%. Wal-Mart also said that starting with February's results, it will release same-store sales figures on the first Thursday of the following months, putting it on the same schedule as the majority of U.S. retailers.
Nursing home operator Kindred Healthcare (NYSE: KND - News) rose 5% after it was upgraded to a "buy" from "hold" by Stifel Nicolaus. Argonaut Group (Nasdaq: AGII - News), which underwrites specialty insurance products, gained 5% after releasing earnings and being upgraded to a "outperform" by Friedman Billings Ramsey. Argonaut reported a profit of $31 million, or 92 cents per share, in Q4, up from $25 million, or 76 cents per share, in the year-earlier quarter.
By Bullmarket.com Staff

Labels: AGII, ARM, HUM, IFIN, KND, LEA, STT, TEN, TRI, UNH, WMT

Wave of mergers has been unable to push stocks higher to start the trading week. A number of multi-billion dollar deals have benefited some individual stocks, but the broader market has stayed close to the flat line Monday. Same-store sales news from Wal-Mart (WMT) and a major order for Boeing (BA) have kept the Dow ($INDU) in the black, but not by much. WMT announced that same-store sales rose 2.2 percent in January, above its prior forecast. The retailing giant didnt go into details, preferring to wait until the official report on Thursday. Nonetheless, WMT shares are up more than one percent on the session. Retailers will be in focus this week as they provide January sales data. The S&P Retail Index ($RLX) is trading slightly in the red in midday action.Boeing shares are up almost one percent Monday as well following a major order from UPS (UPS). BA received an order for 27 Boeing 767-300ER freighters at a list price of $3.9 billion. BA shares have done quite well this past year, up 27 percent. The stock has advanced 12 percent in the past three months alone. In merger news, State Street Corp (STT) has agreed to buy Investors Financial Services (IFIN) for $4.5 billion in stock. IFIN shareholders will receive 0.906 shares of STT for each share of IFIN they own. This values IFIN shares at $65, which is $18 above its closing price on Friday. IFIN shares are up nearly 30 percent on the news. STT shares, as is usually the case, are down more than 5 percent. Other deals include Triad Hospitals (TRI) decision to go private in a deal valued at $6.4 billion. This news has pushed TRI shares up 15 percent on the session. Hanover Compressor (HC) and Universal Compressor (UCO) agreed to merge in a deal valued at $3.8 billion. Both stocks are up sharply on the news at 16 percent and 13 percent respectively.The chip sector has been a story Monday on a downgrade of Micron (MU) and earnings news from KLA-Tencor (KLAC). MU was downgraded to Hold from Buy at Jefferies & Company with the broker not liking the state of deteriorating memory prices. MU shares are down about one percent. KLAC shares are up three percent Monday despite announcing earnings that fell short of expectations. The company has restated past financial dealing with stock option grants and now believes it is not at risk of delisting on the Nasdaq. Overall, the Philly Semiconductor Index ($SOX) is up only slightly on the session.
By Jody Osborne

Labels: BA, HC, IFIN, KLAC, MU, RLX, STT, TRI, UCO, UPS, WMT

Alaska Air Group Inc. (NYSE:ALK - News) said January traffic at its Alaska Airlines' unit fell 0.8% while its capacity rose 2.8%. That translated to a fall in load factor, or percentage of seats filled with paying passengers, to 66.5% from 69%. Horizon Air January traffic rose 0.3%, its capacity rose 2.6%, translating to a load factor fall to 63.3% from 64.7%.
Anadarko Petroleum (NYSE:APA - News) said it expects a charge of roughly $100 million related to Algeria's new "exceptional profits" tax, which applies when monthly average Brent Crude prices exceed $30 per barrel. The energy exploration and production company said Monday the charge represents an estimated liability for the period from Aug. 1 through Dec. 31. The Houston company expects a relief because Anadarko operates its Algerian assets under a production-sharing contract that includes a stabilization clause, which is designed to protect the investment and related asset value.
Bisys Group (NYSE:BSG - News) filed its Form 10-Q for the period ended Sept. 30, 2006, and reported net income of $14 million, compared with $13.4 million during the year-ago period. Revenue for the first fiscal quarter of 2007 was $211.5 million vs. $205.7 million.
British Airways (NYSE:BAB - News) reported a 2.8% drop in passenger traffic in January, due to flights being cancelled on the risk of a strike by its cabin crew. Its passenger load factor, a measure of passengers to available seats, dropped 3 percentage points to 69.5%. The market continues to show good demand in premium cabins. The weakness in some non-premium segments is also still a feature, the airline said.
Burger King Holdings Inc. (NYSE:BKC - News) filed to sell 20 million shares from selling stockholders, including entities managed by Bain Capital, Goldman Sachs and Texas Pacific Group. Based on its closing price of $20.28 a share on Friday, the stock offering will raise about $406 million. The offering comes after Burger King held its initial public offering of 25 million shares at $17 a share on May 18, 2006.
Columbia Laboratories' (NasdaqGM:CBRX - News) shares plummeted 69% to $1.44 in Monday morning trade after the Livingston, N.J.-based company announced late Sunday that its Phase III clinical trial of progesterone for the prevention of preterm birth did not achieve any reduction in the incidence of preterm birth at week 32, the primary endpoint. Progesterone also did not reduce the incidence of preterm birth at weeks 28, 35 and 37, the secondary endpoints of the study. Robert Mills, Columbia's chief executive, called the results "extremely disappointing."
Electronic Arts (NasdaqGS:ERTS - News) was downgraded to neutral from overweight at J.P. Morgan. The firm cited valuation and competition from a strong line up of games at its competitors. The broker added another possibility is that the industry could witness further hardware shipment cuts, which could limit demand for Electronic Arts' new titles.
Lexmark International (NYSE:LXK - News) was downgraded to reduce from neutral at UBS.
Majesco Entertainment Co. (NasdaqCM:COOL - News) said its financial statements for the fiscal year ended Oct. 31, 2006 contain a going concern modification. According to a Jan. 29 filing, the company's auditors have issued an opinion indicating that there is substantial doubt about the company's ability to continue as a going concern because Majesco has incurred net losses for the years ended Oct. 31, 2005 and 2006.
The McClatchy Co. (NYSE:MNI - News) was cut to market perform from outperform at Wachovia, which cited valuation and the continuing challenges in the advertising market, especially in the real estate category. "When we initiated coverage of the stock with an outperform rating, we thought the company would be able to increase its estimated cost savings related to the Knight Ridder deal. However, we now think any upside will be more than offset by revenue declines," Wachovia said. "While the stock has been weak, we think continued downward revisions of consensus estimates will make it difficult for the stock to trade materially higher," it added.
Midas Inc. (NYSE:MDS - News) said it plans to record a charge of $1.9 million in the fourth quarter related to closing six unprofitable company-owned shops in Florida. The company also said it expects a decline in U.S. comparable shop sales of 1.7% for the fourth quarter and 1.5% for the full year, citing lower advertising than in the year-ago period.
Nathan's Famous Inc. (NasdaqGM:NATH - News) reported third-quarter earnings of $1.1 million, or 17 cents a share, up from a year-ago profit of $770,000, or 12 cents a share.
NewMarket (NYSE:NEU - News) shares fell after the Richmond, Va.-based maker of chemical additives late Friday reported fourth-quarter net earnings of $4.5 million, or 26 cents a share, down from $11.1 million, or 64 cents a share, in the year-ago period. Excluding special items, the company posted a per-share profit of 60 cents vs. 46 cents. Revenue rose to $306.2 million from $293.7 million.
Overstock.com (NasdaqGM:OSTK - News) filed a lawsuit in the Superior Court of California, County of San Francisco seeking damages of $3.48 billion against a group of companies it says control over 80% of the prime brokerage market. The company also reported a fourth-quarter loss that widened to $40.7 million, or $1.92 a share, from $6.28 million, or 33 cents a share, a year earlier, hurt by lower revenue and increased expenses. The Salt Lake City-based online closeout retailer said revenue fell 6% to $297.5 million from $318 million a year earlier on lower traffic rates and smaller gross margins. Analysts polled by Thomson Financial expected, on average, a fourth-quarter loss of 85 cents a share on revenue of $305.7 million.
PMI Group (NYSE:PMI - News) said fourth-quarter net income fell 7% to $100.5 million, though earnings per share rose 7% to $1.19 a share, in line with analyst forecasts. Revenue rose 12% to $318 million. The profit declines amid loss reserve additions in U.S. mortgage insurance operations and an increase in total incurred losses in PMI Australia.
Regal-Beloit Corp. (NYSE:RBC - News) reported fourth-quarter earnings of $23 million, or 68 cents a share, up from a year-ago profit of $20.3 million, or 63 cents a share. Net sales slipped 2.5% in the latest three months to $366.6 million from $376.2 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 68 cents a share in the December period.
Royal Caribbean Cruises (NYSE:RCL - News) said fourth-quarter net income for the three months ended Dec. 31 rose to $46.6 million, or 22 cents a share, from a loss of $3.6 million, or 2 cents a share in the year-ago period. Revenue rose to $1.15 billion from $1 billion. Analysts surveyed by Thomson Financial forecast earnings of 20 cents a share and revenue of $1.16 billion, on average. The cruise line expects first-quarter income of 3 to 8 cents a share. The current analyst estimate is 32 cents a share. For the full year, Royal Caribbean forecast earnings of $3.05-$3.20, compared to the analyst estimate of $3.15 a share.
State Street Corp. (NYSE:STT - News) has agreed to buy Investors Financial Services Corp. (NasdaqGS:IFIN - News) for around $4.5 billion in stock. Investors Financial shareholders will receive 0.906 shares of State Street common stock for each share held, based upon the closing price of State Street common stock on February 2. Approximately 62 million State Street common shares will be issued in the transaction. The transaction is expected to be dilutive to State Street's operating earnings in 2007, neutral to earnings in 2008 on an operating basis, lift earnings in 2008 on a cash basis and lift operating earnings in 2009, based on anticipated pre-tax cost savings of approximately $345 million to $365 million during the first two years following closing. State Street expects to take restructuring charges of between $625 million to $675 million.
Transmeta Corp. (NasdaqGM:TMTA - News) shares tumbled after the company said it's streamlining its operations to focus on its core business of intellectual property licensing. The company plans to decrease its workforce by roughly 39% as part of the restructuring, shedding about 75 employees, mostly in its engineering services businesses.
Unitrin Inc. (NYSE:UTR - News) reported fourth-quarter net earnings of $61.6 million, or 91 cents a share, down 29% from $86.7 million, or $1.26 a share, in the year-ago period. Revenue at the Chicago-based financial services company rose to $763.9 million from $755.9 million.
YRC Worldwide (NasdaqGS:YRCW - News) was downgraded to neutral from outperform at Credit Suisse.

Labels: ALK, APA, BAB, BKC, BSG, CBRX, COOL, ERTS, LXK, MDS, MNI, NATH, NEU, OSTK, PMI, RBC, RCL, STT

Wall Street was narrowly mixed Monday as lingering concerns about the economy offset better-than-expected sales from Wal-Mart Stores Inc. and a flurry of acquisition activity.
Dow Jones industrial Wal-Mart rose after the world's largest retailer said it expected January same-store sales to rise 2.2 percent. Tempering the gain was its projection that sales performance is on track to deliver the lowest growth rate in more than 25 years.
Meanwhile, Wall Street absorbed news of a spate of acquisition and private equity deals -- the largest amount since the start of the year. Triad Hospitals Inc. and Herbalife Ltd. received offers from private equity funds, while State Street Corp. agreed to buy Investors Financial Services Corp.
Investors had little reaction to new data that suggests continued economic growth, which could disrupt the Federal Reserve's plans to ease the economy this year. The Institute of Supply Management's non-manufacturing index, which covers the service sector, increased more than analysts were forecasting.
The market ended mixed Friday after a weaker-than-expected employment report curbed investors' bullish sentiment following three days of straight gains. Also squeezing stocks was continued strength in oil prices, which flirted with $60 per gallon as a cold snap hit the Northeast.
"We're just going to have a topsy-turvy market until investors figure out which direction to take," said Todd Leone, managing director of equity trading for Cowen & Co. "We're seeing some buying come back into the market because there still is a lot of money on the sidelines. And, all these deals announced are really helping the market out."
In late morning trading, the Dow rose 6.65, or 0.05 percent, to 12,646.84.
Broader stock indicators fell. The Standard & Poor's 500 index was down 1.44, or 0.10 percent, at 1,446.95, and the Nasdaq composite index fell 3.09, or 0.12 percent, to 2,472.79.
Treasuries largely shrugged off the ISM numbers. Bonds rose, with the yield on the benchmark 10-year Treasury note down to 4.80 percent from 4.82 percent late Friday.
A barrel of light sweet crude rose 63 cents to 59.62 on the New York Mercantile Exchange. The dollar was mixed against other major currencies, while gold prices up.
Wal-Mart rose 58 cents to $48.66 after it announced same-store sales topped its prior forecast for a 1 percent to 2 percent gain. The retailer said colder temperatures in January drove sales of seasonal items.
Triad Hospitals agreed to go private in a $4.7 billion deal from affiliates of CCMP Capital Advisors and Goldman Sachs affiliate GS Capital Partners. Shares surged $6.61, or 15.3 percent, to $49.88.
Nutritional supplement maker Herbalife said it received an acquisition proposal from private investment fund Whitney V LP that values the company at about $2.7 billion. The company said it is reviewing the offer, and its shares spiked $7.04, or 21.3 percent, to $40.14.
Billionaire financier Carl Icahn made a $2.43 billion offer for auto parts supplier Lear Corp. Shares jumped $4.34, or 12.5 percent, to $39.01.
State Street shares fell $3.53, or 4.9 percent, to $68.22 after the custody bank said it would buy Investors Financial Services for about $4.5 billion in stock. The deal, which comes as rivals Mellon Financial Corp. and Bank of New York Corp. plan to combine, sent shares of IFS up $13.95, or 29.7 percent, to $60.90.
Advancing issues led decliners by 4 to 3 on the New York Stock Exchange, where volume came to 398 million shares.
The Russell 2000 index of smaller companies was down 1.53, or 0.19 percent, at 807.89. The index surpassed the 800 mark for the first time last week.
Overseas, Japan's Nikkei stock average closed down 1.15 percent. In afternoon trading, Britain's FTSE 100 was up 0.04 percent, Germany's DAX index fell 0.19 percent, and France's CAC-40 was up 0.10 percent.
Published by Joe Bel Bruno, AP Business Writer

Labels: HLF, Hot Stocks, IFIN, LEA, MEL, STT, TRI, WMT

Wall Street was narrowly mixed in early trading Monday as lingering concerns about the economy offset better-than-expected sales from Wal-Mart Stores Inc. and a flurry of acquisition activity.
Dow Jones industrial Wal-Mart rose after the world's largest retailer said it expected January same-store sales to rise 2.2 percent. Tempering the gain was its projection that sales performance is on track to deliver the lowest growth rate in more than 25 years.
Meanwhile, Wall Street absorbed news of a spate of acquisition and private equity deals -- the largest amount since the start of the year. Triad Hospitals Inc. and Herbalife Ltd. received offers from private equity funds, while State Street Corp. agreed to buy Investors Financial Services Corp.
Investors also looked for more hints about the economy. The Institute for Supply Management's January non-manufacturing index, which covers the service sector, will be released at 10 a.m. EST. The market was narrowly mixed Friday after a weaker-than-expected employment report curbed investors' bullish sentiment following three days of straight gains.
Oil prices flirted with $60 per gallon as a cold snap hit the Northeast. A barrel of light sweet crude rose 81 cents to 59.83 in premarket trading on the New York Mercantile Exchange.
In the first hour of trading, the Dow fell 1.60, or 0.01 percent, to 12,651.89.
Broader stock indicators also fell. The Standard & Poor's 500 index was down 0.86, or 0.06 percent, to 1,447.53, and the Nasdaq composite index rose 3.76, or 0.15 percent, to 2,479.64.
Bonds rose, with the yield on the benchmark 10-year Treasury note down to 4.81 percent from 4.82 percent late Friday. The dollar was mixed against other major currencies, while gold prices up.
Wal-Mart shares rose 30 cents to $48.08 after it announced same-store sales topped its prior forecast for a 1 percent to 2 percent gain. The retailer said colder temperatures in January drove sales of seasonal items.
Triad Hospitals agreed to go private in a $4.7 billion deal from affiliates of CCMP Capital Advisors and Goldman Sachs affiliate GS Capital Partners. Shares surged $6.58, or 15.2 percent, to $43.27.
Nutritional supplement maker Herbalife said it received an acquisition proposal from private investment fund Whitney V LP that values the company at about $2.7 billion. The company said it is reviewing the offer, and its shares spiked $6.40, or 19.3 percent, to $39.50.
State Street shares fell $3.60, or 5 percent, to $68.15 after the custody bank said it would buy Investors Financial Services for about $4.5 billion in stock. The deal, which comes as rivals Mellon Financial Corp. and Bank of New York Corp. plan to combine, sent shares of IFS up $14.05, or 29.9 percent, to $61.
The Russell 2000 index of smaller companies was up 0.80, or 0.10 percent, to 810.22.
Overseas, Japan's Nikkei stock average fell 1.15 percent. In afternoon trading, Britain's FTSE 100 was up 0.10 percent, Germany's DAX index fell 0.12 percent, and France's CAC-40 was up 0.13 percent.
Published by Joe Bel Bruno, AP Business Writer

Labels: HLF, Hot Stocks, IFIN, MEL, STT, TRI, WMT

Bullish calls:
Yamana Gold (NYSE: AUY - News): ' I have walked away from KRY and endorsed AUY.'Hydril (NasdaqGS: HYDL): 'As long as oil is north of $40, you are going to be safe there, because it just doesn't make any sense not to use hydro products. I am buying that stock.'DirecTV (NYSE: DTV - News): 'I happen to like DTV. I happen to like DISH. These are cash machines ... The government approves of the duopoly.'EchoStar Communications (NasdaqGS: DISH): 'I endorse DISH too.'Marvell Technology (NasdaqGS: MRVL): 'There is not a single semiconductor, save MRVL*, which I own for my charitable trust, because I think they've got good iPhone business.'Jones Soda (NasdaqCM: JSDA): 'I bank with JSDA. You know I like JSDA. That's an up stock. I still can't believe Pepsi still hasn't taken a run at them.'State Street (NYSE: STT - News): 'This is one those banks that does processing, therefore it gets a higher valuation. 52-week high today, and I'm not backing away. It goes still higher!'British Airways (NYSE: BAB - News)
Bearish calls:
Crystallex (AMEX: KRY - News): ' ... we do not invest with Chavez. He has proven to be a recalcitrant, pseudo-communist! We are not banking with him anymore.'TiVo (NasdaqGM: TIVO): ' I know TIVO's going to be in Comcast, and all that other nonsense... The bottom line is TIVO is 'don't buy, don't buy.' Having recommended a sale outright higher, I don't want to push my luck, but I don't want you in the stock. 'Advanced Semiconductor Engineering (NYSE: ASX - News): 'I don't like that. That's another also-ran semi play ... I do not want to own semis here.'Select Comfort (NasdaqGS: SCSS): 'I have stayed away from the bed business ... I am putting a pox on all beds! Stay away! Sell, sell, sell! 'Sealy (NYSE: ZZ - News): 'I think ZZ was a mistake by me. 'Tempur Pedic (NYSE: TPX - News)CenterPoint Energy (NYSE: CNP - News): 'CNP is just okay. It's a 3.5% yield ... But basically, I like the utilities here, so I can't dis' it. Let me give it a 'don't buy, don't buy.'Nuance Communications (NasdaqGS: NUAN): 'No! No, no! Sell, sell, sell, sell, sell, sell, sell! ... I say no to speech recognition.'Western Union (NYSE: WU - News): 'I am still in 'don't buy, don't buy,' because I worry about the immigrants being told they can't do what they want, so they may be afraid to go to Western Union.'
Published by SeekingAlpha

Labels: ASX, AUY, BAB, CNP, DISH, DTV, HYDL, Jim Cramer, JSDA, KRY, Lightning Round, Mad Money, MRVL, NUAN, SCSS, STT, Tivo, TPX, WU, ZZ