Jim Cramer Blog

Just so you know, I just issued an alert. ... You should buy it here," he said of the cosponsors of Vytorin, which made headlines today after the Food and Drug Administration said it would issue early communication on the drug. He's reminded of Bausch and Lomb, Bristol-Myers Squibb (BMY) and other pharmaceutical companies that experienced exaggerated stock-price dives on bad news. Those situations, Cramer said, represented buying opportunities.
"The headline risk in drugs is also far worse," Cramer said. "This is what happens with drug stocks. Everyone panics at the same time. They get knocked all the way down."
"This is just unbelievable to me," Cramer added, saying that to cut shares of Schering-Plough so much, investors would have to believe the FDA was going to pull Vytorin.
Cramer continued, "I would buy Merck too. ... This is a classic headline overreaction."
Cramer concluded by saying he prefers Thornburg Mortgage (TMA) and Toll Brothers (TOL) to Fannie Mae (FNM) and Freddie Mac (FRE). "I just think that they're not investible. ... I didn't like them ... yesterday."
Published By TheStreet.com

Labels: BMY, FNM, FRE, Jim Cramer, Stop Trading, TMA, TOL

Shares of mortgage lenders soared Friday after Federal Reserve Chairman Ben Bernanke signaled his willingness to slash interest rates again to prop up wobbly financial markets.
Bernanke, in a speech late Thursday, said the Fed will be "exceptionally alert and flexible" to find posThis echoes comments from other central bank officers in the past few days suggesting a cut in interest rates next month.
The Federal Reserve's task is to balance growth against inflation by setting an interest rate target that ensures the economy grows neither too quickly nor too sluggishly.
The Fed cut its target rate in September to 4.75 percent from 5.25 percent, and cut the rate further at the end of October to 4.5 percent. Paul J. Nolte, director of investments at Hinsdale Associates, said based on the rally in stocks this week people appear to expect the Fed will cut rates again.
Lower interest rates make it cheaper for mortgage lenders to raise cash and more enticing for people to buy homes. Presumably, they may also lure buyers back into the market for risky mortgage debt, although Nolte said he does not think interest rates will necessarily accomplish this.sible remedies for the housing slump and decaying mortgage credit quality.

Labels: Ben Bernanke, CFC, DFC, IMB, IMH, NFI, TMA, WFC, WM

Santa Fe's Thornburg Mortgage Inc. today reported a net loss before preferred stock dividends for the quarter ended Sept. 30 of $1.084 billion, or a loss of $8.83 per common share, as compared to net income of $75.3 million, or $0.64 per common share for the same period in the prior year. Taxable loss for the quarter is estimated to be $0.08 per common share.
The company's board of directors elected not to declare a common stock dividend for the third quarter, though it noted that it expects profitability and market conditions to improve in the fourth quarter and would consider resuming common dividend payments at that time.
Garrett Thornburg, chairman and chief executive officer, said the company believes "it is in the best long-term interests of our shareholders to forgo payment of a common dividend for the quarter and to make conserving cash, enhancing liquidity and selectively acquiring new assets our key priorities during the fourth quarter."
Thornburg's (NYSE:TMA - News) stock slipped on the dividend news, down in midday trading on Wednesday by more than 12 percent to $9.98 per share from Tuesday's close of $11.40 per share. Prior to the credit crunch that has mangled the mortgage lending industry, the company's stock had traded as high as $28.40 per share.
During the third quarter, a number of factors negatively affected the company's earnings and balance sheet, including the sale of $21.9 billion in mortgage assets, resulting in a loss on those sales of $1.093 billion; a loss of $11.5 million on its forward commitments to fund mortgage loans; an amortization expense for the quarter of $36.3 million, compared to an expected $5 million to $10 million; a $12.0 million tax provision; other expenses; a $17.9 million long-term incentive award benefit as the company marked down the value of its long-term incentive awards; a $53.4 million reduction in its interest expense; and other savings.
Commenting on the company's loan portfolio, President and CEO Larry Goldstone said, "The credit quality of the company's originated and bulk purchased loans remains exceptional ... However, after 22 straight quarters without incurring a principal loss on foreclosed loans, the company has realized loan losses of $51,630 in the third quarter of 2007."
Published October 17, 2007 by New Mexico Business Weekly

Labels: Thornburg Mortgage Inc., TMA

Thornburg Mortgage, Inc. (NYSE:TMA - News), a leading single-family super-prime residential mortgage lender focused principally on the jumbo and super-jumbo segment of the adjustable-rate mortgage (ARM) market, today announced the following adjustments and revisions to estimates that it had previously announced regarding certain financial developments that had taken place during the third quarter.
First, the company now estimates that it has sold approximately $22.0 billion of high quality ARM assets since August 10, 2007, as opposed to the previously announced estimate of $20.4 billion in asset sales as of August 17, 2007, or an additional $1.6 billion in asset sales, during the quarter. The company also has revised its estimated aggregate loss for the third quarter resulting from asset sales to $1.099 billion, as opposed to the previously-announced loss estimate of $863 million, or an increase of $236 million in the estimated loss. The revision of the loss estimate is due primarily to the receipt of actual sale price documentation for asset liquidations conducted by third-party financing counter-parties as opposed to those sales conducted by the company, and to a lesser extent, to additional asset sales that occurred after August 17, 2007, as well as a $6 million impairment charge on one mortgage-backed security backed by pay option ARMs. The realized losses on asset sales are capital losses for tax purposes and the impairment charge is an unrealized loss and thus not subject to tax. Accordingly, none of the entire $1.099 billion loss cited above will reduce the amount of taxable income available for dividend distribution in 2007.
The company believes that the current credit reserves on the company's balance sheet will be adequate to cover expected and potential future credit losses on its loan portfolio, as it has not experienced any material deterioration in the credit performance of its loan portfolio since July 31, 2007. The company estimates that seriously delinquent loans will represent 0.27% of the loan portfolio as of September 30, 2007, versus the estimate at August 17, 2007, of 0.23% of the loan portfolio as of July 31, 2007.
Second, the company has now received revised market value prices for its securities portfolio as of September 30, 2007, and expects that its accumulated other comprehensive loss (a non-income statement item) will include a $286 million unrealized market value loss on its mortgage securities portfolio as compared to a $262 million market value loss estimated as of August 17, 2007. However, based on the company's analysis of its mortgage securities portfolio, this unrealized market value loss is not expected to result in material actual credit losses. Rather, the company believes that the decreased market value is a reflection of the widening of risk premiums and lack of liquidity in all but the AAA-rated segment of the mortgage securities market. The company's mortgage securities portfolio consists of 94% agency, AAA- and AA-rated mortgage-backed securities and only 6% below AA-rated mortgage-backed securities. These investments are performing consistently with the long-term historical experience of similarly rated securities and none of the ratings have been downgraded by any rating agency as a result of recent rating agency activity.
Third, the company expects to report an estimated $16.0 million loss on mortgage loans funded during the third quarter, which resulted primarily from fundings made during September 2007 for which the mortgage interest rate had been locked for borrowers prior to August 2007 and which the company was committed to fund at the locked rate. It is expected that the lower market value herein reflected will result in higher yields on these loans, which are scheduled to be securitized in the fourth quarter. This loss on the pipeline was partially offset by an estimated $4.1 million gain on terminated hedging instruments. The resulting net loss totaled $11.9 million in the third quarter.

Labels: Thornburg Mortgage Inc., TMA

A Bear Stearns analyst cut his estimate for Thornburg Mortgage Inc. but said the home lender appears well-positioned to survive problems in the industry.
Bear Stearns analyst David Hochstim now expects Thornburg Mortgage to lose $4.81 cents per share this year. His previous estimate was for profit of $2.54 per share. Analysts polled by Thomson Financial forecast a loss of 61 cents per share.
Stung by decaying credit quality and sinking home values, Wall Street banks that finance the mortgage industry pulled most of their money out this year. This left hundreds of cash-starved mortgage lenders scrambling to raise money by dumping investments at distressed prices.
Thornburg sold $20.5 billion of its safest investments at a steep loss. The Santa Fe, N.M.-based lender sold a $500 million stake in itself through a special class of stock, and borrowed money against a $1.44 billion pool of home loans.

Labels: Thornburg Mortgage Inc., TMA

Shares of Thornburg Mortgage Inc. continued falling at the opening bell Tuesday a day after the struggling mortgage lender disclosed the value of its assets had fallen sharply in a matter of weeks.

The Santa Fe, N.M.-based lender on Monday said it sold $20.5 billion of its safest bonds at 95 cents on the dollar to raise cash to stave off its creditors. The company lost $930 million because it sold the bonds at a discount.

Labels: Thornburg Mortgage Inc., TMA

Stocks continued to be volatile to start off the week, but not as volatile as the past several weeks have been. Investors weighed and assessed the decision by the Federal Reserve on Friday when it lowered the discount rate by 50 basis points. For most of the session, all three major market averages were lower, but the bulls orchestrated a rally towards the close. At the close, the Dow gained 42 points, with the Nasdaq picking up a modest 4 points. The S&P 500, meanwhile, ended the session fractionally lower. Over in the energy markets, natural gas was the biggest loser as Hurricane Dean appears that it will not head into the energy rich northern Gulf of Mexico. Natural gas lost -98 cents to finish at $6.03.
Jumbo loan company Thornburg Mortgage (NYSE: TMA - News) saw its shares decline -10.2% after it announced it sold $20.5 billion worth of mortgage-backed securities at a discount in order to pay down debt it could not refinance. It foresees itself losing $930 million on the transaction, but said it will go ahead and pay its dividend. The company stated it will not give any guidance on further dividends. Rating agency Fitch Ratings downgraded its issuer default rating to "CCC" citing concerns of Thornburg's ability to generate and maintain adequate liquidity given the current market environment.
On the earnings front, the nation's second-largest home improvement retailer, Lowes (NYSE: LOW - News), reported that its second-quarter profit rose 9% to $1.02 billion, or 67 cents a share, up from $975 million, or 60 cents a share, in the same period a year ago. Analysts were expecting earnings to come in at 61 cents a share. Sales rose 5.8% to $14.2 billion. Same-store sales declined -2.6% for the company. For the year, the retailer sees earnings of $1.97-2.01 a share, down slightly from its prior forecast of EPS of $1.99-2.03. Despite the lowered full-year earnings estimates, the stock rose 6.1% on the heels of market share gains as well as a company belief that sales trends were improving.
In other corporate news, Nasdaq Stock Market (Nasdaq: NDAQ - News) said it is looking to sell its 31% stake in the London Stock Exchange (LSE). It attempted to buy the exchange last year, but the LSE's shareholders rejected the offer in February. Nasdaq said it would use the proceeds to retire some of its debt and also repurchase its stock. Shares declined -0.7%.
On the international front, the world's third-largest bank HSBC Holdings (NYSE: HBC - News) is in talks to buy the majority of Korea Exchange Bank, South Korea's sixth-largest bank. HSBC is currently in advanced discussions with Lone Star Funds, which owns a 51% stake worth $4.5 billion in the foreign bank.
By the BullMarket.com Staff

Labels: HBC, LOW, Lowe's Companies Inc., NDAQ, Thornburg Mortgage Inc., TMA

Wells Fargo (NYSE: WFC - News)
Cramer said Friday was a "great day for the market" and indicated the cut of 50 basis points to 5.75% was partly the result of his "heart felt plea" to Fed Chairman Ben Bernanke to slash the rate. Cramer reiterated his bullishness on WFC, but regrets he didn't recommend the stock earlier. Although investors are now "playing offense," Cramer says the change is one of psychology, not fundamentals.
Thornburg Mortgage (NYSE: TMA - News), Countrywide Financial (NYSE: CFC - News), Goldman Sachs (NYSE: GS - News), Lehman Brothers Holdings (NYSE: LEH - News)
Cramer wondered "where was that 500 point rally?" that was supposed to accompany a rate cut, but added the cut averted a 1,000 point decline. He said the slash in the rate saved TMA nd CFC from almost certain collapse. Although hedge funds are still in sell mode and the market could experience a hiccup, like the 5.4% drop in Japan's Nikkei, Cramer believes the worst is over and would buy GS and LEH on the rate cut.
"Post-Bernanke Enlightenment Game Plan:" Sears Holding (NasdaqGS: SHLD - News), Bear Stearns (NYSE: BSC - News), Downey Financial (NYSE: DSL - News), Washington Mutual (NYSE: WM - News), Centex (NYSE: CTX - News), Schlumberger (NYSE: SLB - News), Halliburton (NYSE: HAL - News), NYSE Euronext (NYSE: NYX - News)
As always, Cramer likes SHLD, not only because of CEO Eddie Lampert but also because the company has "lots of cash." In addition to Goldman and Lehman, Cramer says it is time to buy financials BSC, DSL and WM. He added Countrywide and Thornburg's recent problems could lead to takeover bids. Because of hurricane season and renewed vitality in the housing sector, Cramer discussed CTX, which could see a short squeeze, and revisited his perennial favorites SLB and HAL. He thinks NYX will finally get some respect because its estimates are too low in spite of high trading volume. Cramer said these picks are good to "buy high and sell higher," and if they rise on Monday, Cramer would wait five days before buying.
Published By SeekingAlpha

Labels: BSC, CFC, CTX, DSL, GS, HAL, Jim Cramer, LEH, Mad Money, NYX, SHLD, SLB, TMA, WFC, WM

Wells Fargo (NYSE: WFC - News), Countrywide Financial's (NYSE: CFC - News), Washington Mutual (NYSE: WM - News), Bank of America (NYSE: BAC - News), Wachovia (NYSE: WB - News)
Thursday's dash for financials may indicate the sector will be one of the "long-term beneficiaries" of Bernanke's position, but Cramer does not think they are safe. He tacked a double sell on WM but thought BAC and WB could survive. However, he reserved the lion's share of his praise for WFC, and said, "It is the great speculative play that should prosper." He believes WFC will "own the mortgage market" and will win with investors because it offers a great dividend. Cramer would wait for WFC to drop to the $32 - $34 range.
Sell Block: VMware (NYSE: VMW - News), H&R Block (NYSE: HRB - News), Capital One Financial (NYSE: COF - News), Friedman Billings Ramsey Group (NYSE: FBR - News) Lamson & Sessions (NYSE: LMS - News), Six Flags (NYSE: SIX - News)
Cramer urged investors to "stay the course" and added "no one ever made a dime panicking." However, he added it isn't too late to sell minerals and he feels tigher consumer spending will put pressure on retail. Cramer would sell VMW after its highly successful IPO, and would stay away from HRB, COF and FBR. He would also sell LMS as well as SIX because of low attendance due to the weather. He concluded it is better to invest in long-term stocks rather than quick trades in the current environment.
KKR Financial (NYSE: KFN - News), Thornburg Mortgage (NYSE: TMA - News) and Reynolds American (NYSE: RAI - News)
Not all high dividends are good dividends, Cramer declared and used KFN and TMA as examples. He added high-dividend names KFN and TMA aren't worth the investment because as their stocks fall so will the yields. Cramer likes RAI which has a dividend of 5.5% and is a "smart play" in this environment because "nothing is more defensive than cigarettes."
Mad Mail: Bear Stearns (NYSE: BSC - News), Jones Soda (NasdaqCM: JSDA) and Google (NasdaqGS: GOOG - News)
Cramer would avoid BSC and JSDA whose climb was "how to make a million" in the market. He adds GOOG is safe and likes the tech sector for its pristine balance sheets and great products.
Published by SeekingAlpha

Labels: BAC, BSC, CFC, COF, FBR, GOOG, HRB, Jim Cramer, KFN, LMS, Mad Money, RAI, SIX, TMA, VMW, WB, WFC, WM

Stocks went on another roller-coaster ride today as earlier gains were wiped out and selling increased into the close. At the end of the session, the Dow lost -167 points, while the Nasdaq dropped -40 points. The S&P, meanwhile, lost 20 points, or -1.4% of its value. Continued fears of a meltdown in credit markets persisted along with increased selling on the part of institutions. Treasuries rose on the session, with the benchmark 10-year note yielding 4.71%. Over in the energy pits, crude oil rose 95 cents to finish at $73.33 a barrel.
In economic news today, the Labor Department reported that consumer prices in the U.S. rose 0.1% in July, which represents the smallest gain in the past 8 months. Energy prices fell -1% as gasoline prices dipped -1.7%. Food prices, on the other hand, rose 0.3%. Elsewhere, capacity utilization, which measures the proportion of plants currently in use, grew to 81.9% from 81.8% in June. Production rose 0.3% in the month. Over in the housing market, the National Association of Home Builders reported that confidence among homebuilders fell to 22 from 24 in July. A reading below 50 means that the participants view the conditions as poor. It was the lowest reading in 16 years.
The nation's largest home lender Countrywide Financial (NYSE: CFC - News) fell -13.0% after Merrill Lynch reduced its rating on the company to "sell." The brokerage raised the possibility of bankruptcy due to increased fear of further credit turmoil in the mortgage market. Elsewhere in the mortgage business, shares of Thornburg Mortgage (NYSE: TMA - News) surged 38.8% after its COO stated that although the company is going through "extreme difficulties," he feels that the firm will begin to comeback in a very positive way. On Tuesday, the shares fell -47% after it delayed a dividend payment due to the company receiving margin calls.
In earnings news, shares of farm equipment maker Deere & Company (NYSE: DE - News) rose 3.0% after its third-quarter earnings results topped analyst estimates due to increased overseas sales. For the quarter, net income rose 23% to $537.2 million, or $2.37 a share, up from $436 million, or $1.85 a share, in the same period last year. Revenues rose 6% to $6.63 billion. The company now expects full-year profits to hit $1.7 billion, up from $1.6 billion in its earlier forecast. The street was expecting a profit of $1.6 billion.
Ketchup maker Heinz (NYSE: HNZ - News) told investors today that its fiscal first-quarter earnings should exceed estimates. It's predicting earnings of 62-63 cents a share with sales growth of 9%. Analysts on average were looking for earnings of 55 cents a share. It now sees full-year EPS of $2.54-2.60; analysts were expecting $2.59. The stock climbed 2.8%.
By the BullMarket.com Staff

Labels: CFC, DE, HNZ, TMA

Shares of Thornburg Mortgage Inc. rebounded after the opening bell Wednesday following a calamitous sell-off of the struggling mortgage lender's stock on Tuesday.
The Santa Fe, N.M.-based lender's shares lost nearly have their value Tuesday after the company postponed a 68 cent-per-share dividend slated to be paid Wednesday until Sept. 17
Thornburg claimed it will have a better chance to manage the tumult in the mortgage industry by then.
Stung by decaying credit quality, investors have pulled back sharply from risky investments in the past month. Because of a dearth of buyers, Thornburg Mortgage said it is having trouble borrowing money and selling bonds backed by the company's mortgages.

Labels: Thornburg Mortgage Inc., TMA

Thornburg Mortgage (NYSE: TMA - News): Good as well as bad mortgage companies are getting crushed by the shorts and the lenders which are particularly vulnerable are those which don't own a deposit-taking bank. Even the once-hardy TMA was down 38% after a series of downgrades. Cramer says the last things investors should do right now is to buy a house and wondered "who would want to lend to one of these companies?"

Labels: Jim Cramer, Jim Cramer's Stop Trading, Thornburg Mortgage Inc., TMA

Thornburg Mortgage (NYSE: TMA - News), Washington Mutual (NYSE: WM - News), Lehman Brothers (NYSE: LEH - News), KB Home (NYSE: KBH - News), Beazer Homes USA (NYSE: BZH - News), Procter & Gamble (NYSE: PG - News), Coca-Cola (NYSE: KO - News), and Colgate (NYSE: CL - News)
Cramer predicts around 7 million "teaser" mortgages are likely to be defaulted and recommends "staying defensive," by avoiding real estate and bank stocks such as TMA, WM, LEH, KBH and BZH and investing in soft goods such as PG, KO and CL. While the Fed thinks mortgage woes will pass, Cramer still believes the Fed should cut rates.
Schering-Plough (NYSE: SGP - News)
Cramer thinks SGP is an excellent stock for the current environment and notes sales are up 13% since last year. He adds the company is not leveged to mortgaes and he believes in Fred Hassan, who was one of Cramer's transformational CEOs. He would wait until buying SGP, and while the current economic climate is not good, "we have no control on what the Fed will do," Cramer said.
Vodafone (NYSE: VOD - News),Verizon Wireless (NYSE: VZ - News)
VOD is a good international play and the world's best wireless carrier. Cramer thinks VOD will raise more revenues than the competition, owns a "serious chunk" of VZ, is successful in emerging economies and has a strong dividend.
CEO Interview: Jack Cumming, Hologic (NasdaqGS: HOLX - News) with Cytyc (NasdaqGS: CYTC - News)
Jack Cumming talked about the upcoming merger with CYTC, which will mean $400 million to $50o million in EBITDA and nine top women's health products. Cumming added the company can afford the acquisition and there is no financial risk.
Published by SeekingAlpha

Labels: BZH, CL, CYTC, HOLX, Jim Cramer, KBH, KO, LEH, Mad Money, PG, SGP, TMA, VOD, VZ, WM

Shares of Thornburg Mortgage Inc., a prime mortgage lender and real estate investment trust, fell in Monday trading after Standard & Poor's downgraded its credit rating Friday and as concerns in the mortgage market persist.
Shares of Thornburg Mortgage lost $2.89, or 16 percent, to $15.17 in afternoon trading, and reached a 52-week low of $14.51 in earlier in the day. Shares had traded between $17.30 and $28.40 during the past year.
S&P downgraded Thornburg Mortgage's long-term counterparty credit rating to "B" from "BB" Friday, citing the "unsteady state of secured financing capital markets" that the company relies upon to fund operations.

Labels: Thornburg Mortgage Inc., TMA

Nvidia (NasdaqGS: NVDA - News): 'They make the fastest gaming chips. They make the best ones. You buy some and then, if it comes in, you buy some more ... It's a growth stock in the right quarter, at the right time of the year ... NVDA is two thumbs up.'Dynegy (NYSE: DYN - News): 'I like DYN as an asset play, and if the earnings don't hit the number, because of some natural gas realization, come on ('mon-back sound)... step up to the plate...'China Telecom (NYSE: CHA - News)Baidu.com (NasdaqGS: BIDU - News)Nymex (NYSE: NMX - News): 'I believe someone will buy, but I would not recommend a stock just on its takeover ability alone... I would emphasize that, on its earnings - and the earnings here are unbelievable.'Teck Cominco (NYSE: TCK - News): 'People worry that China doesn't have enough demand... that maybe our economy is so slow that it's going to bring down the rest of the world. That's not true. TCK is still a buy. I like it very much.'Lockheed Martin (NYSE: LMT - News): 'I want to buy the defense stocks here. I think it's a terrific opportunity. Don't take your cue from the stocks. Take your cue from the companies, and LMT is doing incredibly well!'General Dynamics (NYSE: GD - News)Raytheon (NYSE: RTN - News)Northrop Grumman (NYSE: NOC - News)Ralcorp Holdings (NYSE: RAH - News): 'I've liked RAH before on the show. I like it now.'ENGlobal (AMEX: ENG - News): 'This is a company that does everything you need to do to produce refining petroleum. It's right. You're right. I'm staying with it. 'Thornburg Mortgage (NYSE: TMA - News): 'I just don't think they're as bad as the bears think.'Allergan (NYSE: AGN - News): ' ... for anything eye... I'm going to send you that way.'
Bearish calls:
Spectranetics (NasdaqGM: SPNC - News): ' ... don't know whether I want to buy it all the way up here... don't buy, don't buy... there are so many that are still down, but it's a good quality company.'Boston Scientific (NYSE: BSX - News)Perfect World (PWRD): 'I am just going to say forget about it... it's too darn hard.'RealNetworks (NasdaqGS: RNWK - News): 'Even thought the guys that run those companies throw really great cocktail parties, and probably wish that I was there, no thank you! (buzzer sounds)... 'Lowe's Companies (NYSE: LOW - News): 'You know, I can't recommend this sector right now - don't buy, don't buy - even though I know they have really easy comparisons. I can't go there. That sector's being too hurt. No to retail.'Advanced Medical Optics (NYSE: EYE - News)Best Buy (NYSE: BBY - News): 'I think there's $3 up, $3 down... which means to me - don't buy, don't buy - not worth playing... '
Published by SeekingAlpha

Labels: AGN, BIDU, CHA, DYN, ENG, GD, Jim Cramer, Lightning Round, LMT, NMX, NOC, NVDA, RAH, RTN, TCK, TMA

Nvidia (NasdaqGS: NVDA - News): 'They make the fastest gaming chips. They make the best ones. You buy some and then, if it comes in, you buy some more ... It's a growth stock in the right quarter, at the right time of the year ... NVDA is two thumbs up.'Dynegy (NYSE: DYN - News): 'I like DYN as an asset play, and if the earnings don't hit the number, because of some natural gas realization, come on ('mon-back sound)... step up to the plate...'China Telecom (NYSE: CHA - News)Baidu.com (NasdaqGS: BIDU - News)Nymex (NYSE: NMX - News): 'I believe someone will buy, but I would not recommend a stock just on its takeover ability alone... I would emphasize that, on its earnings - and the earnings here are unbelievable.'Teck Cominco (NYSE: TCK - News): 'People worry that China doesn't have enough demand... that maybe our economy is so slow that it's going to bring down the rest of the world. That's not true. TCK is still a buy. I like it very much.'Lockheed Martin (NYSE: LMT - News): 'I want to buy the defense stocks here. I think it's a terrific opportunity. Don't take your cue from the stocks. Take your cue from the companies, and LMT is doing incredibly well!'General Dynamics (NYSE: GD - News)Raytheon (NYSE: RTN - News)Northrop Grumman (NYSE: NOC - News)Ralcorp Holdings (NYSE: RAH - News): 'I've liked RAH before on the show. I like it now.'ENGlobal (AMEX: ENG - News): 'This is a company that does everything you need to do to produce refining petroleum. It's right. You're right. I'm staying with it. 'Thornburg Mortgage (NYSE: TMA - News): 'I just don't think they're as bad as the bears think.'Allergan (NYSE: AGN - News): ' ... for anything eye... I'm going to send you that way.'
Bearish calls:
Spectranetics (NasdaqGM: SPNC - News): ' ... don't know whether I want to buy it all the way up here... don't buy, don't buy... there are so many that are still down, but it's a good quality company.'Boston Scientific (NYSE: BSX - News)Perfect World (PWRD): 'I am just going to say forget about it... it's too darn hard.'RealNetworks (NasdaqGS: RNWK - News): 'Even thought the guys that run those companies throw really great cocktail parties, and probably wish that I was there, no thank you! (buzzer sounds)... 'Lowe's Companies (NYSE: LOW - News): 'You know, I can't recommend this sector right now - don't buy, don't buy - even though I know they have really easy comparisons. I can't go there. That sector's being too hurt. No to retail.'Advanced Medical Optics (NYSE: EYE - News)Best Buy (NYSE: BBY - News): 'I think there's $3 up, $3 down... which means to me - don't buy, don't buy - not worth playing... '
Published by SeekingAlpha

Labels: AGN, BIDU, CHA, DYN, ENG, GD, Jim Cramer, Lightning Round, LMT, NMX, NOC, NVDA, RAH, RTN, TCK, TMA

Cramer's Index: MGIC Investment (NYSE: MTG - News), Countrywide Financial (NYSE: CFC - News), Bear Stearns (NYSE: BSC - News), KB Home (NYSE: KBH - News), Centex (NYSE: CTX - News), MBIA (NYSE: MBI - News), Blackstone (NYSE: BX - News), Thornburg Mortgage (NYSE: TMA - News), Beazer Homes (NYSE: BZH - News), Washington Mutual (NYSE: WM - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
While Cramer says he doesn't want to be a "buzz kill," he admits it is not possible to be really bullish as long as the housing crisis persists. Cramer formed his own "index" of the above-mentioned stocks, and said when the 12 companies stablilize and the Fed cuts interest rates, it will be time to let the bulls run once again. He made a personal appeal to Fed chairman Ben Bernanke; "Cut the rates. Take the pressure off. Many, many people could be about to lose their homes, because you're not listening..."
New Age Under Armour: Lululemon Athletica (LULU)
Cramer has discovered a new Under Armour, which like its predecessor, has experienced a massive initial bounce and is expected to keep growing. Yoga apparel company, LULU came public at $18 and jumped to $31 "in one of the worst tapes I've ever seen," said Cramer. However, he doesn't think this stock is a "one trick pony" but will keep going up as UA did, because LULU has been doubling stores year over year. Since the stock is speculative and has risen, Cramer recommends waiting at least 3 days or until the price drops before buying.
Beer is Near: Boston Beer (NYSE: SAM - News)
While in the current climate, investors are dubious of even some soft goods stocks, "People drink beer no matter what." Cramer likes SAM's 13% long-term growth rate and its smart move of acquiring a brewery from Diageo for $55 million rather than building a new one, which would have cost $200 million. Although he's a self-proclaimed "Bud man" Cramer gives SAM a triple buy, even near its 52-week high.
CFO Interview: Stephen Chazen, Occidental Petroleum (NYSE: OXY - News)
Chazen discussed production increases in Argentina and Peru; "California continues to be good for us." he added. Chazen dismissed worries about political risks, noting there are always political risks, and he remarked on the stability of OXY's chemical business. "All oil stocks are trading down in unison," Cramer said, and added now is the time to buy oil.
Published By SeekingAlpha

Labels: BSC, BX, BZH, CFC, CTX, GS, Jim Cramer, KBH, LULU, Mad Money, MBI, MTG, OXY, SAM, TMA, WM

Beazer (NYSE: BZH - News), Thornburg Mortgage (NYSE: TMA - News), Citigroup (NYSE: C - News), Countrywide (NYSE: CFC - News): Cramer says the major selloff in housing is not a reason to buy, and even if TMA is getting hammered more than it deserves, "who needs it?" Cramer might consider buying financials CFC and C if the Fed lowers interest rates, but given Ben Bernanke's inflation obsession, he wouldn't take the risk just yet.
MasterCard (NYSE: MA - News) and Macquarie Infrastructure (NYSE: MIC - News): Cramer was not so excited about buying MA now that it is $140 and has run, although he thinks the 11% selloff was "overdone." Cramer wouldn't touch MIC, a play on termite growth, because it is a "black box .... who knows what they have?"

Labels: BZH, CFC, Jim Cramer, MA, MIC, Stop Trading, TMA

American Home Mortgage (NYSE: AHM - News), Countrywide Financial (NYSE: CFC - News), Thornburg Mortgage (NYSE: TMA - News), Redwoods Trust (NYSE: RWT - News), Rait Financial Trust (NYSE: RAS - News) and NovaStar Financial (NYSE: NFI - News)
After the demise of AHM, Cramer would not recommend subprime mortgage lending companies, but he predicts CFC will survive as well as TMA, which "did a lot of loaning only to rich people." He sees hope for RWT because it is under 10%, and he warned any stock in the sector with a yield over 10% is not going to make it. RAS and NFI, which did a 4 -for-1 reverse split, are entirely at the mercy of the banks, and are therefore "totally uninvestible" because the Wells Fargos "have no interest in keeping you alive," Cramer commented. "They'd rather just take the loss." While admitting this inspires "tremendous panic" Cramer feels like sticking his neck out, because "It's first man out lives and I want our people to be first man out."

Published By SeekingAlpha

Labels: AHM, CFC, Jim Cramer, NFI, RAS, RWT, TMA, Wall Street Confidential