Jim Cramer Blog

Stocks started the week on a positive note with all three major indexes posting gains of close to 1%. The move follows a down week last week as economic data indicated that, despite signs pointing to a slowing economy, inflation was not being held in check. Tomorrow, the Federal Reserve Open Market Committee begins its next policy meeting. While a rate change isn't expected when the meeting wraps up on Wednesday, investors are hoping the FOMC's policy statement will shed some light on which way it is leaning when it comes to adjusting interest rates later this year.
While economic data and policy statements are on the radar, both were absent today, leaving investors to find direction from a wave of M&A activity. U.S. investors also took a cue from a strong move higher in overseas markets, where recent weakness had helped contribute to uneasiness in the U.S. market. Concerns about the subprime mortgage crisis, meanwhile, remained on the sidelines for today at least, even as the National Association of Home Builders said its index of sales activity for new single-family housing fell to 36 from a reading of 39 in February, which itself was revised down from 40.
Leading the merger headlines were Barclays (NYSE: BCS - News) and ABN AMRO (NYSE: ABN - News) on reports that the two European banks could combine in a deal worth as much as $80 billion. ABN AMRO later confirmed that it is in exclusive talks with Barclays. Community Health Systems (NYSE: CYH - News), meanwhile, topped a private equity bid with a $5.1 billion offer for Triad Hospitals (NYSE: TRI - News) in a deal that would create the country's largest publicly traded hospital operator.
The mergers extended to the oil patch as well, where shallow-water driller Hercules Offshore (Nasdaq: HERO - News) announced its plans to buy oil and natural gas driller TODCO (NYSE: THE - News) for about $2.4 billion. The deal would create the world's fourth-largest fleet of shallow-water rigs. Based on Friday's closing prices, Hercules' offer represents a 28% premium. Elsewhere, utility and telecom infrastructure contractor Quanta Services (NYSE: PWR - News) made a $1.3 billion offer for InfraSource Services (NYSE: IFS - News), a 17% premium. The deal expands Quanta's reach both in terms of geography and services offered.
Today's M&A activity also included a pair of firms announcing plans to be taken private. ServiceMaster (NYSE: SVM - News), parent of Terminix pest control and a provider of housecleaning and landscaping services, was the target of a $4.5 billion bid led by private equity firm Clayton, Dubilier & Rice. Finally, shipping firm EGL (Nasdaq: EAGL - News) announced it has agreed to a management-led buyout worth $1.7 billion. The $38 per share bid eclipsed a prior offer by $2 per share. The stock ended up 6%.
The day's big loser was biotech AtheroGenics (Nasdaq: AGIX - News), which plunged -61% on news that its experimental pill to treat atherosclerosis -- a buildup of fat, cholesterol, and other substances in the inner lining of arteries -- failed to meet its target in a late-stage trial. AtheroGenics had partnered with AstraZeneca (NYSE: AZN - News) on the trial, but Zeneca will now have the opportunity to break off the partnership.
By the BullMarket.com Staff

Labels: ABN, AGIX, AZN, BCS, CYH, EAGL, HERO, IFS, PWR, SVM, THE, TRI

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

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

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

Ethanol producers and health care service providers are among the potential corporate beneficiaries of policies proposed by President Bush, while domestic automakers and oil companies could get slightly stung.
The winners and losers will be more apparent in the months ahead, as the Democrat-controlled Congress responds to the president's State of the Union speech, though economists said they expect few drastic changes in Washington between now and the 2008 election. In this scenario, the status quo prevails -- a trend Wall Street tends to prefer.
"The business community is quite skeptical that much, if anything, will be produced out of the Congress in the run-up to the 2008 presidential election year," said Allen Sinai, chief global economist at Decision Economics Inc.
Sinai added that Bush's proposals on energy and health care, including a call for a tax deduction of $7,500 for individuals and $15,000 for families regardless of whether they buy their own health insurance or receive medical coverage at work, were not overly ambitious.
But Archer-Daniels-Midland Co., along with US BioEnergy Corp., VeraSun Energy Corp. and other ethanol producers nevertheless stand to benefit from Bush's call to raise consumption targets for ethanol and other alternative fuels to 35 billion gallons by 2017. More than 5 billion gallons were produced in the U.S. in 2006. The long-term technological challenge, experts say, will be finding inexpensive ways to use feedstocks other than corn to meet the higher targets.
Some ethanol stocks were down in pre-market activity Wednesday. Archer-Daniels-Midland dipped 53 cents to $32.10, after adding 81 cents to close at $32.63 on Tuesday, and Pacific Ethanol slid 49 cents, or 2.8 percent, to $17.36 after adding $1.03 to close at $17.85 Tuesday.
Traditional energy companies will have their "antennae up" to monitor the progress of Bush's alternative energy proposals, Sinai said.
Automakers said they were open to the president's goals of increasing fuel economy standards.
The proposal could benefit Japanese automakers such as Toyota Motor Corp. and Honda Motor Co., which have higher fleetwide fuel economy levels than domestic manufacturers. The proposal also includes a system of trading or "banking" credits to meet new standards, which could lead to Detroit's automakers buying fuel credits from Toyota and Honda.
But GM and Ford Motor Co. have pledged to build two million flexible-fuel vehicles by 2010, so they too could benefit by an influx of ethanol and other renewable fuels. GM said it wanted to ensure, however, "that any fuel economy increases are technically achievable and do not compromise safety, performance, or limit consumer choice."
Energy analysts said the call for a sharp escalation in the use of ethanol will have little immediate impact on major oil companies, such as Irving, Texas-based Exxon Mobil Corp. and San Ramon, Calif.-based Chevron Corp., primarily because it'll be used as a partial substitute and not a replacement for gasoline.
In a research note before the speech, Citigroup analyst Doug Leggate called Bush's plan to cut gasoline consumption by 20 percent by 2017 "a huge target, and one where a reality check may be necessary to determine if this is really achievable."
The health care taxation plan is the most appealing to the private sector, analysts said. Specifically, the second part of the provision that would curb health care spending by taxing any expenses over the $7,500 and $15,000 marks, and could drive many Americans to the individual-oriented plans offered by UnitedHealth Group Inc., Wellpoint Inc. and Aetna Inc.
WellPoint and Aetna slid in pre-market trading. WellPoint dipped 88 cents to $76.15 after adding 22 cents to end at $77.03 on Tuesday and Aetna dipped 18 cents to $42 the morning after it closed up 39 cents at $42.18.
The health proposal also would encourage middle- to lower-income individuals to opt for hospital care instead of avoiding visits that formerly would have required out-of-pocket expenses, said Tom Ochsenschlager, vice president of taxation for the American Institute of Certified Public Accountants.
Employers, including automakers, would welcome the plan since benefit costs, not wages, continue to hinder their bottom lines, said Brian Bethune, U.S. economist at Global Insight in Lexington, Mass.
That's good news for hospital operators like Triad Hospitals Inc. and Health Management Associates Inc., and General Motors Corp., the nation's largest private provider of health care.
And the potential health care benefits should outweigh the hit domestic automakers would take if Bush is successful in raising fuel economy standards for passenger cars, economists said.
The president devoted roughly 20 minutes of his speech to the global war on terror, with seven of those minutes spent on Iraq.
The defense industry outlook is dictated primarily by policies in Iraq and Bush's recent call to increase U.S. troops there by 21,500 elicited fierce opposition on Capitol Hill, Nomura's Resler said.
But since Bush's troop announcement on Jan. 10, the stock prices of defense contractors like Hartford, Conn.-based United Technologies, Los Angeles-based Northrop Grumman Corp. and Bethesda, Md.-based Lockheed Martin Corp., are up.
The Defense Department is expected to submit its fiscal year 2008 budget request to Congress for approval next month with initial estimates suggesting it could reach more than $600 billion, which could further bolster defense companies' shares.
AP Business Writers John Porretto in Houston, and Donna Borak, Matthew Perrone and Ken Thomas in Washington, contributed to this report.

Labels: ADM, AET, CVX, HMA, HMC, LMT, PEIX, TM, TRI, UNH, USBE, UTX, VSE, WLP, XGM, XOM

Triad (NYSE: TRI - News): Cramer called this hospital operator a "steal," and reported the company rose 5% after Deutsche Bank predicted leveraged buyout. He commented that hospitals going private are "the wave of the future."
Citigroup (NYSE: C - News): Although Cramer likes bank stocks right now, he comments that C is the "deadest money of the group" after it reported a lackluster quarter which demonstrates that "costs are exploding." However, he would not necessarily sell it right now.
GE (NYSE: GE - News) and United Tech (NYSE: UTX - News): Cramer was surprised at GE CEO Jefferey Immelt's statement that there will be no deals in the pipeline this year and he is not doing anything "transformative." Cramer comments that conglomerates GE and UTX are being kept back by the view that they do not deserve their price-to-earnings multiples.

Labels: C, GE, Jim Cramer, Jim Cramer's Stop Trading, TRI, UTX

It's worth taking a shot at Triad (TRI), Jim Cramer said Friday on CNBC's "Stop Trading!" session.
Cramer said the hospital operator, up 5% at $42.50 off a Deutsche Bank report predicting a leveraged buyout will be unveiled next week, is "a steal" at this level. He added that hospitals going private are the "wave of the future" and said of the analyst who wrote the report, "Why stick your neck out if you don't feel sure about it?"
Cramer was less effusive about Citigroup (C), saying Friday morning's fourth-quarter earnings report was "not a good quarter" as it showed more evidence that "costs are exploding." Cramer said the stock is "nothing to write home about" and that he won't say sell it right now, given his conviction that bank stocks are in a good spot, but he added that this outfit looks like "the deadest money of the group."
Cramer also expressed surprise at GE (GE) CEO Jeffrey Immelt's comment that the company is done doing deals this year and that he's not looking for anything "transformative." Cramer said conglomerates such as GE and United Tech (UTX) are hemmed in right now by the market's view that they don't deserve growing price-to-earnings multiples.
Published By TheStreet.com

Labels: C, GE, Jim Cramer, Jim Cramer's Stop Trading, TRI, UTX