Jim Cramer Blog

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Campbell's Soup (NYSE:CPB - News) reports earnings on Monday morning before the bell, with analysts looking for $0.71 EPS. CPB's PowerRating (for Traders) is 5.
When Lowe's (NYSE:LOW - News) announces earnings on Monday, be watching for $0.41 EPS. LOW's PowerRating (for Traders) is 4.
Valspar (NYSE:VAL - News) is set to report $0.40 EPS on Monday morning. VAL's PowerRating (for Traders) is 4.
Tween Brands (NYSE:TWB - News) should announce $0.46 EPS before the bell rings on Monday. TWB's PowerRating (for Traders) is 4.
Hewlett-Packard (NYSE:HPQ - News), Medtronic (NYSE:MDT - News) and Nordstrom (NYSE:JWN - News) all report earnings after the close on Monday, so watch for heightened volatility ahead of the bell. HPQ's PowerRating (for Traders) is 5, and MDT's PowerRating (for Traders) is 5 and JWN's PowerRating (for Traders) is 4.

Labels: CPB, Hot Stocks, HPQ, JWN, LOW, MDT, TWB, VAL

Fall into the Gap (GPS)
Although Cramer admits he has disliked retail lately, the sector will be a hot area when the Fed continues to cut interest rates. What was once the worst of the worst, Gap, is now best-of-breed, with a better balance sheet, new CEO Glenn Murphy, $2.7 billion in cash and investments and a revenue of $151.9 billion. In addition, this "great turnaround story" is buying back stock aggressively and is polishing its Banana Republic Brand. Cramer would wait about 5 days before buying.
Old King Kohl's: Limited Brands (LTD), Tween Brands (TWB) and Kohl's(KSS)
Unlike LTD and TWB, retailers Cramer thinks deserve to be doing badly, it is a mystery that people seem not to like Kohl's, which has "dropped like a rock;" a full 28% since April. Cramer likes the fact no one is paying attention to Kohl's which sells at 13x forward earnings and has a growth rate of 18%. He also noted the store is focusing on high-end designer brands, such Vera Wang's label. Cramer concluded KSS has the best risk-reward if the Fed keeps cutting and "deserves to be bought."
Fly Like an Eagle: American Eagle Outfitters (AEO)
Cramer suggests looking for retail stocks with vigorous insider buying and low evaluations; these factors characterize AEO, which is "worth buying." AEO's sales increased 17% year over year and is currently selling at 12 times next year's earnings. Craner would wait until the stock dips to between $22 and $25 before buying.
Mad Mail: Crocs (CROX), American Eagle Outfitters (AEO) Although Cramer still believes CROX has further to climb, he admits concern over the company's insider selling; "I will temper my enthusiasm a tad," he said. Cramer added AEO is a good stock for a 7th grader, and is an investment that can be held onto for a few years.

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Labels: AEO, CROX, GPS, Hot Stocks, Jim Cramer, KSS, LTD, Mad Money, TWB

Pixelworks (NasdaqGM:PXLW - News) shares gained after the company said Samsung Electronics has chosen Pixelworks' new PW9050L chip for two slim cathode ray tube television models. Hans Olsen, president and chief executive of Pixelworks, said the market for slim cathode ray tubes is projected to grow from less than 8 million units in 2006 to more than 35 million units in 2010.
Sealy (NYSE:ZZ - News) shares jumped after the Trinity, N.C., bedding manufacturer reported fourth-quarter earnings of $21.5 million, or 22 cents a share, as sales rose 8.4% to $395.3 million. The company also approved a $100 buyback program.
Taser International (NasdaqGS:TASR - News) shares jumped after the Scottsdale, Ariz., stun gun maker posted fourth-quarter earnings of $2.3 million, or 4 cents a share, up from a year-ago loss of $4.1 million, or 7 cents a share. Revenue soared 53% in the latest three months to $19.3 million from a year ago. The company also said it expects to begin shipping its Taser C2 personal protector in the second quarter.
Texas Roadhouse Inc. (NasdaqGS:TXRH - News) reported fourth-quarter earnings of 10 cents a share, up from 9 cents in the year-earlier period. Revenue at the Louisville, Ky., restaurant operator rose to $152.6 million from $117.6 million.
Theravance (NasdaqGM:THRX - News) said the Food and Drug Administration has accepted its new drug application for telavancin, a treatment of complicated skin and skin structure infections caused by Gram-positive organisms. Theravance said the NDA filing triggers a milestone payment of $31 million from its partner, Astellas Pharma.
Tween Brands (NYSE:TWB - News) said its fourth-quarter net income rose to $28.2 million, or 86 cents a share, from $27.1 million, or 80 cents, a year earlier. Excluding items, earnings were 89 cents a share for the quarter. A Thomson Financial survey of analysts, on average, produced a consensus earnings estimate of 84 cents a share for the quarter. Analysts' estimates usually exclude items. Revenue for the quarter ended Feb. 3 rose 16% to $272.3 million from $235.1 million a year earlier. Tween Brand's same-store sales for the quarter rose 2%. By brand, Limited Too same-store sales were flat and Justice same-store sales rose 21%. For the first quarter of fiscal 2007, the company forecast earnings of 34 to 37 cents a share. Analysts project 39 cents for the quarter, on average. The company expects 2007 earnings of $2.15 to $2.25 a share. Analysts forecast earnings of $1.94 a share for the year.
Vail Resorts (NYSE:MTN - News) was upgraded to overweight at Prudential Equity Group.
Warner Music Group (NYSE:WMG - News) was upgraded to buy from neutral at Banc of America. The firm said it believes a potential combination with British music group EMI Group is likely to create an extended positive bias towards Warner.

Labels: MTN, PXLW, TASR, THRX, TWB, TXRH, WMG, ZZ

PetMed Express (NASDAQ:PETS - News) fiscal third-quarter earnings rose 3.1%, boosted by growth in retail new-order sales and retail reorder sales. The Pompano Beach, Fla., pet pharmacy had third-quarter earnings of $2.75 million, or 11 cents a share, compared with $2.67 million, or 11 cents, a year earlier. PetMed said sales for the quarter ended Dec. 31 rose 21% to $31.4 million from $25.9 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 15 cents a share on revenue of $34 million.
Philips Electronics NV (NYSE:PHG - News) said fourth-quarter net profit more than doubled to 680 million euros ($882 million) from 332 million euros a year earlier, easily topping analysts' expectations for profit of 396 million euros. Revenue slipped to 8.13 billion euros from 8.19 billion, falling short of analysts' expectations for sales of 8.32 billion euros. Comparable sales rose 2%. Philips proposed to raise its annual dividend to 0.60 euros from 0.44 euros. The company also said it will raise its dividend pay-out ratio to a range of 40% to 50% from a previous range of 25% to 35% of continuing net income. Looking ahead, Philips said it's confident it can achieve its 2007 target of EBITA growth of at least 7.5% on sales growth of 5% to 6%.
Sears (NASDAQ:SHLD - News) said Craig Monaghan, chief financial officer since September, will leave at the end of this month.
Semtech Corp. (NASDAQ:SMTC - News) was downgraded to underweight from equal-weight at Morgan Stanley.
Sify Ltd. (NASDAQ:SIFY - News) shares slumped after the India-based provider of Internet, network and e-commerce services reported third-quarter net earnings of $940,000, or breakeven per American Depositary receipt. In the same quarter last year, the company posted a net loss of $240,000, or breakeven per ADR. Sify reported revenue of $31.5 million, up 16% from $27.2 million last year.
Star Scientific (NASDAQ:STSI - News) shares dropped after the company said it plans to appeal a summary judgment against it in its patent infringement lawsuit against RJ Reynolds Tobacco Co. The company filed its suit in 2001, alleging that R.J. Reynolds had violated the company's process to reduce the level of nitrosamines - a carcinogenic toxin in tobacco. R.J. Reynolds is a unit of Reynolds American (NYSE:RAI - News).
Sunpower Corp. (NASDAQ:SPWR - News) was downgraded to market perform from outperform at Piper Jaffray.
Take-Two Interactive said it's received a delisting notice from the Nasdaq Stock Market, citing the company's failure to file its Form 10-K for the fiscal year ended Oct. 31 with the Securities and Exchange Commission. The company said it will present its plans to regain compliance to the Nasdaq Listing Qualifications Panel by Jan. 25.
Tecumseh Products Co. (NASDAQ:TECUA - News) named James Bonsall interim president and chief operating officer, a new position. In addition to his new role, Bonsall will continue as president of the company's engine and power train group and as managing director of AlixPartners.
Titan International (NYSE:TWI - News) said it may post a negative gross-profit margin for the fourth quarter and affirmed its sales forecast for all of 2007. The pressure on margin stems from Titan's effort to add off-the-road-tire capacity at its Freeport, Ill., and Des Moines, Iowa, tire facilities. That effort stems in turn from capacity constraints at its Bryan, Ohio, tire plant, Titan said in a statement. The company said that for 2006, its farm-tire business will be down at least $75 million from 2005. Titan still expects to report 2007 sales of $800 million to $825 million. Demand in January and February is "strong," Titan said. Titan also registered an offer with the Securities and Exchange Commission under which holders of its $81.2 million of 5.25% senior convertible notes due 2009 could convert the debt to common shares at an increased rate.
Tween Brands (NYSE:TWB - News) said Chief Operating Officer William May Jr. has resigned, effective today. The New Albany, Ohio-based retailer said it has named Kenneth Stevens as president and COO, effective Jan. 29. Additionally, the company said it plans to record a one-time after-tax charge of 2 cents to 3 cents a share during the fourth quarter for costs associated with May's separation agreement.
Westell Technologies (NASDAQ:WSTL - News) was downgraded to neutral from outperform at Cowen & Co. The firm cited a deteriorating outlook for the company's fundamentals.
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Labels: PETS, PHG, RAI, SHLD, SIFY, SMTC, SPWR, STSI, TECUA, TWB, TWI, WSTL