Jim Cramer Blog

Stocks sold off in afternoon trading to finish lower on the day, as Wall Street struggled with weakness in the financial, tech, and commodities sectors. At the bell, the Dow was off -121 points to end the day at 13,110. Meanwhile, the Nasdaq and S&P closed at 2,619 and 1,451, respectively. Oil prices fell on a strong inventory report with light, sweet crude ending at $93.43 per barrel. Treasury prices rose, while gold fell to $787.30 an ounce. The dollar climbed against the euro, but declined versus the yen.
On the economic front, the Labor Department reported that the Consumer Price Index (CPI) jumped by 0.3% in October, in line with estimates. Analysts claim surging oil prices played a key role in the rise. The Core CPI, which strips out food and energy costs, increased 0.2%, also in line with forecasts. The Labor Department also reported that the number of unemployment applications popped by 20,000 to 339,000. It was the highest total of jobless claims in a month and double what economists were predicting.
In earnings news, Tyco International (NYSE: TYC - News) posted a decline in net income to $181 million, or 36 cents per share, down from $1.25 billion, or $2.45 per share, last year. Results were impacted, in part, by restructuring and separation costs. Excluding one-time items, earnings totaled $285 million, or 57 cents per share, up 20% from $238 million, or 47 cents per share, a year ago. Quarterly revenue rose to $5.03 billion, up 9% from $4.62 billion. On average, analysts were looking for EPS of 55 cents per share on revenue of $4.97 billion. Shares of Tyco closed down -3.6% on the day. Subscribers can read our take on Tyco International in today's edition.
Shares of JC Penney's (NYSE: JCP - News) were down -5.1% at the bell after the company said third-quarter net income fell to $261 million, or $1.17 per share, down from $287 million, or $1.26 per share, last year. Excluding a one-time gain of 14 cents a share, the company would have earned $1.03 per share. Revenue fell -1.1% in the quarter to $4.73 billion. Analysts had forecasted earnings of $1.01 per share on revenue of $4.76 billion. The company also lowered its fourth-quarter guidance to be between $1.65-$1.80 per share, down from previous estimates of $2.41 per share.
In other corporate news, The Wall Street Journal reported today that Swiss financial giant UBS AG (NYSE: UBS - News) may write down -$7.1 billion in mortgage-related losses in the coming quarter. Shares of UBS were off -3.1% at the bell.
On the M&A front, Kraft Foods (NYSE: KFT - News) announced that it has agreed to sell its Post Cereals unit to private-label food maker Ralcorp Holdings in a stock deal worth nearly $1.7 billion. According to the terms released, Kraft will spin off its Post unit and assets to shareholders, which would then combine with Ralcorp. Following the integration, Kraft shareholders would own about 54% of the new entity, with current Ralcorp shareholdings owning approximately 46%.
By the BullMarket.com Staff

Labels: CPI, JCP, KFT, TYC, UBS

On Tuesday’s show, Cramer focused on green stocks that are good investments. Cramer reviewed his green picks from back in April to see how they had done since then.
Shaw Group (SGR): It is up 143% from about $30 to $74 since April.
Foster-Wheeler (FWLT): It is up 99% since April and had great earnings last quarter.
BorgWarner (BWA): It is up 38% since April, and Cramer thinks it will go higher because it has an increasing backlog.
OM Group (OMG): This is the only stock that is down since April, falling 5%. Cramer thinks the stock has started to bounce back from its lows already.
First Solar (FSLR): The stock has climbed 171% and Cramer is still bullish, but wants you to wait until after it reports earnings on Wednesday before buying more.
Fuel Tech (FTEK): This stock is up 35%, but guided down after reporting earnings Tuesday morning.
MEMC (WFR): This stock is up 20% since April and Cramer thinks the company will grow 52% over the next two years.
Tatra Tech (TTI): It is up 14% since April, and Cramer thinks it will keep going up slowly but steadily.
Cramer thinks every one of these stocks will go higher, and thinks that going green is good for business.
Cramer then went to the phone lines. The first caller asked about Zoltek (ZOLT), and Cramer said that although he recommended this stock a while ago he pulled out because he thought he was getting greedy. He now thinks this stock will keep going up. The second caller asked about BP (BP), and Cramer doesn’t think you can own this company because of its green initiatives. The next caller asked about SunPower (SPWR) and Cypress (CY), and Cramer said that Cypress is safer, but he likes both stocks.
The CEO of Wells Fargo (WFC) was on the show to talk about their alternative energy investments and positions, as well as the prospects. Cramer said this is the only banking stock he wants you to buy.
“Am I Diversified?”
The first email asked about UBS (UBS), and Cramer said that he has messed up with every financial pick he had made recently, and thinks you should wait until the stock hits $45 before you buy. The next email asked about Oceaneering International (OII), and Cramer said he didn't like the most recent earnings call. The next email asked if the recent investment in Tesoro (TSO) by Kirk Keorkian's was a bet that oil will drop, and Cramer said that could be right, but that TSO could drop if oil prices decline. The final email asked about lululemon (LULU), and Cramer said he wants nothing to do with the stock since it has gone up so much.

Labels: BP, BWA, CY, FSLR, FTEK, FWLT, Jim Cramer, Mad Money, OII, OMG, SGR, SPWR, TTI, UBS, WFR, ZOLT

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
Amazon.com Dec 105 Calls (NasdaqGS:AMZN - News). AMZN's PowerRating (for Traders) is 5.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Savient Pharmaceuticals Nov 15 Puts (NasdaqGM:SVNT - News). SVNT's PowerRating (for Traders) is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
MasterCard Nov 175 Calls (NYSE:MA - News). MA's PowerRating (for Traders) is 7.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Goldman Sachs Nov 200 Puts (NYSE:GS - News). GS's PowerRating (for Traders) is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Kennametal (NYSE:KMT - News). KMT's PowerRating (for Traders) is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
UBS AG (NYSE:UBS - News). UBS's PowerRating (for Traders) is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Moody's Corp. (NYSE:MCO - News). MCO's PowerRating (for Traders) is 5.
Published By TradingMarkets.com

Labels: AMZN, GS, KMT, MA, stock options, SVNT, UBS

Cramer talked about three stocks that could benefit this week from the weak dollar. Coca-Cola (KO), which Cramer expects to hit $60 next week. The stock closed at $57.80.
Next is United Technologies (UTX), which Cramer said should "handily" beat its numbers with its great overseas exposure. Lastly, there is Altria (MO), which he also owns for his Action Alerts PLUS and which he believes is still the cheapest stock on the Dow Jones Industrial Average. Cramer also said that Citigroup (C) CEO Chuck Prince could be out of his position next week. Market players should consider getting into Citigroup by Friday.
BEA Systems (BEAS) got a massive takeover bid from Oracle (ORCL), something Cramer said he's been predicting would happen for a while. Activist investor Carl Icahn told Cramer that he was "right on" with his predictions. Icahn also said he feels Motorola (MOT) has "great value" and should be split up.
UBS (UBS) - Cramer told viewers that when a stock reports bad news and still goes higher, it's telling people it has bottomed and is ready to go much higher. He said that the bad news had been priced in the stock and now it is ready to go higher.
Tutogen Medical (TTG). On speculation Friday, Cramer said that although the stock is less than $1 away from its 52-week high, it looks like Tutogen could be headed up on deals with other companies. Cramer likes the stock, because it's likely it will get a bid from Zimmer Holdings (ZMH).
Cramer welcomed Chicago Bear linebacker Hunter Hillenmeyer on his show. When Hillenmeyer asked Cramer about Las Vegas Sands (LVS), Cramer pointed out the management there is "extraordinary." However, he believes Wynn (WYNN) is running the best casino in Macau. Cramer advised taking a little off the table. Next, he suggested Hillenmeyer consider selling JetBlue (JBLU) on Monday and buying more NYSE (NYX), which Cramer owns for his charitable trust, below $80

Labels: BEAS, Jim Cramer, KO, Mad Money, Mad MOney Recap, MO, ORCL, UBS, UTX

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Palm (NasdaqGS:PALM - News) beat earnings estimates on Monday afternoon, announcing $0.09 EPS over an expected $0.08 EPS. PALM's PowerRating (for Traders) is 4.
Pepsi Bottling (NYSE:PBG - News) should report $0.89 EPS on Tuesday before the market opens. PBG's PowerRating (for Traders) is 5.
Citigroup (NYSE:C - News) and UBS (NYSE:UBS - News) both announced major profit warnings for Q3 of this year, as the subprime mortgage effects continue to reverberate in the margin. C speculated that profit would fall 60% from last year, while UBS said it would probably lose about $3.4 billion. Despite the news, both companies were up on the day. C's PowerRating (for Traders) is 4, and UBS's PowerRating (for Traders) is 4.
Nokia (NYSE:NOK - News) announced plans to buy digital-map provider Navteq for $8.1 billion. NOK's PowerRating (for Traders) is 4.
Walgreen (NYSE:WAG - News) lost 15% on Monday, after missing analyst earnings estimates by a long-shot before the market opened. WAG's PowerRating (for Traders) is 5.
Acxiom (NasdaqGS:ACXM - News) announced that its $2.2 billion buyout by private firms has cancelled. ACXM will be awarded a $65 million termination fee, but the stock fell about 20% on the news. ACXM's PowerRating (for Traders) is 7.

Labels: ACXM, Hot Stocks, NOK, PALM, Palm Inc., PBG, UBS, WAG

Bullish Calls:
Honeywell (NYSE: HON - News): [CEO Dave Cote} '... is just the master of Honeywell. He's buying back stock hand over fist. He's doing a great job. ... Honeywell is absolutely a Triple Buy.'UBS (NYSE: UBS - News): 'Has been spindled, mutilated, crushed, whipped, and you know what? It's a great franchise, and it's going to come back. ... The stock is way, way off its 52-week high. ... Let's pull the trigger if we can around here and buy some UBS. ... It's going to start rallying.'Caterpillar (NYSE: CAT - News): ' ... is now down ... 16 straight points.'The Travelers (NYSE: TRV - News): 'I've got to send you to Travelers. I know that they've got great cash flow, and they take advantage of the absolute chaos.'Ingersoll-Rand (NYSE: IR - News): 'Warren Buffet has been buying this stock almost as aggressively as the company has itself ... is a buy.'Ametek (NYSE: AME - News): 'Precision instruments is a good business. ... I like Ametek.'American International Group (NYSE: AIG - News) ' I think that AIG may be a better bet now that the Fed has blinked.'Goodyear Tire (NYSE: GT - News): 'They did the restructuring, and the stock has been knocked down like every industrial company has ... I think you've got to stick with Goodyear.'US Bancorp (NYSE: USB - News): 'I think Warren Buffet has just bought a ton of USB. Very little exposure to the mortgage market. ... US Bankcorp is fine with me. I would stick with US Bancorp.'
Bearish calls:
Dynamic Materials (NasdaqGS: BOOM - News): 'It has been a stalled stock. Metal-working, welding -- you need a stronger economy for it. ... Don'tBuy Don'tBuy. I say be careful.'Life Partners (NasdaqGM: LPHI - News): 'I frankly don't understand what part of the life insurance business they're really in. ... That's a hard business to understand.'
Published By SeekingAlpha

Labels: AIG, AME, BOOM, CAT, GT, HON, IR, Jim Cramer, Lightning Round, LPHI, Mad Money, TRV, UBS, USB

It wasn't the strongest advance in recent sessions, but stocks recovered from a meandering start to push higher again today, helped by more upbeat economic news and the generally positive corporate profit picture for the first quarter. As has been the pattern in recent days, crude oil prices and the 10-year Treasury note moved in the opposite direction from stocks, closing lower.
Investors today were encouraged by a good report on inflation and another that showed growth in the services sector. The Labor Department's report on unit labor costs, an indicator of wage growth, rose at a scant 0.6% rate in Q1. The Institute of Supply Management, meanwhile, said its index of non-manufacturing business rose to 56.0 in April from 52.4 in March. Any reading above 50 is considered to show expansion. The Dow Jones Industrial Average marked another record close. The Dow has now risen in 22 of the last 25 sessions, making it one of the index's lengthiest bull runs in years.
The Dow's gain might have been stronger if not for longtime component General Motors (NYSE: GM - News), which reported a whopping -90% drop in Q1 profit. While its domestic auto business continues to suffer in the face of rising gas prices, profit was also hurt by weak results at its 49%-owned finance arm, GMAC, which has been hurt by the weak housing market. GM reported net income of $62 million, or 11 cents a share, compared with $602 million, or $1.06 a share, a year earlier. Excluding assorted charges related to its restructuring efforts, the car company would have earned 17 cents a share, still well short of the 87 cents a share analysts expected. Its shares declined -5.4%.
In the tech sector, increased profits reported by digital audio/video services provider RealNetworks (Nasdaq: RNWK - News) helped boost its stock 8.8%. RealNetworks reported a 60% increase in Q1 profit, driven by strong sales in its music and gaming units and the final payment from a settlement deal with Microsoft (Nasdaq: MSFT - News). The company said it would significantly increase its share repurchase program. Security software maker Symantec (Nasdaq: SYMC - News), meanwhile, rose 4.8%. Its fiscal Q4 profit fell almost -50%, but that result was nonetheless above expectations. The company was upgraded to "buy" from "hold" at Jefferies.
The sale of ABN Amro (NYSE: ABN - News) got murkier after a Dutch court blocked the bank's plan to sell is Chicago-based LaSalle National Bank subsidiary to Bank of America (NYSE: BAC - News). That transaction was to occur so that ABN could sell itself to Barclay's (NYSE: BCS - News). The court said ABN management must seek shareholder approval to sell LaSalle, making it more likely that the higher competing bid from a group led by Royal Bank of Scotland might win out.
Subprime lending woes led to a -7% profit decline at UBS (NYSE: UBS - News). The Swiss-based bank said it would shutter its Dillon Read Capital Management division, a hedge fund the bank set up in 2006 that ran up a -150 million Swiss franc loss from trading in the U.S. mortgage market.
By the BullMarket.com Staff

Labels: ABN, BAC, BCS, GM, MSFT, RNWK, SYMC, UBS

Google Inc. June 530 Calls (NasdaqGS:GOOG). GOOG's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
MedImmune June 50 Puts (NasdaqGS:MEDI). MEDI's PowerRating is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Dendreon May 17.5 Calls (NasdaqGM:DNDN). DNDN's PowerRating is 8.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
iShares MSCI Emerging Markets Index June 115 Puts (AMEX:EEM). EEM's PowerRating is 6.
CBOT Holdings June 170 Puts (NYSE:BOT). BOT's PowerRating is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
UBS AG (NYSE:UBS). UBS' PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None Today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Atherogenics Inc. (NasdaqGM:AGIX). AGIX's PowerRating is 2.
PowerRatings are courtesy of TradingMarkets.com

Labels: AGIX, BOT, DNDN, EEM, GOOG, MEDI, stock options, UBS

Discount Web retailer Overstock.com Inc. said Friday it filed a lawsuit seeking damages of $3.48 billion against prime brokers including Morgan Stanley, Goldman Sachs, Bear Stearns, Citigroup and others.
The company said its lawsuit alleges the brokers participated in a "massive, illegal stock market manipulation scheme," and their actions caused "dramatic distortions" in the trading of Overstock's shares, causing the price to drop.
The lawsuit was filed in the Superior Court of California in San Francisco, and alleges violations of California securities laws, common law and California's Unfair Business Practices Act, Overstock said.
"I believe that this conduct is harming our company and our shareholders deeply, and that investors have been failed by those who have a duty protect them," said Patrick Byrne, chairman and chief executive, in a statement.

Labels: BAC, BK, BSC, C, GS, MER, MS, OSTK, Overstock.com Inc., UBS

APPLE COMPUTER INC. (AAPL.O: Quote, Profile, Research)
Current Prior Price target $108 $95
UBS said its checks point towards solid iPod sales for new shuffles and certain nanos along with momentum in Macs and prospects for higher accessories and software longer-term. Given prospects for new iPods and with Mac sales momentum driving software and peripherals, the brokerage said it raised its fiscal 2007 earnings per share estimate to $2.84 from $2.75. UBS also raised its fiscal 2008 estimates for the company to $3.35 from $3.15. The brokerage reiterated its "buy" rating on the iPod maker's stock.
Source: Reuters.com

Labels: AAPL, Apple, UBS