Jim Cramer Blog

Take some profits in hot sectors, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.
"It's about time," Cramer said of today's market selloff. "Heaven love the rails," he said, "but they do not have to be up every day." He recommended ringing the register in groups that are "having parabolic moves." He also said he doesn't like tech at these levels.
Cramer said he does like some stocks here. He said Honeywell (HON) is a buy if the price comes down. He said the company "basically preannounced the other day, and it's not really doing anything."
Cramer said some steel companies will win on the earthquake in China. He said that he wants to be in on a secondary offering from Nucor (NUE). "Very rarely do I ever want to be in a secondary," he said. "Not this one. This one is a winner."
Of the larger commodity markets, Cramer said that stocks with oil exposure are "not expensive." He said that "people are not using $125 [a barrel for oil] in their numbers." He said that with that factor added in, many stocks should be priced higher.
Cramer also said he likes CSX (CSX) and Union Pacific (UNP), but recommended taking profits "just as a prudence method." He expressed concern that the American rail companies appear to be the only stocks reacting to the news of the China earthquake.
Cramer also praised oil and gas magnate T. Boone Pickens for being right about ethanol. Cramer said that when 3% of gasoline destroys 30% of America's food supply, it's "about as dumb a thing as I've ever heard.
"I'm the most rapacious capitalist that's ever lived," Cramer said, but "I still have some horse sense."
Published By TheStreet.com

Labels: CSX, HON, Jim Cramer, NUE, Stop Trading, UNP

Cramer Cries Foul:
United Technologies (UTX), Microsoft (MSFT), Honeywell (HON), IBM (IBM), Fluor (FLR), Union Pacific (UNP), CSX (CSX)
Cramer declared he was sick and tired of taking abuse from people who say I've gotten it wrong, specifically Robert Samuelson who wrote in a recent Newsweek article that Cramer advocates rate cuts only to create a short-term lift for stocks. Cramer argued he has been advocating rate cuts for a year, and band-aid stimulus packages that give away taxpayer monies that we don't have are not the solution. Instead, he advocates a rate reduction of 1.75% and said the Fed was unsophisticated, arrogant and incredibly reckless. Cramer said in the current environment, he would consider buying UTX, MSFT, HON, IBM, FLR, UNP, CSX.
Excuses, Excuses: Motorola (MOT), Nokia (NOK)
Sometimes a loser company's excuses can bring down good companies. Cramer cited MOT, which reported abysmal numbers last week, admitted mobile sales were down 38% and blamed the economy. As a result, there was a huge selloff of MOT and NOK, even though NOK reported a 44% increase in sales, bigger market share and strength in foreign markets. Nokia should not be punished for Motorla's sins, particularly since MOT makes products no one wants to buy and lacks vision.
CEO Interview: Emanuel Chirico of Phillips-Van Heusen (PVH) also with stocks Liz Claiborne (LIZ), VF Corp (VFC), Jones Apparel (JNY)
Cramer says retail is the place to be if there will be another rate cut and mentions he likes LIZ, VFC and JNY in addition to PVH. Emanuel Chirico said although his company was one of the first in the sector to issue warnings about a sluggish consumer, PVH recently beat its estimates by two cents a share. While inventories are up slightly, Chirico highlighted PVH's successful buyback program and its renaming Continental Airlines Area to Izod Arena, which will be a strong marketing tool. While Cramer likes all the retail names he mentioned, he adds PVH is the cheapest in the group.
Published By SeekingAlpha

Labels: CSX, FLR, HON, IBM, Jim Cramer, JNY, LIZ, Mad Money, MOT, MSFT, NOK, PVH, UNP, UTX, VFC

Bullish
Diana Shipping (DSX)-
Sirius Satellite Radio (SIRI)- Need to get the merger done to go up.
Baidu.com (BIDU)-
Celgene (CELG)- This is the name.
L-3 Communications (LLL)-
Becton Dickinson (BDX)-
Lowe's (LOW)- Is low and likes retail here.
Union Pacific (UNP)- Has better breadth
Barrick Gold (ABX), Yamana Gold (AUY), Goldcorp (GG), Freeport-McMoRan (FCX)- Likes all gold.
Wyndham Worldwide (WYN)- They reported a good quarter.

Bearish
Navios Maritime (NM)- Not his favorite shipper
Sohu.com (SOHU)- "no, no, no"
Genentech (DNA)- Had to give up.
AuthenTec (AUTH)- Had a big run, but likes L-3
Burlington Northern Santa Fe (BNI) - Likes UNP better.
Las Vegas Sands (LVS)-

Labels: BDX, BIDU, CELG, DSX, Jim Cramer, Lightning Round, LLL, LOW, Mad Money Lightning Round, SIRI, UNP

Bullish:
Lululemon (LULU) since it is up 53% since Cramer recommended it on August 3.
Stericycle (SRCL): Cramer has been behind this stock for a while and he's still recommending it.
Coach (COH): Cramer thinks you can get the stock at a discount right now.
Cramer likes Bunge (BG), Monsanto (MON), Deere (DE) and Mosaic (MOS)
DryShips (DRYS): Cramer is bullish.
Union Pacific (UNP): Likes more than BNI
Amazon.com (AMZN): Cramer thinks the stock is going up to $100.

Bearish:
BPZ Energy (BZP): Cramer needs to do some research on the stock and follow up.
Compellent Tech (CML): Cramer needs to do his homework on the stock and come back to it later.
Burlington Northern Santa Fe (BNI): Cramer likes the railroad stocks, but UNP more
American Oriental (AOB): Likes Bunge, Monsanto, Deer and Mosaic more.

Labels: AMZN, AOB, BG, BNI, BZP, CML, COH, DE, DRYS, Jim Cramer, Lightning Round, LULU, Mad Money Lightning Round, MON, MOS, SRCL, UNP

Bullish Calls: CME Group (CME): Cramer referred to CME as a "coiled spring" that will go up after it announces earnings. EMC (EMC): EMC's stock price isn't reflecting the value of VMware (VMW), but Cramer thinks it will in about 6 months. Cramer thinks Freeport-McMoRan (FCX) is the best stock in the copper sector. Parker-Hannifin (PH): Cramer thinks this stock is a winner. Burlington Northern (BNI): Cramer likes the rail sector, but he thinks Union Pacific (UNP) is a better play than BNI. Texas Instruments (TXN): Cramer thinks this is a good company to own. Goodyear Tire (GT): Cramer likes this better than Michelin, but he would rather be in oil service plays rather than oil consumers. Rosetta Resources (ROSE): Cramer says to "pull the trigger." Sears Holdings (SHLD): Cramer says to hold it if you already own the stock, and to stay away if you are thinking about buying.Bearish Calls:Delta (DAL): Cramer said, "I don't want to own any airline here," because he thinks oil is going higher. Alpha Natural Resources (ANR): Cramer is staying away from the coal sector until new carbon dioxide regulations are passed. Cramer says stay away from Peru Copper (CUP).

Labels: ANR, BNI, CME, CUP, DAL, EMC, FCX, GT, Jim Cramer, Lightning Round, Mad Money, ROSE, SHLD, TXN, UNP, VMW

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.

Pozen Inc. Sep 22.5 Calls (NasdaqGM:POZN - News). POZN's PowerRating is 7.
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.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News). FRO's PowerRating is 7.
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.
Perini Corp. Aug 60 Calls (NYSE:PCR - News). PCR's PowerRating is 9.
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.
Mastercard Inc. Aug 135 Puts (NYSE:MA - News). MA's PowerRating is 7.
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.
Union Pacific Corp. (NYSE:UNP - News). UNP's PowerRating is 7.
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.
Netgear Inc. (NasdaqGS:NTGR - News). NTGR's PowerRating is 7.
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.
DR Horton Inc. (NYSE:DHI - News). DHI's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: DHI, FRO, MA, NTGR, PCR, POZN, stock options, UNP

Predator and Prey: BASF (NYSE: BF - News) and Nova Chemicals (NYSE: NCX - News)
Cramer continued his series on European stocks with BASF, the biggest chemical company in the world, and a stock he likes because "...it has nothing to do with the United States. " While chemical companies have been attractive takeovers, Cramer thinks of BASF as a predator rather than the prey and doesn't expect it to get a bid. However, as long as chemical companies are in bull mode, Cramer says BASF will thrive with its secure earnings. It is also linked to two other bull markets: agriculture and natural gas and oil. He predicts BASF will rise from $136 to $150. Cramer likes NCX as a good "prey" play since Access founder Len Blavatnik is trying to build a global chemcial company and is looking for acquisitions like NCX with strong fundamentals. Cramer thinks NCX could be bought at $56.
Sell Block: Blackstone Group (NYSE: BX - News), Google (NasdaqGS: GOOG - News), Johnson Controls (NYSE: JCI - News), Washington Mutual (NYSE: WM - News), Goldman Sachs (NYSE: GS - News)
Cramer hopes people listened when he said they should get out of BX, but he suggests he may have been a hog with Google, which missed its quarter. He added a caveat; "Please don't buy the first trading day the week after I recommend a stock," he said. "You have to wait for weakness" and if the stock is high "take a pass." He identifies JCI as one of his picks for which investors should have taken a pass. However, Cramer still thinks JCI is an anointed stock with some upside. Cramer would leave the financials in Rumorville, since they have been vulnerable to Street Gossip, even WM. Concerning his golden pick, GS, Cramer says it hasn't bottomed yet and he would only recommend investors who can take the pain stay in GS.
CEO Interview: James Young Union Pacific (NYSE: UNP - News) with CSX (NYSE: CSX - News)
James Young commented on how overcapacity in the industry is getting lighter, and is responsible, along with congested traffic, for the stock's rise. Cramer said UNP is not going to stop rising at $125 and also gives CSX two thumbs up.
Published By SeekingAlpha

Labels: BF, BX, CSX, GOOG, JCI, Jim Cramer, Mad Money, NCX, UNP, WM

The Rail Deal: Koppers (NYSE: KOP), Greenbrier (NYSE: GBX), Trinity Industries (NYSE: TRN), CSX (NYSE: CSX), and Union Pacific (NYSE: UNP)
The rail sector is hot right now, and Cramer suggested finding an "oblique play" like KOP. Although KOP is up 46% since Cramer recommended it, 21 milllion railroad ties will be needed in 2007, and demand is outstripping supply. In addition to producing railroad ties and splitters, KOP is an "impure play" with a chemical business, which is one reason KOP is under the radar while the railroad cycle is on the move. For investors who want a pure rail play, TRN is the largest rail car producer in the U.S. Cramer predicts rail will continue to rise because ethanol requires rail transport, and he adds TRN also makes wind towers. In the past two years, Cramer has seen some "sweet moves" in the sector from CSX and Union Pacific which may be too expensive to buy right now and would purchase some KOP and TRN instead. However, he retracted his recommendation on buying GBX, and said it is not a rail worth owning.

Private Lessons: Darden Restaurants (NYSE: DRI)
Continuing his series of possible private equity takeover targets, Cramer discussed DRI, which owns Red Lobster and the Olive Garden. The company has "massive cash flow" and just enough obstacles, including slow growth, to attract a private equity firm. Cramer predicts DRI could be purchased at a 20% premium, and even if it remains on the shelf, DRI is still good to own because it is a "broken stock" and not a "broken company."
CFO Interview Gary Fayard, Coke (NYSE: KO)
International sales were the cause of KO's blowout quarter, with its emerging market growth in the double-digits and European growth at 11%. Japan is becoming a "critical market" for KO. Fayard explained why there is still time to invest; "We had a great start for the year, but if you look at the market we compete in ... it's growing faster than almost any other consumer area. We still only have 20% share globally. There is still a lot of ways to grow in this industry for us." Cramer said KO should move higher.
Published By SeekingAlpha

Labels: CSX, DRI, GBX, Jim Cramer, KO, KOP, Mad Money, TRN, UNP

Burlington Northern (NYSE: BNI - News), Norfolk Southern (NYSE: NSC - News) and Union Pacific (NYSE: UNP - News)
On news of Warren Buffett's buying an 11% stake in BNI, which Cramer considers "the worst rail in terms of operating performance," Cramer predicted the investment wizard also purchased NSC and UNP. NSC did not decline on its preannouncement of a terrible quarter and Cramer notes UNP is the second largest landowner in the U.S with great value. Although Buffett has been buying rails as they rise, he is not going against his own strategy, since the rails are valuable; "What people don't realize is that these stocks trade very thinly," Cramer said. "This is a group that has continuously shrunk the float." He sees Buffett's purchase of BNI as an indication that coal's story is not over, since the company is the only efficient coal transporter. With utilities hitting highs, Cramer sees a new trend in the relationship between transports and utilities; "Every time the utilities would go up, I would short the transports, and every time the transports hit a new high, I'd short the utilities. This is obviously no longer the case."
Published by SeekingAlpha

Labels: BNI, Jim Cramer, NSC, UNP, Wall Street Confidential

Stocks traded timidly on the cusp of first-quarter earnings season, which kicks off after tomorrow's closing bell when aluminum giant Alcoa (NYSE: AA - News) becomes the first major company to report results for the quarter ended March 31st. The major market averages were mixed, with tech shares trading slightly lower, while the other major averages eked out fractional gains. There seemed to be little news to spark activity today, though crude oil prices did drop sharply. The 10-year Treasury note also posted a slight gain in today's trading.
Railroad stocks moved higher after Berkshire Hathaway (NYSE: BKR-B - News) disclosed it had taken a nearly 11% stake in Burlington Northern Santa Fe (NYSE: BNI - News), along with smaller stakes in two other undisclosed railroad companies. Speculation on the remaining candidates focused on Union Pacific (NYSE: UNP - News), Norfolk Southern (NYSE: NSC - News), and CSX (NYSE: CSX - News), all of which closed higher. Burlington Northern shares finished up 6.5%.
In profit news, chipmaker Advanced Micro Devices (NYSE: AMD - News) warned that its Q1 profit will likely come in below forecasts, but its shares still gained 3.8% on short covering. AMD said revenue will be $1.23 billion, or -$475 million shy of the high end of its initial estimates. Unit sales and average selling prices continue to drop due to its price war with rival Intel (Nasdaq: INTC - News), which closed up 2.7%. AMD said it would impose a partial hiring freeze and curtail other spending in an effort to cut costs. The news drew mixed analyst reaction. JMP Securities, which overall sees an upside to AMD, maintained its "market outperform" rating, but cut its target from $17 to $16. Friedman Billings Ramsey, meanwhile, reiterated its "under perform" rating and cut its target from $10 to $9.
Mortgage investment trust American Home Mortgage Investment (NYSE: AHM - News) plunged -15.2% after the company sharply cut its Q1 earnings forecast. The firm focuses on the prime and near-prime sectors, not subprime, but it warned investors that problems in the secondary mortgage and mortgage-backed securities markets will result in reduced profits of 40 cents to 60 cents a share, sharply lower than its earlier forecast of $1.11 to $1.17 a share in earnings. The company also cut its dividend to 70 cents from $1.12.
In tech news, shares of Internet phone company Vonage Holdings (NYSE: VG - News) sank sharply after the company came up on the wrong end of another ruling in its patent dispute with Verizon Communications (NYSE: VZ - News). Last Friday, a federal judge ruled Vonage must stop adding new customers; the company immediately appealed and was granted a temporary stay. The company earlier was found to be in violation of several basic patents held by Verizon.
By the Bullmarket.com Staff

Labels: AA, AHM, AMD, BKR-B, BNI, CSX, INTC, NSC, UNP, VG, VZ

Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK-A - News; NYSE:BRK-B - News), which built a 10.9 percent stake in Burlington Northern Santa Fe Corp. (NYSE:BNI - News), has acquired stakes in two other rail companies, CNBC television said on Monday.
Citing an interview with the billionaire investor, CNBC said Omaha, Nebraska-based Berkshire spent $700 million on one of the additional rail investments and slightly less on the other.
It was not immediately clear in which other railroads Berkshire invested. The insurance and investment company was not immediately available for comment.
Buffett made his name by investing in companies with strong management and businesses that he considers undervalued.
A major railroad stock index, however, now sits near its recent peak. The Standard & Poor's 500 Railroads Index (^GSPRAIL - News) on Thursday closed at 393.85, just 2.6 percent below its record high set on February 22.
The index includes CSX Corp. (NYSE:CSX - News), Norfolk Southern Corp. (NYSE:NSC - News) and Union Pacific Corp. (NYSE:UNP - News), along with Burlington Northern.
In a Friday filing with the U.S. Securities and Exchange Commission, Berkshire said it owned 39,027,430 Burlington Northern shares, making it the company's largest shareholder. The market value of the shares was $3.23 billion as of April 5.
Burlington Northern shares closed Thursday at $82.72, CSX at $40.96, Norfolk Southern at $50.98 and Union Pacific at $103.20. Shares of all four companies rose about 3 percent in pre-market electronic trading.
Published by Reuters

Labels: ^GSPRAIL, BNI, BRK-A, BRK-B, CSX, NSC, UNP

Rethinking Spartan Motors Spartan Motors (NasdaqGS: SPAR)
Although he initially rejected a pitch for Spartan Motors made by an IU Kelley School of Business student, Cramer is now bullish after investigating the stock further. Initially, he thought SPAR was mainly involved with recreational vehicles which would be out of favor with rising oil prices. However, Spartan also manufactures emergency vehicles, and since 55% of the nation's firetrucks need replacing, Spartan vehicles will be in demand. In addition, the armed forces require vehicles that will protect soldiers from roadside bombs. Spartan's military motor division recently scored the second largest contract in its history. The company's RV business is doing well, because baby boomers love RVs. While Spartan has a great story, Cramer cautions that this small-cap speculative stock may not be for everyone and to wait for a pullback before buying.
Sell Block: WCI Communities (NYSE: WCI - News), Simon Property Group (NYSE: SPG - News), Hologic (NasdaqGS: HOLX), Norfolk Southern (NYSE: NSC - News), Union Pacific (NYSE: UNP - News), Greenbrier Companies (NYSE: GBX - News), Coldwater Creek (NasdaqGS: CWTR), Gilead Sciences (NasdaqGS: GILD), Celgene (NasdaqGS: CELG), Altria (NYSE: MO - News), Kraft (NYSE: KFT - News) Take-Two Interactive (NasdaqGS: TTWO)
Cramer is "adamant that homebuilders can't be owned" and would sell WCI even though it hasn't moved, along with SPG, which has had a big increase. He would also sell HOLX which is "priced for perfection" but which has been the target of articles suggesting its products are less than perfect. Cramer likes rails as a "happy oligopoly, but given NSC's disappointing guidance, he would swap it for UNP on any strength. Cramer confessed "I deserve to be roasted over hot coals" for recommending GBX as a short-busting play when the stock has had a huge drop. Cramer wants to avoid getting burned again over CWTR and would sell even though it seems to be making a comeback. He thinks upgrades of semiconductors are "insane" and would get rid of the entire sector. Gilead, Cramer's "bio stock of the year" is now too expensive, and he would sell it or swap into Celgene. Now that Altria has spun off Kraft, Cramer would hold onto MO and sell KFT; "American cheese just doesn't turn it's customers into hopeless addicts."Finally, the fact that it is difficult to zero in on what is really wrong with TTWO is the best reason to sell it.
Mad Mail: Deere (NYSE: DE - News), Coca-Cola (NYSE: KO - News)
Cramer would back up the truck and buy DE because, for the long-term "we are in a secular bull market inf farming" and sees a strong comeback for Deere. Cramer also likes KO because if it's brand turns around in Japan, KO could rise from $50 to $55.

Published by SeekingAlpha

Labels: DE, GBX, HOLX, Jim Cramer, KFT, KO, Mad Money, MO, NSC, SPAR, SPG, TTWO, UNP, WCI

Verizon (NYSE: VZ - News), Vonage (NYSE: VG - News): Cramer wanted to talk about "what a bunch of hucksters" the executives at Vonage are concerning the injunction in a patent case with Verizon which brought the stock down 23%. "Everyone thought that VG should be sitting down with Verizon and talking," commented Cramer who thought it was an outrage the VG did just the opposite; "Swap out of VG into anything!"
Clorox (NYSE: CLX - News), ConAgra Foods (NYSE: CAG - News), Union Pacific (NYSE: UNP - News), Norfolk Southern (NYSE: NSC - News), CSX Corp (NYSE: CSX - News): Noting that CLX and CAG have new management, Cramer added that they could be broken up as well as rail companies such as UNP "the largest land owner in America," NSC and CSX which also have hidden assets। He adds that all of the rails are pro-shareholder.
Published by SeekingAlpha

Labels: CAG, CLX, CSX, Hot Stocks, Jim Cramer, NSC, UNP, VG, VZ

Bullish calls:
Saks (NYSE: SKS - News): 'The company is en fuego. This is one of my favorite situations ... SKS is going up - I think - 4 or 5 more points.'Sprint Nextel (NYSE: S - News): 'I was impressed about that last quarter. I had been very negative about S ... They blew away the numbers. I think S is now a buy, buy, buy, particularly under $20. That stock can go much higher.'Transocean (NYSE: RIG - News): 'Take a look at the rates that RIG is now getting.'Halliburton (NYSE: HAL - News): 'HAL is on the move. I have said this is going to be one of my best stocks of 2007, and I am reiterating a triple buy. Buy, buy, buy!'Logitech International (NasdaqGS: LOGI): ' I'm actually surprised this stock isn't doing better. They make the fabulous peripherals we all use. They make great mice. They did miss the quarter. I think the stock is a buy. I'm not backing away from LOGI.'Dean Foods (NYSE: DF - News): 'That company is all about returning money to shareholders. That special dividend plan is brilliant. I really want to plug these guys.'Genzyme (NasdaqGS: GENZ): 'I think you've got to buy this company. I think that people are very worried about congressional action against biotech. That's not going to happen. GENZ's good.'Gilead (NasdaqGS: GILD): 'GILD's good.'Celgene (NasdaqGS: CELG): 'CELG's good. 'Walter Industries (NYSE: WLT - News): It shouldn't have been hammered. All aboard! ... There's a lot of value there, if they choose to bring it out.'Baxter International (NYSE: BAX - News): 'BAX is the one that is operating on every single cylinder. I applaud BAX for what it's done. That stock has been at or near the 52-week high list for about a half a dozen years. BAX's a winner!'Bard (NYSE: BCR - News)MasterCard (NYSE: MA - News): ' This is an 'among the rubble' stock that came down during the selloff that I want to tell you right now... you need to buy more MA! I would pull the trigger multiple times. That's how much I like MA here. All aboard!'Emerson Electric (NYSE: EMR - News): 'Right here, it's got a 2.5% yield. It's one of the best-run manufacturers in the country ... It's growing at almost 12%. It sells at 16x earnings.'Parker Hannifin (NYSE: PH - News)Illinois Tool Works (NYSE: ITW - News)Vail Resorts (NYSE: MTN - News): 'I'll tell you, it's had a big run ... You know what, that's a good stock. On a pullback, I would have to pull the trigger. Buy, buy, buy!'Regal Entertainment (NYSE: RGC - News): 'You want to be there! These companies - these cinema companies are good - it's got a nice dividend. I think that this group was bad before. They've fixed their balance sheets. You should pull the trigger. I would own RGC.'Ceradyne (NasdaqGS: CRDN): 'To tell you the truth, I'd rather be in CRDN.'Union Pacific (NYSE: UNP - News): 'Oh man, that stock is rocking ... I say it goes to $120.'Goldman Sachs (NYSE: GS - News)
Bearish calls:
Global Industries (NasdaqGS: GLBL): ' I would swap out of GLBL and go into GSF, RIG or HAL.'RF Micro Devices (NasdaqGS: RFMD): 'Yeah, this is one of those little stocks that has had a nice move ... I think that you are too late, but these always come back again. I would sell, sell, sell, and when it comes in, back to $6 - buy, buy, buy!'Acorda Therapeutics (NasdaqGM: ACOR): 'I've got to tell you, this is a very speculative stock. I'm reluctant to recommend it, with a lot of the great biotech stocks trading down so badly ... Don't buy, don't buy.'Research In Motion (NasdaqGS: RIMM): 'I was not happy with Jim Balsillie [ co-CEO] with the options stuff... I expected more of Jim than that. He's one of my favorite executives. I do think that RIMM is good place to be ... Don't buy, don't buy. It's just too, too hard.'ExpressJet (NYSE: XJT - News): ' Look, XJT is frankly a don't buy. I don't want to go there. Don't buy, don't buy.'Bristol-Myers (NYSE: BMY - News): ' Sunshine, I've got to tell you something... I think that BMY is just okay right here. Don't buy, don't buy. It's had a very big move. I liked it much lower ... Sell, sell, sell!'Pioneer Drilling (AMEX: PDC - News): 'You cannot go with this land drilling! ... Sell, sell, sell, sell, sell, sell. It won't work!'Take-Two Interactive (NasdaqGS: TTWO): 'I have been mad at myself. Yesterday, I looked at Steve Cohen's position in DE Shaw, and said to myself, 'These guys are going to replace management at TTWO. Maybe that's a reason to buy it.' That was a mistake. When I look at the core business, I don't know if there's anything there. I think I was too aggressive with TTWO ... I think Steve Cohen is a terrific guy. I totally respect his work. I think he might be wrong about TTWO.'Jefferies (NYSE: JEF - News): 'No, no. Missed the quarter. Missed the quarter.'Force Protection (NasdaqCM: FRPT) 'To tell you the truth, I'd rather be in CRDN.'
Published By SeekingAlpha

Labels: BAX, BCR, BMY, DF, EMR, GENZ, GILD, GS, HAL, JEF, Lightning Round, LOGI, MA, Mad Money, PDC, RGC, RIG, SKS, UNP, WLT

Mad Mergers: Sirius Satellite Radio (NasdaqGS: SIRI) and XM Radio (NasdaqGS: XMSR)
Cramer smells "desperation" in the intended merger between SIRI and XMSR, and predicts that there will be a spate of anticompetitive mergers ahead of the possibility of a Democrat winning the White House, an event which would discourage future monolopistic mergers. Cramer dedicated the program to discussing ten likely scenarios.
10. Kroger (NYSE: KR - News) and Safeway (NYSE: SWY - News)9. Laboratory Corp. (NYSE: LH - News) and Quest Diagnostics (NYSE: DGX - News): Cramer notes that these two companies have been "locked in a ferocious price war to win the HMO business." Their slashed prices have meant less profits, and "it is time for them to get on the anticompetitive bus."8. Carnival (NYSE: CCL - News) and Royal Carribbean (NYSE: RCL - News)7. Office Depot (NYSE: ODP - News) and Office Max (NYSE: OMX - News)6. Cardinal Health (NYSE: CAH - News) and McKesson (NYSE: MCK - News): Cramer notes that drug distributors have "been at war for wages" hurting themselves by lowering prices. He sees some major mergers in the sector for the next couple of years.5. BP (NYSE: BP - News) and Chevron (NYSE: CVX - News): BP would do well to merge with CVX, according to Cramer, because of CVX's excellent management.4. Lockheed Martin (NYSE: LMT - News) and Northrop Grunman (NYSE: NOC - News): Cramer notes that this merger is likely because the Pentagon doesn't want a lot of vendors.3. Comcast (NasdaqGS: CMCSA) and Time Warner (NYSE: TWX - News)2. Gannett (NYSE: GCI - News) and McClatchy (NYSE: MNI - News): Cramer believes that this merger is essential because it could "save the newspaper business."1. Union Pacific (NYSE: UNP - News) and Burlington Northern (NYSE: BNI - News): Cramer says that this is his favorite possible merger.
Cramer also sees Norfolk Southern (NYSE: NSC - News) and CSX (NYSE: CSX - News) pairing up, and describes all of these possibilities as "a wave of mergers that will be great for profits."

Labels: BNI, BP, CAH, CCL, CVX, DGX, Jim Cramer, KR, LH, LMT, Mad Money, MCK, ODP, OMX, RCL, SIRI, SWY, TWX, UNP, XMSR

Deere (NYSE: DE - News), Qwest (NYSE: Q - News), Norfolk Southern (NYSE: NSC - News), Caterpillar (NYSE: CAT - News), Safeway (NYSE: SWY - News), Union Pacific (NYSE: UNP - News) and CSX Corp (NYSE: CSX - News): Cramer listed DE, Q, NSC, CAT and SWY as underappreciated "buys", adding that he sees no reason why DE will stop at $113. He observes that rails are on a "gigantic tear," but notes that although NSC is "delivering its numbers" it is his least favorite railroad stock. He prefers UNP, says that rumors of its guiding down are "nonesense" and predicts that it will reach $125 from $103. He also likes CSX, which is raising its dividend and buying back stock. Concerning Safeway, Cramer likes its gift card business, which he says is worth around $7 billion.
Aetna (NYSE: AET - News), Eli Lilly (NYSE: LLY - News), United Health (NYSE: UNH - News), Laboratory Corp of America Holdings (NYSE: LH - News), Schering Plough (NYSE: SGP - News): Cramer comments that the entire healthcare sector is "exploding" because Warren Buffett took a stake in UNH, and LH reported strong numbers. He likes AET, but says "No" to big pharma, especially LLY. While Cramer is bullish on SGP, he would take a breather since it has gone from $17 to $24 "in a straight line."

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Labels: AET, CAT, CSX, DE, Jim Cramer, Jim Cramer's Stop Trading, LH, LLY, NSC, Q, SGP, SWY, UNH, UNP

Yahoo (NASDAQ: YHOO - News), Google (NASDAQ: GOOG - News), Sun Microsystems (NASDAQ: SUNW - News), AT & T (NYSE: T - News), Verizon (NYSE: VZ - News), Apple (NASDAQ: AAPL - News), Norfolk Southern (NYSE: NSC - News), Union Pacific (NYSE: UNP - News), Lennar (NYSE: LEN - News), Centex Corp (NYSE: CTX - News), Toll Brothers (NYSE: TOL - News), DR Horton (NYSE: DHI - News) and Pulte (NYSE: PHM - News)
Cramer described the "glass half full mode" in tech as the shorts were looking at options expiration last week. "We were confounded by the work off of the options hangover which then positioned tech to be too low and ready for a trade -- just a trade, but a trade is worth grabbing." He added that the fact that Yahoo is up even though the company "doesn't have a clue" will give hedge funds the impression that it will go up whether Yahoo is good or bad and will encourage the shorts to change their position. Cramer also noted that Google was up on Yahoo, and that SUNW is also up, but he doesn't think that the company is doing anything interesting. What Cramer does find interesting is AT & T's strategy, outlined in its conference call, to take customers away from Verizon wireless by offering free service for a 18 months to Apple's iPhone users. Cramer says that NSC's drop is a "false tell" because the company periodically messes up and then ramps. He predicts that UNP will reach $110 to $115 from a recent $97. The "infrastructure crumble" for trucks make the rails "superior to almost any other trend I've got." Cramer calls CTX a "bunch of idiots" because they, along with LEN, TOL, DR Horton and PHM were too bullish at the top. "None of these companies distinguished themselves as good businessmen," he said. "None of them turned out to be cautious." However, he likes the fact that these companies are not building more homes, and prefers being long land inventory than home inventory because land is selling.
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Labels: AAPL, CTX, DHI, GOOG, Jim Cramer, LEN, NSC, PHM, SUNW, T, TOL, UNP, VZ,