Jim Cramer Blog

LCA-Vision Inc. (NasdaqGS:LCAV - News) reported fourth-quarter earnings of $7.1 million, or 34 cents a share, up from a year-ago profit of $6.6 million, or 30 cents a share. Revenue jumped 26% in the latest three months to $58.8 million from $46.8 million a year ago. The Cincinnati-based provider of laser vision correction services also said it's increased its quarterly dividend by 50% to 18 cents a share from 12 cents. Looking ahead, LCA-Vision forecast earnings of $2.05 to $2.15 a share for 2007 on revenue growth of 20% to 25%.
Lions Gate (NYSE:LGF - News) reported third-quarter net earnings of $20.5 million, or 17 cents a share, compared with $3.14 million, or 3 cents a share, in the same period last year, driven by revenue from the company's "Saw III" and "Employee of the Month" films.
Loews Corp. (NYSE:LTR - News) reported consolidated net income of $746.5 million, or $1.11 a share, for the fourth quarter, up from a year-ago equivalent profit of $127.6 million, or 8 cents a share. This performance includes contributions from both Loews Group and Carolina Group, whose net income rose to $137.1 million, or $1.26 per Carolina Group share, in the quarter, from $81.6 million, or $1.11 a share, a year earlier. On a continuing operations basis, Loews earned $633.4 million, or $1.15 per share, in the latest quarter. Loews attributed its higher earnings to improved results at CNA Financial , its 89%-owned subsidiary, and Diamond Offshore Drilling , its 54%-owned subsidiary.
Municipal Mortgage & Equity LLC (NYSE:MMA - News) said it knows of no reason why recent trading in the stock has resulted in a decrease in price. Since Monday, shares of the real estate debt and equity financing concern have dropped almost 15%. MuniMae management noted that it is not engaged in sub-prime or any other single family mortgage lending activities, and that its outlook for the multifamily rental sector is positive.
Novelis was in focus after the company agreed to be acquired by Hindalco Industries Ltd. in a deal worth $6 billion, including debt assumption. The consideration values Novelis at $44.93 a share.
OmniVision (NasdaqGS:OVTI - News) unveiled a 5.17 megapixel auto-focus camera module for mobile handsets based on its OV5623 CameraChip sensor. The company also unveiled its TrueFocus camera with Wavefront Coding technology for the mobile handset market.
Onyx Pharmaceuticals (NasdaqGM:ONXX - News) soared after the company and Bayer (NYSE:BAY - News) said a Phase 3 trial of Nexavar to treat advanced liver cancer was closed early due to a positive outcome. Bayer and Onyx will stop the trial and allow all patients enrolled in this trial access to Nexavar. Given that there are limited approved systemic therapies for this disease, the companies will continue discussions with health authorities worldwide, including the U.S. Food and Drug Administration and European health authorities regarding the next steps in filing for approval for the treatment in advanced liver cancer. Nexavar is currently approved in nearly 50 countries, including the United States and in the European Union, for the treatment of patients with advanced kidney cancer.
Shares of Panera Bread Co. (NasdaqGS:PNRA - News) edged higher after Raymond James upgraded the bakery-café chain to strong buy from outperform, citing valuation. The company reported Friday fourth-quarter earnings that rose over year-earlier levels but fell shy of expectations, according to Thomson Financial, and provided an outlook that was slightly below forecasts. Analyst Bryan Elliott noted that the stock traded up most of the day before turning lower at the close. "We believe that that this reflects intermediate and longer-term capital that has been on the sideline waiting for 2007 guidance to be released," Elliott said in a research note. "We believe there is sufficient interest from this class of investor to keep Panera Bread under accumulation for at least the next several months."
R.H. Donnelly (NYSE:RHD - News) was upgraded to overweight from neutral at J.P. Morgan.
Smithfield Foods (NYSE:SFD - News) was upgraded to outperform from market perform at Wachovia Securities. The firm cited expectations about the benefits of recent acquisitions.
Southwest Airlines (NYSE:LUV - News) was upgraded to outperform at Bear Stearns.
Triple Crown Media Inc. (NasdaqGM:TCMI - News) said it swung to a fiscal second-quarter net profit of $418,000, or 8 cents a share. The company, which owns and operates local newspapers and runs a collegiate marketing business offering sports marketing services, reported a loss of $802,000 or 16 cents a share in the year-earlier quarter. Revenue for the quarter jumped to $48.1 million from $12.3 million, driven by the acquisition of the marketing business from Bull Run Corp.
Vodafone Group (NYSE:VOD - News) agreed to acquire Hutchison Telecom's (NYSE:HTX - News) 67% stake in Indian mobile operator Hutchison Essar for $11.1 billion and the assumption of $2 billion in debt.
WCI Communities (NYSE:WCI - News) said it's retained Goldman Sachs to assist it in identifying ways to increase shareholder value. The Bonita Springs, Fla. homebuilder said that it expects to generate $1 billion in free cash flow in 2007, and will look at asset sales to help reduce debt. Once the balance sheet is improved, the company will review strategic alternatives, including possible share repurchases are a sale of the company.
Witness Systems' (NasdaqGS:WITS - News) shares rallied after the company agreed to be acquired by Verint Systems (Other OTC:VRNT.PK - News), a unit of Comverse Technology (Other OTC:CMVT.PK - News), for $27.50 a share, or roughly $950 million.
Zoltek Cos. (NasdaqGM:ZOLT - News) shares rose after the St. Louis-based materials reported a fiscal first-quarter net loss of $5.66 million, or 23 cents a share. The quarter included a charge of $8.4 million related to convertible debt and warrant issuances. In the same quarter last year, the company posted net earnings of $6.29 million, or 3 cents a share. Revenue rose to $30.3 million from $15.6 million.
Published By Michael Baron of MarketWatch

Labels: BAY, CMVT, HTX, LCAV, LGF, LTR, LUV, MMA, ONXX, OVTI, PNRA, RHD, SFD, TCMI, VOD, VRNT, WCI, WITS, ZOLT

With the latest figures from the jobs report representing a sturdier than thought economy and a “just right” wage number, a March rate cut now appears less likely [fed funds futures @ 36%]. One place investors are sure not to get the coveted policy shift is in Tuesday’s FOMC meeting. It’s the last time in 2006 that economic watchdogs will be able to gather clues as how the Fed sees the economy. A statement that offers up the opinion of inflation remaining elevated or still a concern, but an expectation for lower prices as the manufactured slow down is proceeding as planned, is thought somewhat likely. If Tuesday’s FOMC doesn’t offer clarity, one way or the other, investors will have Friday’s CPI data to look forward too. That report will offer evidence as to whether inflation at the consumer level has afforded the spending public the opportunity to whip out the Capital One (COF), MasterCard (MA) or plunk down some cash worth less and less these days as evidenced by the deteriorating US Dollar. In general and sans the Fed offering a fresh message, the CPI report will have its work cut out for it. The last month has been full of mixed economic signals as to how strong or weak the manufactured slowdown is, so extra importance might be seen as being attached to that data. Black Gold (USO) pushed lower by -2.67% this past week, easing some concerns over pressure at the pump and heating up those McMansions. However, the commodity and its derivative contracts are just off two-month highs. As such, technical strength could quickly lead to fresh angst for investors. Potential catalysts and the focus of many traders include OPEC’s Thursday meeting [production cut expected], further escalations of civil unrest in Nigeria and any changes, for better or worse, for winter weather forecasts. This week offers up a light schedule of earnings names, but in the other ‘profit-engine’ of the financial sector, the Broker / Dealer ($XBD) group is well-represented. Goldie (GS), Lehman (LEH) and Bear (BSC) all report during the five day period. As a group that’s synonymous with being a market bellwether and those names all near All-Time-Highs, traders can expect those stocks to be in play this week. Monday Economic: Wholesale Inventories (.6%)Earnings: Analogic (ALOG), Verint (VRNT), Spartech (SEH), Source Interlink (SORC)TuesdayEconomic: Treasury Balance (-63.5B), FOMC Policy StatementEarnings: Goldman (GS), Best Buy (BBY), Martek (MATK), Cooper (COO), ADC Telco (ADCT)Wednesday Economic: Retail Sales / ex Auto (.2%, .3%), Business Inv (.5%), Weekly CrudeEarnings: Zoltek (ZOLT) ThursdayEconomic: Import / Export Prices, Weekly Claims (320K)Earnings: Beacon Roof (BECN), Bear Stearns (BSC), Lehman (LEH), Pier 1 (PIR), Winnebago (WGO) Adobe (ADBE), Quiksilver (ZQK), Tektronix (TEK), VistaCare (VSTA)Friday: Economic: CPI & Core (.2%, .2%), Empire State (20), Ind Prod & Cap Util (.2%, 82.2%)Earnings: N/A

Labels: ADBE, ALOG, BBY, BECN, BSC, COF, COO, GS, LEH, MA, MATK, PIR, SEH, TEK, USO, VRNT, VSTA, WGO, ZOLT, ZQK