Jim Cramer Blog

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.
NYMEX Holdings Dec 150 Calls (NYSE:NMX - News). NMX'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.
Google Dec 650 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 4.
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.
Amazon.com Nov 110 Calls (NasdaqGS:AMZN - News). AMZN's PowerRating (for Traders) is 6.
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.
CME Group Nov 200 Puts (NYSE:CME - News). CME's PowerRating (for Traders) is 6.
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.
Xilinx (NasdaqGS:XLNX - News). XLNX'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.
Rite Aid (NYSE:RAD - News). RAD'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.
WCI Communities (NYSE:WCI - News). WCI's PowerRating (for Traders) is 5.
Published By TradingMarkets.com

Labels: AMZN, CME, GOOG, NMX, RAD, stock options, WCI, XLNX

General Motors (GM): Hit with its first nationwide strike in 37 years, and the crew at Fast Money was focused on what it means to the market. Adami: has been consistently negative on GM and would rather own Ford (F). Macke agrees that GM is a sell, unless they take a huge hit on health care without giving job guarantees.
Online Ad Play: Microsoft (MSFT) made headlines today as rumors floated around Wall Street that the firm is planning on taking a 5% stake in Facebook.com. Kourosh Karimkhany, manager of wired digital at Conde Naste, sees Microsoft's play for Facebook as one for software development. Macke: time to get long MSFT. Najarian prefers ValueClick (VCLK) and Focus Media (FMCN). Tuesday will be a big day for Microsoft as they will release the hyped up Halo 3 game which is predicted to be the biggest selling game ever.Macke proposes investors play Halo 3 with trades in Gamestop (GME) and Activison (ATVI). He advises getting out of Sony (SNE).
Drug Trade: The UBS health care industry conference could help jump start some of the pharmaceutical and biotech stocks this week. Adami suggests Pfizer (PFE). Najarian: Myraid Genetics (MYGN) and Quest Diagnostics (DGX). Macke: Johnson & Johnson (JNJ).
Burning Down the House: The homebuilders sector was annihilated on Monday, as investors fear more bad news is on the way when the government reports existing home sales data Tuesday. Adami advises not to trade this sector unless you have to. Finerman: stay away from WCI Communities (WCI) and Hovnanian (HOV).
Chartology: Technical analysis expert Jeff DeGraaf was on the show. DeGraaf likes the technology sector right now and he thinks it will outperform in the coming months. He feels positive about tech because the sector was strong in the summer when it normally tends to trade down. DeGraaf looked at Fedex (FDX) and the chart isn't showing bullish trends. Adami: doesn't like FDX until it trades above $121 and DeGraaf agreed. DeGraaf: loves the pattern in gold and continues to be bullish longer term on the yellow metal. He would look to buy gold on pullbacks.
Word on the Street: Target (TGT) lowered same-store sales on Monday. SABMiller reported an 11% jump in beer volumes on Monday. Macke likes Molson Coors (TAP). Najarian likes BHP Billiton (BHP) and copper and gold producer Freeport McMoRan (FCX).
Alternative Energy: NRG Energy (NRG) submitted its first application for a new US nuclear reactor in 30 years. Najarian would play this news with (BHP) Billiton and Cameco (CCJ). Finerman: Flowserve (FLS) and Adami likes Fluor Corp (FLR). Macke would just play NRG Energy (NRG). Trina (TSL) traded higher 8% as solar stocks were active with a major solar conference started. Najarian likes TSL.
Pops & Drops
Pops- Crocs (CROX) traded up 9%. Adami thinks a big short was forced to cover on Monday. He would take profits on CROX.
NYSE Euronext (NYX) traded up 2% off a JP Morgan upgrade. Finerman continues to be long this stock and she feels it has more room to run higher.
Las Vegas Sands (LVS) traded up 7% off a Jeffries upgrade. Macke says time to get out.
PrimeWest Energy Trust (PWI) exploded 32% on news that Abu Dhabi National Energy Co. bought them out. Finerman hopes we keep seeing deals like this.
EMC Corporation (EMC) traded up 8% after Citigroup and Bear Stearns upgraded the name. Adami still likes it.
Drops- AMR Corp (AMR) fell 14% after revenue forecasts missed Wall Street expectations. This drop took down all the airline companies for the day.
Harman (HAR) dropped 6% after the company said profits would miss Wall Street expectations. Finerman wouldn't touch it.
Adtran (ADTN) plunged 14% after the telecom company warned on 3rd quarter earnings and revenue. Macke suggests avoiding these guys on the telecom side.
Final Trade:
Finerman: likes NYMEX (NMX)
Najarian: ValueClick (VCLK).
Adami: Pfizer (PFE) for its cheap valuation.
Macke: Short Dow30 ProShares (DOG).

Labels: ATVI, CNBC, CROX, DGX, EMC, Fast Money, FDX, FMCN, GM, GME, HOV, JNJ, MSFT, MYGN, NYX, pfe, SNE, VCLK, WCI

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Analog Devices (NYSE:ADI - News) beat earnings expectations on Tuesday afternoon, announcing $0.37 EPS over an expected $0.36 EPS. ADI's PowerRating (for Traders) is 5.

Medtronic (NYSE:MDT - News) matched earnings after the bell on Tuesday with $0.62 EPS. MDT's PowerRating (for Traders) is 5.
Eaton Vance (NYSE:EV - News) reports earnings on Wednesday before the market opens; look for $0.42 EPS. EV's PowerRating (for Traders) is 6.
Frontline (NYSE:FRO - News) should announce $1.08 EPS before the bell on Wednesday. FRO's PowerRating (for Traders) is 5.
When Regis (NYSE:RGS - News) reports quarterly earnings on Wednesday morning, watch for $0.57 EPS. RGS's PowerRating (for Traders) is 4.
Toll Brothers (NYSE:TOL - News) should report $0.05 EPS on Wednesday morning before the market opens. TOL's PowerRating (for Traders) is 5.
WCI Communities (NYSE:WCI - News) is expected to announce -$1.13 EPS Wednesday morning. WCI's PowerRating (for Traders) is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADI, EV, FRO, Hot Stocks, MDT, RGS, TOL, WCI

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Dean Foods (NYSE:DF) & WCI Communities (NYSE:WCI). DF's PowerRating is 7, and WCI's PowerRating is 8.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Google (NasdaqGS:GOOG). GOOG's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Activision (NasdaqGS:ATVI) & Genesco (NYSE:GCO). ATVI's PowerRating is 7, and GCO's PowerRating is 9.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Constellation Brands (NYSE:STZ). STZ's PowerRating is 2.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Robert Half International (NYSE:RHI). RHI's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: ATVI, DF, GCO, GOOG, Hot Stocks, RHI, STZ, WCI

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

American Woodmark Corp.'s (NasdaqGS:AMWD - News) fiscal third quarter profit fell sharply on a big decline in new construction sales, the company said Tuesday. American Woodmark earned $3.8 million, or 24 cents a share - down from $6.1 million, or 37 cents in the year-ago period. The most recent figure includes a 7-cent a share hit for stock option expensing. Revenue came in at $161.2 million, a decline of 16%. The average estimate of analysts polled by Thomson Financial had been for the company to earn 38 cents a share on revenue of $174 million. Looking ahead, the company said it expects sales of its core products to slip a total of 7% to 9% in the second half of its fiscal year.
BioMarin Pharmaceutical (NasdaqGM:BMRN - News) shares dropped after the Novato, Calif.-based company reported a fourth-quarter net loss of $10.4 million, or 11 cents a share, vs. a net loss of $15 million or 20 cents a share, last year. Revenue rose to $22 million from $9.47 million. The company forecast a 2007 net loss of $20 million to $25 million. BioMarin also forecast 2007 sales of Naglazyme in a range of $74 million to $78 million and joint venture sales of Aldurazyme in a range of $115 million to $125 million. Separately, BioMarin announced results from its Phase IIa study of 6R-BH4 in patients with poorly controlled hypertension. The study showed there was no statistically significant or clinically meaningful effect of 6R-BH4 on any efficacy or safety parameter measured, relative to placebo.
Build-A-Bear Workshop (NYSE:BBW - News) said fourth-quarter earnings rose 46% to $15.4 million, or 75 cents a share, from $10.6 million, or 52 cents a share, a year earlier, helped by increased sales, its U.K. acquisition and an adjustment to its loyalty program. The St. Louis-based retailer of customized stuffed animals said revenue rose 21% to $143.3 million from $118 million in the year-ago period. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of 73 cents a share on revenue of $152.7 million. Build-A-Bear expects first-quarter earnings of 35 to 41 cents a share with revenue growth of 22%.
CBRL Group (NasdaqGS:CBRL - News) reported fiscal second-quarter earnings of $102.5 million, or $2.88 a share, up from a year-ago profit of $30.8 million, or 61 cents a share. On a continuing operations basis, the Lebanon, Tenn., restaurant operator earned $20.5 million, or 60 cents a share, in the latest quarter. The company closed on the sale of its Logan's Roadhouse unit on Dec. 6. Total revenue rose 4% in the latest three months to $612.1 million from $586.7 million a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 69 cents a share in the quarter. Looking ahead, CBRL said it expects fiscal 2007 revenue to increase 6.5% to 7.5% from the total from continuing operations for 2006. It anticipates full-year same-store sales will be up between 5% and 6%.
Goldcorp Inc., (NYSE:GG - News) agreed to sell its Peak mine in Australia and its Amapari mine in Brazil to GPJ Ventures Ltd. In a statement, Goldcorp said it will receive $200 million cash and $100 million of stock for the mines. The company expects to record charges totaling $170 million from the sales in 2007.
Home Depot Inc. (NYSE:HD - News) reported earnings of 46 cents a share for the fourth quarter ended Jan. 28, down from 60 cents in the year-earlier period. On an adjusted basis, the Atlanta home-improvement retailer and Dow Jones Industrial Average component earned 50 cents a share. Sales rose 4% to nearly $20.27 billion, but comparable-store sales fell 6.6%. Analysts were looking for earnings of 50 cents a share on revenue of $20.8 billion, according to estimates compiled by Thomson Financial.
JetBlue (NasdaqGS:JBLU - News) was downgraded to equal-weight from overweight at Morgan Stanley. The company also unveiled a "Customer of Bill of Rights" after experiencing a number of service problems in the wake of last week's snowstorm in the New York City area.
Kraft Foods' (NYSE:KFT - News) shares slipped after the company said a new strategy aimed at returning the company "to predictable and consistent growth" would take its toll on short-term profits. Restructuring and reinvestment costs tied to the program, along with a higher tax rate and the impact of divestitures, mean Kraft now expects to earn $1.50 to $1.75 a share for all of 2007, or $1.75 to $1.80 excluding restructuring charges. The current average estimate of analysts polled by Thomson Financial is for the company to earn $1.92 a share this year. Further out, in 2008, the company said it expects revenue to grow 3% to 4% on an organic basis, and "by 2009, we'll hit our stride," said chief executive Irene Rosenfeld in a written release.
Power-One (NasdaqGM:PWER - News) said Chief Financial Officer Paul Ross plans to resign. The maker of power-conversion products named Jeffrey Kyle to succeed Ross.
United Natural Foods (NasdaqGS:UNFI - News) said net income rose to $11 million, or 25 cents a share, from $10.6 million, or 25 cents a share. Net sales rose to $668.5 million from $601.1 million. Analysts, on average, expected it to earn 30 cents a share on revenue of $683 million, according to Thomson Financial. The natural foods distributor said it is expanding its operations in the Pacific Northwest and is building a distribution center in Ridgefield, WA. The new facility will create approximately 100 jobs upon opening.
WCI Communities Inc. (NYSE:WCI - News) Chairman Don Ackerman said Carl Icahn's plans to run his own slate of candidates for the WCI Board "would be highly disruptive to our company and not in the best interests of all our shareholders."
Westlake Chemical Corp. (NYSE:WLK - News) said its fourth-quarter net profit slipped to $14.4 million, or 22 cents a share, from $73.6 million, or $1.13 a share, due to lower selling prices, reduced volumes and the unscheduled closure of one of its ethylene plants. Net sales for the quarter fell to $523.9 million from $636.4 million. Analysts polled by Thomson Financial had been expecting earnings of 35 cents a share on revenue of $548 million. Westlake said maintenance costs were significantly higher than expected due to the plant outage, but it was able to use the downtime to upgrade facilities, which should cut energy costs and increases capacity at the plant.
West Pharmaceutical Services Inc.'s (NYSE:WST - News) fourth-quarter earnings rose to $15 million, or 44 cents a share, from $12.5 million, or 38 cents, a year earlier, as increased sales offset rising costs. Earnings from continuing operations were 43 cents a share. Analysts polled by Thomson Financial, on average, expected earnings of 43 cents a share. The Lionville, Pa., maker of closure systems and syringe components said net sales climbed to $231.9 million from $195.6 million in the year-earlier quarter. The company sees 2007 earnings of $2.20 to $2.35 a share on sales of $1 billion, saying that investments in capacity expansion will constrain bottom-line growth in the near term.
Winn-Dixie Stores (NasdaqGM:WINN - News) reported its results for the sixteen weeks ended Jan. 10, posting a profit of $286.8 million, compared to earnings of $237.5 million in the same period a year earlier. The latest results include a gain of $188.2 million related to the discharge of liabilities associated with the company's emergence from bankruptcy protection in November, and a gain of $144.8 million from the revaluation of its assets and liabilities as part of fresh-start reporting. The Jacksonville, Fla., supermarket operator didn't provide per share figures. Net sales for what the company termed its fiscal second quarter slipped to $2.23 billion from $2.25 billion last year. Winn-Dixie said its identical store sales fell 0.5% for the 16-week period. "We are pleased to have emerged from bankruptcy with virtually no debt and substantial borrowing capacity under our new Credit Facility," said Peter Lynch, the company's president, chairman and CEO. "We are confident we have the liquidity we need to fund both our current business operations and our planned capital expenditure program."
Published By MarketWatch

Labels: AMWD, BBW, BMRN, CBRL, GG, HD, JBLU, KFT, PWER, UNFI, WCI, WINN, WLK, WST

Abercrombie & Fitch Co. (NYSE:ANF - News) said a special litigation committee established by the board found that there is no evidence to support claims asserted in certain derivative lawsuits brought against current and former directors and management, including Chairman and Chief Executive Michael Jeffries.
AMB Property Corp. (NYSE:AMB - News) said its board has raised the quarterly cash dividend 8.7% to 50 cents per share. The dividend is payable April 16 to shareholders as of April 6.
Bare Escentuals Inc. (NasdaqGS:BARE - News) filed with the Securities and Exchange Commission to offer 12 million shares. The beauty products company said it's offering 575,000 of the shares, while selling stockholders are offering an additional 11.4 million shares.
Gilead Sciences Inc. (NasdaqGS:GILD - News) said the Food and Drug Administration has granted priority review status to its new drug application for ambrisentan, a treatment for pulmonary arterial hypertension.
Harley-Davidson Motor Co. (NYSE:HOG - News) said it has reached a tentative labor agreement with representatives of the International Association of Machinists and Aerospace Workers Local 175 in York, Pa. The motorcycle manufacturer said the agreement is subject to membership ratification, adding that it expects members to vote the week of Feb. 19. If approved, the agreement would end a strike by 2,800 unionized employees in York that began Feb. 2.
K2 Inc. (NYSE:KTO - News) said it has named J. Wayne Merck president, chief executive, and board member. The provider of sporting and recreational products said Merck, who has been president and chief operating officer since November of 2003, succeeds Richard Heckmann as CEO.
Krispy Kreme Doughnuts Inc. (NYSE:KKD - News) said it has closed a new senior secured credit facility of $160 million, made up of a $50 million revolving credit facility and a $110 million term loan. The doughnut retailer said proceeds of the term loan were used to repay about $107 million outstanding balance under the company's prior credit facility, and to pay fees and expenses related to the new financing and the retirement of the prior facility.
Power-One Inc. (NasdaqGM:PWER - News) said Chief Financial Officer Paul Ross plans to resign to accept another position. The maker of power conversion products named Jeffrey Kyle to succeed Ross as CFO.
Scotts Miracle-Gro Co. (NYSE:SMG - News) said its board has declared a one-time cash dividend of $8 per share. The dividend is payable March 5 to shareholders as of Feb. 26.
Don Ackerman, chairman of WCI Communities Inc. (NYSE:WCI - News), said Carl Icahn's plans to run his own slate of candidates for the WCI Board "would be highly disruptive to our company and not in the best interests of all our shareholders."
Xerox (NYSE:XRX - News) said it expects 2007 operating cash flows to fall to a range of $1.2 billion to $1.5 billion from $1.6 billion last year. The forecast confirms an estimate for cash flows made at an investor meeting in November.
Published By MarketWatch

Labels: AMB, ANF, BARE, GILD, HOG, KKD, KTO, PWER, SMG, WCI, XRX

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

Motorola Inc. (NYSE:MOT - News) said on Tuesday that billionaire investor Carl Icahn will seek a seat on the board and has taken a 1.4 percent stake in the company, pushing the cell phone maker's shares up more than 6 percent. Icahn is known for pressuring management to improve performance in companies he holds. His presence on Motorola's board could prompt more aggressive measures from the No. 2 mobile phone maker to contend with flagging profits and operating margins, analysts said. "Just given (Icahn's) background, people could see that as a catalyst," said Piper Jaffray analyst Michael Walkley. "A lot of people believe Motorola has a lot of value that could be unlocked." Motorola said it received a notice of nomination from Icahn entities owning about 33.529 million shares of the company's outstanding stock. The company said it had no additional information on Icahn's intentions and it was reviewing the notice. Motorola has not set a date for its 2007 shareholders meeting. Officials at Icahn's office were not immediately available. "I think any time you can bring someone like that onto the board, it's going to be a win for Motorola," said Shawn Campbell, principal in Campbell Asset Management of Chicago, which owns Motorola shares. "Certainly Carl Icahn is somebody who's going to mix it up." Pressure on Motorola Chief Executive Ed Zander has grown as the company reported earlier this month a sharp drop in profit due to price cuts for its flagship Razr phone and tough competition in emerging markets. Motorola said it plans to cut 3,500 jobs in a bid to restore operating margins to double-digit percentage levels. But investors are looking for the company to produce a revenue-boosting successor to the Razr and fend off its larger rival Nokia (Helsinki:NOK1V.HE - News).
RIPE FOR CHANGE
If Icahn makes in onto the board, he would likely try to work with Zander and management, rather than against them, to push for change, analysts said. But some see Motorola as ripe for a structural shake-up. "If you break up the company, it's worth an awful lot more than it's trading right now," said JP Morgan's Ehud Gelblum, who rates the share at "overweight."
In a recent note to clients, Gelblum said the share was highly attractive from "a private equity/sum-of-parts/break-up point of view," even though there was no evidence its management was pursuing any of those strategies. Motorola shares have slipped 26 percent off their most recent high of $26.30 in mid-October, just before it reported third-quarter revenue that missed Wall Street forecasts. That compares with a 4.5 percent rise on the Standard & Poor's 500 Index in the same period. The Icahn news will likely boost Motorola shares in the near term as investors wait for his next move, analysts said. "It doesn't always necessarily end up being change, but investors always wonder what kind of change he's going to force," said Prudential Equity analyst Inder Singh. In recent months, Icahn has put a spotlight on such companies as home builder WCI Communities Inc. (NYSE:WCI - News), where he increased his holdings, and building materials maker Temple-Inland Inc. (NYSE:TIN - News), saying he may urge management to divest one or more businesses there. Last year, Icahn led a call for a breakup of media conglomerate Time Warner Inc. (NYSE:TWX - News) to wrest more returns for shareholders. While the company remained intact, it sped up existing strategic plans and instituted a $20 billion share buyback. Motorola shares gained $1.18 to $19.49 on the New York Stock Exchange.
Published by Michele Gershberg

Labels: Carl Icahn, MOT, NOK, TIN, TWX, WCI

Lear (NYSE: LEA - News), Time Warner (NYSE: TWX - News), WCI Communications (NYSE: WCI - News), Lennar (NYSE: LEN - News)
Cramer says that it is a good idea to piggyback off of financial wizards such as Carl Icahn who made good calls with Lear and TWX and is currently buying WCI. However, he stressed that it is important to understand why Icahn likes this upscale homebuilder which owns 86% of its properties. Cramer notes that WCI is sitting on a pile of real estate, is selling at below book value, and predicts that the stock will eventually be more valuable than the properties. While some are worried about Florida real estate, Cramer observes that Lennar recently made a successful Florida investment. An important rule in piggybacking, says Cramer, is to wait for the hype to pass before investing; Icahn bought WCI when it was four points lower, andit is now nearly $22.

Genentech (NYSE: DNA - News)
After enjoying a successful year, DNA is lower than it has been in the last 14 months, and Cramer attributes this to the market's subjectivity, especially since the company was expected to see 30% growth and it actually reported 70% growth. Cramer explained that the factors affecting the movement of a stock are its earnings and its multiple. Since DNA reported strong earnings, its multiple, or what people are willing to pay for the earnings, must have been a factor in its decline. A multiple is affected by three kinds of risk: political, earnings and inflation. Cramer eliminated earnings risks from the equation, said that inflationary risks affect future earnings and have peaked, and that worries about the Democrats hurting DNA have abated. Cramer concluded that DNA is heading back up to where it was 14 months ago, called it a best-of-breed biotech stock with a great pipeline. His conservative estimate is that DNA will go to $104 from $87.53 and his bullish figure is $140.

Sell Block:Guess? (NYSE: GES - News), XM Satellite Radio (NASDAQ: XMSR - News), Interpublic Group of Companies (NYSE: IPG - News), Deere (NYSE: DE - News)
Cramer would sell Guess after it rose 38.7% since his initial recommendation. He would get rid of XMSR because it has "run out of steam." Although IPG may have some upside, Cramer would take profits and sell it. He has liked DE for a long time, but Cramer says that it is time to say goodbye. Although it might go up an other 8 points, Cramer says that this $100 stock has given its investors substantial profits.Mad Mail: Apple (NASDAQ: AAPL - News)
Cramer disagrees with an Investors' Business Daily bullish call on tech; "I like IBD very much but think they are wrong here," he said. When asked who is selling Apple, Cramer says that the shorts are putting pressure on the stock, adding that it should not have risen 8 points on the release of iPhone and its negative guidance may be bringing it down. However, he would build a position on the stock as it declines.

Pubished By SeekingAlpha

Labels: AAPL, DE, DNA, GES, IPG, Jim Cramer, LEA, LEN, Mad Money, TWX, WCI, XMSR

Monro Muffler Brake Inc. (NASDAQ:MNRO - News) said third-quarter net income for the three months ended Dec. 23 rose 20% to $4.9 million or 32 cents a share, from $4.1 million, or 27 cents a share in the year-ago period. Analysts surveyed by Thomson First Call forecast earnings of 32 cents a share, on average. Sales grew 15% to $103.8 million, a record. Looking ahead, the Rochester, N.Y. retailer expects fourth-quarter earnings of 37-40 cents a share, compared to the First Call estimate of 40 cents a share.
NCR Corp. (NYSE:NCR - News) expects fourth-quarter per-share earnings of 91 cents or higher. The average earnings estimate of five analysts surveyed by Thomson First Call is 80 cents a share. NCR, of Dayton, Ohio, said it expects fourth-quarter revenue of more than $1.8 billion. The company also forecast 2006 per-share earnings at $2.04 or higher, before adjustments. The average estimate of analysts is $1.97 a share. NCR expects 2007 earnings of $2.40 to $2.50 a share. The 2007 average earnings estimate of analysts is $2.46 a share.
Netflix (NASDAQ:NFLX - News) shares rose after the company unveiled a feature allowing subscribers to immediately watch movies and television series on their computers. The company plans to make the option available to subscribers in a phased roll-out over the next six months.
Nokia (NYSE:NOK - News) was upgraded to buy from sell at Goldman Sachs. The firm said it believes a perfect storm of negative news, including a profit warning at U.S. rival Motorola and the launch of Apple's iPhone, has coincided with the bottom of Nokia's profit cycle, driving the stock's 17% underperformance relative to the FTSE Europe since July. The broker, however, said it expects the stock to rebound from there, especially after the Finnish company posts quarterly results next week. "We have high confidence that Nokia will post solid fourth-quarter earnings of 0.27 euro a share, allowing 2007 EPS to bottom, while new products should drive a recovery in sentiment as well as average selling prices and gross margins during the first half of 2007," the firm said.
PerkinElmer Inc. (NYSE:PKI - News) was upgraded to buy from neutral at UBS. The firm also lifted its price target on the stock to $27 from $23.
Phoenix Technologies Ltd. (NASDAQ:PTEC - News) was in focus after Ramius Capital Group's Admiral Advisors unit Tuesday disclosed a revised bid to acquire the company for $5.25 per share in cash. The firm, which is Phoenix's largest shareholder, said its non-binding offer isn't subject to financing but does carry other conditions, including completion of due diligence.
PW Eagle (NASDAQ:PWEI - News) agreed to be acquired by J.M. Manufacturing for $400 million, or $33.50 per share in cash. PW Eagle in May announced it was considering strategic alternatives. The pipe maker's stock closed at $29.86 on Friday.
Retalix Ltd. (NASDAQ:RTLX - News) affirmed its estimate that fourth-quarter net income would come in at more than $1.6 million, adjusted net would exceed $4 million, and revenue would exceed $54 million. The adjusted-profit figure excludes equity-based compensation costs of $1.7 million and acquisition-related amortization of $700,000, after taxes, Retalix said in a statement.
Sirius Satellite (NASDAQ:SIRI - News) was upgraded to overweight from neutral at J.P. Morgan. The firm made the same call on XM Satellite Holdings (NASDAQ:XMSR - News). J.P. Morgan said it is now assuming that growth rates for the companies have peaked, but even with cautious growth assumptions, the broker said it sees Sirius having more than 15 million subscribers by 2010 and XM having more than 14 million subscribers. These subscription levels will be largely due to deals with automakers to get satellite radio preinstalled in new cars. "We see potential upside as the momentum in the industry appears to be towards making satellite radio a standard feature, which is not yet included in our models," J.P. Morgan said. It added there is also the possibility that the two companies could attempt a merger in 2007, though regulatory approval would not be certain. XM, for its part, was also downgraded to neutral at Banc of America Securities.
Smith & Wollensky Restaurant Group (NASDAQ:SWRG - News) shares soared after Landry's Restaurants (NYSE:LNY - News) offered to acquire the company for $7.50 per share. Landry's noted this consideration represents roughly a 50% premium to Friday's close for Smith & Wollensky shares at $5.03 each. "We believe that a combination of the two companies would be in the best interest of the stockholders of both companies," said Tilman Fertitta, Landry's chairman, president and CEO, in a statement.
Taleo Corp. (NASDAQ:TLEO - News) was upgraded to overweight from neutral at J.P. Morgan.
TD Ameritrade (NASDAQ:AMTD - News) said its first quarter net income rose to $145.6 million, or 24 cents a share from $86 million, or 21 cents a share a year ago. In the latest quarter, there were 612.8 million average shares outstanding, compared to 417.1 million shares a year ago. Net income in the latest quarter included a gain of $614,000 from the sale of investments. Net revenues in the first quarter rose to $535.2 million, compared to $277.3 million a year ago. Analysts polled by Thomson First Call had, on average, expected the company to earn 22 cents a share on revenue of $517 million. The company also reaffirmed the $1.10 a share midpoint in its estimated outlook for earnings for fiscal 2007.
USI Holdings Corp. (NASDAQ:USIH - News) agreed to be acquired by GS Capital Partners, a private equity affiliate of Goldman Sachs (NYSE:GS - News) for $17 per share. The transaction is valued at roughly $1.4 billion, including debt repayment. The $17 per share consideration represents a 20.5% premium to the average closing price for USI's common shares during the 30 calendar days prior to Oct. 24.
WCI Communities (NYSE:WCI - News) shares rallied after billionaire financier Carl Icahn said in a regulatory filing that he's increased his stake in the company, and has accumulated about 14.6% of the company's outstanding shares. Icahn said he plans to contact the company to get its views "on how to unlock the inherent value of the shares."
XTL Biopharmaceuticals Ltd. (NASDAQ:XTLB - News) shares rose after the company said its subsidiary has signed an agreement with Dov Pharmaceutical Inc. (Other OTC:DOVP.PK - News) to in-license the worldwide rights for Bicifadine for the treatment of neuropathic pain. Under the terms of the deal, XTL will make an up-front payment of $7.5 million in cash, in addition to milestone payments of up to $126.5 million in cash and/or ordinary shares over the life of the license. XTL said it must also pay royalties on sales of the product.
Zevex International (NASDAQ:ZVXI - News) agreed to be acquired by Moog (AMEX:MOG.TO - News) for $13 per share for a maximum purchase of $83.8 million. Following the merger, expected to close in March, Zevex will become a part of Moog's Medical Devices Segment.

Labels: AMTD, GS, LNY, MNRO, NCR, NFLX, NOK, PKI, PTEC, PWEI, RTLX, SIRI, SWRG, TLEO, USIH, WCI, XMSR, XTLB, ZVXI

The investment firm of billionaire Carl Icahn on Tuesday disclosed new holdings in Hilton Hotels Corp., medical device maker Cyberonics Inc. and homebuilder WCI Communities Inc., sending the shares of the last two up strongly.
Shares of WCI Communities closed up $1.99, or 12.6 percent, at $17.80 on the New York Stock Exchange, while shares of Cyberonics rose $3.61, or 20 percent, to $21.34 on the Nasdaq Stock Market.
Hilton Hotels shares rose 6 cents to $30.91 on the NYSE.
In a report for the quarter ended Sept. 30, Icahn Management LP also reported eliminating holdings in offshore-drilling contractor Transocean Inc., warehouse club operator BJ's Wholesale Club Inc. and BKF Capital Group Inc., a provider of investment advisory and asset management services.
Stakes were also eliminated in exploration company Cimarex Energy Co., Symantec Corp., which makes the Norton line of antivirus software, Pioneer Natural Resources Co. and homebuilder Ryland Group Inc.
The firm also reported increasing its Time Warner Inc. stake to 55 million shares as of Sept. 30 from 49.6 million shares as of June 30.
Separately, Carl Icahn, as an individual, reported increasing his stake in Time Warner to 13.65 million shares as of Sept. 30, from 12.3 million shares in the prior quarter.
Institutional investors that hold more than $100 million worth of stock in public companies are required to disclose their stockholdings at the end of each quarter in filings with the Securities and Exchange Commission.
On Tuesday, Icahn Management also reported increasing its stake in Lear Corp. to 2.6 million shares from 2.5 million, and in Take-Two Interactive Software Inc. to 2.9 million shares from 800,000 shares.
The firm reported cutting its stake in Gencorp Inc., a manufacturer of aerospace and defense products and systems, to 987,120 shares in the latest quarter from 2.16 million, and in Tronox Inc., a maker of titanium dioxide pigment and electrolytic products, to 176,976 Class B common shares from 699,741 Class B shares.
Icahn Management's filing also showed holdings in Realogy Corp. of 4.5 million shares and Wyndham Worldwide Corp. of 2.2 million shares. Both companies spun off from Cendant Corp. on Aug. 1.
At June 30, the firm reported holding 6.1 million shares of Cendant.
Icahn Management's stake in Federated Department Stores Inc. at Sept. 30 was unchanged at 2.01 million shares.
As reported, Federated announced late in September that Icahn intended to file for antitrust clearance to raise his stake by as much as $500 million, which would add roughly 11.9 million shares to Icahn's holding.
-AP

Labels: Carl Icahn, Cyberonics, CYBX, D.R. Horton Inc., GY, Hilton Hotels Corp., SYMC, TTWO, TWX, WCI, WCI Communities