Jim Cramer Blog

Cramer started off by saying that it's important to buy stocks that will bounce back the hardest.
CBRL Group (CBRL): operator of the iconic Cracker Barrel restaurant chain. Cramer believes that the company is in a good position after revamping their menus and buying back a ton of stock. They had the biggest buyback in percentage of shares outstanding of any company at 54% over the past year. Cramer is crazy about the buyback.
He then took a couple of calls: One caller asked about Brinker International (EAT), which Cramer doesn't like at all. Another caller asked about Wendy's (WEN) and Cramer said don't even look at Wendy's. He suggested that he get in McDonald's (MCD) instead because it is best of breed.
Yesterday, Cramer discussed how Best Buy is leveraging their growth by expanding international. Tuesday he discussed Textron Inc. (TXT). He feels that its Cessna unit will have large worldwide demand in the upcoming years. Honeywell (HON), a company that has been very successful at forecasting the aircraft business, predicts record sales of business jets, Cessna's "bread and butter." Cramer said the rest of the world will soon surpass America in business jet sales, which makes Textron a solid business-jet play.
Before Cramer started the Lightning Round, he recommended that holders of Baidu.com (BIDU) and Focus Media (FMCN) take some profits off the table. The holders of these stocks should sell half their holdings.
In the next segment, Cramer talked about a defense stock that was booted from the NYSE, but will profit from the new defense budget. The stock is Navistar (NAVZ.PK). Cramer also likes Cummins (CMI) and PACCAR (PCAR) in this sector, but Navistar has a lower multiple.
Next, Cramer had John Dioniso, the CEO of AECOM (ACM) on the phone. Cramer has been recommending the stock, and the company has been delivering profits so far. In his opinion, Cramer thinks Aecom is "money in the bank."
Sudden Death:
Brookfield Asset Management (BAM): "Keep buying!"
Spartan Motors (SPAR): No, buy Navistar (NAVZ.PK) instead.

Labels: ACM, BIDU, CBRL, CMI, EAT, FMCN, HON, Jim Cramer, Mad Money, Mad MOney Recap, MCD, NAVZ.PK, PCAR, TXT, WEN

The Fed's 50 point cut on Tuesday sparked the stock market, and CNBC's "Fast Money" discussed why the bulls are running, and what it means for financial stocks:
Najarian: Tuesday's actions all about the financials. Financial Select Sector SPDR, ton of volume in call options.
Macke: Can't be short financials now.
Adami: continues to like financials; Lehman Brothers(LEH), Goldman Sachs (GS) and Morgan Stanley (MS)
All Clear on Wall Street? CNBC's Charlie Gasparino discussed whether brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns (BSC)--lease diversed and tied to credit markets.
OIL: Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Author Dennis Gartman: Shocked by feds decision. Thinks stock market will continue to climb.
Housing Market: Adami: housing stocks are back for a trade. He likes Hovanian, (HOV), Toll Brothers (TOL) and Pulte Homes (PHM)
Finerman: Still likes Home Depot(HD), which she owns for its cheap valuation.
Word on the Street: Cummings (CMI) and Caterpillar (CAT) exploded higher on the Fed cut. Najarian: Thinks CAT has much more upside to come.
Global: China and Brazil's markets soared on the rate cuts. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and Brazil ETF (EWZ)
Face 2 Face:
Viewer writes: "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.
Viewer writes: "Should I sell my October $195 call options on Goldman Sachs (GS) now or is there still more upside?" Najarian- feels strong about GS, but you should take half the position off before earnings.
Viewer writes: "What is your outlook for Tiffany's (TIF) as the holiday season approaches?" Macke is positive about Tiffany's and Blue Nile (NILE)
Pops & Drops:
Pops: Macke-Caterpillar (CAT), Finerman-Target (TGT), Adami-Alcoa (AA)-could be bought out by Najarian's pick-Billiton (BHP), and Finerman-Wendy's (WEN)
Drops: Najarian-E*Trade (ETFC), Macke-Hovnanian(DOG), Adami-Boeing(BA)
Final Trade:
Macke- Macy's (M)
Finerman- Altria (MO)
Adami- Nucor (NUE)
Najarian- Companhia Vale do Rio Doce (RIO)

Labels: BHP, BSC, CAT, CMI, CNBC, ETFC, EWZ, Fast Money, GS, HD, HOV, LEH, MS, NILE, PHM, SPDR, TGT, TIF, TOL, WEN

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
3M (NYSE:MMM - News) is expected to report $1.18 EPS before the bell rings on Thursday morning. MMM's PowerRating is 6.
When Aetna (NYSE:AET - News) announces quarterly earnings on Thursday morning, watch for $0.80 EPS. AET's PowerRating is 5.
Beazer Homes (NYSE:BZH - News) should announce -$0.46 EPS before the market opens on Thursday morning. BZH's PowerRating is 7.
Analysts will be watching for Exxon Mobil (NYSE:XOM - News) to report $1.94 EPS on Thursday. XOM's PowerRating is 5.
Ford (NYSE:F - News) hopes to announce -$0.40 EPS tomorrow morning. F's PowerRating is 5.
Wendy's (NYSE:WEN - News) and XM Satellite (NasdaqGS:XMSR - News) both report on Thursday morning; WEN is looking for $0.33 EPS and XMSR expects -$0.44 EPS. WEN's PowerRating is 6, and XMSR's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AET, BZH, F, Hot Stocks, MMM, WEN, XMSR, XOM

The major averages all rose for the second-straight day to open the third quarter on this holiday-shortened trading day on news of more buyouts as well as upbeat economic data. On the economic front today, U.S. factory orders fell -0.5% in May. The Commerce Department said that orders placed with American companies fell less than forecast as demand for computers, electronics, and fuel helped offset a decline in aircraft bookings.
Over in the housing market, a private report on pending home sales concluded that home buyers unexpectedly signed fewer contracts in May as buyers waited for home prices to drop. The index that measures signed purchase agreements fell -3.5% to 97.7%, down from 101.2% in April.
In merger-related news, Kraft Foods (NYSE: KFT) agreed to buy the biscuit unit of Groupe Danone SA for $7.2 billion. The deal will give Kraft the TUC and Petit Ecolier brands, and will also give the company a major foothold in European markets. Teck Cominco (NYSE: TCK), the worlds second-largest zinc producer, meanwhile, agreed to buy Aur Resources for $3.79 billion. The cash and stock deal will increase output by 43% for the combined company.
Shares of the third-largest U.S. hamburger chain rose 2.7% on the day after billionaire Nelson Peltz said he is interested in bidding for Wendy's International (NYSE: WEN). Peltz's Triarc Investment, which already owns and operates the Arby's fast-food chain, said the Wendy's brand would be a natural fit. The billionaire also noted that he increased his stake in the fast-food operator to 9.8% from a previous stake of 8.4%.
By the BullMarket.com Staff

Labels: KFT, TCK, WEN

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. Historically, these stocks have provided traders with a significant edge.

Adobe Systems (NasdaqGS:ADBE) & Clear Channel Communications (NYSE:CCU). ADBE's PowerRating is 6, and CCU's PowerRating is 6.
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.
King Pharmaceuticals (NYSE:KG) & Ultra Petroleum (NYSE:UPL). KG's PowerRating is 6, and UPL'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.
Wendy's International (NYSE:WEN). WEN's PowerRating is 8.
Bearish
5+ Consecutive Up Days: 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.
Krispy Kreme Donuts (NYSE:KKD). KKD's PowerRating is 3.
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.
U.S. Bancorp (NYSE:USB). USB's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADBE, CCU, Hot Stocks, KG, KKD, UPL, USB, WEN

Symbol
Name
Last Trade
Change
Volume
Related Info
ALGN
ALIGN TECHNOLOGY I
22.88 12:04PM ET
5.19 (29.34%)
6,045,704

CVNS
COVANSYS CP
33.31 12:04PM ET
6.51 (24.29%)
2,504,680

INOD
INNODATA ISOGEN
3.50 11:55AM ET
0.61 (21.11%)
VDSI
VASCO DATA SECURITY
21.68 12:04PM ET
4.02 (22.76%)
2,577,758

SWKS
SKYWORKS SOLUTIONS
7.37 12:04PM ET
1.21 (19.64%)
7,917,343

AEIS
ADVANCED ENERGY
25.67 12:04PM ET
4.17 (19.40%)
1,257,050
FFIV
F5 NETWORKS INC
78.71 12:04PM ET
12.64 (19.13%)
4,459,850

CNS
COHN & STEERS
54.22 11:59AM ET
9.26 (20.60%)
793,150

HAR
HARMAN INTL INDS
122.49 11:59AM ET
19.93 (19.43%)
4,620,300
GEL
GENESIS ENERGY LP
26.12 11:57AM ET
3.88 (17.45%)
342,600

OI
OWENS ILLINOIS
31.19 11:59AM ET
4.89 (18.59%)
3,782,940
WST
WEST PHARMA SVCS INC
53.82 11:59AM ET
7.56 (16.34%)
747,550

KOG
KODIAK OIL
5.86 11:59AM ET
0.70 (13.57%)
2,471,400
OMTL
OMTOOL LTD
2.05 11:15AM ET
0.29 (16.48%)
10,472
SBCF
SEACOAST BKNG CP
23.57 12:04PM ET
3.14 (15.37%)
392,899

WEN
WENDYS INTL INC
38.11 11:59AM ET
5.43 (16.62%)
8,829,900

PSAI
PEDIATRIC SRVS
15.85 11:59AM ET
2.15 (15.71%)
220,127
RKT
ROCK-TENN CO CL A
40.44 11:59AM ET
4.60 (12.83%)
741,150

CBRX
COLUMBIA LABS INC
2.66 12:04PM ET
0.32 (13.67%)
5,799,659

MTH
MERITAGE HOMES CORP
37.70 11:59AM ET
5.14 (15.79%)
3,060,280

Labels: AEIS, ALGN, CBRX, CNS, CVNS, FFIV, GEL, HAR, INOD, KOG, MTH, OI, OMTL, PSAI, RKT, SBCF, SWKS, VDSI, WEN, WST

The Nightmare is Over: Boeing (NYSE: BA - News), United Technologies (NYSE: UTX - News), Deere (NYSE: DE - News), Ingersoll-Rand (NYSE: IR - News), Freeport-McMoRan (NYSE: FCX - News), Caterpillar (NYSE: CAT - News)
"The crisis - our short national nightmare - is over!" announced Cramer, reminding viewers of his prediction that the Fed would blink and cut rates. He felt that the removal of the line about "additional firming" from the Fed statement was responsible for the rally in the market on Wednesday and says the final third of the market, comprised of minerals, is hitting bottom. Cramer would aggressively buy cyclical stocks right now and named BA, UTX, DE, IR, FCX and CAT.
Gentlemen Prefer Haynes International (NasdaqGM: HAYN)
Cramer notes Haynes brought a secondary offering to the market, will be able to clean up its balance sheet and start moving. HAYN is a high-performance metals company, and is the cheapest member of the "red hot sizzling club" which includes Titanium Metals and RTI. Haynes is a fresh stock for analysts who are starved for a new name, said Cramer; "The demand for its product is only exceeded by the demand for its stock!"
Sugar-Free Danish: Novo Nordisk (NYSE: NVO - News)
Defensive stocks were performing "fabulously" on Wednesday, and Cramer would keep an eye on drug stocks, but not the American names. Cramer likes Danish company NVO which has 50% of the international market in diabetes treatment. NVO has "some of the best" insulin products, is selling human insulin inexpensively, has patent-protection and is not hampered by competition from generics. Cramer predicts the stock will move from $88.71 to $100.

Shopping for Wal-Mart (NYSE: WMT - News) with stocks Sears Holdings (NasdaqGS: SHLD), JC Penney (NYSE: JCP - News), Kohl's (NYSE: KSS - News)
On Tuesday, a University of Texas student made the bullish case for Wal-Mart because of new store design in Plano Texas. Cramer gave his response on Wednesday, and said he is bothered by the fact that Wal-Mart is a stock analysts claim to hate, yet 16 out of 28 still like it. Cramer doesn't see the company remodeling stores aggressively, and while he admits WMT is cheap on a price-to-earnings basis, he can't accept the fact that WMT is so well liked and its stores are boring places to shop. However, he promoted WMT from a triple sell to a "don't buy, don't buy!" and recommended other retail stocks: SHLD, JCP, KSS.

Mad Mail: Google (NasdaqGS: GOOG), Nastech Pharmaceuticals (NasdaqGM: NSTK), Wendy's (NYSE: WEN - News), Tim Horton's (NYSE: THI - News), McDonald's (NYSE: MCD - News), Chipotle Mexican Grill (NYSE: CMG - News)
Concerning Google, Cramer thinks its YouTube acquisition, far from being a sign of overexpansion, was “brilliant" and if it weren't for the Viacom lawsuit, the stock would be sitting at $470 or $480. Cramer would stay with NSTK at $10, noting it is the only company working on autism. When a caller asked about WEN and THI, Cramer suggested selling both and picking up MCD and especially CMG.
Published By SeekingAlpha

Labels: BA, CAT, CMG, DE, FCX, HAYN, IR, JCP, Jim Cramer, KSS, Mad Money, MCD, NVO, THI, UTX, WEN, WMT

Stocks wobbled to the finish line this afternoon, closing mixed. The Dow Jones Industrial Average was weighed down by weakness in Alcoa (NYSE: AA - News) and Merck (NYSE: MRK - News), but the Nasdaq and the broader market averages managed modest gains. The 10-year Treasury note also moved higher today, while crude oil futures resumed their upward march, settling at just above the $59 a barrel mark.
The economy strengthened heading into the conclusion of last year, according to the Labor Department's jobs report. The government said non-farm payrolls increased by 110,000 in January. While that figure was below the 155,000 new jobs forecasted by Wall Street economists, the Labor Department did revise its November and December jobs figures upward to 196,000 and 206,000, respectively, from the 154,000 and 167,000 initially reported.
In market news, one of the day's top gainers was Innovative Surgical (Nasdaq: ISRG - News), which shot up 18% after reporting a 56% increase in Q4 revenue. The company's profits fell -52% in the quarter to $23.6 million, or 62 cents a share, compared with $49.5 million, or $1.31 a share, a year ago. The year-earlier quarter included a $22 million tax benefit. Today's gain was spurred on by per share profits that topped estimates by 11 cents.
Internet retailer Amazon.com (Nasdaq: AMZN - News) slid -3% after the company reported a -51% drop in Q4 earnings. Amazon reported a profit last night after the market closed of $98 million, or 23 cents per share, compared with $199 million, or 47 cents per share, in the final quarter of 2005. The company said higher taxes contributed to the profit drop as sales rose during the holiday season. Elsewhere, Apple (Nasdaq: AAPL - News) said in a regulatory filing that the government has informally requested documents related to its stock-option program and that the ongoing probe has become a distraction for management.
Wendy's International (NYSE: WEN - News) declined -2% after the company reported that Q4 profits declined by nearly -90% after completing the spin-off of its former Tim Hortons (NYSE: THI - News) subsidiary in September, and the sale of its Baja Fresh Mexican Grill unit in November. The #3 hamburger chain earned $3 million, or 3 cents a share, against $30 million, or 25 cents a share, a year ago. The company said same-store sales rose 3.1% in the quarter.
The drop in natural gas prices at the end of 2006 contributed to a -9% drop in the Q4 profits of Chevron (NYSE: CVX - News). The energy company reported a profit of $3.8 billion, or $1.74 a share, compared with $4.1 billion, or $1.86 a share, in Q405. Revenue dropped -11% to $48 billion from $54 billion. Chevron is the nation's second-largest oil company based on market value. The #1 oil company, Exxon Mobil (NYSE: XOM - News), advanced for the second-consecutive day after posting record annual profits on Thursday.
By the BullMarket.com Staff

Labels: AA, AAPL, AMZN, CVX, ISRG, MRK, THI, WEN, XOM

A leaner Wendy's International Inc. said on Friday that its earnings fell nearly 90 percent in the fourth quarter following the spinoff of its Tim Hortons coffee-and-doughnut chain. Its shares sank more than 3 percent.
The third-largest hamburger chain earned $3 million, or three cents per share, for the quarter ended Dec. 31 compared with profits of $30 million, or 25 cents per share, a year ago.
Revenue fell 1 percent to $596.4 million in the quarter from $602.9 million a year ago.
Wendy's completed the spinoff of Tim Hortons in September and sold its Baja Fresh Mexican Grill chain in November as it returns its focus to its core business. The company also has been trying to cut costs by $100 million, including cutting jobs at its corporate offices in this Columbus suburb.

Labels: WEN, Wendy's International Inc.