Jim Cramer Blog

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Intel (NasdaqGS:INTC - News) missed earnings estimates on Tuesday, reporting $0.38 EPS versus an estimated $0.40 EPS. INTC's PowerRating (for Traders) is 4.
JP Morgan Chase (NYSE:JPM - News) reports earnings on Wednesday before the market opens, with traders watching for $0.93 EPS. JPM's PowerRating (for Traders) is 5.
Knight Trading (NasdaqGS:NITE - News) announces quarterly results before the bell on Wednesday; look for $0.26 EPS. NITE's PowerRating (for Traders) is 5.
Progressive (NYSE:PGR - News) should report $0.33 EPS on Wednesday morning before the market opens. PGR's PowerRating (for Traders) is 4.
Northern Trust (NasdaqGS:NTRS - News) reports earnings on Wednesday morning, with traders watching for $0.93 EPS. NTRS's PowerRating (for Traders) is 6.
Analysts will be watching for Wells Fargo (NYSE:WFC - News) to report $0.41 EPS on Wednesday before the bell. WFC's PowerRating (for Traders) is 3.
Analysts are watching for Logitech (NasdaqGS:LOGI - News) to report $0.6

Labels: INTC, JPM, LOGI, NITE, NTRS, PGR, Stocks to Watch, WFC

Consolidation in key industries may help investors in this oversold market, Jim Cramer said on CNBC's "Stop Trading!" segment Thursday.
Cramer commented on the overall economic condition, prodded by Federal Reserve Chairman Ben Bernanke's speech today: "We are at the precipice. ... We need shotgun marriages."
Bank of America (BAC) helped the odds of one such marriage today by announcing a deal with beleaguered mortgage lender Countrywide (CFC).
"This is what happens at the bottom," Cramer said. "I just don't know why the Fed would say you got to pay a premium for Countrywide." He added that "They don't want Countrywide to go out of business, because the servicing thing would play havoc." Cramer believes that Wachovia (WB) and Wells Fargo (WFC) will respond well to a rate cut: "These stocks go down every day."
Berkshire Hathaway's (BRKA) overtures to bond insurers Ambac (ABK) and MBIA (MBI) yesterday also indicated there may be hope in the troubled financial markets, Cramer said.
Airline stocks were treated to a similar rebound today, Cramer noted. Calling American Airlines operator AMR (AMR) "worth a lot," Cramer said that in a month, he will be recommending the group.
Cramer continues to recommend the agricultural sector. "I love the ag guys because ag is so good," he said. "That Mosaic (MOS) was down yesterday was just the shorts pressing their bets again."
Published By TheStreet.com

Labels: ABK, AMR, BAC, BRKA, CFC, Jim Cramer, MBI, MOS, Stop Trading, WB, WFC

Freeport-McMoRan (FCX)
With rising global demand for raw materials, the mining sector will be on fire for the long-term, and Cramer's favorite pick is FCX. Demand for copper is increasing, supplies dwindle, and since FCX is a leader in copper mining, it should be the chief beneficiary. In addition, FCX has an "unbelievably great" buyback. While there is a lot of consolidation in the sector, Cramer says FCX is doing fine on its own.
Hudson City Bancorp (HBCK), Wells Fargo (WFC)
While Cramer feels confident there will be a rate cut and recommends owning a bank stock, he cautions investors to look for a more stable financial in case the Fed surprises him. Cramer praised HBCK's common sense business model: "It takes deposits; it lends to good, hard-working people who then pay the loans back." HBCK is careful about choosing its borrowers, has fewer non-performing loans than relatively stable bank WFC and is rewarded with loyal customers because it doesn't slap on outrageous fees.
CEO Interview: Donald Wood, Federal Realty Investment Trust (FRT)
Donald Wood said the crisis in consumer confidence is mainly hitting certain parts of the country and FRT, which deals with shopping center real estate, has made the decision to concentrate on higher income areas with larger populations; "We leave other parts of the country alone," he said. "There is no hedge, in my view, in real estate like great locations." Cramer recommended sticking with FRT.
Published By SeekingAlpha

Labels: FCX, FRT, Jim Cramer, Mad Money, WFC

Shares of mortgage lenders soared Friday after Federal Reserve Chairman Ben Bernanke signaled his willingness to slash interest rates again to prop up wobbly financial markets.
Bernanke, in a speech late Thursday, said the Fed will be "exceptionally alert and flexible" to find posThis echoes comments from other central bank officers in the past few days suggesting a cut in interest rates next month.
The Federal Reserve's task is to balance growth against inflation by setting an interest rate target that ensures the economy grows neither too quickly nor too sluggishly.
The Fed cut its target rate in September to 4.75 percent from 5.25 percent, and cut the rate further at the end of October to 4.5 percent. Paul J. Nolte, director of investments at Hinsdale Associates, said based on the rally in stocks this week people appear to expect the Fed will cut rates again.
Lower interest rates make it cheaper for mortgage lenders to raise cash and more enticing for people to buy homes. Presumably, they may also lure buyers back into the market for risky mortgage debt, although Nolte said he does not think interest rates will necessarily accomplish this.sible remedies for the housing slump and decaying mortgage credit quality.

Labels: Ben Bernanke, CFC, DFC, IMB, IMH, NFI, TMA, WFC, WM

All three major indices soared higher, as comments from a Fed official fueled speculation that the central bank would again slash a key interest rate. The Dow added 331 points on the day to close at 13,289. Meanwhile, the Nasdaq closed up 82 points to end the day at 2,663, and the S&P rose 2.9% for the day to end at 1,469. Light, sweet crude dropped sharply on an inventory report to settle at $90.62 a barrel. Treasury and gold prices both tumbled for the second-straight day, while the dollar gained against the euro but dipped versus the yen.
In economic news, the Commerce Department announced that orders for durable goods, like computers and refrigerators, fell -0.4% versus a revised drop of -1.4% in September. Analysts had expected durable good order to be unchanged. The drop has raised concerns about whether the dismal housing market is starting to creep into other areas of the economy. Elsewhere, Federal Reserve Vice Chairman Donald Kohn warned that continued market turmoil could halt economic growth, which Wall Street took as a sign that the Fed Reserve may once again look to cut interest rates in December.
On the earnings front, discount retailer Dollar Tree (Nasdaq: DLTR - News) posted an 11% increase in third-quarter profit helped by strong seasonal sales. For the quarter, the company reported net income of $35.9 million, or 38 cents per share, up from $32.5 million, or 32 cents per share, last year. Revenue in the quarter climbed to $997.8 million, up 10% from $910.4 million a year ago. On average, analysts were calling for earnings of 37 cents per share on $1.05 billion in revenue. Shares of Dollar Tree closed off -1.2% in trading.
Late yesterday, Pep Boys (NYSE: PBY - News) posted a wider third-quarter loss and announced that it cut 550 jobs and closed 31 of its stores as part of a restructuring plan. For the quarter, the company reported a loss of -$21.7 million, or -42 cents per share, versus a loss of -$10.7 million, or -20 cents per share, a year earlier. Quarterly revenue dropped to $534.4 million, down -3% from $550.8 million in 2006. Analysts were looking for revenue of $538.9 million. Pep Boy's stock was down -16.2% at the bell.
In other corporate news, shares of Freddie Mac (NYSE: FRE - News) soared 14.3% despite announcing that it will halve its dividend and that it plans to sell $6 billion in preferred stock. The government-backed lender said the steps were being taken in order to boost finances in anticipation of future losses.
Bear Stearns (NYSE: BSC - News), meanwhile, announced today that it would cut 650 jobs, as the company continues to battle the effects of mortgage-related losses. The head-count reduction marks the third round of layoffs by the nation's fifth-largest investment bank. Shares of Bear Stearns traded up 4.3% for the day.
After yesterday's close, Wells Fargo (NYSE: WFC - News) said that it would report a -$1.4 billion loss in the coming fourth quarter stemming from home equity loans. The bank said it expects the charge to "adequately cover all losses inherent in its portfolios." Wells Fargo also announced it would look to liquidate the riskiest of its $11.9 billion in home equity loans. The stock climbed 3.0% during the session.
By the BullMarket.com Staff

Labels: BSC, DLTR, FRE, PBY, WFC

Wells Fargo & Company (NYSE:WFC - News) reported record diluted earnings per common share of $0.68 for third quarter 2007, up 6 percent from $0.64 in third quarter 2006. Net income was $2.28 billion, up 4 percent from $2.19 billion in third quarter 2006. For the first nine months of 2007, diluted earnings per share were a record $2.01 and net income was a record $6.81 billion, up 9 percent and 8 percent, respectively, from the first nine months of 2006.
"Given the severe disruption in the credit markets, it was a challenging quarter to be sure. Despite that, we had strong growth in revenue and earnings per share, as our team members remained focused on executing our time-tested, diversified business model," said President and CEO John Stumpf. "Our team continued to earn more of our customers' business, setting a new record in customer cross-sell of 5.5 products per consumer household. We maintained our conservative risk management practices, and our strong balance sheet and capital ratios, perhaps the strongest in the industry, which allowed us to continue to grow profitably despite the problems in the market. A challenging environment presents exceptional growth opportunities, perhaps the best in recent years and we are well positioned to take advantage of them. We welcome the new team members and customers from Greater Bay Bancorp who joined our Wells Fargo family this month, adding $7.4 billion in assets and 41 banking stores across the San Francisco Bay Area, including the teams from Greater Bay's ABD Insurance and Financial Services and Matsco Financial Corporation."

Labels: Wells Fargo and Co., WFC

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Genentech (NYSE:DNA - News) beat earnings estimates on Monday after the bell, announcing $0.73 EPS over an expected $0.72 EPS. DNA's PowerRating (for Traders) is 4.
Robbins & Meyers (NYSE:RBN - News) also beat earnings after the close today, with $1.05 EPS versus expectations of $0.84 EPS. RBN's PowerRating (for Traders) is 5.
Johnson & Johnson (NYSE:JNJ - News) reports earnings on Tuesday before the market opens, with analysts looking for $0.99 EPS. JNJ's PowerRating (for Traders) is 6.
KeyCorp (NYSE:KEY - News) announces quarterly results before the bell on Tuesday, with analysts looking for $0.72 EPS. KEY's PowerRating (for Traders) is 5.
When US Bancorp (NYSE:USB - News) reports earnings tomorrow morning, watch for $0.66 EPS. USB's PowerRating (for Traders) is 5.
Analysts are watching for Wells Fargo (NYSE:WFC - News) to report $0.70 EPS on Tuesday before the open. WFC's PowerRating (for Traders) is 6.
Supervalu (NYSE:SVU - News) is looking to report $0.68 EPS before the bell tomorrow. SVU's PowerRating (for Traders) is 5.

Labels: DNA, JNJ, KEY, RBN, SVU, USB, WFC

Biogen (BIIB) announced plans to put the company up for sale after-hours. They hired Goldman Sachs and Merrill Lynch to search for a deal. Biogen management thinks that selling the company would represent a better value to shareholders. Adami offers Pfizer (PFE) as a possible buyer. Najarian suggests trading off the news with Elan (ELN). Merck (MRK) also traded up after-hours on winning FDA approval for a new HIV drug. Oracle (ORCL) announced a bid for rival software provider BEA Systems (BEAS) for $6.7 billion

Technology

CNBC Silicon Valley Bureau Chief Jim Goldman joined the show on Friday. Goldman doesn't expect anything big from Yahoo! (YHOO). In fact, he thinks they will disappoint. IBM (IBM) and Intel (INTC) will report good news. Goldman notes that a lot of people are concerned about eBay (EBAY) and the stock has already made a run. Adami agrees on Intel and thinks they can knock the cover off into earnings. Macke disagrees and thinks Yahoo! is setting up to work for a trade. Macke didn't agree on eBay because he thinks management is progressive. Najarian advises watching SanDisk (SNDK) for a takeover play.

Regional Banks

Regional bank names like Wells Fargo (WFC), US Bancorp (USB) Sovereign Bank (SOV), Washington Mutual (WM), PNC Bank (PNC) and Fifth Third Bancorp (FITB) will report earnings next week. Adami likes US Bancorp.

Nike (NKE) was selected as the chart of the day after hitting all-time highs on Friday. Happy 52-week high Nike.

Word on the Street

Technology stocks rallied back strong on Friday with names like Apple (AAPL), Google (GOOG) and Bidau.com (BIDU) all racking up solid gains. McDonald's (MCD) traded higher on Friday after reporting strong September sales. Macke is still bullish on MCD. Retail stocks continue to struggle even with Wal-Mart (WMT) finishing the week higher. Crude oil hit another record high this week trading up to $83.69. Adami thinks Tesoro (TSO) goes to $60 and he also likes Valero (VLO). Finerman continues to like ConocoPhillips (COP).

Pops & Drops

Pops- Monsanto (MON) traded up 3%

PetroChina (PTR) popped 13% even after Warren Buffett trimmed his stake in the Chinese oil giant.

BP (BP) popped 7% following crude oil prices.

General Motors (GM) and Ford (F) both traded up over 10% as the UAW settle strikes with GM and Chrysler.

Drops- Boeing (BA) fell 5% after delaying production of the Dreamliner.

JC Penney (JCP) fell 9% off of negative headlines.

SanDisk (SNDK) dropped 9%.

Final Trade

Najarian likes the global growth play in McDonald's (MCD)

Finerman would eat up Kraft (KFT).

Adami: Tesoro (TSO) and his $60 target.

Labels: BEAS, BIIB, CNBC, Ebay, Fast Money, Fast Money Recap, FITB, IBM, INTC, ORCL, SOV, WFC, WM

Pepsi (PEP): stock went down almost 2 points. The quarterly report showed that the raw costs hurt the numbers in many of their domestic products, and thinks that many people are concerned that price increases will hurt sales. Pepsi CEO Indra Nooyi was on the show to discuss the numbers, which she was very happy with. Nooyi thinks they can handle increased commodity costs and that earning will continue to increase.
Next, Cramer dressed up like a matador and talked about a Spanish stock. Cramer thinks that Spain has a good bull market, and that Banco Santander (STD) will prosper from its home market and the strength of the Euro compared to the US. Cramer said STD will make some acquisitions in the US and Latin America, growing and diversifying the bank's asset base. Cramer could see the stock making a 20% increase in the stock and a dividend increase as well.
Cramer took a couple of phone calls. First caller asked about Wells Fargo (WFC), and Cramer said that he likes the stock, but not as much as STD. The next caller asked about the Commerce Bank (CBH) merger, and Cramer said that the market had already priced an acquisition into the stock price in that case. The next caller asked about Banco Popular (BPOP), and Cramer said that he is not willing to buy that stock.
Sell Block
Cramer focused on the reasons you should sell Chipotle (CMG). Cramer is sad to see the stock go, but it is up 200% since he originally recommended it, and doesn't like the stock at this price.
PetSmart (PETM) CEO of the company was on the show. He discussed the fact that some of the company's sales are affected by weather patterns, and warmer weather hurts profits. Cramer still recommends the stock.
Finally, Cramer said that you should sell any Allegheny Technologies (ATI) stock you might have left from his recommendation of it last year.

Labels: ATI, CBH, CMG, Jim Cramer, Mad Money, Mad MOney Recap, PEP, PETM, STD, WFC

Google (GOOG): Today's show started with Cramer talking about Google. He talked about all the Google non-believers, and then talked about the reasons that he thinks the stock will keep going higher. He has set his price target at $750, and believes it's not too late to get into the stock right now. He thinks it is a great company and has been undervalued every day "of it's existence." He told viewers that if they're afraid to buy such an expensive stock, divide it by 10 and think of it in that sense. Buy Buy Buy!
Next Cramer listed medical device makers that he likes by building a theoretical bionic woman. The first stock he listed was Alcon (ACL) which makes eye care products. He also recommended Smith and Nephew (SNN) and Stryker (SYK). His favorite one is Stryker, which he thinks could give you a 36% gain. Stryker has some litigation pending, but once that is settled he thinks the stock will take off. He also believes that the stock will do well if the economy slows. A caller asked about BioScrip (BIOS), and Cramer said that BIOS is an interesting takeover play with solid fundamentals.
"Are You Diversified?"
The first caller asked about his core of Google (GOOG), eBay (EBAY), Wachovia (WB), Nastech (NSTK) and Southwest (LUV). Cramer said he prefers United (UAUA). He said eBay overlaps with Google. He recommended selling eBay and buying a defensive stock.
A second caller's portfolio included Wells Fargo (WFC), Lockheed Martin (LMT), Texas Instruments (TXN), Exxon-Mobil (XOM) and Dover (DOV). "Hallelujah," Cramer said. There is a picture of this caller in the dictionary next to the entry for "diversification."
He also said "hallelujah" to the third callers portfolio which included Wachovia (WB), Research in Motion (RIMM), Schlumberger (SLB), Lockheed and Lundin Mining (LMC).
BioMarin Pharmaceutical (BMRN) CEO was on the show. Cramer discussed the prospects of an upcoming drug from BioMarin and said that he is bullish on the stock.
Finally, Cramer came back and said that he was wrong about Downey Financial (DSL), which was down big today.

Labels: ACL, BIOS, BMRN, GOOG, Jim Cramer, LUV, Mad Money, Mad MOney Recap, NSTK, SNN, SYK, WFC

Buy Texas Instruments (TXN), Jim Cramer said Friday on CNBC's "Stop Trading!" segment.
Cramer said the chip giant has "nothing to do with its cash" but buy back stock, which is why the stock should go to $45 from a recent $36.83.
Cramer also likes the bank stocks, from Citi (C) and JPMorgan (JPM) to Wells Fargo (WFC) and Bank of America (BAC), despite some brokerage downgrades tied to possible loan losses. Cramer said to "downgrade now is wrong" on these stocks, because they had performed so poorly headed into this week's Fed rate cut.

Labels: BAC, Bank of America Corp., C, Citigroup Inc., Jim Cramer, Jim Cramer's Stop Trading, JP Morgan Chase and Co., JPM, Texas Instruments Inc., TXN, Wells Fargo and Co., WFC

Wells Fargo (NYSE: WFC - News)
Cramer said Friday was a "great day for the market" and indicated the cut of 50 basis points to 5.75% was partly the result of his "heart felt plea" to Fed Chairman Ben Bernanke to slash the rate. Cramer reiterated his bullishness on WFC, but regrets he didn't recommend the stock earlier. Although investors are now "playing offense," Cramer says the change is one of psychology, not fundamentals.
Thornburg Mortgage (NYSE: TMA - News), Countrywide Financial (NYSE: CFC - News), Goldman Sachs (NYSE: GS - News), Lehman Brothers Holdings (NYSE: LEH - News)
Cramer wondered "where was that 500 point rally?" that was supposed to accompany a rate cut, but added the cut averted a 1,000 point decline. He said the slash in the rate saved TMA nd CFC from almost certain collapse. Although hedge funds are still in sell mode and the market could experience a hiccup, like the 5.4% drop in Japan's Nikkei, Cramer believes the worst is over and would buy GS and LEH on the rate cut.
"Post-Bernanke Enlightenment Game Plan:" Sears Holding (NasdaqGS: SHLD - News), Bear Stearns (NYSE: BSC - News), Downey Financial (NYSE: DSL - News), Washington Mutual (NYSE: WM - News), Centex (NYSE: CTX - News), Schlumberger (NYSE: SLB - News), Halliburton (NYSE: HAL - News), NYSE Euronext (NYSE: NYX - News)
As always, Cramer likes SHLD, not only because of CEO Eddie Lampert but also because the company has "lots of cash." In addition to Goldman and Lehman, Cramer says it is time to buy financials BSC, DSL and WM. He added Countrywide and Thornburg's recent problems could lead to takeover bids. Because of hurricane season and renewed vitality in the housing sector, Cramer discussed CTX, which could see a short squeeze, and revisited his perennial favorites SLB and HAL. He thinks NYX will finally get some respect because its estimates are too low in spite of high trading volume. Cramer said these picks are good to "buy high and sell higher," and if they rise on Monday, Cramer would wait five days before buying.
Published By SeekingAlpha

Labels: BSC, CFC, CTX, DSL, GS, HAL, Jim Cramer, LEH, Mad Money, NYX, SHLD, SLB, TMA, WFC, WM

Wells Fargo (NYSE: WFC - News), Countrywide Financial's (NYSE: CFC - News), Washington Mutual (NYSE: WM - News), Bank of America (NYSE: BAC - News), Wachovia (NYSE: WB - News)
Thursday's dash for financials may indicate the sector will be one of the "long-term beneficiaries" of Bernanke's position, but Cramer does not think they are safe. He tacked a double sell on WM but thought BAC and WB could survive. However, he reserved the lion's share of his praise for WFC, and said, "It is the great speculative play that should prosper." He believes WFC will "own the mortgage market" and will win with investors because it offers a great dividend. Cramer would wait for WFC to drop to the $32 - $34 range.
Sell Block: VMware (NYSE: VMW - News), H&R Block (NYSE: HRB - News), Capital One Financial (NYSE: COF - News), Friedman Billings Ramsey Group (NYSE: FBR - News) Lamson & Sessions (NYSE: LMS - News), Six Flags (NYSE: SIX - News)
Cramer urged investors to "stay the course" and added "no one ever made a dime panicking." However, he added it isn't too late to sell minerals and he feels tigher consumer spending will put pressure on retail. Cramer would sell VMW after its highly successful IPO, and would stay away from HRB, COF and FBR. He would also sell LMS as well as SIX because of low attendance due to the weather. He concluded it is better to invest in long-term stocks rather than quick trades in the current environment.
KKR Financial (NYSE: KFN - News), Thornburg Mortgage (NYSE: TMA - News) and Reynolds American (NYSE: RAI - News)
Not all high dividends are good dividends, Cramer declared and used KFN and TMA as examples. He added high-dividend names KFN and TMA aren't worth the investment because as their stocks fall so will the yields. Cramer likes RAI which has a dividend of 5.5% and is a "smart play" in this environment because "nothing is more defensive than cigarettes."
Mad Mail: Bear Stearns (NYSE: BSC - News), Jones Soda (NasdaqCM: JSDA) and Google (NasdaqGS: GOOG - News)
Cramer would avoid BSC and JSDA whose climb was "how to make a million" in the market. He adds GOOG is safe and likes the tech sector for its pristine balance sheets and great products.
Published by SeekingAlpha

Labels: BAC, BSC, CFC, COF, FBR, GOOG, HRB, Jim Cramer, KFN, LMS, Mad Money, RAI, SIX, TMA, VMW, WB, WFC, WM

Wells Fargo & Co. (NYSE:WFC - News), the second-largest U.S. mortgage lender, said on Thursday it will close its nonprime wholesale lending business, which processes and funds loans for third-party brokers, citing turmoil in the market for riskier home loans.

The company will shut operations in Baton Rouge, Louisiana, resulting in a loss of 170 jobs, and in Des Moines, Iowa, where it will seek other positions for 67 affected workers. Wells Fargo's home mortgage unit is based in Des Moines, while the parent is based in San Francisco.
Wells Fargo, which is also the fifth-largest U.S. bank, said nonprime wholesale lending last year represented 1.6 percent of its $397.6 billion of residential mortgage loan volume. It said it will still offer nonprime loans directly to consumers through its Wells Fargo Home Mortgage and Wells Fargo Financial units.

Labels: Wells Fargo and Co., WFC

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Novellus (NasdaqGS:NVLS - News) beat expectations on Monday afternoon, announcing $0.45 EPS over an expected $0.43 EPS. NVLS's PowerRating is 4.
Coca-Cola (NYSE:KO - News) reports earnings on Tuesday before the market opens; look for $0.82 EPS. KO's PowerRating is 5.
Johnson & Johnson (NYSE:JNJ - News) announces quarterly earnings on Tuesday morning, with analysts looking for $1.00 EPS. JNJ's PowerRating is 4.
KeyCorp (NYSE:KEY - News) should report $0.70 EPS on Tuesday before the bell. KEY's PowerRating is 4.
When Regions Financial (NYSE:RF - News) reports earnings tomorrow morning, watch for $0.69 EPS. RF's PowerRating is 4.
US Bancorp (NYSE:USB - News) is expected to announce $0.67 EPS on Tuesday morning. USB's PowerRating is 4.
Analysts are expecting Wells Fargo (NYSE:WFC - News) to report $0.67 EPS before the bell on Tuesday. WFC's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: Hot Stocks, JNJ, KEY, KO, RF, USB, WFC

Next Week's Game Plan: Coke (NYSE: KO - News), Intel (NasdaqGS: INTC - News), United Technologies (NYSE: UTX - News), Freeport McMoRan Copper & Gold (NYSE: FCX - News), Honeywell (NYSE: HON - News), Johnson Controls (NYSE: JCI - News), Caterpillar (NYSE: CAT - News), Schlumberger (NYSE: SLB - News), Merrill Lynch (NYSE: MER - News), Wells Fargo (NYSE: WFC - News), JPMorgan Chase (NYSE: JPM - News), Bank of America (NYSE: BAC - News) and Citigroup (NYSE: C - News)
Cramer expects better-than-expected earnings from the following companies, and would buy before their reports next week: KO, INTC, UTX, FCX, HON, JCI, CAT and SLB. Since banks are "on a mission to show that there is no slowdown" and are likely to raise their dividends and buy back stock, Cramer would buy MER, WFC, JPM, BAC and C prior to their earnings reports.
That 80s Show: Boeing (NYSE: BA - News), Caterpillar (NYSE: CAT - News), ConocoPhillips (NYSE: COP - News), Energizer (NYSE: ENR - News), Air Products & Chemicals (NYSE: APD - News), Apache (NYSE: APA - News), Terex (NYSE: TEX - News)
"I've discovered alchemy," declared Cramer, noting the six stocks (BA, CAT, COP, ENR, APD and APA) he has discussed this week in connection with his theory (that stocks at $80 go to $100 and then to $120) are up an average of 5.2%. On Friday, Cramer added TEX to the list, since it is around $80 and will benefit from the "wild bull market" of infrastructure and machinery. He doesn't regard CAT as a rival, since "Terex's bread and butter is in aerial work platforms" which are not produced by CAT. He is not worried about competition from Manitowoc in the crane business.
Incredibly Risky Play: GeoEye (NasdaqGM: GEOY - News)
Cramer recommended GEOY as an "incredibly risky play" which is not for IRA money, but could have a major upside. Although it is the biggest commerical satellite company, GEOY has yet to make a profit. However, Cramer thinks outsourcing demands and Google Earth might make this company profitable, not to mention its main competitor is not a publicly traded stock. According to Cramer, the stock could double on the successful commission of a new satellite. However, the date has been deferred once, and if the satellite does not go up when expected, GEOY "could get hammered." While he urges caution, Cramer says GEOY is a great speculative stock.

Published By SeekingAlpha

Labels: APD, BA, BAC, CAT, COP, ENR, FCX, HON, INTC, JCI, Jim Cramer, JPM, KO, Mad Money, MER, SLB, TEX, UTX, WFC

Six Flags (NYSE: SIX - News): 'We are big fans of Mark Shapiro... I like the advanced ticket sales. I like what he's doing. I am bullish on SIX, but I have to believe that you don't want to pull the trigger until it is below $6.'Ford (NYSE: F - News): 'People are believing in Alan Mulally [CEO}, and it's about time. He's shrinking the company ... we have heroes on Wall Street, not just villains, and Alan is one of the heroes!'Wells Fargo (NYSE: WFC - News): 'Best in show bank. 14x multiple. Unbelievable. WFC is good - don't buy, don't buy - but I want you to pull the trigger on GS!'Goldman Sachs (NYSE: GS - News): ' ... at $225, and I think it's going to $350... I want you to pull the trigger on GS.'Peabody Energy (NYSE: BTU - News)Chemed (NYSE: CHE - News)Charter Communications (NasdaqGM: CHTR) 'CHTR's going higher! CHTR is now up almost a dollar from where we recommended it.'J.C. Penney (NYSE: JCP - News)Kohl's (NYSE: KSS - News)Saks (NYSE: SKS - News): 'Somebody upgraded it today. They're finally getting on board. I like that one too!'Dick's Sporting Goods (NYSE: DKS - News)Lowe's (NYSE: LOW - News)Federated Department Stores (NYSE: FD - News): 'That stock has gotten too cheap. I'd like to buy that. Buy, buy, buy.'Sears (NasdaqGS: SHLD): ' ... is a stock that everybody now hates... (buzzer sounds)... Meanwhile, I say, c'mon. The guy's making money. Give him the BOD - give him the benefit of the doubt!'Caterpillar (NYSE: CAT - News): ' ... why would you not buy Caterpillar instead, which is best in show, much too low versus the rest of the group.'Joy Global (NasdaqGS: JOYG): 'I like JOYG, but it is to CAT that I am pointing you to...'Syneron Medical (NasdaqGS: ELOS): 'We're still sticking with ELOS ... We like the lasers. We believe in the dental laser. Has it taken off yet? Not yet, but we still like it. I would stick with ELOS.'China Medical (NasdaqGS: CMED): 'The stock is good... A very strange combination of hospice and Roto Rooter... I am sticking by CMED. I would take a little off, because ... hogs get slaughtered... but CMED was a good one and it remains so.'New York Stock Exchange/Euronext (NYSE: NYX - News): '.... was so ugly today that... I've never seen such a bear raid on a stock ... The Euronext numbers that came out were great!'
Bearish calls:
Consol Energy (NYSE: CNX - News): 'Keep looking! Don't pull the trigger! Don't buy, don't buy.'Massey Energy (NYSE: MEE - News): ' ... that one is just awful! House of pain...'DivX (NasdaqGM: DIVX): 'I cannot get behind DIVX. That was one of the ugliest quarters out of the chute that I've ever seen... I cannot do the right thing when management screws up. I am not getting behind DIVX. No way, no how!'Big Lots (NYSE: BIG - News): 'BIG is not a favorite of mine.'Sport Chalet (NasdaqGM: SPCHB)Central Garden & Pet (NasdaqGS: CENT): 'Pass on CENT... Inconsistent. Not a great company. Way too levered to whether we have a good garden season, which is really bad. Sell, sell, sell!'

Published by SeekingAlpha

Labels: BIG, BTU, CAT, CHE, CHTR, CNX, DKS, F, FD, GS, JCP, Jim Cramer, KSS, Lightning Round, LOW, NYX, SIX, SKS, WFC

Bullish calls:
Syneron Medical (NasdaqGS: ELOS): 'I am going to reiterate ELOS, even as I think that PMTI has come down a lot, ELOS has the best future ahead of it.'FuelCell Energy (NasdaqGM: FCEL)Avnet (NYSE: AVT - News): 'I'm going to send you to AVT.'Chemed (NYSE: CHE - News): 'So, why don't I send you to CHE, which is still 9 points off its high. Also does the hospitality business... has Roto-Rooter, and a hospice.'Comcast (NasdaqGS: CMCSA)Gorman-Rupp (AMEX: GRC - News): 'I like GRC...I'm giving it a thumb and a half up to GRC - two thumbs and a half up...Onyx Pharmaceuticals (NasdaqGM: ONXX): 'This is a stock that, even when it went up to $20, I wanted to buy... I think, at $27, it's still a buy.'Lockheed Martin (NYSE: LMT - News): ' Is there a day when LMT does not have a negative article written about it, about some contract that it has, and they can't keep that stock down... The reason is, that they are bulletproof. No matter how much they screw up, they keep going higher. That's my kind of stock.'Ceradyne (NasdaqGS: CRDN)Hercules Offshore (NasdaqGS: HERO): 'I think HERO was mispriced and you should be buying that. I am looking at re-valuing the drillers, given the fact that the rig count on Friday hit the highest it's been in years. I think HERO is a buy!'Hornbeck Offshore (NYSE: HOS - News</