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.
NAVTEQ Oct 75 Calls (NYSE:NVT - News). NVT'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.
United Therapeutics Oct 70 Puts (NasdaqGS:UTHR - News). UTHR's PowerRating (for Traders) is 5.
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.
Garmin Nov 135 Calls (NasdaqGS:GRMN - News). GRMN'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.
Google Oct 540 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 4.
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.
Weight Watchers International (NYSE:WTW - News). WTW'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.
ArthroCare (NasdaqGS:ARTC - News). ARTC's PowerRating (for Traders) is 6.
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.
Constellation Energy Group (NYSE:CEG - News). CEG's PowerRating (for Traders) is 6.
Published By TradingMarkets.com

Labels: ARTC, CEG, GOOG, GRMN, NVT, stock options, UTHR, WTW

Bullish calls:
Zimmer (NYSE: ZMH): 'The stock has 14% growth. It sells for mid-20x's multiple. Do you mind if I say that we wait until it goes under $80, before we absolutely back up the truck? Right now, I'd take a small position - a little schnitzel.'MasterCard (NYSE: MA): 'MA goes to $175 before it gets to be too expensive, and stop worrying about the Visa IPO. We will deal with that when it comes time... MA... Way up!'Yum! Brands (NYSE: YUM): 'Most of the growth comes from China ... YUM is still, still cheap. $67 goes to $75. At $75, we're going to take a little off the table but, until then, superior growth, superior attitude.'Reliance Steel (NYSE: RS): ' ... has a wholesale metal working business that I like.'Weight Watcher's (NYSE: WTW): 'I say yes to that. Great secular growth... I'm sticking with it. Under $50, I'm backing up the truck...'Nastech Pharmaceutical (NasdaqGM: NSTK)Time Warner (NYSE: TWX)Comcast (NasdaqGS: CMCSA): ' I think CMCSA is phenomenally undervalued here.'
Bearish calls:
Trump Entertainment Resorts (NasdaqGM: TRMP): 'I think that this company gets a bid, but I don't think you make any money... So I am going to have to 'sell, sell, sell!'Mediacom Communications (NasdaqGS: MCCC): 'MCCC is a little speculative for my taste.'

Labels: CMCSA, Jim Cramer, Lightning Round, MA, Mad Money, MCCC, NSTK, RS, TRMP, TWX, WTW, YUM, ZMH

Buy Back Stock, Get Taken Over: Cigna (NYSE: CI), Sonic (NasdaqGS: SONC), United Stationers (NasdaqGS: USTR)
Cramer observed an interesting fact about takeovers; out of 14 companies which bought back a minimum of 17% of their stock last year, four were taken over. Although four out of 14 may not be an impressive figure at first glance, Cramer comments finding a takeover is like winning the lottery. Companies who buy back stock agressively are keen to increase their own value; "Any company buying back 17% or more of its shares doesn't need to be public." Cramer devoted the program to discussing potential takeover targets with generous buybacks. He gave a passing mention to CI, which is repurchasing stock, although he has covered the company already, and SONC, which he did not discuss because he is concerned about consumer spending. His first featured stock was office products wholesaler USTR, which has a buyback level of 20% and is a "primo" takeover target. He adds the company has a "good margin expansion story" and is currently covered by only three analysts.
On the Brinks (NYSE: BCO)
Brinks bought back 21% of its stock in 2006, and Cramer comments companies like BCO don't "just shrink the float -- they devour it." One segment of the company produces armored cars and the other manufactures security alarms, and BCO could split itself in two or could be bought. Cramer notes BCO is paying off its debts as aggressively as it is buying back stock.

The Skinny on Weight Watchers (NYSE: WTW)
Cramer's favorite stock on Monday was WTW, not only because obesity is a hot issue, but because it has among the most "voracious" buybacks he has ever seen along with a generous cash flow. He adds WTW is a "tremendous" brand, has a good business model, strong licensing and online businesses, and a satisfying quarterly report. Cramer predicts if WTW doesn't get bought, it could take itself private; "takeover or no takeover, Weight Watchers is a buy," Cramer said.
CEO Interview: Peter Georgiopoulos, CEO and Chairman of General Maritime (NYSE: GMR), Chairman of Genco Shipping & Trading (NYSE: GNK), and Chairman of Aegean Marine Petroleum (NYSE: ANW)
When Cramer asked why Peter Georgiopoulos wears so many hats, he replied that while it would be simpler to consolidate the three companies, shareholders prefer to be invested in a specific market; "we think we'll get a better valuation for a pure play." Georgiopoulos notes GMR is up 40% since December and has a fixed $2 dividend in the works. Cramer said Georgiopoulos " is the guy I'm sticking with."
Published By SeekingAlpha

Labels: ANW, BCO, CI, GMR, GNK, Jim Cramer, Mad Money, SONC, USTR, WTW

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
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.

Career Education (NasdaqGS:CECO - News). CECO's PowerRating is 5.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
NightHawk Radiology Holdings (NasdaqGM:NHWK - News). NHWK's PowerRating is 6.
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.
Cross Country Healthcare (NasdaqGS:CCRN - News). CCRN's PowerRating is 7.
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.
Weight Watchers (NYSE:WTW - News). WTW's PowerRating is 8.
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.
Gorman-Rupp Company (NYSE:GRC - News). GRC's PowerRating is 8.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five 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.
Baidu.com (NasdaqGM:BIDU - News). BIDU's PowerRating is 7.
Bearish
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Advance America (NYSE:AEA - News). AEA's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AEA, BIDU, CCRN, CECO, GRC, Hot Stocks, NHWK, WTW

Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Career Education (NasdaqGS:CECO - News). CECO's PowerRating is 5.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
NightHawk Radiology Holdings (NasdaqGM:NHWK - News). NHWK's PowerRating is 6.
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.
Cross Country Healthcare (NasdaqGS:CCRN - News). CCRN's PowerRating is 7.
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.
Weight Watchers (NYSE:WTW - News). WTW's PowerRating is 8.
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.
Gorman-Rupp Company (NYSE:GRC - News). GRC's PowerRating is 8.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five 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.
Baidu.com (NasdaqGM:BIDU - News). BIDU's PowerRating is 7.
Bearish
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Advance America (NYSE:AEA - News). AEA's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AEA, BIDU, CCRN, CECO, GRC, Hot Stocks, NHWK, WTW

1 800 Flowers.com (NasdaqGS:FLWS - News) was downgraded to sell from neutral by Goldman Sachs on valuation groups, as the shares are about 15% above its year-end price target of $6.50. "Calendar year 2008 to 2011 revenue growth above 5% is unlikely without greater-than-expected levels of spending, which would put our 13% profit growth estimate, and thus our price target, at risk. The current share price may reflect an overly optimistic outlook for Valentine's Day, Easter, and Mother's Day," the broker said.
Advancis Pharmaceutical (NasdaqGM:AVNC - News) has received a "refusal to file" letter from the Food and Drug Administration for its Amoxicillin Pulsys new-drug application. The Germantown, Md., pharmaceutical company said the letter requests additional information on its planned commercial manufacturing processes. Last December, Advancis submitted an NDA for once-daily Amoxicillin Pulsys to treat adolescents and adults with acute strep throat. The company plans to meet with the FDA as soon as possible to discuss the issues and to reach agreement on what additional information is required for the filing to be accepted.
Agnico-Eagle Mines Ltd (NYSE:AEM - News) agreed to buy Cumberland Resources Ltd in an all-stock deal valuing the Canadian gold mining company at C$710 million ($605 million). Agnico-Eagle said it will exchange 0.185 of its shares for every Cumberland share, representing a 28.8% premium to Cumberland's closing price on Feb. 13. Cumberland owns the Meadowbank gold project, which is currently under construction with proven and probable reserves of 2.9 million ounces. Production is due to begin in 2010 and will increase projected gold production at Agnico-Eagle by 39% in 2010 to 1.3 million ounces.
Carter (NYSE:CRI - News) shares tumbled after the company said its fourth-quarter net sales rose 7.7% to $377.5 million and earnings were 45 cents a share, including charges of 1 cent a share for share-based compensation and 1 cent a share for amortization charges. On average, analysts polled by Thomson Financial expected earnings of 46 cents a share. The analyst estimate includes share-based compensation but excludes the amortization charges. Carter's said fourth-quarter weakness is now impacting 2007 results, which are being hurt by changes in the mix and levels of inventory in our stores. Carter's said it's made progress reducing OshKosh's cost structure in 2006, but more work is still required and the benefits won't be realized until the second half of 2007. As a result the company expects first-quarter sales of $305 million, up 3% from a year ago, and earnings of 14 cents, down 46% from a year ago. For fiscal 2007, Carter's now expects net sales of $1.4 billion to $1.42 billion, up 4% to 5%, and earnings of $1.42 to $1.49 a share, flat to up 5%. The company expects no growth in same-store sales in 2007.
Champion Enterprises Inc. (NYSE:CHB - News) fourth-quarter net income declined to 5 cents a share from 8 cents a share, in the year-earlier period. The Michigan producer of manufactured and modular homes reported revenue fell to $300.9 million from $375.5 million. Analysts polled by Thomson Financial had expected revenue of $332 million.
Choice Hotels (NYSE:CHH - News) shares pulled back after the company said its fourth-quarter earnings improved to $24.6 million, or 37 cents a share, from a year-earlier profit of $21.6 million, or 32 cents a share. On an adjusted basis, earnings were 36 cents a share. Revenue rose to $143.7 million from $122 million. Wall Street, according to Thomson Financial, expected the company to post fourth-quarter earnings of 35 cents a share and revenue of $133 million. The company expects to post first-quarter earnings of 23 cents a share and full-year earnings of $1.59 a share. Wall Street expects first-quarter earnings of 28 cents a share and 2007 earnings of $1.67 a share.
Daktronics' (NasdaqGS:DAKT - News) shares dropped after the Brookings, S.D.-based company reported fiscal third-quarter net income of $7.03 million, or 17 cents a share, compared with $4.04 million, or 10 cents a share, in the year-ago period. Revenue rose to $106.7 million from $71.1 million. Analysts were expecting a per-share profit of 16 cents on revenue of $112.6 million. The company expects fourth-quarter earnings in the range of 12 cents to 19 cents a share on revenue of $106 to $118 million.
Delta Air Lines Inc. (Other OTC:DALRQ.PK - News) said its fourth-quarter loss widened to $1.98 billion from $1.24 billion. The Atlanta airline, in Chapter 11 bankruptcy, said it recorded $1.8 billion in charges in the quarter, consisting of $2.5 billion for reorganization items and a $719 million income tax-related gain from the reversal of liabilities under its pilot pension plan. Revenue in the three months ended Dec. 31 rose 5.3% to $4.14 billion from $3.92 billion. Delta, the No. 3 network airline, said it recorded its first annual operating profit since 2000.
Gen-Probe Inc. (NasdaqGS:GPRO - News) said its fourth-quarter net earnings rose slightly to $17.1 million, or 32 cents a share, compared with $16.8 million, or 32 cents a share, in the same period last year, on the back of higher sales. Excluding stock-based compensation, the San Diego-based maker of tests to diagnose disease posted per-share earnings of 38 cents. Revenue rose 3.5% to $91.1 million from $88 million. Analysts polled by Thomson Financial had expected per-share earnings of 29 cents, on revenue of $89 million. For 2007, Gen-Probe expects per-share earnings of $1.26 to $1.34, on revenue of $380 million to $390 million. Separately, the company said it has named Carl Hull chief operating officer.
Harris Corp. (NYSE:HRS - News) was downgraded to neutral from overweight at J.P. Morgan.
Host Hotels (NYSE:HST - News) was downgraded to hold from buy at Citigroup.
La-Z-Boy (NYSE:LZB - News) swung to a third-quarter net loss of 15 cents a share, as it recorded a 28-cent loss from discontinued operations. In the year-earlier period, the furniture company earned 20 cents a share. La-Z-Boy said revenue fell to $403.9 million from $446.6 million. For the fourth quarter, the company expects sales to fall 8% to 10% from the year earlier, with earnings per share of 3 cents to 7 cents.
Masco Corp. (NYSE:MAS - News)swung to a fourth-quarter loss of 49 cents a share from net income of 41 cents, in the year-earlier period on higher impairment charges and a 5.8% decline in sales. Profit from continuing operations before items decreased to 38 cents a share from 50 cents. Fourth-quarter sales fell to $2.95 billion. Analysts surveyed by Thomson Financial, on average, expected the Taylor, Mich., company to earn 36 cents a share on revenue of $2.95 billion.
Office Depot Inc. (NYSE:ODP - News) said its fourth-quarter earnings rose to 48 cents a share from 34 cents in the year-earlier period. The 2005 results include a 53rd week. Excluding certain charges and the effect of a 53rd week in 2005, Office Depot earned 54 cents a share, up from 38 cents. The Delray Beach, Fla., office-supply retail chain said sales rose to $3.84 billion from $3.72 billion. Analysts polled by Thomson Financial, on average, expected earnings of 52 cents a share, excluding items, on revenue of $3.89 billion.
Playboy Enterprises (NYSE:PLA - News) was downgraded to neutral from buy at both UBS and Banc of America Securities. Banc of America lowered its price target to $12 from $13, while UBS cuts its target to $12.50 from $14.
PNM Resources Inc. (NYSE:PNM - News) fourth-quarter net income rose to 49 cents a share from 10 cents in the year-earlier period. The Albuquerque, N.M., energy holding company's revenue declined to $619 million from $646.5 million. Analysts polled by Thomson Financial were looking for revenue of $690 million. The board also approved a 4.6% increase in the quarterly dividend, to 23 cents a share, payable May 18 to holders as of May 1.
Stifel Financial, (NYSE:SF - News), the St. Louis brokerage and investment-banking firm, reported fourth-quarter net income rose 50% on 73% higher revenue.
Telik Inc. (NasdaqGM:TELK - News) plans to cut its workforce by about 25% as part of a corporate restructuring plan to reduce spending. The Palo Alto, Calif., biopharmaceutical company expects to record about $1.6 million in restructuring and severance costs for the first quarter. After the job cuts, the company will have about 120 employees.
Therma-Wave (NasdaqGM:TWAV - News) said KLA-Tencor Corp. has indicated that the German Federal Cartel Office initiated a Phase 2 review of KLA's proposed acquisition of Therma-Wave. Therefore, the acquisition of Therma-Wave may only be consummated if the FCO approves the acquisition. The tender offer has been extended to March 15.
United Auto Group (NYSE:UAG - News) reported fourth-quarter earnings of $29.9 million, or 32 cents a share, up from a year-ago profit of $30.1 million, or 32 cents a share. On a continuing operations basis, the company earned $31.1 million, or 33 cents a share, in the latest quarter. Revenue rose 22.8% in the latest three months to $2.88 billion from $2.35 billion a year earlier. The company said same-store retail revenue rose 7.1% in the quarter. The average estimate of analysts polled by Thomson Financial was for a profit of 33 cents a share in the December period. Looking ahead, the Bloomfield Hills, Mich., automotive retailer said it expects earnings from continuing operations of 26 to 30 cents a share for the first quarter and $1.40 to $1.50 a share for fiscal 2007. Wall Street's current consensus estimates are for earnings of 30 cents a share and $1.56 a share for the respective periods.
US Airways Group Inc. (NYSE:LCC - News) said PAR Investment Partners LP, which had been the carrier's largest holder, sold 6.5 million of its 13.5 million shares to help diversify its portfolio. After the sale, PAR Investment Partners will remain one of US Airways' largest investors, the stock will remain the largest position within PAR's portfolio, and Edward Shapiro, PAR vice president, will remain on the airline's board.
Vion Pharmaceuticals' (NasdaqCM:VION - News) shares slumped after the New Haven, Conn.-based company said it has agreed to sell up to $60 million of convertible senior notes due 2012 and warrants to purchase up to 7.8 million of its shares in a private placement. The offering is expected to close on Feb. 20. Vion expects to use the proceeds of the offering for general corporate purposes.
Watts Water Technology (NYSE:WTS - News) shares fell after the North Andover, Mass.-based maker of water safety and flow control products late Tuesday reported fourth-quarter net earnings of $18.1 million, or 51 cents a share, up from $15 million, or 45 cents a share, in the year-ago period. Revenue rose to $330.5 million from $244.4 million. Analysts polled by Thomson Financial were expecting a per-share profit of 61 cents on revenue of $313.5 million.
Weight Watchers International's (NYSE:WTW - News) fourth-quarter earnings rose to $44.3 million, or 45 cents a share, from $38.9 million, or 38 cents a share, a year earlier. Excluding a $6.3 million benefit from the reversal of tax reserves, earnings were 39 cents a share in the latest quarter. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of 39 cents a share, before items. The New York provider of weight-management services said revenue for the fourth quarter increased 14% to $285.5 million from $251.2 million a year ago. Wall Street was looking for revenue of $275 million. Weight Watchers expects 2007 earnings of $2.33 to $2.47 a share, including 2 cents a share of debt expense.

Published By Michael Baron of MarketWatch

Labels: AEM, AVNC, CHB, CHH, CRI, DAKT, FLWS, GPRO, HRS, LCC, LZB, MAS, ODP, PLA, PNM, TELK, TWAV, UAG, VION, WTW

Life Time Fitness (NYSE: LTM - News) and Town Sports (NasdaqGM: CLUB)
Since many people make New Year's resolutions to lose a few pounds, the time period between January and March is a good time to own fitness companies, says Cramer who chooses LTM as his "No. 1, best-of-breed, health club pick." He prefers LTM to CLUB, because it has better operating margins, higher revenue per customer and is not costly. In addition, Cramer comments that LTM has better and larger clubs and a superior business model. In spite of Prudential's negative rating, Cramer believes that LTM is a buy, regardless of the money the company will have to spend as it expands into wealthier areas, since the gym then will be able to charge higher prices.
Yo-Yo Diet Stocks: NutriSystem (NasdaqGS: NTRI) and Weight Watchers (NYSE: WTW - News)
Cramer commented that NTRI has gotten "crushed" because of its awful guidance; it was "flying high, then got pounded." He says that this stock is not safe to buyand is a "one-hit wonder," since its customers tend to abandon the product after 10 weeks, and everyone knows about the company. Cramer prefers WTW for growth and customer loyalty.
Mad Mail: Waste Services (NasdaqGM: WSII)
When asked how to buy WSII with a limit order, Cramer gave guidelines on how to respond to his picks, and discouraged viewers from buying stocks on the night he discusses them. Day one, an investor should do homework, day two, wait for other investors to give up and throw away the stock, and day three, do a mon' back (buy).
Published by SeekingAlpha

Labels: CLUB, Jim Cramer, LTM, Mad Money, NTRI, WSII, WTW

BCE Inc. (NYSE:BCE - News) said it was selling its satellite services subsidiary, Telesat Canada, in a deal valued at C$3.42 billion (US$2.96 billion). The acquirer is a company formed by Loral Space & Communications and Canada's Public Sector Pension Investment Board. Loral and PSP said as part of the deal, they will acquire the stock of Telesat Canada for C$3.25 billion (US$2.8 billion), plus the assumption of C$172 million (US$148 million) in debt.
BioSante Pharmaceuticals (AMEX:BPA - News) shares soared on news that federal regulators had approved its menopause treatment Bio-E-Gel.
Caremark Rx Inc. (NYSE:CMX - News) shares rose after the company received a $26 billion cash-and-stock buyout offer from Express Scripts Inc. (NASDAQ:ESRX - News) in an effort to break up the company's takeover deal with drug chain CVS Corp. (NYSE:CVS - News).
CenturyTel Inc. (NYSE:CTL - News) shares rose the company said it'll pay $830 million in cash and debt to buy Madison River Communications Corp., a provider of rural telephone and broadband services. The acquisition is expected to close in the second quarter of 2007.
Citigroup (NYSE:C - News) shares rose after Merrill Lynch upgraded the banking giant to buy from hold. Merrill cited several positive factors including revenue growth from an abating yield curve in 2007; Citi's "unparalleled" international presence; and less deal risk than its peers.
ConocoPhillips said Monday it signed an agreement to buy 376 ConocoPhillips fueling stations in six Eurpoean countries. Financial terms weren't disclosed. Conoco said it is selling 156 stations in Belgium, 49 in Finland, 44 in the Czech Republic, 30 in Hungary, 83 in Poland, and 14 in the Slovak Republic. The stations will be renamed Lukoil stations from Jet stations. ConocoPhillips also said it plans to increase its stake in Lukoil to 20% by the end of the year, as part of a strategic alliance unveiled in 2004.
ElkCorp (NYSE:ELK - News) shares surged after the company said it was being acquired in a deal valued at $1 billion by private equity firm the Carlyle Group. As part of the deal, Carlyle will pay $38 for each ElkCorp share outstanding, which represents a 6% premium to Friday's closing price of $35.85. The deal to buy the Dallas roofing company also includes the assumption of $173 million in debt. Separately, Carlyle is partnering with Hood Companies and its subsidiary Atlas Roofing Corp. When the acquisition of ElkCorp is completed, which is expected to be in the first quarter of 2007, Carlyle plans to merge ElkCorp and Atlas.
Exelixis Inc. (NASDAQ:EXEL - News) said it agreed to collaborate with Bristol-Myers (NYSE:BMY - News) on discovery, development and commercialization of cancer treatments. Under the collaboration, Exelixis will use its drug discovery platform and will identify and be responsible for pre-clinical development of small molecule drug candidates. Bristol- Myers will have the right to select up to three Investigational New Drug (INDs) candidates against three different targets and will lead all global activities, although the parties will co-develop and co-commercialize the programs in the U.S. Bristol-Myers will pay to Exelixis an upfront payment of $60 million in cash, and Exelixis will also receive $20 million for each of up to three different drug candidates selected by Bristol-Myers.
Harrah's Entertainment (NYSE:HET - News) is on the verge of being sold for at least $90 a share to two private-equity firms, Apollo Management and Texas Pacific Group, the online edition of The Wall Street Journal reported Sunday.
Icos Corp. (NASDAQ:ICOS - News) shares rose after Eli Lilly and Co. (NYSE:LLY - News) said it raised its offer price for Icos $34 a share, or about $2.3 billion, up from the original offer price of $32 a share. "We are confident that ICOS shareholders will recognize the substantial value and the certainty that Lilly is offering," said Sidney Taurel, Lilly chairman and chief executive.
Joy Global Inc. (NASDAQ:JOYG - News) said fourth-quarter net income rose to $85 million, or 71 cents a share, from $56 million, or 45 cents, a year earlier. The average earnings estimate of eight analysts surveyed by Thomson First Call was 66 cents a share. The Milwaukee mining technology company said sales for the three months ended Oct. 28 rose 21% to $689.3 million from $568.2 million.
MGM Mirage (NYSE:MGM - News) shares rose after the company and the Mashantucket Pequot Tribal Nation said Monday they inked a pact to build a new MGM Grand hotel/casino resort adjacent to Foxwoods Resort Casino. The new $700 million MGM Grand at Foxwoods is expected to open in the spring of 2008. The two entities will also develop additional gaming and non-gaming projects, both at Mashantucket and outside of Connecticut. They have formed a jointly owned company, Unity Gaming LLC, to acquire or develop gaming and non-gaming enterprises, including Indian and non-Indian gaming, throughout the United States and abroad.
Realogy (NYSE:H - News) shares jumped after private-equity group Apollo Investment agreed to buy the real-estate brokerage group for about $6.6 billion.
Refco Inc. (Other OTC:RFXCQ.PK - News), the derivatives broker that collapsed in scandal last year, said its Chapter 11 plan was confirmed by a New York bankruptcy court, clearing the way for its businesses to be finally shut down and creditors repaid a portion of what they were owed.
SanDisk Corp. (NASDAQ:SNDK - News) said its board authorized the repurchase of up to $300 million of common shares over the next two years. SanDisk, Milpitas, Calif., is a supplier of flash storage card products. Under the program, share purchases will be made from time to time in the open market.
Shares of Shaw Group Inc. (NYSE:SGR - News) surged on news over the weekend that the company, in a joint venture with Westinghouse Electric Co., had landed a contract to build four nuclear power plants in China. The deal, which still needs to hammer out final details, is reportedly worth just over $5 billion.
Smith & Nephew PLC (NYSE:SNN - News) said it canceled its merger negotiations with Biomet Inc. (NASDAQ:BMET - News). Earlier Monday, Biomet unveiled an agreement to be acquired for $10.9 billion by a private equity group that includes Blackstone Group, Goldman Sachs Capital Partners and Kohlberg Kravis Roberts.
Smith & Wesson Corp. (NASDAQ:SWHC - News) said it was buying privately-held firearms maker Thompson/Center Arms for $102 million in cash. The deal, which is expected to close in January 2007, is expected to add 1 cent per share to 2007 earnings. The Springfield, Mass. firearms maker said it now expects 2007 earnings, which will include a 10-cents-a-share charge as a result of the deal, to be 27 cents a share. Previously, the company had estimated 2007 earnings, prior to the acquisition charge, of 36 cents a share. For 2008, the company raised its earnings forecast to 60 cents a share from 52 cents.
Statoil (NYSE:NHY - News) said it would buy the oil and natural-gas division of Norsk Hydro, creating the world's largest offshore operator. Holders of Statoil get 67.3% of the new company while Norsk Hydro holders get the rest. Norsk Hydro will continue to operate as an independent aluminum producer.
Weight Watchers (NYSE:WTW - News) said it has launched a self-tender offer for up to 8.3 million shares of its common stock. The New York weight management services company said it would pay between $47 and $54 for each share.
Zila Inc. (NASDAQ:ZILA - News) said Chief Financial Officer Andrew Stevens has resigned to pursue other opportunities. The Phoenix pharmaceutical company said Vice President and Treasurer Diane Klein will assume Stevens' responsibilities until a new CFO is hired.

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