Jim Cramer Blog

Gum and candy maker Wm. Wrigley Jr. Co. said Monday its second-quarter net income climbed 21 percent, fueled by growing international sales and a weakened U.S. dollar.
Quarterly profit for the period ending June 30 rose to $169.8 million, or 61 cents per share. That's up from $140.6 million, or 51 cents per share, in the year-ago period. Results included a penny-per-share charge related to supply chain restructuring.
Revenue surged a better-than-expected 14 percent to $1.38 billion from $1.21 billion last year, beating Wall Street forecasts.

Labels: William Wrigley Jr. Co., WWY

A Family Affair: William Wrigley Jr. Co. (NYSE: WWY - News)
Most of the companies Cramer has featured in his series on "transformational CEOs" have brought the businesses back from oblivion. However, William D. Perez, CEO of WWY had a different challenge, because he was faced with having to make changes at a decent company without ruffling the feathers of the Wrigley family. While WWY was stagnant for years, Perez helped move the stock from $46 to $57 and introduced 80 new products last year. Although the stock is expensive at 25 times earnings, Cramer expects a huge upside and gives the stock a triple buy, adding " ... you can buy the stock and chew gum at the same time!"
Sell Block: IBM (NYSE: IBM - News), Bausch & Lomb (NYSE: BOL - News), Syntax-Brillian (NasdaqGM: BRLC), SunPower (NasdaqGM: SPWR), Evergreen Solar (NasdaqGM: ESLR), Trina Solar (NYSE: TSL - News), First Solar (NasdaqGM: FSLR), Cypress Semiconductor (NYSE: CY - News)
Beginning this week's Sell Block with CEO Wall of Shame, Cramer exonerated Sam Palmisano, CEO of IBM, because he is buying back shares and the stock gained 10%, and Ron Zarrella, CEO of BOL, who is making the right move by selling the company. His new inmate is Vincent Sollitto, because he "comes on our show, says everything's great... files an equity offer... tells us not to worry... says that I'm being a 'meany' because I highlighted him... and then he reports a miserable quarter." Moving on, Cramer would say goodbye to sun power stocks, because, like the dot.com craze in the 90s, "I think you are going to get a textbook case of oversupply." Cramer would sell every solar stock including SPWR, ESLR, TSL and even his favorite FSLR. The only company with a solar connection Cramer likes is CY, a semiconductor company which is aggressively buying back shares and owns "the lion's share" of Sunpower. He feels the company could be split in two and urges investors to "buy CY before it buys itself."
CEO Interview: Steven Ells, Chipotle Mexican Grill's (NYSE: CMG - News)
Steven Ells discussed the company's great quarter; "We think we do something differently, and people are really catching on." He feels his restaurants provide a fresh alternative to typical fast-food service, products and atmosphere, and focus on healthy choices. Providing quality is "the right thing to do," he continued, "and once people are turned on to it, they'll appreciate it." Cramer says CMG and Ells are "the real deal" and would buy the stock every time it declines.
Published by SeekingAlpha

Labels: BOL, CMG, CY, IBM, Jim Cramer, Mad Money, WWY

Cousins Properties (NYSE:CUZ - News) beat earnings on Monday after the close, announcing $0.50 EPS over an expected $0.46 EPS. CUZ's PowerRating is 6.
Ikanos Communications (NasdaqGM:IKAN - News) missed earnings on Monday afternoon; analysts were looking for -$0.20 EPS, but the company reported -$0.26 EPS. IKAN's PowerRating is 4.
Celanese (NYSE:CE - News) reports quarterly earnings on Tuesday before the bell; watch for $0.57 EPS. CE's PowerRating is 5.
Duke Energy (NYSE:DUK - News) is looking to report $0.40 EPS on Tuesday before the market opens. DUK's PowerRating is 4.
When International Securities Exchange (NYSE:ISE - News) announces earnings on Tuesday morning, watch for $0.37 EPS. ISE's PowerRating is 4.
Analysts are expecting Tyco (NYSE:TYC - News) to report 0.44 EPS when the company reports quarterly earnings tomorrow. TYC's PowerRating is 5.
Wrigley (NYSE:WWY - News) should report $0.49 EPS on Tuesday morning. WWY's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: CE, CUZ, DUK, Hot Stocks, IKAN, ISE, TYC, WWY

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Cousins Properties (NYSE:CUZ - News) beat earnings on Monday after the close, announcing $0.50 EPS over an expected $0.46 EPS. CUZ's PowerRating is 6.
Ikanos Communications (NasdaqGM:IKAN - News) missed earnings on Monday afternoon; analysts were looking for -$0.20 EPS, but the company reported -$0.26 EPS. IKAN's PowerRating is 4.
Celanese (NYSE:CE - News) reports quarterly earnings on Tuesday before the bell; watch for $0.57 EPS. CE's PowerRating is 5.
Duke Energy (NYSE:DUK - News) is looking to report $0.40 EPS on Tuesday before the market opens. DUK's PowerRating is 4.
When International Securities Exchange (NYSE:ISE - News) announces earnings on Tuesday morning, watch for $0.37 EPS. ISE's PowerRating is 4.
Analysts are expecting Tyco (NYSE:TYC - News) to report 0.44 EPS when the company reports quarterly earnings tomorrow. TYC's PowerRating is 5.
Wrigley (NYSE:WWY - News) should report $0.49 EPS on Tuesday morning. WWY's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: CE, CUZ, DUK, IKAN, ISE, TYC, WWY

American ExpressBusiness Risk: Below AverageEconomic Moat: WidePrice/Fair Value Ratio*: 0.83
American Express (NYSE:AXP - News) has a fantastic business model. Because Amex cardholders tend to spend more, on average, the company is able to levy a higher per-transaction fee on participating merchants. What's more, since Amex uses its own network to process transactions, it has access to the cardholder and merchant side of any transaction. As such, the company issues the card and maintains the customer relationship, keeps the entire fee it levies on merchants, owns the associated credit card receivable and the interest thereon, and has access to detailed spending data. Morningstar analyst Ryan Batchelor thinks the firm's late 2005 spin-off of its advisory unit, Ameriprise Financial (NYSE:AMP - News), has allowed Amex's flagship card-related business to really shine in 2006, and he sees a very bright future.
Wm. Wrigley Jr.Business Risk: Below AverageEconomic Moat: WidePrice/Fair Value Ratio*: 0.85
Wm. Wrigley Jr.'s (NYSE:WWY - News) significant miscalculation regarding the strength of acquired confectionery brands from Kraft Foods (NYSE:KFT - News) has caused consternation among investors. However, Morningstar analyst Mitchell Corwin believes the firm is taking positive steps, such as shuffling top management, improving innovation, and boosting advertising to revive the purchased brands and cement its U.S. leadership position in chewing gum. A slowly improving domestic business and continued international prosperity paint a bright long-term picture, in Corwin's view.
* Price/fair value ratios calculated using fair value estimates and closing prices as of Friday, Jan. 19, 2007.
Published by Jeffrey Ptak, CPA, CFA

Labels: AMP, AXP, KFT, WWY

Here are 7 stocks to watch for today. This list comes directly from the TradingMarkets Stocks Indicators page.
Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
Home Depot (NYSE:HD - News). Home Depot's PowerRating is 5.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term uptrends.
New River Pharmaceuticals (NASDAQ:NRPH - News). NRPH's PowerRating is 7.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order for us to be a buyer of a "Trading Window," we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average. You will enter if the stock trades above yesterday's high.
William Wrigley Jr. Co (NYSE:WWY - News). WWY's PowerRating is 7.
Trading Where the Action Is: This list contains the most volatile stocks over the past 50 trading days. These stocks are only for the most aggressive traders who are willing to assume a high degree of risk in order to capture larger gains.
U.S Global Investors (NASDAQ:GROW - News). GROW's PowerRating is 3.
Explosion List: An inherent feature of all markets is that periods of lower-than-normal volatility are usually followed by periods of higher volatility. These stocks are trading at one-third or less of their normal volatility and therefore have a high likelihood of exploding within the next few trading days.
Superior Energy (NYSE:SPN - News). SPN's PowerRating is 8.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
KB Home (NYSE:KBH - News). KBH's PowerRating is 3.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Hittite Microwave Corp (NASDAQ:HITT - News). HITT's PowerRating is 1.
PowerRatings are courtesy of PowerRatings.net

Labels: GROW, HD, HITT, Hittite Microwave Corp., Home Depot Inc., KB Homes, KBH, New River Pharmaceuticals, NRPH, SPN, Superior Energy, U.S. Global Investors, William Wrigley Jr. Co., WWY

Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
Kellogg (NYSE:K - News). K's PowerRating is 6.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term uptrends.
Potash Corp (NYSE:POT - News). POT's PowerRating is 6.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order for us to be a buyer of a "Trading Window," we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average. You will enter if the stock trades above yesterday's high.
William Wrigley Jr. Co (NYSE:WWY - News). WWY's PowerRating is 8.
Trading Where the Action Is: This list contains the most volatile stocks over the past 50 trading days. These stocks are only for the most aggressive traders who are willing to assume a high degree of risk in order to capture larger gains.
NS Group (NYSE:NSS - News). NSS's PowerRating is 3.
Explosion List: An inherent feature of all markets is that periods of lower-than-normal volatility are usually followed by periods of higher volatility. These stocks are trading at one-third or less of their normal volatility and therefore have a high likelihood of exploding within the next few trading days.
Laureate Education (NASDAQ:LAUR - News). LAUR's PowerRating is 7.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
AutoNation (NYSE:AN - News). AN's PowerRating is 4.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Express Scripts (NASDAQ:ESRX - News). ESRX's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: AN, Autonation, ESRX, Express Scripts, Kellog, LAUR, Laureate Education, NS Group, NSS, Potash Corp., William Wrigley Jr. Co., WWY