Jim Cramer Blog

Bullish:
SunPower (SPWR) and First Solar (FSLR): Cramer thinks that are all better alternative energy plays.
Sirius (SIRI): Likes better than XM radio.
Cummins (CMI): Don't walk away from. Take a little off the table.
Celgene (CELG): Buy instead of Amgen
Caterpillar (CAT): Let it come in..then buy.
US Steel (X) or Reliance Steel (RS).
China Finance Online (JRJC)
Bearish:
Headwaters (HW): Better plays in the energy sector.
XM Satellite (XMSR)
Tribune (TRB): Cramer thinks that the $34 per share deal will go through, even though it is a bad deal for employees, because Sam Zell is a man of his word. Employees should "Sell, Sell, Sell!"
Blockbuster (BBI): Don't have a good view of this stock. Don't buy.
Fossil (FOSL): Sell
CIT Group (CIT): Don't buy.
Arcelor Mittal (MT)
Amgen (AMGN):

Labels: CAT, CELG, CMI, FSLR, Jim Cramer, JRJC, Lightning Round, Mad Money, RS, SIRI, SPWR, X

Stocks drifted lower after data showed continued softness in the housing market, with investors once again hesitant to bid up stocks following Friday's strong rally. The Dow erased -57 points, while the Nasdaq and S&P 500 lost -15 and -13 points, respectively. Oil rose 95 cents to finish the session at $72.04.
The National Association of Realtors reported today that sales of previously owned homes in July fell the most in more than five years. The glut of unsold homes also climbed the most since 1991. The group reported that purchases declined -0.2% to an annual rate of 5.75 million homes. Inventories, meanwhile, were the equivalent of 9.2 months of supply. Sales dropped -9% and the median household value fell -0.6% to $228,900. The supply of homes for sale at the end of the month climbed 5.1% to 4.59 million.
On the political landscape, U.S. Attorney General Alberto Gonzales resigned from his post amid what has been a tenure marked by a political fight over the firings of federal prosecutors. He is expected to officially leave his post on September 17th.
On the M&A front, Home Depot (NYSE: HD - News) agreed to sell its HD Supply business to private equity for $8.5 billion, an -18% reduction in price offered at the onset of the deal. The financers that were part of the deal were looking for price cuts as the credit markets have recently gotten more difficult to navigate. Shares rose 1.6%.
Also in deal news, Taiwan based Acer agreed to buy computer maker Gateway Computer (NYSE: GTW - News) for $710 million, or $1.90 a share, a 57% premium to Gateway's closing price on Friday. The combined company would overtake Lenovo (OTC: LNVGY - News) as the third-largest maker of computers. United States Steel (NYSE: X - News) agreed to buy Canadian based Stelco for $1.1 billion in an effort to bolster its position in the flat iron steel market. U.S. Steel shares fell -0.4% on the session.
Shares of Altria Group (NYSE: MO - News), meanwhile, rose 1.3% after a Citigroup analyst predicted the tobacco company would announce the spin-off its international unit at a meeting on Wednesday. The move has been speculated upon for quite some time. Subscribers can read our analysis of Altria in today's issue.
By the BullMarket.com Staff

Labels: GTW, HD, LNVGY, MO, X

Citigroup (C) pulled together its emerging-markets credit group and its global credit-trading business. The combined group will be headed by Carey Lathrop, a nearly 20-year veteran of the bank who led the emerging-markets business.
Crocs (CROX), in an attempt to diversify its product line, will introduce a line of apparel for men and children. The apparel line, which Crocs intends to unveil today, will feature regular fibers, such as cotton, interwoven with a lightweight derivative of the pliable, plastic resin used to make Crocs' shoes. It will make its debut in stores in October.
Home Depot (HD) agreed to cut the price in its supply division sale to buyout firms by $1.8 billion, sources said on Sunday, as a housing market drop and a credit crunch forced all sides to renegotiate.
Marsh & McLennan (MMC) said it has agreed to buy back $800 million worth of its outstanding shares in an accelerated share repurchase transaction. The company said it will fund the transaction with proceeds from the recent sale of Putnam Investments and that it will conduct the purchase under the $1.5-billion share buyback authorization announced on Aug. 7.
Rambus (RMBS) said the special litigation committee established by the board has finished its review of stock options practices and submitted a final report to court. The special litigation committee was composed of two independent directors, J. Thomas Bentley and Abraham Sofaer, and it conducted its review with the assistance of independent counsel, the company said.
United States Steel (X) said it will buy Canadian steelmaker Stelco for $1.1 billion in a cash deal, including X paying $36.59 per share of Stelco.
Wal-Mart (WMT) is considering acquisitions in its home market as it seeks to open smaller stores and limit its reliance on giant supercenters for growth, the Financial Times reported.
Published by Minyanville.com

Labels: C, CROX, HD, Hot Stocks, MMC, RMBS, WMT, X

The three major indices started the week by bouncing around, with the Nasdaq ending down a hair and the Dow and S&P 500 up slightly. While the average retail price of a gallon of gas dropped overnight and down from its peak in May, gas and oil futures all climbed on the day. After a sell-off on Friday, the commodities rebounded today with light sweet crude leading the pack rising $0.88. Part of the boost came when the Iranian Minister of Petroleum declared supplies sufficient and that OPEC need not raise production. Saudi Arabia also informed Asian and European customers that July shipments would remain at June levels (which is -10% lower than contracted supplies for the time period). Natural gas closed down slightly.
Emcor Group, Inc. (NYSE: EME), a provider of electrical and mechanical services, upped its full-year earnings and revenue outlook. It is now estimating earnings of $2.75-3.00 per share, an increase from its previous forecast of $2.45-2.80 per share. The company credits the increase in a backlog from greater-than-expected contracts signed in the first quarter. Analyst expectations place earnings at $2.86 per share. The company simultaneously announced that the board had approved a 2-for-1 stock split to be paid as a 100% stock dividend on July 9th for shareholders of record as of June 20th. The stock climbed 8.4%.
Steelmaker Nucor (NYSE: NUE) offered revised guidance on its second-quarter earnings, warning that it would fare far worse than Wall Street's expectations. Today's announcement put earnings at between $1.05-1.15 per share, while analysts had expected $1.39 per share. The company blamed worsening market conditions and price decreases on the lowered guidance. Its shares fell -5.9%. U.S. Steel (NYSE: X) and Steel Dynamics (Nasdaq: STLD) were also down on the news.
After talk that the M&A boom might finally slow down, several small takeovers were announced. James River Group (Nasdaq: JRVR), a specialty property and casualty insurer, announced that it would be taken private by hedge fund D.E. Shaw Group. The hedge fund will purchase the financial services company for $575 million in cash or $34.50 per share. This offer is -1.9% less than the Friday trading price of $35.18. Forty-five percent of current shareholders have agreed to back the transaction.
Rexam Plc (Nasdaq: REXMY), a London-based drink can maker, agreed to buy Owens-Illinois' (NYSE: OI) plastics packaging business. The deal, worth $1.83 billion, will help Rexam to position itself to get into the medicine-packaging business, which it sees as a potentially lucrative market.
Discount airline AirTran (NYSE: AAI) extended an offer it put forward for regional carrier Midwest Airlines (Amex: MEH) through August 10th. The offer is for $15 per share and was first put out in April. The April offer is a bump up from a previous offer of $11.25 per share. Midwest Airlines has said that it intends to resist AirTran's hostile bid. Calyon Securities, meanwhile, downgraded AirTran to "hold" from "add." Its shares fell -2.9%.
By the BullMarket.com Staff

Labels: AAI, EME, JRVR, MEH, NUE, OI, REXMY, STLD, X

Here are 7 stocks for traders for Tuesday:
Everest Re (NYSE:RE - News) beat earnings on Monday, announcing $4.13 EPS over an expected $3.07 EPS. RE's PowerRating is 5.

Amgen (NasdaqGS:AMGN - News) matched earnings on Monday after the close with $1.08 EPS, but disappointed on revenue. AMGN's PowerRating is 3.
AT&T (NYSE:T - News) announces earnings on Tuesday before the bell; watch for $0.61 EPS. T's PowerRating is 5.
Brinker (NYSE:EAT - News) is set to announce $0.48 EPS on Tuesday before the market opens. EAT's PowerRating is 6.
When Jetblue Airways (NasdaqGS:JBLU - News) reports earnings on Tuesday morning, analysts will be watching for -$0.19 EPS. JBLU's PowerRating is 5.
Watch for Lockheed Martin (NYSE:LMT - News) to report $1.37 EPS before the market opens on Tuesday. LMT's PowerRating is 5.
Analysts expect U.S. Steel (NYSE:X - News) to report $1.88 EPS on Tuesday morning.
PowerRatings are courtesy of PowerRatings.net

Labels: AMGN, EAT, Hot Stocks, JBLU, LMT, RE, T, X

Reliance Steel (NYSE: RS - News), U.S. Steel (NYSE: X - News), Lone Star (NYSE: LSS - News): Cramer suggests buying RS which was up 3% on the deal between X and LSS, but is still "the cheapest that's left" in the consolidation-driven steel sector. Concerning the acquisition of LSS, Cramer said "What a deal!"
GlobalSantaFe (NYSE: GSF - News): Cramer thinks a "monster seller" is doing investors a favor by giving them an opportunity to buy GSF, which Cramer thinks may be a takeover or merger targetfor Seadrill.
Tata Motors (NYSE: TTM - News), Frozen Food Express (NasdaqGM: FFEX), RadioShack (NYSE: RSH - News): Cramer likes TTM as a secular growth story and doesn't think it will be affected by India's overheated economy. Cramer is looking into FFEX because of Bob Olstein's recommendation; "This guy, you've got to take down everything he says. That's how great he is." Cramer also likes RSH.

Labels: GSF, Jim Cramer, Jim Cramer's Stop Trading, LSS, RS, RSH, TTM, X

Lockheed Martin (NYSE: LMT - News): 'I think LMT is incredibly cheap. It's got a huge buyback. A question whether it even needs to be public. I would buy that stock hand over fist, every time it gets hammered. It's been a big winner, and it will stay a big winner.'Reliance Steel (NYSE: RS - News): 'RS is the cheapest stock left in the group. I look at RS, in the mid-$40s, and I think it's a travesty... The stock deserves to sell in the $50s... 'Freeport-McMoRan (NYSE: FCX - News): ' There are very few stocks that I feel have created value by merging in this country... FCX has created a giant colossus of copper... As the Chinese continue to buy copper, you are going to coin money FCX... I typically don't like the cyclicals right here. FCX is a buy, buy, buy, and I want you to stay long it. FCX, you rock!'Jacobs Engineering (NYSE: JEC - News): ' It has reported two great upside surprises. And it does not get the respect ... JEC is best in show.... trades very difficult... I think $90 goes to $110. I like the infrastructure group. They're doing a great job.'Foster Wheeler (NasdaqGS: FWLT): 'I like FWLT.'Transocean (NYSE: RIG - News): 'I've got to go with best of breed RIG. Long Live RIG!'GlobalSantaFe (NYSE: GSF - News)
Neutral calls:
Riverbed (NasdaqGM: RVBD): 'It has now pulled back to $26. There is a sense that the stock is played out, and the reason is that there's been so much insider selling. I am now in 'wait and see' mode in RVBD.... I can't pull the trigger on RVBD, until I see the quarter...'
Bearish calls:
United States Steel (NYSE: X - News): 'Swap out of X and get into RS.'Southwest Airlines (NYSE: LUV - News): 'it was the once-great - because no one else had its recipe... and now everyone's got its recipe... and now, it's a don't buy ... LUV has got to come down before I can recommend it.'Advanced Micro Devices (NYSE: AMD - News): 'I've got to take the extraordinary step of pressing every single bad button there is! Sell, sell, sell! The house of pain... There is no reason for AMD to live! It has no purpose! It has nothing going for it! If you're in AMD, I give you permission right now to leave, and sell that stock!'GameStop (NYSE: GME - News): 'The new product's dried up a little, so I've got to tell you, I would not buy GME until we get closer to the Christmas season. I think it does nothing for now.'Diamond Offshore (NYSE: DO - News): 'No. DO does not have the leverage to the world that RIG has. It has a little too much Gulf of Mexico for me ... I cannot bless that stock.'
Published by SeekingAlpha

Labels: AMD, DO, FCX, GME, GSF, JEC, Jim Cramer, Lightning Round, LMT, LUV, Mad Money, RIG, RS, X

It’s going to be a second week of heavy and influential corporate reporting for earnings hounds.
Reports from the likes of Boeing (BA), US Steel (X), Verizon (VZ), Exxon (XOM) and Comcast (CMCSA) will be in the spotlight and could impact the broader market. So far, the damage inflicted due to sub par results or just matching estimates has been minimal. However, sentiment did take a turn for the worse on both Thursday and Friday. Without corrective action, the thought is that similar results will beget further selling pressure as the idea of multiple contraction comes into play.Economic watchdogs are going to busy as well, beginning with a slug of reports on Wednesday. On that day, the FOMC meeting will take center stage, but other data could prove to be more important. Rates are widely expected to remain unchanged at 5.25%. However, price pressures and slightly better growth for the economy has sparked talk of potential increases. That said, the policy statement and any wording that might hint at the Fed’s intentions on the future path of rates will be important. For many investors, with earnings growth accepted as slowing down, without a rate cut provision sometime later this year, the view is that 2007 will be a bumpy one.Other economic data coming both before and after the FOMC statement could ultimately ease or inflate Fed policy and viewed as taking top billing for the week. The Q4 GDP out Wednesday morning is one that investors should be on the lookout for. The Street is looking for 3.0% annual growth, which has been quickly adjusted upwards since last month. Sinking gas prices, warmer temperatures in the northeast and a decent holiday shopping season are seen as being key catalysts for the bump up by analysts. Meanwhile, the core PCE price index is expected to show an increase of 2.2%. And on Friday, the jobs report will be dissected for any clues over a firm labor market which might lean the Fed towards a tighter monetary policy.
Monday
Economic: NAEarnings: Mattel (MAT), Phelps Dodge (PD), USG Corp (USG), Verizon (VZ), Schering (SGP), Atheros (ATHR), Gol Air (GOL), Zimmer (ZMH)
Tuesday
Economic: Consumer Confidence (109.5)Earnings: 3M (MMM), Black & Decker (BDK), Illinois Tool (ITW), JetBlue (JBLU), Merck (MRK), UPS (UPS), Cymer (CYMI), Flextronics (FLEX), SanDisk (SNDK), US Steel (X), Websense (WBSN)
Wednesday
Economic: GDP Advance (3.0%), Chain Deflator (1.7%), Employment Cost Index (1.0%), Chicago PMI (52), Construction Spending (0.0%), Weekly Crude, FOMC Policy (5.25%)Earnings: Altria (MO), Boeing (BA), Kodak (EK), CBOT (BOT), Hilton (HLT), OptionsXpress (OXPS), NYMEX (NMX), Eagle Matls (EXP), Gilead (GILD), Google (GOOG), Armor Hldg (AH), JDS Uniphase (JDSU), Starbucks (SBUX), Sunoco (SUN), Pulte (PHM)
Thursday
Economic: Inc & Spend (.5%, .7%), Weekly Claims (318K), ISM Index (51.5), Auto / Truck Sales (5.4M, 7.4M)Earnings: Archer Dan (ADM), Comcast (CMCSA), CVS (CVS), Exxon (XOM), Celgene (CELG), Monster (MNST), Under Armour (UA), Valero (VLO), Amazon (AMZN), Dolby (DLB), Electronic Arts (ERTS), Intuitive Surgical (ISRG), Rackable Systems (RACK), Silicon Motion (SIMO), Vertex (VRTX)Friday Economic: Nonfarm Pay (150K), Unemployment (4.5%), Hourly Earnings (.3%), Factory Orders (1.5%), Michigan (97.8) Earnings: Arch Coal (ACI), Chevron (CVX), NYSE Group (NYX), Oshkosh (OSK), Ventana Med (VMSI), Wendy’s (WEN)

Labels: AMZN, ATHR, BA, GILD, JBLU, JDSU, MAT, MRK, NYX, PHM, SGP, SIMO, USG, VLO, VZ, WBSN, X, XOM

Stock in U.S. steel makers rose on Monday after the world's biggest manufacturer said price weakness in North America had bottomed-out and 2007 profits were expected to surge.
Analysts also pointed to recent comments by Jim Cramer, a stock commentator on cable TV's CNBC, who was bullish on steel makers and processors. The biggest gainer among steel manufacturers was Nucor Corp. (NUE.N: Quote, Profile , Research), whose stock rose $4.53, or 7.73 percent, to $63.17 on the New York Stock Exchange in afternoon trading. US Steel Corp. (X.N: Quote, Profile , Research) was up 2.75 percent and Mittal Steel Co. NV (MT.N: Quote, Profile , Research) rose 1.29 percent. On the Nasdaq, Steel Dynamics Inc. (STLD.O: Quote, Profile , Research) rose 5.66 percent. Earlier in Amsterdam, Arcelor Mittal's (CELR.PA: Quote, Profile , Research)(ISPA.AS: Quote, Profile , Research) Chief Financial Officer, Aditya Mittal, told a conference the company expects to be able to increase profits in 2007 and that it would be better than 2006. He said price weakness in the United States in the fourth quarter had already bottomed out, while prices in Europe should start to recover in the first quarter of 2007. Mittal said he believed the steel sector as a whole would have a good year in 2007, given strong demand, solid economic growth and higher prices for steel used in making cars.
Also rising on Monday were the stocks of specialty metals and steel processing companies and analysts suggested it was a result of the positive steel comments. Also they cited the announcement by Airbus parent EADS (EAD.PA: Quote, Profile , Research) that it would go ahead with a new model of the A350 airliner, which will use lighter materials, including titanium and other metals. Allegheny Technologies Inc. (ATI.N: Quote, Profile , Research) , which last week said it expects strong growth in the specialty metals sector, saw its stock rise $4.86, or 5.52 percent, to $92.92 on the NYSE on Monday afternoon. Titanium Metals Corp. (TIE.N: Quote, Profile , Research) stock rose 4.13 percent and RTI International Metals Inc. (RTI.N: Quote, Profile , Research) was up 3.4 percent.
Source: Reuters.com

Labels: ATI, CELR, EAD, Hot Stocks, ISPA, Metal, MT, NUE, RTI, Steel, STLD, Stock Market, TIE, X