Jim Cramer's Mad Money Review

This site is dedicated towards tracking Jim Cramer's stock picks on his TV show Mad Money. Read about and discuss Jim Cramer's ability to move markets. Be ahead of the stock market. Get the news before its news.

Friday, September 29, 2006

Research In Motion (RIMM) Gets Upgraded, Stock Soars

Shares of BlackBerry maker Research In Motion Ltd. (RIMM), hit a 52-week high on Friday as analysts upgraded the stock after the company posted strong second-quarter results and forecast more of the same. RIMM reported results on Thursday evening. Not only did its performance beat its own forecasts and analyst expectations, but the company forecast third-quarter results that analysts variously described as "huge," "spectacular" or "phenomenal." Spurred by strong initial sales of its new, consumer-aimed BlackBerry Pearl device, RIMM predicted that during the third quarter it should be able to add another 800,000 subscribers to its current 6.2 million. This stock has gained huge momentum and is financially set to explode. Get into this stock while it is still afordable. This is an incredible money making opportunity.

posted by Stock Administrator @ 4:36 PM 0 Comments

Wednesday, September 27, 2006

Health Insurance Premiums Rise-Prudential (PRU)

Premiums to cover a family have vaulted 87% since 2000, more than four times the rate of inflation and the growth of wages. Experts say premiums would be rising even faster if employers, workers and insurers weren't making health care trade-offs. Many employers are restricting which family members are covered and are forcing workers to pay more before their insurance kicks in. Workers are paying more for checkups, to buy drugs or visit the emergency room. Insurers are limiting the choices that patients have by dropping the priciest hospitals, doctors and labs. It cost a record $11,480 to cover the average premiums for a family, and $4,242 to cover a single worker. Of that, workers still pay about the same share, 27% for family coverage and 16% for singles. But the rising overall tab meant workers had to dig deeper to cover their share of $2,973 for families or $627 for singles. As premiums continue to rise, insurance companies are looking more and more attractive. The favorite out of our bunch is Prudential (PRU).

posted by Stock Administrator @ 1:56 AM 0 Comments

Intel (INTC) Regains Leadership Over Avanced Micro Devices (AMD)

Intel (INTC), the world's largest chipmaker, announced shipments of microprocessors with four cores or brains had regained its technology leadership over its biggest rival Advanced Micro Devices (AMD). INTC's new Xeon server chips would offer a 50% increase in performance on dual-core chips released less than six months earlier. "I think our factories have hit turbo mode: the yields are fantastic,the factories are outperforming on every metric we have and there's very good demand in what is a tough year," Paul Otellini, the CEO, claimed. Intel shares closed nearly 3% higher in New York at $19.96 on the back of Mr Otellini's upbeat comments. INTC is a good play especially in the Technology sector bull market that has recently hit the markets.

posted by Stock Administrator @ 1:12 AM 0 Comments

Tuesday, September 26, 2006

Jim Cramer's Mad Money Review

Commodity prices are dropping, don't be scared to get in the game. They are ready to roar. Walgreen (WAG) is not a bear, it is undervalued and it needs to be picked up while it's so cheap. It has gotten a bad rap and is done going down. WAG could go to $70 a share if you price it like Pepsi (PEP). It is a 15 up, 4 down situation if you look at the risk vs. return. Cramer thinks the tech, pharma and finance industries are what you need to be in as the market reaches new highs. Overlooked IPO, DivX Inc. (DIVX) is associated with Google (GOOG) and Cramer loves anything with GOOG. This company however not only has hotness potential, it also has substance. They have an ideal business model with 89% gross margins and has plenty potential for growth.
Lightning Round
Bulls: MO, HAL, LNC, JNJ, HOG, WLT, SONC, GD, LTD, ADP, PRU, AUY
Bears: ESLR, IFLO, FCX, TIBX, PFG
Cramer came up with four stocks that matched his appropriate screening. They include: AMX, GOOG, AAPL, and DNA. DNA is the cheapest regarding earnings and has over 40 projects in the pipeline. It could have a 38% growth rate over the long term.Cramer also likes Lennar (LEN).

posted by Stock Administrator @ 10:09 PM 0 Comments

Starbucks Corporation (SBUX) Raise Prices

Starbucks (SBUX) is going to raise prices on its coffee. It's been two years since it raised the prices on its drinks, and what a difference a couple of years make. Starbucks' recent price-hike news has analysts this time extremely confident of the outlook of (SBUX). Fast-forward to the present, and Starbucks plans to raise the price of its prepared drinks by a nickel a pop, and increase the price of its beans by $0.50 a pound. It hasn't raised drink prices in two years, and it's been a formidable nine years since it increased what folks pay for its beans. Analysts expect this to add to (SBUX) earnings since the company believes in the loyalty of their customers. Expect to see (SBUX) reach as high as $40 a share.

posted by Stock Administrator @ 7:40 AM 0 Comments

Monday, September 25, 2006

Jim Cramer's Mad Money Review

Ten things every investor should know in order to make "Mad Money":
Hubris is not a good investment strategy. If your portfolio is very volatile, you are taking too much risk. Only speculate with 20% of your portfolio.
Don't take on enormous amounts of debt when trading. It is very reckless to go on margin, it's just too risky. Cut it back as soon as possible.
Don't think that you know more than the market. All markets are too big to be manipulated by long term.
If with a money manager, make sure you know where your money is going.
Make sure your money manager is diversified. No more than 20% in one sector.
Know who your manager actually is. Do research on him/her, how old (With age comes wisdom). Look for manager who has made money in bad markets.
Even the professionals get fooled, therefore protect yourself.
You have to take control of your own financial destiny. Diversification is the key to success.
Don't try to predict the unpredictable such as weather. Basing investments on weather is not a good idea. Betting has no place in this game.
Take profits while having them. They are just pieces of paper, do not become too attached.
Time Warner Inc. (TWX) is not done going up. They are bringing out the cable and the stock is gonna go to $26 a share. Get in now.
Lightning Round
Bulls: JNJ, BOBJ, CROX, GLW, AAPL, LVLT, VZ, NOK, MOT, CMCSA, OS
Bears: ZMH, TQNT, NYX, IKAN, PFE, SNDK, PTEN
Northstar Neuroscience Inc. (NSTR) is a very speculative play but make sure no more than 20% of your portfolio
Sudden Death:
Buy: AVY, SCHW (likes whole sector)
Sell: RTK

posted by Stock Administrator @ 9:06 PM 0 Comments

Apple (AAPL) Takes A BIte Out Of The Market

Shares of Apple Computer Inc. rose in Monday pre-market trading, after a ThinkEquity analyst raised his price target on the stock to $100, saying the computer maker is poised to gain from a successful back-to-school season and the upcoming release of its Leopard operating system. Expect to see strong gains in the tech field up until Christmas with AAPL leading the way

posted by Stock Administrator @ 7:40 PM 0 Comments

Chrysler (KCN) Goes Global

Chrysler (KCN) looks to become more globally competitive by focusing less on trucks and more on smaller cars. Tom LaSorda, president and chief executive of DaimlerChrysler AG's Chrysler Group, said trucks and bigger sport utility vehicles historically have accounted for more than 70 percent of Chrysler's U.S. sales. So the company has been hit harder than any other manufacturer by the shift toward more fuel-efficient vehicles, he said. With the production cuts and new models coming out, Chrysler should turn around in a few months, LaSorda said. KCN might be a good over the next year.

posted by Stock Administrator @ 3:58 PM 0 Comments

Thursday, September 21, 2006

Yahoo (YHOO) In Talks To Buy Facebook

Yahoo (YHOO) is in serious talks with Facebook on buying the social-networking site for an amount that could approach $1 billion. Facebook has also talked to Microsoft (MSFT) and Viacom (VIA). Expect to see (YHOO) walk away with the deal. This will help the stock recover from its recent lackluster performance. Once bought expect to see a nice jump on the news of the acquisition.

posted by Stock Administrator @ 6:19 PM 0 Comments

Richard Branson To Pledge $3 Billion

British business mogul Richard Branson said Thursday he would invest about $3 billion to combat global warming over the next decade.Branson, the billionaire behind the multi-platform Virgin brand, said the money would come from 100 percent of the profits generated by his transportation and airline sectors. It will then be invested in efforts to find renewable, sustainable energy sources in an effort to wean the world off of oil and coal.

posted by Stock Administrator @ 5:23 PM 0 Comments

Yahoo (YHOO) Adds Video Content-Google (GOOG)

Yahoo (YHOO) has partnered with Current TV, the viewer-generated TV network founded in part by former Vice President Al Gore, to launch several ad-supported video channels on Yahoo Video. Current Action covers action sports news and videos, like skateboarding, snowboarding, BMX and motocross. Current Driver showcases automotive content, and Current Traveler features video postcards and travel tips from destinations around the world. Several other channels are planned, with eight expected by the end of next year. For advertisers, the Yahoo Current channels grant access to a large audience of media-savvy young adults, and provide a rich environment to communicate with that audience, Jason Zajac, VP and general manager of social media at Yahoo, told ClickZ. Current TV's cable TV network launched a year ago, and is now available to more than 30 million homes in the U.S. The network recently began efforts to expand its online presence, with this marking its largest foray into Web-based video so far. This could provide (YHOO) with a sharp increase in ad revenue as well as close the competitive gap with Google (GOOG)

posted by Stock Administrator @ 7:38 AM 0 Comments

Grupo Simec Sa Ads (SIM) Is The Real Thing

Back on August 7th, we recommended Grupo Simec Sa Ads (SIM) when it was around $12.30 a share. Since then, it has been through some dips but worker its way up to $14.72 a share. Out of 23 companies within the steel industry, it is the top rated stock with respect to its rank and fundamentals according to Investors Business Daily. We believe this stock has a strong future and will continue going rising. You may want to invest some money in it while it is still cheap. Check out the 3 month chart from yahoo finance above.

posted by Stock Administrator @ 3:31 AM 0 Comments

Tuesday, September 19, 2006

Smithfield Food Inc. (SFD) Merges With Premium Standard Farms Inc. (PORK)

Smithfield Foods Inc. (SFD), the nation’s top pork producer, will acquire its largest competitor Premium Standard Farms Inc. (PORK) under an $810 million deal announced Monday. The boards of directors of Smithfield and Premium Standard Farms Inc. have unanimously approved a merger agreement in which Smithfield will acquire all shares of its competitor’s outstanding stock. The sale is expected to be completed in the first three months of 2007. The purchase of Premium Standard Farms is the latest in a long list of Smithfield acquisitions in the United States and around the world. They have made Smithfield the world’s largest producer and processor of pork products and a major player in the domestic beef industry. Smithfield’s 2006 sales topped $11 billion. This latest merger will increase Smithfield’s share of the domestic pork-production market to 18.5%, up from its current 13%, according to Jerry Hostetter, a spokesman for Smithfield. This is a big deal for SFD and increases shareholder wealth. Look for this stock to increase in the future.

posted by Stock Administrator @ 7:53 AM 0 Comments

Crude Prices Rise On New Iran Jitters, Delays In BP PLC (BP)

Oil prices inched past $64 a barrel Tuesday in Asia, as traders reacted to news that output at a large BP PLC (BP) platform in the Gulf of Mexico would not be restored until mid-2008, at the earliest. Oil traders were also cautious after Iran's latest threat to halt nuclear inspections if the U.N. went ahead with sanctions over its enrichment program. Despite the gains, energy futures have been in a tailspin in recent weeks due to a combination of soaring global inventories, a weakening U.S. economy and a perception of reduced geopolitical and hurricane threats. Europe's second-largest oil company announced Monday that new undersea equipment failed during a test and would need to be rebuilt. Analysts fear Tehran will respond to any U.N. sanctions by shutting off pipelines and disrupting oil tanker shipments in the region, possibly breaking into the supply chain. Depending on how the U.N. talks go with Iran, it may be a good time to speculate on oil.

posted by Stock Administrator @ 7:40 AM 0 Comments

Monday, September 18, 2006

Jim Cramer's Mad Money Review

Everybody unloaded Freescale Semi (FSL) , once dropped by Motorola (MOT). FSL was bought out for over 30% from a private equity firm. You need to find next big buyout story. The private equity guys are getting into technology. Why was Freescale bought out? It was a cheap stock that was ready to move, also it was MOT chip division spin off. Stocks that look like Freescale: Atheros Communications Inc. (ATHR) which is cheap at 20 times next years earnings and Broadcom Corp. (BRCM) which is also cheap. Even if these stocks do not get bought out by private equity firms, both are good stock plays on their own. In order to speculate, you need to realize that it is not the same thing as gambling. Spin offs that weren't loved that should be looked at as buyouts include: Verigy Ltd (VRGY) which is longer term around 20 months and Novelis Inc. (NVL) which is short term as early as January.
Lightning Round
Bulls: LIFC, BOOM, SCG, MOT, F, BBY, MDR, RACK, HITT, ANF
Bears: FDC, SMSI, CHRT, NOK, RSH, NVE
Sometimes forgotten stocks that haven't made money for investors in a long time, turn around and get hot again. There is a hot story about Inernational Paper (IP). They are expected to buy back 20% of shares outstanding. Also natural gas needed to produce paper has come down big. They are also one of the largest real estate owner's in the United States. They began selling off their real estate and timber and concentrating on their paper manufacturing business. There is also speculation of a raised dividend and they are expected to cut employees which will increase profits.

posted by Stock Administrator @ 6:59 PM 0 Comments

Ford (F) and General Motors (GM) Possible Merger

According to Reuters, General Motors Corp. (GM) and Ford Motor Co. (F) have discussed a possible merger or alliance. The two companies, both struggling with shrinking market shares while restructuring operations, are not currently holding talks. However, keep an eye on these two auto giants in the upcoming weeks, we feel that this senario will result in a strong American alliance that could regain market share from foreign companies such as Toyota. It is a speculative play but expect a huge upswing in both stocks if news of the merger is confirmed.

posted by Stock Administrator @ 4:10 PM 0 Comments

Schering-Plough (SGP) Possible Merger With Brystol-Myers (BMY)

Schering-Plough Corp. (SGP) is seriously considering approaching Bristol-Myers Squibb Co. (BMY) about a possible merger, a move that would combine two of the biggest names in the pharmaceutical industry, the Star-Ledger of Newark, N.J., reports in Friday's editions. Such a deal would give Schering-Plough a coveted drug-discovery pipeline and a formidable stable of cancer treatments and antiviral therapies for HIV/AIDS and hepatitis C. For Bristol-Myers, which this week fired its chief executive amid a criminal probe, Schering-Plough would bring much-needed revenue from the hot-selling cholesterol fighter Vytorin and CEO Fred Hassan, an experienced turnaround artist who is among the most respected leaders in the industry, according to the Star-Ledger. If such a merger closes, expect the price to rise. These two stocks could be good speculative plays based on this pending deal, not to mention that SGP is a good stock to buy at this point.

posted by Stock Administrator @ 1:35 PM 0 Comments

Thursday, September 14, 2006

Starbucks Corporation (SBUX)

SBUX which is roughly 6 points off its 52 week high has been attracting a lot of attention as of late. With gas prices dropping, consumers are expected to begin spending more, especially on service industries, more specifically SBUX. We agree with Cramer that SBUX will reach $40 a share. Look to buy on a correction and hold until it reaches around $38 a share, which is where it saw resistance around its 52 week high, then ring the register.

posted by Stock Administrator @ 1:00 PM 0 Comments

Microsoft Corp. (MSFT) Raises Dividend

Microsoft Corp. (NASDAQ:MSFT - News), the world's biggest software maker, on Wednesday said its board declared a quarterly dividend of 10 cents per share, an increase of 1 cent over the previous quarter.The dividend is payable on December 14 to shareholders of record on November 16, the company said.

posted by Stock Administrator @ 5:29 AM 0 Comments

DELL (DELL) Establishes New Plant In India

DELL (DELL) said it would locate its first Indian manufacturing facility in the state of Tamil Nadu, following a memorandum of understanding between the firm and state officials. DELL said that in its most recent operating quarter, its shipments in India increased 82%, while revenue grew 63%. It is expected that manufacturing will begin in India in the first half of 2007, initially focusing on desktop computers, which make up about 70% of its current business in India. Watch for DELL to begin outsourcing more of its operations in order to cut costs and generate more revenue. DELL could be a good buy once it becomes a little cheaper, but give it a little time before pulling the trigger.

posted by Stock Administrator @ 5:28 AM 0 Comments

Schering-Plough (SGP)

Biotechnology firm Codexis says it has reached an important development milestone in its effort to design a biocatalytic process to produce a key intermediate for a Schering-Plough drug (SGP), reducing manufacturing costs and environmental waste. This platform technology can create new intellectual property opportunities, which can help extend the lifetime of drug products. Look to see a positive push in SGP in the upcoming weeks.

posted by Stock Administrator @ 2:39 AM 0 Comments

Jim Cramer's Mad Money Review- Level 3 (LVLT)

YouTube is hot, it has surpassed Myspace. Not publicly traded however. You want Level 3 Communications (LVLT) because as of yeterday, they won the contract to provide YouTube high-speed internet access and services. We have a growing shortage of broadband in the country. Due to the broadband shortage, LVLT is in excellent position to capitalize on this. They are also getting out of debt and is one of the few telecom survivors that is not tarnished or tainted. This allows LVLT to be an excellent takeover target. You need to learn from Krispy Kreme (KKD) on when to sell. Here are some things that should raise the red flag to sell: Does not file financial statements; COO & CFO leave within 9 months of eachother; accounting irregularities; and the worst one, terrible trajectory. KKD was purely a momentum play and once they missed estimates, they never recovered. This is similar to Hansen Natural Corp. (HANS) who recently missed estimates and has dropped significantly. This was a momentum play and Cramer thinks they will not recover.
Lightning Round
Bulls: F, WPS, GM, DCX, NBR, NOV, CLB, TYL, ORCL, WHR, LVS, IGT, AMGN, PCAR, USG, GOOG, MC, INTC
Bears: DRC, LF, COGN, TNB, SNE, EMKR
Cramer likes Medicis Pharmaceuticals (MRX) which helps defer wrinkles below the nose. There is a huge untapped resource for wrinkle free skin due to capitalism. This is good company with plenty of room to grow. Sudden Death Buys: MOT, NOK, FDC, DYN

posted by Stock Administrator @ 1:05 AM 0 Comments

Wednesday, September 13, 2006

Jim Cramer's Mad Money Review- Google (GOOG), USG CP (USG)

Bristol Myers Sqibb (BMY) canned CEO Peter Dohan and jumped up $.59. Cramer believes it could reach $26/share or even high as long as the new CEO is good. Other CEO's that could destroy the value of their companies include: Andrea Jung (AVP); Michael Cherkasky (MMC); Ronald Zarrella (BOL); Bob Nardella (HD). Cramer also hyped up Google (GOOG) due to the calendar. Hedge funds only worry about the earnings of 2006 for the 1st 8 months of the year, then once September comes around, they look at 2007 earnings. GOOG sells 31 times earnings, which is below its growth rate multiple of 34% which is a very bullish signal. Cramer believes GOOG is going to earn atleast $12.50/share and could go as high as $14. He also thinks it has a good chance reaching $500/ a share.
Lightning Round
Bulls: CSCO; SNDK; RIMM; BBY; SWHC; QCOM; ZNT; MET; UARM; SBUX
Bears: DNA; JOYG; PDC; CNP
Finally, Cramer likes whatever Warren Buffet is buying. Right now Buffet is buying USG Cp (USG) hand over fist. He already owns 17% of the company and he is not stopping. There are talks of him wanting to own 50% of this company. USG emerged from bankruptcy in 2006 and net earnings increased 60% to $176 million but it could be worth double that. 2Q in 06 net sales increased 22% to a record level of $1.6 billion. Bottom Line: housing is getting too much bad press and USG is a buy.

posted by Stock Administrator @ 4:04 AM 0 Comments

Tuesday, September 12, 2006

Dell Misstates Financial Reports

Pc maker Dell (DELL) has postponed share repurchases due to a government probe into its prior quarters' accounting. The investigation revealed that Dell may have misstated prior financial reports from 2002 to the present. The market reacted negatively to the news with shares falling to 20.77 in pre-trading, a drop of 4.1 percent. In the last year the company's market value has dropped by 37 percent to about $49.2 billion. ENN reported in August that Dell's second fiscal quarter net profit had dropped from $1.02 billion a year ago to $502 million. This equates to a 46 percent drop in earnings per share from 0.41 to 0.22 for the respective quarters. Dell suffered another blow last month when it was forced to recall 4.1 million laptop batteries worldwide that can potentially overheat and pose a fire hazard. It would be prudent to avoid buying DELL until they get a couple quarters of profitability under their belt.

posted by Stock Administrator @ 1:10 AM 0 Comments

Monday, September 11, 2006

Jim Cramer's Mad Money Review- SGP, LLY, WYE

Out with the old and in with the new. The hedge funds are running from the energy sector and investing in the Big Pharma sector. In order to figure out which pharmacuetical stocks to invest in, you need to look into the pipeline of each company. There are 3 things to look at: current drugs that will be repeated; current patents the company owns; and exciting new drugs in development. Cramer gave his favorite 3 Big Pharma plays: Schering Plough CP(SGP); Eli Lilly CO(LLY); and Wyeth(WYE). Other favorable plays include: ABT; JNJ; BMY; MRK; PFE;