Jim Cramer's Mad Money Review

Stocks plodded higher Thursday as Wall Street reacted warmly to another batch of acquisitions and shrugged off a weak reading of the nation's gross domestic product.
The latest estimate of first-quarter GDP came in at 0.6 percent, the Commerce Department said, lower than the average economist estimate of 0.8 percent and the 1.3 percent projected in April. The GDP number was the worst in more than four years, but investors did not sell off, as it raises the chance of an interest rate cut later this year -- a move that could increase spending.
And although Wall Street remains unsure about the economic and interest rate outlook, it continues to be buoyed by the unrelenting surge of takeovers, which are on track to beat last year's record tab of $4 trillion.
On Thursday, banking company Wachovia Corp. said it would acquire A.G. Edwards Inc. for $6.8 billion in cash and stock to form one of the largest retail stock brokerages in the country. And payroll processor Ceridian Corp. said late Wednesday it will be bought out by investment firm Thomas H. Lee Partners LP and insurance provider Fidelity National Financial Inc. for about $5.3 billion.
In the first hour of trading, the Dow Jones industrial average gained 19.02, or 0.14 percent, to 13,652.10, after reaching a new trading high of 13,673.07.
Broader stock indicators also rose.
The Standard & Poor's 500 index advanced 2.92, or 0.19 percent, to 1,533.15, after soaring to a record close on Wednesday for the first time since March 2000.
The technology-dominated Nasdaq composite index added 9.81, or 0.38 percent, at 2,602.40.

Source: AP

Labels: AGE, CEN, COST, FNF, SHLD, TIF, WB

Texas Utilities (NYSE: TXU - News), Exelon Corp. (NYSE: EXC - News), Edison International (NYSE: EIX - News), Dominion (NYSE: D - News): Since the Texas Utilities buyout "changed the equation," Cramer says he is "scared to death to bet against this group," and adds that EXC, EIX and D are all undervalued.
Total System (NYSE: TSS - News), Synovus (NYSE: SNV - News), Aon (NYSE: AOC - News), Marsh McLennan (NYSE: MMC - News), Ross Stores (NasdaqGS: ROST - News), Cheesecake Factory (NasdaqGS: CAKE - News): Cramer lists companies that could get snapped up it the private-equity buyout frenzy: TSS and parent company SNV, Aon and "headless horseman" MMC (whose CEO Michael Cherkasky may soon end up on Cramer's CEO Wall of Shame), ROST, and CAKE.

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Labels: AOC, CAKE, D, EIX, EXC, Jim Cramer, MMC, ROST, SNV, Stop Trading, TSS, TXU

Yamana Gold (NYSE: AUY - News): ' I am sticking by AUY as my play for when things go bad. That's what it is. It's basically a first aid kit you've got to take with you everywhere you go.'Total System Services (NYSE: TSS - News): 'You are in great shape. TSS, I believe, will not be independent a year from now ... I like TSS as a takeover. And, on earnings, it should go to $40 alone.'Celgene (NasdaqGS: CELG - News): 'The stock's had a nice pullback, which means you should back up the truck. Every time we've had an 8% pullback in CELG, it has been miraculous to buy. I'm saying this time it will be no different.'Sappi Ltd. (NYSE: SPP - News): ' ... we've got a government that's of, by and for the corporation, trying to keep the ChiComms from flooding us with paper, so this South African company can make a lot of money, and it's working! You stay long SPP!'Volvo AB (Other OTC: VOLVF.PK - News): You're a genius! That is an unbelievable stock! ... It has a great industrial business. It has a great yield ... even right here at $21 bucks - I would back up the truck!'Freeport McMoran (NYSE: FCX - News): 'It's also got gold, and it's much more levered to China buying it. Those ChiComms eat copper for breakfast!'
Neutral calls:
ConAgra (NYSE: CAG - News): 'They have a raw cost problem. All of that stuff is being bid up by ethanol. And so I can't get behind that. CAG, just okay. Candidly, I recommended it right here, and I'm not backing away from it, but the raw costs are out of control.'
Bearish calls:
Electronic Arts (NasdaqGS: ERTS - News): 'You know what? I'm giving up on this one... I'm putting the 'don't buy' on it. That's a change in plans.'Finisar (NasdaqGS: FNSR - News): 'No. I liked FNSR ... Their time has passed. They didn't get the big orders.'Washington Group (NYSE: WNG - News): 'My friend... Bulls make money, bears make money... hogs get slaughtered! You must sell WNG right now!'Southern Copper (NYSE: PCU - News): 'I like PCU.... I think FCX is better.'Build-a-Bear (NYSE: BBW - News): ' if I go and recommend it on this show, that they will then have a shortfall, because they are wildly inconsistent. They are too dangerous for this guy ... If that stock were to go back to $25.00, I would pull the trigger.'

Published by SeekingAlpha

Labels: AUY, BBW, CAG, CELG, ERTS, FCX, FNSR, Jim Cramer, Lightning Round, PCU, SPP, TSS, VOLV.PK, WNG

Matchmaker, Matchmaker! Yahoo (NasdaqGS: YHOO - News) and eBay (NasdaqGS: EBAY - News)
While Cramer does not suggest investing in either of these companies individually, he would buy Yahoo and eBay if they merged. They were both downgraded by Merrill Lynch, and with slowing growth, Cramer does not see much upside in the individual companies, but he doesn't think they will sink either. While both companies have been depending on buybacks to prop up their stocks, Cramer says eBay and YHOO sould grow together, since Yahoo has users and eBay has Skype and Paypal. A merger would create an "internet colossus" which would offer a credible challenge to Google.
Cleveland Cliffs (NYSE: CLF - News), CVRD (NYSE: RIO - News)
Takeover speculations are profitable for companies, even if the mergers don't happen, says Cramer, who discussed CLF, the largest iron ore pellet producer in North America. He thinks this stock will attract call options and experience a run-up on takeover rumors, and thinks a likely buyer may be RIO. Cramer predicts the company could be sold at $88 a share, which he says is a conservative estimate. Although the stock is up 10% from where he initially recommended it, Cramer says CLF has "tremendous upside."
CEO Interview: John McMahon: Genesis Lease (NYSE: GLS - News) with GOL (NYSE: GOL - News)
When Cramer asked why airlines would want to rent airplanes, John McMahon replied not all airlines can afford to purchase their own aircrafts. He commented on the new company's increasing client-base and is optimistic about future growth. Cramer commented that he would rather own GLS than any other airline except for GOL.
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Labels: CLF, EBAY, GLS, GOL, Jim Cramer, Mad Money, RIO, YHOO

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Chico's FAS (NYSE:CHS - News) beat earnings on Wednesday afternoon, with $0.28 EPS over a consensus of $0.26 EPS. CHS's PowerRating is 5.
Payless ShoesSource (NYSE:PSS - News) beat earnings on Wednesday after the close, announcing $0.65 EPS over an expected $0.58 EPS. PSS's PowerRating is 5.
Big Lots (NYSE:BIG - News) announces earnings on Thursday before the market opens; watch for $0.20 EPS. BIG's PowerRating is 4.
Costco (NasdaqGS:COST - News) reports quarterly earnings on Thursday before the bell, with analysts looking for $0.56 EPS. COST's PowerRating is 5.
When Genesco (NYSE:GCO - News) announces earnings before the market opens on Thursday, be looking for $0.26 EPS. GCO's PowerRating is 3.
HJ Heinz (NYSE:HNZ - News) should report $0.55 EPS on Thursday morning. HNZ's PowerRating is 5.
Analysts are watching for Jackson Hewitt (NYSE:JTX - News) to report $1.93 EPS before the market opens on Thursday. JTX's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: BIG, CHS, COST, GCO, HNZ, Hot Stocks, JTX, PSS

Mastercard (NYSE: MA): After Bear Stearns gave MA an outperform rating and a price target of $184, the stock rose 2% to $141.82. Cramer says MA is going "much, much higher."General Mills (NYSE: GIS), Kellog (NYSE: K): Cramer says GIS and K are exceptions to the market's surprisingly "soggy" trading action.

Labels: GIS, Jim Cramer, K, MA, Stop Trading

Six Bulls: John Deere (NYSE: DE - News), Monsanto (NYSE: MON - News), Sociedad de Chemica (NYSE: SQM - News), Caterpillar Inc. (NYSE: CAT - News), Terex (NYSE: TEX - News), Manitowoc (NYSE: MTW - News), Foster Wheeler (NasdaqGS: FWLT - News), McDermott International (NYSE: MDR - News), Jacobs Engineering (NYSE: JEC - News), Boeing Co. (NYSE: BA - News), Halliburton (NYSE: HAL - News), Royal Dutch Shell (RDS-A), Exxon Mobil (NYSE: XOM - News), Freeport McMoran (NYSE: FCX - News), Lundin Mining (AMEX: LMC - News)Cramer dedicated the program to discussing six bull markets and recommending stock picks for each sector.Agriculture: Cramer commented on a "disturbing" editorial in the New York Times which called for an end to agricultural subsidies, but he is confident the policy will never be enacted. Cramer calls Deere "money in the bank" and notes that it sells at 16x earnings and has a 12% growth rate. While Monsanto, which trades at 35 x earings "will never be cheap," Cramer says its 24% growth rate is worth the price at $60, and he would buy it up to $70. The Chilean fertilizer company, SQM, is the world's largest supplier of lithium which goes into batteries and will be in shorter supply as "the greening movement reaches its nauseating zenith."Machinery While he confesses amazement that CAT is stalled, Cramer says it is "preposterously cheap" trading at 13x earnings with 12% growth. He adds CAT has great international exposure, will benefit from the collapse of its Japanese competitors, and is a solid infrastructure play. While he also likes TEX and MTW, Cramer thinks CAT is still best-of-breed.Infrastructure: Cramer calls this the "wildest" bull market which will benefit from oil prices and the need to create alernative power plants and petroleum infrastructure. Even though Foster Wheeler and McDermott International have had "tremendous runs" Cramer notes FWLT sells at just 17x next years earnings with 34% growth, and MDR has 14% growth and sells at 17x earnings. He adds these stocks do not get enough coverage on Wall Street, and would buy them. Cramer gives Jacob's Engineering and honorable mention, although is more expensive than the other two.Aerospace:Boeing is up only 10% when the rest of the sector has risen 22%, and Cramer comments, "It's a laggard. It should be leading." Boeing sells at 20x earnings and has 18% growth. He thinks the company has a good future given the health of the sector, its international business, and some "amazingly-terrible problems at AirBus."Oil and Gas: After a run for this sector, it was down on Tuesday; "People are just thinking it's over, because oil is down 2 bucks," said Cramer and he expressed confidence that the sector would bounce back. In spite of its "giant" buyback, "robust" outlook for oil and gas and its international exposure, Cramer notes HAL is down 12% from last year. Cramer likes Royal Dutch Shell with 10x earnings, 8% sales growth, and a yield at nearly 4%. While Exxon Mobil was down on Tuesday, it is still "a go-name for big institutions."Minerals: Cramer says rumors of full copper inventories are "nonsense," because the Chinese need more copper. He likes copper play FCX and says its gold is a good hedge against inflation. He notes the company sells at only 9x earnings, but he predicts a 12x multiple. Cramer added the quarter was not good due to strikes and the cost of its Phelps Dodge deal, but predicts it will benefit from copper demand. He also likes Lundin which he thinks will go from $12 to $15 on the Tenke Mining deal in late June.Published By SeekingAlpha

Labels: BA, CAT, DE, FCX, FWLT, HAL, JEC, Jim Cramer, LMC, Mad Money, MDR, MON, MTW, SQM, TEX, XOM

Anadarko Petroleum (NYSE: APC): 'I like APC. They loaded the boat up with properties. They still have to pay down some things.'XTO Energy (NYSE: XTO): 'I think APC is good, but I think that XTO rocks the boat, and will beat APC - in the long term race - to $100.'URS (NYSE: URS): 'They finally did something. They bought Washington Group. They got it cheaply, and the stock is, at last, on the move ... Buy, buy, buy! ... Washington is historically not a great operator. But at least there is a pulse at URS.'Level 3 Communications (NasdaqGS: LVLT): 'LVLT is going to sink or swim on the fundies. I think the fundies are good. I want to back up the truck in the mid $5s... 'Olin (NYSE: OLN): ' OLN did not buy Pioneer, they stole Pioneer! ... OLN's on the move... They suddenly have religion. Buy, buy, buy!'Carmike Cinemas (CKE): 'This is the one to play. I would sell the others and buy that one, and that's new information from me.'General Maritime (NYSE: GMR): 'Peter Georgiopolous, CEO and founder of GMR is the guy we back... He spent a lot of money buying back stock. He's got the safest yield. That's who we're going with.'Edison International (NYSE: EIX): 'EIX is one of the great... The utilities had an unbelievable bull market, but that's just one of the effects of the utilities... they're reorganized, they're terrific.'Consolidated Edison (NYSE: ED)Dominion (NYSE: D)Cisco (NasdaqGS: CSCO): 'This is a stock that is growing at 15% that has a 20x multiple ... It just didn't say the right things on the conference call ... Let's buy some CSCO here.'Toyota Motor (NYSE: TM): 'The only stock I'm recommending over there [Japanese Market] is Toyota Motor, and even that's stalledthat's stalled. Although I do like that, and I own it for my charitable trust, and I continue to buy that stock.'Vodafone (NYSE: VOD): 'I'm going to send you to Vodafone after that beautiful quarter. VOD's got growth.'Wal-Mart (NYSE: WMT ): 'You know I'm a backer of WMT down here... Good article about China and WMT in The Wall Street Journal.'Bearish calls:Stratasys (NasdaqGS: SSYS): 'Computer-aided design and automation for semiconductors. No thank you. I want you to take your money and run there. Sell, sell, sell!'Ultra Clean Holdings (NasdaqGS: UCTT): 'No ... if the semiconductor capital equipment business is in bear market mode, I don't want to touch it.'DivX (NasdaqGM: DIVX): 'We are not going back to DIVX. Sell, sell, sell! 'American Eagle Outfitters (NYSE: AEO): 'AEO is too hard for me, my friend ... I am strictly going to put it in the 'don't buy' category.'Cinemark (NYSE: CNK - News)Regal Entertainment (NYSE: RGC)Nippon Telegraph & Telephone (NYSE: NTT): 'I don't like the Japanese market at all... NTT does not have growth.'
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Labels: AEO, CNK, CSCO, DIVX, ED, EIX, GMR, Jim Cramer, Lightning Round, LVLT, Mad Money, OLN, RGC, SSYS, TM, UCTT, URS, VOD, WMT, XTO

CDW Corp. on Tuesday announced that the distributor of hardware, software and technology accessories has agreed to be acquired by a private equity company in a $7.3 billion deal.
Under the agreement with Chicago's Madison Dearborn Partners LLC, CDW shareholders will receive $87.75 in cash for each share of common stock, CDW said in a news release issued after the close of business.
CDW said that's a 16.1 percent premium over the Vernon Hills-based company's $75.56 closing share price Friday and a premium of approximately 31.4 percent over the average closing share price during the previous 90 trading days.
Earlier Tuesday, CDW's shares rose to $83.11, a seven-year high, after The Wall Street Journal reported it was in talks to be acquired. The acquisition is expected to be completed by early in the fourth quarter of this year.
The 23-year-old CDW buys computers and related equipment from such manufacturers as Hewlett-Packard Co., IBM Corp. and Apple Computer Inc. and markets them to small and mid-size businesses, governments and school systems, customizing the products and offering other services.
Last year, CDW earned $266.1 million on sales of $6.8 billion. The stock, which has traded as low as $50.28 in the past 52 weeks, topped its previous 52-week high of $79.71.
Source: AP

Labels: CDWC, HPQ, IBM

Oil prices plunged by more than $2 a barrel Tuesday on hopes that the inauguration of a new president in OPEC member Nigeria would contribute to a stable supply from the Niger Delta region.
A formal meeting over the weekend between U.S. and Iranian officials also soothed traders' concerns about a potential conflict between the two countries.
Light, sweet crude for July delivery dropped $2.05 to settle at $63.15 a barrel on the New York Mercantile Exchange. Before the long weekend, U.S. crude oil climbed more than $1 to $65.20 Friday. Monday there was no floor trade and no closing price in the U.S. because of the Memorial Day holiday.
Brent futures for July lost $1.58 to close at $68.15 a barrel on London's ICE Futures exchange. In other trading, gasoline futures fell 10.58 cents to settle at $2.2979 a gallon after several refineries restarted on Tuesday. Dow Jones Newswires reported that Alliance Oil's refinery in Belle Chasse, La., and Valero Energy Corp.'s refinery Delaware City, Del., are both restarting. Together, the refineries process 428,500 barrels of crude oil a day.
Traders had bid up futures prices before the Memorial Day holiday, the unofficial kickoff to the summer driving season. However, retail gasoline prices fell last week, the Energy Information Administration reported.
The average retail price for gasoline dipped less than a penny to $3.209 a gallon from $3.218 a gallon in the previous week. Prices, though, are still 34.2 cents higher than a year ago.
Heating oil futures slipped 7.01 cents to finish at $1.8690 a gallon on the Nymex, while natural gas prices fell 4.9 cents to $7.591 per 1,000 cubic feet.

Labels: USO, VLO

Wall Street eked out a modest gain Tuesday as investors, wary about the upcoming release of the Federal Reserve minutes, bought cautiously amid a series of new takeover deals and upbeat consumer confidence figures.
Stocks drew support from news that a consortium of banks led by Royal Bank of Scotland PLC said it will bid 71.1 billion euros, or $95.5 billion, for the Netherlands' ABN Amro, besting an offer from Barclays PLC. Other takeover news included an announcement that Tishman Speyer Properties and Lehman Brothers Holdings Inc. are buying Archstone-Smith Trust for at least $13.5 billion.
But trading was erratic with the minutes from the Federal Reserve's last meeting scheduled to be released Wednesday. The minutes could provide some insight into future interest rate moves. Wall Street also digested strong consumer confidence data, and a report on housing prices. According to preliminary calculations, the Dow Jones industrial average rose 14.06, or 0.10 percent, to 13,521.34.
The Standard & Poor's 500 index rose 2.38, or 0.16 percent, to 1,518.11, while the Nasdaq composite index gained 14.87, or 0.58 percent, to 2,572.06.

Labels: ASN, BCS, LEH, URS, VOD, XOM

Wall Street backtracked Tuesday to trade mixed, after excitement waned over new takeover deals and resilient consumer confidence and investors decided to play it safe ahead of upcoming data.
A sharp decline in oil prices also dampened energy company stocks and weighed on the Dow Jones industrial average, which had risen more than 50 points early in the day and later turned lower.
Initially, stocks rose after a consortium of banks led by Royal Bank of Scotland PLC said it will bid 71.1 billion euros, or $95.5 billion, for the Netherlands' ABN Amro, besting an offer from Barclays PLC. Other takeover news included an announcement that Tishman Speyer Properties and Lehman Brothers Holdings Inc. are buying Archstone-Smith Trust for at least $13.5 billion.
But with the minutes from the Federal Reserve's last meeting scheduled to be released Wednesday, a report that could provide some insight into future interest rate moves, investors pulled back. Wall Street also digested strong consumer confidence data, and a report on housing prices. By midafternoon trading, the Dow slipped 18.37, or 0.14 percent, to 13,488.91. The blue-chip index has fallen for the fifth time in six sessions.
Broader stock indicators were mixed. The Standard & Poor's 500 index fell 0.76, or 0.05 percent, to 1,514.97, while the Nasdaq composite index added 7.32, or 0.29 percent, to 2,564.51.
Bonds fell after the consumer confidence data, with the yield on the benchmark 10-year Treasury note rising to 4.88 percent from 4.86 percent late Friday. Yields have remained higher in recent sessions as fixed-income investors bet the Fed won't lower rates in the near future. On Tuesday, the consumer appeared strong; the Conference Board said its Consumer Confidence Index rose to 108.0 in May, up from a revised 106.3 in April and above the average analyst estimate. Also, the Dallas and Chicago Federal Reserves both reported expansions in regional manufacturing activity.
But the housing sector looked weak after the Standard & Poor's housing index indicated that U.S. home prices declined 1.4 percent in the first quarter compared to a year ago, the first time since 1991 that prices posted a quarterly drop. U.S. retail gasoline prices have eased slightly from their record high of $3.227 a gallon, on average, but remained high Tuesday at $3.201, according to AAA. Crude oil futures plunged $2.05 to $63.15 a barrel on the New York Mercantile Exchange.
In response, Exxon Mobil Corp., one of the 30 Dow components, fell $1.33, or 1.6 percent, to $82.18.
After it was reported that Archstone was being bought, the stock rose $5.60, or 10 percent, to $60.83.
In other takeover news, The Wall Street Journal said technology retailer CDW Corp. and telecommunications equipment company Avaya Inc. are private equity takeover targets. Avaya rose $1.99, or 14.5 percent, to $15.66, and CDW rose $7.17, or 9.5 percent, to $82.73.
And late Monday, engineering and construction company URS Corp. said it will buy competitor Washington Group International for $2.6 billion. Washington Group rose $11.93, or 17 percent, to $81.90, and URS rose $2.41, or 5.1 percent, to $49.30.
The technology sector, which has been weaker than the rest of the stock market in recent months, got a boost Tuesday after Vodafone Group PLC said it narrowed its full-year loss. U.S. shares of the world's biggest mobile phone company rose $1.10, or 3.7 percent, to $31.66.
Bookseller Borders Group Inc. is scheduled to release first-quarter results Tuesday after the markets close. Borders fell 15 cents to $23.26.
Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where volume came to 1.11 billion shares.
The Russell 2000 index of smaller companies was up 5.30, or 0.64 percent, at 835.23.
The dollar slipped against other major currencies, and gold prices climbed.
Overseas, Japan's Nikkei stock average rose 0.48 percent. Britain's FTSE 100 was up 0.55 percent, Germany's DAX index was up 0.54 percent, and France's CAC-40 was down 0.25 percent.

Source: AP

Labels: ASN, AV, BCS, CDWC, LEH, URS, VOD, XOM

NovaStar Financial (NYSE: NFI - News): ' I never do this on the show, but this stock is a call option. ... It could either double or go to zero. ... I am unbelievably blessing this stock. 6 down, 6 up, you make the call.'Marriott International (NYSE: MAR - News): 'People did not like the quarter with Marriott. ... I think that's a mistake. I think this is the level you want to pull the trigger at. Marriott is way too cheap. ... Let's get some Marriott right down here.'Qwest Communications (NYSE: Q - News): ' ... is resting after a tremendous run ... 50 cents down, 2 bucks up, that is my kind of risk/reward. BuyBuyBuy.'General Maritime (NYSE: GMR - News): 'That's our favorite. ... 6% yield ... [CEO] Peter Georgiopoulos, who is our favorite guy in the industry. ... I want you in General Maritime.'Nastech Pharmaceutical (NasdaqGM: NSTK - News): 'It tells me that this stock could be at 15 in a month or two ... I want you in Nastech. ... BuyBuyBuy. That's 12 buys on Nastech.'Monsanto (NYSE: MON - News)Deere (NYSE: DE - News)
Bearish calls:
Harley-Davidson (NYSE: HOG - News): 'I cannot in good conscience tell you to buy Harley-Davidson. It is too risky. ... I am going to give it a Don'tBuy.'DryShips (NasdaqGS: DRYS - News): 'We're not into DryShips.'Mosaic (NYSE: MOS - News): 'The stock had a major ramp today. ... At these prices, I'm not going to get behind Mosaic.'

Labels: DE, DRYS, GMR, HOG, Jim Cramer, Lightning Round, MAR, MON, MOS, NFI, NSTK, Q

More Dow Picks: Pfizer (NYSE: PFE - News), Procter & Gamble (NYSE: PG - News), United Technologies (NYSE: UTX - News), Verizon (NYSE: VZ - News), Wal-Mart (NYSE: WMT - News), Walt Disney (NYSE: DIS - News)
Cramer says PFE is "stuck" and owning the stock is a bit like owning a bond with a tad more upside. He admits he was too bullish on PG when he predicted it could go to $67 on the weak dollar and organic growth. However, Cramer says he wasn't bullish enough on UTX which is doing well internationally and is in "hyper-drive." He predicts UTX is headed to $73. Cramer also admits he underestimated VZ's fiberoptics and its wireless, and he would buy it for its yield and growth in spite of its 14% rise. WMT should go to $52 but not higher, predicts Cramer, as long as CEO Lee Scott is in charge. While he likes DIS, he thinks its parks will be casualty to gas prices and the success of its Pirates of the Caribbean film is priced into the stock.
Call Me Darling (AMEX: DAR - News)
Cramer says Darling is "as speculative as it gets" with one business that transforms animal fats into oil and a restaurant business. DAR is "en fuego," but Cramer would wait for a big selloff before buying. After that, DAR needs more analysts covering it before it tops off, and Cramer predicts the stock will go "through the roof" when it moves into the renewable energy sector. Like Tyson, DAR could go into biodiesel, but it will get pummeled first, and when it does, Cramer would buy.
Game Plan for the Coming Week: Polo Ralph Lauren (NYSE: RL - News), Costco (NasdaqGS: COST - News), Sears (NasdaqGS: SHLD - News)
Cramer would stay away with tech, and would move into retail. He recalled RL got "creamed" after its last quarter, which was excellent, but which led to a selloff because of a negative perception about the company's guidance. Therefore, Cramer would buy half a position before RL reports and half after. While he praises COST as a "delivery machine" he believes the company will continue to be misunderstood, and would buy after its earnings report. Cramer suggests pickkng up SHLD if it gets pummeled, and if not, to wait for the next drop in the stock.
CEO Interview: Catherine Burzik, Kinetic Concepts (NYSE: KCI - News)
Catherine Burzik wanted to reassure viewers that KCI will not be hurt by competition from Smith & Nephew after its BlueSky Medical acquisition. "I'm not sure the analysts and the Street understand the market we are in here," she said. "This is a really large market ... and it is significantly unpenetrated. There's a really large opportunity." Burzik added that since Americans are getting "fatter by the day," there will be a great demand for KCI's therapeutic services. Cramer gives the company a triple buy.
Published by SeekingAlpha

Labels: COST, DAR, DIS, Jim Cramer, KCI, Mad Money, pfe, PG, RL, SHLD, UTX, VZ, WMT

Nasdaq Stock Market Inc. agreed to buy Nordic exchange operator OMX AB for $3.7 billion. Nasdaq recently failed in a high-profile bid to acquire the London Stock Exchange, and the deal with Stockholm-based OMX gives it a second chance at launching an expansion overseas. "Nasdaq has been able to snatch victory from the jaws of defeat," said Octavio Marenzi, chief executive of consulting firm Celent. "London Stock Exchange, on the other hand, is looking increasingly isolated in a market that is rapidly consolidating." Nasdaq's news -- along with Dow-component Coca-Cola's purchase of bottled-water maker Glaceau -- cheered up investors ahead of the three-day Memorial Day weekend.
Published by CNN Money

Labels: Hot Stocks, KO, NDAQ

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Google June 510 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
InterContinental Exchange June 130 Puts (NYSE:ICE - News). ICE's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple Inc. July 120 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Oil Services HOLDR July 150 Puts (AMEX:OIH - News). OIH's PowerRating is 6.
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.
Nasdaq Stock Market (NasdaqGS:NDAQ - News). NDAQ's PowerRating is 3.
Micron Technology (NYSE:MU - News). MU's PowerRating 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.
None today
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.
Lexmark International (NYSE:LXK - News). LXK's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, GOOG, ICE, LXK, MU, NDAQ, OIH, Stock Options

On Bon-Ton Stores (NasdaqGS: BONT - News): Cramer would use this company's 10% drop as a buying opportunity, since it reported the same lackluster April sales experienced by other retailers. Cramer would not shop there, though.
Boeing (NYSE: BA - News): With BA up $2.23 to $97.80, investors are getting "fatigued" with the constant bull market in aerospace, agriculture and oil, and the stock may go lower; "I hate to say that, because I really like BA."
Dell (NasdaqGS: DELL - News) and Jones Soda (JDSA): Cramer said not to sell Dell, but to sell JSDA at least until it drops to $19.
Published by SeekingAlpha

Labels: BA, BONT, Dell, Jim Cramer, Stop Trading

Apple (NasdaqGS: AAPL - News): 'Let's buy it down. You want to have 200 shares of AAPL, you buy 50 tomorrow at the opening, and then you pray it comes down... until five days before the iPhone is shipped, and then you've got to skee-daddy out of that guy... 'Alcoa (NYSE: AA - News):' ... even though it has had a monster run, and we believe in the stock, I am sticking with AA here.'Sony (NYSE: SNE - News): 'House of pleasure. I think that SNE goes higher ... How many companies come out with a totally third-rate product, that nobody likes, and then goes up 25% because of it ... I think it goes to $53, and there I want to pull the trigger.'Pall (NYSE: PLL - News): ' ... if you really want to go with that filtration game - that you go with Pall.'Tetra Tech (NasdaqGS: TTEK - News): ' ... if you want clean water, they've got it.'NYSE Euronext (NYSE: NYX - News): 'The NYX is not going to go up until everybody sells it, and everybody gets short it, and all the analysts come around and admit that they're wrong about being negative... and then it's going to fly.'
Bearish calls:
Resources Connection (NasdaqGS: RECN - News): ' I would not buy this stock. Don't buy, don't buy.'Skechers USA (NYSE: SKX - News): ' ... they had an inventory problem earlier in the year ... I think that SKX is too dangerous.'Calgon Carbon (NYSE: CCC - News)Verasun Energy (NYSE: VSE - News): 'You're kidding me, right? ... That stock was just created by bankers in order to be able to take the money from you - sell, sell, sell! '
Published by SeekingAlpha

Labels: AA, AAPL, CCC, Jim Cramer, Lightning Round, NYX, PLL, RECN, SKX, SNE, TTEK, VSE

Six More Dow Stocks: International Business Machines (NYSE: IBM - News), Johnson & Johnson (NYSE: JNJ - News), J.P Morgan Chase (NYSE: JPM - News), McDonald's (NYSE: MCD - News), Merck Co. (NYSE: MRK - News), Microsoft (NasdaqGS: MSFT - News)
Cramer continued his series on Dow Stocks by admitting his target of $110 for IBM was too conservative, and given the company's great dividend and buyback, it should reach $114, but no higher. JNJ is a sell in spite of Warren Buffet's buying the stock. Cramer thinks it is staying at $63, and opines that maybe Warren Buffet liked the steady nature of the band-aid business, but adds "With so many other great names in the Dow, why back up the truck for band-aids?" Cramer called JPM's CEO Jamie Dimond a "great banker," but thinks he is going to be prevented from bringing out the best in JPM by the Fed; "Three more points for JPM, and then I'd declare victory." While MCD has a great international business, Cramer thinks it will peak 4 points from now at $55. Cramer says he was too conservative predicting MRK would go to $50, but at $53, he says the stock is "pretty much done for the year." On the other hand, he admits he was too bullish on MSFT, but is not changing his $35 target, since the company may underpromise and overdeliver.
Google (NasdaqGS: GOOG - News) and Amazon (NasdaqGS: AMZN - News)
Google has been stalled for a while, but Amazon has brought "in the jumper cables," says Cramer. AMZN's move from $39 to $69 makes GOOG look cheap in comparison, especially since Google has 63% sales growth and almost no competition while AMZN has 33% growth with competition from almost every retailer in America. Cramer sets the target for Google at $600, but admits he is being conservative.
Sell Block: CA Inc. (NYSE: CA - News), Analog Devices (NYSE: ADI - News)
Cramer declared a special "Crime and Punishment" edition of this week's Sell Block, inspired by the crime of his "hubris" (overweening pride) last week when he broke his own rule about avoiding tech until August. He now regrets having recommended CA which is down 7.4% since last Friday and ADI which he "missed by a mile."
Mad Mail: MEMC Electronic Materials (NYSE: WFR - News), Taser International Inc. (NasdaqGS: TASR - News), Rowan Companies Inc (NYSE: RDC - News), National Oilwell Varco (NYSE: NOV - News)
When a viewer asked how to play the shortage of polysilicon in Chinese Solar IPOs, Cramer said WFR is the obvious choice, but it missed the quarter and at $58, it's a "no-go." Cramer told another viewer to hold on to Taser, which he recommended ahead of the French election, for at least a few more points. Cramer says RDC has "too much actual drill for me" and says NOV is still "best in show."

Published by SeekingAlpha

Labels: ADI, AMZN, CA, GOOG, IBM, Jim Cramer, JNJ, JPM, Mad Money, MCD, MRK, MSFT, NOV, RDC, TASR, WFR

On Greenspan's remark that he expects a "dramatic contraction" in Shanghai: While Cramer says there will be some "serious selloffs" as there are in any bull market, he does not agree with Former Fed Chairman Alan Greenspan's dire prediction for China, and notes the Chinese market is up 45% after February's 9% drop. Cramer adds that unlike Japan, China has growth potential.
Crocs (NasdaqGS: CROX): Cramer tells investors to "press the bet" on Crox, at least until the final two anaylsts give their ratings. The shoe-seller rose 1% after reaching a 52-week high, and Cramer expects more upside.
Six Flags (NYSE: SIX - News): Good weather should mean a rise to $9 from $6 for SIX, says Cramer
Published by SeekingAlpha

Labels: Alan Greenspan, CROX, Jim Cramer, SIX, Stop Trading

Gilead S