Jim Cramer's Mad Money Review

The Dow closed down 218 points and the Nasdaq fell 43 points on Monday. Finerman sees storm clouds are everywhere and the Goldman downgrade of Citigroup (C) really hurt the markets. Najarian had a fun day trading. He also thinks the financial sector is in big trouble and he is extremely worried about General Motors (GM) which fell below $27.
Louise Yamada, a highly ranked technician on Wall Street, joined the show to discuss her analysis on the technicals of the market. She is currently worried that the S&P 500 could break 1406, which would signal to her an end of the longer-term uptrend. Yamada is still bullish on Cisco Systems (CSCO) and she would look to buy pullbacks on the name. She looked at the chart on Broadcom (BRCM) calling it a sell because it hasn't followed through after a false break-out. The chart on Coca-Cola (KO) is initiating an uptrend according to Yamada, so she would be a buyer of KO. Bed Bath and Beyond (BBBY) should be sold.
Retail
Nordstrom (JWN) reported a 22% rise in third-quarter profits helped by an extra week of sales.
Sears Holdings (SHLD) disclosed it has taken a 13.7% stake in Restoration Hardware (RSTO) and the possibility of proposing an acquisition.
Target (TGT) is set to report earnings Tuesday before the opening bell.
Hewlett-Packard (HPQ) clocked a 28% jump in profits off of strong notebook sales.
Medtronic (MDT) reported a 2% decline in profits, but the stock trades 3% higher after hours.
Lowe's (LOW) dropped 7% after reporting a 10% decline in profits due to the weak housing market.
Celgene (CELG) bought Pharmion (PHRM) for $2.9 billion. Adami thinks that Phizer must make a similar acquisition.
EchoStar (DISH) shares exploded higher Monday after Citigroup said there was a 65% chance that AT&T (T) will buy DISH.
Ultimate Fighting is now the fasting growing spectator sport in the United States. Macke says look for growth in cable companies and satellite companies like Viacom (VIA) and EchoStar. He also thinks makers of energy drinks like Coca-Cola will benefit. He said avoid the World Wrestling Entertainment (WWE) because the UFC is taking share. Lastly, Macke speculated that Anheuser-Busch (BUD) could be near a beverage deal with the UFC.
Pops & Drops
Pops - Xerox (XRX) traded up 2%.
Intercontinental Exchange traded up 3%
VeriSign (VRSN) traded up 2%.
Drops - E*TRADE (ETFC) fell 13% even with speculation of a takeover by Ameritrade (AMTD)
Wynn Resorts (WYNN) fell 7%
Genesco (GCO) plunged 24%.
Disney (DIS) fell 4%
General Motors (GM) fell 8% after the automaker announced plans for year-end discounts to clear out inventory.
Dillard's (DDS) fell 5%.
Tween Brands (TWB) fell 13%
Final Trade
Macke would purchase Dicks Sporting Goods (DKS) and Target on any selloff Tuesday
Najarian advises buying EchoStar (DISH) on a pullback under $44.
Finerman is long Goldman Sachs Group (GS) and short Lehman Brothers Holdings (LEH).
Adami recommends Vodafone Group (VOD) for a play on China.

Labels: BBBY, BRCM, CELG, Citigroup Inc., CNBC, CNBC's Fast Money, CSCO, DISH, Dow Jones, Fast Money Recap, GM, HPQ, JWN, KO, LOW, MDT, Nasdaq, PHRM, SHLD, TGT

Most Under Priced 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.
Diamond Offshore Drilling Feb 85 Calls (NYSE:DO - News). DO's PowerRating is 4.
Most Under Priced 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.
Sandisk Mar 40 Puts (NasdaqGS:SNDK - News). SNDK's PowerRating is 5.
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. Feb 95 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.
Intuitive Surgical Feb 95 Puts (NasdaqGS:ISRG - News). ISRG's PowerRating is 3.
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.
Ctrip.com (NasdaqGS:CTRP - News). CTRP's PowerRating is 5.
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.
Playboy Enterprises (NYSE:PLA - News). PowerRating not available for due to certain parameters not being met.
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.
Bed Bath and Beyond (NasdaqGS:BBBY - News). BBBY's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, BBBY, CTRP, DO, ISRG, options, PLA, SNDK

Waste Not, Want Not: American Ecology (NASDAQ: ECOL - News), Stericycle (NASDAQ: SRCL - News)
"Hazardous waste equals mad money," says Cramer, adding that ECOL is a good secular growth stock which has limited competition thanks to a "government-sanctioned oligopoly" which restricts the number of companies which are permitted to deal with toxic waste. There are currently only five analysts covering ECOL, and Cramer likes its solid yield of 3.4%. Another "strong secular grower" is SRCL which is up 14 points since Cramer recommended it, but is still worth buying, he says, because it is the "only national player in the medical-waste business." SRCL has contracts with hospitals, which means steady income for the company.
One Stock, Two Views: Bed, Bath and Beyond (NASDAQ: BBBY - News)
Although Cramer thinks that BBBY is expensive based on its earnings, has an outdated concept and is suffering because of the slow housing market, Cramer would not sell the stock. The paradox surrounding BBBY is that Morgan Keegan downgraded it because of "declining fundamentals" and Goldman Sachs upgraded it because of "improving fundamentals." Looking at both sides of the BBBY story, Cramer explained that Morgan reported that the company's guidance was "reasonable," which indicates that it is not expected to overdeliver. Morgan also feels that BBBY's buyback will be completed too early, and that valuation of its stores does not include risks such as a deceleration of sales growth. However, Goldman noted that BBBY tends to have a low guidance and beats it, and Goldman likes the company's buyback as well as its purchase of Christmas Tree Shops. Cramer commented that this story about BBBY illustrates that two analysts can make "totally different conclusions" based on the same facts, and the winner of the debate will be determined ultimately by the price of the stock. In conclusion, Cramer would not pick up BBBY now, because he agrees with Morgan concerning the company's earnings. However, he would not sell it because he thinks BBBY might be bought by a private equity firm. At $40, the stock is "no man's land," but if it were higher or lower, he might buy or take profits.

CEO Interview : Craig Miller Ruth's Chris Steak House (NASDAQ: RUTH - News)
Cramer asked Craig Miller how he could preannounce that the fourth quarter will be up; "We have a terrific brand," Miller replied. Concerning pricing, last year the restaurant had 5% hedged, and this year more than 50% is hedged. In spite of labor issues, Miller is confident, and believes that the company's strength is the kind of dining experience it provides for its customers, and hopes to build more restaurants. Although Ruth's past success has not generated wealth for its shareholders, Miller expects this situation to improve as RUTH gains credibility and the market comprehends its business model. He also notes that RUTH is reinvesting cash flow to develop its brand, and is looking forward to overseas expansion.
Published By SeekingAlpha

Labels: BBBY, ECOL, Jim Cramer, Mad Money, RUTH, SRCL