Jim Cramer's Mad Money Review

Buy Altria (MO), Jim Cramer said Thursday on CNBC's Stop Trading! segment.
Cramer said recession fears and worries about financial stocks point to the need to buy consumer staples like cigarette maker Altria and soft drink companies Coke (KO) and Pepsi (PEP).
Cramer cautioned investors to stay away from mortgage stocks like insurer MBIA (MBI), because housing prices are far more important to the consumer's health than job numbers. Cramer said an unwarranted faith in the apparent strength of U.S. employment was behind the collapse of two hedge funds at Bear Stearns (BSC) this summer.
"Employment has been a false indicator for this economy," Cramer said.

Labels: BSC, Jim Cramer, KO, MBI, MO, PEP, Stop Trading

The Fed's 50 point cut on Tuesday sparked the stock market, and CNBC's "Fast Money" discussed why the bulls are running, and what it means for financial stocks:Najarian: Tuesday's actions all about the financials. Financial Select Sector SPDR, ton of volume in call options.Macke: Can't be short financials now.Adami: continues to like financials; Lehman Brothers(LEH), Goldman Sachs (GS) and Morgan Stanley (MS)All Clear on Wall Street? CNBC's Charlie Gasparino discussed whether brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns (BSC)--lease diversed and tied to credit markets.OIL: Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Author Dennis Gartman: Shocked by feds decision. Thinks stock market will continue to climb.Housing Market: Adami: housing stocks are back for a trade. He likes Hovanian, (HOV), Toll Brothers (TOL) and Pulte Homes (PHM)Finerman: Still likes Home Depot(HD), which she owns for its cheap valuation.Word on the Street: Cummings (CMI) and Caterpillar (CAT) exploded higher on the Fed cut. Najarian: Thinks CAT has much more upside to come.Global: China and Brazil's markets soared on the rate cuts. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and Brazil ETF (EWZ)Face 2 Face:Viewer writes: "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.Viewer writes: "Should I sell my October $195 call options on Goldman Sachs (GS) now or is there still more upside?" Najarian- feels strong about GS, but you should take half the position off before earnings.Viewer writes: "What is your outlook for Tiffany's (TIF) as the holiday season approaches?" Macke is positive about Tiffany's and Blue Nile (NILE)Pops & Drops:Pops: Macke-Caterpillar (CAT), Finerman-Target (TGT), Adami-Alcoa (AA)-could be bought out by Najarian's pick-Billiton (BHP), and Finerman-Wendy's (WEN)Drops: Najarian-E*Trade (ETFC), Macke-Hovnanian(DOG), Adami-Boeing(BA)Final Trade:Macke- Macy's (M)Finerman- Altria (MO)Adami- Nucor (NUE)Najarian- Companhia Vale do Rio Doce (RIO)

Labels: BHP, BSC, CAT, CMI, CNBC, ETFC, EWZ, Fast Money, GS, HD, HOV, LEH, MS, NILE, PHM, SPDR, TGT, TIF, TOL, WEN

Shares of investment banks rallied in afternoon trading Tuesday after the Federal Reserve cut its target for interest rates, offering Wall Street cheaper borrowing and the prospect of more stable credit markets.
The Fed cut the federal funds rate to 4.75 percent from 5.25 percent.
Many investors have clamored for a rate cut, believing it would lure buyers back into certain distressed markets. The instability in markets like mortgage-backed securities, junk bonds and corporate takeover finance has siphoned untold value out of the investment banks' portfolios this quarter.
Investment banking stocks have all fallen since July amid the market turmoil.
Shares of Goldman Sachs Group Inc. rose $9.37 to $197.
Shares of Bear Stearns Cos. rose $3.22 to $118.60.
Shares of Morgan Stanley rose $4.33 to $69.24.
Shares of Merrill Lynch & Co. rose $2.90 to $75.75.
Shares of Lehman Brothers Holdings Inc. rose $4.24 to $62.86.
Published by AP

Labels: BSC, Federal Reserve, GS, Investment Banks, LEH, MER, MS

Reclusive billionaire Joseph C. Lewis, who made his fortune trading currencies, has taken a 7 percent stake in Bear Stearns Cos Inc (NYSE:BSC - News), snapping up $860.4 million worth of the investment bank's sagging stock to become one of its largest shareholders in less than a month. Bear Stearns' shares were up 0.6 percent at $106.03 in midday trading on the New York Stock Exchange after moving as high as $109.55 earlier.
Source: Reuters

Labels: Billionaires, BSC, Currencies, Joseph Lewis

Playing it Safe with Procter & Gamble (NYSE: PG - News)
As interest rates go lower, dividends will rise in value, and Cramer recommends PG as a "money in the bank" dividend stock. While at first glance, few would be impressed by a $64 stock with a 2.2% yield, Cramer reminded viewers that PG was at $30 in 2000. Reinvesting PG's dividend is like having "compound interest" said Cramer and he lauds PG for its "mega buyback." He predicts PG will reach $90 and is a good way to "Fed-proof your portfolio."
How Much is that PetSmart in the Window? VCA Antech (NasdaqGS: WOOF - News), PetMed Express (NasdaqGS: PETS - News) and PetSmart (NasdaqGS: PETM - News)
The heated discussion over NFL star quarterback Michael Vick's upcoming trial shows "people won't stand for cruelty to animals," said Cramer who unveiled some of his pet picks and peeves. One pet peeve was WOOF's "piled-up debt," but he liked discount pet pharmacist PETS for its personalized care. However, his best pet pick was PETM, which is up $3 from where he recommended it in January. PETM is known for selling "high-class premium" items and has $245 million cash on hand. PETM will remain the victor as its main rival, Petco, will probably close stores after being taken over by a "debt-ridden" company.

Everybody out of the Poole: Bear Stearns (NYSE: BSC - News), Countrywide Financial (NYSE: CFC - News), Goldman Sachs (NYSE: GS - News)
Cramer defended his vigorous criticism of St. Louis Federal Reserve President William Poole, who said interest rates should be raised, not lowered. Cramer accused Poole of "single-handedly attempting to destroy" the market and said he should put in his resignation. Senator Kent Conrad (D, N.D), chairman of the Budget Committee, was Cramer's guest caller and said Poole's proposal was "reckless and irresponsible" and would cause a calamity. He added difficulties at BSC, CFC and GS speak for themselves. Conrad added Poole' s statements showed a "lack of confidence" in the market, and Cramer concluded the segment with his hope that " people on Wall Street are as considerate as those in the Senate."
Mad Mail: Altria (NYSE: MO - News), Melco PBL Entertainment (NasdaqGM: MPEL - News), Las Vegas Sands (NYSE: LVS - News) and Wynn Resorts (NasdaqGS: WYNN - News)
Cramer says there is "good news coming" at Altria with a rise of 5 points to the 70s but not the 80s, since it is a stock "everybody already owns" and has limited upside. Atlhough he liked the IPO, Cramer says MPEL is now worst of breed and prefers LVS or WYNN.
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Labels: BSC, CFC, GS, Jim Cramer, LVS, Mad Money, MO, MPEL, PETM, PETS, PG, WOOF, WYNN

Wells Fargo (NYSE: WFC - News), Countrywide Financial's (NYSE: CFC - News), Washington Mutual (NYSE: WM - News), Bank of America (NYSE: BAC - News), Wachovia (NYSE: WB - News)
Thursday's dash for financials may indicate the sector will be one of the "long-term beneficiaries" of Bernanke's position, but Cramer does not think they are safe. He tacked a double sell on WM but thought BAC and WB could survive. However, he reserved the lion's share of his praise for WFC, and said, "It is the great speculative play that should prosper." He believes WFC will "own the mortgage market" and will win with investors because it offers a great dividend. Cramer would wait for WFC to drop to the $32 - $34 range.
Sell Block: VMware (NYSE: VMW - News), H&R Block (NYSE: HRB - News), Capital One Financial (NYSE: COF - News), Friedman Billings Ramsey Group (NYSE: FBR - News) Lamson & Sessions (NYSE: LMS - News), Six Flags (NYSE: SIX - News)
Cramer urged investors to "stay the course" and added "no one ever made a dime panicking." However, he added it isn't too late to sell minerals and he feels tigher consumer spending will put pressure on retail. Cramer would sell VMW after its highly successful IPO, and would stay away from HRB, COF and FBR. He would also sell LMS as well as SIX because of low attendance due to the weather. He concluded it is better to invest in long-term stocks rather than quick trades in the current environment.
KKR Financial (NYSE: KFN - News), Thornburg Mortgage (NYSE: TMA - News) and Reynolds American (NYSE: RAI - News)
Not all high dividends are good dividends, Cramer declared and used KFN and TMA as examples. He added high-dividend names KFN and TMA aren't worth the investment because as their stocks fall so will the yields. Cramer likes RAI which has a dividend of 5.5% and is a "smart play" in this environment because "nothing is more defensive than cigarettes."
Mad Mail: Bear Stearns (NYSE: BSC - News), Jones Soda (NasdaqCM: JSDA) and Google (NasdaqGS: GOOG - News)
Cramer would avoid BSC and JSDA whose climb was "how to make a million" in the market. He adds GOOG is safe and likes the tech sector for its pristine balance sheets and great products.
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Labels: BAC, BSC, CFC, COF, FBR, GOOG, HRB, Jim Cramer, KFN, LMS, Mad Money, RAI, SIX, TMA, WB, WFC, WM, WMV

Cramer's Index: MGIC Investment (NYSE: MTG - News), Countrywide Financial (NYSE: CFC - News), Bear Stearns (NYSE: BSC - News), KB Home (NYSE: KBH - News), Centex (NYSE: CTX - News), MBIA (NYSE: MBI - News), Blackstone (NYSE: BX - News), Thornburg Mortgage (NYSE: TMA - News), Beazer Homes (NYSE: BZH - News), Washington Mutual (NYSE: WM - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
While Cramer says he doesn't want to be a "buzz kill," he admits it is not possible to be really bullish as long as the housing crisis persists. Cramer formed his own "index" of the above-mentioned stocks, and said when the 12 companies stablilize and the Fed cuts interest rates, it will be time to let the bulls run once again. He made a personal appeal to Fed chairman Ben Bernanke; "Cut the rates. Take the pressure off. Many, many people could be about to lose their homes, because you're not listening..."
New Age Under Armour: Lululemon Athletica (LULU)
Cramer has discovered a new Under Armour, which like its predecessor, has experienced a massive initial bounce and is expected to keep growing. Yoga apparel company, LULU came public at $18 and jumped to $31 "in one of the worst tapes I've ever seen," said Cramer. However, he doesn't think this stock is a "one trick pony" but will keep going up as UA did, because LULU has been doubling stores year over year. Since the stock is speculative and has risen, Cramer recommends waiting at least 3 days or until the price drops before buying.
Beer is Near: Boston Beer (NYSE: SAM - News)
While in the current climate, investors are dubious of even some soft goods stocks, "People drink beer no matter what." Cramer likes SAM's 13% long-term growth rate and its smart move of acquiring a brewery from Diageo for $55 million rather than building a new one, which would have cost $200 million. Although he's a self-proclaimed "Bud man" Cramer gives SAM a triple buy, even near its 52-week high.
CFO Interview: Stephen Chazen, Occidental Petroleum (NYSE: OXY - News)
Chazen discussed production increases in Argentina and Peru; "California continues to be good for us." he added. Chazen dismissed worries about political risks, noting there are always political risks, and he remarked on the stability of OXY's chemical business. "All oil stocks are trading down in unison," Cramer said, and added now is the time to buy oil.
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Labels: BSC, BX, BZH, C, CFC, CTX, GS, Jim Cramer, KBH, LULU, Mad Money, MBI, MTG, OXY, SAM, TMA, WM

Doomsday Scenario: MDC Holdings (NYSE: MDC - News), DR Horton (NYSE: DHI - News), Pulte Homes (NYSE: PHM - News) and Toll Brothers (NYSE: TOL - News)
Cramer created a doomsday scenario which probably will not happen, since the bank crisis in 1990 was "ten times worse" than the problems of today. However, he would avoid any companies which deal with borrowing and lending money, particularly housing: DHI, PHM and TOL. The only housing stock that isn't hopeless now is MDC, but Cramer would still not buy. He would also avoid financials amid bearish fears that loans will not be repaid and yields will shrink; "You can't own anything that even walks by a mortgage," Cramer warned. He would not touch companies which need financing for deals. However, Cramer added; "the worst-case scenario will be derailed," and the doom and gloom will not really materialize
If Ben will Budge: Centex (NYSE: CTX - News), Lennar (NYSE: LEN - News), Bear Stearns (NYSE: BSC - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
Cramer discussed two scenarios which could reverse doomsday: overseas buyers and an interest rate cut. He is confident that if the Federal Reserve reduces rates by only one percent, housing will make a comeback (especially DHI, PHM, CTX, LEN), financials GS and C will recover and the Dow will jump to 15.
Playing it Safe: Celgene (NasdaqGS: CELG - News), Kellogg (NYSE: K - News), Schlumberger (NYSE: SLB - News), Medco Health Solutions (NYSE: MHS - News), Kimberly-Clark (NYSE: KMB - News), Amazon.com (NasdaqGS: AMZN - News), Google (NasdaqGS: GOOG - News), Apple (Other OTC: APPL.PK - News) and Research in Motion (NasdaqGS: RIMM - News)
Even if the Fed doesn't budge rates, investors can still create a safe portfolio consisting of CELG, K, SLB, MHS and KMB. He also directed viewers to his six wild bull markets: oil and oil services, agriculture, machinery, aerospace, infrastructure and minerals, and his four horse men of tech: AMZN, GOOG, APPL and RIMM.
Mad Mail: Brookfield Asset Management (NYSE: BAM - News), Rite Aid (NYSE: RAD - News), ValueClick Inc. (VLCK)
Cramer urged a mailer not to sell BAM, because it is an international company, unaffected by subprime woes, and is similar to Warren Buffet's Berkshire Hathaway; "If you sold Warren Buffet because of a housing problem, forget it!" To a mailer concerned about RAD, Cramer said, "The integration is going very well. I'm holding your hand on RAD, and begging you not to sell it." Concerning VLCK's bad quarter, he commented, "I don't have my arms around it yet. To me, the stock looks like it's going to see $18, before you see a bottom."
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Labels: AMZN, BAM, BSC, C, CELG, CTX, DHI, GOOG, GS, Jim Cramer, K, KMB, LEN, MDC, MHS, PHM, RAD, RIMM, SLB, TOL

Lehman (NYSE: LEH - News), JP Morgan (NYSE: JPM - News) and Bear Stearns (NYSE: BSC - News): After Thursday's carnage, Cramer has put financials on probation, and outlined necessary factors that would allow these stocks to perform again. First, Wall Street should cut its estimates, second, there should be layoffs in mortgage and corporate bonds departments. Third, the companies have to keep better track of what they have been losing to sub-prime debt and hung bridge loans. Cramer would stay away from JPM because of its connection with corporate debt and would not touch any housing stocks.
Pepsi (NYSE: PEP - News), Kellog (NYSE: K - News), Bunge (NYSE: BG - News), Celgene (NasdaqGS: CELG - News), Schlumberger (NYSE: SLB - News): Cramer would go "bottom fishing" in soft goods, such as Pepsi, which is down and Kellogg, whose quarter was "thing of beauty." He also likes agriculture and healthcare, especially BG and Celgene. Since Exxon is not drilling enough oil, Cramer predicts SLB will be called upon to come to the rescue. He also reiterated his praise for the tech sector which is "hot" in late summer.
Published by SeekingAlpha

Labels: BG, BSC, CELG, Jim Cramer, JPM, K, LEH, PEP, SLB, Stop Trading

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.
IPSCO Inc. Aug 160 Calls (NYSE:IPS - News). IPS' 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.
Apple Inc. July 130 Puts (NasdaqGS:AAPL - News). AAPL'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.
Deckers Outdoor Corp. Aug 110 Calls (NasdaqGS:DECK - News). DECK'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.
Bear Sterns Aug 125 Puts (NYSE:BSC - News). BSC's PowerRating is 5.
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.
Sprint Nextel Corp. (NYSE:S - News). 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.
Financial Select Sector SPDR (AMEX:XLF - News). XLF's PowerRating is 5.
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.
Centex Corp. (NYSE:CTX - News). CTX's PowerRating is 4.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, BSC, CTX, DECK, Hot Stock Options, IPS, S, XLF

I'ts a Given: Given Imaging (NasdaqGM: GIVN - News)
Cramer's speculative pick on Friday was Israeli wireless medical imaging company, GIVN, which is perfecting a PillCam video capsules which are a more comfortable, convenient way of checking for gastronomical problems than traditional methods. He pointed out his track record of making viewers money with medical device companies such as Hansen Medical, Micrus Endovascular,Kyphon, and Intuitive Surgical, and he feels the technology behind the PillCam is much simpler than that of other devices. While investors are taking a "calculated risk" Cramer expects big earnings from Given and notes its guidance inspires confidence.
Big Brother is Watching You: Omniture (NasdaqGM: OMTR - News)
The next big thing in internet advertising is OMTR, according to Cramer, since the company monitors what people are watching online; "With Omniture, you can tell advertisers what is hot at the exact moment," Cramer said. The time for Yahoo, Google and Microsoft to buy this stock was yesterday, Cramer commented, and if OMTR's shares were valued the same as Microsoft valued aQuantive's before the acquisition, OMTR would be sitting at $35 instead of $2o.66. The company gave a secondary offering and sold 8 million shares at $18, which is an indication that " no amount of stupid sellers can knock this thing down ... There's too much demand." However, Cramer warned he is recommending this speculative stock on a takeover bid and not on its margins.
Game Plan for the Coming Week: Bear Stearns (NYSE: BSC - News), XTO Energy (NYSE: XTO - News), Medco Health (NYSE: MHS - News), Express Scripts (NasdaqGS: ESRX - News), Nike (NYSE: NKE - News), Kroger (NYSE: KR - News), Oracle (NasdaqGS: ORCL - News), McCormick (NYSE: MKC - News), Rite Aid (NYSE: RAD - News), Research In Motion (NasdaqGS: RIMM - News)
Cramer said the failure of two hedge funds does not spell bad news for BSC, which he would buy on Thursday. The cause was a hedge fund manager's "stupid mistake" and Cramer doesn't think BSC is dependent on the success or failure of the funds. He would pay attention to companies such as XTO, MHS and ESRX which are speaking at the Wachoviaand Jeffries conferences next week. He suggests setting up half a positon in NKE before its earnings report and the other half after a subsequent drop. Cramer would buy KR, since it doesn't get enough respect, as well as Oracle and thinks MKC is a good low-risk stock. He predicts RAD, which reports on Thursday, will continue to "motor up" and he would buy it on any weakness. For those who don't yet own RIMM, Cramer suggests picking it up after its earnings report.
Mad Mail: Posco (NYSE: PKX - News), Cummins (NYSE: CMI - News), Spartan (NasdaqGS: SPAR - News)
Although he didn't mention the PKX when he discussed 20 of Buffett's stock picks on Thursday's Mad Money program, Cramer thinks it is a good, inexpensive steel company. Cramer thinks CMI is still rising but would beware of SPAR, which is down a two points.
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Labels: BSC, CMI, ESRX, GIVN, Jim Cramer, KR, Mad Money, MHS, MKC, NKE, OMTR, ORCL, PKX, RAD, RIMM, SPAR, XTO

CEO Wall of Shame: Terry Semel of Yahoo! (NasdaqGS: YHOO)
Cramer added Yahoo CEO Terry Semel, the "master of the art of overpromise and underdeliver," to his CEO Wall of Shame after the company failed to meet expectations yet again on Tuesday. "You can't raise the bar really high and then implode," Cramer says. "And you certainly shouldn't be allowed to do it repeatedly." He thinks Terry Semel is even worse than IBM's Sam Palmisano and Citigroup's Chuck Prince.

Money in the Banks: Downey Financial (NYSE: DSL - News), Wachovia (NYSE: WB - News), Lehman Brothers (NYSE: LEH - News), Bear Stearns (NYSE: BSC - News), Goldman Sachs (NYSE: GS - News), Impac Mortgage (NYSE: IMH - News)
Downey may be the next Golden West, a savings and loan which was recently bought by WB in a controversial yet beneficial move, according to Cramer. He thinks DSL is one of the best risk/reward stocks around, and believes it will double if it is acquired, may benefit if the Fed raises interest rates, or if it busts the shorts, which hold 40% of DSL's float. Cramer would buy LEH, BSC, GS, commenting "what was negative four weeks ago is now positive for banks," and he thinks IMH could double on any good news.
Green Day Part 3: BorgWarner (NYSE: BWA - News), Halliburton (NYSE: HAL - News), Transocean (NYSE: RIG - News)
Continuing his Green Day series, Cramer discussed BWA an auto-supplier which is sought-after because of its fuel efficient turbochargers, for which there is high demand across the industry. Since many of its clients are overseas, he doesn't think BWA will be affected by problems with domestic car sales. When a caller asked if traditional energy is "peaking" in the wake of "Green Day," Cramer replied that oil is "still in a multi-year expansion" but prefers oil service stocks such as Halliburton and Transocean.
Mad Mail: Superior Offshore, Burger King (NYSE: BKC - News), Southern Copper (NYSE: PCU - News), FuelCell Energy (NasdaqGM: FCEL)Cramer told a viewer he doesn't think IPO Superior Offshore's strategy of paying a special cash dividend before going public is a bad idea, and noted companies like BKC have been successfully doing the same thing. When asked if PCU will "drop like a rock" again in late April and early May, Cramer said he would still buy PCU, and the pattern is linked with China. Finally, he agreed FCEL will rise because of the "Green Day" decision.
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Labels: BKC, BSC, BWA, DSL, GS, HAL, IMH, Jim Cramer, LEH, Mad Money, PCU, RIG, WB

Bullish Calls:
FedEx (NYSE: FDX - News): 'Now, this number wasn't that great, and the commentary wasn't that great but, you know what? I still think that FDX is a company worth owning long term, because it does not have a multiple on its growth rate, and because the management is superior to everyone else in the industry...'Bear Stearns (NYSE: BSC - News): 'You're still down 20 points from the high. Jimmy Kane is a great CEO... BSC... sells at a ridiculously low multiple to book. How can people not understand that this man knows the mortgage market nine ways to Sunday, and yet they still try to slam it. They're wrong ... that stock goes higher. I say 'all aboard!'Flow International (NasdaqGM: FLOW): 'FLOW is the best in show. Ultra-high water pressure, water jet... I think FLOW goes higher.'XTO Energy (NYSE: XTO - News): ' ... you move into my favorite, XTO!... 52-week high.'Dean Foods (NYSE: DF - News): 'I think the world of DF... I believe that you get long, you get that dividend, and then the stock goes right back up. DF - pull the trigger right now, ahead of the dividend! I want people in D.'Clearwire (NasdaqGS: CLWR): 'I am telling people to buy more CLWR... I have tremendous, tremendous faith in the management. And, if they hadn't priced it [the IPO] so darn high, I think we'd already be making money on the darn thing. So I say stick with it.'Nastech Pharmaceutical (NasdaqGM: NSTK): ' ... go into that NSTK. They have got a better chance of hitting it out of the park...'Chipotle Mexican Grill (NYSE: CMG - News): ' ... the highest hospitality quotient of any company I deal with...'Heinz (NYSE: HNZ - News): ' ... offering you both capital appreciation and capital protection Two thumbs up for HNZ. It's a reinvented company with 200 new products. HNZ rocks!'Garmin (NasdaqGS: GRMN): 'There'll be a selloff in the market, and you'll be able to buy GRMN cheaper than it is... I happen to like the stock, but I'm not paying $55 for it... It's too high. I like it. Let's be patient.'Mosiac company (NYSE: MOS - News): 'The way you buy a MOS is you wait for a big selloff. MOS happens to be my favorite fertilizer company. MOS can go back to $25 in a pullback and, only then do I advise that you pull the trigger!'Crown Castle (NYSE: CCI - News): 'CCI's my favorite; that's best of breed.'SBA COM (NasdaqGS: SBAC): 'SBAC is a good stock too.'
Bearish calls:
Usana Health Sciences (NasdaqGS: USNA): 'I wouldn't want to own USNA... 'Cabot Oil & Gas (NYSE: COG - News): 'COG is a really good company ... You've had a big run in COG. You ring the register, and you move into my favorite, XTO!... 52-week high.'People's Bank (NasdaqGS: PBCT): 'This is actually a tough one ... even though I know it's a well-run bank, I am going to have to put yours in the 'don't buy, don't buy' camp.'Empire Resorts (NasdaqGM: NYNY): ' ... I am saying don't buy, don't buy, to NYNY.'Fuel Tech (NasdaqGM: FTEK): 'I believe in this company, but I cannot get behind a company that sells at a 90x multiple. It's too rich for me.'Applebee's (NasdaqGS: APPB): 'I think APPB is going to be put for sale ... But, you know what? APPB is not that great a company ... swap out of APPB, and get into CMG.'Acadia Pharmaceuticals (NasdaqGM: ACAD): ' that is a dice-roll company - I am going to say ix-nay on the ACAD.'SBA COMM (NasdaqGS: SBAC): ' I like CCI more, but your SBAC is a good stock too.'
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Labels: APPB, BSC, CCI, CMG, COG, DF, FDX, FTEK, HNZ, Jim Cramer, Mad Money, MOS, NYNY, XTO

Goldman Sachs (NYSE: GS - News), Bear Stearns (NYSE: BSC - News), Lehman Brothers (NYSE: LEH - News), Bear Stearns (NYSE: BSC - News), Merrill Lynch (NYSE: MER - News), Accredited Home Lenders (NasdaqGS: LEND), and IndyMac (NYSE: NDE - News)
Cramer comments that companies are jumping onto the defaulted loan bandwagon, as Bear Stearns and other brokers “are moving mortgages to distressed debt, marking them up really big and giving you a better coupon ... having sold paper on the fly of defaulted, bankrupt and criminal savings and loans, I can tell you that's a lot better than selling paper that's involving people who own homes." When Gregg Greenberg asked Cramer to rate the top brokers in light of the subprime worries, he said Goldman Sachs is #1, and added people have yet to see the good in mortgages. GS is profiting from LEH and BSC reports, and Cramer predicts the stock will go back to $250 from $200. BSC earns the #2 position because it is "much more proactive than Lehman in terms of turning the mortgage morass into something really positive." For people who want a short play, Cramer suggests MER because it is just getting into mortgages and is not proactive. Cramer says the rally in LEND and NDE was short-covering. Concerning his dirty dozen list yesterday, Cramer emphasized that he is not saying that every company deserves to be on the list. In fact, Cramer says he is more likely to be long than short some of the listed stocks.

Labels: BSC, GS, Jim Cramer, LEH, MER, NDE, Wall Street Confidential

Goldman Sachs Group Inc., the largest Wall Street investment house, on Tuesday said its first-quarter profit rose 29 percent to a company record on robust trading gains and investment banking fees. Its shares rose 2 percent.
New York-based Goldman reported earnings applicable to common shareholders rose to $3.15 billion, or $6.67 per share, for the quarter ended Feb. 23, compared to $2.45 billion, or $5.08 per share, in the year-ago period.
Revenue rose 22 percent to $12.73 billion from $10.43 billion in the year-ago period.
Results surpassed Wall Street projections for earnings of $4.97 per share on $10.69 billion in revenue, according to analysts polled by Thomson Financial.
"While market conditions will regularly shift, we are confident that our client-driven strategy will continue to produce the strongest results for the firm," said Chairman and Chief Executive Lloyd Blankfein in a statement.
Goldman is the first of the Wall Street investment banks to report first-quarter results, with Lehman Brothers Holdings Inc., Bear Stearns Cos., and Morgan Stanley Inc. on tap in the coming days.
There has been increased uncertainty about the outlook for financial markets after the global stock swoon on Feb. 27, and growing concern about the effect a meltdown in the subprime mortgage industry will have on Wall Street. Goldman is among the lenders to New Century Financial Corp., the second-biggest mortgage lender to people with shaky credit histories.
Irvine, Calif.-based New Century announced Monday it lost support from its financial backers. This has fanned concern that investment banks may be swept into the fray because of declining home loans and mortgage-backed securities.
David Viniar, Goldman's chief financial officer, said Goldman's exposure to the market is "modest" when compared to the investment bank's overall business. He said Goldman began to reduce its exposure to subprime loans about two months ago after noticing instability.
"Loans were made that should have not been made by companies making them that shouldn't have been making them," he said in a conference call with reporters. "There will be a shakeout in the mortgage business. And, there will be a subprime market when it's all done, but smaller than it has been in the past."
Viniar could not quantify exactly how much exposure Goldman has to subprime loans, and said troubles "have been contained in the subprime market." He pointed out there were revenue gains from mortgage and credit products during the quarter.
Goldman's fiscal first quarter ended four days before the Dow Jones industrials plunged 416 points, so there would have been no impact on the reported results. The quarter is typically the strongest for investment banks as companies start the year with new stock offerings, acquisitions and borrowing.
Trading continued to be Goldman's biggest business, representing 74 percent of its total revenue. The strong stock market rally last year helped trading revenue rise 35 percent to $9.42 billion.
Revenue from trading fixed-income, currencies and commodities, Goldman's biggest business, rose 20 percent to $4.6 billion. Equities trading revenue climbed 26 percent to $3.1 billion.
Goldman, the world's No. 1 adviser on acquisitions for the past five years, reported investment banking revenue rose 17 percent to $1.72 billion. Goldman's asset-management and securities-services division, which includes lending and other services to hedge funds, reported a 19 percent drop in revenue to $1.6 billion due to lower incentive fees.
Goldman's shares rose $4.40, or 2.2 percent, to $207 in morning trading on the New York Stock Exchange.
Published by Joe Bel Bruno, AP Business Writer

Labels: BSC, GS, LEH, NEW

Bear Stearns (NYSE: BSC - News), Lehman Brothers (NYSE: LEH - News), Goldman Sachs (NYSE: GS - News) and J. Crew (NYSE: JCG - News)
Cramer counsels patience until next Friday when BSC, LEH and GS should be "painfully low" when the bears attack after earnings reports on Tuesday, Wednesday and Thursday respectively. This means investors can buy the Big Three at "incredible bargains, " says Cramer, adding: "Stocks react to whoever shoots first, not how good the numbers are. And right now the bears have to shoot first." He commented the "only company worth banking on next week" is J. Crew, which was held back by its "digestion of a big secondary," a stock offering which Cramer thought had "terrible pricing" at $37.50. However, Cramer thinks the price will be taken out by its great quarter, and while there is some risk, he feels it is immunized from the downside with its 2% decline. Cramer suggests buying ahead of its report on Tuesday.

March Madness: Akamai (NasdaqGS: AKAM)
Cramer likes AKAM for two reasons: First, it is one of his so-called "rubble stocks" which was unfairly savaged during the selloff; "Personally, I'm offended that it's down here," he remarked. Secondly, since it is the "leading company for optimizing online video," Cramer believes it is a great way to play March Madness, or the NCAA College basketball championship, which should attract widespread online viewership. He commented Akamai is usually much higher this time of year, and the company gave guidance that was "way up from the forecast." Cramer says Akamai is a good way to play bandwidth shortage.
Two IPOs to Avoid: Aruba Networks and Glu Mobile with stocks Motorola (NYSE: MOT - News) and Cisco (NasdaqGS: CSCO) and Alcatel-Lucent (NYSE: ALU - News)
Not all IPOs are created equal, and Cramer does not want investors to go near Aruba Networks which will trade under ARUN or Glu Mobile, which will trade under GLUU, unless their prices are cut. Aruba's main rivals are "heavy hitters" MOT and Cisco, warns Cramer and Aruba sells through vendor ALU, a company Cramer doesn't like. Mobile game producer, Glu Mobile would be a decent stock at $8, according to Cramer, but it should not be selling at the best-0f-breed $10-$12 range.
Published By SeekingAlpha
Mad Mail: Dynegy (NYSE: DYN - News) and UAL (NasdaqGS: UAUA)
Cramer commented CEO Bruce Williamson is "one of the best in the country" and predicts a move from $8.58 to $10. Cramer told another viewer the one airline he would buy would be UAL, but only as a speculative play.

Labels: AKAM, ALU, BSC, CSCO, GS, JCG, Jim Cramer, LEH, Mad Money, MOT

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.
Google Feb 540 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 6.
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.
Intuitive Surgical Apr 115 Puts (NasdaqGS:ISRG - News). ISRG's PowerRating is 3.
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.
Rio Tinto Mar 210 Calls (NYSE:RTP - News). RTP's PowerRating is 5.
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.
Bear Sterns Apr 150 Puts (NYSE:BSC - News). BSC'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.
Threshold Pharmaceuticals (NasdaqGM:THLD - News). THLD's PowerRating is 6. Eagle Bulk Shipping (NasdaqGS:EGLE - News). EGLE'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 (NYSE:LXK - News). LXK's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: BSC, EGLE, GOOG, Hot Options, ISRG, LXK, RTP, THLD