Jim Cramer's Mad Money Review

Erin Burnett started the show today showing crude oil up about $0.40. Financial earnings are predicted to be down for the next few days. Fannie May seems to be taking a dip downward. HSBC Holdings (HBC) is noted as being one of the financials with weak stock. Electronic sales have actually shown an increase despite the weak retail market. Homebuilders lead decline. Steve Liesman gives the econ recon, saying investors are scrambling to buy junk bond yields which have shown a rapid incline in valuable stock. The stock in credit companies are reported as being much weaker than the drop that was seen back in August. Lewis Alexander a Citi Chief Economists says that the drop we see in short term stocks will be short lived and a dependence on the FED to contain the financial stress, will affect our resilience to a recession. Brian Shactman of CNBC says that Cyber Monday did not act as the number online sales day of the year. 72% of online retailers give Cyber Monday "deals," compared to 43% last year. Such as free shipping costs and percentage slashing. Sales are expected to break $700 M for this year's Cyber Monday. Wal-Mart, Target and JC Penny are among the top contenders for promotional sales. E-Bay and Amazon.com are doing very well along with direct company sales websites. Next, China was discussed with John Maziotti, mayor of Palm Bay, FL. He is part of the proposed ban on goods from China. Proposed ban does not include emergency products. Palm Bay are looking for funds to be raised for a "made in America" Christmas tree lighting. He says the loss of jobs and the unhealthy variables included in imported products from China are the main issues backing the proposed ban. Robert Shuller of Macro-Markets says that to fix the housing market in the long term is going to take the creation of a consumer-oriented focus. To offer mortgages with outs in the initial contract will be one of the first issues on the reform list. Stop Trading with Jim Cramer was next. He supports the proposed ban on importing Chinese manufactured goods. Garmin (GRMN) is recommended to buy and sell 18 months from now. Richard Peterson from Thomson Financial says that this will be a record high for global IPO's. Russia leads with $8 B, New York in 4th place with $4.3B, but leads the market in American currency exchanges. Jim Goldman of CNBC reports that Yahoo (YHOO) small business servers are down. Hosting 3 million sites this will be causing some problems says Jim Goldman. Oil is responsible for 33% of Yemen GDP.

Labels: Amazon.com, China, CNBC, EBAY, Erin Burnett, JCP, Jim Cramer, Mad Money, Street Signs, street signs recap, TGT, Wal-Mart

On Tuesday's show Cramer gave out 5 rules for investing in the stock market. His first rule is that there is a market for everything, including the stocks themselves. He said an example was how ethanol stocks were very hot about a year ago, and then several IPOs came on the market, so there was an oversupply of ethanol stocks on the market and the entire sector went down. So the ethanol business and news didn't matter because there were too many ethanol stocks available. Cramer said another example was his recommendation of Sealy (ZZ) at its IPO where he liked the stock, but didn't realize that there was a glut of IPOs, so the IPO market was saturated and the stock tanked.
Cramer took soma calls. The first caller asked how you can know whether an IPO is a good investment or not, and Cramer said that the key is the offering price for the shares. Another caller asked if there are any sectors that Wall Street overlooks, and Cramer said that you should look for a sector that used to have 10 analysts and only has 1 or 2 now and consider that sector for a turnaround. The next caller asked about the Vonage (VG) IPO, and Cramer said that this IPO was overhyped and that they should not have let the company sell stock to its customers.
Cramer's second rule is to know what you own. Sectors don't always matter since stocks within a sector can rally without others. Industries within a sector are the key to rallies, not the sector itself. An example occurred a couple years ago when he called for a tech rally and recommended Cisco (CSCO) and Microsoft (MSFT) because they were the big tech stocks, and he should have been thinking more specifically about the gadget industry within tech, since stocks like Apple (AAPL) were up big. He also said that he wants you to do at least 1 hour of homework each week for each stock you own. He thinks you should give your money to a mutual fund if you don't have enough time.
A caller asked why you don't see big rallies in the biotech sector, and Cramer explained that biotech stocks are moved by FDA rulings, not broader industry moves. The next caller asked how to find the pin action within a sector that Cramer talks about, and he used an example where Boeing (BA) reported a great quarter, and you should look to see who makes the components of the planes they make, since their sales will rise with Boeing's. The next caller asked how to predict performance if a sector is split, like Internet search with Yahoo! (YHOO) and Google (GOOG), and Cramer said that you need to look at management and other company specific factors in that case.
Cramer's third rule is that Latin America should always be treated as a shorter term trade since Wall Street has preconceived notions about the region that prevent it from being a long term investment, and they are the ones who move the market. You should always take profits as a Latin American stock moves up so you don't get caught when the big investors move out of their trade. A caller asked how important our economy is to Chinese stocks, and Cramer said that he doesn't like to recommend Chinese stocks because he doesn't trust their economy. The other caller asked about stocks like Wal-mart (WMT) and Starbucks (SBUX) that are expanding in China, and Cramer said that Starbucks could be the next Yum! Brands (YUM) which doubled their stock price after they doubled their stores in China.
Cramer's next rule is that being a lemming is ok, but he still wants you to go your homework, but if you agree with the moves that big investors are making, then it's good to go with the momentum.
His last rule was to not be afraid to say that something is too difficult to invest or trade on. His example is restaurant same store sales, which he has been crushed on in the past since there are so many factors that contribute to the number and the reaction. He said you aren't being weak, but smart by focusing your time someplace where you can make money.

Labels: AAPL, BA, China, CSCO, GOOG, IPO, Jim Cramer, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, MSFT, SBUX, VG, WMT, YHOO, YUM, ZZ

Melissa Lee hosted today for Erin and started off Tuesday's show with an exclusive news break talking about stocks being down for the seventh time in nine sessions. Crude oil reached $98 for the first time, reaching a new high. They talked about Google and increasing their price target to $900 per share. Terry is looking for Google to mover in to powerful display advertising to gain market share, as advertising goes digital.
Samantha Davies came back talking about the bad weather approaching this week for the holiday season. Wednesday it will be very cold and rainy from the coast to the Great Lakes. On Thanksgiving it will be even colder in the Midwest and should expect many delays at several airports. Tim Zagat was on the show discussing the descent in airlines. He discussed specifically the increase in delays and cancellations. International airlines have fared much better than US domestic carriers. Midwest airlines and JetBlue airways have been the most successful economy carriers, because they are mostly business class airlines.
They came back discussing the drastic increases in oil and how the dollar weakness helps push crude oil to record closes.
The Bond Report: Santelli showed how 2-year note rates are still decreasing. He also said that the dollar index is decreasing very rapidly.
The Faber Report: Freddie Mac (FRE) has taken a large hit on their portfolio, especially today. Fannie Mae (FNM) has also taken a hit. Countrywide stock is below $10 a share and says that bankruptcy rumors are "absolutely false." 40% of their assets are in option arms. Fred Cannon has a $66 price target on FRE and $62 on FNM. He said that Fannie Mae gave us more of an insight to upcoming quarters. The government will eventually turn to GSE's.
Melissa came back with Paul Goodwin discussing the growing bear market in China. Many of the stocks are currently overvalued as well as very risk adverse. Aluminum China and E House China Holdings were two stocks that Goodwin said are taking your money and falling into downward trends. Predicts a rough three months for these stocks.
Lee came back discussing the value of the Canadian dollar and the Toronto Blue Jays. The Blue Jays make about $740,000 for every .01 cent increase in the loon compared to the US dollar.
Bertha Coombs discussed Oprah's favorite things this year. She gave away a $3800 LG HDTV Refrigerator on her show among many other lavish gifts.

Labels: China, CNBC, Crude Oil, Erin Burnett, FNM, FRE, GOOG, JetBlue Airways Corp., Melissa Lee, Midwest Air, oprah, Santelli, Street Signs, street signs recap, the bond report, the faber report

Chinese stocks rose to a record Wednesday, marking a complete recovery from their late February swoon that sparked a selloff in global financial markets.
Gains in real estate stocks lifted the benchmark Shanghai Composite Index 0.8 percent to 3,057.38, breaking the previous closing high set Feb. 26, a day before it plunged nearly 9 percent. That drop sparked declines in New York, London and through much of Asia for about a week.
The key index on China's smaller market in Shenzhen rose 1.4 percent to 805.68, also a record high.
Analysts said they expect further gains in the near-term for the market, although "gains won't come as easily as before," said Tang Xiaosheng, an analyst at Guosen Securities.
"The blue chips' valuations are no longer attractive after recent rises and many investors would wait for their first-quarter earnings for trading clues," Tang said.
Listed firms generally publish their quarterly results in April and May.
Real estate companies rallied amid speculation that the central bank will raise yuan rates at a quicker pace after Gov. Zhou Xiaochuan said China doesn't intend to build more foreign exchange reserves.
In an interview with the EmergingMarkets newspaper distributed Tuesday at a meeting in Guatemala City, Zhou was quoted as saying China's monetary authority doesn't "intend to go further and accumulate (foreign) reserves." He added that "many people say that foreign exchange reserves in China are (already) large enough."
It wasn't clear how China might limit its currency reserves, which total more than $1 trillion, and are rising around $20 billion a month.
Zhou was in Guatemala's capital for the annual Inter-American Development Bank meeting.
Property companies rank stand to benefit from a stronger yuan because their land and property holdings are denominated in local currency, analysts said.
Shanghai Lujiazui Finance & Trade Zone Development, a flagship developer in the city, jumped 10 percent to 18.44 yuan. Beijing Huaye Realestate rose 9.7 percent to 12.05 yuan and Shanghai Jinqiao Export Processing Zone Development advanced 5.5 percent to 14.30 yuan.
Banks also closed higher, helping lift the market, as their yuan-denominated assets could also get a boost from yuan rises.
Shanghai Pudong Development Bank finished up 4.6 percent at 26.17 yuan and China Minsheng Banking rose 1 percent to 11.89 yuan. UBS upgraded Minsheng to "buy" from "neutral" and raised the price target for the lender to 14.40 yuan from 11.40 yuan.
Published by AP

Labels: China, Chinese Stocks, Hot Stocks, Shanghai

China's top port builder, China Communications Construction Co. (CCCC), plans to raise up to US$2.1 billion in an IPO after setting a price range of HK$3.40-HK$4.60 per share for a December listing in Hong Kong, a source familiar with the deal said on Monday. The state-owned company, which will kick off a formal marketing roadshow on Nov. 28, is offering 3.5 billion shares at a price range representing 13 to 18 times its 2006 prospective price to earnings multiple. Texas-based Fluor Corp. (FLR.N: Quote, Profile, Research), a U.S. engineering and construction company, trades at 32 times 2006 earnings. Hong Kong's stock market, which has seen a flood of new listings this year, is also awaiting IPOs from hotel operator Shanghai Jin Jiang International Hotels, China Communications Services and China Coal Energy that could raise more than a combined US$2 billion by the end of the year. China Communications Construction's businesses range from infrastructure design and construction to dredging and port machinery manufacturing. The IPO proceeds will help it expand its business to new engines, including railway construction and heavy marine machinery manufacturing. The retail portion of its Hong Kong offering will run from Dec. 1 to Dec. 6, with final pricing on Dec. 9. A trading debut is set for Dec. 15. The company plans to earmark $240 million worth in shares to three investors, including China Life Group, New World Development (0017.HK: Quote, Profile, Research) chairman Cheng Yu-tung and Singapore's GIC Direct Investments, sources told Reuters on Friday. The offering is being sponsored by UBS (UBSN.VX: Quote, Profile, Research), Merrill Lynch (MER.N: Quote, Profile, Research) and BOC International.
CCCC had originally planned to list simultaneously in Hong Kong and Shanghai, which would make it only the second company to do so after Industrial & Commercial Bank of China (1398.HK: Quote, Profile, Research) (601398.SS: Quote, Profile, Research), but technical issues thwarted the plan. There is no clear timeline for when it will raise money in Shanghai.
Source: Reuters.com

Labels: China, Construction, FLR, Innitial public offering, Investments, MER, Stock, UBSN