Jim Cramer's Mad Money Review

Stocks extended losses as after unexpected oil inventory drawdowns. Stocks lowered 8 times in the last 11 sessions. S&P down .1% for 2007, Dow up 3.1%, Nasdaq up 5.7%. Most of the airlines were down for the week. Latin America was also hit very hard today. Higher oil prices are approaching historic lows hitting $99.29 today. Oil inventories down 1.1 million barrels. Refinery utilization is at 87%. Crude imports dropped 700,000 barrels. Gasoline inventories up 200,000 barrels. Heating oil is up right now, which is really key. Heating oil could go up 20%. What will this mean for consumers? How to play defense against this? JJ Burns says structured investments give you a barrier protection on the upside and downside to this market. Dow leaders today are coca-cola, 3M, Boeing, Proctor & Gamble. Financials were way down today. Citigroup, FreddieMac, and JPMorgan were at 52 week lows. Crude oil came in at just $97 this afternoon, showing that some are taking profits off the table expecting oil to hit that $100 mark. Nariam Behravesh was on the show to discuss oil and the implications. He says if it comes down in the next few weeks or month, we should be ok. But if it keeps going up we could be in trouble. They also said that consumers might not feel the pressure until oil gets up around $140-150 a barrel. Consumers with larger vehicles are most affected when they have to spend $100 to fill up their tank every time. Dennis Kneale said that high oil prices have no affect on fueling inflation. Retail names have also suffered tremendously in the past month or so. Morgan Stanley Retail index has fell 10% this month to a 2-year low. In November we should expect pent-up demand, unseasonally seasonal, 06 was weak, and what's not to hate. Retail saving may not be good, but stocks could be fine. Pick your retailers carefully. Exxon Mobil is a name benefiting with oil going up. Google is also performing well right now. Some speculate that the weak dollar is responsible for some of these drops. TJ Marta thinks the dollar weakness is a historic multi-generational crisis and reflects the fact the foreign investors have lost confidence in the US market. They think our market is liquid and transparent, but it becoming less of each. Steve Liesman says the balance in the trade deficit needs to readjust. The US dollar is down 16% this year against basket of major currencies. It hit a record low against the Euro on Tuesday. FED thinks US growth will slow in 2008 between 1.8% and 2.5%. California has been hurt greatly with the number of homes sold. Jane Wells said Countrywide Finl. Is down 10%, but is projected to be profitable this quarter. They have joined other lenders to cut a deal with people who are about to see their subprime mortgage rates plummet. There are also many lawsuits brought against them for outrageous fees. Continental Air started to move up toward the end of the show. Jeff Krumpelman recommends buying Intel (INTC). They are hiking the dividend which comforts investors. 80% of their revenues come from outside the US. They have a competitive edge over AMD. He also says buy Microchip (MCHP). Final Thoughts: Be skeptical but have hope. The bad affects have not happened yet relating to the weak dollar. It is the fear that is making us worry. It has contributed to the higher price of oil

Labels: 3M Co., Citigroup Inc., CNBC, CNBC's The Call, Crude Oil, DOW, GOOG, JP Morgan Chase and Co., Nasdaq, The Call

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.
Pozen Inc. Sep 22.5 Calls (NasdaqGM:POZN - News). POZN's PowerRating is 7.
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.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News). FRO's PowerRating is 7.
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.
Baidu.com Aug 210 Calls (NasdaqGS:BIDU - News). BIDU'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.
Southern Copper Aug 110 Puts (NYSE:PCU - News). PCU'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.
Deckers Outdoor Corp. (NasdaqGS:DECK - News). DECK's PowerRating is 7.
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.
Dow Chemical Co. (NYSE:DOW - News). DOW's PowerRating is 6.
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.
Whole Foods Market Inc. (NasdaqGS:WFMI - News). WFMI's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: BIDU, DECK, DOW, FRO, Hot Stock Options, PCU, POZN, WFMI

Stocks were narrowly mixed Tuesday as investors refrained from major moves ahead of first-quarter earnings reports that begin with Alcoa Inc.'s results after the closing bell.
The aluminum producer is expected to post a profit of 75 cents per share. Wall Street looks to results from the component of the Dow Jones industrial average to not only gauge the pace of earnings for the quarter but as a proxy for the health of the overall economy.
Stocks also showed little overall movement Monday as investors awaited news of how companies fared during the first quarter, and also their expectations for the coming quarters. In the fourth quarter, Standard & Poor's 500 companies snapped an 18-quarter streak of double-digit profit gains, and Wall Street expects profit growth to remain in the single digits for the first three months of the year. In midday trading, the Dow fell 13.17, or 0.10 percent, to 12,555.97.
Broader stock indicators were slightly higher. The S&P 500 edged up 0.44, or 0.03 percent, to 1,445.05, and the Nasdaq composite index rose 2.75, or 0.11 percent, to 2,471.93.
Bonds continued to recover, with the yield on the benchmark 10-year Treasury note falling to 4.71 percent from 4.75 percent late Monday. Gold prices rose, while the dollar was mixed against other major currencies after the United States filed two complaints against China at the World Trade Organization over copyright policy. The currency is at a two-year low against the euro.
Oil prices rose after selling off Monday following doubts about Iran's comments about its uranium-enrichment achievements. A barrel of light, sweet crude for delivery on the New York Mercantile Exchange rose 36 cents to $61.87. Investors were also awaiting minutes from the Fed's most recent meeting at which it left short-term interest rates unchanged for the sixth straight time. In corporate news, Dow Chemical Co. fell $1.23, or 2.6 percent, to $45.40 after the chemical and plastics maker said it has had no discussions about a leveraged buyout. Citigroup Inc. rose 52 cents to $52.10 ahead of a major restructuring announcement, where some 26,000 workers will be reassigned or their jobs eliminated, according to a report in The New York Times. D.R. Horton Inc., the nation's largest homebuilder by deliveries, said its second-quarter sales orders fell 37 percent, led by even steeper declines in California and the Southwest. Shares fell 33 cents to $21.71.
Adolor Corp. fell $5, or 57.3 percent, to $3.72 after the biopharmaceutical company stopped clinical studies and withdrew an application for a constipation-relief drug, leading to a series of downgrades.
Shares of drug maker Mylan Laboratories Inc. jumped 65 cents, or 3.1 percent, to $21.85 after the company raised its profit forecast, citing continued strength in its generics business and new product sales.
Declining issues outnumbered advancers by about 9 to 5 on the New York Stock Exchange, where volume came to 551.4 million shares.
The Russell 2000 index of smaller companies rose 2.61, or 0.32 percent, to 814.25.
Overseas, Japan's Nikkei stock average closed down 0.45 percent. In afternoon trading, Britain's FTSE 100 rose 0.32 percent, Germany's DAX index rose 0.94 percent, and France's CAC-40 rose 0.43 percent.
Source: AP

Labels: AA, ADLR, C, DHI, DOW, MYL

Wall Street flattened Monday as investors theorized that last week's robust jobs data lessens the likelihood that the Federal Reserve will cut interest rates. Their disapppointment offset upbeat speculation about a takeover bid for Dow Chemical Co.
Since the market was closed for Good Friday, traders got their first opportunity to react to Labor Department data that showed stronger-than-expected job growth in March. The numbers indicated the economy might be in better shape than previously thought, and helped offset concerns about a continued slowdown in the housing market.
That initially lifted stocks, but investors apparently had second thoughts about the data, and so the market turned lower.
Takeover news provided some lift to the markets, with reports that Dow Chemical has been targeted by Middle Eastern investors and U.S. buyout firms in a deal that could be worth $50 billion. It would be the biggest leveraged buyout on the books.
In addition, Citigroup Inc. expanded its Asian operations by acquiring a Taiwan-based bank for $426 million. Warren Buffett's Berkshire Hathaway Inc. said it became the largest shareholder of railroad company Burlington Northern Santa Fe Corp. In midmorning trading, the Dow Jones industrial average rose 1.46, or 0.01 percent, to 12,561.66. The Standard & Poor's 500 index was up 0.04, or less than 0.01 percent, at 1,443.80, and the Nasdaq composite index fell 4.67, or 0.19 percent, to 2,466.67.
The Russell 2000 index of smaller companies was down 3.27, or 0.40 percent, at 810.08. The Labor Department reported showed nonfarm payrolls rose by 180,000 in March, above forecasts of 135,000. The unemployment rate fell to 4.4 percent, a five-month low. Bonds did regain some traction from the selloff, with the yield on the benchmark 10-year Treasury note falling to 4.73 percent from 4.75 percent. The dollar rose against other major currencies, while gold prices edged higher.
Oil continued to fall, with a barrel of light sweet crude dropping 63 cents to $63.65 on the New York Mercantile Exchange. Dow Chemical spiked $2.72, or 6.1 percent, to $47.19 after British tabloid The Sunday Express reported it could receive a buyout offer of $50 billion as soon as this week. Citigroup fell 5 cents to $51.52 after it announced the acquisition of Bank of Overseas Chinese to broaden operations in Asia, and particularly in the greater China region. The bank also said it will detail a long-expected cost cutting plan on Wednesday.
Burlington Northern Santa Fe rose $6.56 cents, or 7.9 percent, at $88.28 after Berkshire Hathaway announced it bought a 10.9 percent stake. Berkshire's class A shares rose $141 to $108,890.
Advanced Micro Devices Inc. expects its first-quarter revenue to miss Wall Street expectations due to sharply weaker sales results at its computing solutions unit. However, shares rose 46 cents, or 3.6 percent, at $13.32 after the chip maker said it will cut costs.
Sanmina-SCI Corp. fell 15 cents, or 3.9 percent, to $3.66 after cutting its second-quarter revenue forecast. The contract electronics manufacturer said it was seeing weaker demand in the communications and the high-end computing markets.
Advancing issues outnumbered decliners by about 8 to 7 on the New York Stock Exchange, where volume came to 218.3 million shares.
Soure: AP

Labels: AMD, BNI, BRK-A, C, DOW, SANM, TXU

Shares of Dow Chemical Co. rose more than 6 percent Monday after a British newspaper reported a group of Middle Eastern investors and U.S. buyout firms was preparing a bid for the huge chemicals and plastics maker.
The Sunday Express, a British tabloid, reported over the weekend that the group has secured financing backing for a $50 billion bid for the Midland, Mich.-based chemicals company. That would be the biggest leveraged buyout ever.
The Express reported the investment team, which includes private equity firm Kohlberg Kravis Roberts & Co., is preparing a bid of $52 to $58 per share. At the low end, that would be a 17 percent premium over Dow Chemical's closing stock price of $44.47 on Thursday on the New York Stock Exchange. The market was closed on Good Friday.
Dow Chemical's stock jumped $2.70 to $47.17 in morning trading on the New York Stock Exchange after rising to a new 52-week high of $47.60 earlier in the session.
The newspaper said a bid of between $52 to $58 a share could come this week, with half the financial backing coming from investors in Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman, and half from U.S. investors.
Source: AP

Labels: DOW, Dow Chemical Co.

Wall Street extended its advance Monday after last week's robust jobs data and a report that Dow Chemical Co. could be in play helped energize investors about the economy.
With the stock market closed for Good Friday, traders got their first opportunity to react to data that showed stronger-than-expected job growth in March. This indicated the economy might be in better shape than previously thought, and helped offset concerns about a continued slowdown in the housing market.
Takeover news added ballast to the markets, with reports that Dow Chemical has been targeted by Middle Eastern investors and U.S. buyout firms in a deal that could be worth $50 billion. It would be the biggest leveraged buyout on the books.
In addition, Citigroup Inc. expanded its Asian operations by acquiring a Taiwan-based bank for $426 million. Warren Buffett's Berkshire Hathaway Inc. said it became the largest shareholder of railroad company Burlington Northern Santa Fe Corp.
In the first hour of trading, the Dow Jones industrial average rose 13.89, or 0.11 percent, to 12,574.09.
Broader stock indicators were also higher. The Standard & Poor's 500 index was up 1.71, or 0.12 percent, at 1,445.47, and the Nasdaq composite index added 3.02, or 0.12 percent, to 2,474.36.
The advance built on last week's gains, where the major indexes rose each day and returned to positive territory for the year. Most major European markets were closed Friday and Monday for an extended Easter holiday.
Bonds regained some traction after falling in a shortened session Friday on the employment report. The yield on the benchmark 10-year Treasury note fell Monday to 4.73 percent from 4.75 percent.
Published by Joe Bel Bruno, AP Business Writer

Labels: BNI, BRK-A, C, DOW

Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
VCG Holding (NYSE:PTT - News). PTT's PowerRating is 8.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Dollar General (NYSE:DG - News) & Dow Chemical (NYSE:DOW - News). DG's PowerRating is 9, and DOW's PowerRating is 6.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
La Jolla Pharmaceutical (NasdaqGM:LJPC - News). LJPC's PowerRating is 9.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Biotech HOLDRS (NYSE:BBH - News). BBH's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Intel (NasdaqGS:INTC - News). INTC's PowerRating is 3.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Infousa (NasdaqGS:IUSA - News). IUSA's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: BBH, DG, DOW, Hot Stocks, INTC, IUSA, LJPC, PTT

Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
VCG Holding (NYSE:PTT - News). PTT's PowerRating is 8.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Dollar General (NYSE:DG - News) & Dow Chemical (NYSE:DOW - News). DG's PowerRating is 9, and DOW's PowerRating is 6.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
La Jolla Pharmaceutical (NasdaqGM:LJPC - News). LJPC's PowerRating is 9.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Biotech HOLDRS (AMEX:BBH - News). BBH's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Intel (NasdaqGS:INTC - News). INTC's PowerRating is 3.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Infousa (NasdaqGS:IUSA - News). IUSA's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: BBH, DG, DOW, Hot Stocks, INTC, IUSA, LJPC, PTT

Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Dow Chemical (NYSE:DOW - News). DOW's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Vanda Pharmaceuticals (NasdaqGM:VNDA - News) & Advance America (NYSE:AEA - News). VNDA's PowerRating is 8, and AEA's PowerRating is 6.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Stride Rite (NYSE:SRR - News). SRR's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Allergan (NYSE:AGN - News). AGN's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Quest Diagnostic (NYSE:DGX - News). DGX's PowerRating is 4.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
NutriSystem (NasdaqGS:NTRI - News). NTRI's PowerRating is 2.
PowerRatings are courtesy of PowerRatings.net

Labels: AEA, AGN, DGX, DOW, Hot Stocks, NTRI, SRR, VNDA

Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Dow Chemical (NYSE:DOW - News). DOW's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Red Hat (NYSE:RHT - News) & Ruby Tuesday (NYSE:RI - News). RHT's PowerRating is 8, and RI's PowerRating is 7.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Icici Bank (NYSE:IBN - News). IBN's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Regal Entertainment (NYSE:RGC - News). RGC's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
HCC Insurance Holdings (NYSE:HCC - News). HCC's PowerRating is 4.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Books-A-Million (NasdaqGS:BAMM - News). BAMM's PowerRating is 2.
PowerRatings are courtesy of PowerRatings.net

Labels: BAMM, DOW, HCC, Hot Stocks, IBN, RGC, RHT, RI

Thornburg Mortgage (NYSE: TMA - News): Cramer comments some of the so-called "dirty dozen" which have been targeted by the shorts "didn't fall off the turnip truck." He points to TMA's CEO, Garrett Thornburg, who says the company is demanding more detailed documentation on the so-called Alt-A loans, which often don't receive enough scrutiny and which the bears say are often vulnerable to defaults and delinquencies. "Holy Cow!" Cramer exclaimed, "This guy is actually a legitimate lender!" He also found hope in strong insider buying.
Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), CVRD (NYSE: RIO - News), BHP Billington (NYSE: BHP - News): Cramer noted DOW rose 6% on rumors of an acquisition, and he would buy it at $43. Cramer predicts AA "won't be independent at this time next year, says BHP "really ramping" and rising nickel is good news for RIO; "That stock is just going nuts!"

Labels: AA, BHP, DOW, Jim Cramer, Jim Cramer's Stop Trading, RIO, TMA

Getting Defensive: Kroger (NYSE: KR - News), Safeway (NYSE: SWY - News), Supervalu (NYSE: SVU - News), Colgate-Palmolive (NYSE: CL - News), Kimberly-Clark (NYSE: KMB - News)
"Subprime is the only problem," Cramer reassured investors after the "absolutely brutal" downturn on Tuesday which affected the whole market. While mortgage lenders should be suffering from subprime lending woes for awhile, Cramer remarks, "It is wrong for the Street to be so indiscriminate ... before we damn the whole market, let's remember what were damning." However, this widespread decline provides a buying opportunity in defensive sectors, such as food, drugs and utilities, sectors which historically perform well when housing is doing badly. Cramer suggests looking at KR, SWY, SVU, CL and KMB, but only after three days, since "the future on the commodity that has captured stocks -- the S&P 500 -- expires Friday, so I expect very little upside in this group until Monday."
Thank You for Smoking: Altria (NYSE: MO - News), Altria's When-Issued Shares MO-WI (MOWI), Kraft (NYSE: KFT - News), General Mills (NYSE: GIS - News), Kellogg (NYSE: K - News), Sara Lee (NYSE: SLE - News)
"There's nothing more defensive than cigarettes," says Cramer who recommends Altria's when-issued shares, MO-WI, which are comprised of pure Philip Morris stock without the Kraft spinoff. Cramer comments Philip Morris is best-of-breed and the MO-WI shares offer a higher dividend. He suggests buying before March 30th when MO-WI will rejoin Altria. Although Cramer doesn't dislike KFT, he prefers food stocks GIS, which has been "doing fabulously," K and SLE, which have more "consistent and exciting growth" than KFT.
Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), BHP Billiton (NYSE: BHP - News), and Companhia Vale do Rio Doce (NYSE: RIO - News)
Cramer admits he has been waiting since February for DOW and AA to dip after takeover rumors which were printed a British newspaper. While he discourages speculation on potential buyouts if the fundamentals are not strong, "the fundies for both DOW and AA are pretty good." According to the rumors, Dow could be purchased by private equity firms at $60 a share, a substantial premium from its present rate of $42.94. He notes the company has a 3.5% dividend yield, has been raising prices and cutting costs. There is talk that BHP and RIO are eyeing AA at $40 billion, or $40.68 a share, while its current price is $32. The companies need the extra smelting capacity, and Cramer comments aluminum should perform better than it has been. "Buy Dow and Alcoa because when there's smoke, there's fire."
CEO Interview: Brian Roberts, Comcast (NasdaqGS: CMCSA) with Verizon (NYSE: VZ - News)
Cramer asked Brian Roberts if Comcast raised its capital expenditure in order to compete with rival Verizon, and he replied, "We upped our spending because people are buying our new products in record numbers. We're selling 50,000 phone subscriptions a week." This 30% increase "costs some money," although Roberts added these expenses will not interfere with Comcast's buyback plan; "We have bought back almost 10% of stock in the last two-and-a-half years, and we're going to continue buying back stock," Roberts said. Cramer would pull the trigger on Comcast and referred to Roberts as "money in the bank."
Published by SeekingAlpha

Labels: AA, BHP, CL, DOW, GIS, Jim Cramer, K, KFT, KMB, KR, Mad Money, MO, RIO, SLE, SVU, SWY, VZ

Getting Defensive: Kroger (NYSE: KR - News), Safeway (NYSE: SWY - News), Supervalu (NYSE: SVU - News), Colgate-Palmolive (NYSE: CL - News), Kimberly-Clark (NYSE: KMB - News)
"Subprime is the only problem," Cramer reassured investors after the "absolutely brutal" downturn on Tuesday which affected the whole market. While mortgage lenders should be suffering from subprime lending woes for awhile, Cramer remarks, "It is wrong for the Street to be so indiscriminate ... before we damn the whole market, let's remember what were damning." However, this widespread decline provides a buying opportunity in defensive sectors, such as food, drugs and utilities, sectors which historically perform well when housing is doing badly. Cramer suggests looking at KR, SWY, SVU, CL and KMB, but only after three days, since "the future on the commodity that has captured stocks -- the S&P 500 -- expires Friday, so I expect very little upside in this group until Monday."

Thank You for Smoking: Altria (NYSE: MO - News), Altria's When-Issued Shares MO-WI (MOWI), Kraft (NYSE: KFT - News), General Mills (NYSE: GIS - News), Kellogg (NYSE: K - News), Sara Lee (NYSE: SLE - News)
"There's nothing more defensive than cigarettes," says Cramer who recommends Altria's when-issued shares, MO-WI, which are comprised of pure Philip Morris stock without the Kraft spinoff. Cramer comments Philip Morris is best-of-breed and the MO-WI shares offer a higher dividend. He suggests buying before March 30th when MO-WI will rejoin Altria. Although Cramer doesn't dislike KFT, he prefers food stocks GIS, which has been "doing fabulously," K and SLE, which have more "consistent and exciting growth" than KFT.

Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), BHP Billiton (NYSE: BHP - News), and Companhia Vale do Rio Doce (NYSE: RIO - News)
Cramer admits he has been waiting since February for DOW and AA to dip after takeover rumors which were printed a British newspaper. While he discourages speculation on potential buyouts if the fundamentals are not strong, "the fundies for both DOW and AA are pretty good." According to the rumors, Dow could be purchased by private equity firms at $60 a share, a substantial premium from its present rate of $42.94. He notes the company has a 3.5% dividend yield, has been raising prices and cutting costs. There is talk that BHP and RIO are eyeing AA at $40 billion, or $40.68 a share, while its current price is $32. The companies need the extra smelting capacity, and Cramer comments aluminum should perform better than it has been. "Buy Dow and Alcoa because when there's smoke, there's fire."
CEO Interview: Brian Roberts, Comcast (NasdaqGS: CMCSA) with Verizon (NYSE: VZ - News)
Cramer asked Brian Roberts if Comcast raised its capital expenditure in order to compete with rival Verizon, and he replied, "We upped our spending because people are buying our new products in record numbers. We're selling 50,000 phone subscriptions a week." This 30% increase "costs some money," although Roberts added these expenses will not interfere with Comcast's buyback plan; "We have bought back almost 10% of stock in the last two-and-a-half years, and we're going to continue buying back stock," Roberts said. Cramer would pull the trigger on Comcast and referred to Roberts as "money in the bank."

Published By SeekingAlpha

Labels: AA, BHP, CL, DOW, GIS, Jim Cramer, K, KFT, KMB, KR, Mad Money, MO, RIO, SLE, SVU, SWY, VZ

Stocks were narrowly mixed Tuesday as concerns about a market correction offset investor optimism that acquisition activity is on pace to set a record this year.
The $45 billion buyout of electric utility TXU Corp. injected confidence into the market that merger and acquisition activity could surpass last year's record $4 trillion level. The deal, led by a consortium of buyout shops that include Kohlberg Kravis Roberts & Co. and Texas Pacific Group, would go down as the largest leveraged buyout in U.S. history.
Other deals announced before the opening bell included Station Casinos Inc., which agreed to be bought by a private equity firm started by the company's founding family. Temple-Inland Inc., a conglomerate that offers everything from packaging material to financial services, announced it plans to separate itself into three standalone public companies.
However, stocks were unable to sustain gains as there continued to be concern major indexes are in need of a correction. The Dow Jones industrials, after hitting a peak last week, fell for three straight sessions in their worst weekly decline since August.
"Despite the buyout news, we're seeing the broader market a little concerned that we've had such strength without a correction," said Peter Dunay, an investment strategist with New York-based Leeb Capital Management. "We maybe be in a period where the market wants to step back for a bit."
In late morning trading, the Dow rose 9.70, or 0.08 percent, to 12,657.18.
Broader stock indicators were mixed. The Standard & Poor's 500 index was up 2.06, or 0.14 percent, at 1,453.25, and the Nasdaq composite index fell 7.81, or 0.31 percent, to 2,507.29.
Bonds continued to rise from last week's sell-off, with the yield on the benchmark 10-year Treasury note falling to 4.65 percent from 4.68 percent late Friday. Bonds had been weaker amid concerns that subprime lenders would be forced to take write-downs if consumers defaulted on mortgage payments.
The dollar was mixed against other major currencies, while gold prices rose.
Oil prices rose as a winter storm plowed across the United States, spurring expectations of strong demand for heating oil. A barrel of light sweet crude rose 31 cents to $61.45 on the New York Mercantile Exchange.
TXU rose $7.67, or 12.8 percent, to $67.69 after it agreed to be bought by private equity firms. Directors of the electric utility voted Sunday night to recommend that shareholders approve the sale, which values its stock at a 15 percent premium.
Meanwhile, Dow Chemical Co. spiked $2.88, or 6.6 percent, to $46.33 on speculation it could be the target of a leveraged buyout. London's Sunday Express newspaper, in an unsourced report, said the chemical company might be given an offer of about $54 billion from buyout funds.
Station Casinos rose $3.51, or 4.2 percent, to $86.81 after it agreed to go private in a $5.4 billion deal, which represents an 8 percent premium over its closing price on Friday. The deal still allows Station to solicit acquisition proposals from third parties for 30 days.
Temple-Inland rose $7.55, or 13.7 percent, to $62.50 after it agreed to spin off its real estate and financial services arms, and sells its timberland business. The decision came days after activist shareholder Carl Icahn said he'd wage a proxy fight to seize control of the board.
Gilead Sciences Inc. rose 30 cents to $73.93 after the biopharmaceutical company said one of its drugs used to treat HIV works well with other therapies. Merck & Co. rose $1.10, or 2.6 percent, to $44.04 after the third-biggest U.S. maker of prescription drugs was upgraded to "Buy" from Citigroup.
Declining issues barely outpaced advancers on the New York Stock Exchange, where volume came to 475.4 million shares.
The Russell 2000 index of smaller companies fell 1.88, or 0.23 percent, at 824.76.
Overseas, Japan's Nikkei stock average closed up 0.15 percent. In afternoon trading, Britain's FTSE 100 was up 0.56 percent, Germany's DAX index added 0.55 percent, and France's CAC-40 rose 0.87 percent.

Labels: DOW, GILD, MRK, STN, Stocks, TIN, TXU

eBay (NASDAQ:EBAY - News) beat earnings expectations on Wednesday afternoon with $0.31 EPS over an estimated $0.28 EPS. EBAY's PowerRating is 4.
Qualcomm (NASDAQ:QCOM - News) beat earnings on Wednesday afternoon, announcing $0.43 EPS over an expected $0.42 EPS. QCOM's PowerRating is 4.
AT&T (NYSE:T - News) announces earnings Thursday before the open; watch for $0.59 EPS. T's PowerRating is 5.
Dow Chemical (NYSE:DOW - News) looks set to announce $0.93 EPS on Thursday morning. DOW's PowerRating is 5.
Analysts are expecting Ford (NYSE:F - News) to report -$0.91 EPS on Thursday morning before the bell. F's PowerRating is 6.
Lockheed Martin (NYSE:LMT - News) is expected to report $1.45 EPS when the company reports quarterly earnings tomorrow. LMT's PowerRating is 5.
Nokia (NYSE:NOK - News) reports quarterly earnings Thursday morning; analysts expect $0.35 EPS. NOK's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: DOW, EBAY, F, LMT, NOK, QCOM, T

Here are 7 stocks to watch for today. This list comes directly from the TradingMarkets Stocks Indicators page.
Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
Dow Chemical (NYSE:DOW - News). DOW's PowerRating is 6.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Antworth Mortgage (NYSE:ANH - News). ANH's PowerRating is 6.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term up trends.
KT Corp (NYSE:KTC - News). KTC's PowerRating is 7.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order to qualify as a "Trading Window" candidate, we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average.
International Flavors & Fragrances (NYSE:IFF - News). IFF's PowerRating is 6.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Invitrogen (NYSE:IVGN - News). LFB's PowerRating is 5.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Walgreen (NYSE:WAG - News). WAG's PowerRating is 3.
Short Windows Candidates: These are stocks which are in a strong downtrend, as determined by a proprietary trend filter and whose current bar has its low above the 4-day moving average. Historically, these stock on average have had a larger than normal short-term downside reversals. In order to qualify as a "Trading Window" candidate, the 10-period ADX must be 30 or higher and the -DI must be greater than the +DI. Or we must have a 14-period -DI reading of above 30 (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its low of the day above the 4-period moving average.
The Hershey Company (NYSE:HSY - News). HSY's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: ANH, DOW, Hot Stocks, HSY, IFF, IVGN, KTC, WAG