Jim Cramer's Mad Money Review

Coca-Cola (KO), Pepsi-Co (PEP), Merck (MRK), Altria (MO)
Cramer expressed his disappointment with the Fed’s “dinky” quarter point rate cut and declared the Bernanke is out of touch with reality. He suggested investors play by the rules of 1990 and retreat to defensive stocks, such as KO, PEP, MRK and MO. “Don’t panic, but take cover in recession stock,” Cramer said.
Four Horsemen of China: Focus Media (FMCN), Baidu (BIDU), PetroChina (PTR), China Mobile (CHL)
Given his disillusionment with the Fed, Cramer decided to focus on global stocks and focused on one of his Four horsemen of China, Focus Media. (Other horsemen include Baidu, PetroChina, and China Mobile). The market is uneasy about FMCN’s acquisition of its competitor CGEN Digital because of concerns over margins, but Cramer likes the deal because it resembles monopoly-building. Its acquisition of Allyes AdNetwork, an internet advertising company, has been successful, and Cramer predicts Google might want to buy a stake in FMCN. CGEN Digital will be integrated smoothly and margins will improve, according to Cramer, but he added the stock could fall slightly because of integration risk. He would get into FMCN at its next dip and predicts it will rise from $54.86 to $75.

What a Gas: Air Products & Chemicals (APD)
A recent Wall Street Journal article discussed the worldwide shortage of helium, which is available only in a few places. This gives APD an opportunity to raise prices, and since the stock had dropped and received a downgrade from JPMorgan, Cramer would take advantage of the opportunity to buy. APD has already made the move from $80 to $100, and according to Cramer’s thesis, it is headed for $120 and higher.

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Labels: APD, BIDU, CHL, FMCN, Jim Cramer, KO, Mad Money, MRK, PEP, PTR

The Dow closed down 211 points and the Nasdaq finishing down 34. The S&P 500 has now given up all of its gains on the year. Najarian continues to like the four horseman names like Apple (AAPL), Google (GOOG) and Research In Motion (RIMM) which showed strength on Wednesday. Adami recommended getting long General Motors (GM) right here with a specific stop price in mind. Finerman found it strange that Fannie Mae (FNM) went up Wednesday. Crude oil came close to $100 on Wednesday, but fell just short and finished the day at $97.19. Gartman feels the stock market is behaving horribly and he is short names like Harley-Davidson (HOG), Tiffany (TIF) and Coach (COH) and long Microsoft (MSFT)and Apple (AAPL). Gartman's favorite position right now is short Cummins (CMI).
CNBC Pharmaceuticals Reporter Mike Huckman joined the show to discuss his take on big pharma stocks. Huckman explained that Pfizer (PFE) is having issues with safety concerns on a stop smoking drug, falling Lipitor sales and generic competition. Huckman also mentioned that Merck (MRK), Eli Lilly (LLY) and Bristol Myers (BMY) were all down on Wednesday. Finerman likes Johnson & Johnson (JNJ).
Investors tend to sell their biggest losers towards the end of the year to reduce the tax hit they take from their winners. Some of the names at 52-week lows are Citigroup (C), Pfizer (PFE), Merck (MRK), J.C. Penny (JCP), Capital One Financial (COF), Advanced Micro Devices (AMD) and AIG (AIG).
Word on the Street
Macke recommended buying The Gap (GPS) on dips. Finerman likes Limited (LTD) on valuation. Adami suggested buying Citi Trends (CTRN) ahead of earnings for Monday. Najarian likes Target (TGT) for its valuation in retail.
Deere & Company (DE) traded up 5% after profits rose 52%.
Najarian suggests looking at Agco (AG)
Najarian noted strong call options trading activity on Tibco Software (TIBX).
Pops & Drops
Pops - Google (GOOG) traded up 2%
U.S. Steel (X) traded up 5% also bucking the down trend in the market.
Drops - Tesoro (TSO) fell 3%
American International Group (AIG) fell 6%.
Circuit City (CC) fell 6% after a JPMorgan analyst downgraded the stock.
Jamba Juice (JMBA) plunged 30%
Final Trade
Macke says don't buy stocks if you don't have to and Adami and Finerman just gave thanks in the holiday spirit.
Najarian likes Apple (AAPL) and he thinks the stock will explode into January.

Labels: AAPL, BMY, CMI, CNBC, CNBC's Fast Money, COF, COH, Fast Money Recap, FNM, GM, GOOG, HOG, LLY, LTD, MRK, MSFT, pfe, RIMM, TGT, TIF

The Dow closed up 51 points and the S&P 500 finished up 6 points. Crude oil is closing in on $100 as we near Thanksgiving. John Kilduff, an analyst at MF Global, joined the show to discuss his take on oil. He predicts the top on crude could be in area of $108 to $110. Adami favors Chevron (CVX), which he feels is cheaper then ExxonMobil (XOM). He advises looking at refiners like Tesoro (TSO) here. Finerman owns Tesoro and she is also looking at buying ConocoPhillips (COP).
Regional airlines are benefiting from the delays and congestion at larger airports. Airlines like Midwest (MEH) and Allegiant (ALGT) are benefiting from this trend. Adami says the way to play this trend is to buy the private jet makers like Textron (TXT), General Dynamics (GD), Embrear (ERJ) and Honeywell (HON).
For Defensive stocks Najarian likes Merck (MRK), Genentech (DNA) and Biogen (BIIB). However, Finerman would get defensive with names like Altria (MO) and Kraft (KFT). Adami also recommends Altria, Unilever (UL) and Procter & Gamble (PG).
Word on the Street
Target (TGT) reported a 4.4% fall in profits.
Whole Foods Market (WFMI) reported a decline in fourth-quarter profits, but sales top Wall Street estimates.
Google (GOOG) trades up 4% after Credit Suisse raised their price target to $900. Najarian believes names like Research In Motion (RIMM), Google and Apple (AAPL) are starting to show strength again. He would look to get back into these stocks around these levels. Adami prefers Microsoft (MSFT).
Najarian would keep an eye on ISIS Pharmaceuticals (ISIS) and Sangamo Biosciences (SGMO).
Pops & Drops
Pops - Barnes & Noble (BKS) traded up 13% after reporting higher internet sales.
Exxon (XOM) traded up 4% after UBS upgraded the stock.
Kraft (KFT) traded up 2%.
Utilities EFT (XLU) traded up 1%.
Drops - Office Depot (ODP) fell 7% after reporting a 9% decline in profits.
Echostar (DISH) fell 7%
Ericsson (ERIC) fell 12%
Hovnanian (HOV) fell 9%.
GameStop (GME) fell 4% after the video game maker missed analyst estimates.
Saks (SKS) fell 2% after missing estimates.
Final Trade
Macke likes the price action in Microsoft (MSFT).
Adami recommends Freeport McMorRan (FCX).
Finerman says to short the iShares Dow Jones US Real Estate ETF (IYR).
Najarian would purchase Pulte Homes (PHM) for a short term buy.

Labels: ALGT, BIIB, CNBC, CNBC's Fast Money, COP, CVX, DNA, erj, Fast Money, GD, HON, KFT, MEH, MRK, PG, TGT, TSO, TXT, ul, XOM

Wall Street finished a back-and-forth session higher Monday as investors overcame some of their nervousness about the credit markets and uneven earnings and found solace in the technology sector.
Several companies including drug maker Merck & Co. reported decent third-quarter results, but investors were unhappy with rival drug maker Schering Plough Corp.'s results. They were also mindful of the downbeat profit outlooks from several blue chip companies last week.
Still, after an early slide, the market seemed to grow optimistic about Apple Inc.'s earnings, which were scheduled to be released after the closing bell. That sent tech stocks higher, and by early afternoon, other stocks were tagging along.
Disappointing earnings and Standard & Poor's downgrade of another series of mortgage-backed securities sent stocks plunging Friday, taking the Dow Jones industrials down 366 points.
"It is not unusual for a big down day to be followed by an up day. I think the bargain hunters are out there," said Brian Gendreau, investment strategist for ING Investment Management. "It seems there's fairly strong demand out there, despite all the bloodletting on Friday."
He noted that while some big-name companies' results have disappointed Wall Street, about two-thirds of earnings so far have beat estimates and outlooks remain upbeat for the technology and health care sectors.
According to preliminary calculations, the Dow rose 44.95, or 0.33 percent, to 13,566.97, after falling more than 100 points early in the session. Broader stock indicators finished higher, with tech stocks leading. The S&P 500 index rose 5.70, or 0.38 percent, to 1,506.33, and the technology-dominated Nasdaq composite index rose 28.77, or 1.06 percent, to 2,753.93.
Source: Madlen Read, AP Business Writer

Labels: AAPL, MRK, SGP

Shares of German drugmaker Merck KGaA climbed sharply Tuesday after the company released successful new study results for its cancer drug Erbitux. Shares of biotechnology company ImClone, which developed the drug, soared nearly 24 percent in the U.S.
Merck shares rose more than 5.7 percent at 97.56 euros ($134.52) in Frankfurt trading. ImClone Systems Inc., from which Merck bought the Erbitux licensing rights for outside the U.S. and Canada from in 1998, jumped 21 percent to $45.93, up $8.
Merck said the phase III study, carried out on patients with advanced non-small cell lung cancer, showed that when Erbitux was combined with chemotherapy, it led to increased overall survival rates compared with when chemotherapy was used alone.
Erbitux is already among Darmstadt-based Merck's top-selling products, and the study results appeared to strengthen its prospects.
"Non-small cell lung cancer that has spread from the primary site is extremely difficult to treat so we are delighted with these results," said Wolfgang Wein, the company's senior executive vice president for oncology.
Published by AP

Labels: Cancer Drugs, IMCL, MRK

Dow but not Out: JPMorgan Chase (NYSE: JPM - News), General Motors (NYSE: GM - News), Citigroup (NYSE: C - News), AIG (NYSE: AIG - News), Honeywell (NYSE: HON - News), DuPont (NYSE: DD - News) and Hewlett-Packard (NYSE: HPQ - News), AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), Pfizer (NYSE: PFE - News) and Merck (NYSE: MRK - News)
After its mid-week drop, the Dow's rally on Thursday inspired Cramer to express confidence in the market and to repeat his prediction that the Dow will reach 14, 548 by the end of the year. He notes only four Dow stocks, JPM, GM, C and AIG are levered to current problems and only JPM and C are directly connected to mortgages. However, he commented HON, DD and HPQ have "beautiful" balance sheets and T, VZ, PFE and MRK will be able to survive the current market. Because of the strength of these stocks, the Dow wasn't crushed yesterday like it was "supposed to be," Cramer said.
The Windy City Merger: CME Group (NYSE: CME - News)
A good way to profit from the vicissitudes of the current market is to invest in CME, which Cramer recommends following its acquisition of the Chicago Board of Trade. Cramer likes the merger so much he thinks the Justice Department should never have allowed it to happen, since CME now has its "hands into everything" and can charge whatever it wants. While CME is trading at 30 x earnings, it is growing at a 20% clip this year, and its growth rate should reach 30% in 2008.
Sell Block: Buffalo Wild Wings (NasdaqGS: BWLD - News), General Cable (NYSE: BGC - News), Mastercard (NYSE: MA - News)
Since BWLD, BGC and MA got crushed after reporting better-than-expected quarters, Cramer explained "why bad things happen to good stocks." First, since all three had been rising rapidly, the bar was raised and "better-than-expected" just wasn't good enough for The Street. Second, there was a "hair" on each quarter, which is Wall Street jargon for a small flaw, or "hair" on a better-than-expected number. It was alleged that MA experienced domestic slowing, BWLD had slightly lower same-store sales and BGC had a downbeat outlook. However, Cramer said the main trick is knowing when to get rid of stock; "You can't count on me to tell you when to sell," he warned listeners, adding he can't always call a top. He said it is safe to sell the stocks now, since they are still high.
CEO Interview: Gregory Milzcik Barnes Group (NYSE: B - News)
Gregory Milzcik says his company is in the "sweet spot" of the current cycle; "We focus on difficult-to-manufacture parts but are also positioned great on high-volume, high-growth platforms, like that of the 787." He adds analysts are not really disappointed with the company, but want to see sales and margin growth, which Barnes Group can deliver. The company has expanded into Europe's "booming" market. Cramer commented; "Let the downgrades come, and then I would buy some. This stock's just way too cheap when it gets down to $20."
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Labels: AIG, B, BGC, BWLD, C, CME, DD, GM, HON, HPQ, Jim Cramer, JPM, MA, Mad Money, MRK, pfe, T, VZ

Bull Meat Barbecue
Although Thursday's selloff resembled a "bull meat barbecue," Cramer encouraged viewers not to lose heart and reiterated his principle that there is always a bull market somewhere. He made a checklist of three kinds of stocks to avoid: Stocks, such as housing, which need low interest rates to go higher, stocks (restaurants, retail etc.) with too much leverage to the domestic economy, and companies which must borrow to make an acquisition. Cramer emphasized the importance of selling these stocks, especially for those who did not lighten their portfolios before the selloff and those who cannot take the pain and wait for these sectors to recover.
Game Plan for Next Week: Pepsi (NYSE: PEP - News), Colgate (NYSE: CL - News), Kellogg (NYSE: K - News), Kimberly Clark (NYSE: KMB - News), Caterpillar (NYSE: CAT - News), Foster-Wheeler (NasdaqGS: FWLT - News), Freeport McMoRan (NYSE: FCX - News), Schlumberger (NYSE: SLB - News), Halliburton (NYSE: HAL - News), Boeing (NYSE: BA - News), Bunge (NYSE: BG - News), Monsanto (NYSE: MON - News), Dell (NasdaqGS: DELL - News), Hewlett-Packard (NYSE: HPQ - News), Cisco Systems (NasdaqGS: CSCO - News), Celgene (NasdaqGS: CELG - News), Merck (NYSE: MRK - News), Medco Health (NYSE: MHS - News)
Because on The Street, a trauma does not usually follow a trauma, Cramer expects a bounce at least by Monday, and would get rid of financials, retail and restaurants and buy soft goods, such as PEP, CL, K and KMB. Dismissing worries of a potential worldwide slowdown, Cramer likes machinery and mining, particularly CAT, FWLT and FCX. He also recommends oil, although natural gas has been tricky, and his picks are SLB and HAL. Cramer's favorites among aerospace and agriculture include BA, BG and MON, and he adds the tech sector has been hot and would buy DELL, HPQ and CSCO. In the healthcare sector, he especially likes CELG and MHS and doesn't mind MRK.
Pscyhed Up with Sycamore Networks (NasdaqGM: SCMR - News)
After the selloff devastation, there is still one thing Cramer can count on; that tech will continue to thrive in the late summer as it does every year. Cramer likes SCMR as a speculative telecom tech stock, since the company has almost a pure play on optical services. SCMR is not best-of-breed, but he is still bullish because SCMR does not yet have any analysts covering it and he likes SCMR's floor; it's at $4 a share but has the equivalent of $3.23 a share. In addition, the company's sales have been rising and 60% of its revenue is international. While SCMR is not as strong as Cisco or Cienna it could make investors more money.
Mad Money: Hoku Scientific (NasdaqGM: HOKU - News), Genzyme (NasdaqGS: GENZ - News), Celgene (NasdaqGS: CELG - News)
When a mailer asked about Hoku, Cramer recalls having recommended it at $6, and it has recently dropped from $11 to $8. At this level, Cramer says, it is too speculative, but he thinks it will repeat its upward trend after it falls back to $7 or $6. Another mailer wanted to know Cramer's opinion of GENZ; while the fall is good for biotech in general, he prefers Celgene to GENZ. On the issue of whether Freeport McMoRan's report of strong cash flow will be good for Caterpillar, Cramer says he likes CAT, but it has been hit hard for its North American exposure. While he says CAT is "your best play" he adds currently he is "loathe to buy more."
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Labels: BA, BG, CAT, CELG, CL, CSCO, Dell, FCX, FWLT, HAL, HPQ, Jim Cramer, K, KMB, Mad Money, MHS, MON, MRK, PEP, SLB

Wall Street rose Wednesday on some strong earnings and new deals, but not without a struggle, as mounting signs of a tougher lending climate again dogged investors.
The stock market, coming off Tuesday's 226-point tumble in the Dow Jones industrial average, seesawed throughout Wednesday's session. Ultimately, it drew confidence from better-than-expected quarterly profits at Web retailer Amazon.com Inc. and plane manufacturer Boeing Co., and acquisitions involving German engineering company Siemens AG and drug maker Merck & Co.
Still, some investors worry that deteriorating lending conditions will cork this year's heavy stream of dealmaking. Buyouts usually involve taking on debt, and Wednesday, the banks raising funds for the turnaround of Chrysler Group had to postpone a $12 billion debt offer after investors balked at the deal's terms, according to people familiar with the situation who were not authorized to speak publicly.
Meanwhile, the National Association of Realtors on Wednesday confirmed that the housing market is far from recovery when it reported that sales of existing homes dropped 3.8 percent in June to the slowest rate in more than 4 years. The figure was worse than analysts expected, and followed data from the Mortgage Bankers Association showing mortgage applications fell for the first time in four weeks to a five-month low.
Wall Street, now at the peak of second-quarter earnings season, has been extremely volatile lately. For seven straight sessions, the market has risen one day, fallen the next, then risen again. Over that span, the Dow has lost 165.91 points, or 1.2 percent.
The market will likely remain rocky as investors try to assess whether problems related to home lending will hurt the broader economy.

Labels: AMZN, BA, MRK, SI

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

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

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

Colgate (NYSE: CL - News), Illinois Tool Works (NYSE: ITW - News), Black & Decker (NYSE: BDK - News): Cramer says that many people are more interested in the Fed than stocks, and that the Fed-obsessed may miss out on good moves like buying Colgate, Illinois Tool Works and Black & Decker. He expressed a wish that investors could return to a time when "we recall that there are only certain industries that are hurt by these rates -- auto and housing." Since neither industries are expected to perform well, Cramer believes a rate hike is unlikely, and while he believes there will be a rate cut, he doesn't expect an upside from a rate reduction this year.
3M (NYSE: MMM - News), Merck (NYSE: MRK - News), UPS (NYSE: UPS - News): Cramer commented on three companies which had poor guidance, 3M, UPS and Merck, and said that 3M "doesn't have a clue," Merck has "bad management" and a"very bad pipe," and expressed bafflement at UPS's low guidance.
Motorola (NYSE: MOT - News), Time Warner (NYSE: TWX - News): When Aaron Task asked about Carl Icahn taking a stake in Motorola, Cramer noted that the activist financier has changed his methods; while Icahn once would really shake up a company, he now enters with a "substantive, constructive critique." Cramer said that he was wary of companies that avoid Icahn, because he can offer "tremendous guidance from many different fields," although Icahn tends to be rough on management. Cramer was surprised to see TWX's Dick Parsons, whom Cramer calls "a modern-day classic CEO" embrace Icahn in spite his cool feelings initially. "The CEO matters more than people realize," comments Cramer, "and the CEO sets the tone."
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Labels: BDK, CL, ITW, Jim Cramer, MMM, MOT, MRK, TWX

Merck & Co. (MRK.N: Quote, Profile , Research) on Wednesday stood by its forecast of flat earnings for 2006 and projected slightly higher 2007 results, in line with Wall Street expectations, as the drugmaker grapples with generic competition for a number of its medicines. Merck, scheduled to meet with analysts next week to review its pipeline of experimental medicines, said it expects 2007 earnings per share of $2.51 to $2.59, excluding restructuring charges related to site closures and job cuts. But Deutsche Bank analyst Barbara Ryan said she believes Merck had issued a conservative 2007 forecast that will likely be lifted during the year -- just as the drugmaker repeatedly raised its 2006 outlook. Chief Executive Officer Richard Clark said investors can expect Merck to return to compound annual "double-digit" earnings growth in 2010, as sales of new drugs expand and job cuts and other restructuring moves produce cumulative cost savings of $4.5 billion to $5 billion from 2006 to 2010. Merck expects compound annual profit growth of 4 percent to 6 percent from 2005 to 2010, and aims to modestly boost its annual research spending over the period, Lewent said. But she said Merck will hold the line on marketing and administrative expenses, keeping them flat in 2010 with 2006 levels. Merck shares were little changed in early electronic trading.
Source: Reuters.com

Labels: Hot Stocks, Merck, MRK

Research In Motion (NASDAQ: RIMM - News): Cramer says that RIMM is rallying like a "running back that has just broken through the Rutgers defense," and expects the surge to continue through the holidays. Allergan (NYSE: AGN - News), Merck (NYSE: MRK - News) and Pfizer (NYSE: PFE - News): Cramer called Allergan a "genius company" with its popular Botox and other products. He notes that it is up $7 at $119, and may be an attractive acquisition for Merck or Pfizer. Phelps Dodge (NYSE: PD - News), Equity Office (NYSE: EOP - News) and Freeport (NYSE: FCX - News): Recent mergers like those of PD-FCX and EOP demonstrate that "everything is cheap to someone in this market," remarks Cramer. Freeport picked up PD because it needed more copper, and since metals are "so hated by mutual funds" the acquisition was inexpensive. Cramer added that there is a lack of supply in good stocks and "All the managements I know think stocks are undervalued," he added. "So many companies want to buy other companies."

Labels: AGN, EOP, FCX, Jim Cramer, Jim Cramer's Stop Trading, MRK, PD, pfe, RIMM