Jim Cramer's Mad Money Review

Reporting earnings Tuesday morning before the market opens, Johnson & Johnson (NYSE:JNJ) is expected to announce earnings per share of 1.11. The Short Term PowerRating for JNJ is 6.
Waste Management Industries (NYSE:WMI) will drop its bid for Republic Services (NYSE:RSG) citing the current economic climate. The Short Term PowerRatings for WMI and RSG are 6 and 7 respectively.
Intel (NasdaqGS:INTC) reports quarterly earnings Tuesday afternoon after the market closes. Analysts expect the company to report earnings per share of 0.34. The Short Term PowerRating for INTC is 7.
Abbott Laboratories (NYSE:ABT) announced a $5.5 billion share buyback program on Monday. The Short Term PowerRating for ABT is 6.
Morgan Stanley (NYSE:MS) reported that it had completed an agreement with Mitsubishi UFJ that will provide for a $9 billion stake in the Wall Street firm. The Short Term PowerRating for MS is 8.
Genentech Inc. (NYSE:DNA) reports earnings Tuesday after the close. Analysts are expecting EPS of 0.88. The Short Term PowerRating for DNA is 6.

Labels: ABT, DNA, Genentech Inc., Hot Stocks, INTC, Morgan Stanley, MS, RSG, WMI

The best way to sustain Friday's late rally is for the government to cut a back-room deal with the largest banks and brokerages to get them to start making loans again, Jim Cramer told viewers on his "Mad Money" TV show on Friday.
On a day when Dow closed down 128 points after another extremely volatile session, Cramer said this "secret" meeting is necessary to get the economy, credit markets and stock markets rolling again and avoid a repeat of this past week's brutal market.
Cramer said he would have the Federal Reserve take the initiative by inviting to the meeting the CEOs of large financial institutions such as Citigroup(C ), Bank of America(BAC ), Wells Fargo(WF ), JP Morgan(JPM )Morgan Stanley(MS), and Goldman Sachs(GS ), the latter three of which he owns for his Action Alerts PLUS portfolio.
Cramer said the Fed would tell the CEOs that it would not repeat the mistake it made when it allowed Lehman Bros to fail. Instead, he said, the Fed would do all that it can to get the financial institutions open for business again.
He said the Fed would guarantee all their debts as well as their brokerage, savings and corporate accounts. Furthermore it would allow them to pay off their bonds with federal money, permit them to sell their credit default swaps lower and provide them $100 billion each to lend.
In return, these financial institutions would have to live up to their end of the bargain by "opening the spigots" and make loans again. He said the loans will be targeted to corporations, small businesses and individuals - but not hedge funds.
He also said the Fed would have the financial institutions divvy up the "bad banks" among themselves, with the aim of having them assume the good deposits while selling the bad assets to the federal government's newly created Troubled Asset Recovery Program.
Cramer said that after the market's worst-ever weekly drop it's "time to change our incredibly negative bias," as stocks are no longer in endless sell mode.
For Cramer it's time to rent some stocks, with a look at owning longer term if the market again approaches the lows seen on Friday. Cramer believes the market will chase those lows since the market rarely bottoms on a Friday, and the snapback by stocks was too far, too fast.
That means a new game plan is needed for the cash that Cramer told traders to peel off last month.
Expecting a gap down on both Monday and Tuesday, Cramer advises putting 25% of that cash back in play on both days. As usual, Cramer is against buying all at once.
As for where to put it, Cramer offered a stock like Kellogg(K ) as a template, based on its rallying behavior a year after the 1987 crash.
Of course, Cramer said this isn't 1987 - times are a lot worse. Given that, Cramer suggests loooking at companies that are trading around their cash on hand, such as KBR(KBR ).
You should also look at companies that make products that you eat, such as Kraft(KFT), Heinz(HNZ ), Coca-Cola(KO ) and Altria(MO ). Cramer owns Kraft and Altria in his Action Alerts Plus portfolio.
Cramer also likes giant pharmaceutial Merck(MRK ), cyclical plays Nucor(NUE )and Freeport McMoRan(FCX ), which he also owns for his Action Alerts PLUS portfolio, but reminded viewers that you only want a small position with the last two, since they aren't self-financing.
Cramer would be careful with financials, but he likes US Bancorp(USB ), and threw in a recommendation for Duke Energy(DUK ).
The new leadership is companies that don't need money, Cramer said.
Half-Empty
Cramer likes that traders dodged a bullet on Friday, with a "spectacular" rally off the lows of the morning, but he believes it's important to lay out the worst-case scenario so investors can go forward "with their eyes open."
In the worst case, the model isn't the 1987 market crash, which saw equities bounce back only a year later, but a "1929 scenario" which brought an 89% peak-to-trough drop and a "decline that just wouldn't quit."
In that model, Cramer said, currently flailing stocks like U.S. Steel(X ) and General Motors(GM ) wouldn't be done yet.
Cramer said that unfortunately the parallels with the 1929 crash are too close for comfort. As in 1929, he explained, we have a presidential administration that's in over its head. Listening to Bush say the government taking necessary actions to solve the crisis is like President Herbert Hoover saying than that the worst is behind us.
Cramer noted the market's tanking after Bush's most recent comments about the market, as well as the similarities of a Federal Reserve too focused on inflation and a wave of bank failures.
Cramer said he believes the federal bailout plan can help, but that a second Great Depression is still on the table. "That's why you have to be careful with your buying," he said.
Published By TheStreet.com

Labels: BAC, Bank of America, C, Citigroup Inc., Goldman Sachs Inc., GS, HNZ, Jim Cramer, JP Morgan Chase and Co., JPM, K, KBR, KFT, KO, Mad Money, Merck, Morgan Stanley, MS, Wells Fargo, WFC

This is really a Franklin Delano Roosevelt moment, Jim Cramer said on Wednesday's Stop Tradingsegment on CNBC. We're only fearing fear itself.
He encouraged viewers to consider several potential factors that could be positive influences on the market, including the coordination of worldwide interest cuts, huge Chinese stimulus plans, a waiving of the private equity rules and the SEC's waving of rules on buybacks.
I am only trying to bring out things that could go right, because I've heard all day what could go wrong, he said.
Cramer, who owns Goldman Sachs(GS ) and Morgan Stanley(MS ) for his Action Alerts PLUS charitable trust, stood behind the two financial companies. I tell you that September calls on these positions will be rewarded for very little capital, he said.
Published By TheStreet.com

Labels: CNBC's Stop Trading, Goldman Sachs Inc., GS, Jim Cramer, Morgan Stanley, MS, Stop Trading

Memory chip maker Micron Technology Inc. was among the biggest decliners Wednesday on what was a mostly down day for semiconductor stocks, due mainly to worries over a tough pricing environment.
After posting slightly better-than-expected results for its fiscal fourth quarter, Micron issued what one analyst called "subdued" guidance on a challenging pricing environment.
Lehman Brothers analyst Tim Luke kept an "Equal Weight" rating on Micron.
With "memory pricing likely to trend lower over the near term, as spot pricing is still significantly below contract price levels, our low-end estimates are unchanged," Luke wrote in a client note.
Shares fell $1.03, or 8.7 percent, to $10.76 in early afternoon trading. The stock, which is down about 3 percent month-to-date, has traded in the 52-week range of $10.30 to $18.17.
Shares of industry leader Intel Corp. fell 53 cents, or 2 percent, to $25.85. The stock has traded between 18.75 and $27.71 in the past year.
Morgan Stanley analyst Mark Lipacis started coverage of Intel with an "Underweight" rating.
"We recommend that investors reduce positions in Intel ahead of what we expect will be an inventory correction and increasingly aggressive price environment," Lipacis wrote. The analyst also recommended that investors lower their positions in Advanced Micro Devices Inc. for the same reasons.
AMD's shares fell 29 cents, or 2.2 percent, to $12.91.
Qualcomm Inc., which is being investigated by European Union antitrust regulators for possible abusive business practices, was among the handful of stocks heading higher. The company makes mobile phone chips. Its shares rose 34 cents to $42.32.
The Philadelphia Semiconductor Sector index fell 9.75 points, or 1.93 percent, to 496.22.
Published by AP

Labels: AMD, INTC, LEH, MS, MU, QCOM, Semiconductors

Wall Street built on its gains Wednesday as investors bet that the cheaper money the Federal Reserve unleashed with its decision to cut interest rates will give a boost to corporate profits and the overall economy.
The rise in stocks for a second day appeared to reassure some investors that Tuesday's huge advance was based on reasonable optimism and amounted to more than a one-day pop. A mild reading of the Labor Department's August consumer price index, which slipped 0.1 percent, offered support for the Fed's decision to focus on the economy and set aside some of its concerns about inflation. Further, the Commerce Department's report that new home construction fell for the third month in a row in August offered fresh evidence that the housing market is still struggling.
Wall Street, focusing on the Fed's move to lower the target federal funds rate to 4.75 percent from 5.25 percent, was able to again look past a continued rise in energy prices. Oil settled at a fresh record Wednesday.
The Dow Jones industrials rose 76.17, or 0.55 percent, to 13,815.56. While the Dow finished well off its highs of the session, the gains nevertheless came a day after a jump of nearly 336 points -- its biggest one-day point gain in nearly five years.
Broader stock indicators also rose. The Standard & Poor's 500 index rose 9.25, or 0.61 percent, to 1,529.03. The Nasdaq composite index rose 14.82, or 0.56 percent, to 2,666.48.
Source: Tim Paradis, AP Business Writer

Labels: CFC, Crude Oil, Dow Jones, Federal Reserve, MS, Nasdaq, Oil Futures

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

Wall of Shame: Citigroup (C), Syntax Brillian (BRLC), Alcatel Lucent (ALU)
Cramer, equal opportunity critic of bad CEOs described three current Wall of Shame chiefs who disgraced themselves even further last week. Cramer owns Citigroup for his charitable trust and has been on a crusade to have CEO Chuck Prince removed, because the bank's management is the worst he has ever seen due to unwise investments. Only their huge deposit base will save them. However, Cramer would hold Citigroup, because he feels it has potential. BRLC dropped 35% last week thanks to chief Vincent Sollito's passing the buck to Asian partners after the company failed to meet earnings expectations, according to Cramer, who added he resents the way Sollito painted a rosy picture of the company when he appeared on Mad Money. Cramer commented on Patricia Russo's remarkable lack of execution as the company's orders shrink amid a telco boom benefiting ALU's competitors. He would sell BRLC and ALU.
Outfoxing the Fed: Coca-Cola (KO), PepsiCo (PEP), Kellogg (K), General Mills (GIS), Wachovia (WB), Goldman Sachs (GS), Morgan Stanley (MS)
Cramer discussed three scenarios: the Fed would not cut rates and create Armageddon, or would introduce a quarter or a half-point cut, either of which will not yield good results. Insisting that the Fed needs to cut rates a full point, Cramer said lesser cuts will lead to hard selling, and it is a good time to look at classic defensive stocks such as KO, PEP, K, and GIS. A half-point cut on Tuesday means it is time to buy solid financial stocks such as WB, MS and GS.
Fantasy Football Stocks: Exxon Mobil (XOM), Medco Health Solutions (MHS) Enterprise Products Partners (EPD), was Research In Motion (RIMM), Freeport-McMoRan Copper & Gold (FCX)
To conclude his fantasy football series, Cramer revealed his team picks on Friday. His quarterback was XOM which, like Peyton Manning of the Colts, is expected to match last year's great performance. MHS is a strong defensive play that could go to $100 and is as dependable as the New England Patriots. With a 6.5% yield and a good combination of safety and defense, EPD was Cramer's pick for tight end, and reminded him of Jason Witten of the Dallas Cowboys. RIMM is doing fabulously be every metric and could double again. Cramer compared the company's potential growth to that New England Patriot wide receiver Randy Moss. FCX can survive a difficult economy, according to Cramer, and its gold business should do well in China. He picks FCX as his running back, similar to LaDainian Tomlinson of the San Diego Chargers.
Mad Mail: Caterpillar (CAT), EMC (EMC) and VMware (VMW)
Cramer told one writer that CAT is a good CEEMEA (Central and Eastern Europe, Middle East and Asia) play. Another writer questioned the need to diversify in a tech boom, and said 65% of her portfolio was made up of tech stocks. Cramer reminded her of the dot.com fiasco in the 90s. Finally, a writer asked Cramer why he preferred owning EMC to VMW. He replied that EMC benefits from the success of VMW but is cheaper and safer.
Published by SeekingAlpha

Labels: ALU, BRLC, C, CAT, EMC, EPD, FCX, GIS, GS, Jim Cramer, K, KO, Mad Money, MHS, MS, PEP, RIMM, VMW, WB, XOM

Eagle Bulk Shipping (NasdaqGS: EGLE - News): 'This company with an 8% yield is going higher. I've got to say, you've got a good one.'Crocs (NasdaqGS: CROX - News)Under Armour (NYSE: UA - News)Verizon (NYSE: VZ - News): ' ... I'd much rather own ... Verizon (than Smith Micro Software).'Morgan Stanley (NYSE: MS - News)WPP Group (NasdaqGS: WPPGY - News): 'Really terrific. ... I am going to endorse it. ... Europe's doing much better than America.'Barnes Group (NYSE: B - News): 'I endorse it. I think you should buy some Barnes.'BE Aerospace (NasdaqGS: BEAV - News)Cnooc (NYSE: CEO - News): 'I am going to get behind any oil stock in the world. ... I like your Cnooc. I think that goes higher.'PetroChina (NYSE: PTR - News): 'I have liked PetroChina more than this (Cnooc) ... "I am going to get behind any oil stock in the world.' ValueClick (NasdaqGS: VCLK - News): 'It's been stalled here. ... At $30, I still like it. ... I'm staying bullish.'Goldman Sachs (NYSE: GS - News): ' ... pull the trigger on Goldman Sachs.'Nastech Pharmaceutical (NasdaqGM: NSTK - News): 'To back away from the stock at $11 is a major league mistake ... going to go much higher.'Celgene (NasdaqGS: CELG - News)Helmerich & Payne (NYSE: HP - News): 'This is one of the most unsung drilling oil and gas stocks that there is. ... This one's got a lid on it because it's too domestic. ... You know what? I think HP is cheap. ... How could a 30% grower only have a 10 multiple? The answer is the market's wrong.'Chesapeake Energy (NYSE: CHK - News) Mastercard (NYSE: MA - News): 'I actually prefer MasterCard on a pullback than Discover right here.'
Bearish calls:
Starbucks (NasdaqGS: SBUX - News): 'This is a quality control problem. ... Basically, you can't grow that fast. I remain in the Don'tBuy mode.'Heelys (NasdaqGM: HLYS - News): 'I am bearish on Heelys.'Smith Micro Software (NasdaqGM: SMSI - News): 'I think you've got too much hype here. I've got to throw the flag. ... It's a decent story ... Your stock is too speculative.'Discover Financial Services (NYSE: DFS - News): 'I'm not behind Discover.'The Blackstone Group (NYSE: BX - News): 'I'm not a fan of Blackstone.'Boston Scientific (NYSE: BSX - News)Align Technology (NasdaqGM: ALGN - News)

Published by SeekingAlpha

Labels: B, BEAV, CELG, CEO, CHK, CROX, EGLE, GS, HPQ, Jim Cramer, Lightning Round, MA, MS, NSTK, PTR, UA, VCLK, VZ, WPPGY

Bullish calls:
Morgan Stanley (NYSE: MS - News): 'I'm a bull about Morgan Stanley.'Goldman Sachs (NYSE: GS - News): 'When Goldman Sachs is down another 5, that, my friends, is better than Morgan Stanley.'Altria (NYSE: MO - News): 'This is a stock to buy on the way down. ... Let's hope that it comes down so we can buy more.'Wachovia (NYSE: WB - News): 'Wachovia Bank's OK here. I'm not going to rave about it.'Bank of America (NYSE: BAC - News): 'That's cheap!'Apple (Other OTC: APPL.PK - News)Amazon.com (NasdaqGS: AMZN - News)Research In Motion (NasdaqGS: RIMM - News)Google (NasdaqGS: GOOG - News)Celgene (NasdaqGS: CELG - News): '... down below 60 was just a gift. It was a gift that would keep giving.'GOL Linhas Areas Inteligentes (NYSE: GOL - News)McDermott (NYSE: MDR - News)Chemical & Mining Co. of Chile (NYSE: SQM - News): 'When it comes to fertilizer, I like to go to Chile. I like to go to SQM.'Potash Corp. of Saskatchewan (NYSE: POT - News): 'Is okay.'Gilead Sciences (NasdaqGS: GILD - News): 'That one's coming down, and so is Celgene. This group does tend to go down when the interest rates go higher.'
Bearish Calls
Rackable Systems (NasdaqGS: RACK - News):' I believe that Rackable Systems represents really bad tech.'Annaly Capital Management (NYSE: NLY - News): 'This is a stock that needs interest rates lower ... At 14, I would buy more.'Foster Wheeler (NasdaqGS: FWLT - News)Knight Capital Group (NasdaqGS: NITE - News): 'I happen to like the management of Knight. ... I don't want to be in Knight ... I don't want to touch them until they're lower.'Rentech (AMEX: RTK - News): 'It is too speculative.'
Published by SeekingAlpha

Labels: AMZN, APPL.PK, BAC, CELG, GILD, GOL, GOOG, GS, Jim Cramer, Lightning Round, MDR, MO, MS, POT, RIMM, SQM, WB

Adobe Systems (NasdaqGS:ADBE - News) beat earnings Tuesday, with $0.30 EPS over an expected $0.29 EPS. ADBE's PowerRating is 5.
Oracle (NasdaqGS:ORCL - News) also beat earnings on Tuesday after the close. ORCL reported $0.25 EPS versus expectations for $0.22 EPS. ORCL's PowerRating is 4.
Halliburton (NYSE:HAL - News) reported in Tuesday's session that they expect first-quarter earnings to come in below analyst forecasts. HAL dropped 6% in today's session. Watch for further price deterioration.
Cintas (NasdaqGS:CTAS - News) missed earnings Tuesday afternoon reporting EPS of $0.48, while expectations were for $0.52 EPS. CTAS's PowerRating is 5.
Federal Express (NYSE:FDX - News) reports quarterly earnings on Wednesday morning before the bell, with analysts looking for $1.33 EPS. FDX's PowerRating is 5.
Morgan Stanley (NYSE:MS - News) announces earnings on Wednesday morning; watch for $1.88 EPS. MS's PowerRating is 5.
Ross Stores (NasdaqGS:ROST - News) is set to announce its quarterly report before the bell; look for $0.66 earnings per share. ROST's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: ADBE, CTAS, FDX, HAL, Hot Stocks, MS, ORCL, ROST

Stocks were little changed in tepid trading Wednesday as investors awaited the Federal Reserve's latest take on the economy, which could signal where interest rates are headed. The Dow Jones industrials slipped after two sessions of gains, while other indexes nudged higher.
While Wall Street largely expects the Fed will leave short-term interest rates unchanged at 5.25 percent, investors are eager to learn whether the central bank will reveal a shift in its assessment of the economy. The Fed has remained vigilant about the threat of inflation, which it has said remains stubbornly high. However, a softening economy could quell the threat of inflation and, some investors are hoping, open the way for a rate cut.
The Fed left interest rates unchanged at its last five meetings after a string of 17 straight increases that began in 2004.
In the first hour of trading, the Dow Jones industrial average fell 7.69, or 0.06 percent, to 12,280.41.
Broader stock indicators made modest gains. The Standard & Poor's 500 index rose 0.80, or 0.06 percent, to 1,411.74, and the Nasdaq composite index advanced 3.84, or 0.16 percent, to 2,412.05.
Bonds fell ahead of the Fed decision. The yield on the benchmark 10-year Treasury note rose to 4.59 percent from 4.55 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices rose.
While most of Wall Street's attention will remain squarely on the Fed, a few key earnings reports should also draw interest. Morgan Stanley's fiscal first-quarter earnings and revenue blew past Wall Street's estimates and FedEx Corp.'s fiscal third quarter earnings came in stronger than expected but the shipping company warned profits in the coming fiscal year could fall below its expectations.
Morgan Stanley rose $2.47 ,or 3.2 percent, to $78.58, while FedEx fell $2.58, or 2.3 percent, to $109.71.
The Russell 2000 index of smaller companies fell 0.09, or 0.01 percent, to 793.51.
Overseas, stocks markets in Japan were closed for a holiday. Hong Kong's Hang Seng index rose 0.82 percent and the sometimes volatile Shanghai Composite Index rose 0.83 percent to a new record. A nearly 9 percent drop in the Shanghai index on Feb. 27 helped kick off a global selloff that shaved more than 3 percent from the major U.S. stock indexes and reintroduced volatility to an unusually calm U.S. market. The drop in Shanghai came after the ascendent index, which rose 130 percent last year, had set a string of record closes.
In afternoon trading, Britain's FTSE 100 rose 0.87 percent, Germany's DAX index rose 0.26 percent, and France's CAC-40 advanced 0.14 percent.
Published by Tim Paradis, AP Business Writer

Labels: FDX, Fed, Hot Stocks, MS

Shares of drug maker AtheroGenics Inc. may give up some of Wednesday's gains after speculation that company would comment on late stage clinical trial results for its heart drug didn't materialize.
The company released data from a mid-stage clinical trial for its drug AGI-1067 in a medical journal, and reiterated plans to release data from a Phase III clinical trial at the American College of Cardiology Scientific Session in March.
On the anticipation of further data, shares rose 7.3 percent to close at $12.02 on the Nasdaq Wednesday, and started to slip in electronic trading after the bell.
Brean Murray analyst Jonathan Aschoff, who rates the stock a "Sell," said the published mid-stage clinical trial data was some of the weakest he's seen and is convinced that the compound will fail late stage clinical trials.
Morgan Stanley analyst Steven Harr, who maintained his "Overweight" rating, still cautioned investors that the release of late-stage trial data remains a high-risk event.
However, Harr said a trend toward fewer deaths with a heart attack and a tendency to induce a biological response that a recently failed Pfizer drug inhibited were two interesting trends that tweaked the probability of positive news from the late-stage trial upward.
Published by AP

Labels: AGIX, MS

Bullish calls:
Eagle Materials (NYSE: EXP - News): ' EXP could be acquired ... it's been public for two years. It is a great cement company ... If this stock were ever to pull back, oh yeah ('mon-back sound), you get the picture.'Marvell Technology (NASDAQ: MRVL - News): ' Now, the company did have the options problem ... I think this could be one of the biggest stocks for 2007, and I want you to buy, buy, buy! Because this company has it all and it's been cut almost in half ... Two thumbs up, way up.'Chesapeake Energy (NYSE: CHK - News): 'Holy cow, can you believe that Aubrey, the CEO - they nailed that stock at $32.25. They sold stock. Now, it's come down to $30.70 ... I think downside is minimal. I guess what I'm saying is, pull the trigger.'Mueller Water Products (NYSE: MWA - News): 'This stock is dirt cheap. That's a regular, consistent business. I again say pull the trigger. I say two thumbs up.'Grey Wolf (AMEX: GW - News): 'I think that GW is good on its own merits, but I do not look for a takeover ... buy it.'Cisco (NASDAQ: CSCO - News): 'This stock is going higher. It's going to $30. That could just be a stop to $32. And I like CSCO here. I would buy it here if I did not own it.'Apple (NASDAQ: AAPL - News): ' ... below $85, I still want to buy the stock. I'm not backing away. In fact, I will make the statement that I think the bears are leaning on AAPL. And bears, pay attention, open season is coming.'Goldman Sachs (NYSE: GS - News): 'GS is being kept down by the option expirations. Starting to move up. It's up 3. I think that one's going to $300... It is cheaper than MS and it is better.'Halliburton (NYSE: HAL - News): 'You don't need to be in that specialty small-cap oil service. You go with HAL!'ABB (NYSE: ABB - News): 'ABB is the primary nuclear power builder ... I say ABB, at $17.50, is not done going up. That stock is headed to $20. I want to stick with that stock.'
Bearish calls:
Morgan Stanley (NYSE: MS - News): '52-week high. Earnings coming tomorrow. No on buying.'Southern Copper (NYSE: PCU - News): 'The price of copper's coming down, my friend. What an opportunity to take a little off the table. I know the dividend is terrific at 9%, but bulls make money, bears make money, and hogs - they get slaughtered.'PeopleSupport (NASDAQ: PSPT - News): ' ... these companies that are outsourcing business, frankly, have nothing proprietary. This stock is at its 52-week high. It does have good growth, but you know what? (ring the register sound)...'Allis-Chalmers Energy (AMEX: ALY - News): 'No, no, no ... even though GS said buy it ... No! You don't need to be in that specialty small-cap oil service. You go with HAL.'
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Labels: AAPL, ABB, ALY, CHK, CSCO, EXP, GS, GW, HAL, Jim Cramer, Lightning Round, Mad Money, MRVL, MS, MWA, PCU, PSPT

Maurice Greenberg, the former head of insurer American International Group Inc. (AIG.N: Quote, Profile, Research), has been buying shares of New York Times Co. (NYT.N: Quote, Profile, Research) to try to break the Sulzberger family's hold on the media company, the New York Post reported on Wednesday, citing unnamed sources. Greenberg has been buying hundreds of thousands of Times shares, the Post reported, putting him in league with other shareholders, such as Morgan Stanley Investment Management (MS.N: Quote, Profile, Research), who have been questioning the Sulzbergers' holding of a more powerful class of stock. The New York Times, whose shares gained more than 4 percent in morning trading, was not immediately available for comment. New York Times shares gained 98 cents, or 4.3 percent, to $24.02 on Wednesday, but are still far from their 52-week high of $28.98 on February 22, on the New York Stock Exchange.
Source: Reuters.com

Labels: AIG, media, MS, NYT

Maurice Greenberg, the former head of insurer American International Group Inc. (AIG.N: Quote, Profile, Research), has been buying shares of New York Times Co. (NYT.N: Quote, Profile, Research) to try to break the Sulzberger family's hold on the media company, the New York Post reported on Wednesday, citing unnamed sources. Greenberg has been buying hundreds of thousands of Times shares, the Post reported, putting him in league with other shareholders, such as Morgan Stanley Investment Management (MS.N: Quote, Profile, Research), who have been questioning the Sulzbergers' holding of a more powerful class of stock. The New York Times, whose shares gained more than 4 percent in morning trading, was not immediately available for comment. New York Times shares gained 98 cents, or 4.3 percent, to $24.02 on Wednesday, but are still far from their 52-week high of $28.98 on February 22, on the New York Stock Exchange.
Source: Reuters.com

Labels: AIG, media, MS, NYT