Jim Cramer's Mad Money Review

Cramer said banks such as PNC (PNC) are trading at premium to big names such as Citi (C) and Bank of America (BAC) in spite of the regionals' significant exposure to possible lending issues. Cramer said he believes lots of regionals have problems similar to the one revealed late Friday by M&T (MTB).
Cramer is also "concerned" about the so-called Alt-A lenders, the companies that made loans to homebuyers with better-than-subprime credit ratings but without full documentation. He said the degree to which loans were made without documentation is a "big black box" that keeps investors from knowing "who a good lender is." He conceded that some companies like IndyMac (NDE) are "seasoned players" who should know better than to chase nonpaying customers, but he stressed that lenders need to "open things up kimonowise" for shareholders to judge for themselves.
Cramer, stipulating that he "loves" Countrywide (CFC) chief Angelo Mozilo, suggested Mozilo cut back on the TV appearances, reasoning that Countrywide stock gets hit every time Mozilo is on.
Published by thestreet.com

Labels: BAC, C, CFC, Jim Cramer, MTB, NDE, PNC, Stop Trading

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

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

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
iShares MSCI Emerging Markets IndexApr 120 Calls (AMEX:EEM - News). EEM's PowerRating is 6.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Express Scripts Apr 80 Puts (NasdaqGS:ESRX - News). ESRX's PowerRating is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Indymac Bancorp Apr 30 Calls (NYSE:NDE - News). NDE'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.
Petroleo Brasileiro Apr 90 Puts (NYSE:PBR - News). PBR's PowerRating is 4.
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.
Network Appliance (NasdaqGS:NTAP - News). NTAP's PowerRating is 6.
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.
Amgen (NasdaqGS:AMGN - News). AMGN'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.
Peabody Energy Corp. (NYSE:BTU - News). BTU's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AMGN, BTU, EEM, ESRX, Hot Options, NDE, NTAP, PBR

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
MBIA Inc. Apr 70 Calls (NYSE:MBI - News). MBI's PowerRating is 5.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Express Scripts Apr 80 Puts (NasdaqGS:ESRX - News). ESRX's PowerRating is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Indymac Bancorp Apr 30 Calls (NYSE:NDE - News). NDE's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced. Research in Motion Apr 120 Puts (NasdaqGS:RIMM - News). RIMM'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.
Mirant (NYSE:MIR - News). MIR's PowerRating is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Lennar (NYSE:LEN - News). LEN's PowerRating is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Centex (NYSE:CTX - News). CTX's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: CTX, ESRX, Hot Options, LEN, MBI, MIR, NDE, RIMM

Wells Fargo (NYSE: WFC - News), Commerce Bank (NYSE: CBH - News), IndyMac (NYSE: NDE - News), Bank of America (NYSE: BAC - News), National City (NYSE: NCC - News), SL Green (NYSE: SLG - News), CB Richard Ellis (NYSE: CBG - News): Cramer called Wells Fargo's quarter a "thing of the beauty" and commented that it was the good stock out of the good, bad and the ugly among Tuesday's bank earnings reports. The "bad" was CBH, which dropped 9% in heavy trading after it announced that it was checking some transactions involving officers. However, Cramer doesn't believe that this will have any long-term effect and that those who are confident that the Fed will cut rates may feel that CBH is "the best-run bank in North America. " It sells at twice book value, and Cramer believes it is becoming cheap. The "ugly" was IndyMac which Cramer puts in the sell category in spite of a 7% fall, since it is connected with homebuilders and subprime lenders, which are both difficult sectors. Although Cramer thinks that BAC should avoid making more acquisitions, he thinks it could buy NCC or CMA. Cramer follows CGM Funds manager Ken Heeber' s call in favor of real estate plays SLG and CBG. "Heebner owns this segment," Cramer said. "No one is better than Heebner.'
Published by SeekingAlpha

Labels: BAC, CBG, CBH, Jim Cramer, NCC, NDE, SLG, Stop Trading, WFC

Labels: AMGN, APKT, ASEI, BGC, democrats, HAL, halliburton, HOG, HTZ, JBLU, Jim Cramer, KBR, Kellogg Brown and Root, Mad Money, NDE, NICE, NMX, NYMEX, NYX, PDLI