Jim Cramer's Mad Money Review

Netflix Inc.'s third-quarter profit soared past analysts' expectations as the online DVD rental pioneer battled rival Blockbuster Inc. with a price-cutting strategy that helped revive subscriber growth.
The news, released after the stock market closed Monday, lifted Netflix's stock price by more than 12 percent in after-hours trading.
The Los Gatos-based company said it earned $15.7 million, or 23 cents per share, for the three months ended September. That represented a 23 percent increase from net income of $12.8 million, or 18 cents per share, in the same period last year.
The earnings easily exceeded the average estimate of 15 cents per share among analysts surveyed by Thomson Financial. Revenue rose 15 percent to $294 million -- about $8 million above the average analyst's estimate.
Netlfix's third-quarter performance contrasted with the sobering forecast that it provided three months ago after suffering the first quarterly decrease in subscribers during its 8-year history.
With Blockbuster's competing online service rapidly gaining ground, Netflix decided this summer to lower the prices on its most popular subscription plans by a $1 per month.
Though the strategy threatened to crimp profits, it appeared to pay off as Netflix added 286,000 customers during the third quarter to end September with 7.03 million subscribers. Dallas-based Blockbuster, which ended June with about 3.6 million subscribers, is expected to update its customer growth Nov. 1 when it is scheduled to release its third-quarter results.
The company expects to sign up another 300,000 to 500,000 subscribers in the fourth quarter. Investors applauded the news. After falling 23 cents to finish Monday's regular session at $23.01, Netflix shares surged $2.84, or 12.3 percent, in extended trading.

Labels: BBI, Earnings, NFLX

Wall Street pulled back sharply in early trading Tuesday following several disappointing earnings reports and amid renewed concerns about the mortgage lending market. The Dow Jones industrials lost more than 100 points.
Among the many earnings reported before the opening bell, chemical maker DuPont Co. reported flat second-quarter profit as higher sales offset the cost of energy and research. American Express Co. reported late Monday that quarterly profit climbed 12 percent on record card member spending. However, the nation's third-largest credit card brand said cardholders are also shirking more payments.
Both companies are Dow components. In early trading, the Dow fell 101.20, or 0.73 percent, to 13,842.22.
Broader stock indicators declined. The Standard & Poor's 500 index shed 12.26, or 0.80 percent, to 1,529.31. The Nasdaq composite index lost 21.06, or 0.78 percent, trading at 2,669.52.
Bonds rose, with the yield on the benchmark 10-year Treasury note down to 4.94 Tuesday from 4.96 percent late Monday. The dollar traded mixed against other major currencies, while gold prices climbed.

Labels: AXP, CFC, DD, DJ, MCD, NFLX, NWS, TXN

Bullish
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
CSX Corporation (NYSE:CSX - News). CSX's PowerRating is 5.
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.
Nortel Networks (NYSE:NT - News). NT'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.
Swift Energy (NYSE:SFY - News). SFY's PowerRating is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high 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 make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
United Parcel Service (NYSE:UPS - News). UPS's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average 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.
Netflix (NasdaqGS:NFLX - News) & SanDisk (NasdaqGS:SNDK - News). NFLX's PowerRating is 3, and SNDK'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.
Coldwater Creek (NasdaqGS:CWTR - News). CWTR's PowerRating is 2.
PowerRatings are courtesy of PowerRatings.net

Labels: CSX, CWTR, Hot Stocks, NFLX, NT, SFY, SNDK, UPS