Jim Cramer's Mad Money Review

InterContinental Exchange's price had risen dramatically since Cramer recommended the stock on "Mad Money," but has since returned to previous levels, Cramer said. Neither stock has responded favorably to today's news that the CME, which operates the Chicago Mercantile Exchange and the Chicago Board of Trade, is in talks to buy ICE. "What is the ICE doing down?" Cramer asked.
Cramer also believes the economy is not headed for a recession. He named earnings calls from Honeywell (HON), Caterpillar (CAT), Parker Hannifin (PH) and others as signs of the market's health.
Cramer also noted that the KBW Bank Index and the PHLX Housing Sector Index are rallying because of the rate cuts.
In spite of the positive news, Cramer said he believes more action is needed. Given "the losses that we saw for the quarterlies from a Bank of America (BAC) or a Wachovia (WB) ... I genuinely feel that we are too close to the precipice to stop.
"That doesn't mean that a Honeywell isn't doing fine without it," Cramer cautioned. "It's like 1998, when the economy was booming. ... We had to stop the decline [in the financials] ."
Cramer believes the bank woes may remain independent of the broader economy. "The problems are not with IBM (IBM) or Verizon (VZ) ... AT&T (T ) ... Nokia (NOK) ... Microsoft (MSFT)."
Cramer added that the Federal Reserve's 75-basis-point rate cut last week was helpful. "You needed that cut to be able to raise all that money last week." However, the crisis isn't over. "Home price appreciation is nonexistent. ... We saw that number today. ... The oil futures are saying no recession. I think the Fed cuts are needed again."
Published By TheStreet.com

Labels: BAC, CAT, HON, IBM, ICE, Jim Cramer, MSFT, NOK, PH, Stop Trading, T, VZ, WB

Cramer Cries Foul:
United Technologies (UTX), Microsoft (MSFT), Honeywell (HON), IBM (IBM), Fluor (FLR), Union Pacific (UNP), CSX (CSX)
Cramer declared he was sick and tired of taking abuse from people who say I've gotten it wrong, specifically Robert Samuelson who wrote in a recent Newsweek article that Cramer advocates rate cuts only to create a short-term lift for stocks. Cramer argued he has been advocating rate cuts for a year, and band-aid stimulus packages that give away taxpayer monies that we don't have are not the solution. Instead, he advocates a rate reduction of 1.75% and said the Fed was unsophisticated, arrogant and incredibly reckless. Cramer said in the current environment, he would consider buying UTX, MSFT, HON, IBM, FLR, UNP, CSX.
Excuses, Excuses: Motorola (MOT), Nokia (NOK)
Sometimes a loser company's excuses can bring down good companies. Cramer cited MOT, which reported abysmal numbers last week, admitted mobile sales were down 38% and blamed the economy. As a result, there was a huge selloff of MOT and NOK, even though NOK reported a 44% increase in sales, bigger market share and strength in foreign markets. Nokia should not be punished for Motorla's sins, particularly since MOT makes products no one wants to buy and lacks vision.
CEO Interview: Emanuel Chirico of Phillips-Van Heusen (PVH) also with stocks Liz Claiborne (LIZ), VF Corp (VFC), Jones Apparel (JNY)
Cramer says retail is the place to be if there will be another rate cut and mentions he likes LIZ, VFC and JNY in addition to PVH. Emanuel Chirico said although his company was one of the first in the sector to issue warnings about a sluggish consumer, PVH recently beat its estimates by two cents a share. While inventories are up slightly, Chirico highlighted PVH's successful buyback program and its renaming Continental Airlines Area to Izod Arena, which will be a strong marketing tool. While Cramer likes all the retail names he mentioned, he adds PVH is the cheapest in the group.
Published By SeekingAlpha

Labels: CSX, FLR, HON, IBM, Jim Cramer, JNY, LIZ, Mad Money, MOT, MSFT, NOK, PVH, UNP, UTX, VFC

Cramer believes one of the fund's names, Nokia (NOK), is underrated. "Nokia just went down ... under a misperception that it was getting killed. Nokia is the winner."
Cramer added that search behemoth Google (GOOG) is "just resting" ahead of its earnings report.
Of Corning (GLW), Cramer said "Everyone is panicking." Cramer owns Corning for his charitable trust, Action Alerts PLUS.
Cramer couldn't get behind all of Magellan's names, however. "The one that is the true glass-half-full for him and half-empty for me is Staples (SPLS). I just don't like retail at all."
To conclude, Cramer reaffirmed his belief in energy and agriculture plays, saying that Canadian Natural Resources (CNQ) was "so right." He added that Mosaic (MOS), John Deere (DE), Agrium (AGU) and Monsanto (MON) are still solid stocks.
Published By TheStreet.com

Labels: AGU, CNQ, DE, GLW, GOOG, Jim Cramer, MON, MOS, NOK, SPLS, Stop Trading

Bullish
Morningstar (MORN),
Blackstone (BX),
Fifth Third Bancorp (FITB),
Sonic (SONC),
Cisco (CSCO),
Motorola (MOT),
Nokia (NOK),
EMC (EMC)
Caterpillar (CAT).

Bearish
Netgear (NTGR)
Infosys Technologies (INFY),
Audiovox (VOXX),
VMware (VMW),
Clearwire (CLWR)
Alvarion (ALVR).

Labels: BX, CAT, CSCO, EMC, FITB, Jim Cramer, Lightning Round, Mad Money Lightning Round, MORN, MOT, NOK, SONC

Nokia (NOK), Navteq (NVT) and Motorola (MOT): Cramer would use the decline since the Navteq acquisition as an opportunity to buy NOK, and says that NOK far surpasses competitor MOT.
Capital One (COF): This bank may have finished its decline since there is reassuring news from California that the number of defaults will not be overwhelming, says Cramer.
Cisco (CSCO) and Ciena (CIEN): Cramer prefers Cisco to Ciena, which he would sell since it has jumped 10 points.
Bank of America (BAC), JP Morgan (JPM): BAC is inexpensive and should reach $60 from $52, Cramer predicted, adding that JPM's CEO Jamie Dimon is overrated.
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Labels: BAC, CIEN, COF, CSCO, Jim Cramer, JPM, MOT, NOK, Stop Trading

Ford (F): Cramer began Monday's show by recommending investors buy Ford. Thinks that it will profit off the fact that GM broke the unions with its latest negotiations and that it is selling some of its units. Jim then took a couple of phone calls. The first call was about Tata Motors (TTM), which Cramer likes, but he thinks is too expensive. The second caller asked about Toyota (TM). Cramer won't back Toyota because the weak dollar hurts their sales and the Japanese market is the worst in the world.
In the next segment, Cramer continued to talk about investing opportunities related to GM's success against the UAW. He looked off the beaten path and found American Axle and Manufacturing (AXL) since the company makes auto parts, and has a labor contract that ends in the near future.
Cramer then took some more phone calls. He was asked about Garmin (GRMN), which Cramer thinks fell too much, but he will be concerned about it once the Navteq (NVT) and Nokia (NOK) merger is completed next year. Another caller asked about Eaton (ETN), and Cramer said that it’s one of his favorite manufacturing stocks. The next caller asked about CarMax (KMX), and Cramer said that you should think about pulling the trigger in late November to avoid tax-loss selling.
After the lightning round, Cramer talked about a stock that went public this summer without much attention and considers it an overlooked IPO. His pick is Dolan Media (DM), which helps process mortgage defaults.
Mad Mail:
Cramer read emails about NYSE-EuroNext (NYX), which Cramer thinks he "blew it" when he recommended the stock. Boeing (BA): Despite past devastating news, Cramer believes in it. Siemens (SI): Cramer thinks is in great shape and that you should hold onto it.

Labels: AXL, BA, DM, ETN, F, GRMN, Jim Cramer, KMX, Mad Money, Mad MOney Recap, NOK, NVT, NYX, SI, TM, TTM

Labels: ACTU, BEAS, BIDU, DISCA, FCSX, Jim Cramer, Lightning Round, Mad Money, MOT, NLY, NOK, RSH, WB, WNG

Bullish calls:
CME Group (CME): "The stock has been marking time. ... I think when we see the quarter it's going to be a rally like you wouldnt believe ... I say buy one share. ... It's a coiled spring." EMC (EMC): "We are looking at six months before EMC fully reflects the price of VMware." Parker-Hannifin (PH): "A remarkable company ... businesses are spread out. When it got to 80, I said it could go to 120. I reiterate that's where it's going." Union Pacific (UNP): "I like the rails ... and I'm going to send you to Union Pacific." Burlington Northern Santa Fe (BNI) Texas Instruments (TXN):" … is a monster good company to own at this point in the cycle." Nokia (NOK): Freeport-McMoRan (FCX): "I'm sending you to FCX." Goodyear Tire (GT): "I like the other side of the trade. I like the oil stocks." Rosetta Resources (ROSE): "Too cheap ... knocked down on litigation. Pull the trigger Rosetta." Crocs(CROX) Sirius Satellite Radio (SIRI)
Neutral calls:
Sears Holdings (SHLD): "Until we fix the housing morass, you're not going to make a lot of money in Sears. I'm in a holding pattern with Sears."
Bearish calls:
Delta Air Lines (DAL): "I don't want to own any airline here. I am a believer that oil is not done going up." Warner (TWX)
Comcast (CMCSA) Charter Communications (CHTR)
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Labels: BNI, CHTR, CMCSA, CME, CROX, DAL, EMC, FCX, GT, Jim Cramer, Lightning Round, NOK, PH, ROSE, SHLD, SIRI, TWX, TXN, UNP

CEO Interview: Indra Nooyi, PepsiCo (NYSE: PEP - News)
"The stocks are saying there's going to be a slowdown, so it would be wise for you to prepare for it," said Cramer, and while he isn't urging people to sell all their cyclicals yet, he suggests its time to take some profits. He invited Pepsi CEO and chairman Indra Nooyi onto the show to discuss the company's great performance which she said was due to the company's diverse portfolio and stellar management. Nooyi added, in terms of financial resources, Pepsi is not constrained, and in terms of people-resources, North America is growing and the company's international business is "exploding." Cramer mentioned a Wall Street Journal story that Nestle turned down a merger with Pepsi because it considers the latter company junk-food laden. Nooyi pointed out Pepsi's expansion into non-carbonated beverages and healthy snacks and its production process which conserves energy and water. Cramer remarked Pepsi delivered better than expected numbers and is a the right stock to buy.

Remember the AlaMobile: Texas Instruments (NYSE: TXN - News), Nokia (NYSE: NOK - News), Ericsson (NasdaqGS: ERIC - News), Sony (NYSE: SNE - News), Analog Devices (NYSE: ADI - News), National Semiconductor (NYSE: NSM - News)
With back -to-school tech gadgets in production, Cramer discussed TXN which was hit by a selloff; "I don't care about the quarter," he said. "I care about the future, because that is where we're going to make our money." He would use the decline as a buying opportunity, and thinks its mobile business will energize TXN. He added NOK, ERIC, SNE, ADI and NSM are also doing well. Returning to TXN, Cramer predicts the next quarter will be excellent and adds the company has a "massive rest-of-world" exposure.

Go Cisco (NasdaqGS: CSCO - News)! with Juniper Networks (NasdaqGS: JNPR - News), and Ciena (NasdaqGS: CIEN - News)
Cramer discussed a Financial Times interview during which Cisco CEO John Chambers says he's more enthusiastic about the company than he has been in a decade and the internet is entering a second phase which should last 10 to 15 years. Since Cisco provides the "backbone" for many types of communcation, Cramer doubts Chambers is just trying to sell his company, and notes Cisco rivals are delivering but have less upside than Cisco. Cramer noted Cisco is not expensive, is below its 52-week high, has $22 billion in cash and is protected from the ailing economy with its big international exposure.

Mad Mail: Six Flags (NYSE: SIX - News), Men's Wearhouse (NYSE: MW - News)
Cramer told one viewer not to touch financial stocks. He said he doesn't like SIX's balance sheet, and added the stock will do badly if the weather is not good. He told another mailer he doesn't like Men's Warehouse.
Published By SeekingAlpha

Labels: ADI, CIEN, CSCO, ERIC, Jim Cramer, JNPR, Mad Money, MW, NOK, NSM, PEP, SIX, SNE, TXN

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
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. Historically, these stocks have provided traders with a significant edge.
Nokia (NYSE:NOK - News) & Cephalon (NasdaqGS:CEPH - News). NOK's PowerRating is 6, and CEPH's PowerRating is 7.
5+ Consecutive Lower Lows: These are stocks that have made a lower low 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 make lower lows 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.
Peabody Energy (NYSE:BTU - News) & Chesapeake Energy (NYSE:CHK - News). BTU's PowerRating is 7, and CHK'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.
Reliance Steel (NYSE:RS - News). RS's PowerRating is 7.
Bearish
5+ Consecutive Up Days: 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.
DexCom (NasdaqGM:DXCM - News). DXCM's PowerRating is 2.
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.
Intuit (NasdaqGS:INTU - News). INTU's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: BTU, CEPH, CHK, DXCM, Hot Stocks, INTU, NOK, RS

Dell (NasdaqGS: DELL): Cramer would buy Dell on its strong quarter and believes 8,000 firings will bring the stock up for three more quarters.Nokia (NYSE: NOK ): This stock has "momentum. .. you give Nokia the ball," says Cramer.EMC (NYSE: EMC): Cramer applauds EMC's plan to split itself up and predicts it will reach $20 from $16.89.Sears (NasdaqGS: SHLD): After a rough patch, Sears is still healthy, commented Cramer, since CEO Eddie Lampert is buying back stock. "This is a big tell," Cramer said. "... When he buys, the stock goes higher."

Labels: Dell, EMC, Jim Cramer, Jim Cramer's Stop Trading, NOK, SHLD

Bullish:

Trinity Industries (NYSE: TRN - News): ' TRN's the one I've been featuring. That's the best railcar play... They also have a wind power focus.'Exxon Mobil (NYSE: XOM - News)Chevron (NYSE: CVX - News)Cameco (NYSE: CCJ - News)Hewlett-Packard (NYSE: HPQ - News): ' ... was stuck at $45 on Friday, started to inch higher. That one is the next one to breakout.'News Corp. (NYSE: NWS - News): 'The Dow Jones bid? I think that they ought to hit it ... Rupert Murdoch. He's a winner. I want to own his stock. The guy is a great businessman. People want to dump on him all the time. They don't have a clue.Qualcomm (NasdaqGS: QCOM)Texas Instruments (NYSE: TXN - News)Nokia (NYSE: NOK - News)Atwood Oceanics (NYSE: ATW - News): 'You're talking about a driller! A driller to the power of nine - buy, buy, buy!'Halliburton (NYSE: HAL - News)Vail Resorts (NYSE: MTN - News): ' Good trade into June 11th. I suspect great numbers, but then get out of it, because the summer is a bad time for that one.'
Neutral calls:
Darling International (AMEX: DAR - News): '... this is a respectable play... This is an $8 stock, so I've been reluctant to talk about it... But I'm doing a memo to staff right now... maybe we sneak this in one day.'
Bearish calls:
Blockbuster (NYSE: BBI - News): 'Remember, we felt that when Joe Antioco got the boot there, we went with his boot. I cannot get behind BBI. Sell, sell, sell!'FreightCar America (NasdaqGS: RAIL): 'I can't get behind RAIL .... RAIL is not best in show.'Vaalco Energy (NYSE: EGY - News): 'Too dangerous my friend! I tried to get behind this company once before. It has got these incredible properties off the coast of Africa, but I want to be very honest... I have not seen this company deliver... I see nothing but the house of pain.'Evergreen Solar (NasdaqGM: ESLR): 'You should be selling your solar stocks, including that stock - sell, sell, sell! - and buying them after the big wave of underwriting knocks the whole group down.'Brightpoint (NasdaqGS: CELL): 'I need you out of that stock! I don't think there's anything really cooking there... Sell a little bit now, and let it go up... you should be out of it by $16.'CDW Corp (NasdaqGS: CDWC): ' I was asked about CDWC last week... Take profits! The stock was up 25% in six weeks. We like the market. A better play is Hewlett-Packard.'

Published By SeekingAlpha

Labels: ATW, BBI, CCJ, CVX, DAR, EGY, HAL, HPQ, Jim Cramer, Lightning Round, Mad Money, MTN, NOK, NWS, TRN, TXN, XOM

IBM (NYSE: IBM - News): Although Cramer thinks IBM could rise 15% because unpopular CEO Sam Palmisano is taking a "permanent intellecutal vacation," he notes the stock could fall 20% if a new chief isn't chosen soon. Cramer suggested "maybe IBM could get a board of directors," which he thinks the company badly needs since it took so long to let Palmisano go.
Apple (NasdaqGS: AAPL), Nokia (NYSE: NOK - News), Motorola (NYSE: MOT - News): Cramer says Apple is the one tech stock worth buying, since Wednesday is the final quarter before the release of its iPhone. He would pick up the stock at $90, especially since NOK and MOT are not doing well, and adds the only reason NOK is up 6 points is not due to its own strength but MOT's weakness.
Published by SeekingAlpha

Labels: IBM, Jim Cramer, MOT, NOK, Stop Trading

Bullish calls:
Cleveland-Cliffs (NYSE: CLF - News): 'Cheap, cheap, cheap, cheap, cheap! This is an iron pellet company, and there is a worldwide shortage of iron ... I believe that CLF - if it does not get the stock higher - will be purchased by another company - buy buy buy!'Vodafone (NYSE: VOD - News): 'I think the 3% yield, plus the incredible assets it has in Europe yields a buy, and I would buy the stock.'Gilead Sciences (NasdaqGS: GILD)Celgene (NasdaqGS: CELG): 'I've got the CELG at $55.'Genzyme (NasdaqGS: GENZ)Infosys Technologies (NasdaqGS: INFY): 'You know that's one of my favorite outsourcing companies! Now there are a lot of people who won't want to put money in Bangalor... I think those people are short-sighted.'Accenture (NYSE: ACN - News): ' ... you could always do ACN, ahead of next week's quarter, which I think will be good.'Six Flags (NYSE: SIX - News): 'They reported a quarter that everyone said was bad. And did the stock blink an eye? Absolutely not. I am with you. I believe the comparisons will be really easy for SIX. Pull the trigger my friend.'Sun Microsystems (NasdaqGS: SUNW): 'I think SUNW is okay. This is a new position for me. I have historically disliked SUNW... At $6 bucks, I don't know... enough hate is enough. They've got a new CEO. They've got a KKR shareholder. I think there's a lot of ways to win. $1 down, $3 up.'Indevus Pharmaceuticals (NasdaqGM: IDEV): 'I recommended IDEV... and it is still ramping... but it's a little $6 stock, so I'm not going to push it hard here. They've got a lot of compounds... I would take a shot. It's a flyer. It's a speculative name.'Apple (NasdaqGS: AAPL): 'If it's going to $100 and beyond, I don't think $93 is a bad level, but let's do it this way: Let's buy 25 shares, with the hope it comes in so we can get our 100 shares in... I think iPhone is going to be gigantic. 'Amgen (NasdaqGS: AMGN): 'I say buy it here with a minimum risk/reward. Maybe even do it in deep-in-the-money in options.'
Bearish calls:
Boston Scientific (NYSE: BSX - News): ' We pulled the trigger, and told people to sell at $18, and I am not changing my mind. I still don't like BSX, even down here at $15. Sell, sell, sell!'Baidu.com (NasdaqGM: BIDU): 'I can never trust the communist Chinese communists to allow a free-speech internet to be able to prosper... which is why I refuse to endorse BIDU. Don't buy, don't buy.'Pozen (NasdaqGM: POZN): ' Too dicey, ever since they did that migraine game... I've got the CELG at $55. That's better. I like the GILD better too. And let's not forget GENZ!Nokia (NYSE: NOK - News): 'NOK is falling apart.'Motorola (NYSE: MOT - News): 'MOT is competely and utterly just (house of pain)।'
Published by SeekingAlpha

Labels: ACN, AMGN, BIDU, BSX, CELG, CLF, GENZ, GILD, IDEV, INFY, Jim Cramer, Lightning Round, Mad Money, MOT, NOK, POZN, SIX, SUNW, VOD

A Good Call: AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), Sprint Nextel (NYSE: S - News) and Qwest (NYSE: Q - News)
Four companies are poised to become the candidate for the government's largest ever telecommunications contract, Networks Universal, and Cramer believes this contract is significant if it will "move the needle." He comments T and VZ are already so large that even though the deal will mean $68 billion over the next 10 years, it shouldn't move these stocks more than 50 or 60 cents upward. Sprint would be a likely candidate, but although the company reported a good quarter, things look less rosy for Motorola, Sprint's supplier. This leaves Qwest; "I think you'll see a gigantic move, as the permanence of Q is no longer in doubt," said Cramer. Even if Q doesn't get the deal, it is in the "fast-growing part of the country" and may be a takeover target. Cramer would do a mon' back!
Water the Odds? Pico Holdings (NasdaqGM: PICO)
A student at the University of Texas gave Cramer the idea to look at water stocks, and while he is not hitting the bull button yet, Cramer suggests doing homework on PICO, a small speculative play. While Cramer is not thrilled with the water utility market, he likes the fact that PICO sells its water at a premium and has a 35 mile water pipeline under construction. While only one analyst is covering the stock, but Cramer says, "Water is becoming too hot for it to stay under the radar." He urges investors who have done their homework to use limit orders when buying PICO.
Sell Block: Blockbuster (NYSE: BBI - News), GSI Commerce Inc. (NasdaqGS: GSIC), Motorola (NYSE: MOT - News), Nokia (NYSE: NOK - News)
Although Cramer has been bullish on BBI, he was essentially bullish on CEO John Antioco, and would sell the stock on the announcement of Antioco's departure, because "he was the one who gave us our double in the stock" and "exceeded handily" his promises. Although some are critical of Antioco's long-term performance, Cramer pointed out that he saved BBI from Netflix, and he would take gains in the stock now. Cramer notes GSIC is up 28% since his December recommendation, and he would do a schnitzel (sell the gains) on its large increase. Cramer then discussed the "unbelievable Barnum and Bailey stuff" that occurred when some "joker" of an analyst suggested buying Nokia after Motorola cut guidance. "What's bad for MOT is going to be bad for NOK," said Cramer, because MOK's problem is an indication of an industry-wide problem.

CEO Interview: Angelo Mozilo, Countrywide Financial (NYSE: CFC - News)
When Cramer asked why CFC stopped giving out "bad loans" at a time everyone was doing it, Angelo Mozilo said he was talking about problems with loan quality and margins at New Century and Ameriquest a year ago. The companies had a bad business model, Mozilo continued, stating there will be consequences for minority and first-time prospective homeowners because of disappearing liquidity, and this trend will impact the housing market. However, he added the subprime mess has cleared the field of many of CFC's competitors, and the company will be in a dominant position at the end of this painful subprime ride. Cramer commented its time to pick up survivors like CFC ahead of a Fed rate cut in May. Cramer aimed to reassure viewers about Muzilo's stock-selling; "He's an older fellow... It's time for him to do a little insider selling... and I would start doing some outsider buying!"
Published By SeekingAlpha

Labels: BBI, CFC, GSIC, Jim Cramer, Mad Money, MOT, NOK, PICO, Q, S, T, VZ

Don't Buy and Hold
In spite of the fact that Cramer was a money manager "with a terrific track record" he admitted to having made every mistake he describes in his book, Jim Cramer's Real Money, Sane Investing in an Insane World, as well as every faux pas mentioned in his new publication, Jim Cramer's Mad Money: Watch TV, Get Rich. Cramer identifies the single worst and most common mistake as adopting a "buy and hold" strategy, which is disastrous because "it's just not true that your stock will necessarily bounce back." Just hanging onto a stock might have worked 30 or 40 years ago when "taxes were high and commissions were even higher," but in today's world, investors need to do homework on their stocks, and investors who don't have the time to research their investments on a weekly basis should go into mutual funds.Don't Dwell on Regrets
Although Cramer says he is the worst offender when it comes to this vice, he urges investors not to waste precious time grieving over past mistakes, since one "cannot afford to get thrown off their game." Instead Cramer emphasizes the importance of going forward and not losing confidence.
Tips are for Waiters not for Traders
"You have to discipline yourself so that you never, ever take a tip seriously," Cramer said, and he discussed the non-existence of real stock tips. For instance, if someone would say that Nokia is about to buy Research in Motion, the only way he would know is if he were an insider, and taking a tip from an insider is illegal. Cramer emphasized the importance of avoiding temptation in such a case: "Having the Securities and Exchange Commission investigate you is pure hell even if you haven't done anything wrong," he said. "Imagine how bad it would be if you were actually guilty of something." However, A non-insider who would tell an investor about a potential, unpublicized merger would have no basis for knowing, and should also be ignored: "If you get a tip, it's either illegal, incorrect or straight-up manipulative."
Diversify, Diversify
"I like to think that I'm universally loved, but people really tend to hate me when one sector is en fuego and I tell them to take some money out of it and spread it around because you can't keep all your eggs in one basket," Cramer said. However, once the "hot" sector falls out of favor, people thank Cramer for telling them to stay diversified. Cramer warns investors not to have more than 20% of their money invested in a single sector. "You absolutely must stay diversified, and this rule can't be bent, broken or spindled."
Don't Buy an Entire Postion at Once
"The single most arrogant thing you can do as an investor is buy your whole position in a stock at once," Cramer said. Investors who buy incrementally make more money and do not have the regret of having jumped hastily into a stock. Cramer suggests looking for opportunities to buy gradually.
Published by SeekingAlpha

Labels: Hot Stocks, Jim Cramer, Mad Money, NOK, RIMM

Summary: Following Nokia (NYSE: NOK - News)'s surprise high earnings report last week, Motorola (NYSE: MOT - News)'s 4Q results from two weeks earlier paled even more. Nokia's cellphone margins were actually up, despite intense competition and resulting phone price cuts. The company's handset operating margins rose to 17.8%, up more than 2% from the previous quarter, while Motorola, at 4.4%, went half as high as anticipated. All handset competitors have suffered from shrinking margins, with the sole exception of Nokia and Sony (NYSE: SNE - News)-Ericsson (NasdaqGS: ERIC). Motorola is taking growth in market share and volume in emerging markets, at the cost of margins and profit. Slashing the cost of its popular RAZR model resulted in increased market share at the expense of its other handsets. The gap between the two giants can widen in the short term, as Nokia releases new handsets, rich in feature and fashion. Due to the great success of Motorola's RAZR, Nokia had adopted a strategy of scale and cost, allowing it to succeed while the competition flounders. Motorola is currently trading at 15.2x earnings, versus Nokia's 17.2. Bottom Line: "After two quarterly-earnings misses in a row and with no hot successor to the RAZR in sight..Motorola stock appears to be no better than dead money for at least the first half of 2007."
Published by SeekingAlpha

Labels: MOT, NOK, SNE

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

Watch the Profits: Nabors (NYSE: NBR - News), Limited Brands (NYSE: LTD - News), Motorola (NYSE: MOT - News), Circuit City (NYSE: CC - News), TJX (NYSE: TJX - News), Ross Stores (NASDAQ: ROST - News), Nokia (NYSE: NOK - News), Texas Instruments (NYSE: TXN - News)
Concerning the stronger-than-expected employment figure, Cramer told host Aaron Task that he likes a situation when half of the analysts think that the Fed should raise rates and the other half want the Fed to lower rates, since an environment is created in which profts cause less disappointment. He added that recently the market is "killing" companies with less than spectacular results, and Task noted that this trend has been noticeable with Nabors, Limited Brands and Motorola. Cramer mentioned that he wanted to recommend LTD because of its jump to $32 after the Victoria's Secret fashion show, but then it fell to $29, and Cramer said that he now prefers TJX and ROST. Task discussed BBY's better-than-expected sales and Cramer said he would double up on the retailer even though it has gone up. "Best Buy has a history of doing two things: disappointing or telling people it's going to disappoint in November and then giving an upside surprise in January," he said. "The fact that anyone is not wise to this is irritating," said Cramer, who urged viewers to buy the stock "hand over fist." Although Circuit City has been moving up with BBY, Cramer says it doesn't have the inventory controls, the good merchandising or a sales staff which pushes the more expensive products. He commented that he doesn't like the cell phone business, especially Nokia, and with Motorola struggling, he would avoid buying component players such as Texas Instruments, although he wouldn't necessarily sell it. Finally, Cramer recommended taking a "hard look" and Apple and picking it up.
Published by SeekingAlpha

Labels: CC, LTD, MOT, NBR, NOK, ROST, TJX, TXN