Jim Cramer's Mad Money Review

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.
PalmOne (NasdaqGS:PALM - News). PALM's PowerRating is 8.
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.
Vanda Pharmaceuticals (NasdaqGM:VNDA - News). VNDA's PowerRating is 7.
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.
Safeco (NYSE:SAF - News) & Northstar Realty Finance (NYSE:NRF - News). SAF's PowerRating is 7, and NRF's PowerRating is 6.
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.
LHC Group (NasdaqGM:LHCG - News). LHCG's PowerRating is 7.
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.
Johnson & Johnson (NYSE:JNJ - News). JNJ's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving 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.
NutriSystem (NasdaqGS:NTRI - News). NTRI's PowerRating is 1.
PowerRatings are courtesy of PowerRatings.net

Labels: Hot Stocks, JNJ, LHCG, NRF, NTRI, PALM, SAF, VNDA

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.
Dow Chemical (NYSE:DOW - News). DOW'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.
Vanda Pharmaceuticals (NasdaqGM:VNDA - News) & Advance America (NYSE:AEA - News). VNDA's PowerRating is 8, and AEA's PowerRating is 6.
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.
Stride Rite (NYSE:SRR - News). SRR's PowerRating is 7.
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.
Allergan (NYSE:AGN - News). AGN's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving 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.
Quest Diagnostic (NYSE:DGX - News). DGX's PowerRating is 4.
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.
NutriSystem (NasdaqGS:NTRI - News). NTRI's PowerRating is 2.
PowerRatings are courtesy of PowerRatings.net

Labels: AEA, AGN, DGX, DOW, Hot Stocks, NTRI, SRR, VNDA

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. Automatic Data Processing (ADP)

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. CBOT Holdings (CBOT) & Sony (SNE)

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. American Superconductor (AMSC)

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 investors with an edge. Blyth Incorporated (BTH)

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. First State Bancorporation (FSNM)

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. NutriSystem (NTRI)
John LeeAssociate Editor

Labels: ADP, AMSC, BTH, CBOT, FSNM, Hot Stocks, NTRI, SNE

Labels: AMZN, DRI, EBAY, Jim Cramer, LU, Mad Money, MRT, NTRI, UNH

Life Time Fitness (NYSE: LTM - News) and Town Sports (NasdaqGM: CLUB)
Since many people make New Year's resolutions to lose a few pounds, the time period between January and March is a good time to own fitness companies, says Cramer who chooses LTM as his "No. 1, best-of-breed, health club pick." He prefers LTM to CLUB, because it has better operating margins, higher revenue per customer and is not costly. In addition, Cramer comments that LTM has better and larger clubs and a superior business model. In spite of Prudential's negative rating, Cramer believes that LTM is a buy, regardless of the money the company will have to spend as it expands into wealthier areas, since the gym then will be able to charge higher prices.
Yo-Yo Diet Stocks: NutriSystem (NasdaqGS: NTRI) and Weight Watchers (NYSE: WTW - News)
Cramer commented that NTRI has gotten "crushed" because of its awful guidance; it was "flying high, then got pounded." He says that this stock is not safe to buyand is a "one-hit wonder," since its customers tend to abandon the product after 10 weeks, and everyone knows about the company. Cramer prefers WTW for growth and customer loyalty.
Mad Mail: Waste Services (NasdaqGM: WSII)
When asked how to buy WSII with a limit order, Cramer gave guidelines on how to respond to his picks, and discouraged viewers from buying stocks on the night he discusses them. Day one, an investor should do homework, day two, wait for other investors to give up and throw away the stock, and day three, do a mon' back (buy).
Published by SeekingAlpha

Labels: CLUB, Jim Cramer, LTM, Mad Money, NTRI, WSII, WTW

DeclinersAcco Brands Corp. (NYSE:ABD - News) was downgraded to neutral from outperform at Credit Suisse.
Allstate (NYSE:ALL - News) reported a 17% increase in fourth-quarter profit, but the insurer's results missed analyst estimates and the company said it will stop giving profit forecasts.
Calumet Specialty Products (NasdaqGM:CLMT - News) was downgraded to neutral from buy at Goldman Sachs.
Celestica (NYSE:CLS - News) shares fell after the company said its fourth-quarter net loss widened to $60.8 million, or 27 cents a share, from $28.2 million, or 12 cents a share, as costs of sales rose. The most recent quarter's results include a $30 million net charge related to an increase in inventory at a Mexico facility and a $59 million restructuring charge. Excluding amortization of intangible assets, among other items, the Canada-based provider of electronics manufacturing services posted per-share earnings of 3 cents vs. 13 cents in the prior year. Revenue rose 9% to $2.26 billion from $2.08 billion. The company sees an adjusted first-quarter per-share loss of 4 to 15 cents, on revenue of $1.7 billion to $1.9 billion. The company was also downgraded to underperform from peer perform at Bear Stearns.
U.S.-listed shares of Chinese companies fell, tracking steep losses in their home market after a senior legislator said the market may be overheated after a 130% gain in 2006. The comments by Cheng Siwei, vice-chairman of the standing committee of the National People's Congress, in an interview with the Financial Times, raised concerns the Chinese government may take official action to cool speculation after the market hit a record high last week. Chinese ADRs such as Guangshen Railway (NYSE:GSH - News), China Mobile (NYSE:CHL - News), Aluminum Corp. China (NYSE:ACH - News), China Life Insurance (NYSE:LFC - News) and Sinopec (NYSE:SNP - News) were all markedly lower.
Electronics For Imaging's (NasdaqGS:EFII - News) fourth-quarter earnings fell 38% to $7.08 million, or 12 cents a share, from $11.4 million, or 18 cents a share, a year earlier. On a non-GAAP basis, the Foster City, Calif., provider of digital controllers said earnings fell to $22.6 million, or 35 cents a share, from $23.1 million, or 36 cents a share. Revenue rose 5.8% to $153.9 million from $145.4 million in the year-ago period. The company expects to delay its Form 10-K filing for 2006 due to its ongoing stock-option grant investigation. The company sees first-quarter non-GAAP earnings of 25 to 27 cents a share on revenue of $140 million to $143 million.
Haemonetics' (NYSE:HAE - News) shares tumbled after the maker of automated blood processing systems provider forecast earnings of adjusted $2.05 to $2.17 per share for fiscal 2007 with revenue expected to rise between 7% and 9%. The company said this view reflect expectations for continued sales declines in its Japanese business.
Juniper Networks Inc. (NasdaqGS:JNPR - News) reported fourth-quarter revenue rose 4% to $595.8 million, from $575.5 during the same period one year ago. The sales figure slightly topped the estimates of Wall Street analysts surveyed by Thomson Financial, who had forecast $593 million.
Key Tronic (NasdaqGM:KTCC - News) shares dropped after the Spokane, Wash., provider of electronic manufacturing services posted a second-quarter profit of $300,000, or 3 cents a share, down from a profit of $1 million, or 10 cents a share, last year. The latest results include a charge of $940,000 related to a customer unexpectedly declaring bankruptcy in December. Key Tronic also said that new customer programs weren't enough to offset reduced demand from certain existing customers in the latest quarter.
Manitowoc Co. (NYSE:MTW - News) reported fourth-quarter net earnings of $43.9 million, or 69 cents a share, compared with $18.2 million, or 30 cents a share, in the same period last year, on strong revenues in the company's crane segment.
NutriSystem (NasdaqGS:NTRI - News) shares fell after the Horsham, Pa., provider of weight management and fitness products and services forecast first-quarter earnings of 82 to 86 cents a share on revenue of between $200 million and $210 million. Wall Street's current consensus estimate is for a profit of 94 cents a share in March period on revenue of $214 million.
Regeneron Pharmaceuticals (NasdaqGM:REGN - News) was initiated with an average rating at Caris & Co.
Repros Therapeutics Inc. (NasdaqGM:RPRX - News) announced the pricing of its public offering of 2.61 million shares at $13.75 each. The underwriters have a 30-day option to purchase up to an additional 390,000 shares of common stock to cover over-allotments, if any, the company said.
Saifun Semiconductor (NasdaqGS:SFUN - News) shares slumped after the company reported fourth-quarter earnings of $6.3 million, or 20 cents per share, down from a year-ago profit of $8.6 million, or 15 cents a share. Revenue at the Israeli chip company declined to $14 million in the quarter from $16.7 million a year ago.
SanDisk (NasdaqGS:SNDK - News) said it swung to a fourth-quarter loss from a year ago, hurt by acquisition-related charges, as sales surged amid increased demand for its NAND flash-memory storage chips used in consumer electronics.
Sepracor Inc. (NasdaqGS:SEPR - News) said fourth-quarter earnings rose to $99.1 million, or 85 cents a share, from $36.9 million, or 31 cents a share, a year earlier. The results include a 12 cents a share charge for stock-based compensation. Revenue increased to $357.2 million from last year's $311.1 million. Analysts surveyed by Thomson Financial had been expecting earnings of 62 cents a share and revenue of $341.4 million, on average.
Selective Insurance Group (NasdaqGS:SIGI - News) was initiated with a market perform rating at Wachovia Securities, citing concerns about increasing competition.
Silicon Laboratories (NasdaqGS:SLAB - News) forecast revenue of $106 million to $111 million for the fiscal first quarter, below Wall Street's current consensus estimate for revenue of $113.5 million in the March period.
Tekelec (NasdaqGM:TKLC - News) was downgraded to hold at Jefferies & Co.
Time Warner Inc. (NYSE:TWX - News) reported fourth-quarter net income of $1.75 billion, or 44 cents a share, up from $1.3 billion, or 28 cents, earned in the same period during 2005. Earnings from continuing operations improved to 43 cents a share from 28 cents, the New York-based media giant's results showed. Backing out one-time items, Time Warner said it would have earned 22 cents a share for the latest quarter. Quarterly revenue reached $12.47 billion from the prior year's $11.52 billion. Analysts were looking for earnings of 22 cents a share on revenue of $12.46 billion, according to estimates compiled by Thomson First Call. The company also said it expects to wrap up a $20 billion stock-buyback program during the first half of 2007.
Tupperware Brands Corp. (NYSE:TUP - News) reported fourth-quarter net earnings of $39.9 million, or 65 cents a share, up 28% from $31.2 million, or 51 cents a share, during the year-ago period. Earnings after adjustments were 74 cents a share.
Websense (NasdaqGS:WBSN - News) shares tumbled after the company said its fourth-quarter earnings fell 30%, due in part to the cost of starting distribution of its software through Ingram Micro Inc. in North America. The San Diego provider of employee Internet management software had fourth-quarter earnings of $7.78 million, or 17 cents a share, compared with $11.1 million, or 23 cents a share, a year earlier. Excluding stock-based compensation expense, the company earned $11.4 million, or 25 cents a share, up 3% from a year earlier. Revenue for the quarter ended Dec. 31 rose 18% to $47.3 million from $40.1 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 25 cents a share on revenue of $48 million. Analyst earnings forecasts typically exclude unusual items. In addition, Websense said it expects first-quarter earnings of 9 to 11 cents a share and first-quarter non-GAAP earnings of 19 to 21 cents a share.
W Holding Co. (NYSE:WHI - News) shares fell after the company posted a profit of $17.9 million, or 5 cents a share, for the fourth quarter, down nearly 41% from last year's earnings of $30.2 million, or 12 cents a share. The holding company for Westernbank Puerto Rico attributed the latest results to increases in its current income tax provision, non-interest expenses, and its provision for loan losses.
YMI Biosciences (AMEX:YMI - News) shares plunged after the company said it's terminating a phase III trial of testmilifene, a proposed advanced breast cancer treatment. The company said the move follows a recommendation from the independent Data Safety Monitoring Board that the trial be stopped because interim analysis indicates "it is very unlikely significant differences in overall survival will be shown" between treatment arms as the data mature. A.G. Edwards downgraded the company to hold from buy following the news.
Published by Michael Baron at MarketWatch

Labels: ABD, ACH, ALL, CHL, CLMT, CLS, EFII, GSH, HAE, JNPR, KTCC, LFC, MTW, NTRI, REGN, RPRX, SNDK, SNP

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.
Diamond Offshore Drilling Mar 85 Calls (NYSE:DO - News). DO'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.
Harman International Industries Mar 95 Puts (NYSE:HAR - News). HAR's PowerRating is 7.
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.
Rio Tinto Mar 210 Calls (NYSE:RTP - News). RTP'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.
Google Inc. Feb 440 Puts (NasdaqGS:GOOG - News). GOOG'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.
NutriSystem (NasdaqGS:NTRI - News). NTRI'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.
PharmaNet Development Group (NasdaqGS:PDGI - News). PDGI'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.
Technitrol (NYSE:TNL - News). TNL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: DO, GOOG, HAR, NTRI, PDGI, RTP, TNL

Rule #1: Resisting the Business Cycle, United Health Group (NYSE: UNH - News)
Cramer discussed more rules from his books: Jim Cramer's Real Money: Sane Investing in an Insane World, and Jim Cramer's Mad Money: Watch TV, Get Rich. His first rule deals with the business cycle which is largely controlled by the Federal Reserve's raising and cutting interest rates. When rates are reduced, the economy gets stronger, and investors should buy cyclicals such as "the dirty, smokestack stocks that make things like machinery, cars and minerals." When the Fed raises rates, the economy gets weaker, and it is time to get out of cyclical stocks and into companies that produce consumer staples, such as food and drugs. "You can't own cyclical stocks when the economy stinks, and you should stay away from the consumer staples when the economy's stronger," Cramer said, adding that this applies even if a company has strong fundamentals. He recalls his error of holding on to UNH when the economy picked up, and said that the selloff during the boom was a much bigger factor in the stock's decline than UNH's involvement in an options-backdating scandal.
Rule #2: "Analysts are never bullish enough on good stocks, and ... never bearish enough on bad stocks.": Ebay (NASDAQ: EBAY - News), Amazon (NASDAQ: AMZN - News) and Lucent (NYSE: LU - News)
The reason for the second rule is that analysts covering a stock are dealing with an entire sector for which they must find some stocks that are buys, sells and holds. "The Street will almost always treat a sector that's en fuego as being a lot less en fuego than it actually is," he said. Knowing this, investors can more easily spot which sectors are hot but underappreciated.He noted that this happened with oil stocks during certain times in the past few years when the sector was hot. Even the companies that were neglected or had a "sell" rating went up anyway. It can work the other way too, and Cramer thinks that analysts should have stayed bearish on eBay, Amazon and Lucent for a longer period of time.
Rule #3: Don't Be a Snob, Darden (NYSE: DRI - News), Ruth's Chris Steakhouse (NASDAQ: RUTH - News), Morton's (NYSE: MRT - News)
Because analysts inhabit an upper-class bubble, Cramer says they often miss out on companies that make low-end or mid-grade products. While they can more easily relate to stocks such as RUTH and MRT, most analysts missed out on 50% of Darden's big move between January 2005 and March 2006 because they turned their noses up at Red Lobster and the Olive Garden.
Rule #4 : "Whenever a stock is being heavily shorted and heavily hyped at the same time, it's time to sell that stock," NutriSystem (NASDAQ: NTRI - News)
Hype and a large short interest do not mix, but create a battleground where an investors should fear to tread, and Cramer commented, "You don't do something as risky as shorting a stock unless you're a well-educated investor who has done his or her homework on the thing." One can do research on a stock page on Yahoo or Google finance to see the percentage of shares that are shorted, and a large percentage of shorts indicates that there is a problem the bulls don't know about or do not want to face, as was the case with NTRI, which had problems with its distribution model. "So when all the analysts are having their lovefest with the stock, and you have an army of shorts sitting on the sidelines, you should see a red flag," Cramer said.
"Past performance is not indicative of future success."
Cramer warns viewers not to rely on past successes as a model for future investments, since "stocks have no memory and you could lose big." Investors should aim to make money, but not to feel "invincible" if they do and should avoid following the same patterns. Cramer recommended playing by the rules outlined in his books for successful investing.

Labels: AMZN, DRI, EBAY, Jim Cramer, LU, Mad Money, MRT, NTRI, RUTH, UNH