Jim Cramer's Mad Money Review

Buy Syngenta (SYT), Jim Cramer said on CNBC's "Stop Trading!" segment Monday.
Cramer said the Swiss agriculture company has been welcomed in Europe, unlike American companies. "I always felt that Europe had been very inhospitable to American biotechs," he said, calling Syngenta "one that they embrace." The stock is a "great buy," he said.
Cramer pointed out that Syngenta is off its highs. Because Bunge (BG), Monsanto (MON) and Syngenta all trade alike, "Anytime you get a discount in one, I'd pull the trigger," he said.
In energy, Cramer recommended ABB Ltd. (ABB). Cramer said that presidential candidate John McCain has left nuclear power as "really the only option" he supports. "ABB is the nuclear company from around the globe," he said.
Cramer said that Deutsche Telekom (DT) ought to acquire Sprint Nextel (S). With "no growth" and a 7% yield, Cramer said, Deutsche Telekom should take advantage of Sprint's install base. "They need growth to get this thing energized," he said. "I don't know what the holdup is."
Of BP (BP), Cramer said that American investors are impressed with the company's new management. He said that BP's 4% yield is safe.

Labels: ABB, BG, BP, DT, Jim Cramer, MON, S, Stop Trading, SYT

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced 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.
IPSCO Inc. Aug 160 Calls (NYSE:IPS - News). IPS' PowerRating is 5.
Most Underpriced 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.
Apple Inc. July 130 Puts (NasdaqGS:AAPL - News). AAPL's PowerRating is 5.
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.
Deckers Outdoor Corp. Aug 110 Calls (NasdaqGS:DECK - News). DECK'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.
Bear Sterns Aug 125 Puts (NYSE:BSC - News). BSC'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.
Sprint Nextel Corp. (NYSE:S - News). S' PowerRating is 5.
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.
Financial Select Sector SPDR (AMEX:XLF - News). XLF'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 Corp. (NYSE:CTX - News). CTX's PowerRating is 4.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, BSC, CTX, DECK, Hot Stock Options, IPS, S, XLF

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

Bullish
Gaps Down 5% or More: These are stocks that gap 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 gap 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.
Clayton Holdings (NasdaqGM:CLAY - News). CLAY's PowerRating is 3.
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.
Sprint Nextel (NYSE:S - News) & Clear Channel Outdoor Holdings (NYSE:CCO - News). S's PowerRating is 6, and CCO's PowerRating is 4.
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.
Intermune (NasdaqGM:ITMN - News) . ITMN's PowerRating is 9.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day and 2-days later. Historically, these stocks have provided traders with a significant edge.
Cooper Companies (NYSE:COO - News). COO's PowerRating is 4.
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.
Caterpillar (NYSE:CAT - News). CAT'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.
Advance America (NYSE:AEA - News). AEA's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: AEA, CAT, CCO, CLAY, COO, Hot Stocks, ITMN, S

Labels: ACI, BQI, BTU, CEL, DGX, DVN, ECA, FRO, GMR, HPQ, Jim Cramer, Lightning Round, Mad Money, PRU, S, SU, TM, TRX, VZ

"Pipeline Play": Biosite (NasdaqGS: BSTE)Cramer wanted viewers to take a look at Biosite which will be in demand if the Democrats "storm the winter palace" in November, because the money will go out of Big Pharma into "small, diagnostic plays." He likes the fact that Biotech is new and not yet played out, and comments that this producer of diagnostic tests keeps reinvesting money into new products. Cramer added Biosite is "sitting on top of a new product cycle," and should see an upside as well as more analyst coverage. He also predicts a short squeeze which should bring the stock up, and notes the company implemented a 12% buyback of its stock, and Fidelity is increasing its stake in the company from 12% to 15%. Cramer likes Biosite as a "pipeline story" and thinks the shorts are going to be sorry.Here Comes the Sun Microsystems (NasdaqGS: SUNW)Cramer declares that SUNW, a stock he has "hated for a very long time," is now an "under -$10 turnaround" because its new management is making serious changes by cutting costs and continuing to improve its sales. However, he cautions against impulse buying, and urges investors to find a good entry point and not to buy before Monday afternoon. Cramer sees upgrade potential, notes that its server business is "en fuego" and its software business is strong. He reminds investors to use limit orders when buying.The Week Ahead: GlobalSantaFe (NYSE: GSF - News), Marvell Technology (NasdaqGS: MRVL), Analog Devices (NYSE: ADI - News), Blockbuster (NYSE: BBI - News), Dynegy (NYSE: DYN - News), Foster Wheeler (NasdaqGS: FWLT), McDermott (NYSE: MDR - News), Charter Communications (NasdaqGM: CHTR), Sprint (NYSE: S - News), Gap (NYSE: GPS - News), Viacom , and VeriFone (NYSE: PAY - News)On Monday, Cramer suggests buying GSF before it reports a "blowout quarter" and would pick up MRVL after its disappointing report. He sees hope for MRVL because ADI indicated the worst is over in the chip inventory cycle. Cramer says investors should sell BBI before Tuesday and buy some back after a selloff, and he would do the same with DYN. He predicts strong earnings for FWLT and MDR, would buy CHTR ahead of its report, and would only pick up Sprint if it has an "incredibly miserable" quarter. Cramer also suggests taking a look at GPS, Viacom and PAY.Mad Mail: Sirius Satellite Radio (NasdaqGS: SIRI) and XM Satellite Radio (NasdaqGS: XMSR)When faced with a potential merger, Cramer says it is better to buy stock in the stronger rather than the weaker company, because even if the deal is off, the better company will rise.

Labels: ADI, BBI, BSTE, CHTR, DYN, FWLT, GPS, GSF, Jim Cramer, Mad Money, MDR, MRVL, PAY, S, SIRI, SUNW, XMS

Case for Trades: Marvell (NasdaqGS: MRVL)
Cramer discussed the outdated stigma that surrounds trading, and said that there is no reason to avoid trades now that taxes and commissions are the lowest he has seen them. "Buy and hold" doesn't cut it anymore, he commented, adding that his Mad Money picks are not meant to be held forever; investors "should try to buy as low as possible and sell high ... That doesn't make you a trader. It makes you an intelligent manager of your own money." In spite of an upgrade by Deutsche Bank and J.P Morgan, semiconductor stocks will not be strong until the middle of the year, and he expects MRVL to get hit harder than the rest. However, Cramer would buy the stock low because "Marvell is not a trade. It's not an investment. It's just a good idea." He would pick up the stock below $18 before it reports, but would do homework first.
Oil is Well: National Oilwell Varco (NYSE: NOV - News), Teneris (NYSE: TS - News), Hydril (NasdaqGS: HYDL)
Although The Street has abandoned oil, Cramer likes NOV, since it "is the biggest maker of oil rigs on earth," reported an amazing quarter and is cheap. He points out that just as Teneris has agreed to buy HYDL for $97 a share, another buyer could pick up NOV. Cramer would buy some before it gets a takeover bid.
Q & A and Mad Mail: Sears Holdings (NasdaqGS: SHLD), Sprint (NYSE: S - News), Electronic Arts (NasdaqGS: ERTS), THQ (NasdaqGS: THQI), Domino's (NYSE: DPZ - News), Diageo (NYSE: DEO - News), Vonage (NYSE: VG - News)
Cramer says that he is recommending SHLD because it could be another Berkshire Hathaway, but said that he would get rid of the stock if he saw "deviation from... the Berkshire plan." Concerning Sprint, he says he would not recommend a stock when its fundamentals are deteriorating, and adds, "I keep waiting till the estimates get so low that they can't deteriorate further," and says that he would back up the truck when that happens. While the success of one game would not make such an impact on $15 billion company ERTS, it could affect$2 billion company THQ, and since the stock is expensive, Cramer would not buy it. Cramer says that "the worst is over" for DPZ, and would hold on to it, since it is a good chain. Finally, Cramer says Diageo is "terrific" and VG is "radically overpriced."
Published by SeekingAlpha

Labels: DEO, HYDL, Jim Cramer, Mad Money, NOV, S, SHLD, TS, VG

Fitch Ratings cut its credit rating on Sprint Nextel Corp. on Wednesday following the telecom company's forecast Monday of declining profits in 2007.
Sprint Nextel's gloomy outlook "materially reduced cash flow prospects and was significantly worse than Fitch's expectations," the ratings agency said in a note Wednesday.
Fitch downgraded Sprint Nextel (NYSE: S - News) one notch from BBB+ to BBB, which is two notches above a noninvestment grade, or "junk" rating. Sprint Nextel has about $22 billion in debt.
Sprint Nextel said Monday that it expects operating income before depreciation and amortization between $11 billion and $11.5 billion in 2007, down from a range of $12.6 billion to $12.9 billion in 2006.
The company blamed the drop on lost revenue due to Nextel subscribers who disconnected in 2006 and declining revenue per user.
To regain its competitiveness, Sprint Nextel said it will need to spend an extra $1.1 billion on increased marketing, handset subsidies and network improvements in 2007. That investment "quantifies the depth of the problems that Sprint Nextel faces," Fitch said in its note.
Sprint Nextel also said Monday that it will cut 5,000 jobs, or 8 percent of its work force of 64,600, and implement other initiatives to save $1 billion a year.
Shares of Sprint Nextel plunged 11 percent Tuesday, from $19.64 to $17.45, erasing about $6 billion in market value.
In its note, Fitch agreed with Sprint Nextel CEO Gary Forsee's contention that the company will stop losing customers in the second half of 2007. The company has been besieged by Nextel customer losses because of reduced network quality and subscriber credit issues.
Fitch said it would consider upping its outlook on Sprint Nextel from negative to stable if Sprint Nextel can reverse the negative trends during the next couple of quarters.
Sprint Nextel CFO Paul Saleh said in Monday's conference call that the company was committed to keeping investment grade credit ratings.
Published by the Kansas City Business Journal

Labels: S, Sprint Nextel