Jim Cramer's Mad Money Review

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.
Alberto-Culver (NYSE:ACV - News) & Eaton (NYSE:ETN - News). ACV's PowerRating is 7, and ETN's PowerRating is 6.
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.
CVS Corporation (NYSE:CVS - News) & Diamonds Trust (NYSE:DIA - News). CVS's PowerRating is 6, and DIA'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.
Sony (NYSE:SNE - News). SNE'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.
Dr. Reddy's Labs (NYSE:RDY - News). RDY'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.
Komag (NasdaqGS:KOMG - News). KOMG's PowerRating is 2.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ACV, CVS, DIA, ETN, Hot Stocks, KOMG, RDY, SNE

Apple (NasdaqGS: AAPL - News): 'Let's buy it down. You want to have 200 shares of AAPL, you buy 50 tomorrow at the opening, and then you pray it comes down... until five days before the iPhone is shipped, and then you've got to skee-daddy out of that guy... 'Alcoa (NYSE: AA - News):' ... even though it has had a monster run, and we believe in the stock, I am sticking with AA here.'Sony (NYSE: SNE - News): 'House of pleasure. I think that SNE goes higher ... How many companies come out with a totally third-rate product, that nobody likes, and then goes up 25% because of it ... I think it goes to $53, and there I want to pull the trigger.'Pall (NYSE: PLL - News): ' ... if you really want to go with that filtration game - that you go with Pall.'Tetra Tech (NasdaqGS: TTEK - News): ' ... if you want clean water, they've got it.'NYSE Euronext (NYSE: NYX - News): 'The NYX is not going to go up until everybody sells it, and everybody gets short it, and all the analysts come around and admit that they're wrong about being negative... and then it's going to fly.'
Bearish calls:
Resources Connection (NasdaqGS: RECN - News): ' I would not buy this stock. Don't buy, don't buy.'Skechers USA (NYSE: SKX - News): ' ... they had an inventory problem earlier in the year ... I think that SKX is too dangerous.'Calgon Carbon (NYSE: CCC - News)Verasun Energy (NYSE: VSE - News): 'You're kidding me, right? ... That stock was just created by bankers in order to be able to take the money from you - sell, sell, sell! '
Published by SeekingAlpha

Labels: AA, AAPL, CCC, Jim Cramer, Lightning Round, NYX, PLL, RECN, SKX, SNE, TTEK, VSE

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

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

GameStop Corp. (GME.N: Quote, Profile, Research), the largest U.S. video game retailer, reported on Tuesday reported a quarterly profit and strong same-store sales and issued a holiday forecast that some analysts saw as conservative. Its stock hit a new year high.
Third-quarter net income was $13.6 million, or 17 cents per share, compared with a loss of $2.5 million, or 4 cents per share, a year before. The company said excluding special items, its profit equaled 22 cents a share, in line with the average forecast of 14 analysts polled by Reuters Estimates. Revenue nearly doubled to $1.01 billion from $534 million a year earlier. Sales at stores open at least a year were up 8.8 percent versus a year before. GameStop predicted a strong holiday season with comparable store sales climbing between 14 percent and 18 percent during the fourth quarter, following the launch of Sony Corp.'s (6758.T: Quote, NEWS, Research) (SNE.N: Quote, Profile, Research) PlayStation 3 and Nintendo Co. Ltd.'s (7974.OS: Quote, NEWS, Research) Wii video game consoles. It forecast fourth-quarter earnings per share of $1.53 to $1.59 and full-year earnings per share of $1.98 to $2.04. "Holiday guidance may prove conservative," Lazard Capital Markets analyst Colin Sebastian said in a client note. He has a "buy" rating on the stock and on Tuesday raised his 12-month price target on GameStop to $60 from $54 per share. U.S. video game companies reap around half of their sales in the holiday season. During the third quarter, GameStop's hardware sales climbed 69 percent from a year earlier, led by Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox 360 and Nintendo's DS Lite hand-held player. Sales of software rose 14 percent, led by the popular "Madden" football game from Electronic Arts Inc. (ERTS.O: Quote, Profile, Research), "Saints Row" from THQ Inc. (THQI.O: Quote, Profile, Research) and "Dead Rising" from Capcom Co. Ltd. (9697.T: Quote, NEWS, Research) Shares were up $2.71 or 5.3 percent in afternoon trade on the New York Stock Exchange to $53.87 after touching a 52-week high of $54.90 earlier in the session.
Source: Reuters.com

Labels: Capcom, Electronic Arts, ERTS, GameStop Corp., GME, Microsoft, MSFT, SNE, Sony Corp., THQI, Video Games

Disney (NYSE: DIS - News) and Six Flags (NYSE: SIX - News)Commenting on Disney's drop since its impressive earnings report last week, Cramer insists that DIS did not "drop the ball" but that analysts raised expectations before the report which made Disney look worse than it is. He notes that Pirates of the Caribbean brought in $1 billion and sales of its shows on iTunes is not hurting its TV business, and would use Disney's decline as an opportunity to buy. He also likes Six Flags.NYMEX (NYSE: NMX - News) and New York Stock Exchange (NYSE: NYX - News)Cramer says that even though NMX has gone up, he would still buy 25% of a position in the stock now, however, he would prefer NYX up in the 130s and 140s.DJO (NYSE: DJO - News)The knee brace is becoming a fashion sports accessory as well as a treatment as companies encourage coaches to order knee braces in their teams' colors. Cramer discussed DJO in the past as a "simple but great" company, and now comments that "DJO is about braces and avoiding surgery -- a long-term trend."Network Appliance (NASDAQ: NTAP - News), Rackable Systems (NASDAQ: RACK - News), Marvell Technology (NASDAQ: MRVL - News) and Sony (NYSE: SNE - News)Cramer confessed that it was "hearbreaking" that those who sold NTAP on his suggestion missed a 12 point run. However, he also recommended sticking with RACK, and those who dumped the stock missed "an awesome 15 point run." Cramer feels certain that he is not wrong about MRVL which is acting like the other two companies since it has been a "real stinker" but reported "decent revenue and gave great guidance." He also thinks that estimates are too low for MRVL: "When you set the bar low, it becomes easy for the stock to jump." He recommends buying MRVL when it is at bottom, but would avoid SNE.Mad Mail: Blockbuster (NYSE: BBI - News), Jim Cramer Tattoos and Caremark (NYSE: CMX - News)When asked if Cramer expected BBI to exceed Cramer's $6 estimate, he answered that, given the rise of digital recorders, he doesn't think it will go from $4.75 to an amount exceeding $6. He told another mailer that getting a Jim Cramer tattoo would be a tad "aggressive." Finally, he suggested selling Caremark.Published By SeekingAlpha

Labels: BBI, CMX, DIS, DJO, Jim Cramer, Mad Money, MRVL, NMX, NTAP, NYX, RACK, SIX, SNE