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

Company
Market Cap (billions)
Yield

General Electric (NYSE: GE)
$424
2.7%
AT&T (NYSE: T)
$258
3.4%
Citigroup (NYSE: C)
$232
4.6%
Bank of America (NYSE: BAC)
$223
5.0%
Vodafone (NYSE: VOD)
$193
3.9%
Pfizer (NYSE: PFE)
$169
4.8%
Home Depot (NYSE: HD)
$55
2.8%

Source: Fool.com

Labels: BAC, C, Dividends, GE, HD, Hot Stocks, pfe, T, VOD

Company
Market Cap (billions)
Yield
General Electric (NYSE: GE)
$424
2.7%
AT&T (NYSE: T)
$258
3.4%
Citigroup (NYSE: C)
$232
4.6%
Bank of America (NYSE: BAC)
$223
5.0%
Vodafone (NYSE: VOD)
$193
3.9%
Pfizer (NYSE: PFE)
$169
4.8%
Home Depot (NYSE: HD)
$55
2.8%

Source: Fool.com

Labels: BAC, Blue Chips, Dividends, GE, HD, Hot Stocks, pfe, T, VOD

Bullish
Indevus Pharmaceuticals (IDEV): I recommended this as a speculative play.
Nastech Pharmaceutical (NSTK)
Great Lakes Dredge & Dock (GLDD): I recommended this
Foster Wheeler (FWLT) than I would be in GLDD
Halliburton (HAL): If you're looking for a stock to keep you afloat, it can't be Haliburton.
AT&T (T)- Stock that has a dividend.
Verizon (VZ)
ConEd (ED). Any one of those is better than Halliburton
GameStop (GME): Cramer was hoping we would get a chance to buy it at $56, but it's not gonna go there.
Transocean (RIG), Diamond Offshore (DO), China Digital (STV), McDonald's (MCD), Yum! Brands (YUM), Intel (INTC) and ConocoPhillips (COP).

Bearish
Great Lakes Dredge & Dock (GLDD)- would rather be in Foster Wheeler (FWLT)
InterDigital (IDCC)- ixnay on InterDigitalnay.

Labels: ED, FWLT, GLDD, GME, HAL, IDEV, Jim Cramer, Lightning Round, Mad Money, NSTK, RIG, T, VZ

On the Offense: Research in Motion (RIMM), Apple (AAPL), Intuitive Surgical (ISRG), VMWare (VMW)
Continuing his sports analogies from yesterday's show, Cramer told viewers it is essential to look for good offensive players which will be wide receivers providing fast growth. He compares Research in Motion to Randy Moss of the New England Patriots, because both players always meet or surpass expectations and have momentum. Terrell Owens of the Dallas Cowboys gets the touchdowns and Apple gets the media coverage. Cramer likes Apple, but thinks it may be setting prices too high. No stock can move 100 points faster than ISRG, and the company has as much speed as Santana Moss of the Washington Redskins. Two rookie wide receivers which dominate the field are VMware and Calvin Johnson of the Detroit Lions. He considers the IPO to be rookie of the year.
Tight End: AT&T (T),Consolidated Edison (ED), Enterprise Products Partners (EPD)
Cramer searched the market for the ideal tight end, a stock which has protection against downside risk and has potential to rise. He compared AT &T, which its 3.6% yield and 1.7 million subscribers to solid Antonio Gates of the San Diego Chargers. ED and Tony Gonzales, tight end for the Kansas City Chiefs are both solid and consistent, and ED has a dividend of 5.1%. While EPD is a bit of a sleeper, it has a 4.65% yield, and is like Jason Witten, who has great potential.
Inverness Medical Innovations (IMA), Medco Health Solutions (MHS), Herbalife (HLF)
Inverness a one-stop shop for diagnostics may be a takeover target for Johnson & Johnson or Procter & Gamble, according to Cramer, who likes it as a long-term play and gives it a triple buy. A potential catalyst is its impending acquisition of Chlolestech, and news is expected to come out on Wednesday. Cramer also likes MHS, which has risen 30% since his recommendation as well as Herbalife (HLF)
Mad Mail: Sirenza Microdevices (SMDI) and RF Microdevices (RFMD), Verifone Holdings (PAY)
When asked if SMDI will be buying RFMD, Cramer answered in the affirmative and said he likes SMDI, but doesn't feel confident about stocks levered to cell-phone components. Concerning PAY, Cramer said he blew it when he recommended the stock.
Published by SeekingAlpha

Labels: AAPL, ED, EPD, HLF, IMA, ISRG, Jim Cramer, Mad Money, MHS, PAY, RFMD, RIMM, SMDI, T, VMW

HMS Holdings (NasdaqGS: HMSY - News): 'We've always liked this. This is one of those companies ... that do cost control for medical.'MedcoHealth Solutions (NYSE: MHS - News)Cardinal Health (NYSE: CAH - News)AT&T (NYSE: T - News)EMC (NYSE: EMC - News): 'I think that EMC is a better way to play VMware right now.'Intuitive Surgical (NasdaqGS: ISRG - News): Freeport-McMoran (NYSE: FCX - News): 'This is a gold company and a copper company in a deflationary spiral mandated by the Federal Reserve. ... Am I backing away from it? No. ... I will say bull to Freeport.'First Solar (NasdaqGM: FSLR - News)Exelon (NYSE: EXC - News): 'Well-run ... can do well. ... I say two thumbs up to Excelon/'Hawaiian Electric (NYSE: HE - News): 'I like the utilities here. This one's got a very high yield. It's in a growth market. ... I stick with Hawaiian Electric.'
Bearish calls:
J.C. Penney (NYSE: JCP - News): 'I have been doing some work on J.C. Penney. 52-week low ... retail very hard to own ... I like to wait and see the quarter.'Posco (NYSE: PKX - News): 'It's not a House of Pain anymore. It's literally a Nation of Pain ... Don'tBuy, because it can go lower.'One National Banc (NYSE: ONB - News): 'Every bank is for sale here. ... I cannot recommend a bank on this show. I can't because I like other sectors so much more. Don'tBuy Don'tBuy Don'tBuy.'BHP Billiton (NYSE: BHP - News): ' I am not going to walk away from these, but you have to understand, these stocks are in the crosshairs of the Fed, and they are going to go down.'Fuel-Tech (NasdaqGM: FTEK - News): ' ... is so speculative in this environment.'Downey Financial (NYSE: DSL - News): 'Downey is a stock that will fly up 20 points when the Fed decides to blink. ... I think Downey's book value is pretty clean. I am surprised it got down to $47. I can't back away here.'VMware (NYSE: VMW - News): '$60 is my target, and we're already up another $7 today.'Accuray (NasdaqGM: ARAY - News): 'Accuray, frankly, is not a stock that I can pull the trigger on.'Akamai (NasdaqGS: AKAM - News): 'We know that Akamai's the wrong thing.'
Published by SeekingAlpha

Labels: ARAY, BHP, CAH, DSL, EMC, EXC, FCX, FSLR, FTEK, HE, HMSY, ISRG, JCP, Jim Cramer, Lightning Round, MHS, ONB, PKX, T, VMW

Dow but not Out: JPMorgan Chase (NYSE: JPM - News), General Motors (NYSE: GM - News), Citigroup (NYSE: C - News), AIG (NYSE: AIG - News), Honeywell (NYSE: HON - News), DuPont (NYSE: DD - News) and Hewlett-Packard (NYSE: HPQ - News), AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), Pfizer (NYSE: PFE - News) and Merck (NYSE: MRK - News)
After its mid-week drop, the Dow's rally on Thursday inspired Cramer to express confidence in the market and to repeat his prediction that the Dow will reach 14, 548 by the end of the year. He notes only four Dow stocks, JPM, GM, C and AIG are levered to current problems and only JPM and C are directly connected to mortgages. However, he commented HON, DD and HPQ have "beautiful" balance sheets and T, VZ, PFE and MRK will be able to survive the current market. Because of the strength of these stocks, the Dow wasn't crushed yesterday like it was "supposed to be," Cramer said.
The Windy City Merger: CME Group (NYSE: CME - News)
A good way to profit from the vicissitudes of the current market is to invest in CME, which Cramer recommends following its acquisition of the Chicago Board of Trade. Cramer likes the merger so much he thinks the Justice Department should never have allowed it to happen, since CME now has its "hands into everything" and can charge whatever it wants. While CME is trading at 30 x earnings, it is growing at a 20% clip this year, and its growth rate should reach 30% in 2008.
Sell Block: Buffalo Wild Wings (NasdaqGS: BWLD - News), General Cable (NYSE: BGC - News), Mastercard (NYSE: MA - News)
Since BWLD, BGC and MA got crushed after reporting better-than-expected quarters, Cramer explained "why bad things happen to good stocks." First, since all three had been rising rapidly, the bar was raised and "better-than-expected" just wasn't good enough for The Street. Second, there was a "hair" on each quarter, which is Wall Street jargon for a small flaw, or "hair" on a better-than-expected number. It was alleged that MA experienced domestic slowing, BWLD had slightly lower same-store sales and BGC had a downbeat outlook. However, Cramer said the main trick is knowing when to get rid of stock; "You can't count on me to tell you when to sell," he warned listeners, adding he can't always call a top. He said it is safe to sell the stocks now, since they are still high.
CEO Interview: Gregory Milzcik Barnes Group (NYSE: B - News)
Gregory Milzcik says his company is in the "sweet spot" of the current cycle; "We focus on difficult-to-manufacture parts but are also positioned great on high-volume, high-growth platforms, like that of the 787." He adds analysts are not really disappointed with the company, but want to see sales and margin growth, which Barnes Group can deliver. The company has expanded into Europe's "booming" market. Cramer commented; "Let the downgrades come, and then I would buy some. This stock's just way too cheap when it gets down to $20."
Published by SeekingAlpha

Labels: AIG, B, BGC, BWLD, C, CME, DD, GM, HON, HPQ, Jim Cramer, JPM, MA, Mad Money, MRK, pfe, T, VZ

Stocks Hurt On Subprime Woes
1 The NYSE composite sank 2.1%, the S&P 500 2%, the Nasdaq 1.9% and the Dow 1.6% in heavy volume as several market leaders came under pressure. Countrywide Fin'l missed profit views and slashed targets, as delinquencies spread beyond subprimes. Home builders and lenders were among the worst hit. The 10-year Treasury yield fell 4 basis points to 4.92%.
Amazon Soars On Strong Growth
2 The e-commerce giant's Q2 profit shot up 280% to 19 cents a share, 3 cents over views. Sales grew 35% -- the best in more than 3 years -- to $2.89 bil. Amazon (NasdaqGS:AMZN - News) said it got 2.2 mil orders for the final Harry Potter book. It sees Q3 revenue of $3 bil-$3.175 bil vs. views for $3 bil. Amazon shares surged 18% in late trading to record highs after falling 3.5% ahead of results.
AT&T Tops Views; iPhone Soft?
3 The telecom giant's Q2 profit rose 21% to 70 cents a share ex items, beating views by 3 cents. Revenue was $29.5 bil, or $29.8 bil adjusted. AT&T (NYSE:T - News) added 1.5 mil mobile users vs. 1.2 mil in Q1. But the U.S. mobile provider of Apple' (NasdaqGS:AAPL - News)s iPhone activated just 146,000 of the handsets June 29-30, far fewer than forecast. AT&T shares fell 1%. Apple, which reports Wed., slid 6%.
Countrywide: Loan Woes Spread
4 The mortgage giant missed EPS views badly and warned on full-year goals, citing "increasingly challenging" housing and mortgage markets. Subprime delinquencies soared, but high-quality loans had problems, too. Countrywide (NYSE:CFC - News) shares fell 10% to their lowest close in 3 years. Moody's and Pimco warned of liquidity woes. Lenders, home builders and financials overall sold off hard.
Gen. Plans Troops In Iraq In '09
5 Gen. David Petraeus has developed plans to achieve sustainable security in '09, his spokesman said. The Pentagon emphasized it's just a draft. Separately, President Bush warned against pulling out troops quickly and argued al-Qaida was deeply involved in Iraq. Also, U.S. and Iran agreed after talks in Baghdad to work together on security in Iraq.
Energy Prices Continue To Drop
6 Natural gas prices slid 2.9% to $5.863 per mil Btu, the lowest since Feb. '05. U.S. supplies are swelling. Gasoline futures fell 5.64 cents to $2.0477 a gallon, extending a sharp drop over the past 2 weeks as refineries come back on line. Analysts expect the gov't to say Wed. that U.S. gasoline stockpiles rose last week. Crude futures fell $1.33 to $73.56 a barrel.
AK, U.S. Steel Profits Beat Views
7 U.S. Steel's (NYSE:X - News) Q2 EPS fell 14% to $2.66 ex items amid weak flat-rolled shipments. But that still topped views by 31 cents. Sales grew 2.4% to $4.2 bil. Meantime, AK Steel (NYSE:AKS - News) more than tripled Q2 EPS to 98 cents, beating views by 28 cents. Sales rose 25% to $1.87 bil. Higher shipments and lower labor costs helped. Steel Dynamics (NasdaqGS:STLD - News) missed views late Mon. Shares of all 3 steel makers edged up.
DuPont Misses On Higher Costs
8 The chemical giant said Q2 profit rose 3% to $1.04 a share ex items, 2 cents shy of views. Sales grew 6% to $7.88 bil as the weak dollar boosted int'l volume growth. But weak U.S. housing and auto markets as well as higher energy and research costs hurt. DuPont (NYSE:DD - News) sees '07 EPS of $3.15, below views of $3.18. Its shares fell 6% to 49.90.
CME Slips 2% After Q2 Earnings
9 The Chicago Mercantile Exchange (NYSE:CME - News) said its earnings rose 18% to $3.69 a share ex items, 3 cents ahead of expectations. Revenue grew 17% to $329 mil, just shy of forecasts. Derivatives trading rose 10% in the quarter after a quiet April. The company said it is focusing on digesting its merger with the Chicago Board of Trade .
Afghan Rebels Killed In Clashes
10 U.S., NATO and Afghan forces have killed over 75 Taliban terrorists in 3 separate battles in southern Afghanistan. Fighting has intensified as NATO-led coalition forces have attacked Taliban strongholds in the south near the Pakistan border. Meanwhile, the fate of 23 S. Korean missionaries held hostage remained unknown.
Published by Investor's Business Daily

Labels: AAPL, AKS, AMZN, CFC, CME, DD, STLD, T, X

Apple (Other OTC: APPL.PK - News): 'I want you to buy more AAPL... People don't believe the power of this iPhone...- I think - goes to $150.'Canon (NYSE: CAJ - News)Under Armour (NYSE: UA - News): 'They're going to roll out their new women's line on Sunday night. I think you buy some UA tomorrow.'W.W. Grainger (NYSE: GWW - News): 'GWW may be one of those $80 to $100 to $120 stocks that I'm talking about... When will this stock get to $100? A few weeks. Stay long!'Varian Medical Systems (NYSE: VAR - News): 'It grows at 15%, and it's got a 24x multiple. There are some who think it's pricey. But integrated cancer care systems are where the action is ... that stock is off $12 from its high... I say going higher.'Hologic (NasdaqGS: HOLX - News)AT&T (NYSE: T - News): 'But T is the stock... go buy T. It's just a classic case of a well-run company with a good dividend that's doing well. Stay long T!'Verizon (NYSE: VZ - News)Bank of America (NYSE: BAC - News): ' One point downside, with a yield of about 4.6%... 4 points upside. That's a thing of beauty, risk/reward!'Genentech (NYSE: DNA - News): 'I'd like to see more of their numbers, but those look good.'Celgene (NasdaqGS: CELG - News): ' ... back on the move - thank you Bob Hugin - I think that one's great... buy, buy, buy!... Celgene, Nastech, Genentech, and then and only then, Amgen.'Nastech Pharmaceutical (NasdaqGM: NSTK - News): '... a lot of people don't like that name. I think they'll be wrong.'Amgen (NasdaqGS: AMGN - News): ' Celgene, Nastech, Genentech, and then and only then, Amgen.'Costco (NasdaqGS: COST - News): ' ... the only retailer I'm going with, and that's it.'Baidu (NasdaqGM: BIDU - News)
Bearish calls:
Moody's (NYSE: MCO - News): 'This is what I call a classic battleground... smart people on both sides. That makes me say, you know what? It's too hard.'Whirlpool (NYSE: WHR - News): 'At $100, I want to buy it. At $120, I want to sell it. It's right in the middle of the range. It's too difficult for Cramer.'Tyco (NYSE: TYC - News): 'Let's take our profits there. I just don't see a lot of upside to TYC.'Casey's General Stores (NasdaqGS: CASY - News)Idaho General Mines (AMEX: GMO - News)
Published by SeekingAlpha

Labels: AMGN, APPL.PK, BAC, BIDU, CAJ, CELG, COST, DNA, GWW, HOLX, Jim Cramer, Lightning Round, MCO, NSTK, T, TYC, UA, VAR, VZ, WHR

CEO Interview: Ivan Seidenberg, Verizon (NYSE: VZ - News), AT&T (NYSE: T - News)
Although everyone is talking about Apple's iPhone , Cramer says Verizon's CEO Ivan Seidenberg is "money," and predicts VZ will be able to hold its own against rival AT & T amid iPhone hype. Seidenberg commented Verizon has "the most advanced network" and a full range of new products, including handsets for music downloads and mobile TV products. After the buzz surrounding the iPhone dies down, customers will want "flexibility and breadth of choice," added Seidenberg. He said the company is concentrating on getting its stock up, and has seen substantial success in its wireless and fiber optic units. When Cramer asked if VZ would buy a TV network, Seidenberg responded he would "never say never" but added the company doesn't need to make such a purchase.
Idyllic Drugs: Acadia Pharmaceuticals (NasdaqGM: ACAD - News)
Cramer says it is time to buy this speculative drug stock, which is coming out with two drugs for schizophrenia and one for Parkinson's. While Cramer does not recommend buying ACAD on strength of its products but on the data that will come out, he adds, "If any of these drugs pan out, you have struck gold." He would invest in the company before its drugs are approved. One schizophrenia drug's Phase II results should bring the stock higher, success for the Parkinson's drug will make it a $709-million-a-year drug, and Acadia's ACP-104 is perhaps the strongest. "It's bottoming now in anticipation of the forthcoming data. I want you in for the ride up. This is a trade, not an investment," Cramer advised.
A Real Steel: Barnes Group (NYSE: B - News)
Cramer says this metals company is a "steal" and should benefit from the aerospace sector which is "running hot" and trucking, which is healthy, based on Cummins numbers. While Cramer admits he missed the company's bottom, this "under the radar" stock should have more upside as it attracts attention and more coverage from analysts.
Published by SeekingAlpha

Labels: ACAD, B, Jim Cramer, Mad Money, T, VZ

Alcoa Inc. (NYSE: AA - News), Altria (NYSE: MO - News), American Express (NYSE: AXP - News), American International Group (NYSE: AIG - News), AT&T (NYSE: T - News), Boeing (NYSE: BA - News)
Cramer predicted another 1,000 points for the Dow by the year's end and dedicated the week to discussing the 30 Dow stocks. He noted AA has been up 30% and predicts it will reach $42-$45. If it combines with Alcan, Cramer says AA could be part of a "delicious aluminum oligopoly." Cramer comments MO's 10% rise is not enough, especially given its 4% yield. Since it has spun off Kraft, Cramer envisions MO dividing into International and American divisions, one with a big dividend and one with growth potential. Cramer says AXP is "deceptive," since it quietly delivers but is up only 5% this year and is trailing behind Mastercard in valuation. He predicts AXP will climb up to $72. AIG doesn't get the respect it deserves, according to Cramer who says Metlife should not be worth more than AIG, which has a gigantic business in China. He says AIG has been held back by the massive selling of deposed head Maurice "Hank" Greenberg, and is a $81 name masquerading as a $71 stock. AT & T surpassed Cramer's expectations, since it has risen 13% after he predicted a mere 6 point rise. His new prediction is T will inch its way to $45. Cramer also revised his target for BA from $100 to $105 because of its excellent earnings.
Give Some Credit to Total System Services (NYSE: TSS - News), Automatic Data Processing (NYSE: ADP - News)
Cramer would buy TSS, a debit and credit card information card processor, which is a subsidiary of Synovus Financial. Although in similar situations, Cramer usually prefers a parent company, he feels that TSS could get taken over by a private equity firm. In addition, TSS has solid fundamentals, double-digit growth and is debt-free. While ADP may also be a takeover target, Cramer feels TSS is a better option because it is cheaper.
CEO Interview: John Sztykiel, Spartan Motors (NasdaqGS: SPAR)
John Sztykiel discussed the "tremendous amount of profitable growth ahead for the company," and explained the company is focused on three growth opportunities; mine-resistant ambush-protected vehicles, recreational autos and emergency vehicles. While Cramer comments SPAR has paused for a bit, he likes its story and says it is in "bull-market" mode.

Labels: AA, ADP, AIG, AXP, BA, Jim Cramer, Mad Money, MO, T, TSS

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

Summary: Alcatel-Lucent (NYSE: ALU - News) shares got creamed last week (-12%) when, after less than two months post-merger, CEO Patricia Russo warned about weak sales and income. Investors have concluded her warning is the final word on the merger - a misguided notion. If anything the warning reflects a difficult Q4 due to an investment freeze at AT&T Inc. (NYSE: T - News) while they ironed out their own merger details with BellSouth Corp. (Toronto Future: BLS.TO), and a general slowdown in telecom spending. The company hasn't even had time to implement much of its new plan. In 2007 it expects to see €200 million in merger-related savings, ballooning to €1.4 billion by 2009. Sales should pick up as operators start spending again, and ALU leverages its strong market positioning across fixed-line, wireless and Internet segments.
Published by SeekingAlpha

Labels: ALU, T

Yahoo (NASDAQ: YHOO - News), Google (NASDAQ: GOOG - News), Sun Microsystems (NASDAQ: SUNW - News), AT & T (NYSE: T - News), Verizon (NYSE: VZ - News), Apple (NASDAQ: AAPL - News), Norfolk Southern (NYSE: NSC - News), Union Pacific (NYSE: UNP - News), Lennar (NYSE: LEN - News), Centex Corp (NYSE: CTX - News), Toll Brothers (NYSE: TOL - News), DR Horton (NYSE: DHI - News) and Pulte (NYSE: PHM - News)
Cramer described the "glass half full mode" in tech as the shorts were looking at options expiration last week. "We were confounded by the work off of the options hangover which then positioned tech to be too low and ready for a trade -- just a trade, but a trade is worth grabbing." He added that the fact that Yahoo is up even though the company "doesn't have a clue" will give hedge funds the impression that it will go up whether Yahoo is good or bad and will encourage the shorts to change their position. Cramer also noted that Google was up on Yahoo, and that SUNW is also up, but he doesn't think that the company is doing anything interesting. What Cramer does find interesting is AT & T's strategy, outlined in its conference call, to take customers away from Verizon wireless by offering free service for a 18 months to Apple's iPhone users. Cramer says that NSC's drop is a "false tell" because the company periodically messes up and then ramps. He predicts that UNP will reach $110 to $115 from a recent $97. The "infrastructure crumble" for trucks make the rails "superior to almost any other trend I've got." Cramer calls CTX a "bunch of idiots" because they, along with LEN, TOL, DR Horton and PHM were too bullish at the top. "None of these companies distinguished themselves as good businessmen," he said. "None of them turned out to be cautious." However, he likes the fact that these companies are not building more homes, and prefers being long land inventory than home inventory because land is selling.
Published by SeekingAlpha

Labels: AAPL, CTX, DHI, GOOG, Jim Cramer, LEN, NSC, PHM, SUNW, T, TOL, UNP, VZ, YHOO

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

Bullish calls:
Covance (NYSE: CVD - News): 'This is one of those companies that is the arms provider to biotech and pharma... Yeah, they do the tests. You've got a two thumbs up, way up.'Continental Airlines (NYSE: CAL - News)Rite Aid (NYSE: RAD - News): ' ... an analyst downgraded RAD, and it sent the stock down 31 cents, where I want to back the truck up ... Mary Sammons runs RAD, and is going to be on the show when that deal closes, and that is going to be a phenomenal one!'International Flavors & Fragrances (NYSE: IFF - News)JPMorgan (NYSE: JPM - News): 'I am going to suggest that you buy JPM, because Jamie Dimond did a good call.'Capital One Financial (NYSE: COF - News): 'If you want a little risk, and big reward, you go with COF.'Level 3 Communications (NASDAQ: LVLT - News): 'I 'm reiterating my by for LVLT... If you want to be in fiber, you go into LVLT.'Best Buy (BBY): 'If you want to be in big-screen TVs, you go into BBY, and that's all there is to it.'AT&T (NYSE: T - News): 'I am so much a T man, so swap out of the Fair Point Commuications, and go into T.'Toyota Motor (NYSE: TM - News): 'I was a huge buyer of TM 10 points ago, for my charitable trust, and I'm reiterating my buy right here. I recommended TM, and it is only up a quick 15 points, and I'm not backing away, because they make good cars. 'Blockbuster (NYSE: BBI - News): 'This thing was downgraded by another analyst this week, and it was not even a glancing blow. It didn't even the guy, because the stock finished at or near its high. Why is that? Because the 'total access' program is working. He made us money - he's a guy we like. And BBI is a keeper.'Valero (NYSE: VLO - News): 'The refining game - if you want to get in that - I'm always going to send you to... VLO.'
Bearish calls:
JetBlue Airways (NASDAQ: JBLU - News): 'Very tough. After the close tonight, they announce two resignations, including a guy that seemed pretty important from the sales and marketing side. I want to see the smoke clear ... and then I still don't want to buy it.'Bare Escentuals (NASDAQ: BARE - News): 'I said sell that stock at $31-32. It's at $34-35. I don't regard that as being anything that you missed. And I suggested instead that you buy IFF at $42. It went to $49. I say no on your bear - Sell, sell, sell. 'Sky Financial (NASDAQ: SKYF - News): 'Ring the register, my friend! You're getting Huntington Bank - not one of my favorite banks, because that company's already been taken over. It is time to sell, sell, sell.'Western Refining (NYSE: WNR - News): 'I do not like the refining stocks this quarter; I think that you'll get hurt, but they represent some great value longer term ...- I am not going to pull the trigger just yet on any refining company... 'Electronic Arts (NASDAQ: ERTS - News): 'No, no! Everyone's all excited about ERTS ... They don't have that much ... I don't trust ERTS here. Mid-40's - only then, pull the trigger.'FairPoint Communications (NYSE: FRP - News): ' Oh, this is that spinoff, right? They split the company up? You know what? I know they've got that good yield - I am so much a T man, so swap out of the FRP, and go into T.'Wal-Mart: (NYSE: WMT - News): 'sell, sell, sell!'Walgreen (NYSE: WAG - News): 'Now, at $46, I'm not as strong on WAG.'Corning (NYSE: GLW - News): 'I'm stuck with GLW. I have said that it's okay, but it's flatlined right here at $19, in part, because there's a glut of big-screen TVs; in part, because my national fiber shortage hasn't really started yet.'
Published by SeekingAlpha

Labels: BARE, BBI, CAL, COF, CVD, ERTS, FRP, GLW, IFF, JBLU, Jim Cramer, JPM, Mad Money, RAD, SKYF, T, TM, VLO, WMT, WNR

Hot IPO: AeroVironment
Cramer says a good way to make money fast is by picking up the next hot IPO which he identifies as AeroVironment, an umanned surveillance aircraft company which is supposed to go public in the next week and to trade under the symbol AVAV. The Pentagon has been "pouring money" into this company whose products have been combat-tested and can be used for border patrol and to reduce casualties during wartime. While AeroVironment has some competition, it is the only company to produce a spy plane that weighs less than a pound. Cramer told viewers not to worry about the effect the Democratic Congress may have on this company, because it has "deep military contracts." Cramer suggests picking up the stock under $20, and discretionary buying until $25, which is a good sell price.
Playing it Safe: Consolidated Edison (NYSE: ED - News) and Southern Co. (NYSE: SO - News)
For conservative investors who want consistency for retirement savings, Cramer suggested ED and SO as bond-replacement stocks. These stocks have high dividends and low risk and can yield the same income as bonds, but with some upside potential. He also recommended these stocks over bonds because their dividends are not taxed as heavily as bond income.
Related: Geff Considine discusses ED and a low-risk portfolio.
All Ears: Texas Instruments (NYSE: TXN - News), Coach (NYSE: COH - News), United Technologies (NYSE: UTX - News), Norfolk Southern (NYSE: NSC - News), F-5 Netw0rks (NASDAQ: FFIV - News), AT & T (NYSE: T - News), Legg Mason (NYSE: LM - News), Microsoft (NASDAQ: MSFT - News)
Next week will be one of those weeks during which it will be hard to make money because there will be so many companies reporting there earnings, so Cramer suggested not acting but listening to conference calls. On Monday, Cramer would pay attention to TXN which is the "crystal ball into the world of technology." Although a good quarter might reverse the tech slump, Cramer doubts that it will. Coach's call on Tuesday will give insight into the world of high-end, luxury stocks, and Cramer also suggested checking out UTX's statements. On Wednesday, Cramer would listen to NSC and to FFIV for information about high-growth, high-multiple stocks. Cramer calls AT &T a "terrific company" and on Thursday's call, he would listen to what they have to say about wireless and cost synergies with the closing of their Bell South deal. On Thursday, Cramer is interested to find out if Legg Mason has gotten its act together after the lack of integration of funds they acquired from Smith Barney, and to see what MSFT, one of tech's few sole survivors, has to say about XBox 360, Zune and Vista.
CEO Interview: Steve Ells, Chipotle Mexican Grill (NYSE: CMG - News):
When Cramer asked Steve Ells if CMG could continue its "fabulous" performance, Ells commented that "customers are going crazy" for the restaurants because of their food, service and atmosphere. "We are opening up 95 to 105 new stores because we find great real estate and managers for that number." Responding to Cramer's question about rising food costs, Ells said that he doesn't see an immediate effect; "we're going to keep our eyes on it."
Related: Andrew Corn calls CMG "A distinguished spin-off with great potential."

Labels: CMG, COH, ED, FFIV, Jim Cramer, LM, Mad Money, MSFT, NSC, SO, T, TXN, UTX