Bearish Calls Monday, July 14th
By admin | July 15, 2008
Encore Wire Corp (WIRE) — “This is a problematic one. They are buyers of copper. I think copper is going much higher. Don’t want to own them. Don’t want a link to residential wiring in a housing crisis.”
Statoil (STO) — “Decline in North Sea oil; they are running out of oil. We want to be in natural gas. This company is losing oil and will lose you money as a stock.
Quest Diagnostics (DGX) — “I don’t like this as much as LH. Swap to that.”
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Bullish Calls Monday, July 14th
By admin | July 15, 2008
Hercules Offshore (HERO) — “My hero! Obvious winner if the president gets his way. Hercules is the right way to play it.”
Airgas (ARG) — “I really like this stock. Fabulous business! A win!”
Laboratory Corp. of America Holding (LH) – “Swap Quest Diagnostics for Laboratory Corp.”
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Today’s Markets 7/11/08
By admin | July 11, 2008
* Asia: Japan’s Nikkei closed down 0.2% to 13,040. Shanghai was down 0.65% to 2,857. Hang Seng closed up 1.7% to 22,185. BSE Sensex was down 3.3% to 13,470.
* Europe at midday: London -0.9%. Paris -1.4%. Frankfurt -1.4%.
* U.S. futures at 7:15: Dow -0.8%. S&P -1%. Nasdaq -0.8%. Crude +2.5% to $145.16. Gold +0.8% to $949.30.
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Wachovia Had high Hopes
By admin | July 11, 2008
Wachovia (WB) New CEO Bob Steel
Cramer had high praise for Treasury Under-Secretary Bob Steel, who resigned his position to head the ailing Wachovia Bank. Steel knows what he’s doing and understands what is needed. He called Steel “one of the great behind the scenes players” and one of the integral players behind the recent JP Morgan Chase and Bear Stearns merger.
Cramer said the turn-around of Wachovia will take time, and he still would not be a buyer of the bank at this time.
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Bearish calls July 11th 2008
By admin | July 11, 2008
* Stillwater Mining (SWC) – “Too aggressive. Don’t buy.”
* Under Armour (UA) – “Extremely negative. Better not to own. I can’t stand it.”
* Salesforce.com (CRM) – “Fabulous CEO but tech is so awful. Stick with it.”
* United Parcel Service (UPS) – “A fabulous company but cannot own it. Oil out of control.”
* FedEx (FDX)
* Rambus (RMBS) – “Techs are in trouble. Not touching that stock. Don’t stick with NVDA, AMD or even CSCO.”
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Bullish calls For july 11th 2008
By admin | July 11, 2008
* Agnico-Eagle Mines (AEM) - “Buy instead of Stillwater Mining (SWC).”
* Eaton (ETN) - “Great American manufacturing company. The stock is being thrown away. Buy aggressively”
* Oilsands Quest (BQI) - “Still high on the stock but natural gas is back. Stick with this one.”
* Ferrellgas Partners (FGP) - “Real good. Kind of stock I like. Good dividends; good yield. A winner; stick with it.”
* Nike (NKE) - “A favorite and down to $55.”
* Motorola (MOT) – “Don’t give up. It is worth much more than $6. Good speculative buy.”
* CGV Veritas (CGV) – “You gotta buy more. It is unbelievable. It is the only oil service company in the globe at a 52-week low.”
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Recap of Jim Cramer’s comments on Stop Trading Wednesday July 9
By admin | July 10, 2008
Bank of America (BAC), Fannie Mae (FNM), Freddie Mac (FRE): After a sluggish close of the trading day, Cramer blamed financials and says he is worried about Bank of America. He called on the Presidential candidates to discuss a plan of action in case a major bank fails. While financials affect other sectors, Cramer doesn’t think the slowing of this sector should lead one to be bearish on stocks in general, and he looks to safer areas such as healthcare. Cramer doesn’t think a dramatic fall in oil will be great for stocks, since a lot of the S&P 500 is levered to oil. He added Fannie Mae and Freddie Mac are “technically insolvent.”
Cisco (CSCO), Seagate (STX), Oracle (ORCL), CVS (CVS), Rite Aid (RAD): People who thought tech was a safe haven are being disappointed as Cisco and Seagate are down and Oracle is in the House of Pain. Bottom-fishing in tech, says Cramer, is not a good idea. In retail, there are also very few good ideas, but Cramer would look at CVS after a bearish report from Rite Aid; “as Rite-Aid breaks down, CVS is the winner,” Cramer said.
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Today’s Markets 7/09/08
By admin | July 9, 2008
* Asia markets climbed Wednesday. Nikkei +0.15% to close at 13,052. Hang Seng +2.8% to 21,806. Shanghai +3.75% to 2,921. BSE +4.6% to 13,964.
* In Europe, markets are broadly higher at midday. London +1.2%. Paris +1%. Frankfurt +0.95%.
* Futures at 7:15 are just around where they closed yesterday. Dow -0.02%. S&P -0.18%. Nasdaq -0.08%.
* Crude +1.4% to $137.90. Gold -0.15% to $922.
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Whats Happening On Wall Street 7/09/08
By admin | July 9, 2008
# YouTube ad revenue on pause. Generating revenue from YouTube is proving a challenge for Google (GOOG), as big advertisers are reluctant to commit to major ad deals over fears their products will be showcased next to low-grade amateur videos. Sources say 2008 revenue of $200M is short of the company’s expectations. Outside of YouTube, GOOG is struggling to unify an unwieldy 24 separate internal systems for helping advertisers identify useful search terms.
# Bernanke signals Fed will continue to prop up markets. Fed Chairman Ben Bernanke said Tuesday the problems plaguing housing and financial markets will persist through 2009 - which may lead to the Fed extending its novel decision to lend money to I-banks into the coming year. Bernanke also urged Congress to give the Fed broader authority to monitor the financial markets.
# VMware plunges on CEO firing, warning. VMware (VMW) fired CEO and co-founder Diane Greene, to be replaced by Microsoft (MSFT) veteran Paul Maritz. Sources say Greene clashed with EMC (EMC) bigwigs (EMC owns most of VMware) over costs and VMware’s ability to deal with EMC competitors like IBM (IBM) and H-P (HPQ). VMW also lowered its 2008 sales estimate for the second time this year, warning they would be modestly lower than a previous 50% growth estimate. Shares were pummeled -24.4%. Bulls hope new management will pursue market share in the emerging cloud-computing market more aggressively.
# Iran getting testy. Iran says it fired nine long- and medium-range missiles during war games meant as a response to U.S. and Israeli threats. In overnight trading, crude futures are up 1.4$ to $137.90.
# InBev, BUD take off the gloves. InBev filed a proposal with the SEC that would have Anheuser-Busch (BUD) shareholders voting on a motion to replace all 13 board members. Anheuser Busch (BUD) fired back, saying it is suing InBev for an ‘illegal scheme’ to acquire A-B at a bargain price. A-B says InBev misled shareholders by calling its financing ‘fully committed’ (BUD contends it is ‘rife with conditions’) and by claiming St. Louis would be the combo’s global headquarters (BUD maintains InBev can’t manage its Cuban operations from there).
# Tough H1 for hedge funds. Hedge funds fell by an average 0.7% in June. Their YTD average loss of 0.75% is the $1.9T industry’s worst on record. $16.5B new money came on board in Q1, down from $30.4B in the previous quarter; investors are showing less patience with underperforming funds, but are stopping short of pulling their assets back into cash. New hedge fund startups fell by 50%.
# Dimon discourse. In a much-publicized speech, always quotable JPMorgan (JPM) CEO Jamie Dimon blamed banks for much of the current crisis, including his own. But don’t blame the beancounters, he urged: “Mark-to-market will end up being far more accurate in terms of recognizing losses than not,” countering recent remarks by Blackstone (BX) CEO Stephen Schwarzman. On the weak dollar: “You can’t run a trade deficit for eight years and not think you’re going to have a weak dollar.” Dimon also said he agreed with a recent report which alleges CNBC’s reporting could have been partially responsible for Bear Stearns’ downfall - a point CNBC anchor Charlie Gasparino debated hotly.
# Microsoft fights back. In the face of Apple’s (AAPL) successful ‘Get A Mac’ ad campaign, Microsoft is preparing its own campaign touting Windows Vista.
# Pending home sales fell another 4.7% in May; they’re down 14% from a year ago. “The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy,” NAR chief economist Lawrence Yun said. The worse-than-expected number suggests even bigger bargains may await those with patience.
# Wholesale inventories rose, but according to Credit Suisse “There isn’t an excess supply condition that would be worrisome for the outlook. It looks like the wholesale sector is bearing pretty well.”
# The EIA said U.S. crude will cost $127/barrel this year - up 4.3% from a previous estimate - and $133 in 2009. It sees gasoline at $4.06/gallon next year, down from $4.21 and $4.23 in Q3 and Q4.
# More bad news for newspapers. The Chicago Tribune is cutting 80 of its 580 newsroom staffers.
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Recession Session With Cramer
By admin | July 8, 2008
Recession Season: Genentech (DNA), Amgen (AMGN), Heinz (HNZ), General Mills (GIS)
If Wall Street is a brutal fashion show in which the “styles” change day to day, export-oriented stocks are now out of style and recession season has begun, said Cramer. Earnings expectations are down 11% from last year and Cramer would sell on any gain to buy defensive stocks. He compared the current situation to that of 1990-91 when the S&P 500 dropped 16% because of financials, while biotechs like Genentech and Amgen shone. The rules of what makes a good defensive stock have changed, and food companies, apart from Heinz and General Mills, are not working because of problems with rising raw costs. “If you want to get through the next three months, you need secular growth stocks with pricing power and no problems with raw costs.”
Genentech (DNA)
Cramer says healthcare is the safest place to be right now and his favorite company in the sector is Genentech, which produces a “wonder drug” for cancer Avastin. The treatment can be used for a variety of cancers and a story in the New York Times criticizing the company for producing expensive drugs should create a buying opportunity for DNA. Cramer is not concerned about this negative press, because even in a recession people will pay up for life-saving treatments. Not only is Avastin a good drug, but Cramer also praised DNA’s pipeline. He expects the stock to rise from $76 to $88 and even higher.
CEO Interview: Larry Lee, RAM Energy (RAME)
Natural gas has been hot, perhaps a bit too hot, according to some, but Larry Lee says with oil continuing its rise, natural gas also has a good chance of going higher. Natural gas is the best fuel alternative said Lee, noting the U.S. has a healthy supply of it. Although land speculation in the shale areas may not be a good sign, Lee says the natural gas story is here to stay. Cramer agrees and likes natural gas long term, but would use caution.
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