Archive for December 2008

expandCramer Likes Eli Lily

Jim Cramer told viewers to buy Eli Lily (LLY).

expandJim Cramer’s Lightning Round

Bullish
BP (BP), Gilead Sciences (GILD), Campbell Soup (CPB), Yahoo! (YHOO) and ConocoPhillips (COP).
Bearish
Genentech (DNA), Harley Davidson (HOG), FMC Technologies (FTI) and Applied Materials (AMAT). Join the fastest growing community of small cap investors at Stockhideout.com

expandFast Money Recap

POPS&DROPS

Pops- Distribucion Y Servicio D&S SA (DYS) soared 25%. Chile’s biggest grocer surged after Wal-Mart made a $2.7 billion bid for the company. Standard Pacific (SPF) traded up 9% after news broke that the homebuilder said it is in preliminary discussions with bankrupt homebuilder Tousa Inc. Nomura Holdings (NMR) popped 5% after Barron’s mentioned the company positively over the weekend. Palm (PALM) ripped higher by 22% after the Treo maker received a capital infusion of $100 million from Elevation Partners LP.

Drops-Simon Property Group (SPG) fell 5%. Gartman said right now is not a good time to  be in the business of shopping malls.  iShares Russel 2000 Index ETF (IWM) lost 3%. Finerman mentioned that when the market is down a lot these things tend to under-preform. Walgreens (WAG) dropped 5% after the drug store reported an 11% drop in first-quarter profits. Adami thinks Walgreens is opening too many stores.

Trader Radar
Shares of Walgreen’s (WAG) were among the most active names on the NYSE Monday.
Final Trade
Seymour said get long PowerShares DB Crude Oil Double (DXO). Adami picked Target (TGT) for a buy. Finerman told viewers to get long retail in general, but only those with good balance sheets. Gartman recommended buying steel stocks. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

expandCramer’s Game Plan – Buy Cheap-Oil Stocks

“Cheap oil will be the dominant theme in the coming week,” Cramer said on Friday’s “Mad Money” TV show. He told viewers to buy the stocks that benefit most from these low prices. Cramer pointed out that positive earnings news and upbeat talk from executives at companies like Costco (COST), Darden Restaurants (DRI) and Research In Motion (RIMM) shows that consumers are spending some of the money they are saving off of lower gas and home heating costs. Cramer said that his favorite picks for the current trend in lower gas prices are Wal-Mart (WMT) and Panera Bread (PNRA). He also mentioned that both stocks could work for the rest of 2008 because these names are up year-to-date, which means tax-loss selling won’t motivate investors to sell their WMT or PNRA shares. Both stocks could be added to the portfolios of money managers who want to dress up their books, and show investors they were invested in these winners. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

expandSpeculative Play – Sequenom

Cramer highlighted genetic testing company Sequenom (SQNM) as his speculative stock pick that could reap big returns for investors. Right now the company isn’t profitable, but if it can bring prenatal genetic-testing products to the market it could be a big hit. Sequenom is currently working on a non-invasive test for chromosomal abnormalities like Downs Syndrome and other genetic disorders. Presently testing for such diseases is done through amniocentesis and chorionic villus sampling, both which require sticking a needle into the womb – which could put the mother at risk of a miscarriage. Sequenom’s test, SEQureDx, captures fetal cells in the mother’s blood and carries no risk to the mother or baby. A recent study showed that SEQureDx had no false positives and a 99.1% detection rate for Down Syndrome. Cramer explained the new test is a big break through because it allows for parents to test for Downs Syndrome in 12 weeks gestation instead of the current 20 weeks. The company is predicting sales could hit $1.2 billion in the U.S. and $3 billion to $5 billion globally. Also, the new test doesn’t need pre-market FDA approval, because its a laboratory development test, which doesn’t fall under FDA pre-market review. “Sequenom will release more study data on Jan. 31 at the Society for Maternal Medicine Meeting in San Diego. If those numbers are as good as SEQureDx’s study, the stock could really move,” Cramer said. He also likes the stock for a potential takeover play if the company’s trial data continues to show strong results. Cramer told viewers not to rush in the stock, but to take their time and do the required homework. Join the fastest growing community of small cap investors at Stockhideout.com

expandCramer’s Oil Plan

Jim Cramer has a plan on how the U.S. can never again have to deal with $4 gasoline. Cramer thinks Barack Obama should build storage facilities, like tankers and tanks (a second strategic oil reserve) and buy a large amount of oil. This would allow the U.S. to buy and store millions of additional barrels of oil at today’s bargain basement prices. “Let’s face it, $34 crude just isn’t going to last. So the new president needs to take advantage of oil’s tremendous decline and buy as much of the commodity as the U.S. can hold,” he said. Cramer explained that if Obama did an oil storage build-out it would create new business for companies such as Chicago Bridge & Iron (CBI), Jacobs Engineering (JEC) and Fluor (FLR). He thinks a new build-out would allow Washington to reduce the price of oil should the cost per barrel skyrocket again. Join the fastest growing community of small cap investors at Stockhideout.com

expandJim Cramer’s Lightning Round

Bullish
ICx Technologies (ICXT), Ultra Petroleum (UPL) and Corning (GLW).
Bearish
Petrohawk Energy (HK). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

expandFast Money Recap

POPS&DROPS
POPS- Celgene (CELG) jumped 8%. Najarian said he likes the biotech sector for 2009. Goldman Sachs Group (GS) soared 18%. Najarian said the stock has been beaten-up and this is an opportunity for shares to go higher. Honeywell International (HON) surged 13% after the company said 2009 profits will be in line with Wall Street estimates. Terranova explained that the market reward this stock because the company is focused on paying down debt.
DROPS- Apple (AAPL) fell 9% after CEO Steve Jobs said he won’t present at the Macworld Expo next month. Karabell explained that Apple trades in a narrow range and its still there. Chevron (CVX) dropped 10%. Terranova said buy CVX with a stop at $68. Russia ETF (RSX) lost 7%. Seymour said, “The biggest problem with Russia is their politics. Valuations are great, but I do think there will be more pressure.” General Electric (GE) dipped 4% after S&P cut its outlook for the firm citing issues over cash flow and funding for its finance unit. Karabell said S&P is a little bit late to the party. HSBC Holdings (HBC) plunged 17% after S&P revised its outlook on the banking giant to negative from stable. Seymour said HSBC is outperforming the rest of the sector and he likes their Asia exposure.
Trader Radar
Shares of Carmax (KMX) were among the most active names on the NYSE Friday.
Final Trade
Seymour said get long oil with PowerShares DB Crude Oil Double Long (DXO). Terranova told viewers to take profits in PowerShares DB US Dollar Index Bullish (UUP). Karabell said investors should get long SPDR S&P Semiconductor (XSD) for a play on the semiconductor stocks going higher. Najarian recommended The India Fund (IFN). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

expandJim Cramer’s Stop Trading – Buy CAT

Jim Cramer told viewers of Friday’s “Stop Trading!” segment on CNBC that his best Obama plays are the machinery stocks like Caterpillar (CAT). Cramer said that companies like CAT that make the equipment that is required for an infrastructure build-out should be the top plays off the Obama stimulus plan. He also likes CAT for its high yield. “The bottom is in for these stocks,” he said. He pointed out that CAT pre-announced worse-than-expected earnings, but that didn’t seem to hurt CAT or its cohorts in the machinery sector. Steel stocks, however, should be avoided according to Cramer. He explained that the steel sector has risen too much off Obama’s stimulus plans. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com

expandCramer On Chemicals – PPG

“Chemical companies are the biggest beneficiaries of cheaper oil,” Jim Cramer told fans of his “Mad Money” TV show Thursday. He told viewers that they should look to put their money in the sector right now. Cramer explained that the bulk of a chemical company’s raw costs come from oil and petroleum-based products. With those raw costs coming down and now a weak dollar in play, the chemical stocks could be in the sweet spot. Cramer said he prefers PPG (PPG) over Dow Chemical (DOW) and DuPont (DD). He mentioned that Dow has 10% exposure to struggling auto industry, while PPG has only 4%. Commodity and specialty chemicals combined make up just over 50% of PPG’s growth in the third-quarter. Plus, PPG also controls 18% of the market for prescription-glasses lenses and the company is a big player in the performance coating business for planes, ships, solar cells and windmills. Cramer said PPG’s 4.6% dividend looks safer than Dow or DuPont, because the company earns more than double its payout. Also, PPG is the only one that raised its dividend this year. On the other hand, Dow Chemical has 30% of their earnings exposed to the downside in the commodities cycle. Cramer also pointed out that Dow paid too much for its buyout of Roman & Hass, and the company now can’t guarantee its earnings. Cramer thinks Dow is a well run company, but there is just too much risk to their dividend and downside to the stock for him to recommended it. The obvious choice for Cramer is PPG. Join the fastest growing community of small cap investors at Stockhideout.com