Madd Money

Trust Hewlett-Packard

design — Thu, 20 Nov 2008 03:08:42 +0000

Jim Cramer told investors on Wednesday’s “Mad Money” TV show that if they are looking for a solid tech stock that works in hard times, they should look at Hewlett-Packard (HPQ), a stock he holds in his charitable trust. Cramer explained that HPQ is bucking the disappointing earnings trend seen in tech names like Cisco Systems (CSCO), Corning (GLW) and Nokia (NOK) for the following three reasons: HP has great management that is aggressively cutting costs and taking market share, the company is seeing huge savings from the the acquisition of EDS and because HP’s competitors, such as Dell (DELL), are having big problems. Cramer said HP is one of the safest and most defensive names in tech right now. Join the fastest growing community of small cap investors at Stockhideout.com

Jim Cramer’s Am I Diversified

design — Thu, 20 Nov 2008 02:52:10 +0000

The first caller was invested in the following stocks: Walmart (WMT), General Electric (GE), Waste Management (WMI), Union Pacific (UNP) and Marvel Entertainment (MVL). Cramer said this portfolio was “perfect diversification.” The second caller’s top holdings were: Textron (TXT), Dupont (DD), XTO Energy (XTO), Qualcomm (QCOM) and Bunge (BG). Cramer blessed this portfolio and said the caller is playing the market well. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com

Jim Cramer’s Lightning Round

design — Thu, 20 Nov 2008 02:44:36 +0000

Bullish
Silver Wheaton (SLW), BP (BP), Chevron (CVX), Marathon Oil (MRO), Kinder Morgan (KMP), Energy Transfer Partners (ETP) and Nucor (NUE).
Bearish
Continental Resources (CLR), Valero Energy (VLO), Suburban Propane Partners (SPH), Kaydon (KDN), Limited Brands (LTD) and AK Steel Holding (AKS). Join the fastest growing community of small cap investors at Stockhideout.com

SSVE Video Chart

design — Thu, 20 Nov 2008 01:10:49 +0000

Here is a daily SSVE video chart

Fast Money Recap

design — Thu, 20 Nov 2008 00:56:11 +0000

Word On The Street
Melissa Lee hosted CNBC “Fast Money” show Wednesday night. She started the show with a discussion of how the market has hit levels not seen before during the current global financial crisis. Jeff Macke said today confirmed that General Motors (GM) CEO Rick Wagoner has no plans for bankruptcy. “He had no plans for an economic downturn, no plans for high oil prices and he had no plans for the recession that we are in today,” he said. Pete Najarian said since the bailout package was introduced, the financials have done nothing but go lower. “There is a big bear in front of us right, and we need to get this thing turned,” he said. Guy Adami told viewers that if the Dow trades to 7800 tomorrow it will not stop next time. He says “we could easily now see a 6-handle on the Dow.”
Financial Talk
Lee moved the conversation towards the financial sector. She pointed out that Citigroup (C) hit its lowest level in over 13 years. Najarian said Citigroup has issues everywhere right now. Adami explained that even the good financial stocks such as JPMorgan Chase (JPM) and U.S. Bancorp (USB) are being sold.
Chart of the Day
The “Chart of the Day” was Goldman Sachs Group (GS), which broke the $60-level. Adami said he would love to defend Goldman but he can’t. He says “the stock is telling you something bad is going on.” Najarian told viewers that Merrill Lynch (MER) had some incredible put activity today. “They were buying the November $10 puts and the December $10 and $7 puts,” he explained. Finerman mentioned that BB&T (BBT), which she is short, received $3.1 billion of TARP money and they paid $1 billion in dividends last year. “That’s ridiculous, that the only string on the TARP money is that they can’t raise the dividend,” she said.
Big Three
Lee switched the discussion to the big three automakers. Macke said the testimony of the big three in front of the House of Representatives was embarrassing. He says “I am short Toyota Motors (TM) which has some meat left on the bone.” Najarian said the other issue is the $40 billion annually the automakers spend on advertising. He pointed out that Google (GOOG) hit a new low and it could be because market is anticipating a major cutback in online ad spending from the big three.
Consumer Sector
Lee pointed out that consumer names took a major beating today. Adami said if you’re looking for a capitulation day, you might have seen it with shares of Target (TGT). Macke said if you think that Target is going to be broken up into a “real estate play,” than just look at the chart of Sears Holdings (SHLD). Najarian mentioned that Best Buy (BBY) saw an enormous amount of put activity today. Adami pointed out that Church & Dwight traded up in the weak tape.
Tech Take
Lee moved the conversation to Microsoft (MSFT), which hit a 10-year low and Yahoo! (YHOO), which hit a 5-year low. Macke mentioned that everyone who had a brain at Yahoo left to go to Google. Najarian said the slowdown online is hitting Yahoo faster than anyone had anticipated.
Dennis Gartman Chat
Strategic investor Dennis Gartman, author of The Gartman Letter joined the traders to discuss the economy. He said we have to be careful about deflation, because we don’t know how far it can go down, plus once it starts everybody’s net worth diminishes. “We can throw as much money at it as we want, but that hasn’t been working,” he said. Gartman told viewers that people are going to start saving more which will create inflation and depression type circumstances. He says “gold has had every reason to go up, but it’s not rallying.” He also mentioned the Forex market is seeing moves in just a few hours that it use to take years to make.
Commercial Crisis
The traders discussed the growing fears that defaults might spike for commercial mortgaged-backed securities. Finerman said the commercial real estate problem is not over by a long-shot. She says “anything that has commercial real estate exposure such as Simon Property Group (SPG), Vornado Realty Trust (VNO), BB&T (BBT) and HCP (HCP) sold off a lot and that’s part of the reason Citigroup sold off.” She told viewers she didn’t cover any of her shorts in the sector. Adami told viewers that commercial-lighting fixture makers such as Philips Electronics (PHG) and Acuity Brands (AYI) might have more room on the downside. Najarian mentioned that traders bought lots of January $23 puts on the iShares Dow Jones US Real Estate ETF (IRY). He says “the bottom has yet to be found.”
Lame Duck Game Plan
Joe Terranova, of Virtus Investment Partners joined the traders to layout his game plan for the rest of the lame duck session. He said right now the market looks like it’s going to fall through 7800. However, Terranvoa sees some fundamental stories that could be winners. He said Exxon Mobil (XOM) and Chevron (CVX) are hanging in and trading at levels attractive levels. He also likes names such as Burlington Northern Santa Fe (BNI) and Walt Disney (DIS). Terranova told viewers he doesn’t want to trade crude oil futures right now. “The problem with ConocoPhillips (COP) is that it has a touch of oil refinery exposure and natural gas exposure,” he said. He says “for whatever reason, Exxon Mobil just isn’t going down.”
Trader Radar
Shares of Royal Caribbean (RCL) were among the most active names on the NYSE Wednesday.
POPS&DROPS
Drops- AstraZeneca (AZN) plunged 12% after the drug maker announced it revised its forecast. Najarian explained that the problem is AstraZeneca has some big generic competition for one of its billion dollar drugs. Freeport McMoRan (FCX) dropped 6% after JPMorgan cut its estimates on the commodity name. Adami says “it’s just not working out on FCX right now.” Capital One (COF) traded down 9%. Finerman explained that Capital One has big credit card exposure and a big auto loan book. She says “neither place is where an investor wants to be right now, short COF.” Royal Caribbean Cruises (RCL) lost 17%. Macke joked “the combination of a bad economy and the revival of pirates was enough to send this thing lower.” Aloca (AA) fell 14% after JPMorgan cut its 2009 estimates for the aluminum maker. Adami said “not good.” Sunoco (SUN) plunged 12% after Deutsche Securities downgrade the stock from hold to sell. Finerman mentioned she is unfortunately the owner of some of this stock.
Final Trade
Adami picked McDonald’s (MCD). Finerman said cover some shorts on the SPDR Trust (SPY). Najarian said Home Depot (HD) and Lowe’s (LOW) have an opportunity to the upside. 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!

Is Cramer Too Negative?

design — Tue, 18 Nov 2008 19:15:40 +0000

“So am I too negative?” Cramer asked viewers of his Monday “Mad Money” TV show. “I don’t think so. Admittedly, stocks have fallen to levels that are amazingly low, but there’s no money out there for takeovers to clean up this mess so the fact that so many stocks have fallen so hard doesn’t matter.” He said the bailouts have kept the economy from completely collapsing, but they still haven’t addressed the real problem of home price deflation. Cramer mentioned the bailouts also haven’t created a single job. He said the failure of General Motors (GM) could break the market like Lehman’s (LEH) failure did. Cramer pointed out that the homebuilders are still building new homes as fast as they can and none of them have gone out of business. Cramer said the only things that would change his mind on the markets are interest rate cuts in China and Europe, or a resolution to the GM crisis. Until then, Cramer said, “there are just too many negatives out there.” 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!

Cramer On Green Stocks

design — Tue, 18 Nov 2008 18:51:57 +0000

Cramer re-evaluated his green stock basket now that crude oil has come down significantly. The green basket includes names such as First Solar (FSLR), Foster Wheeler (FWLT), Shaw Group (SGR), MEMC Technologies (WFR), BorgWarner (BWA), TetraTech (TTEK), OM Group (OMG) and Fuel-Tech (FTEK). Cramer told viewers his green stock basket was created on a trading thesis and not an investment thesis. He expressed shock as to how quickly the green stocks have fallen in recent weeks. He blamed the sharp decline in green stocks on lower crude oil prices and due to forced selling be troubled hedge funds. Cramer said with President-elect Barrack Obama clearly in favor of ethanol, he sees little chance for a comeback for the natural gas alternative or in any of the wind or solar stocks anytime in the near future. Join the fastest growing community of small cap investors at Stockhideout.com

CEO Interview Anadarko Petroleum

design — Tue, 18 Nov 2008 18:30:27 +0000

Cramer spoke with Jim Hackett, chairman and CEO of Anadarko Petroleum (APC) about his company’s prospects and about the state of the natural gas industry. Hackett explained the combination of weakening demand for gas along with some big finds from some onshore drilling projects have pushed natural gas down materially. Hackett said Anadarko is hedged 95% for its production for 2008 and 2009, and 70% of its production for 2010. He told viewers that that natural gas stocks are oversold and will trade up before the commodity and sector recovers. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com

Jim Cramer’s Lightning Round

design — Tue, 18 Nov 2008 18:14:08 +0000

Bullish
Weyerhaeuser (WY), Nordic American Tanker (NAT), Duke Energy (DUK), Molson Coors (TAP), Campbell Soup (CPB) and General Mills (GIS).
Bearish
Aetna (AET), Merrill Lynch (MER), Frontline (FRO), Chicago Bridge & Iron (CBI), Ameren Corp (AEE) and ConAgra Foods (CAG). Join the fastest growing community of small cap investors at Stockhideout.com

Fast Money Recap

design — Tue, 18 Nov 2008 16:45:44 +0000

Word On The Street
Dylan Ratigan hosted CNBC “Fast Money” show Monday night. He started the show with a discussion of how stocks are near new credit crisis lows. Guy Adami said he thought the Dow would have traded above 9,000 today. He says “if the Dow closes below 7,800, we will see 6,000 next.” Tim Seymour said there is no reason to do anything here with so much policy hanging in the balance. He says “Europe and Japan are in recession for the first time since World War II.” Pete Najarian pointed out that the financials haven’t participated in any of the recent market runs. He says “the Financial Select Sector SPDR (XLF) is right on its 52-week lows.”
Short Sales
Karen Finerman told viewers there is more pain to come for financials, so she is short BB&T (BBT), Vornado Realty Trust (VNO) and Simon Property Group (SPG). Najarian mentioned the iShares Dow Jones US Real Estate (IYR) is seeing massive put options activity.
Auto Bailout
Ratigan reported breaking news that the Senate proposed $25 billion in aid similar to the TARP Plan for the auto sector. Seymour explained that this is what the market doesn’t want, when there is no volume and no buyers. Adami said shares of General Motors (GM) are probably worthless regardless of what happens.
Energy Trade
Ratigan asked the traders if there is an investment to be made in the oil complex. Adami said there is no real money to be made in the commodity market. However, he says “look at ConocoPhillips (COP) for a valuation play and a piggyback play off Warren Buffett’s recent stake.” Najarian said Chevron (CVX) and Exxon Mobil (XOM) could have more downside if oil continues to plunge.
Earings Play
Ratigan mentioned that Lowe’s (LOW) beat earnings and traded up 4% in after hours trading. Jon Najarian said he is watching Limited Brands (LMT) for a play on their earnings report.
Commodity Plays
The traders talked about where the opportunity will be in the market when equity investors put money back to work. Adami said the money will go back into a lot of the commodity stocks. He says “the problem is it won’t go back tomorrow or next week, but will probably happen in January.” He likes Agrium (AGU), Potash (POT) and Archer Daniels (ADM).
Kudlow’s Take
The traders spoke with CNBC’s Larry Kudlow about the new auto bailout plan and Barrack Obama’s plans for the future. Kudlow said he doesn’t like the $25 billion bailout for General Motors. He says “General Motors isn’t competitive to Toyota Motor (TM) and Honda Motor (HMC), and I prefer some type of pre-packaged bankruptcy.” Kudlow told viewers the market is disappointed that Obama hasn’t announced who the new Treasury Secretary will be and whether they will raise taxes in 2009. He says “people wanted to be reassured by a moderate to conservative Treasury appointee, and none was fourth coming.”
More Auto
CNBC’s Phil LeBeau joined the traders to discuss the proposed aid for the automakers. LeBeau said it’s his understand that the $25 billion is for the entire auto industry, not just General Motors. He explained that under the plan, there will be no bonuses for executives making over $250,000 a year and the government wants assurances the automakers have a viable business plan for the future.
Trader Radar
Shares of Baidu.com (BIDU) were among the most actively traded stocks on the Nasdaq Monday.
POPS&DROPS
Pops- Las Vegas Sands (LVS) popped 6% after the casino operator completed a $2.1 billion offering of common stock, preferred stock and warrants. Adami said the only problem is that nobody is going to Casinos. Colgate-Palmolive (CL) traded up 1%. Adami mentioned the stock rose off a positive mention in Barron’s over the weekend. Eaton (ETN) rose 2%. Adami says “good company, cheap valuation but probably not the right time to buy it.”
Drops- Abercrombie & Fitch (ANF) fell 13%. Finerman told viewers to “stay away.” Alcoa (AA) dropped 10% on deeper recession concerns. Seymour said it’s a great opportunity to buy this stock. Baidu.com (BIDU) plunged 25% after reports surfaced that said the Chinese search engine might have let unlicensed health clinics buy medical ad keywords on its search engine. Najarian says, “this is the Google (GOOG) of China, and this might be a very interesting opportunity.” Dell (DELL) lost 3% after Merrill Lynch downgraded the stock to neutral. Finerman joked “it’s not that bad for a Nasdaq stock.” Bank of America (BAC) traded down 8% after the banking giant said it raised its stake in China Construction Bank. Seymour said it’s a very good strategic purchase for BAC. United Therapeutics (UTHR) plunged 35% after the company’s oral PAH drug failed in trials.
Final Trade
Seymour picked Aloca (AA). Adami recommended Charles Schwab (SCHW). Najarian selected Home Depot (HD). Finerman likes Rohm and Hass (ROH). 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!