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Cramer’s Mad Money Recap 7/29/05 - Load up on Terex

Once again, Cramer couldn’t wait till Monday to announce his Stock of the Week, Terex (TEX). Terex is selling at eight times next year’s earnings, while Caterpillar (CAT) sells at 13 times next year’s earnings. With a highway bill on the way, Cramer thinks it makes sense to buy the stock now.

Though Whole Foods Market’s (WFMI) had a big run on Friday, after blowout third-quarter results delivered on Thursday night, Cramer thinks the stock still has more upside.

If you want to play the hurricanes and the reconstruction that takes place afterward, you should buy Lowe’s (LOW).

Cramer urged viewers to buy Best Buy (BBY) on the downgrade it received from Raymond James on Friday.

Cramer hears talk that General Electric (GE) and Quality Systems (QSII) and even the U.S. government will eventually pull Allscripts down. He doesn’t agree and says it is time to do a “back up the truck” on Allscripts Healthcare Solutions (MDRX).

The Lightning Round

Bullish - Revlon (REV), Chico’s FAS (CHS), Microtune (TUNE), Denbury Resources (DNR), Energy Conversion Devices (ENER), Oil States International (OIS), Guitar Center (GTRC), Occidental Petroleum (OXY), BanColombia (CIB), Jones Lang (JLL), and Arris Group (ARRS).

Bearish - Six Flags (PKS), Winnebago Industries (WGO), Gateway (GTW), QLT (QLTI), American Capital Strategies (ACAS), Companhia Vale do Rio Doce (RIO), Ixia (XXIA), First Bancorp (FBP), First Data (FDC), Sunstone Hotel Investors (SHO), Calgon Carbon (CCC), and Constellation Energy (CEG).

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It was a day of losses for the U.S. stock market, due to a report of second-quarter gross domestic product of 3.4 percent, which fell short of investors’ expectations. The Dow closed at 10,640.91, after falling 64.64 points. Besides, the Nasdaq closed at 2,184.83, after falling13.61 points. Meanwhile, the S&P fell 9.54 points, to close at 1,234.18.

Crude futures this Friday closed above $60 per barrel for the first time in two weeks, rising 63 cents, to close at $60.57 a barrel, lifted by supply and production concerns linked to refinery fires. Crude for September delivery traded as high as $61.05 a barrel on the New York Mercantile Exchange, but it closed at $60.57, which shows an increase of 63 cents.

Two of the biggest losers in the S&P were financial services, such as Citigroup, and Wells Fargo. Citigroup, the largest financial services company, lost 36 cents, to close at $43.50. Wells Fargo, the leading U.S home-equity lender, declined 60 cents, to close at $61.34.

On the other hand, companies that reported positive earnings included Whole Foods Market Inc., and MetLife Inc. Whole Foods rallied $14.19 to close at $136.51. According to the first U.S natural-foods grocer, profit last quarter climbed to 60 cents per share from 48 cents last year. MetLife rose $1.08 to close at $49.14. The company said that second-quarter profit excluding some items was $1.17 per share, which exceeded analysts’ expectations.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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Cramer’s Mad Money Recap 7/28/05 - Put the X on Exxon

Jim Cramer said you shouldn’t own Exxon Mobil (XOM) or Royal Dutch Shell (RD). Investors should buy Chesapeake Energy (CHK) and Southwestern Energy (SWN). Between Chesapeake and Southwestern and Exxon Mobil “it’s growth vs. no growth,” Cramer said.

Smith & Wesson (SWB) and Sturm Ruger (RGR) could rise 20% to 25% after the Senate passes a new bill that helps these gunmakers immensely.

Herb Greenberg warned Cramer that Intuitive Surgical (ISRG) has risks. Cramer advised investors to ring the register. Greenberg also warned about FoxHollow Technologies (FOXH) and Stereotaxis (STXS).

Skype Killing the Land Line Companies

Cramer issued a sell immediately on Verizon (VZ), SBC Communications (SBC), BellSouth (BLS) and Qwest (Q). Skype is a free software program that allows consumers to call anyone else who also has the Skype software program installed for free. Consumers have downloaded the Skype program more than 141 million times and Cramer said he wants you out of these land-line stocks before it is too late.

The Lightning Round

Bullish - Caterpillar (CAT), DayStar Technologies (DSTI), LSI Logic (LSI), Cheesecake Factory (CAKE), Medco Health (MHS), Cognizant Technology Solutions (CTSH), Vulcan Materials (VMC), Marshall & Ilsley (MI), LandAmerica Financial Group (LFG), Nabors Industries (NBR), Capital One Financial (COF), American Express (AXP), Martha Stewart Living Omnimedia (MSO), and Sepracor (SEPR).

Bearish - Akamai Technologies (AKAM), Molex (MOLX), Eyetech Pharmaceuticals (EYET), Ionatron (IOTN), Diebold (DBD), American Italian Pasta (PLB), Affiliated Computer Services, Belo (BLC), Mentor (MNT), Discovery Labs (DSCO), DaimlerChrysler (DCX), EMC (EMC), and Vasco Data Security International (VDSI).

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Thanks to companies, such as Starbucks Corp., and others that released their annual profit forecasts and earnings, the Nasdaq and the S&P reached their four-year high. The Dow, which has also gained an average of 4.2 percent in July, closed at 10,705.55, after rising 68.46 points. Besides, the Nasdaq rose 12.22 points, to close at 2,198.44. Meanwhile, the S&P rose 6.93 points, to close at 1,243.72.

Starbucks climbed $2.33 to close at $52.68. The company also expects the per share profit of this year to be about $1.19 to $1.20, which is higher than previous forecasts of $1.17 to $1.19. Besides, Express Scripts Inc., which is the third biggest U.S. pharmacy benefit manager, said that it will earn $2.37 to $2.42 per share in 2005. Among other companies that posted gains, UnitedHealth Group Inc., which is the second medical insurer provider, added $1.50 to close at $52.92. In general, health care shares rallied 0.9 percent today.

Although the price of oil rallied, investors chose to look at earnings of companies as a better indicator for the outlook of the economy. Crude for September delivery closed at $59.95, which shows an increase of 84 cents. The increase in price was caused after news reported that Murphy Oil Refinery shut a diesel hydrotreater because of a fire, although there were not really great damages. Investors are concerned that in the following weeks, refineries will not be able to meet demand of consumers.

Daimler-Chrysler’s shares rallied after Chief Executive Officer Juergen Schrempp announced that he would not longer manage the company. Dieter Zetsche will replace Schrempp. Daimler-Chrysler’s stock increased $4.29 to close at $48.26. Besides, Daimler-Chrysler reported a 28 percent jump in second-quarter profits, due to a high demand for new cars and trucks of Chrysler, which offset weak sales from Mercedes-Benz business.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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Cramer’s Mad Money Recap 7/27/05 - Boeing Boeing

Boeing (BA) beat the estimates and raised guidance, so Cramer recommended companies that make the parts that Boeing needs: BE Aerospace (BEAV), Honeywell (HON), United Technologies (UTX), SAF, a Paris company, Rolls Royce, on the London Stock Exchange, Moog (MOGa), Ducommun (DCO); Woodward Governor (WGOVh), Parker Hannifin (PH), and Triumph Group (TGI).

BE Aerospace, Honeywell, and United Technologies are the “must-own” names in the group.

Companies like Verizon (VZ) and Sprint (FON) must add antennas to the cell-phone towers. Global Signal (GSL), Crown Castle (CCI), American Tower (AMT) and SpectraSite (SSI) are the names to look at.

Cramer named Global Signal as “best of breed.”

Cramer spoke with Boyd Gaming (BYD) CFO Ellis Landau on the telephone and said that he believes “the stock is right for a buy here” with the stock down $4.

Lightning Round

Bullish - Schering-Plough (SGP), Grainger (GWW), Corning (GLW), Apple Computer (AAPL), Engineered Support Systems (EASI), Chicago Mercantile (CME), Wisconsin Energy (WEC), Iris International (IRIS), Leucadia National (LUK), Great Plains Energy (GXP), Biogen Idec (BIIB), Electronic Arts (ERTS), Seagate (STX), BEA Systems (BEAS), Urban Outfitters (URBN), Garmin (GRMN), Sirf Technology (SIRF), and Churchill Downs (CHDN).

Bearish- Anheuser-Busch (BUD), Skyworks Solutions (SWKS), Charles & Colvard (CTHR), Las Vegas Sands (LVS:NYSE - news - research), Miva (MIVA), Netlogic Microsystems (NETL), IBM (IBM), ID Biomedical (IDBE), Silicon Storage Technology (SSTI), Glenayre Technologies (GEMS), Solectron (SLR), and Spectrum Brands (SPC).

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It was a day of good news for the U.S stock market. The Federal Reserve’s “beige book” indicated low inflation, which eased investors’ worries about the outlook of the economy. The Dow rose 57.32 points, to close at 10,637.09. Besides, the Nasdaq rose 10.23 points, to close at 2,186.22. Meanwhile, the S&P closed at 1,236.79, after rising 5.63 points.

The Federal Reserve’s “beige book” survey of the central bank’s 12 districts showed that the economy improved in the June through mid-July period. Besides, durable rose 1.4 percent in June versus forecasts of 1 percent, and orders rose 6.4 percent in May. Another report showed that new home sales sold at a record 1.37 million annualized rate in June. However, U.S light crude oil for September delivery closed at $59.11 a barrel on the New York Mercantile Exchange, after falling 9 cents.

Amazon.com rose $5.91, or 16 percent, to close at $43.65. Besides, second-quarter sales climbed 26 percent, to close at $1.75 billion. This rise in sales was caused by discounts and increased selling by other merchants on Amazon’s site. Besides, Boeing helped the profits in the Dow. Boeing finished session up 0.8 percent, to close at $66.85, after the company increased its estimate for the rest of the year. Boeing’s revenue rose 15 percent in the quarter, climbing nearly $15.03 billion.

Starbucks Corp. also reported sharply higher profits today. After the U.S stock market closed, Starbucks announced that it earned $126 million, or 31 cents per share, in its fiscal third quarter, which shows a 29 percent increase over the $98 million and 24 cents earned last year. Not only that, but the company’s costs of sales decreased to 40.6 percent.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

Today, it was a mixed day for the market. The Dow rose 16.71 points, to close at 10,579.77. However, the Nasdaq rose 9.25 points, to close at 2,175.99. And, the S&P increased 2.13 points, to close at 1,231.16. The decline in the U.S stock market was probably caused by the negative impact of the news about the July consumer-confidence results.

Also, shares of DuPont Co. were responsible to drag the Dow down, due to a lower-than-expected 2005 profit forecast. Nevertheless, Texas Instruments added $1.70 to $32.30, which surpassed any forecasts. The company also raised its quarterly dividend 20 percent to 3 cents per share, and also announced that it will buy back an additional $2 billion of stock.

During after-hours trading, shares of Amazon.com rose to $41.50, after the company announced that it earned 12 cents per share on quarterly sales that rose to $1.75 billion. These results exceeded analysts’ forecasts that expected the company to earn 10 cents per share. However, Infospace Inc. shares fell about 34 percent to close at $22.98, after the company announced that its second quarter profit climbed 21 percent on its revenue, but cut its outlook for the year, and fell short of expectations.

Crude-oil futures closed higher today by 20 cents to close at $59.20 a barrel on the New York Mercantile Exchange. Also, heating oil closed at $1.6958 a gallon, which shows a decrease of 0.29 cents. And, August unleaded gasoline lost 1.06 cents to end at $1.6958 a gallon. The Energy Department said will release petroleum supply data covering the week ended July 22 tomorrow morning.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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U.S. stocks finished today’s session at low levels. The Dow fell 54.70 points, to close at 10,596.48. Besides, the Nasdaq fell 13 points, to close at 2,166.74. Meanwhile, the S&P closed at 1,229.03, after falling 4.65 points.

According to the National Association of Realtors, sales of previously owned homes rose 2.7 percent in June to a record seasonally adjusted annual rate of 7.33 million. Also, the inventory of unsold homes rose 3.8 percent to close at 2.653 million, which is a 4.3 month supply at the current sales rate. And, the median sales price of a home rose 14.7 percent year-over-year to a record $219,000. This price represents the fastest appreciation since November 1980.

Crude for September delivery rose 37 cents to close at $59.02 a barrel on the New York Mercantile Exchange. Crude prices climbed 3 percent on Friday due to investors’ concerns about whether China’s yuan revaluation would lift the country’s demand for oil. However, China’s relaxation of the yuan’s decade-old peg to the dollar had allowed the Chinese currency to appreciate by about 2 percent against the greenback. Therefore, the reevaluation made the price of crude 2 percent cheaper for Chinese refiners.

Teva Pharmaceuticals Ltd. announced that it would pay $7.4 billion to acquire Ivax Corp. After the news, shares of Ivax closed up 10 percent to close at $25.17. On the other hand, Teva was slightly up 0.2 percent, to close at $31.23. This acquisition would mean that Teva will be adding Ivax’s expanding line of proprietary drugs for such illnesses as cancer, asthma, and multiple sclerosis. The deal is expected to close by early next year, and requires antitrust clearance by U.S. and European regulators.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

More exclusive trading recommendations from world record-holder Dan Zanger and The Zanger Report - free 3-week trial. (No credit card needed.)

click to view chart full size