BloggingStocks

Cramer on BloggingStocks: Autos, aerospace are down for the count

Jim Cramer — 2008-06-26T09:30:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, General Motors (GM), Market matters, Citigroup Inc. (C), Johnson Controls (JCI), Honeywell Intl (HON), United Technologies (UTX), Cramer on BloggingStocks

From TheStreet.com Network

TheStreet.com's Jim Cramer says recent downgrades are killing whole industries, and they're coming at a terrible time.

You can't lose autos and aerospace. Yet that's what's happening. The devastating aerospace downgrade by Goldman yesterday had pin action galore, wrecking everything from United Tech (NYSE: UTX) (Cramer's Take) and Parker-Hannifin (NYSE: PH) (Cramer's Take) to BE Aerospace (NASDAQ: BEAV) (Cramer's Take). It took the whole frame down with it and made everything toxic. And it happens at a terrible time. It isn't like Honeywell (NYSE: HON) (Cramer's Take), which with a few days left in the quarter can come out defending itself. Goldman rolled a perfect strike.

And now the bowlers are back for more with an equally devastating "sell everything" call based on GM (NYSE: GM) (Cramer's Take). Once again it is seamless: Lear (NYSE: LEA) (Cramer's Take) and Tenneco (NYSE: TEN) (Cramer's Take) get jettisoned too, but you know that Visteon (NYSE: VC) (Cramer's Take) and American Axle (NYSE: AXL) (Cramer's Take) and Johnson Controls (NYSE: JCI) (Cramer's Take) and BorgWarner (NYSE: BWA) (Cramer's Take) -- the good ones! -- go down with the car.

Mind you, I am not even counting the Citigroup (NYSE: C) (Cramer's Take) conviction sell, something about which I have had conviction for ages, ever since it became clear that the board was letting Chuck Prince destroy the franchise.

In each of these big group downgrades, there were analysts holding on to one or two in the group or actually believing that things will be fine -- a la the Fed. But we know otherwise.

I always thought this market would have a bias down if it lost banking, homebuilding, autos and retail. But if aerospace breaks down again and the brokers actually react to this downgrade -- there are only a couple of buys left on the Street -- then we will drop that next 5% that I was looking for sooner rather than later.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Goldman.

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Honeywell has an answer for high energy prices

Joseph Lazzaro — 2008-05-28T10:52:00+00:00

Filed under: Honeywell Intl (HON), Stocks to Buy

Readers of this space know that my investment bias is toward large-cap companies with demonstrated business models that have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Honeywell is worth a review.

Honeywell (NYSE: HON) is one of the world's leading automation / control manufacturers for heating, air conditioning, ventilation systems and a key aerospace contractor. Further, Honeywell has the diversity Wall Street likes -- in this case, business diversity within a company.

Thermostats and aircraft maintenance would seem like business lines at opposite ends of the spectrum, but they are at Honeywell's core, and they speak to the company's strength.

Analysts like HON's aerospace division (36% of revenue), which manufactures cockpit controls, power generation equipment and wheels/bakes for commercial/military aircraft. The division also makes jet engines for regional/business jet manufacturers.

Further, analysts really like HON's automation/control division (35% of revenue), which makes home/office climate control equipment. Analysts see solid demand for HON's next-generation, energy-reducing controls, as businesses and homeowner re-emphasize energy efficiency and upgrade heating / cooling systems, due to high energy prices. The Reuters F2008/F2009 EPS consensus estimates for HON are $3.79/$4.30.

The risks? Along with the company's skilled labor costs, analysts are keeping an eye on HON's component and raw material costs, as well as on global economic growth, due to the company's above-average sensitivity to the global economic cycle.

The First Call mean rating for HON is: Buy [16 firms]. Mean 2008 target: $67 [high: $72, low: $62].

Stock Analysis: Honeywell is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from HON's shares. Sell / Stop Loss: $48.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

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Perini Corporation (PCR): Shares cycle in a bullish 'flag' pattern

Larry Schutts — 2008-05-23T12:45:00+00:00

Filed under: Earnings reports, American Express (AXP), Marriott Intl'A' (MAR), Technical Analysis, Honeywell Intl (HON), Stocks to Buy

Perini Corporation (NYSE: PCR) is a leading construction services company offering diversified general contracting, construction management and design/build services to private clients and public agencies in the U.S. and selected overseas locations. The firm is well know for its casino and hotel projects, but is also active in the design and construction of schools, health care facilities, entertainment facilities and sports complexes. Its civil division builds and maintains highways, subways, and airports. Clients include Marriott International (NYSE: MAR), Honeywell International (NYSE: HON) and American Express (NYSE: AXP).

The company surprised the Street earlier in the month, when it reported Q1 EPS of 91 cents and revenues of $1.26 billion. Analysts had been expecting 87 cents and $1.27 billion. The COO cited strong contributions from the building and management services segments. Management also guided FY08 EPS to $3.50-$3.75 ($3.73 consensus), FY08 revenues to $5.5-$5.9 million ($5.16B consensus), FY09 EPS to $4.00-$4.20 ($3.85 consensus) and FY09 revenues to $7.3-$7.8 billion ($5.46B consensus).

The PCR share price popped on the news and has since been defining a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy", one "buy" and two "holds". The PCR P/E ratio (11.48), PEG ratio (0.92), Price to Sales ratio (0.23), Price to Book ratio (2.84), Price to Cash Flow ratio (10.42), Price to Free Cash Flow ratio (4.77), Return on Investment (25.69%) and Revenue per Employee ($1.18M) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $25.08 and $75.43. A stop-loss of $34.80 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Honeywell isn't afraid of the recession -- buy the stock?

Steven Mallas — 2008-05-20T10:22:00+00:00

Filed under: Honeywell Intl (HON), United Technologies (UTX)

According to this article at CNBC, industrial manufacturer Honeywell (NYSE: HON) doesn't see the current recession (or slowdown, if you believe recession is too harsh a term) hurting its plans all that much. Shareholders of the company should certainly rejoice at management's assertion that the company will still be able to deliver somewhere between $3.70 and $3.80 in earnings per share for 2008.

Reaffirmation is always a good thing in a market as tempestuous as this one has been. The question is, when you see a news item such as this, what actionable inference can you take from it? In other words, should you be looking at Honeywell? Investors should indeed perform some due diligence on the company, because based on the current price of the stock, Honeywell isn't overly pricey. Plus, the stock is really close to a 52-week high. I'm not the biggest fan of buying at 52-week highs, but for those who believe in trading via chart science, a stock near the top end of a range is oftentimes attractive since, in theory, a majority of the weak holders will be out of it by that point.

But being patient for a pullback is usually a virtue with any strong stock. And here's something else to consider. Competitor United Technologies (NYSE: UTX), which has a similar dividend yield to Honeywell, is further away from its 52-week high, but well off its 52-week low. Does that make UTX more attractive? Possibly. And Goodrich Corp. (NYSE: GR), while not having as high a dividend yield, is also not at a 52-week high. So while the reaffirmation bodes well for Honeywell, definitely kick the company's financial tires a bit before making any decision, and look around to similar companies that you might think are better values.

Disclosure: I don't own shares in any company mentioned here; positions can change at any time.

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Cramer on BloggingStocks: Oil's not the widespread tax it used to be

Jim Cramer — 2008-05-19T09:22:00+00:00

Filed under: General Electric (GE), Exxon Mobil (XOM), Market matters, Halliburton (HAL), Schlumberger Limited (SLB), Alcoa Inc (AA), Archer-Daniels-Midland (ADM), Bank of America (BAC), Boeing Co (BA), Chesapeake Energy (CHK), Chevron Corp (CVX), duPont(E.I.)deNemours (DD), Office Depot (ODP), Deere and Co (DE), Honeywell Intl (HON), United Technologies (UTX), Eaton Corp (ETN), Anadarko Petroleum (APC), Oil, Stocks to Buy, Burlington Northern Santa Fe (BNI), Norfolk Southern Corp. (NSC), Union Pacific Corporation (UNP), Cramer on BloggingStocks, Potash Corp. of Saskatchewan (POT)

TheStreet.com's Jim Cramer says lots of companies now thrive with crude up here.

Oil's not a tax on everything -- it's a tax on the consumer. That's what I come down to when I see the charts this weekend and ponder what's happening in so much of industrial America.

Company after company that I examine -- the new techs, as I call them -- actually benefit from higher oil prices. Or they can pass them on with ease, because of the worldwide demand being so strong.

Take all of the companies involved with making a Boeing (NYSE: BA) (Cramer's Take): Boeing itself, Alcoa (NYSE: AA) (Cramer's Take), Honeywell (NYSE: HON) (Cramer's Take) and Precision Castparts (NYSE: PCP) (Cramer's Take) being good examples. Each of these is necessary because the new Dreamliner burns lots less fuel, and with fuel the biggest airline cost, it stands to reason that higher energy prices make the plane more desirable even at a higher price point.

Or how about all of the companies involved with process and flow control and efficient motors: Parker-Hannifin (NYSE: PH) (Cramer's Take), Emerson (NYSE: EMR) (Cramer's Take), Eaton (NYSE: ETN) (Cramer's Take) and Flowserve (NYSE: FLS) (Cramer's Take). Those work higher with higher energy prices. CSX (NYSE: CSX) (Cramer's Take), Burlington Northern (NYSE: BNI) (Cramer's Take), Kansas City Southern (NYSE: KSU) (Cramer's Take), Union Pacific (NYSE: UNP) (Cramer's Take) and Norfolk Southern (NYSE: NSC) (Cramer's Take) are smaller energy users than trucks, and they ship plenty of ethanol and fertilizer.

Of course everything farming: Deere (NYSE: DE) (Cramer's Take), Monsanto (NYSE: MON) (Cramer's Take), Du Pont (NYSE: DD) (Cramer's Take), AGCO (NYSE: AG) (Cramer's Take), Potash (NYSE: POT) (Cramer's Take), Agrium (NYSE: AGU) (Cramer's Take), Mosaic (NYSE: MOS) (Cramer's Take) and Archer Daniels (NYSE: ADM) (Cramer's Take) (these are big companies in market cap now, powers of the S&P or companies just waiting to get into the S&P but stalled by a lack of mergers). And everything that drills, ships and transports oil and gas: Rowan (NYSE: RDC) (Cramer's Take), Parker (NYSE: PKD) (Cramer's Take), Weatherford (NYSE: WFT) (Cramer's Take), Cameron (NYSE: CAM) (Cramer's Take), Noble (NYSE: NE) (Cramer's Take), Transocean (NYSE: RIG) (Cramer's Take), FMC Tech (NYSE: FTI) (Cramer's Take), Oceaneering (NYSE: OII) (Cramer's Take) and so many others -- and of course, Halliburton (NYSE: HAL) (Cramer's Take) and Schlumberger (NYSE: SLB) (Cramer's Take).

And then there is oil and gas itself, ever a larger portion of the S&P. Look at the charts during last week's run: Apache (NYSE: APA) (Cramer's Take), Anadarko (NYSE: APC) (Cramer's Take), Nabors (NYSE: NBR) (Cramer's Take), Exxon (NYSE: XOM) (Cramer's Take), Chevron (NYSE: CVX) (Cramer's Take), Occidental (NYSE: OXY) (Cramer's Take), XTO (NYSE: XTO) (Cramer's Take), Southwestern (NYSE: SWN) (Cramer's Take), Chesapeake (NYSE: CHK) (Cramer's Take), Ultra (NYSE: UPL) (Cramer's Take): these all count.

Coal, of course, is a huge beneficiary. Infrastructure works because these companies get the benefits of the oil companies' largesse by being able to build energy-related production centers.

Even the autos can be viewed as benefitting, as the newer cars use less gas than the old ones, making them viable alternatives in multiyear paybacks. Along those lines, energy-efficient appliances get a boost.

Then there are the myriad energy-alternative plays that are always dominating the headlines but haven't yet made it into the S&P or are very small parts of the S&P: the wind plays -- Trinity (NYSE: TRN) (Cramer's Take), Woodward Governor (NASDAQ: WGOV) (Cramer's Take), Owens Corning (NYSE: OC) (Cramer's Take) (also insulation); solar -- First Solar (NASDAQ: FSLR) (Cramer's Take) ($24 billion market cap), SunPower (NASDAQ: SPWR) (Cramer's Take), and all the Chinese plays that people love so much.

Pipelines galore: Kinder Morgan (NYSE: KMP) (Cramer's Take), Enterprise (NYSE: EPD) (Cramer's Take), Boardwalk (NYSE: BWP) (Cramer's Take), so many others.

Many companies are neutral -- financial, telco, utilities -- although some benefit from the price umbrella of higher oil costs and can pass on costs they don't have. Tech's been fairly neutral. The weaknesses we have seen in tech are related to consumer slowdown (customers such as Office Depot (NYSE: ODP) (Cramer's Take)) or financial. Media's neutral, too. Health care can't be considered a negative either when it comes to energy consumption.

Most of the conglomerates say they are energy-positive: United Tech (NYSE: UTX) (Cramer's Take) and, famously, GE (NYSE: GE) (Cramer's Take), which has said that its fortunes should improve as oil goes higher, although we haven't seen that yet.

We know there are plenty that don't. Anything that is sold in the supermarket. Anything retail. Anything that uses oil or natural gas and can't really pass it on: Minerals and mining (although global demand really helps), glass (although recycling really helps, as in the case of Owens-Illinois (NYSE: OI) (Cramer's Take)), and chemicals and the paper producers.

But those companies aren't that important anymore, even though they dominate the consciousness of the marketplace, despite the encroachment of energy as a part of the S&P 500.

In fact, if finance could turn itself around -- something that seems increasingly possible, although it has sucked up a huge amount of capital and done nothing -- you could argue that we are on the cusp of a major move as it dawns on people that energy isn't the tax it used to be.

There are plenty of 30,000-foot flaws to this. We have seen time and again that our own growth in this country is heavily consumer-related. But the industrial growth owes itself not to the U.S. consumer, but the worldwide consumer.

All of these facts can go far toward explaining how higher oil prices have not been able to block the advance of the S&P or the Dow Jones averages. In fact, if the latter were more responsive to energy -- the Chevron nod was accompanied by ne'er-do-well Bank of America (NYSE: BAC) (Cramer's Take) instead of a Deere or another oil play like an Occidental or a Schlumberger -- we would be taking out 13,000 with ease.

All of this is worth thinking about when you are gloomy, because it doesn't add up to a decline, it explains the advance.

Keep it in mind during the next downturn. It explains a lot why they've been fairly shallow.

And I don't expect anything deeper now that finance seems to have stabilized.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long XTO and Owens-Illinois.

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Barnes Group (B): Share price in bullish 'pennant'

Larry Schutts — 2008-05-07T12:18:00+00:00

Filed under: Earnings reports, General Electric (GE), Technical Analysis, Honeywell Intl (HON), United Technologies (UTX), Stocks to Buy

Barnes Group (NYSE: B) is an international aerospace and industrial components manufacturing and distribution company. The firm operates through three divisions. Barnes Aerospace is a highly specialized manufacturer of components and assemblies used in commercial, business and military jets and industrial gas turbines. Barnes Industrial is the largest manufacturer of precision springs in North America and one of the largest makers of nitrogen gas springs in the world. Barnes Distribution is a leading provider of maintenance, repair, operating and production supplies, such as fasteners, electrical components, abrasives, adhesives and tools. Customers include General Electric (NYSE: GE), Honeywell International (NYSE: HON) and United Technologies (NYSE: UTX).

The company surprised the Street last week, when it reported Q1 EPS of 60 cents and revenues of $388.6 million. Analysts had been looking for 53 cents and $381.2 million. The CEO attributed success to the firm's global reach. Management also guided FY08 EPS to $2.30-$2.39 ($2.24 consensus).

The stock popped on the news and subsequently moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with four "strong buys", one "buy" and two "holds". Analysts see a 17% average annual growth rate, through the next five years. The B P/E ratio (15.42), Price to Sales ratio (1.06), Price to Book ratio (2.18), Price to Cash Flow ratio (9.79) and EPS Growth rate (20.00%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 87% of the outstanding shares. The stock is one of the used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $20.37 and $36.89. A stop-loss of $25.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Cramer on BloggingStocks: Play this week with a steady hand

Jim Cramer — 2008-05-05T09:09:00+00:00

Filed under: General Electric (GE), Exxon Mobil (XOM), Market matters, Sprint Nextel Corp (S), Federal Natl Mtge (FNM), BP p.l.c. ADS (BP), Honeywell Intl (HON), United Technologies (UTX), Eaton Corp (ETN), Bear Stearns Cos (BSC), Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says there's some reason for caution, but no reason to get out of the market here.

There all right there. Don't you feel it? Hundreds of stocks at resistance. Hundreds have formed a nice base. The Transports and the Dow are moving in synch. The earnings period surprisingly great, with so many companies not stung by the raw costs. Three straight up weeks, with all the commodity stocks showing signs of rolling over; most at crucial "must hold" levels except for gold, which has already crashed, making the inflation case much dimmer in the eyes of the traders.

Yet, you simply can't read the papers. They are too awful. The cost to the consumers for everything from food to gasoline is humongous and going higher, according to all the food execs I had on last week. We are getting nowhere near a bottom in housing. The layoffs, while not significant in the Labor Report on Friday, sure seem endless. The two major presidential candidates from the Democratic side want to tax the oil companies into oblivion, the leaders of the last year. Exxon (NYSE: XOM) (Cramer's Take) blew the quarter. So did GE (NYSE: GE) (Cramer's Take).

Too far, too fast, based on those grim items.

To me, this is the first week since the Bear Stearns (NYSE: BSC) (Cramer's Take) bottom that I think seems aimless.

But perhaps there's a "split the difference" way to approach this week: options expiration.

I expect the bias, once again, to be upward. I have been noting that there's money coming in for some time. The talk about Deutsche Telekom (NYSE: DT) (Cramer's Take) buying ne'er-do-well Sprint (NYSE: S) (Cramer's Take) fits that picture. Strong-currency Europeans and Asians have stepped up their buying. Sovereign funds quietly taking up positions, like the odd building up of BP (NYSE: BP) (Cramer's Take) right at what looked like levels that could not be supported. I expect more of both.

But one of the days this week will be a big down day. We will hear plenty of reasons why it happened, yet it will probably really be caused by option balancing.

I would wait for that day to buy if you aren't in. If you are in, I think you just sit tight. I think the rally's real, and I believe if the cost inputs simply level off -- and I think they will -- we will be in fine shape to move forward. Food and energy can't go up much more from here without severe supply interruptions, as we seem to have reached some sort of price equilibrium. The possibility of the ethanol mandate going away could be huge.

That's why it seems wrong to cash out. Too much upside. Too many stocks selling at low multiples that are doing well. Too many Honeywells (NYSE: HON) (Cramer's Take) and Eatons (NYSE: ETN) (Cramer's Take) and Parker Hannifins (NYSE: PH) (Cramer's Take) and United Technologies (NYSE: UTX) (Cramer's Take). Too many 4%-5% yielders still. You get a break in oil, or even a stabilization, and you get the end of the mandate of ethanol and every transport and food company soars. Plus, other than Fannie Mae (NYSE: FNM) (Cramer's Take) and Freddie Mac (NYSE: FRE) (Cramer's Take), the financials have all refinanced and seem ready to run. Remember, all commodity costs have to do is stay here and that can trigger a further rally.

Lot to like; too little to give up on.

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Parker Hannifin Corporation (PH): Share price defines bullish 'cup & handle'

Larry Schutts — 2008-05-01T08:53:00+00:00

Filed under: Earnings reports, Technical Analysis, Honeywell Intl (HON), Eaton Corp (ETN), Stocks to Buy

Parker Hannifin Corporation (NYSE: PH) manufactures fluid power systems, electromechanical controls and related components. Its Industrial unit offers hydraulic systems, filters, sealing devices, pneumatic components and electromechanical instrumentation to OEMs in various production and processing industries. The firm's Aerospace segment provides hydraulic, fuel, and pneumatic systems used in commercial and military airframe and engine programs. The Climate and Industrial Controls division makes refrigeration and air conditioning systems. The company employs more than 57,000 people in 43 countries around the world. Eaton Corporation (NYSE: ETN) and Honeywell International (NYSE: HON) are competitors.

Investors were pleased last week, when the firm reported fiscal Q3 EPS of $1.49 and revenues of $3.18 billion. Analysts had been looking for $1.34 and $3 billion. Management pointed to growth in many key markets, including aerospace. The firm also guided FY08 EPS to $5.40-$5.60, versus consensus of $5.28.

The announcement popped PH shares out of an early April "cup" into the late April "handle" of a Cup & Handle formation. The price is now showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle".

Brokers recommend the shares with three "strong buys", two "buys" and eleven "holds". Analysts see a 19% average annual growth rate, through the next five years. The PH P/E ratio (15.12), Price to Sales ratio (1.15), Price to Book ratio (2.62), Price to Cash Flow ratio (11.05), Price to Free Cash Flow ratio (15.06), EPS Growth rate (29.57%), Return on Assets (9.98%) and Return on Investment (13.12%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 84% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $58.10 and $86.56. A stop-loss of $69.20 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Cramer on BloggingStocks: Pools of capital keep retelling the credit story

Jim Cramer — 2008-04-24T09:45:00+00:00

Filed under: Market matters, Schlumberger Limited (SLB), Citigroup Inc. (C), Boeing Co (BA), Merrill Lynch (MER), Federal Natl Mtge (FNM), Lockheed Martin (LMT), Honeywell Intl (HON), Lehman Br Holdings (LEH), Stocks to Buy, Housing, Cramer on BloggingStocks, MBIA Inc (MBI)

TheStreet.com's Jim Cramer says we know how it'll play out. Besides, there's money to be made elsewhere.

Nobody's dissing the credit crisis. We all see it. We know when it is back. We know that the write-offs for the banks and brokers and Fannie (NYSE: FNM) (Cramer's Take) and Freddie (NYSE: FRE) (Cramer's Take) will be gigantic if and when the Gang of Four (Ambac (NYSE: ABK) (Cramer's Take), MGIC (NYSE: MTG) (Cramer's Take), MBIA (NYSE: MBI) (Cramer's Take), PMI (NYSE: PMI) (Cramer's Take)) finally chokes to death. But we also know that Boeing (NYSE: BA) (Cramer's Take) and Honeywell (NYSE: HON) (Cramer's Take) and Schlumberger (NYSE: SLB) (Cramer's Take) and Lockheed (NYSE: LMT) (Cramer's Take) and all of the other stocks that are on the move, not to mention anything oil and gas, just aren't that levered to the crisis. I know that is heresy for many of you. How could the crisis not bring everything to its knees?

Because these companies are basically foreign companies. They are just not that important to the credit crumble.

More important, we have all figured out the game. There are endless pools of really stupid/long-term capital that keeps coming in and bailing these clowns out. They either will never admit defeat -- some of the mutual fund holders, like "legendary" Bill Miller -- or they view everything as a bargain -- Corsair -- or they are easily talked into sovereign funds that think they have discovered Citigroup (NYSE: C) (Cramer's Take) at $5, a la 1990. Who knows? Maybe they have. Merrill Lynch (NYSE: MER) (Cramer's Take)? I'll buy 10 million shares!! Lehman (NYSE: LEH) (Cramer's Take)? $2 billion in preferred, please. And on and on.

What matters to me is that there seems to be no end to the amount of capital that will go to this sector. No end. Value!

Next thing you will hear there will be someone coming in, a Wilbur Ross, or some other grave dancer, and he will pants the current shareholders and "make out like a bandit" with the monolines. Blah blah blah.

It's not that the crisis is irrelevant. It's that there's so much money around that it has gotten to the "who cares?" status unless you hold common stock of the targets.

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Closing bell: Climbing the wall of worry in earnings season

Jon Ogg — 2008-04-18T16:18:00+00:00

Filed under: Google (GOOG), Caterpillar (CAT), Citigroup Inc. (C), Advanced Micro Dev (AMD), Honeywell Intl (HON)

The mood this week has changed sharply from the post-GE disappointment, despite weak economics still hitting the screens every morning in economic numbers. In fact, the week went much better than it was looking on Monday, and everyone remembered the old chant, "markets climb up a wall of worry." Even oil heading above the $116 per barrel isn't killing things. Here are unofficial closing levels:

DJIA 12,852.21 (+231.72; +1.84%)
S&P 500 1,390.55 (+24.99; +1.83%)
NASDAQ 2,402.97 (+61.14; +2.61%)
10YR-TBOND 3.743% (+0.014)

We put together a list of stocks over at 247WallSt.com with household names that we think can double by the end of the recession.

Advanced Micro Devices Inc. (NYSE: AMD) down after reporting a net loss of $358 million on $1.5 billion in revenues. Losses were narrowed from the same quarter last year. The company also released plans to cut additional cost. If insiders want that stock to go up, they need to fire Hector Ruiz. Shares were down 1.6% at $6.09 going into the close.

E TRADE Financial Corporation (NASDAQ: ETFC) shares jumped despite a quarterly loss of $91.2 million. Although disappointing, investors seemed pleased about the 60,000 increase in customers. Shares were up almost 10% at $3.98 going into the close.

Caterpillar Inc. (NYSE: CAT) shares are up after the company posted earnings that beat expectations. The results showed EPS of $1.45, well above Thomson Financial expectation of $1.22 EPS. Shares were up 8% at $85.02 going into the close.

Citigroup Inc. (NYSE: C) rose today after it posted first-quarter results that were better than many expected. For the second quarter in the row, the bank showed a loss, this time $5.11 billion off of revenues of $13.22 billion. Write-downs totaled $16 billion. The company also announced it will cut 9,000 jobs. Shares were up 4.5% at $25.13 going into the close.

Google, Inc. (NASDAQ: GOOG) soared after first quarter earnings beat street estimates. Showing an EPS of $4.12 on $5.19 in revenues, net income of $1.31 billion grew by 30% compared first quarter 2007. Shares closed up 20% at $539.83.

Honeywell International Inc. (NYSE: HON) announced first quarter results, with a 22% growth in profit coming heavily from international markets. Net income of $643 and $0.85 EPS beat street estimates and pushed the stock up. Shares closed at 6% at $61.05.

Jon Ogg is a producer and editor of the Special Situation newsletter and the 10 Stocks Under $10 weekly newsletter at 247WallSt.com.

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Most innovative companies, airline secrets & billion dollar sport of ultimate fighting - Today in Money 4/18

Allan Halprin — 2008-04-18T09:44:00+00:00

Filed under: Google (GOOG), Apple Inc (AAPL), eBay (EBAY), General Electric (GE), Pfizer (PFE), Wal-Mart (WMT), Toyota Motor Corp. (TM), Walt Disney (DIS), Caterpillar (CAT), Netflix, Inc. (NFLX), Citigroup Inc. (C), Goldman Sachs Group (GS), Xerox Corp (XRX), Southwest Airlines (LUV), BP p.l.c. ADS (BP), Marriott Intl'A' (MAR), Contl Airlines'B' (CAL), Honeywell Intl (HON)

In the News:

· Citigroup Posts Worst-Than-Expected $5.1 Billion Loss; 9000 Job Cuts Coming

· Google Beats Q1 Estimates; Stock Soars

· Xerox Swings to Loss

· Caterpillar Earnings Rise 14%; Top Estimates

· Honeywell Earnings Impress Wall Street; Raises Guidance

· Sallie Mae Unsure About Future Loans

· Continental & Southwest Airlines to Raise Fares

· E*Trade Swings to Loss; Cutting Back as Recession Looms

· eBay Struggles to Rebuild Traffic

· Linen's 'N Things Shopping for a Buyer

· Thomson Reuters Takes on Uncertain World

· Netflix Lives!

50 Most Innovative Companies
The companies that make up BusinessWeek's annual ranking nurture cultures that value creative people in good times and bad. The top company by industry include Apple, Pfizer, Goldman Sachs, Disney, Toyota, GE, Marriott, Wal-Mart and BP.
The World's Most Innovative Companies

Airline Gate-to-Gate Times Slowest in 20 Years
Air travel is slower than at any time in the past two decades, a USA TODAY analysis shows. Here are the top 10 major routes where flight times have increased, gate to gate.
http://money.aol.com/news/articles/_a/air-trips-slowest-in-past-20-years/20080418074309990001 Air trips slowest in past 20 years - USATODAY.com

10 Things Your Airline Won't Tell You
Your hard-earned air miles are worth less all the time. We love to sock you with hidden fees. Customer service isn't always our top priority. Go inside the airline industry and see their secrets.
10 Things Your Airline Won't Tell You (10 Things: Personal Finance) at SmartMoney.com

Are There Too Many Women Doctors?
As an MD shortage looms, female physicians and their flexible hours are taking some of the blame.
Are There Too Many Women Doctors?

Squeezed Lenders Abandon Students
The exodus of lenders means students must be vigilant about securing loans. Here's how.
Squeezed Lenders Abandon Students (Consumer Action: Personal Finance) at SmartMoney.com

The Brothers Behind Ultimate Fighting
Two casino tycoons turned a violent fight club into a billion-dollar sports empire.
The Brothers Behind Ultimate Fighting - Forbes.com
Also: Ultimate Fighting Superstars

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Before the bell: Futures still up despite weak Citigroup earnings

Sarah Burns — 2008-04-18T07:40:00+00:00

Filed under: Before the bell, Earnings reports, Google (GOOG), Caterpillar (CAT), Citigroup Inc. (C), Honeywell Intl (HON)

U.S. futures are up this morning despite news of another bad quarter from Citigroup (NYSE: C). The financial services giant this morning reported a Q1 loss of $5 billion, or $1.02 per share, following $12 billion in write-downs on mortgage-related securities and leveraged buyout loans. Analysts had expected better figures but the market apparently took heart that they weren't worse.

There were some good earnings reports for the bulls this morning. Dow 30 component Caterpillar Inc. (NYSE: CAT) earned $1.45 per share on revenues of $11.8 billion in the first quarter, beating estimates of $1.33, and projected strong full-year revenues and earnings. The company did foresee continuing weakness in the U.S. economy but remains somewhat upbeat on prospects for the global economy.

Honeywell International Inc (NYSE: HON) said its Q1 earnings rose more than 22% on strong demand from the aviation and commercial construction sectors. Honeywell earned $643 million, or 85 cents per diluted share, compared with $526 million, or 66 cents a share, a year ago. Xerox is also due to report before the markets open.

Google (NASDAQ: GOOG) reported a 30% increase in Q1 profit after the close Thursday, beating expectations by more than 30 cents a share. Its revenues were up 42%, to $5.19 billion, over the same period last year. Google's shares soared 17% in an after-hours "relief rally."

Thursday markets were flat on a day of mixed earnings reports, with Merrill Lynch disappointing, but IBM beating estimates. The Dow Jones industrial average rose 1.22 points or 0.01%; the S&P 500 was up 0.85 point or 0.06%; and the Nasdaq Composite lost 8.28 points or 0.35%.

No economic data are expected today.

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Option Update: Honeywell near term volatility elevated into EPS

Paul Foster — 2008-04-11T10:50:00+00:00

Filed under: Options, Honeywell Intl (HON)

Honeywell (NYSE: HON) is expected to report Q1 EPS on April 18. Deutsche Bank says: "Reasonable valuation despite strong earnings growth potential." HON April option implied volatility is at 37, May is at 31; above its 26-week average of 29 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 21.97; 10-day moving average is 23.26

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Before the bell: AMR, BA, MOT, HON, YHOO, PG, DIS

Melly Alazraki — 2008-04-09T08:28:00+00:00

Filed under: Before the bell, Management, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Motorola (MOT), Walt Disney (DIS), Boeing Co (BA), Procter and Gamble (PG), AMR Corp (AMR), Honeywell Intl (HON)

Before the bell: Stocks futures decline on UPS warning, financial and economic concerns

AMR Corp (NYSE: AMR)'s American Airlines cancelled 500 flights on Tuesday and is expected to cancel more flights Wednesday as the FAA inspects its MD-80 planes and if the airlines complies with federal rules about wiring on about 300 of its planes. MAR shares were down 2.3% in after-hours trading.

Boeing (NYSE: BA) may announce a 14- to 18-month delay of its already-delayed 787 Dreamliner according to the The Times of London, the AP reported. Seattle Post-Intelligencer puts the delay at 14 months from the original goal of first flight by the end of June, and first delivery in early 2009. Either way, the delays are much more than the 6-9 months analysts and buyers said they expected. BA shares were down 2.4% in very early premarket trading.

Motorola (NYSE: MOT) is keeping busy. After announcing it is splitting its handset and telecom equipment arms, and after settling a proxy battle with activist investor Carl Icahn, the cell phone maker on Wednesday said former AT&T Chairman and CEO David Dorman will be the non-executive chairman. He'll succeed Ed Zander, who as planned is retiring after the shareholder meeting on May 5.

Walt Disney Co. (NYSE: DIS) CEO said Tuesday while announcing Disney's upcoming animated movies through 2012 that its Pixar animation studio will commit to 3-D by releasing all of its movies in the format beginning with Up next year.

Procter & Gamble Co. (NYSE: PG) announced Tuesday that it is increasing its quarterly dividend from 35 cents to 40 cents per share, which represents a 14% increase compared to the prior quarterly dividend. The dividend is payable May 15 to holders of record April 18.

Yahoo Inc. (NASDAQ: YHOO)'s second-largest holder, Legg Mason, is prepared to back the search giant effort to remain independent if Microsoft Corp. (NASDAQ: MSFT) takes it offer off the table.
Yahoo! also announced Wednesday it will buy privately held marketing software company IndexTools in its effort to expand its offered services to mid-size business with analytic software that allows them to monitor Web traffic and consumer choices.
Still with Yahoo!, the web portal will begin showing homemade videos on Flickr, its online photo-sharing site, no doubt trying to capitalize of Google Inc. (NASDAQ: GOOG)'s YouTube success and perhaps lure some of the traffic to its sites. Once again, though, Yahoo! is playing catch-up to Google.

Honeywell (NYSE: HON) shares are up 1.4% in premarket trading as the industrial manufacturer won a $23 billion jet engine contract from Embraer (NYSE: ERJ). HON will supply its HTF7000 series of turbofan propulsion engines to the Brazilian company.

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Honeywell gets a safe deal

Tom Taulli — 2008-04-07T12:12:00+00:00

Filed under: Private equity, Honeywell Intl (HON)

With a market cap of $43 billion and lots of cash in the bank, Honeywell International Inc. (NYSE: HON) is primed for some dealmaking, especially as valuations have fallen.

Well, the company recently struck a $1.2 billion buyout for Norcross Safety, which is a leader in the personal protection equipment industry. According to the company, the market is over $20 billion worldwide and is highly fragmented. What's more, the industry is relatively stable (primarily because of compliance as well as homeland security concerns).

Now, as a part of Honewell, Norcross should be positioned nicely to further consolidate things.

Interestingly enough, the majority owner of Norcross is Odyssey Investment Partners, which is a private equity firm. No doubt, it's a nice win for it - in light of the tough M&A environment. According to the Wall Street Journal [a paid publication], it looks like the firm scored a six-times-return on its investment.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

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The day $2 billion walked out the door, extreme savers' winning secrets & deals in electronics - Today in Money 4/4

Allan Halprin — 2008-04-04T09:15:00+00:00

Filed under: Microsoft (MSFT), Apple Inc (AAPL), Motorola (MOT), JPMorgan Chase (JPM), Money and Finance Today, Honeywell Intl (HON), Bear Stearns Cos (BSC)

In the News:

· U.S. Lost 80,000 Jobs in March, Biggest Loss in 5 Years; Unemployment Rises to 5.1%

· Apple Surpasses Wal-Mart as Number One Music Seller

· Northwest Airlines Raises Fares, Freezes Hiring

· Bernanke Defends Bear Stearns Bailout

· Honeywell Buys Norcross Safety Products for $1.2B

· Late Payments on Consumer Loans Hit 16-Year High

· Microsoft Keeps XP on Market, Is That Bad News for Vista?

· Struggling Motorola Cuts 2,600 Jobs

· Miller to Launch Craft-Style Lite Beer

Extreme Savers Share Their Secrets
These frugal fanatics take saving a few dollars to the next level. See the tricks they use to slash their spending and see how the save on retail, groceries, cars, commuting, housing, travel, phone services and more.
Extreme savers share their secrets - Bankrate.com

Electronics Retailers Offering Range of Deals
Hoping to offset slowing sales, electronics retailers are offering great deals. Here are some of the latest electronics deals.
Electronics Retailers Offering Range of Deals (Best Buy, Costco) at SmartMoney.com

Need More Time to File Your Taxes? Just Ask
The tax-filing clock is ticking. You can't turn it back, but there is a way to change your filing deadline to months instead of days and hours. Just ask the IRS for more time to file your return. You will have plenty of company. The agency says it expects to receive 10.3 million extension requests this year.
Getting more time to file your tax return -Bankrate.com

Online Buyers Crack the Code on Deals
At any time, up to 75% of online retailers offer a place to log in a discount code before checkout. Several sites -- Currentcodes.com, RetailMeNot.com, CouponCabin.com and BradsDeals.com, among them -- help make sure you seldom have to pay without adding a discount first, if one exists. Here are five sites that highlight coupon and promotion codes, with some of the top deals on Thursday. Here are some tips from the experts.
Online buyers crack the code on deals - USATODAY.com

The Day $2 Billion Walked Out the Door
Inside a bank panic: Customers deserting, investors fleeing, billions in losses. Survivors of a run at E*Trade tell how they fought to hang on.
Inside a panic at E*Trade - FORTUNE

Top Towns for Empty Nesters
The kids have all finally moved out of the house, but what now? For a growing number of empty nesters it is move. These places offer strong healthcare, leisure activities, jobs and more.
Top Towns For Empty Nesters - Forbes.com

It's Looking Grim for New Grads
Recession-time MBAs face tough choices and more modest earnings over their lifetimes.
It's Looking Grim for New Grads

Rolling Stones Steal a Page From Hannah Montana
A recession can even put the brakes on the spending habits of rock royalty. The Stones' rockumentary, which hits theaters nationwide today, is a collaboration with filmmaker Martin Scorsese and captures two concerts in New York at the end of the Rolling Stones' Bigger Bang tour. Shine a Light comes in the wake of Hannah Montana & Miley Cyrus: Best of Both Worlds Concert, which grossed $31 million its first week on only 683 screens, making it the largest per-screen average of any nationwide release in film history.
Satisfaction... for Seven Bucks - Portfolio.com

The Accounting Ultimate Fighter
Accountant by day, ultimate fighter by night, when 38-year old Chuck Liddell doesn't have the numbers to crunch, he looks for skulls.
Crunching Numbers and Opponents - Portfolio.com

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