Cramer: Stop Trading!

Jim cramer tells you of 3 stocks that you should not be messing with. Get rid of them and stop the madness. These stocks are in trouble and not worth your investment dollars.

New York Times (NYT): Cramer says NYT badly needs to be downsized and is not a stock worth owning. He doesn't trust its 5% dividend and says the company reminds him of a university.
Freeport McMoRan (FCX), Lundin Mining (LMC): FCX is a China and Rest of the World play, not a domestic play, said Cramer, who has absolute faith in the CEO. He also likes LMC as a play on lead.
Chipotle Mexican Grill (CMG), Coca-Cola (KO): Cramer likes CMG but says "enough is enough" at $133. Concerning KO, Cramer said, "Going to $60 on Friday! Monster quarter... monster. Buy it right here"

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Cramer: Intel Shorts Dwarfed

Cramer speaks on the Intel inventory shortage and how the investors who did short Intel got a big surprise when they lost. He explains why the situation happened and why investors were incorrect in their play.

Those shorting Intel were taken in by a Wall Street Journal article which indicated there was double ordering of the company's chips. Shorts who believed there would be an inventory problem for Intel got a nasty surprise; "When you go into the fourth quarter with lean inventories, and these were the leanest inventories in years," said Cramer, " that means you're going to see average selling price not come down, maybe even lift a little."

Shorts were confused because, "A lot of people don't understand the nature between the media and what happens," Cramer said. "It's really remarkable how powerful the press is, particularly when it's emphasizing a negative story right at the time when a really positive story comes."

Cramer predicts a January surprise since inventory is low, revenue guidance is higher and gross margins are increasing. "This was a beautiful Intel quarter, just a beautiful one," he said and added the stock is a "screaming buy" anywhere below $27, and will go to $30. link

Business Week: S&P Picks and PAns 10/17/2007

Business Week provides analysis of picks and bearish stocks for the S&P regularly. Today's report picks some of the best and worst in what they have recently analyzed. Take a look at a few I thought were the most intereesting, but go to their page for the complete list and analysis.

S&P REITERATES STRONG BUY OPINION ON SHARES OF ALTRIA GROUP


MO; $71.04

MO reports third quarter EPS of $1.24. Before tax benefits and asset impairment charges, operating EPS of $1.21 vs. $1.07 easily beat our $1.12 estimate. Results benefited from revenue growth on market share gains in the U.S. and from acquisitions and currency benefits internationally. The company boosted its 2007 EPS guidance to $4.20-$4.25, now matching our $4.25 estimate. With the spin-off of MO's international operations likely to be announced in early 2008, we are maintaining our sum-of-the-parts analysis-derived 12-month target price of $85. /R. Mathis
S&P REITERATES BUY OPINION ON SHARES OF COCA-COLA CO.


KO; $59.17

KO reports third quarter EPS of 71 cents vs. 62 cents, topping our 67 cents estimate on stronger-than-expected international results. Revenues rose 19% on a 6% increase in sales of concentrate, positive currency impact, and acquisitions. With what we view as a more aggressive push to increase volumes in the U.S., and the introduction of new products overseas, we see these benefits continuing into 2008. We are raising our 2007 EPS estimate by 9 cents to $2.64, and our 12-month target price by $9 to $67, which at about 23 times our 2008 EPS estimate of $2.95, is a discount to peer average. /R. Mathis
S&P REITERATES STRONG BUY RECOMMENDATION ON SHARES OF TIFFANY & CO.


TIF; $54.74

At this morning's meeting in its new Wall Street store, TIF also detailed a planned smaller 2,000 square foot format for U.S., tentatively called Tiffany & Co. Collections. With first opening planned for 2008, TIF sees potential for 70 stores besides the original 100 target for 5,000 sq. ft. U.S. units. We like the new format for higher potential economic returns, but do not expect impact on near-term results. We believe TIF business continues to be strong here and internationally and are encouraged by LVMH Moet's report Monday of accelerated sales in Japan, a key TIF market. /E. Kwon, CFA All stocks

Cramer Stock Picks 10/17/2007

These are the stocks discussed today by Jim Cramer on what he thinks are bullish and bearish.

Bullish calls:

Coach (COH): 'I think the high end is safe. I gotta tell you, I think you'd be starting pretty good with Coach. ... I say pull the tigger.'
Stericycle (SRCL): 'We have been liking this, we have been behind this for a long time. ... You want to own that.'
Monsanto (MON)
Mosaic (MOS)
Agrium (AGU)
DryShips (DRYS): 'You are a champ! ... We own the bull market in container ships. ... I like that group so much I want you to let the rest run.'
Bunge (BG)
Union Pacific (UNP): 'My favorite is Union Pacific … Lots of ways to win.'
Google (GOOG)
Amazon (AMZN): 'Amazon is going to par (go to $100). My advice is stick with Amazon.'
Apple (AAPL)
Research in Motion (RIMM)
CVRD (RIO)

Bearish calls:

American Oriental Bioengineering (AOB): 'We like all of them (Monsanto, Mosaic, Agrium, Deere, Bunge) more than AOB.'
Origin Agritech (SEED)
Home Depot (HD)
Stever Madden (SHOO)
Nuance Companies (NUAN)

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Oil reaches $86 a Barrels for First Time

Crude prices reach record high on worries about declining oil inventories, OPEC says production by non-member countries may fall; Turkey-Iraq tension.

With the news the Dow is down aobut 1% so far today, and doesn't appear to see a late rally.

The price for light sweet crude settled at a record $86.13 a barrel, up $2.44 from Friday's $83.69.

Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds.

Monday's intra-day high was $86.20 a barrel, breaking Friday's peak of $84.05.

Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected in the fourth quarter, OPEC said in a report.

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