Economy Blog

Central bank in a tough bind.…
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A recent report revealed that small hedge funds shut down more often than larger funds. Not a huge surprise, really, given the gravity of the situation….
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Canada’s National Post reports that the FBI is now warning of hedge fund fraud (”FBI Warns of Hedge Fund Fraud“).  But in actuality, FBI Director Robert Meuller gave a 2,000 word speech last week in which “hedge fund” appeared only once - after a lengthy discussion corporate fraud, public corruption, insider trading, mortgage fraud and [...]…
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“Manufacturers are the new technology companies,” Jim Cramer told fans of his “Mad Money” TV show Wednesday. Cramer thinks Harsco is an American manufacturer that falls into the category of a new breed of tech companies. The company provides services and engineering products for the steel, railway and energy companies to make them more efficient and eco-friendly. Cramer explained that the company’s mining operations turn waste into a high-quality cement additive. He loves that H…
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“Manufacturers are the new technology companies,” Jim Cramer told fans of his “Mad Money” TV show Wednesday. Cramer thinks Harsco is an American manufacturer that falls into the category of a new breed of tech companies. The company provides services and engineering products for the steel, railway and energy companies to make them more efficient and eco-friendly.
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Cramer welcomed William Johnson, president and CEO of Heinz (HNZ), to the show to discuss his company’s prospects. Johnson said that Heniz is booming overseas with big demand for baby formula and frozen foods in India, Latin America, Indonesia and China. Cramer told Johnson that he is surprised that a company like Wrigley (WWY) gets a buyout offer, but Heinz, with its cheap valuation and strong brand name is passed over by Wall Street. “I think the opportunity for us is to continue to drive consistent, solid results like we’ve been doing,” Johnson said. “Eventually, people will recognize the story, especially the growth in emerging markets.” He explained that 13% of the company’s sales are now from emerging markets and they plan to grow overseas through acquisitions. Cramer said that Heniz will bring out over 200 new products this year and he feels the stock should trade near the multiple that WWY received in its takeover. “Great dividend, great buyback and unassailable brand,” Cramer said. He also likes Heinz for its 15 million share buyback program.
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Cramer welcomed Dan Batrack, chairman and CEO of Tetra Tech (TTEK) to the show to discuss the company’s solid quarter. Batrack said his company had a great quarter, with net income up 30%, revenues up 35% and a backlog up 40%. He cited strong demand for wind power for the strong results. “The wind market’s expected to grow 25% we’re seeing growth much bigger than that,” Batrack said. “The $50 million in business last year should grow to more than $100 million in 2008. Just in the past 90 days alone, Tetra Tech’s posted $170 million in orders,” Batrack explained. He said that right now there aren’t any alternatives to oil besides wind, which has no trade-offs and is ready to go now. Cramer told investors if you want a wind stock look at Otter Tail (OTTR), Trinity (TRN) and Tetra Tech.
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This likely depends on the relations with Beijing and China’s economic development.…
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Manufacturing activity is slowing in the euro zone.…
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This likely depends on the relations with Beijing and China’s economic development.…
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Cramer welcomed Dan Batrack, chairman and CEO of Tetra Tech (TTEK) to the show to discuss the company’s solid quarter. Batrack said his company had a great quarter, with net income up 30%, revenues up 35% and a backlog up 40%. He cited strong demand for wind power for the strong results.
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Word On The StreetWORD VIDEODennis Gartman - Long Commodites/Short Dollar Trade DeadStrategic investor Dennis Gartman, author of the Gartman Letter, joined the traders to discuss his take on commodites. Gartman said he thinks the commodites market is in a bubble that is about to burst. He explained that gold couldn’t make a new high and it failed - wheat stopped a month ago - and the rice market is in a panic. In terms of oil, Gartman thinks that crude is extremely expensive relative to natuarl gas and he feels it will trade back to test $100. He prefers natural gas to crude oil and he is long some natural gas trusts in Canada. Gartman said the dollar wants to get stronger and everybody is short. He thinks it will get back to $1.50 to $1.47 versus the euro. Lastly, Gartman said the Fed did exactly the right thing today….
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Putting more pressure on the central bank to tighten monetary policy.…
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Citigroup Bottom?Citigroup (C) announced it had sold $4.5 billion in common stock, 50% more than planned, to improve the money central bank’s balance sheet, after taking large writedowns from the U.S. subprime mortgage meltdown. Is it time to bottom-fish the giant bank? Finerman said investors should start building a position in Citigroup. She disclosed her hedge fund is doing just that. Macke said he likes Finerman’s call on Citi for the long-term, but he is worried about the bank diluting shares in the short-term. He advised investors to wait before buying into Citi.N…
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Korea?s CPI gained further momentum in April, rising by 4.1% y/y compared with 3.9% in the month prior. This is the fastest pace of consumer price growth in more than three years.…
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Speculation of more rate cuts in later months.…
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The first caller’s portfolio had the following stocks: Raytheon (RTN), Merck (MRK), Anheuser-Busch (BUD), Apple (AAPL) and Schlumberger (SLB). Cramer liked this portfolio for the most part, but suggested the investors sell Anheuser and buy Molson Coors (TAP). The second caller held these stocks: Apple Computer (AAPL), Google Inc. (GOOG), Pfizer (PFE), Wal-Mart (WMT) and Allied Waste (AW). Cramer told this viewer to buy Schering-Plough (SGP) over Pfizer (PFE) and said sell Google and buy an energy company like El Paso (EP). The third caller’s portfolio included: Apple (AAPL), ConocoPhillips (COP), Mastercard (MA), Foster Wheeler (FWLT) and EMC (EMC) in his portfolio. Cramer said this portfolio had two tech stocks. He said sell EMC and buy a healthcare stock.
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Lightning RoundBullishPotash (POT), Halliburton (HAL), Visa (V), Mastercard (MA), ConocoPhillips (COP) and First Solar (FSLR).BearishCapstead Mortgage (CMO), Compagnie Gnrale de Gophysique (CGV), La-Z-Boy (LZB) and MEMC Electronics (WFR).Sudden DeathCramer was bullish on Yum! Brands (YUM) and Merck (MRK) and bearish on Red Robin Gourmet Burgers (RRGB) and Delta Air Lines (DAL).
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New Apple iPhone & CheaperA report out of Fortune magazine said that AT&T plans to subsidize $200 off the cost of an iPhone for customers who sign up for a two-year service contract. That would set the price for an iPhone at $199. The article also said that the iPhone will be thinner than the original and provide GPS navigation. What is the trade? Macke said he likes Apple off this news. Najarian …
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Vehicle sales plunged in April to an annual seasonally adjusted rate of 14.4 million units. As gasoline prices escalate, consumers are shunning gas guzzling SUVs and pickup trucks, but sales of cars have also weakened. Big Three automakers experienced double-digit declines compared to a year ago.…
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