Economy Blog

Quote of the day comes from a WSJ story about Microsoft’s ongoing tussle for Yahoo — most of which is apparently happening inside Microsoft CEO Steve Ballmer’s head: People familiar with the situation said that [delays] have been at least partly attributable to Mr Ballmer, following a regular pattern for the 28-year Microsoft veteran, who has led the company for eight years. The former salesman has a history of shifting his opinion suddenly and sometimes being easily swayed by new data or a new perspective that refutes his existing opinion, these people said. …
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The following figure is from a new Mckinsey report on profligate power usage by data centers:
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Just a weekend reminder for you all.

Hat Tip Fred for bringing it front and center in my brain again.
I have been sick but still cold calling and receiving cold calls all week in an effort to get myself back in the mix.
My best investments never come to me, I have always had to call, roll up my sleeves and ask. No one called me on Rent.com, GolfNow or Lifelock. On the other hand…I have a ton of paper (worthless) to sell on EBay on all the hot deals I get CALLED with the priviledge of investing.
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The White House has had a tough time with the souring economic data in recent months. President Bush and his advisers have steadfastly avoided using the “R” word to describe the slowdown, even though many Wall Street economists have already made the recession pronouncement. Today, Mr. Bush and his spokesman used April’s payroll decline — which w…
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All week long Cramer has been highlighting great American manufacturers with new innovative technologies. Cramer recommended Dover (DOV) as his sixth selection for great American manufacturing companies. Dover has business segments in industries like electronics, mobile equipment, engineered products and fluid solutions. The company produces garbage compactors, tank trailers, ATMs, refrigeration systems, parts for construction vehicles, fuel nozzles, hearing aid s and more. Dover also has some exciting technologies like a trash compactor fueled by solar power and biodegradable fluids and refrigeration units for grocery stores that are energy efficient. The company also produces fuel efficient pumping systems and coding systems that benefit logistics. Cramer said the company is growing overseas with 25% of growth coming from Asia and 45% of total revenues from abroad. Dover trades at 12.6 times earnings and has a 15% growth rate. Cramer thinks this new world technology company should trade at a higher valuation.
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All week long Cramer has been highlighting great American manufacturers with new innovative technologies. Cramer recommended Dover (DOV) as his sixth selection for great American manufacturing companies. Dover has business segments in industries like electronics, mobile equipment, engineered products and fluid solutions. The company produces garbage compactors, tank trailers, ATMs, refrigeration systems, parts for construction vehicles, fuel nozzles, hearing aid s and more.
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Cramer welcomed Ken Powell, president and CEO General Mills (GIS), to the show to discuss his company’s prospects. Powell explained that General Mills has been able to grow its profits through increased productivity. He said cereal is a staple of the American diet and the company will do everything to keep it affordable even while raw costs are rising and food prices soaring. Powell said GIS continues to increase distribution and expand through more shelf space. Powell weighed in on the ethanol debate saying, “There’s no doubt this is the wrong time for ethanol. There’s never been a greater demand for food as food.” Cramer advised investors to buy this stock on any dip. …
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All week long Cramer has been highlighting great American manufacturers with new innovative technologies. Cramer recommended Dover (DOV) as his sixth selection for great American manufacturing companies.
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Cramer welcomed Ken Powell, president and CEO General Mills (GIS), to the show to discuss his company’s prospects. Powell said
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Cramer said for next week investors should get ahead of the big money managers and play the sector rotation game. Cramer thinks the big players are going to rotate back into agriculture stocks and oil and gas stocks. He advised investors to look at Cleveland Cliffs (CLF), Anadarko (APC), Fannie Mae (FNM), Cisco (CSCO) and Transocean (RIG). All of these companies are set to report earnings next week and Cramer said investors should follow the reports for clues to which way the market will trade. Cramer explained that the recent rotation has been out of industrials and commodites and into tech, financials and retail. Next week we will know if that rotation was right - Cramer doesn’t believe it is.
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Word On The StreetWORD VIDEOBuffett Buying IdeasThe traders gave out their suggestions for stocks they think Warren Buffett should buy. Finerman said Phillip Morris (PM). Adami picked 3M (MMM). Macke said Buffett should buy Microsoft (MSFT). Seymour recommended Grupo Televisa (TV).Cisco Earnings TradeCisco Systems (CSCO) is set to report earnings on Tuesday after the market close. What is the trade? Adami advised investors to take some profits into earnings. Seymour said he is a buyer based on the international exposure for CSCO. Macke explained that CSCO is best of breed and he would get long….
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Movie TradeLehman Brothers media analyst Anthony DiClemente joined the traders to discuss his take on summer movie season. DiClemente explained that this season there’s a lack of sequels - 7 vs. 15 last year - and box office grosses could fall 10% year-over-year. He said Viacom (VIA) could be a big winner, because the company is set to release the Indiana Jones sequel. However, investors should note that Viacom’s deal is only a distribution agreement. Macke said if box office sales are down investors should look at Disney (DIS) and Hasbro (HAS). Q…
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Fast FireAdami said buy Genetech (DNA), due to its cheap valuation. He was dead wrong and the stock fell after the company’s Rixutan failed in a study as a treatment for lupus. Adami said the stock is cheap, but buy at your own risk. Recently, Finerman told investors to short Capital One (COF). Shares of the credit card issuer traded higher since her call. Finerman …
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Trader RadarShares of Visa (V) were among the most actively traded stocks on the NYSE Friday.POPS&DROPSPOPS- Comcast traded up 12%. WM Wrigley (WWY) popped 21%. Dolby Laboratories (DLB) jumped 13%. Jones Apparel (JNY) popped 16%. Children’s Place (PLCE) advanced 14%. Giant Interactive (GA) rose 27%.DROPS- SunMicrosystems (JAVA) plunged 19%. Deere (DE) fell 5%. Altria (MO) lost 6%.Final TradeMacke picked Microsoft (MSFT). Adami selected UPS (UPS). Finerman recommended Philips Morris International (PM). Seymour said buy Unibanco (UBB).
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Criticism that the Federal Reserve is fueling a bubble in commodities has been circulating among some investors and bloggers for months. Now, it?s reached Capitol Hill.
In a letter dated Thursday, Republican Congressional leaders asked the Democratic leadership to hold hearings on, among other things, the role of Fed rate cuts in driving down the dollar and pushing up commodity prices.
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BullishIllinois Tool Works (ITW), Applied Materials (AMAT), DaVita (DVA) and Kinder Morgan (KMP).BearishBear Stearns (BSC), Taser International (TASR), Conceptus (CPTS), Synchronoss Technologies (SNCR), St. Joe (JOE), Tenet Healthcare (THC) and Garmin (GRMN).
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Final TradeMacke picked Microsoft (MSFT). Adami selected UPS (UPS). Finerman recommended Philips Morris International (PM). Seymour said buy Unibanco (UBB).
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Yahoo shares bounced on the news that deal talks with Microsoft were heating up. (YHOO, 3 mos.)

As trading closed Friday, talks between M…
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Cramer told investors to forget about trying to game a potential Microsoft (MSFT) for Yahoo! (YHOO) deal. He thinks Microsoft CEO Steve Ballmer will raise the bid a bit, but he still wouldn’t buy Yahoo. Cramer said Mircosoft is cheap, but he would rather be long the “new tech” American manufacturing names like Parker Hannifin (PH) and Eaton (EAT). He also had bullish comments for agricultural name Agrium (AGU). “Agrium’s a great story. People have continually thought, ‘Well, fertilizer, well isn’t that manure?’ This stuff is the heavy-duty stuff that really does produce a big yield.” Cramer said he now likes Potash (POT) since the stock has pulled back. Lastly, Cramer said the entire ag sector will drop in a heartbeat if any of the presidential hopefuls or the U.S. government backs off ethanol.
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One of my all time favorites Jazz musicians is T…
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