Morning News of Note:
- RIMM: Research In Motion Cuts Subscriber Forecast on Delays Research In Motion Ltd., maker of the BlackBerry e-mail pager, cut its forecast for signing up new clients because of delays in introducing products. New subscriber additions will be 8 percent lower than a previous range of 680,000 to 710,000 in the third quarter, which ends Nov. 26. (Full Story) Bloomberg
- GOOG: Common Sense... Despite Its Long-Term Potential, Now Isn't the Time to Buy Google It hardly seems possible that less than a month ago I reissued my "buy" recommendation on Google, and said I'd revisit the issue when the stock hit $400. I figured that would give me plenty of time for further analysis as well as more information from additional Google earnings reports. Yet just last week Google's shares broke through the $400 barrier with none of the resistance that was evident at $300. (Full Story) WSJ
- APOL: On Capitol Hill, For-Profit Schools Raise New Debates For-profit career colleges could soon earn some extra credit: favorable federal legislation valued at billions of dollars. The reauthorization of the Higher Education Act, now before Congress, could create a windfall for the $18 billion for-profit education industry by making it easier for schools to tap into federal financial aid programs. (Full Story) WSJ
- Energy: IEA President Mandil said oil mkts may fall in 2006 on weaker global demand; sees no real reasons for price rise // SLB ancnd co liquidates 8.5m shr stake in HC
- US Economy: Fed Gov Jeffrey Lacker sid Fed not done raising rates nor ready to signal end to increases (Tuesday) // Fed Gov Bernanke sees economic growth risks from energy and housing; Fed has limited price impact on inflation; GSE portfolio cap would reduce systemic risk (Tuesday)
- Mad Money Summary: Cramer was positive on shares of Cadbury Schweppes (CSG) as he believes that the sale of its European Beverage business is a positive and that candy is growing faster than soft drinks. He says that Cadbury's valuation has been held down due to its beverage and shares are trading at only 16 times earnings versus its peers Hershey (HSY) and Wrigley (WWY), which trade at 23 and 28 times earnings respectively. Cramer does not believe that PepsiCo (PEP) will buy Cadbury's beverage business. Cramer said that he would not be surprised if an analyst downgraded shares of Coldwater Creek (CWTR) today and if they did, he would buy shares. Cramer said that his favorite women's apparel retailers are Coldwater Creek, Chico's FAS (CHS) and Talbot’s (TLB). Cramer said that he would not jump into shares of Calpine (CPN) or Charter Communications (CHTR) as they are "drowning in debt." Cramer believes that Calpine will eventually declare bankruptcy and that Charter is also a candidate. Cramer said that if investors want to play small-dollar stocks, he would recommend JDS Uniphase (JDSU) and Conexant (CNXT) as they are in good sectors and not on the road to bankruptcy. Pacific Sunwear's (PSUN) CEO Seth Johnson was on Cramer's show via telephone, Cramer said he is bullish on retail and gives Pacific Sunwear "one thumb up."
Market Comments: The market logged another solid day yesterday, on rising volume. A late day boost came after the release of the FOMC minutes, that hinted that the pace of rate hikes could slow.
Tech and financials are strongest this morning. The brokerage stocks have really been on a tear recently. Bond yields are hovering around 4.44%. And how 'bout the GOOGster? I wonder if that stock can reach $500 by year-end? Nuttier things have happened.
long CHS, GOOG