Mixed Monday Open

Morning News of Note:

• MSFT AAPL: Will Microsoft Take on the iPod? THE "SOFT" WILL NO DOUBT REMAIN the most important part of Microsoft. In fact, the company announced Friday that it is buying the software and Internet assets of UMT, a small New York firm, for an undisclosed price. But such purchases won't stop Microsoft from also pursuing a hard line. There is chatter on Wall Street that Microsoft (ticker: (MSFT) may be readying a new hardware initiative by producing its own digital media player to garner a piece of the market that Apple's (AAPL) iPod has defined. (Full Story) BARRONS
• PFE: Pfizer-PFE prevails in challenges to Lipitor patents in the United States. Pfizer said Friday that a federal court in Delaware has upheld the exclusivity of two U.S. patents covering atorvastatin, the active ingredient in Lipitor, prohibiting generic competition until June 2011. "Today marks a major victory for medical innovators and the patients who depend on them for important new therapies," said Pfizer Chairman and Chief Executive Officer Hank McKinnell.
• SIRI: SIRIUS ISSUES Addressing a mass of misfits gathered outside his K-ROCK studio Friday, Howard Stern said of his impending transition to Sirius Satellite Radio, "I am leaving terrestrial FM radio so we can do this show the way it was meant to be done." Which begs the question: Will anyone hear it? (Full Story) NY Post
• BRCM: Broadcom-BRCM may buyout Sandburst Corp. for $120M-LightReading.com. Broadcom (BRCM) is interested in bolstering its presence in the Ethernet network processing market. Sanburst may be a nice fit considering Broadcom has already invested in the company according to sources. For more complete coverage check out this link: http://www.lightreading.com/document.asp?doc_id=85847
• Mad Money Summary: Cramer has changed his mind on the homebuilders and believes now is the time to buy Pulte Homes (PHM), as the Federal Reserve is almost finished raising interest rates. Cramer said that shares of Pulte are cheap and have exposure to all of the price levels of homebuilding. Cramer had a quick comment on St. Joe saying the company has the "easiest comparisons of all." Cramer believes that Albertson's (ABS) is going to go private and he believes the new owners will shut down the worst performing stores, which he sees as a positive for Safeway (SWY). Cramer sees a 2 in 3 chance that the customers from the shut down Albertson stores will become Safeway customers. Cramer said he had a hard time recommending Costco (COST) and believes that Wal-Mart (WMT) is a better play at this point in the cycle. Cramer had a quick comment on Whole Foods Market (WFMI), he believes that it is the best run company next to Starbucks (SBUX) and deserves to trade at a premium. Cramer is calling the bottom in shares of Shanda Interactive Entertainment (SNDA) as shares are down to about $15 from $45.50. Cramer said that while Shanda is not a value stock or a "great company" he believes that now is the time to buy. Commenting on Eli Lilly (LLY), Cramer said he did not like shares as much at $56 than when it was at $50. Cramer said he was not a fan of RealNetworks (RNWK) and believes that Sirius Satellite Radio (SIRI) still has "one more move back up" but he would sell shares after Christmas. Responding to a question, Cramer said that Alcan (AL) and Alcoa (AA) are "awful companies" and he does not believe it is time for a "'mon back."

Market Comments: The market opened mixed this morning, with the S&P up slightly and the Nazz down a bit. PFE won a patent suit, and that has the stock as well as the drug group trading higher.

Retail shares are finally getting a small bounce. Some of these stocks have really pulled back in the last couple of weeks. Energy stocks are also mostly higher, while tech is a mixed bag.

GOOG announced on Friday that it would take a stake in AOL, and this is helping both stocks.

long MSFT