Cramer's CNBC Mad Money Tech Picks for 7/24/07 are CSCO and TXN

To be continued ...

Cramers Tech Pick on CNBC Mad Money 7/23/07 is - SanDisk (SNDK)

Cramer likes the Technology sector and his pick today was SanDisk Corp.

Cramer liked SNDK for 3 reasons -
1. Great earnings & projections
2. Fall and Christmas season is big tech buying season
3. Flash memory are in demand in fast-growing mobile devices

I took a peek at SNDK and it didn't look very attractive right now from a fundamentals perspective. It currently trades at a high multiple. However, if the Earnings per share are going to rise, the same multiple may look cheap near term.

Higher the risk, sweeter the reward and vice-versa.

Position: The writer had no position in SNDK at the time of writing this article.

SUN is cheaper than Hess, BP and XOM, but is it ready to move? I have two better names.

Stock: Sunoco Inc.
Symbol: SUN
Price COB 7/23/07: $75.53
Sector: Oil & Gas

Jim Cramer recommended SUN on 7/12/07 on CNBC’s Mad Money show as a part of the 80 to 120 group stocks. On 7/12/07, SUN closed at $83.69. Today, it is at $75.53. The cause of this fall can be attributed to the latest downgrades by analysts. Do I agree with their downgrades? What would I do? Well, to answer those questions, lets do some homework.

Fundamental Analysis: SUN trades at a multiple of 8.85 compared to HES and BP, which trade at multiples of 13.30 and 11.54, respectively. The average multiple for Oil & Gas Refining & Marketing industry is 13.60.

Even though fundamentals based on P/E ration look good, Technical Analysis shows some bearish signals right now.

It is not a clear winner since Jim recommended it, so I’d say jump on ships that are moving up faster. Or perhaps, wait for it to trend upwards again. Again, know the risks of investing and ask your financial advisor before making any trade decisions.

Further research on SUN yielded two other names. On Yahoo message board, I read a rumor that SUN is going to make a bid for TSO. TSO has a P/E of 8.74, cheaper than SUN. Also, I noticed that VLO has a P/E of 7.88. Perhaps, TSO and VLO are better plays than SUN. Time will tell!

Position: The writer had no position in SUN at the time of writing this article

Homework on APA yields a better name APC

Stock: Apache Corp.
Symbol: APA
Price COB 7/12/07: $84.89
Sector: Energy

Fundamental Analysis: APA trades at a multiple of 11.88 compared to BP and XOM, which trade at multiples of 11.59 and 13.02, respectively. The average multiple for independent oil and gas industry is 17.05.

So far, it looks good. If this stock traded at the multiple at which Exxon Mobile trades, it would be at $93.02. If it traded at the industry average, it could reach $121.82.

However, this research points to a better name in this industry namely APC. Anadarko Petroleum Corp. (APC) trades at a multiple of 5.61 and is more apples to apples comparison to Apache Corp. If APC traded at the same multiple as APA, it could be up from $51.96 to $109.86. The fundamentals using EPS and multiple look better. Why don’t you like APC Jim?

CNBC Mad Money w/ Jim Cramer (07/12/07)

Jim Cramer is my Guru, teacher and the one who got me into the market. I'm a newbie still learning day in and day out. From now on, I'll try to use Jim's strategy to do Homework on stocks he recommends in his show. Here's my notes from his show this evening.

Jim Cramer's stock that go to 80, then to 100 and then to 120:
- Air Products & Chemicals Inc. (APD), Price COB 7/12/07: $85.91
- Apache Corp. (APA), Price COB 7/12/07: $84.89
- Energizer Holdings Inc. (ENR), Price COB 7/12/07: $106.73
- Sunoco Inc. (SUN), Price COB 7/12/07: $83.69
- Southern Copper Corp. (PCU), Price COB 7/12/07: $109.02

Carbon Composite stocks used in dreamliner
- Allegheny Technologies Inc. (ATI), Price COB 7/12/07: $114.30
- Haynes International Inc. (HAYN), Price COB 7/12/07: $95.25

A stock that 8.5 Billion Dollar man George Soros owns in his portfolio that Cramer likes is
- Gen-Probe Inc. (GPRO), Price COB 7/12/07: $59.98

Bullish on
- CVS
- LVLT
- EMC
- Walmart
- Cisco
- ACAD
- OMTR
-TOPT
- AMD
- DVR
- HERO
- PCU

Bearish on
- Target
- XMSR
- DEO
- KKR
- BX
- Apollo

Other comments
- Oil is one of Cramer's favorite Bull Market

Thanks to CNBC and Jim Cramer for hosting such an informative show.

Congratulations fellow longs! Today is our day to celebrate. DOW at record high close of 13,861.73

I will do homework on some of these stocks and present them next.

I like Starbux coffee. I love SBUX as a stock

Company: Starbucks Corp.
Symbol: SBUX
Closing Price (COB Jul 5, 2007): $26.34

Starbucks may not be as steller a growth story as it once was, due to rising dairy costs, efforts to reduce carbon emission, etc. But, I see that its trading near its 52 week low.

Some people want returns tomorrow, but if you are in for the long haul, SBUX is a good stock to look at, IMO.

FYI - Bear Sterns recently lowered SBUX price target from $47 to $35. I disagree with the move.

Position: The writer had no position in SBUX at the time of writing this article.

Take on JNJ

Company: Johnson and Johnson (JNJ)
Symbol: JNJ
Price (Close of Jul 3, 2007): 61.95

According to Yahoo! Finance, JNJ has a PE ratio of 17.66, compared to industry average PE of 23.46. Company is well run and is a great long-term play in my mind. Guess, who else is loading up on it? Warren Buffett? Maybe ... do your own homework.

I would buy some for my kids when i have kids.

Position: The writer had no position in JNJ at the time of writing this article.

iRobot's got future!!!

Symbol: IRBT
Closing Price (Close of business Jun 28, 2007) : $20.00

I had last blogged about iRobot in article iRobot Romba - Man I like it Clean. At the time, IRBT was trading a little upwards of $18. Today it hit 20 as there were some good partnerships for potential new products.

I bless IRBT right here right now!!!

As Jim Cramer says, do not buy all your positions all at once.

Position: The writer had no position in IRBT at the time of writing this article.

Aaple (AAPL) - Is it done going up yet?

Fellow readers,

On Jan 4 2007, Apple shares closed at $85.66. It was Cramer's #2 pick of 2007 and I backed Cramer in the article Apple Computers (AAPL) - White is the New PC.

Today, AAPL shares closed at $125.09 - Booyah! Jimmy - you were correct!!!

The million dollar question is - Is AAPL done going up? No one can answer that for sure, but i'll give you my take. More people are buying AAPL laptops; they are not just cool looking, but they are competitively priced too. The new iPhone that is expected to come out June 29th has created a lot a buzz. Today, AAPL announced that the iPhone has a battery life of 8 hours.

A train moving with this momentum is hard to slow down, let go pushing it backwards. I think AAPL will see 130's to 140's soon and I'm still bullish.

Position: The writer had no position in AAPL at the time of writing this article.

XKEM - The Hidden Gem (XKEM.OB)

Symbol: XKEM.OB
Closing Price (06/18/2007): $0.0202

In my opinion, XKEM is a play on NICOSAN, a drug that can treat sickle cell.

According to Wikipedia.com,

"Sickle-cell disease is a group of genetic disorders caused by sickle hemoglobin (Hgb S or Hb S). In many forms of the disease, the red blood cells change shape, usually looking much like that of a banana, upon deoxygenation because of polymerization of the abnormal sickle haemoglobin. This process damages the red blood cell membrane, and can cause the cells to become stuck in blood vessels. This deprives the downstream tissues of oxygen and causes ischemia and infarction, which may cause organ damage, such as stroke. The disease is chronic and lifelong."

According to my homework, there are about 12 million patients with Sickle Cell Disease in the world, out of which 4 million are in Nigeria, and 80 thousand in the US. XKEM is building plants in Nigeria and construction progress is demonstrated on their website.

In my opinion, XKEM is a long term play and comes with a huge risk. Only the adventurous find hidden gems! Please do your own homework before making your trading decisions.

Position: The writer had no position in XKEM at the time of writing this article.

Stamping win on Garmin (GRMN)

Symbol: GRMN
Closing Price (06/15/07): $69.77

I loved Garmin Ltd. on Jan 4, 2007 and I'm glad I loved it then. The stock for GRMN closed at $55.06 on Jan 4 and it closed at $69.77 on Jun 15.

Read Garmin (GRMN) - Take me to the $$$

Position: The writer had no position in the above mentioned stock at the time of writing this article.

Dendreon (DNDN) - Is it worth the risk?

Symbol: DNDN
Closing Price (06/15/07): $7.63

According to Yahoo Finance Business Summary,
"Dendreon Corporation, a biotechnology company, engages in the discovery, development, and commercialization of therapeutics that harness the immune system to fight cancer ."

On May 9 2007, FDA requested additional clinical data and held off on approving PROVENGE, an active cellular immunotherapy for the treatment of asymptomatic, metastatic, androgen-independent prostate cancer. As a result, shares of DNDN, which closed on May 8 at $17.74 opened on May 9 at $7.31 and closed at $6.33.

My questions in my mind now are - Is DNDN worth the risk at this point? Will they be able to provide sufficient clinical data to FDA fast enough to start production of Provenge by 2008? Will they be able to provide the results post 2008?

Here are my opinions that I share with you.

I think DNDN is a fine company lead by good management; that is evident as management quickly converted senior subordinated notes to raise 75 million.
"Company intends to use the net proceeds of this offering to finance its activities relating to the potential commercialization of Provenge® (sipuleucel-T), expand its manufacturing facilities for the commercial production of PROVENGE, fund ongoing and new clinical trials for PROVENGE and its other product candidates, support research and preclinical development activities for its other potential product candidates, and for general corporate purposes, including working capital."

According to me, PROVENGE still stands a good chance of approval, but it will probably require significant result improvements. It will not be easy for the company to get all that data in 2007. However, if the company is able to provide good results and PROVENGE gets approved, we can see the stock price hovering in low 20's IMO.

Investors of DNDN are filing lawsuits against the company for misleading investors. I have yet to dig more into that. I think thats just an overreaction from angry investors.

At last, I would like to say that there is a chance that PROVENGE may not get approved. Thus, this is not a play for the faint hearted. This is a High Risk play.

Position: The writer had no position in DNDN at the time of writing this article.

SGEN at 52 Wk High & Earnings Call tomorrow at 5 pm

On Jan 8, 2007, Seattle Genetics Inc. (SGEN) and Genentech (DNA) "reached an agreement for developing and commercializing the cancer-fighting antibody SGN-40."

"Under the agreement, San Francisco-based Genentech would make an upfront payment of $60 million to Seattle Genetics with potential milestone payments that could exceed $800 million, the companies said in a press release.

Seattle Genetics also would receive escalating double-digit royalties on annual net sales of SGN-40."

According to Reuters PR from Friday, "Analysts also said Seattle Genetics had executives on a marketing trip in New York last week that appears to have helped spark investor attention."

Good luck doing homework.

Position: The writer had no position in SGEN or DNA at the time of writing this article.

Cisco Systems Earnings Play

I believe Cisco Systems (CSCO) has cheap fundamentals and should be trading upwards of $40, if it traded at an industry average multiple of 44.

Cisco is expected to report earnings on Tue, Feb 6, 2007 at 4:30 pm EST.

CSCO's quarterly revenue growth Year over Year is 24.9% and I believe they will maintain or beat this mark.

Keep an eye for the earnings announcement from Toyota Motor Corp (TM) tomorrow at 1 am EST.

Position: The writer had no position in CSCO or TM at the time of writing this article.

Did you see Wipro's 41% Net Increase Q4 06

I just read the headline. Check it out though. I think WIT will have a big day tomorrow, it already had one record breaking one today.

Position: The writer had no position in WIT at the time of writing this article.

P.S: Cramer showed WIT as a deflated icon on his CNBC Mad Money show yesterday and recommended Accenture or Infosys. Boy, was he wrong?

Cisco Systems (CSCO) - Fundamentals are Cheap

Jim Cramer blessed this stock today on CNBC's Mad Money. Its also his #2 pick for 2007.

I've learnt about stocks from Cramer so here's why I think CSCO is cheap.

CSCO currently trades at a multiple of 28.40 compared to Industry averae (for Network and Communications Devices) multiple of 44.82

If CSCO was to trade at its industry average of 44.82, based on an EPS of 0.95, PPS will be at $42.57. Today, CSCO closed at $26.98.

Lets talk about Cramer's favorite topic - Growth ... CSCO's quarterly revenue growth year over year is 24.9% - outstanding in my opinion!!!

I think CSCO goes higher!!!

Position: The writer had no position in CSCO at the time of writing this article.

Source of Numbers: Yahoo Finance

Berkshire Hathaway of the 21st Century

My prediction is that Google will be the Berkshire Hathaway of the 21st Century.

Time will tell!

Position: The writer has no position in Google or Berkshire Hathaway at the time of writing this article.

How to Invest like a Fund Manager?

As an individual investor, if you have a chunk of money, you can put it to work diligently by thinking and investing like a hedge fund manager.

Jim Cramer explained this on CNBC Mad Money this week using the example of Berkshire Hathaway and Warren Buffett's advise. He said that Buffett would invest in small Korean companies that have good balance sheets but still trading at a mere 2 or 3 multiple, if Berkshire Hathaway was a small company. But because its as big as it is, they choose only to invest in big companies. I saw an article on yahoo finance that displayed Berkshire Hathaway's top ten holdings. Also, you can look at well performing mutual funds and use their homework as your starting point (thanks to my co-worker for giving me this wonderful idea).

Jim Cramer asks his readers in his book "Real Money - Sane Investing in an Insane World", not to accept stoock tips as tips are for a waiter. But, I'm going to give you one generic one. Fidelity's contra funds top holdings may be a good starting point.

Position: The writer had no position in the stocks mentioned in this article, at the time of writing this article.

Sony makes good TV's but their stock???

Come on Cramer. I want to challenge you right here right now on your take on Sony today.

It may have stuff where sum of parts is greater than the whole, but that can be true of a lot of companies.

I say BullShiz to your call, right here right now. Sony doesn't cross the half-century mark, in my opinion.

P.S.: I like your call on Goog ... agree that it hits its 52 week high and breaks it soon.

Cramer Bullish on BlockBuster BBI

Jim Cramer on today's show spoke with BBI's CEO. BlockBuster will take NetFlix OUT BY THE HORNS, in my opinion.

I don't have any targets, but to do your homework, find out the multiple for Netflix and do the math.

I think Jim is right on this one.

In anticipation of Bush's Iraq's Policy

I am interested in stocks. Politics affects the stock market. Thus, it implies that in order to be good with the market, i have to know whats up in politics.

The word on the street is that President Bush is going to surge troops in Iraq as a part of his new strategy. We will all find out soon enough what he'll do, but lets speculate what this will do to the market.

I used to think more troops mean a bigger hit to our country's budget, more cuts on state's budgets, and thus a weaker economy and a declining stock market.

After listening to President Bush speak, I think I understand our strategy better.

But, if looked at Bush's policy by stepping in his shoes, I think he's doing the right thing. If we leave Iraq now, we are leaving people of Iraq without a leader and without support to create peace. Also, if we leave now, it will serve as a breeding ground for terrorist organizations. America will train Iraq to use latest equipment for security and defense and help their forces become self-sufficient by November. Also, good relations with Iraq help us prevent Iran from going Neuclear. Good relations also offer promising benefits in regards to oil supply in the future. Putting all that in perspective, what the US is doing is for the betterment & protection of the citizens of the world, and betterment of american economy.

Stem Cells | Democrats | Stem cells - Bu-yah ACTC

Advanced Cell Technology Inc. (ACTC.OB) is somehow my favorite stem cell compay. If you're shoppig for others, they would be STEM, ASTM and GERN.

With Democrats incharge of the house, this is a short term trade in my opinion as we've already seen Bush use his veto on this before.

Very speculative, highly risky as I'm sure you already know.

Position: The writer was a LONG ACTC at the time of writing this article. The writer had no poisition in STEM, ASTM or GERN at the time of writing this article.

3 in 1 - Asset Management, Wireless and Storage

I've found a 3 in 1 play - Alanco Technologies Inc. (ALAN)

They do:
* Wireless Asset Management through StarTrak Systems
* RFID Tracking Technology through Alanco/TSI PRISM
* Computer Data Storage through Excel/Meridian Data

I'll paste one line from Alanco's most recent press release: "Alanco Technologies Inc., which makes security monitoring systems, said Monday it expects sales for the first half of fiscal-year 2007 to more than triple from last year."

Do your own Due Diligence.

I love Jim Cramer ... Booyah TheStreet.com (TSCM)

Booyah Skiiii Daddy

I learnt about the market listening to Jim Cramer on CNBC Mad Money, reading his entries on TheStreet.com and listening to his radio show. Oh wait, how can I dare forget his book, Doh! Real Money ---- Its a Gem.

I have yet to read the book Mad Money.

Jimmy is the co-founder of TheStreet.com Inc. (TSCM). The company announced regular dividents.

My Common sense says - these guys evaluate other companies, other management - I believe you need to be a good manager yourself to evaluate others so well.

I wrote about TSCM in 2006 as I loved it back then, and love it still for the same reason. Jim Cramer alone is educating more people about the market than a lot of schools and colleges around the world. People tend to pay due respect to their teachers (imagine people calling him Mr. Cramer just like high school :)

TSCM currently trades at a mutliple of 21.45, much lower than the industry average of 37.62

Don't forget to watch Mad Money on CNBC at 6pm every day. You'll know what I mean. Jimmy Cramer is re-inventing television shows.

Position: The writer had no position in TSCM at the time of writing this article.

Well Begun is Half Done - Go Alcoa (AA)

Alcoa Inc. (AA) reported Q4 2006 earnings today reporting a fourth-quarter profit jump of 60 percent, "driven by higher metal prices and strong market demand."

I watched Mad Money today and Jimmy Cramer seems to love it.

The stock is up after hours to $29.87, up $1.35 or 4.73%

To me, this is a good indication of a positive earnings season in front of us. Lets see.

Position: The writer had no position in AA at the time of writing this article.

2007 Tech Rally 2007 Tech Rally

Really? Where? HAHAHa ... just kidding. We will all find out.

Confused about the market?

Well, no worries.

The earnings season's here. We start hearing about Q4 earnings after the bell tomorrow.

Don't open your cards, or you won't be able to bet wisely.

Put Life in Perspecive - Donate!

This entry in my blog is not about a stock. Its about taking a moment to thank God for what you have, and putting life in perspective.

All of 2006, I kept thinking about donating. It happened, but very little. This year, my goal is to help as much as possible.

If you think about tax savings when the word "donate" comes to mind, then you're thinking of donating from a businessman/businesswoman standpoint. Think again. Take a mankind view and think again please.

So, I spent all of last week trying to decide which charities I wanted to donate to. I finally picked the three I liked:

1. I have to see that the first one was an easy one to find coz I saw an ad on TV, while watching the Patriots beat the NY Jets. It is http://www.aspca.org - they take care of animals that are a victim of cruelty

2. Have you ever tried to blindfold yourself for even 10 minutes and tried to live life? Try it and you'll want to then donate to Sankara Eye Foundation. They give people in India, the gift of Vision. To donate, simply go to http://www.giftofvision.org/

3. Children today are tomorrow's future. Sure, you've heard that before. St. Jude Children's Research Hospital are "Finding Cures. Saving Children". My wife found this one and she seems to love this charity. Now, if you're a married man, you know not to say No to your wife when it comes to matters like these :) The website for this one is http://www.stjude.org/

Happy Giving! May 2007 bring you lots of happiness, health and prosperity and a lot more power to give and spread love.

NMKT.OB & IICP.OB - Speculative Play

Per Yahoo Profile listed in http://finance.yahoo.com, NewMarket Technology Inc. (NMKT.OB) operates in the Internet telephone industry. It is a product reseller and integrator for Cisco and Sun Microsystems products. The company also offers voice over IP services, including healthcare practice management software; defense industry system solutions; voice mail and messaging services; prepaid long-distance calling card services; corporate long-distance, fax, and data networking services; e-commerce communications services for businesses selling products and services over the Internet; intelligent contact management; and wireless features, long-distance, and applications. It has operations in the United States, Asia, Latin America, and eastern Europe.

Per their PR issued on Jan 5, 2007, the quote i'd like to use is "Last year, NewMarket Technology completed the public listing of its consolidated Chinese subsidiary, NewMarket China, which expects to report over $20 million in revenue for 2006 and has forecasted a 100% increase in revenue in 2007 to $40 million".

Outsourcing and Internet services have been huge in the Indian market. Just like almost every other product is manufactured in China now, I believe China could take a huge piece of BPO from Indian in the coming years. As mentioned in the title, this is a speculative play so know your appetite for speculation, before you enter the world of fluctuation.

More M&A's - Nah, More IPOs

I hear a lot of buzz that just like 2006, 2007 will also have a lot of mergers and aquisitions.

I beg to disagree.

I feel that this year, companies will spin off divisions and it will be a year for the IPOs.

Also, I hear that 2007 will be a year of pharma's and tech companies - don't we hear that every year. Haha ...

Apple Computers (AAPL) - White is the New PC

Jimmy Cramer says AAPL is his #2 Pick for 2007 as it is a growth story.

He mentioned the conference next week where Steve Jobs will reveal the roadmap.

I love apple for the looks, even though i'm not a big fan of the Mac OS. But, I don't think aapl is a growth story on laptops.

I happened to step into an Apple Store yesterday and I was shocked when I saw their low end computers. A part of the reason for this shock was that I have not been to an apple store for almost a year.

Apple was selling Bose Headphones - that was new.

All the different versions of iPods and we don't know what else is new.

I believe cramer will be right on this one. Lets see, we will find out.

Position: The writer had no position in Aapl at the time of writing this article.

Garmin (GRMN) - Take me to the $$$

Sometimes, I rely on common sense to see what people are buying. Of course, if you have studied consumer behavior, you'll know that what people buy heavily relies on how products are marketed.

If you watch TV and you've not seen Garmin ads, I'd be shocked. I personally love their ads.

Their products - Booyah, I love 'em. The Nuvo is a gem.

Thats why, rather than asking my garmin to "Take me Home", I'm asking it to "Take me to the Money".

I've found the play, but that's not enough. I have yet to do some homework on this one. And I have not forgotten about iRobot yet either.

I can't help but notice how many people parket and driving have GPS these days.

I leave you to judge how you want to make $ in the GPS market. Is it for you?

Position: The writer had no position in GRMN or IRBT at the time of writing this article. All information in this blog is my opinion only and should not be used to make trade decisions.

iRobot Romba - Man I like it Clean

I went to BJs the other day and saw the discounted prices on Romba and Scooba. On one hand, I hate when things are sold at a discount as the margins are lowered for the company. However, people like me don't buy hottest items until they are offered at discounted prices. Since thats my way of consuming products, I think there will be quite a few like me. This will help increase # of products sold, even though with lower margins.

Share price of irbt (iRobot Corp.) as of Dec 29, 2006 is $18.06

The PE is 78.86, but iRobot is a growth story in my mind.

I would like to do some more research on iRobot before I bless it. I do like what I see so far though.

Position: The writer had no position in IRBT at the time of writing this article. Information is this blog is my opinions only and should not be used to make trading decisions.

Burning CSHD wood in the fire place

As the New Year starts, I'm going to first punch myself in the eye for believing in CSHD. I mean come'on. What was I thinking? Alright, I think you can sense my frustration.

I'd like to point a few things:

First, since the SEC investigation, the CEO has been changed from Rufus Paul Harris to Mike Alexander back to Rufus Paul Harris to John L. Arlitt. I see that as a negative.

Second, the company has been quiet and not sharing what is going on. It may be a good thing, but it is very unlike CSHD.

Third, the share price is at $0.12 as of close of Dec 29, 2006. Even though the 6 additional shares for 1 is approved, I still don't see it in my account.

It seems like the company has had a lot of surprises along its plan - whats going to stop these surprises in the future.

The lack of information from the company is keeping me from making an informed decision about this one at this time. I'm keeping my shares as they are worth almost nothing and removing CSHD from the watchlist until the company gives us clear data to work with.

Position: The writer was a Long CSHD at the time of writing this article.

Happy New Year

Happy New Year!

May 2007 bring lots of love, luck, health, happiness and prosperity in your life.

One of my New Years Resolution is to learn more about the market and put my learnings on my blog so I can go back and refer to them anytime anywhere, and also offer you, the reader, a chance to learn from my mistakes or see things from my perspective.

Once again, Happy New Year!