Best Money

Cramer’s ‘Mad Money’ Recap: Tech, Take a Walk

To see the full “Mad Money” Recap, please click here.

Here’s what Jim Cramer had to say about some of the stocks that callers offered up during the “Mad Money Lightning Round” Wednesday evening:

“General Motors (GM) is in a holding pattern. It can’t do anything until the numbers start getting better. … had they not lost Jerry York, the Tracinda guy, the stock would have gone to 40. Don’tBuyDon’tBuy.”

Hertz Global (HTZ) : “Take the money and run. … I don’t want to be there.”

IntercontinentalExchange (ICE) : “The ICE still does not melt. … I do not understand why this stock is so strong, other than because it trades oil. … Cramer likes NYSE Group (NYX) more and gave ICE a Don’tBuy. He owns NYX for his Action Alerts PLUS charitable trust.

Altria (MO) : “This is not a show about politics; it’s about making money. We’ve been making mad money in that name,” said Cramer of Altria, which he called his No. 1 value stock. He owns it for his Action Alerts PLUS charitable trust.

Public Storage (PSA) : “This is a stock that we have liked … The skies are just blue. This group’s [pseudo-commercial real estate] in bull market mode and it’s not about to stop … Two thumbs up, way up.” Cramer said the bears erroneously lumped commercial in with residental.

LoJack (LOJN) : “They missed the quarter. … Here’s my advice on LoJack. You gotta be a member of Triple A, that’s a great organization.”

Del Monte (DLM) : “That company is poorly run.”

ON Semiconductor (ONNN) : “That particular part of the tech bull market is on hold, until August.”

DivX (DIVX) : Cramer originally recommended it at 18, which he said was “a fabulous call.” But “when it got to 28, we said enough is enough.” It’s back at 21, and “I don’t want to own it even though I know it’s going to be the standard in Internet video.”

Tower Group (TWGP) : “I like Tower Group … a little expensive, sells at four times book. A growth rate equal to its multiple.”

King Pharma (KG) : “I have disliked King Pharma for as long as the stock has been going down. I don’t like the generics.”

Tata Motors (TTM) : Cramer said he recommended it so low, and it’s all the way up to 22. Because of its run, he won’t recommend it as a buy at these levels. He said it’s OK to hold, but you may want to schnitzel [sell] a bit.

Want more Cramer? Check out Jim’s rules and commandments for investing from his latest book by http://www.thestreet.com/tsc/cramerbook.

Economic Calendar: January 29-February 2

Miner Phelps Dodge (PD) reported a big jump in fourth-quarter earnings amid higher copper prices.

The company, which is in the process of being acquired by Freeport McMoRan (FCX) , earned $1.32 billion, or $6.50 a share, in the December quarter.

Excluding certain items, earnings were $4.71 a share. Analysts polled by Thomson First Call expected earnings of $4.28 a share on this basis.

Phelps Dodge posted revenue of $3.24 billion, slightly short of Wall Street’s target of $3.49 billion.

During the year-earlier period, the company earned $121.3 million, or 60 cents a share, on revenue of $2.26 billion. The year-earlier results included a one-time charge of $204.2 million, or $1.01 a share.

Phelps Dodge said results were boosted by higher copper prices, which averaged $3.19 a pound in the quarter, compared with $2.03 per pound a year earlier. The company also recorded a $156.7 million gain from mark-to-market accounting.

“As a result of actions we took during the past few years, we are in excellent condition both operationally and financially,” the company said. “We continue to benefit from strong prices for copper and molybdenum, each of which reflects solid market fundamentals.”

Shares of Phelps Dodge were trading down 52 cents to $123.75.

U.S. home sales fell in December, ending a weak year

WASHINGTON: Sales of existing U.S. homes fell in December, closing out a year in which demand for homes slumped by the largest amount in 17 years, the National Association of Realtors reported Thursday.

The report said that sales of existing homes were down 0.8 percent last month, a bigger decline than had been expected. For the year, sales fell 8.4 percent, the biggest annual decline since 1989, when existing home sales fell 14.8 percent.

The sales figure underscored the sharp contraction that is going on in the once high-flying housing market, which before last year had set sales records for five consecutive years.

Even with the sharp drop in sales last year, the median price of an existing home sold in 2006 managed to rise a slight 1.1 percent.

But that was far below the double-digit gains during the boom years. In 2005, the median home price rose 12.4 percent.

After a five-year boom, housing slowed significantly last year, which has caused ripple effects throughout the economy with rising job layoffs in construction and other housing-related industries.

But economists say they believe the low point for housing has been reached and they are forecasting a slow rebound in 2007.

Because of that optimism, analysts do not believe that the slump in housing will drag the overall economy into a recession.

The 0.8 percent drop in sales in December came after two consecutive months of improving sales, the first back-to-back sales gains since the spring of 2005.

David Lereah, chief economist for the National Association of Realtors, said that even with the December setback, he still believed that sales of existing homes had hit bottom and would start to gradually improve.

In other economics news, the number of Americans filing applications for unemployment benefits shot up last week by the largest amount in 16 months, reversing two weeks of big declines.

Back to basics for biggest Glastonbury

It promises to be the biggest ever Glastonbury, with the toughest measures yet to combat ticket touts. But organisers yesterday revealed that this year’s festival will also go back to basics with a new village green-style field celebrating the spirit of its founding father - and mother.

The Park will feature folk music, acoustic bands, poetry readings and surprise DJ sets by some of the festival’s biggest names on the exact spot where the first Eavises in Glastonbury, the aptly named Mary and Joseph, began farming in 1860.

Their descendant Emily Eavis said the area would be a “back to basics” extension to the site, offering a “calm vibe” on the western fringe of Worthy Farm that might remind veterans of the first Glastonbury 37 years ago.

While most of the lineup remains under wraps, Lily Allen and Hot Chip were the latest artists yesterday to let slip they would be playing. Other confirmed acts include the Who, Arctic Monkeys, Bjцrk, Arcade Fire and the View.

Michael Eavis has teasingly suggested “the biggest band in the world” will also perform, but Emily Eavis said that, contrary to rumour, this act was not the Red Hot Chili Peppers.

Full details of the new ticketing arrangements were also unveiled ahead of the registration process, which opens on Thursday at 8am. Customers can register online at http://www.glastonburyregistration.co.uk

Subject to licensing approval from the local council, this year’s Glastonbury will be the biggest ever, with an extra 24,500 paying customers taking the total to 137,000. Adding security, staff and performers, the festival’s population could reach 177,500.

The Guardian sponsors the festival.

Crude Oil Prices Creep Higher Despite Latest Inventory Increase

BY REUTERS

Posted 1/24/2007

U.S. crude oil futures ended higher in a late rebound as products clambered from their session lows despite a surprise rise in distillate supplies and a larger-than-expected gain in gasoline stocks.

Some traders said a test of the day’s lows failed and players, including funds, came in and the energy markets regained their footing.

On the New York Mercantile Exchange, March crude settled 33 cents higher, or 0.6%, at $55.37 a barrel, bouncing off the day’s open-outcry low of $53.70. In electronic trade earlier, it fell as low as $53.66. It posted the day’s high near the close at $55.45.

Crude futures gained for the second consecutive day, following up on a more than 4% gain on Tuesday after the U.S. announced it planned to expand the nation’s Strategic Petroleum Reserves and amid a cold snap through most of the nation.

Just last week, prices were down, to $49.90, the lowest since May 2005. But the situation changed quickly after colder winter weather hit the U.S. Northeast, the biggest regional user of heating oil.

In London, ICE March Brent crude turned higher as well, ending 33 cents higher, or 0.6%, at $55.43 a barrel.

NYMEX February heating oil gained 0.76 cent, or 0.5%, to settle at $1.5839 a gallon, after moving moving between $1.542 and $1.587.

February RBOB jumped back 1.43 cents to end at $1.4616 a gallon.

For the week ended Jan. 19, domestic distillate supplies rose 700,000 barrels to 142.6 million barrels, according to the U.S. Energy Information Administration, the statistical arm of the Department of Energy.

That went counter to forecasts in a Reuters poll of analysts for a decline of 800,000 barrels.

However, among distillate products, heating oil stocks dropped 1.5 million barrels to 58.8 million barrels. A rise in diesel fuel inventories more than compensated for that decline.

Despite the stock increase, demand for distillates rose for the week to 4.1 million barrels per day from 3.98 million bpd the week before, apparently on deliveries to distributors amid a cold snap in the U.S. Northeast.

Distillate production fell about 100,000 bpd to 3.9 million bpd, while imports rose to 436,000 bpd from 277,000 bpd the week before.

Crude stocks rose 700,000 barrels to 322.2 million barrels, below forecasts for a 1.1 million increase.

Stocks were up as refinery runs decreased 0.5 percentage point to 87.4% of capacity. Crude imports fell back 1.25 million bpd to 9.8 million bpd.