Posts for Ticker ‘HON’

Backward & Forward, Cramer In 2007 To 2008

2007 was one volatile year and for now it appears that will be the norm for at least the start of 2008.  Everyone’s favorite market pundit or least liked pundit is obviously Jim Cramer.  If you love Cramer or can’t stand him it really doesn’t matter.  He signed a new multi-year deal with CNBC recently.  Here are some of his major calls this year that will still be referred to in 2008:

Here were Cramer’s TOP 9 STOCKS FOR 2007, with a call broken down for each one.  Borat would say HI FIVE on some and NOT SO NICE on others, as would be expected.  Cramer’s 14,582 year-end DJIA target…..Friday’s close was 13,365.87……although we did hit 14,279.96 on OCT11, 2007.  Cramer also gave a batch of price targets on most of theDJIA components:

Cramer’s Stock Picks FOR 5-YEARS OUT:

SOME LISTS: His list of recession proof stocks compared to ours.  We are updating our
Defensive Stocks For The First Half Of 2008" currently.  Cramer gave a huge list of companies he expects to benefit from the alternative energy traders (SGR, FWLT, BWA, OMG, FSLR, FTEK, WFR, TTEK, ZOLT, BP, SPWR, CY, CPST, ITRI)… Jim Cramer pondered which US companies China would want to acquire, about 3 months before sovereign funds started buying into US companies.  Cramer’s mortgage winners and losers…… Here were his MAJOR BULL MARKET STOCK PICKS(MHS, CVS, AGN, CELG, GENZ, CEPH, RIG, HAL, EMR, CAT, CMI, UTX, KO,PEP, CL, GS, SKS, VFC, UNP, CSX, BA), some of which are DJIAcomponents.  Cramer produced a "MUST OWN" list of stocks, many of whichare up significantly and some are down (WHR, BDK, ATI, BGC, HON, ASD, JCI, MDR, FWLT, CAT, TEX, DE, QCOM)

Cramer spent lots of time on International stocks that most US investors might not cover on their own.  He made a big call on Mercadolibre (MELI) (also BIDU, GOOG) with some emphasis on buying immediately, right before it made a huge run up.  Cramer’s Hidden Video Game Investment Perfect World (PWRD, ATVI, ERTS, VIA) was one he said could run more than 50% for 2008.  Cramer made 5 TOP CHINESE PICKS (CEO, CHL, SSW, FMCN, BIDU, GMR).  We’ll see in 2008 if any of his Canadian OIL TRUSTS get acquired in 2008 (BTE, CNE, PGH, PVX, PWE, AAV, GDI).  Cramer also went over his top picks from Europe for American investors (TOT, SI, ABB, PHG, BF)

ON TECHNOLOGY:  Cramer’s NEW HORSEMEN OF TECH…. will the list change in 2008???  Did Cramer Say $1,000.00 on Google, Or Is It $600.00? That was in May 2007.  Cramer Gave Monster Price targets to Baidu.com (BIDU, GOOG).. will these targets change in 2008? Cramer was very positive on all the GPS stocks,although we’d expect that Cramer will change his tune in 2008 now thatthe holiday madness is behind us (GRMN, UA, CROX, NVT, TRMB, SIRF).

Would it be fair not to include the Barron’s attack on Cramer from summer for those of you that criticize his every word?

ON WARREN BUFFETT…. Cramer noted that BROOKFIELD ASSET MANAGEMENT in Canada may be the next Berkshire Hathaway (NYSE:BRK/A) NYSE: BAM). Cramer reviewed 10 Warren Buffett stocks for analysis and then reviewed 10 More Warren Buffett stocks:

Will his buyout of ALCOA (AA) prediction come true in 2008??? Cramer gave a list of stocks that had bought back so much stock that they might be taking themselves private.

Join our free email distribution list for other Cramer calls or for updates we send out regarding IPO’s, spin-offs, restructuring, reorganization, activist investors and more.

Happy New Years from the 247WallSt.com team!

Jon C. Ogg
December 31, 2007

Key Earnings Reactions (October 19, 2007)

(AMD) Advanced Micro Devices -$0.71 EPS vs -$0.62 est.
(BSX) Boston Scientific $0.20 EPS vs $0.07 guidance.
(CAT) Caterpillar $1.40 EPS vs $1.43 est.; narrows 2007 guidance.
(FITB) Fifth Third $0.71 EPS vs $0.68 est.
(GOOG) Google traded up 1% after beating earnings; added 2,100 jobs.
(HOG) Harley Davidson $1.07 EPS vs $1.05 est.; cautious near-term.
(HON) Honeywell $0.81 EPS vs $0.81 est.
(ISRG) Intuitive Surgical traded up almost 5% after beating earnings and raising guidance.
(MMM) 3M $1.29 EPS vs. $1.28 est.; guidance looks raised but that is on gains.
(PMCS) PMC-Sierra slightly beat estimates but CEO retiring; stock traded up marginally.
(SLB) Schlumberger $1.09 EPS vs $1.07 est.
(SNDK) SanDisk indicating down after beating earnings and seeing slight drop in pricing.
(WB) Wachovia $1.05 EPS vs $1.03 est.; was $0.90 after items.
(XLNX) Xilinx $0.30 EPS vs $0.29 est.
(XRX) Xerox $0.27 EPS vs. $0.26 est.

Jon C. Ogg
October 19, 2007

Boeing Design Partners Getting Whacked (SPR, BEAV, HON, COL, LMIA, TIE, PCP)

Shares of Boeing (NYSE:BA) are getting hit hard after the jet-maker and aerospace giant finally came clean about the delay of the Dreamliners.  The DJIA component is down 3% on the day and it has pulled the price-weighted DJIA down a bit more with it.  We have covered this wondering about the first flight delays having a cascading effect, but if you look at Boeing’s aerospace partners on the Dreamliner you will see that they are all being hit (and some even harder than Boeing):

  • Spirit Aerosystems (NYSE:SPR) is the ex-Boeing unit, which makes fuselage parts, shares down 4.8% to $36.50.
  • BE Aerospace (NASDAQ:BEAV) has cabin and seating contracts with Boeing, shares down almost 4% at $43.30.
  • Honeywell (NYSE:HON) has the cockpit award, shares down 2% at $60.00.
  • Rockwell Collins (NYSE:COL) has information management pacts with Boeing, shares down 3.3% at $73.35.
  • LMI Aerospace (NASDAQ:LMIA) has Boeing as principal customer for structural components, assemblies, and kits, shares down 3.5% at $27.65.
  • Titanium Metals (NYSE:TIE) has long-term Boeing titanium/metals supply pacts; shares down 1.7% at $33.29.
  • Precision Castparts (NYSE:PCP) manufactures aerospace structural castings, aerospace airfoil castings, industrial gas turbine castings, shares down 3.4% at $146.75.

There are other stocks that will be affected and impacted by this, but now the game is to figure out which of these companies will have to preannounce that the Dreamliner delay will hurt their earnings for one to two quarters out.

Jon C. Ogg
October 10, 2007

Jon Ogg produces the Special Situation Investing Newsletter and does not own securities in the companies he covers.

Cramer’s Weak Dollar Play 2 (TXT, HON)

Another pick that Cramer gave on CNBC’s MAD MONEY tonight as the "escape from the dollar and the U.S. consumer" and corporate refugee series is:

  • Textron (NYSE:TXT) now at 40% of international sales coming from overseas and its exposure is still growing.

When Cramer read about Honeywell (NYSE:HON) he learned about a major aircraft spending coming more and more, and the Honeywell sales will help Textron as international demand for business jets will be more than in the US.  This will yield a fleet expansion or replacement phase of 38% and they want the Cessna planes from Textron.  The new military business budget also comes out tomorrow.  Textron could be a takeover target based upon its forward business that a foreign company could acquire.

Last night Cramer said Best Buy (NYSE:BBY) was the winner taking the weak dollar into its own hands.

Jon C. Ogg
September 25, 2007

Cramer Endorses Honeywell (HON, BA)

On today’s STOP TRADING segment on CNBC, Jim Cramer was at least happier today than last week since the market stabilized.  Cramer said he’d buy Honeywell (NYSE:HON) as one that belongs in the same league as Boeing (NYSE:BA).  He likes that they blew out numbers and are buying more stock than anyone else.  Cramer said he would prefer to see more dividend hikes as long-term signals of conviction.

Honeywell is one that is within 4% of its 52-week highs and does trade at premium multiples to other DJIA components.  On top of its ability or desire to repurchase shares, it still also has many opportunities to prune down its portfolio and focus on core operations.  We’ll leave that up to the company as to what their strategy is for now at least, particularly as the conglomerate has so many areas it operates in. 

Jon C. Ogg
July 30, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Cramer’s Earnings Winner Predictions (July 13, 2007)

Stock Tickers: KO, INTC, UTX, FCX, HON, JCI, CAT, SLB, MER, C, JPM, WFC, BAC

On tonight’s MAD MONEY on CNBC, Jim Cramer wanted to talk about all the earnings coming out next week that will benefit from the strong foreign currencies. Cramer said he thinks Coca-Cola (NYSE:KO) is going to beat earnings based on the weak dollar.  He also thinks that Intel (NASDAQ:INTC) can go to $27.00 on earnings. 

Three more Cramer likes headed into earnings are United Technology (NYSE:UTX), Freeport McMoRan (NYSE:FCX), and Honeywell Int’l (NYSE:HON).  Johnson Controls (NYSE:JCI) could rally $10.00 off the $122.00 base. Caterpillar (NYSE:CAT) is one he thinks is that if you bet against you do it at your own risk because it’s headed up.  Schlumberger (NYSE:SLB) is a $90.00 stock poised to go to $120.00 and he doesn’t even care about the quarter because they are in such a strong spot. 

Cramer also thinks that any bank or brokerage stock will buyback stock and/or raise dividends to try to signal that nothing is wrong in the companies: Merrill Lynch (NYSE:MER), Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), J.P.Morgan (NYSE:JPM), Bank of America (NYSE:BAC).

We’ll see.  It will be nice to see how these react after earnings if they go up after each report.  based on the recent miracle that the few stocks that manage to report or warn about bad earnings either still rally or barely trade off has to be somewhat comforting for investors.

Jon C. Ogg
July 13, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Top Earnings Next Week Part 2 (July 19-20, 2007)

THURSDAY
Advanced Micro Devices (NYSDAQ:AMD)
Ameritrade (NASDAQ:AMTD)
Bank of America (NYSE:BAC)
Bank of New York (NYSE:BK)
Cemex (NYSE:CX/ADR)
Continental Airlines (NYSE:CAL)
Cypress Semi (NYSE:CY)
Dow Jones (NYSE:DJ)
Fifth Third Bancorp (NASDAQ:FITB)
First Data (NYSE:FDC)
Gilead Sciences (NASDAQ:GILD)
Google (NASDAQ:GOOG)
Harley-Davidson (NYSE:HOG)
Honeywelll (NYSE:HON)
Illinois Tool Works (NYSE:ITW)
International Game Technology (NYSE:IGT)
Microsoft (NASDAQ:MSFT)
Motorola Inc. (NYSE:MOT)
NASDAQ Stock market (NASDAQ:NDAQ)
OptionsXpress (NASDAQ:OXPS)
PMC-Sierra (NASDAQ:PMCS)
Roche
Safeway (NYSE:SWY)
SanDisk (NASDAQ:SNDK)
SAP AG (NYSE:SAP)
Scholastic (NASDAQ:SCHL)
Seagate Tech (NYSE:STX)
SunPower Corp. (NASDAQ:SPWR)
SunTrust (NYSE:STI)
Telefonos De Mexico (NYSE:TMX)
Union Pacific (NYSE:UNP)
UnitedHealth Group (NYSE:UNH)
Wyeth (NYSE:WYE)
Xilinx, Inc. (NASDAQ:XLNX)

FRIDAY
Boston Scientific (NYSE:BSX)
Caterpillar (NYSE:CAT)
Citigroup (NYSE:C)
Ericsson (NASDAQ:ERIC)
Schlumberger (NYSE:SLB)
Wachovia Corp (NYSE:WB)

Jon C. Ogg
July 13, 2007

PLEASE NOTE: THSE DATES MAY CHANGE WITHOUT NOTICE OR MAY HAVE ALREADY CHANGED

DJIA Components Short Interest Mixed (June 2007)

Stock Tickers: AA, AIG, AXP, BA, C, CAT, DD, DIS, GE, GM, HD, HON, HPQ, IBK, JNJ, JPM, KO, MCD, MMM, MRK, MO, MRK, PFE, PG, T, UTX, VZ, WMT, XOM

As you will see, the June short interest in the 28 of the 30 NYSE listed DJIA components was a very mixed bag.  Sure there were big gains in some, but 16 of the 28 saw a gain in short interest.  That is essentially considered as non-directional for any analysis of a trend.  We saw chips and banking short interest rise, but nothing solid as an overall trend linking the DJIA components.

STOCK               Ticker    JUNE    MAY         CHANGE
Alcoa                      AA      14.6M    16.8M         -12%    
AIG                         AIG     25.09M  26.2M         -3.9%   
Amer. Express     AXP     23.5M    21.6M        +8.9%    
Boeing                   BA       8.3M        8.5M         -2.3%    
Citigroup                 C       31.2M     29.4M        +5.9%    
Caterpillar             CAT     9.35M    11.7M         -20%   
DuPont                    DD    18.77M    18.1M       +3.6%   
Disney                     DIS     50.7M    47.7M        +6.4% 
General Elec.         GE      59.9M    53.5M        +12%    
General Motors     GM      57.6M    52.2M        +10%   
Home Depot          HD      41.1M    45.6M         -9.8%   
Honeywell              HON    11.1M    13.9M        -20%
Hewlett-Packard   HPQ    27.46M  27.3M        +0.4% 
IBM                           IBM     48.6M     16.6M       +192%
J & J                         JNJ     15.37M    16.1M       -4.8%   
JPMorgan Chase  JPM     31.6M    28.2M         +12%   
Coca-Cola                KO     20.19M    27.8M        -27% 
McDonalds             MCD     23.9M     24.8M        -3.7%   
3M                            MMM     9.95M     9.5M          +4.5%    
Altria                          MO     47.2M     53.2M         -11%    
Merck                      MRK     22.8M     22.5M        +1.2%    
Pfizer                        PFE     54.4M    52.1M         +4.5%   
P & G                        PG     19.35M    14.2M        +36%   
AT&T                           T       44.1M      39.6M       +11.2% 
United Tech            UTX     7.87M      9.0M         -12.9%   
Verizon                       VZ     47.1M     43.3M        +8.6%   
Wal-Mart                WMT     37.1M     38.1M         -2.5% 
Exxon Mobil           XOM     49.6M      46.6M        +6.5%   

Jon C. Ogg
June 22, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Cramer Outlines Long-Term Growth in Aerospace

On today’s Wall Street Confidential video on TheStreet.com, Jim Cramer says that aerospace stocks are great buying opportunities on down market days like today and yesterday.  Aerospace is tied into a long-term cycle, not really part of the stock market.  Honeywell (HON) is even better than Boeing (BA). BEA Areospace (BEAV) is great on the interiors for planes.  Other great aerospace plays he gave were Brush Engineered Materials (BW), Allegheny Tech (ATI), Precision Cast Parts (PCP), and AAR Corp. (AIR).  He also gave some defense names, but the main point was on the long-term growth trends. 

For some conjecture, let’s hope that idf things ever slow down too much that waves of order cancellations don’t come into play like they have in past down-cycles.  If that happens, Cramer will probably remember that these aren’t permanent growth engines.  To prove a point, BEAV traded well under $5.00 at the lows during the last down-cycle in the sector.

Jon C. Ogg
June 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Cramer’s 3rd Batch of DJIA Component Price Targets

Stock Tickers: MMM, GM, HPQ, HON, HD, INTC, AMD, SHLD

Cramer came out tonight with his next batch of targets on more individual DJIA targets, and he was much less robust with the middle-alphabet DJIA components.  He still thinks there is a 1,000 point upside in the DJIA from here, but he was only bullish on Hewlett-Packard (HPQ) and Honeywell (HON) tonight.

3M (MMM-NYSE) is one that Cramer is one that Cramer noted quietly as biding time.

General Motors (GM) is one that could have been at $40.00 but that has passed and it is merely marking time now.

Hewlett-Packard (HPQ-NYSE) is one about to take off with buybacks and dividends to go higher and he underestimated its price target and it could maybe reach $50.00.

Home Depot (HD) could have done better if the Fed helped but now Cramer thinks he got it wrong. He thinks it can go up but he’d rather you own Sears (SHLD); He’d Sell Home Depot (HD) for Sears (SHLD).

Honeywell (HON) is one that Cramer underestimated with a $52.00 target but it’s now $56.00 and he thinks it could trade up to $63.00.  But at that level it is attwice its growth rate.

Intel (INTC) is one tha can only have a big move if AMD (AMD) folds up its tent.  When tech recovers he thinks that Intel could go up maybe another 10% to $25.00 and that isn’t enough upside to get excited about.

Cramer’s second batch of DJIA components was a little more bullish than tonight, but the first list of DJIA component targets from Monday would have made you think Cramer was going "all in" with only DJIA components because he was so positive.

Jon C. Ogg
May 23, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the com0panies he covers.

DJIA Components Huge Rise in Short Selling (MAY-07)

We reviewed various short selling trends and noticed that most sectors were mixed to up as the April to May reached record levels.  But reviewing the 28 Dow Jones Industrial Average components that trade on the NYSE showed an unbelievable number.  24 out of 28 saw an increase in short selling.  You’ll see that the four that had less short selling in no way come close to helping out the rest.  As the DJIA continued marching on up and up to new highs day after day, that translates to pain all around for the shorts.  Here is the DJIA summary with the gains in short interest to May over April: 

STOCK               Ticker     MAY       APRIL     CHANGE
Alcoa                      AA      16.8M      15.3M     9.30%
AIG                         AIG     26.2M     16.9M     54.80%
Amer. Express     AXP     21.6M     15.4M     40.30%
Boeing                     BA     8.5M         6.0M     41.0%
Citigroup                 C       29.4M     32.4M     -9.10%
Caterpillar             CAT     11.7M     10.4M     11.76%
DuPont                    DD     18.1M     14.6M     23.90%
Disney                     DIS     47.7M     45.6M     2.40%
General Elec.         GE     53.5M     47.3M     12.90%
General Motors     GM     52.2M     49.6M     10.20%
Home Depot          HD     45.6M     37.5M     21.70%
Honeywell              HON     13.9M     6.2M     122%
Hewlett-Packard   HPQ     27.3M     27.2M     0.17%
IBM                           IBM     16.6M     19.2M     -13.30%
J & J                         JNJ     16.1M     14.4M     11.70%
JPMorgan Chase  JPM     28.2M     27.4M     2.70%
Coca-Cola                KO     27.8M     17.6M     58%
McDonalds            MCD     24.8M     16.3M     52%
3M                             MMM     9.5M     5.4M       76%
Altria                          MO     53.2M     23.8M     122.80%
Merck                      MRK     22.5M     18.6M     20.60%
Pfizer                        PFE     52.1M     50.2M     3.60%
P & G                         PG     14.2M     18.2M     -22%
AT&T                           T       39.6M     37.9M     4.40%
United Tech              UTX     9.0M     5.7M     58%
Verizon                       VZ     43.3M     33.5M     29.40%
Wal-Mart                WMT     38.1M     33.8M     12.50%
Exxon Mobil           XOM     46.6M     49.7M     -6.40%

Jon C. Ogg
May 22, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Cramer’s Third and Fourth Transformational CEO’s (WWY, HON)

On Wednesday evening, the third installment of Cramer’s "Top Transformational CEO’s" on Mad Money on CNBC is Dave Cote of Honeywell (HON).  When he came in things were horrible.  They had asbestos issues and there was no integration between Allied Signal.  Morale was low and it didn’t know what sort of company it was, and was rocked by the GE takeover attempt.  It is now up almost 75% since he took over.   

This CEO has definitely helped Honeywell.  No one talks about them being takeover bait any longer because the stock has done well and its valuations are not as dirt cheap as in the past.  Other than that, we’ll have to trust Cramer on this.

The fourth member of Cramer’s "Transformational CEO’s List" is William Perez of Wrigley (WWY-NYSE) is led by a transformational CEO.  He had to figure out how to grow, but not so uch ruffling the chairman of the founding family.  Now they have added more products that are turning out to be wins with added aisle space.  The stock is up roughly 27% and he had run teh private SC Johnson beforehand.  Cramer thinks Wrigley is going to beat estimates from here on out.

Wrigley is a bit of an odd-bird and it was surpising that this one was really chosen.  Hardly anyone ever dicsusses the name even though it is a $15.7 Billion market cap company.  Sometimes there is more safety and more quality in companies like this.  This one is also up roughly 64% in the last year.

Previously Cramer named H-P’s (HPQ) Mark Hurd as one of the transformational CEO’s.  Before Hurd, he also backed Fred Hassan of Schering-Plough (SGP) as the first transformational CEO.

Cramer’s ‘Must Own’ List

Stock Tickers: WHR, BDK, ATI, BGC, HON, ASD, JCI, MDR, FWLT, CAT, TEX, DE, QCOM

On tonight’s MAD MONEY on CNBC Jim Cramer addressed the opportunity created by the big down day.  He thinks some stocks are so loved that hedge funds and mutual funds just keep buying.  These funds can’t buy what they want all at once any longer, so they just keep buying and then the smaller funds jump on board.  The other change is that the companies are shrinking because of buybacks.  On days like today they sold off and that’s an opportunity for you to buy.  The floats on these are small enough that they almost trade like small cap stocks.  He has a dozen of these stocks:

Whirlpool (WHR), Black & Decker (BDK), Allegheny Tech (ATI), General Cable (BGC), Honeywell (HON), American Standard (ASD), Johnson Controls (JCI), McDermott (MDR), Foster Wheeler (FWLT), Caterpillar (CAT) and Terex (TEX), and Deere (DE).

This follows up on yesterday’s feature by Cramer where he sort of touted this as a scam on Wall Street in Qualcomm (QCOM).

Jon C. Ogg
May 10, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.