Stock Option Trading News

BJ Services (BJS) is “On Fire”

BJ Services (BJS) has received a 9 of 10 rating from MSN’s stock rater algorithm and Jim Cramer in last Friday’s lightning round excitedly told viewers, “Holy cow is this business on fire…” Insider trading provides a positive sign as well, a company director, William White, purchased nearly $140,000 of stock on January 30th. Cramer did pull back a little on BJS saying he preferred Transocean (RIG) to BJ Services.

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Freeport-McMoRan Copper & Gold (FCX) – Covered Call

The S&P 500 index was driven higher on Tuesday on news of two international mining companies considering the purchase of the Pittsburgh-based aluminum producer, Alcoa, for over 40 billion.Rising with this tide was fellow mining company, Freeport-McMoRan Copper & Gold Inc. ( FCX). The stock price has risen over 5% this week on sustained higher volume.

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Toll Brothers (TOL) – Time to be Bearish on Homebuilders?

Previously we reported on Jim Cramer’s negative view of the homebuilding industry, “Jim Cramer Bullish on Oil Industry – Part Manufacturers Hanover Compressor (HC) and Universal Compression (UCO)”. This sentiment was reflected in the quote, “I see profit taking emanating initially from the real estate investment trusts.”

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Bullish Oil Industry – Part Manufacturers Hanover Compressor (HC) and Universal Compression (UCO)

Jim Cramer in an online interview gave broad indications about the sectors he feels are cooling down and the sectors with momentum.Overall, Cramer stated he felt the market was cooling down momentarily, “What I see is we have these periodic ends of momentum. There is way too much money running the country to allow this to happen for very long. I see profit taking emanating initially from the real estate investment trusts.”

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Is Applied Materials (AMAT) Undervalued?

Applied Materials (AMAT) is up 18.5% in the last 6 months. AMAT did $9.17 billion in sales and $1.52 billion in income in the last 12 months — about twice the industry average on both counts. The company’s profit margin is currently at 16.2%, beating the industry average by over a percentage point. The company’s debt to equity ratio is a miniscule 0.06 compared to a 0.18 industry average.

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Jim Cramer Talks up Schlumberger (SLB) in Online Video

Mad Money’s Jim Cramer, in commentary made in a thestreet.com online video, was bullish on Schlumberger (SLB). Other analysts shared his view and the outlook for the company may be rosy: In the video Cramer said, “Schlumberger probably has the best outlook portfolio.” He went on to add, “Energy prices are in a permanently higher echelon. In every case, all the low hanging fruit of natural gas and oil is gone in the world… But, we’re definitely not running out.” He explained the competing forces of the difficulties getting at the supply and the added demand of China and India will keep oil prices higher in the long term.

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Hovnanian (HOV) Gets Boost from Analysts

Hovnanian (HOV) gained 6% Thursday and around 5% on Friday after Bank of America upgraded the homebuilder to a buy rating from neutral. An increase in interested homebuyers is helping to stabilize sales at the company, Bank of America analyst Daniel Oppenheim suggested in a recent note to investors.