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Cramer finishes up his European stock picks

On tonight's MAD MONEY on CNBC, Jim Cramer made his final "Investing In Europe" series pick. He went to France and named Total SA (NYSE: TOT) as a good oil stock. He likes their global footprint and well they operate even in Russia and Africa. Their refineries are also being upgraded to process the more sour crude that needs more refining, and this one is cheap compared to some of its US counterparts and is even trading more off its highs. Cramer made other stock picks from Europe all week in his series, and here they are:

Thursday, he picked BASF AG (NYSE:BF) out of Germany as a chemical predator. Wednesday, Cramer picked Siemens (NYSE:SI) as the major conglomerate play for Europe. Tuesday, Cramer went to Switzerland's infrastructure pick for the world as ABB Ltd. (NYSE:ABB). Cramer's first pick this week was Philips Electronics (NYSE:PHG) as a great value play with other stock holdings for value out of The Netherlands.

This series that Cramer did was all full of the big cap stocks in Europe that either compete with us or work with us. What this will prove in the end if these all go up is not so much that these were just incredible stock picks. It will prove we are in a major bull market and the market is willing to buy big cap stocks again. You could go make the exact same strategy picks out of Asia and probably come back with the same sort of results. Interestingly enough, in Cramer's game plan for next week he ran more of a cautious note and suggested taking at least some profits. So it doesn't seem he's just going to chase winners endlessly.

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

Cramer's chemical weapons

On tonight's MAD MONEY on CNBC, BASF (NYSE: BF) in Germany is the next stock that Cramer wants to visit as an EU play, and he also thinks this company will be making some acquisitions. He does not see this as the traditional takeover stock. This one did the $80 to $120 move already, and this is over $60 Billion in market cap and he wouldn't be shocked if it goes to $150.00. He noted it is also cheaper on P/E than Dow Chemical (NYSE: DOW) and it only gets 22% of its net from North America. BASF's earnings are also becoming more and more consistent, and that can command a P/E premium from Wall Street.

Interestingly enough, Cramer also gave us a chemical stock that could be an acquisition target. We already say Lyondell Chemical (NYSE: LYO) fall to Basell, and Cramer thinks that Nova Chemicals (NYSE: NCX) is the other chemical stock that could easily be acquired. The analyst at BB&T has picked the last two buyouts in the sector and he thinks Nova Chemical could be the next target. This one has a $3.3 Billion market cap and is atthe top of its 52-week trading range. It is far under the $50.00+ highs of early 2005.

BASF is definitely a company to watch, although Cramer is probably right that it won't be acquired. We are back to a good solid manufacturing economy and emerging markets are helping all these guys out. The company has managed to be a growth engine, and if it is true that their earnings are becoming more predictable then maybe he's right. Nova is a tough one to call, particularly since I haven't looked at it closely in some time.

Jon Ogg is a partner at 24/7 Wall St.; he does not own securities in the companies he covers.

DuPont up on Lyondell's buyout

E.I. DuPont de Nemours & Co. (NYSE: DD) opened at $52.33. So far today the stock has hit a low of $52.30 and a high of $53.22. As of 11:15, DD is trading at $52.88, up $0.88 (1.7%).

The stock has been mostly flat over the past six months, hitting a one-year high of $53.90 earlier this month. Basell Holdings (NYSE: BF) announced today that the company will purchase Lyondell Chemical (NYSE: LYO) for $12.66 billion, sending competitors' shares up in the wake of the deal. Dow Chemical (NYSE: DOW) and DuPont are each getting a nice lift following the news. Technical indicators for DD are bullish but deteriorating slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $47.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk and leverage returns. For this particular trade, we will make a 8.7% return in just 3 months as long as DD is above $47.50 at October expiration. DD would have to fall by more than 10% before we would start to lose money.

DD hasn't been below $47.50 since December and has shown support around $51 recently. This trade could be risky if the company's earnings (due out July 24) disappoint or if the cost of the company's raw materials increases greatly. However, even if these things happen, it looks like this position could be protected by the strong support the stock found between $49 and $50, plus its 200 day moving average, which is currently at $49 and rising.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: At publication time, Brent neither owns nor controls positions in DD, DOW, LYO, or BF.

Newspaper wrap-up 6-18-07: ICI rejects Akzo Nobel bid

Major Papers:
  • The Wall Street Journal reported that Ford Motor Company (NYSE: F) is looking for buyers for its Jaguar and Land Rover brands, which are valued at a combined $1.3B to $1.5B, but any sale is expected to take a month or longer.
  • Airbus is in the final stages of a deal with U.S. Airways Group Inc (NYSE: LCC), which is expected to purchase about 30 A350 jetliners worth about $7B at list price, according to the Wall Street Journal.
Other Papers:

Analyst initiations 5-24-07: BKC, NGAS, NWACQ and OSIP

MOST NOTEWORTHY: Burger King Holdings, Inc (BKC), Supertel Hospitality Inc (SPPR), OSI Pharmaceuticals, Inc (OSIP), Brown-Forman Corp (BF.B) and NGAS Resources, Inc (NGAS) were today's noteworthy initiations:
  • CIBC considers shares of Burger King Holdings (NYSE: BKC) to still be attractive and has above-consensus estimates, starting shares with an Sector Outperformer rating. The firm believes increased operating hours and breakfast value meals will drive results, while cost savings should help margins.
  • JMP Securities believes there is plenty of room for growth at Supertel Hospitality (NASDAQ: SPPR) via acquisitions, leading to strong FFO upside, initiating shares with an Outperform rating and $8 target.
  • ThinkEquity sees additional upside for Tarceva and started OSI Pharmaceuticals (NASDAQ: OSIP) with a Buy rating and $50 target.
  • AG Edwards believes Brown-Forman (NYSE: BF.B) is well-positioned to benefit from new trends in spirits and wine, starting shares with a Buy rating and $74 target.
  • RBC Capital is positive on NGAS Resources' (NASDAQ: NGAS) growth potential and high quality assets, starting shares with an Outperform rating and $11 target...
OTHER INITIATIONS:
  • CIT Group (NYSE: CIT) was started with a Market Perform rating at Keefe Bruyette.
  • Duetsche Bank initiated PPL Corp (NYSE: PPL) with a Buy rating and $51 target.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Global gains: International nanotech favorites

I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the U.S. and foreign financial experts featured at the show, and I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.

Gregg Early, editor of The Real Nanotech Investor, is finding many of his best investment opportunities among global stocks. He notes, "My two Japanese holdings have been doing well in recent weeks.

"German juggernauts BASF (NYSE:BF) and Siemens (NYSE:SI) are doing very well. BASF stock is teasing 52-week highs with orders rolling in. Its books look good. It also seems oddly shareholder friendly, which is quite a shock for most large-cap European stocks.

"But it's going to need to consolidate here before it starts looking like Cisco (NASDAQ:CSCO) in 1999. BASF is only a buy below 95.

"Siemens is having less of a good time of it -- the recent bribery charges, the BenQ mobile phone debacle, earnings disappointments. But that's not to say the company hasn't weathered these storms well.

"This is a true company built for the 21st century, along with its chemical counterpart above. It's simply a little expensive now with all this muck flying in the air. Siemens is a buy only up to 104.

Continue reading Global gains: International nanotech favorites

Top Picks 2007: BASF has an "Early" lead in nanotech

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

The BASF Group (NYSE: BF) is the top conservative idea for 2007 from Gregg Early, editor of The Real Nanotech Investor: A Small World of Big Profits. He notes, "BASF is one of the premier chemicals companies in the world and it's well positioned to be the most dominant and influential chemical company of the 21st century.

"Nanotech is to this century what chemistry was to the 20th century -- one of the most pervasive advancements in every aspect of our lives.

"Like penicillin or the transistor, it will take society decades to fully realize the implications. BASF is already well on its way to applying the lessons it has long been learning on this front.

Continue reading Top Picks 2007: BASF has an "Early" lead in nanotech

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DJIA+30.6910,464.40
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S&P 500+4.981,110.63

Last updated: November 25, 2009: 07:05 PM

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