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Tuesday, November 21, 2006

November 21st - HAS CYBX BEAS

Cramer's first segment looked at toy companies for the Christmas season. He said although it seems obvious, both Hasbro Inc. (HAS) and Mattel Inc. (MAT) do outperform this time of year, but Cramer did favor HAS for its superior product lineup.

HAS
Closing Price: $27.10
After Hours High: $27.56
Percent Increase: 1.7%
After Hours Level Off Point: $27.45
Percent Increase: 1.3%
Sector: Consumer Goods
Days to Cover: 1.8
Short %: 1.54 %
% Held by Insiders: 10.03 %
% Held by Institutions: 85.10 %
50 Day Moving Average: $24.05
200 Day Moving Average: $20.70

This is looking a lot like Cramer's DIS pick on last Friday where there was very little price increase after hours and no opening bell spike to speak of the next day. Not very interesting right now, unless there is a much more considerable spike at the open, which is unlikely.

Next Cramer looked at another options backdating play and recommended Cyberonics Inc. (CYBX). Cramer's thesis is that if the company is involved in options backdating, that means they know that the company is doing well enough that options are a good way to make money. Cramer also said the firing of the CEO over this "scandal" will also help the stock.

Closing Price: $24.63
After Hours High: $26.47
Percent Increase: 7.5%
After Hours Level Off Point: $26.10
Percent Increase: 6.0%
Sector: Healthcare
Days to Cover: 17.1
Short %: 25.03 %
% Held by Insiders: 5.43 %
% Held by Institutions: 70.50 %
50 Day Moving Average: $18.22
200 Day Moving Average: $21.50

The stock was a little wild today as the CEO resignation happened today. The stock was up over $1 today, before only closing up $0.46. The after hours has taken the stock much higher, up around $1.50 after hours. Cramer is also talking takeover target here which also makes people buy after hours a bit more I think. There is also a rather large short percentage (1/4 of the shares) combined with a small average daily volume which could equal some short covering that could hold the price up. So there are a few worrisome pieces of information that make this a risky short tomorrow, but if the stock opens up anywhere near $27, which would only be 55-cents higher than the high tonight then that would be a tough gain to hold for very long considering the stock couldn't hold its large gains from today.

Finally Cramer recommended BEA Systems Inc. (BEAS) even though it has an options problem, couldn't report earnings, and has suspended its buyback program. Cramer thinks when the options probe ends the stock could rise. The company did raise its revenue guidance, but Cramer did say they couldn't report earnings....so this is of course risky if their operating costs are increasing thus reducing net income even if revenues are potentially higher as per the guidance thus making the guidance not so great??

Closing Price: $13.22
Sector: Technology
Days to Cover: 2.1
Short %: 3.50 %
% Held by Insiders: 4.67 %
% Held by Institutions: 84.60 %
50 Day Moving Average: $15.32
200 Day Moving Average: $13.15

The after hours must be closed for this one as I don't see any trading activity at all. The cheap price and fact that this is a tech play leads me to think there will be plenty of buyers tomorrow morning. It is nice seeing the after hours high to get a guage of how high people were willing to pay so I will be paying close attention to the first few trades of the pre-market to get an idea where the 9:30am opening price might be. Often times the 9:30 opening price has been higher than the after hours high.

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