Cramer's Top Buyout Candidates
Published: Tuesday, 23 Nov 2010 | 3:35 PM ET Text Size By: Drew Sandholm
Web Producer
After J Crew said on Tuesday it agreed to be taken private for roughly $2.86 billion, many investors wonder which retailer could be taken out next. Of the many retail names being mentioned, Cramer thinks two are "kind of interesting."
Cramer likes the idea of Urban Outfitters [URBN 38.32 0.58 (+1.54%) ] as a buyout candidate. A $12 billion company, he said its management wants to be innovative, but gets resistance from Wall Street. It also has an "aggressive buyback" plan.
Limited Brands [LTD 33.63 0.64 (+1.94%) ] could also be taken out, Cramer said. The Columbus, Ohio-based company has great fundamentals, as it operates the Victoria's Secret, Bath & Body Works and The White Barn Candle Company brands, among others. But Cramer thinks it could do better as a private company and then split up into individual companies if it were to become public again.
Five other names are being mentioned as possible takeout candidates, but Cramer isn't buying it. Those names include:
Abercrombie & Fitch [ANF 48.79 0.35 (+0.72%) ]: This would be "dangerous" because it's a teen retailer, Cramer said.
Gap [GPS 20.66 0.07 (+0.34%) ]: The San Francisco-based operator of Old Navy, Banana Republic and other brands has lots of cash, but he thinks private equity isn't interested. He also doesn't think the stock has much upside in a public or private market.
J.C. Penney [JCP 32.79 0.41 (+1.27%) ]: The Plano, Texas-based company doesn't have the balance sheet to attract a buyout, he argued.
Macy's [M 25.90 0.45 (+1.77%) ]: The "Mad Money" host thinks a takeover is "highly unlikely."
RadioShack [RSH 18.96 -0.06 (-0.32%) ]: If it hasn't happened by now, he doesn't think it's happening.作者: tfmegatron 时间: 2010-11-24 12:52
