Cramer's Private Equity Buyout Pick: Actuant

On tonight’s MAD MONEY on CNBC, Cramer reviewed private equity firms and his feature this week is to predict which ones could be acquired.  So much for Cramer not just speculating about buyout candidates like he used to claim before the buyout craze went into overdrive.

Last month Goldman Sachs issued the "private buyout lists" and he came up with 6 stocks he will discuss this week out of the lists that he thinks could be bought.  Cramer’s first target is Actuant (ATU-NYSE) in the manufacturing of industrial products.  Cramer likes it from the top down and is worth independent of the private equity money.  He said its been paying down debt and buying up smaller niche plays that can deliver value, and at 15-times 2007 earnings it’s cheap.

This one just ran 3% in after-hours after closing down 0.1% at $52.50; its 52-week trading range is $42.31 to $67.60.  If someone wants to buy this, they could do it without help from Cramer because its market cap is only $1.45 Billion. 

He also noted that GlobalSantaFe (GSF) and Transocean (RIG) as positive names in a call-in.

Jon C. Ogg
April 23, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.